# EDGAR Filing Document

**Accession Number:** 0001958489
**File Stem:** 0001753926-23-000293
**Filing Date:** 2023-3
**Character Count:** 883350
**Document Hash:** e7d7d79723851ada3b5cd26ffcae8f7b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001753926-23-000293.hdr.sgml**: 20230320

**ACCESSION NUMBER**: 0001753926-23-000293

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 21

**FILED AS OF DATE**: 20230320

**DATE AS OF CHANGE**: 20230320

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cortigent, Inc.
- **CENTRAL INDEX KEY:** 0001958489
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-270700
- **FILM NUMBER:** 23747214

**BUSINESS ADDRESS:**
- **STREET 1:** 13170 TELFAIR AVENUE
- **CITY:** SYLMAR
- **STATE:** CA
- **ZIP:** 91342
- **BUSINESS PHONE:** 818-833-5000

**MAIL ADDRESS:**
- **STREET 1:** 13170 TELFAIR AVENUE
- **CITY:** SYLMAR
- **STATE:** CA
- **ZIP:** 91342

**As filed with the US Securities and Exchange Commission on March 20, 2023**

**Registration No. 333-** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM S-1**

**REGISTRATION STATEMENT**<br> **UNDER**

**THE SECURITIES ACT OF 1933**

**CORTIGENT, INC.**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **3845** | **88-4377248** |
| (State or other jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer |
| incorporation or organization) | Classification Code Number) | Identification No.) |

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**27200 Tourney Road, Suite 315** <br> **Valencia, California 91355**

**(818) 833-5000**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**Jonathan Adams**

**Chief Executive Officer**

**Cortigent, Inc.**

**27200 Tourney Road, Suite 315**

**Valencia, California 91355**

**(818) 833-5000**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

**Copies to:**

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| | |
|:---|:---|
| **Aaron A. Grunfeld, Esq.**<br> **Law Offices of Aaron A. Grunfeld & Associates**<br> **9454 Wilshire Boulevard, Suite 600**<br> **Beverly Hills, California 90212**<br> **(310) 788-7577** | **Mitchell S. Nussbaum, Esq.**<br> **Norwood P. Beveridge, Esq.**<br> **Lili Taheri, Esq.**<br> **Loeb & Loeb LLP**<br> **345 Park Avenue**<br> **New York, New York 10154**<br> **(212) 407-4000** |

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**Approximate date of commencement of proposed sale to the public: As soon as practicable after this registration statement becomes effective**.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box: ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment, which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until this Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.**

**The information contained in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.**

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| | | |
|:---|:---|:---|
| **PRELIMINARY PROSPECTUS** | **SUBJECT TO COMPLETION** | **DATED __, 2023** |

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&nbsp;&nbsp;&nbsp;&nbsp; **Shares** 

**Common Stock**

![](img001.jpg)

**Cortigent, Inc.**

This is a firm commitment initial public offering of shares of common stock of Cortigent, Inc. Prior to this offering, there has been no public market for our common stock. We anticipate that the initial public offering price of our shares will be between $ and $ per share.

We have applied to have our common stock listed on The Nasdaq Capital Market ("Nasdaq") under the symbol "CRGT". Upon completion of this offering, we believe that we will satisfy the listing requirements and expect that our common stock will be listed on Nasdaq. Such listing, however, is not guaranteed. If the application is not approved for listing on Nasdaq, we will not proceed with this offering. Immediately prior to the completion of this offering, Vivani Medical, Inc. will be our only beneficial owner. Immediately following the completion of this offering, Vivani will beneficially own shares of our common stock representing approximately % of the voting power of our common stock (or approximately % if the underwriters exercise their option to purchase additional shares of our common stock in full). As a result, we will be a "controlled company" within the meaning of the corporate governance standards of Nasdaq. See "Management — Controlled Company Exemption" and "Description of Securities — Common Stock."

We are an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012 and have elected to comply with certain reduced public company reporting requirements.

**INVESTING IN OUR SECURITIES INVOLVES A VERY HIGH DEGREE OF RISK. YOU SHOULD REVIEW CAREFULLY THE RISKS DESCRIBED IN "RISK FACTORS" BEGINNING ON PAGE OF THIS PROSPECTUS BEFORE INVESTING IN OUR SECURITIES.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

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| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
| Public offering price | $| $|
| Underwriting discounts and commissions <sup>(1)</sup> | $| $|
| Proceeds to us, before expenses | $| $|

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Excludes a non-accountable
 expense allowance equal to 1.0% of the initial public offering price payable to the underwriters. We refer you to "Underwriting"
 beginning on page for additional information regarding underwriters' compensation.

We have granted a 45-day option to the representative of the underwriters to purchase up to additional shares of our common stock, solely to cover over-allotments, if any.

The underwriters expect to deliver the shares to purchasers on or about , 2023.

**ThinkEquity**

The date of this prospectus is , 2023

![](img002.jpg)

1 Pioneering Neurostimulation to Restore Human Function 1 The world's first device authorized by the FDA under a Humanitarian Device Exemption to provide artificial vision. STROKE RECOVERY Developing new system to improve hand/arm movement in paralysis due to stroke • Leverages our core neurostimulation technology LEADERSHIP & IP COVERAGE Experienced leadership and R&D teams Extensive US & EU intellectual property estate ARTIFICIAL VISION Launched Argus II System in 2011 1 Next generation system (Orion) in clinical study • FDA Breakthrough device designation

![](img003.jpg)

2 Developing the Orion Artificial Vision System Designed to treat nearly all forms of profound blindness 1 • FDA Breakthrough Device designation • Planning pivotal trial based on Early Feasibility Study results 2 • Total addressable US market size is 82,000 profoundly blind Americans, estimated at ~$4 billion 3 1 B lindness due to glaucoma, diabetic retinopathy, eye trauma, optic nerve damage, retinitis pigmentosa. 2 Based on 5 of 6 subjects eligible for assessment at 36 months. One patient experienced a serious adverse event that resolved sa fely; 5 of 5 performed significantly better on square localization and direction of motion and 2 of 5 had measurable improvement in visual acuity. 3 Company - sponsored US market study by F letcher Spaght , Inc.

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  [PROSPECTUS SUMMARY](#a001) | 5 |
|  [RISK FACTORS](#a002) | 14 |
|  [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a003) | 40 |
|  [INDUSTRY AND OTHER DATA](#a004) | 42 |
|  [USE OF PROCEEDS](#a005) | 42 |
|  [DIVIDEND POLICY](#a006) | 43 |
|  [CAPITALIZATION](#a007) | 43 |
|  [DILUTION](#a008) | 44 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a009) | 45 |
|  [BUSINESS](#a011) | 50 |
|  [MANAGEMENT](#a012) | 62 |
|  [EXECUTIVE AND DIRECTOR COMPENSATION](#a013) | 68 |
|  [PRINCIPAL SHAREHOLDERS](#a014) | 69 |
|  [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#a015) | 70 |
|  [DESCRIPTION OF SECURITIES](#a016) | 72 |
|  [SHARES ELIGIBLE FOR FUTURE SALE](#a017) | 74 |
|  [UNDERWRITING](#a018) | 76 |
|  [LEGAL MATTERS](#a019) | 83 |
|  [EXPERTS](#a020) | 83 |
|  [WHERE YOU CAN FIND MORE INFORMATION](#a021) | 84 |
|  [PREPARATION AND STRUCTURE OF FINANCIAL STATEMENTS](#a023) | 84 |
|  [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#a022) | F-1 |

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No dealer, salesperson or other person is authorized to give any information or to represent anything not contained in this prospectus or in any free writing prospectus prepared by or on behalf of us or to which we have referred you. You must not rely on any unauthorized information or representations. This prospectus is an offer to sell only the shares offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is accurate only as of its date.

Market data and certain industry data and forecasts used throughout this prospectus were obtained from internal company surveys, market research, consultant surveys, publicly available information, reports of governmental agencies and industry publications and surveys. Industry surveys, publications, consultant surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable, but that the accuracy and completeness of such information is not guaranteed. We have not independently verified any of the data from third party sources, nor have we ascertained the underlying economic assumptions relied upon therein. Similarly, internal surveys, industry forecasts and market research, which we believe to be reliable based on our management's knowledge of the industry, have not been independently verified. Forecasts are particularly likely to be inaccurate, especially over long periods of time. In addition, we do not necessarily know what assumptions regarding general economic growth were used in preparing the forecasts we cite. Statements as to our market position are based on the most currently available data. While we are not aware of any misstatements regarding the industry data presented in this prospectus, our estimates involve risks and uncertainties and are subject to change based on various factors, including those discussed under the heading "Risk Factors" in this prospectus. Forecasts and other forward-looking information derived from such sources and included in this prospectus are subject to the same qualifications and additional uncertainties regarding the other forward-looking statements in this prospectus. See "Special note regarding forward-looking statements."

We own or have rights to trademarks, service marks and trade names that we use in connection with the operation of our business, including our corporate name, logos, and website names. Other trademarks, service marks and trade names appearing in this prospectus are the property of their respective owners. Solely for convenience, some of the trademarks, service marks and trade names referred to in this prospectus are listed without the <sup>®</sup> and™ symbols, but we will assert, to the fullest extent under applicable law, our rights to our trademarks, service marks and trade names.

Unless otherwise indicated or the context otherwise requires, all references in this prospectus to the "Company," "Cortigent," "we," "our," "ours," "us" or similar terms refer to Cortigent, Inc., together with its subsidiaries.

Neither we, nor any of our officers, directors, agents, representatives or underwriters make any representation to you about the legality of an investment in our common stock. You should not interpret the contents of this prospectus or any free writing prospectus to be legal, business, investment, or tax advice. You should consult with your own advisors for that type of advice and consult with them about the legal, tax, business, financial and other issues that you should consider before investing in our common stock.

**PROSPECTUS SUMMARY**

*The following summary highlights selected information contained elsewhere in this prospectus and is qualified in its entirety by the more detailed information and financial statements thus included elsewhere in this prospectus. It does not contain all the information that may be important to you and your investment decision. You should carefully read this entire prospectus, including the matters set forth under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and our financial statements and related notes included elsewhere in this prospectus.* 

*We describe in this prospectus the business that has been contributed to us by Vivani Medical, Inc. ("Vivani") as part of our separation from Vivani as if it was our business for all historical periods described. Please see the section titled "Certain Relationships and Related Party Transactions—Relationship with Vivani" for a description of this separation. Our historical financial results as part of Vivani contained in this prospectus may not reflect our financial results in the future as a stand-alone company or what our financial results would have been had we been a stand-alone company during the periods presented.*

*In this prospectus, unless context requires otherwise, references to "we," "us," "our," "Cortigent," or "the Company" refer to Cortigent, Inc. and its subsidiary.*

**Business Overview**

Cortigent, through its predecessor Second Sight Medical Products, Inc., is a pioneer in developing targeted neurostimulation systems to help patients recover critical body functions. Our technology combines advanced neuroscience with proprietary microelectronics, software, and data processing capabilities to provide artificial vision and potentially restore muscle movement. Our first commercial system, "Argus II," was approved by the U.S. Food & Drug Administration ("FDA") under a Humanitarian Device Exemption ("HDE") and has provided artificial vision to hundreds of profoundly blind people who were implanted with this device. Building on this neurostimulation platform we have substantially completed an early feasibility clinical trial to evaluate a more advanced system for artificial vision that we call "Orion." We are further exploring the application of our Orion<sup>®</sup> neurostimulation technology for accelerating the recovery of arm and hand function in patients who are partially paralyzed due to stroke. In February 2023, we held a meeting with the FDA to commence discussions of an early feasibility clinical study in stroke victims. We believe that additional future applications of our platform technology may have the potential to generate substantial business growth over time.

Both the Argus II and Orion devices create artificial vision by using electrical stimulation. Artificial vision does not restore normal stereoscopic vision or vision with color but rather perceptions of light and shapes requiring implantees to interpret their environment through specialized training. This artificial vision can aid in supporting basic tasks such as finding a doorway, detecting another person's presence, following a cross walk or locating an object. For the Argus II device, the stimulation is delivered to the surviving cells of the retina which convey the activity to the brain via the optic nerve. For the Orion device, the electrical stimulation is delivered directly to the visual cortex, the region of the brain responsible for vision. The pattern of electrical stimulation corresponds to the images captured by a small video camera mounted in the center of the glasses that the patient wears and is connected to the video processing unit ("VPU"). The VPU is a battery-powered device worn by the user, typically on a belt or a strap, that sends power and stimulation commands to the implant and receives diagnostic information from the implant via the external antenna of the glasses.

Argus II users undergo surgery to implant an electrode array inside the eye on the surface of the retina and affix a small electronics case (like a metal button) and an antenna to the outer surface of the eye. A small cable traverses the eye wall, connecting the electronics case to the array. Orion users undergo cranial surgery to implant an electrode array placed on the surface of the brain on the visual cortex and have a small electronics case and an antenna implanted on the outside of the skull, but completely covered by the scalp. A small cable passes through the skull to connect the array to the electronics case. No part of the device penetrates or cuts into the brain tissue itself.

The Argus II design process began in 2004. The Argus II was a novel device that required the components to be developed internally. The Argus II feasibility study commenced in 2006.

In March 2011, the *Argus II<sup>®</sup> Retinal Prosthesis System* was approved for commercial use in the European Union to provide visual perception in patients with profound blindness due to retinitis pigmentosa ("RP"), a rare condition. The device was initially available in the United Kingdom, France, Germany and several other countries at a price of approximately USD $115,000. In February 2013, the U.S. Food & Drug Administration (FDA) approved Argus II under a Humanitarian Device Exemption, and in August 2013 the reimbursement price for Medicare patients was approved at approximately $150,000. More than 350 profoundly blind people around the world have received Argus II retinal implants. Many of these patients have been using their Argus implants for more than ten years, confirming our very high manufacturing standards and product reliability. The market opportunity for the Argus II device has been limited to the small number of patients who have profound blindness due to RP, and the Argus system was discontinued in 2019 due to resulting commercial considerations.

To make artificial vision available to a much larger group of individuals who are blind due to a wider range of causes, including glaucoma, diabetic retinopathy, optic nerve injury or disease and eye injury, we designed and built our next generation system, the *Orion<sup>®</sup> Visual Cortical Prosthesis System ("Orion").* The Orion system leverages our 20 years of experience in targeted neurostimulation for artificial vision. To be eligible for the Orion system, patients must be bilaterally blind with bare or no light perception. This is defined as non-measurable binocular visual acuity, or 5° or less visual field in each eye. We refer to these eligibility criteria as "profound blindness." Cranial surgery is required to place the electrode array onto the brain's surface; the Orion system has been designed not to penetrate the brain tissue. The design process began in 2014 and required substantial changes to the Argus II implant electronics to generate higher currents with a redesigned array for implantation on the brain cortex rather than within the eye.

In November 2017, we commenced an Early Feasibility Study (EFS) of Orion in six patients who enrolled at two medical sites, the Ronald Reagan UCLA Medical Center in Los Angeles ("UCLA") and the Baylor College of Medicine in Houston ("Baylor"). Regularly scheduled visits at both sites were paused in mid-March 2020 due to the COVID-19 outbreak; visits at UCLA resumed in September 2020 and at Baylor in December 2020. Three (3) of the six (6) patients were explanted after the third year of the study; only one subject of those three did not participate in the year three assessment. The result is that we have three-year safety data for all six subjects, but three-year efficacy data for five of six subjects. The EFS study results indicate that:

● <u>Orion has a good safety profile</u>: Five subjects experienced a total of seventeen adverse events (AEs) and one subject did not report any adverse events related to the device or to surgery through November 2022. One was considered a serious adverse event (SAE) and all other adverse events were not serious. The single SAE, a seizure, occurred about three months post-implant, was resolved safely and quickly, and did not require a hospital stay. The investigators determined that this SAE was device-related and not unexpected as it had been disclosed as a potential safety risk in the patient informed consent form. The SAE occurred as we attempted to explore the optimal treatment frequency, which is a key stimulation parameter. The SAE occurred at a specific frequency. All adverse events are evaluated by an independent medical safety monitoring (IMSM) committee. With the IMSM committee's input, we thereafter kept stimulation frequencies for all patients below the level that induced the SAE, and we have not observed any other seizures in this or any other participant. The FDA requires medical device manufacturers to follow 21 CFR 820 and maintain a Quality Management System (QMS). As a part of our QMS, we conform to ISO 14971, an FDA-recognized standard, to identify the hazards associated with the medical device, to estimate and evaluate the associated risks, to control these risks, and to monitor the effectiveness of the controls. There have been no serious adverse events due to the device or surgery since June 2018. One patient chose to have the device explanted before the 36th month due to an unrelated medical condition. Two other patients subsequently requested explantation for reasons unrelated to the device's efficacy or safety. Cortigent's independent medical safety monitor (IMSM) has determined that the reasons for these explants were not related to the device or the surgery.

● <u>Orion efficacy data are encouraging</u>: We assess efficacy by looking at three measures of visual function: 1) *Square localization* – Orion subjects sit in front of a touch screen and are asked to touch within the boundaries of a square when it appears; 2) *Direction of motion* – Subjects are asked to identify the direction of the motion of a line that traverses a screen; and 3) *Grating visual acuity* – a measure of visual acuity that is adapted for very low vision. Five of the six original subjects completed the planned efficacy assessments at 36 months post-implant. For *square localization*, five of five subjects performed significantly better with the system turned on versus turned off. For *direction of motion*, five of five subjects performed significantly better with the system turned on than with it turned off. For *grating visual acuity*, two of five subjects tested had measurable visual acuity with the system turned on compared to none with the device turned off.

Another efficacy measurement of day-to-day functionality and benefit is the Functional Low-Vision Observer Rated Assessment (FLORA). The FLORA assessments were performed by an independent, third-party specialist who spent time with the subjects in their homes. The specialist asked each subject a series of questions and observed them performing 15 or more daily living tasks with the Orion system turned on and with it turned off, such as finding light sources, following a sidewalk, or sorting laundry. The specialist then determined if the system was providing a benefit, was neutral, or impaired the subject's ability to perform these tasks. Four of four subjects who completed the FLORA evaluation at 36 months had positive or mildly positive results indicating that the Orion system was providing benefit. Cortigent is planning to work with the FDA to gain agreement on the additional clinical studies that will be required to secure marketing approval for Orion.

The FDA categorizes electronic medical devices that are implanted as Class III. Both the Argus II and Orion are thus Class III. Class III devices face higher burdens to attain regulatory approval; Cortigent (formerly Second Sight Medical) successfully navigated this approval process with the Argus II system. The Argus II clinical trial enrolled patients with late-stage retinitis pigmentosa, a rare disease, affecting less than four thousand Americans. This small potential market size of fewer than 8,000 individuals enabled the Argus II to qualify for a Humanitarian Device Exemption (HDE) which the FDA granted in February 2013.

In November 2017, the FDA granted an Expedited Access Pathway (EAP) designation to the Orion system to treat individuals who are bilaterally blind due to non-cortical etiology and who are not candidates for any other commercially approved vision restoration therapy. The Breakthrough Device Program (BDP) subsumed the EAP program and its devices in December 2018. Breakthrough Device designations, such as granted to Orion, are intended to accelerate medical device development, assessment, and review, while preserving the statutory standards for premarket approval. The potential patient population for Orion is expected to include blindness due to most common causes, including glaucoma, diabetic retinopathy, eye trauma, optic nerve damage, and retinitis pigmentosa. According to a company-sponsored 2018 study by Fletcher Spaght Inc., there are about 82,000 Americans who could potentially benefit from the Orion system.

 **We are developing a platform technology with multiple potential applications**: Our current-generation miniature neurostimulation device with 60 independent-cortical stimulation channels, supported by safety data from the Argus II and Orion programs, is expected to serve as a platform for targeting other conditions with high unmet medical need. Technical evaluations of potential new indications for the technology began in 2021. We believe that our most promising next target will be to apply cortical neurostimulation to improve recovery of arm and hand function in partially paralyzed stroke patients who are undergoing rehabilitation after stroke. Like Orion, the stroke recovery system will require cranial surgery; in this case to place the electrode array on the area of the brain surface that controls hand and arm motion called the "motor cortex." Design of the stroke system began in 2022, and during February 2023 we studied what we believe to be the optimal array placement on the motor cortex of a cadaver. We have filed an NIH grant application to seek non-dilutive funding to support this program. In addition, in February 2023 we held a pre-submission ("Pre-Sub") meeting with FDA to discuss commencing an Early Feasibility Study of the stroke recovery system. We plan to apply for a Breakthrough Device designation for the stroke recovery system in March 2023. If we fail to secure this designation, we may experience slower interactions with the FDA that could delay our projected development timelines.

**We are targeting substantial revenue opportunities***:* The Orion system, designed to provide visual perception to profoundly blind people, has a target market of approximately 82,000 individuals in the U.S., assuming the planned indication is achieved (profound blindness due to glaucoma, diabetic retinopathy, optic nerve injury or disease and eye injury), based on a study by an independent market research firm engaged by Cortigent. We believe that about one-third of these patients could be reached by a marketing program. Depending on study results to assess clinical utility, Cortigent may seek reimbursement similar to or higher than the $150,000 per device that was approved by the Centers for Medicare and Medicaid Services ("CMS") for the Argus II system. These assumptions translate into a total addressable U.S. market size could potentially be approximately $4 billion at the time of launch. We believe that there are substantially more blind people who could potentially benefit from Orion in Europe, Asia and other world areas.

There are approximately 7.6 million living Americans who have reported a stroke in their lifetime. (Tsao 2022). Consequently we believe that the sales potential for a medical device system that can help improve motoric function in partially paralyzed stroke victims is very large. Each year approximately 610,000 Americans have a first stroke (Kissela 2012). Among the over 80% of people who survive a first stroke, the most common neurological deficit is motor weakness on one side of the body (hemiparesis), and approximately 40% of these stroke victims suffer moderate to severe motor impairment that requires special care (Gresham 1995). If our device achieves treatment success, as to which we can make no assurance, we estimate that it could potentially benefit up to 195,000 U.S. stroke victims each year, creating a total addressable market estimated at approximately $6 billion by the time of system launch.

Several critical development and regulatory milestones must be accomplished in order to complete and market the Orion and stroke recovery systems. We face the material risks of failing to achieve successful clinical trials, to attain regulatory approvals, and to secure favorable product reimbursement for patients covered by Medicare and other types of insurance. Even with a successful trial, it could be determined that certain patient subpopulations cannot be effectively treated by our devices which would reduce our product sales potential. The development process may take longer and be more costly than anticipated and we may not achieve reimbursement levels similar to the one we received for our Argus II device or obtain other suitable reimbursement levels that we may require. Since we currently have no commercial revenues, any of these outcomes could require substantial additional funding.

**Intellectual property:** Cortigent has amassed an extensive intellectual property estate consisting of rights (as of December 1, 2022) to 253 issued U.S. patents, 35 issued European patents (nationalized in Great Britain, France and Germany), seven pending U.S. patent applications, 11 pending European patent applications, seven issued U.S. design patents and six issued European design registrations (with six corresponding issued British design registrations). Our patent estate covers the technologies invented during the development of the Argus and Orion devices. It primarily covers the core technologies of implant neurostimulation techniques and achieving implant longevity, which are integral to our current and future product lines, including the planned stroke rehabilitation system.

**Relationship with Vivani**

Prior to this offering Cortigent has been a wholly owned subsidiary of Vivani Medical, Inc. (Nasdaq: VANI), formerly known as Second Sight Medical Products, Inc. ("Second Sight"). Second Sight had historically operated as a standalone public company but completed a merger with Nano Precision Medical, Inc. as of August 2022. Vivani Medical, Inc. is the resulting entity of this August 2022 merger of Nano Precision Medical Inc. into a subsidiary of Second Sight Medical Products, Inc. Cortigent includes the personnel, technologies, intellectual property and other assets that formerly comprised the vision operations of Second Sight Medical Products, Inc. Upon completion of this offering, Vivani will beneficially own approximately % of the voting power of our common stock (approximately % if the underwriters exercise their option to purchase shares of our common stock in full). As a result, Vivani will be able to control all matters submitted to our stockholders for approval, including the election of our directors and the approval of significant corporate transactions. Adam Mendelsohn, Chairman of the Board of Cortigent, serves as chief executive officer and a director of Vivani.

**Corporate Information**

Cortigent was organized as a Delaware corporation in November 2022 as a successor to the business and operations formerly conducted by Second Sight Medical Products, Inc. Our principal executive offices are located in Valencia, California, and our phone number is (818) 833-5000. Our website address is www.cortigent.com. The information contained in, or that can be accessed through, our website is not incorporated by reference in, and is not part of, this prospectus. You should not consider any information contained on, or that can be accessed through, our website in deciding whether to purchase our common stock. We will remain a wholly owned subsidiary of Vivani pending completion of this offering.

**Implications of Being an Emerging Growth Company**

We are an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As such, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to:

● not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended, or the Sarbanes-Oxley Act;

● reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements, and registration statements; and

● exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

If some investors find our common stock less attractive as a result of these exemptions, there may be a less active trading market for our common stock and the price of our common stock may be more volatile.

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We intend to take advantage of the benefits of this extended transition period.

We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the prior June 30, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period. References herein to emerging growth company will have the meaning associated with it in the JOBS Act.

**Implications of Being a Smaller Reporting Company**

Additionally, we are a "smaller reporting company" as defined in Rule 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements. We will remain a smaller reporting company until the last day of the fiscal year in which (1) the market value of our common stock held by non-affiliates equals or exceeds $250 million as of the end of that year's second fiscal quarter, or (2) our annual revenues equals or exceeds $100 million during such completed fiscal year and the market value of our common stock held by non-affiliates equals or exceeds $700 million as of the end of that year's second fiscal quarter.

**Risks Associated with Our Business**

Our business is subject to a number of risks, including risks that may prevent us from achieving our business objectives or may adversely affect our business, financial condition, results of operations, cash flows and prospects that you should consider before making a decision to invest in our common stock. These risks are discussed more fully in the section titled "Risk factors" beginning on page of this prospectus, and include the following:

●  ***Cortigent currently has no commercial products or product revenue and may never become profitable.*** 

&nbsp;&nbsp;&nbsp;&nbsp;

●  ***Cortigent's commercial and financial success depends on its future products being accepted in the market, and if not achieved, will result in its not being able to generate revenues to support its operations.*** 

●  ***Cortigent may face substantial competition in the future and may not be able to keep pace with the rapid technological changes, which may result from others discovering, developing, or commercializing products before or more successfully than Cortigent does.*** 

●  ***The results of Cortigent's limited initial trials at UCLA and Baylor College of Medicine may not be predictive of, and we may fail to demonstrate the feasibility of, the Orion technology.*** 

●  ***Since Cortigent's predecessor, Second Sight, has a history of operating losses and Cortigent has no current revenue-producing operations, the future of its business is difficult to evaluate.*** 

●  ***Our financial statements have been prepared on a going concern basis and our financial status creates a doubt***  ***whether we will continue as a going concern.*** 

●  ***Clinical development of medical devices, especially complex implantable devices such as ours, involves a lengthy and expensive process with an uncertain outcome, and results of earlier studies and initial trials may not be predictive of future trial results.*** 

●  ***Interim "top-line" and preliminary results from Cortigent's clinical trials that it announces or publishes from time to time may change as more patient data become available and are subject to audit and verification procedures that could result in material changes in the final data.*** 

●  ***We will require substantial additional capital to support our clinical trials and growth plans, and such capital may not be available on terms acceptable to us, if at all. This could hamper our growth and adversely affect our business.*** 

●  ***If we raise capital in the future by issuing shares of common or preferred stock or other equity or equity-linked securities, or by convertible debt or other hybrid equity securities, then-existing stockholders may experience dilution, such new securities may have rights senior to those of the Company's common stock, and the market price of the Company's common stock may be adversely affected.*** 

●  ***We may be subject to litigation in the operation of our business. An adverse outcome in one or more proceedings could adversely affect our business.*** 

●  ***We could be subject to future governmental inspections, investigations and inquiries, or legal proceedings and enforcement actions, any of which could adversely affect our business.*** 

●  ***Cortigent's predecessor, Second Sight, has never been profitable and Cortigent expects operating losses to continue for the foreseeable future.*** 

●  ***Any failure or delay in completing clinical trials or studies for new product candidates or next generation Cortigent products, and the expense of those trials could adversely affect its business.*** 

●  ***If Cortigent fails to recruit highly skilled personnel to replace employees who left it during the COVID-19 pandemic, Cortigent's ability to identify, develop and commercialize new or next generation product candidates will be impaired, could result in loss of markets or market share and could make it less competitive.*** 

●  ***If Cortigent or its licensors are unable to protect its/their intellectual property, then Cortigent's financial condition, results of operations and the value of Cortigent's technology and products could be adversely affected.*** 

●  ***Litigation or third-party claims of intellectual property infringement or challenges to the validity of Cortigent's patents would require it to use resources to protect its technology and may prevent or delay the development, regulatory approval or commercialization of the Orion system or new product candidates. Further, the validity of some of its patents has been challenged.*** 

●  ***If Cortigent fails to comply with its obligations in the agreements under which it licenses development or commercialization rights to products or technology from third parties, it could lose license rights that are important to its business.*** 

●  ***If Cortigent is unable to protect the intellectual property used in its products, others may be able to copy its innovations which may impair its ability to compete effectively in Cortigent's markets.*** 

●  ***Third-party claims of intellectual property infringement may prevent or delay Cortigent's development and commercialization activities for Orion and the stroke recovery system.*** 

&nbsp;&nbsp;&nbsp;&nbsp;

●  ***Cortigent may become involved in future lawsuits to protect or enforce its patents or the patents of its licensors, which could be expensive, time consuming and unsuccessful.*** 

●  ***Cortigent is increasingly dependent on sophisticated information technology systems, including systems from third parties, and if it fails to properly maintain the integrity of Cortigent's data or if Cortigent's products do not operate as intended, Cortigent's business could be materially and adversely affected*.** 

●  ***Legislative or regulatory reform of the health care system in the U.S. and foreign jurisdictions may adversely impact Cortigent's business, operations or financial results.*** 

●  ***Cortigent is subject to stringent domestic and foreign medical device regulation and any unfavorable regulatory action may materially and adversely affect Cortigent's financial condition and business operations.*** 

●  ***Any revenue from sales of Cortigent products will be dependent upon the pricing and reimbursement guidelines adopted in each country, and if pricing and reimbursement levels are inadequate to achieve profitability, Cortigent's operations will suffer.*** 

●  ***Even if Cortigent obtains clearance or approval to sell Cortigent's products, it is subject to ongoing requirements and inspections that could lead to the restriction, suspension, or revocation of Cortigent's clearance.*** 

●  ***Cortigent has no large-scale manufacturing experience, which could limit Cortigent's growth.*** 

●  ***The price of our common stock may be volatile, and the value of your investment could decline.*** 

●  ***Our securities have no prior trading market, and our stock price may decline after the offering.*** 

●  ***We have broad discretion in the use of proceeds and may allocate the net proceeds from this offering in ways that differ from the estimates discussed in the section titled "Use of Proceeds" with which you may not agree, and if we do not use those proceeds effectively your investment could be harmed.*** 

●  ***Because the initial public offering price of our common stock will be substantially higher than the pro forma net tangible book value per share of our outstanding common stock following this offering, new investors will experience immediate and substantial dilution.*** 

●  ***We have the right to issue shares of preferred stock. If we were to issue preferred stock, it is likely to have rights, preferences and privileges that may adversely affect the common stock.*** 

●  ***There has been no prior public market for our common stock, the stock price of our common stock may be volatile or may decline regardless of our operating performance and you may not be able to resell your shares at or above the initial public offering price.*** 

●  ***Provisions in our Certificate of Incorporation which provide that Delaware's Court of Chancery and federal courts in that state shall be the sole forum for all disputes between us and our stockholders for Securities Act claims could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.*** 

**Summary of the Offering**

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| | |
|:---|:---|
| Common stock offered by us | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares. |
| Common stock to be outstanding after this offering | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (shares if the underwriters exercise their option in full). |
| Underwriters' Option to purchase additional shares | We have granted the underwriters an option for a period of 45 days to purchase up to an additional shares of our common stock. |
| Use of proceeds | <br> We estimate that the net proceeds from this offering will be approximately $, or approximately $, if the underwriters exercise their over-allotment option in full, at an assumed initial public offering price of $ per share, the midpoint of the range set forth on the cover page of this prospectus, after deducting the underwriting discounts, commissions and estimated offering expenses payable by us. We intend to use net proceeds from this offering primarily to (i) repay amounts owed to our parent Vivani, (ii) manufacture and assemble new devices for use in Orion and stroke recovery systems, (iii) plan and prepare for an Orion pivotal study, (iv) other research and development, to include the stroke recovery system, and for (v) general working capital. See "Use of Proceeds" for a more complete description of the intended use of proceeds from this offering.<br>|
| Lock-up agreements<br>| Our executive officers and directors have agreed with the underwriters not to sell, transfer, or dispose of any shares or similar securities for a period of twelve months from the date of this prospectus, and Vivani, as our sole stockholder, has agreed with the underwriters not to sell, transfer, or dispose of any shares or similar securities for a period of twelve months from the date of this prospectus. For additional information regarding our arrangement with the underwriters, see "Underwriting." |
| Concentration of ownership | Vivani, which beneficially owns 100% of the outstanding shares of our common stock prior to this offering, will beneficially own approximately % of the voting power of our common stock (or approximately % if the underwriters exercise their option to purchase additional shares of our common stock in full) after the completion of this offering, and as a result, will have the ability to control the outcome of matters submitted to our stockholders for approval, including the election of our directors and the approval of significant corporate transactions.<br>We will be a "controlled company" within the meaning of the corporate governance standards of Nasdaq. See "Management — Controlled Company Exemption." |
| Risk factors | Investment in our common stock involves substantial risks. See "Risk Factors" on page and other information included in this prospectus for a discussion of factors to consider carefully before deciding to invest in shares of our common stock. |
| Proposed Nasdaq Capital Market symbol | "CRGT" |

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The number of shares of our common stock to be outstanding after this offering is based on 20,000,000 shares of our common stock outstanding as of December 31, 2022 and excludes as of that date:

● shares of common stock reserved for future issuance under our 2023 equity incentive plan;

● shares of common stock issuable upon exercise of warrants to be issued to the representative of the underwriters as part of this offering at an exercise price of $(assuming an initial public offering price of $ per share).

**SUMMARY CONSOLIDATED FINANCIAL DATA**

The following summary consolidated statements of operations data for the years ended December 31, 2022 and 2021 and the consolidated balance sheet data as of December 31, 2022 and 2021 have been derived from our audited consolidated financial statements that are included in this prospectus. The historical financial data presented below is not necessarily indicative of our financial results in future periods. You should read the summary consolidated financial data in conjunction with those financial statements and the accompanying notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this prospectus. Our consolidated financial statements are prepared and presented in accordance with United States generally accepted accounting principles, or U.S. GAAP.

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| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** |
|  **Consolidated Statements of Operations Data (In thousands):** | **2022** | **2021** |
|  Net Sales | $— | $— |
|  Cost of sales | 0 | (130) |
|  Gross profit | 0 | 130 |
|  Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Research and development, net of grants | 2449 | 2370 |
| &nbsp;&nbsp;&nbsp;&nbsp; Clinical and regulatory, net of grants | 728 | 378 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative, net of grants | 6250 | 6315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 9427 | 9063 |
|  Loss from operations | (9427) | (8933) |
|  Interest income | 827 | 12 |
|  Net loss | $(8600) | $(8921) |
|  Net loss per common share – basic and diluted | $(0.43) | $($0.45) |
|  Weighted average numbers of shares outstanding – basic and diluted | 20000 | 20000 |

---

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **Consolidated Balance Sheet Data (In thousands):** | **2022** | **2021** |
| Cash | $425 | $106 |
| Money market funds | $0 | $69487 |
| Working capital | $323 | $68045 |
| Total assets | $2133 | $70879 |
| Net Parent investment | $475 | $68365 |

---

**RISK FACTORS**

**Risks Related to Dependence on Cortigent's Commercial Products**

***Cortigent currently has no commercial products or product revenue, will be required to expend significant resources for the foreseeable future, and may never become profitable.***

To date, neither Cortigent, nor the prior operations of Second Sight Medical Products, Inc., have generated profit from sales of its now discontinued Argus II product and Cortigent will not generate revenues unless and until it completes the development and attains the marketing approval for Orion or other neurostimulation systems being developed. Cortigent has relied principally on financing from the sale of equity securities and the receipt of government and other grants to fund its operations. Cortigent expects that its future financial results will depend primarily on its success in further developing its neurostimulation systems, conducting FDA approved clinical trials and obtaining regulatory clearances or approvals for launching, selling, and supporting its medical device systems. To establish these operations Cortigent will need to expend significant resources on hiring additional personnel, conducting continued scientific and product research and development, engaging in further pre-clinical and clinical investigation, giving expanded attention to intellectual property development and prosecution, seeking domestic and international regulatory approvals, marketing and promotion, capital expenditures, working capital, general and administrative expenses, and fees and expenses associated with its capital raising efforts.

Cortigent expects to incur costs and expenses related to consulting costs, laboratory development costs, hiring of scientists, engineers, sales representatives and other operational personnel, and the continued development of relationships with potential partners as it continues to seek regulatory clearance or approval for its products. As a pre-revenue company, Cortigent continues to incur significant operating losses, and it expects to continue to incur additional losses for at least the next several years. Cortigent cannot assure you that it will generate revenue or be profitable in the future. Cortigent's future or updated products may never be cleared or approved or become commercially viable or accepted for use.

Investment in medical device technology entails material uncertainty and is highly speculative. It entails substantial upfront capital expenditures over time and significant risk that any potential product will fail to demonstrate adequate safety, efficacy, clinical utility or acceptance by physicians and patients. Investors should evaluate an investment in Cortigent duly considering the uncertainties encountered by developing medical technology companies in a competitive environment. Our Orion and stroke recovery products may fail effectively to treat the entire target patient populations, the regulatory approval of novel products and devices can be more expensive and take longer than we may anticipate, we have no commercial products or product revenue on which to rely and we may not achieve a reimbursement level similar to the one we obtained for our Argus II device. or obtain other suitable reimbursement levels that we may require. There can be no assurance that our efforts will be successful or that we will ultimately be able to achieve profitability. Even if Cortigent achieves profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis. Cortigent's failure to become and remain profitable could adversely affect the market price of its common stock and could significantly impair its ability to raise capital, expand its business or continue to implement its business plan.

***Cortigent will be required to conduct expensive and time-consuming clinical and non-clinical studies to support the filing of a Premarket Application (PMA) with the U.S. FDA and similar applications with other countries' regulatory bodies, and regulatory approval of such applications will be required to commercialize our products. The clinical trial and regulatory review and approval standards for our type of novel technology is uncertain and subject to change during our development program. Our inability to meet the expected regulatory criteria for clinical studies or regulatory applications would significantly and adversely affect our business prospects.***

**Regulatory Status and Pathway for ORION**. The Company has reached a tentative agreement with FDA that its Functional Low-Vision Observer Rated Assessment (FLORA) is an adequate efficacy endpoint for an Orion pivotal study, provided that it is validated. FLORA involves some subjectivity in the assessment, and validation proves that multiple assessors will consistently rate performance the same. There can be no assurance that Cortigent will be successful in validating the FLORA assessment. Cortigent has not received FDA agreement on the safety endpoints for an Orion pivotal trial. Cortigent is currently conducting a patient preference information (PPI) study to assist in determining blind patient's willingness to accept risk for the potential benefits of Orion. A PPI study is FDA's preferred method for determining patient acceptance of risk. The safety endpoint is a crucial factor in determining the size (number of participants) of a pivotal study. No assurance can be given that Cortigent will reach agreement with the FDA on the safety endpoints for an Orion pivotal trial, or that the safety endpoints will lead to a trial size that Cortigent can support. While we believe that a single, well-designed, pivotal trial may be adequate to support an FDA marketing application, FDA may, for a variety of potential reasons, conclude that more than one additional study is required to seek regulatory approval.

<br> **Regulatory Status and Pathway for Stroke Device.** In February 2023 we held a pre-submission ("Pre-Sub") meeting with FDA to discuss commencing an Early Feasibility Study of our stroke recovery system. If the feasibility study is approved and completed with favorable results, we expect to engage in further discussions with FDA regarding the necessary clinical trials and regulatory pathways for us to seek approval of a stroke device. The proposed feasibility study may fail to generate favorable results, but even if it is deemed successful, the remaining clinical and regulatory process may take several years or longer.

***Even if we obtain regulatory approvals, Cortigent's commercial and financial success depends on its products being accepted in the market, and if not achieved, will result in its not being able to generate revenues to support its operations.***

Even if Cortigent obtains regulatory marketing approval, commercial success of its products will depend, among other things, on their acceptance by healthcare professionals such as retinal specialists, ophthalmologists, brain surgeons, cardiovascular specialists, neurologists, general practitioners, low vision therapists and mobility experts, hospital purchasing and controlling departments, patients, and other members of the medical community. The degree of market acceptance of any of Cortigent's product candidates will depend on factors that include:

● cost of treatment;

● pricing and availability of alternative products;

● the extent of available third-party coverage or reimbursement;

● perceived efficacy, safety, and functionality of our products and the surgical procedures required to use our products relative to other future products and medical solutions; and

● prevalence and severity of adverse side effects associated with treatment.

***The activities of competitive medical device companies, or others, may limit Cortigent's revenue from the sale of the Orion and other neurostimulation systems.***

Cortigent's commercial opportunities may be reduced if its competitors develop or market products that are more effective, are better tolerated, receive better reimbursement terms, achieve greater acceptance by physicians, have better distribution channels, or are less costly. Currently, to Cortigent's knowledge, no other competing medical devices comparable to the Orion system have been approved by regulatory agencies in the U.S. or Europe to restore some functional vision in persons who have become blind due to a broad range of causes. Other visual prosthesis companies with technologies under development include Pixium Vision SA (Pixium) that is developing the PRIMA (sub-retinal implant) in Dry-AMD patients. In 2017, Pixium announced approval for two feasibility studies of PRIMA in Dry-AMD patients. One study reportedly was in Paris with five subjects, and a second Early Feasibility Study in five patients is underway at two U.S. sites. A pivotal study of PRIMA is underway in Europe (France, Germany and the UK) with read-out of results expected in 2023. We are not aware of any pivotal clinical studies of PRIMA in the U.S.

Nano Retina Inc., a company based in Israel, is reported to have developed technology that may improve retinal prostheses in the future. A Nano Retina clinical trial is underway in Europe and Israel, and five subjects reportedly have been implanted to date. Bionic Vision Technologies, based in Australia, is developing a Bionic Eye Visual Prosthesis System, and has completed a two-year feasibility study in four patients in Australia. It has announced a partnership with Cirtec Medical in the U.S. and is believed to be planning a pivotal clinical trial.

We are aware of other certain companies that are developing electrode arrays which penetrate the brain, unlike Orion, which is placed on the brain's surface. The Illinois Institute of Technology's Intracortical Visual Prosthesis (ICVP) has been designated as a Breakthrough Device and has advanced to an early feasibility study in the U.S. To date, one subject of five has been implanted. Neuralink company has recently demonstrated a penetrating electrode cortical implant in animal models. Vision restoration is one of Neuralink's stated goals.

In the field of medical device-assisted stroke rehabilitation, MicroTransponder Inc. sells the Vivistim<sup>®</sup> FDA-approved vagus nerve stimulator (VNS). The combination of VNS with traditional rehabilitation therapy is intended to assist the brain in forming the connections necessary to regain motor function. Cortigent believes that our technology has the potential to deliver more targeted direct cortical stimulation that could provide superior results to VNS.

Many privately and publicly funded universities and other organizations are engaged in research and development of potentially competitive products and therapies, such as stem cell and gene therapies, some of which may target multiple indications of Cortigent's product candidates. These organizations include pharmaceutical companies, biotechnology companies, public and private universities, hospital centers, government agencies and research organizations. Cortigent's competitors include large and small medical device and biotechnology companies that may have significant access to capital resources, competitive product pipelines, substantial research and development staff and facilities, and substantial experience in medical device development.

***Cortigent may face substantial competition in the future and may not be able to keep pace with the rapid technological changes which may result from others discovering, developing, or commercializing products before or more successfully than Cortigent does.***

In general, the development and commercialization of new medical devices is highly competitive and is characterized by extensive research and development and rapid technological change. Physicians and persons who may be suitable for our neurostimulation systems likely will consider many factors including product reliability, clinical outcomes, product availability, price and available reimbursement, and product and patient support services that Cortigent may or may not be able to provide. Market share as it develops can shift due to technological innovation and other business factors. Major shifts in industry market share within the medical device industry have occurred that may have arisen in connection with performance and reliability problems of various medical devices, physician advisories and/or safety alerts, reflecting the importance of product quality and reliability in the medical device industry. Any quality problems with Cortigent's processes, goods and services could harm its reputation for producing high-quality products and would erode its competitive advantage, sales, and market share. Cortigent's competitors may develop products or other novel approaches and technologies to deal with treating blindness that are more effective, safer, or less costly than any that Cortigent is developing, and if those products gain market acceptance its revenue and financial results could be adversely affected.

If Cortigent fails to develop new products or enhance existing products, its leadership in the markets it serves could erode, and its business, financial condition and results of operations may be adversely affected.

***Results from Cortigent's limited initial trials at UCLA and Baylor College of Medicine in Houston may not be predictive of, and its ongoing development efforts may never demonstrate the commercial feasibility of, our Orion or other technologies.***

Cortigent's research and development efforts remain subject to all risks associated with the development of new medical technology. Cortigent's Orion technology, though based on the FDA-approved Argus II retinal prosthesis, is not yet fully developed. Development of the underlying technology, including the further development and refinement of Cortigent's Orion technology, may be affected by unanticipated technical or other problems, other development and research issues, and the possible insufficiency of funds needed in order to complete development of these products or devices. Regulatory and clinical hurdles, adverse reactions experienced in trials, ambiguous or inadequate efficacy in clinical trials, or other operational or regulatory challenges also may result in delays and cause Cortigent to incur additional expenses that may increase its need for capital and result in additional losses. For example, three of the six subjects implanted in the Orion Early Feasibility Study have been explanted at the subjects' request. All were explanted after the third year of the study; however, one subject did not participate in the year three assessment. The result is we have three-year safety data for all six subjects, but three-year efficacy data for five of the six subjects. Cortigent's independent medical safety monitor (IMSM) has determined that the reasons for the explants were not related to the device or the surgery. The explants represent a limit in the long-term data that can be collected in the current study. If Cortigent cannot complete, or if it experiences significant delays in developing its technology, applications, or products for use by those patients who can benefit from functional vision restoration, particularly after incurring significant expenditures, Cortigent's business may fail, and investors may lose the entirety of their investment.

***Since Cortigent's predecessor, Second Sight, has a history of operating losses and Cortigent has no current revenue producing operations, the future of its business is difficult to evaluate.***

To date, Cortigent's operations have consisted of the continued development and clinical studies of its core technologies and implementation of the early parts of Cortigent's business plan. Our predecessor company, Second Sight, has incurred significant operating losses in each year since its inception and Cortigent will continue to incur additional losses for the next several years. In addition, its losses may be greater than expected and its operating results may suffer. Cortigent has limited historical financial data upon which it may base its projected revenue and its planned operating expenses. This operating history makes it difficult to evaluate its technology or prospective operations and business prospects.

***Clinical development involves a lengthy and expensive process with an uncertain outcome, and results of earlier studies and initial trials may not be predictive of future trial results.***

Clinical testing is expensive and can require several or more years to complete, and its outcome is inherently uncertain. Failure or delay can occur at any time during the clinical trial process. The clinical trial requirements for a novel complex technology such as ours are uncertain but could include multiple phases of trials of increasing size and complexity, and FDA or other regulatory authorities may change their views on the clinical requirements during the term of our development program, leading to further and unexpected costs, delays, and risks of failure. Success in nonclinical studies and early feasibility clinical studies do not ensure that expanded clinical trials used to support regulatory submissions will be successful. These setbacks may be caused by, among other things, nonclinical findings made while clinical trials were underway, and safety or efficacy observations made in clinical trials, including previously unreported adverse events. Even if Cortigent's clinical trials are completed, the results may not be sufficient to obtain regulatory approval or clearance for its product candidates.

***Interim "top-line" and preliminary results from Cortigent's clinical trials that it announces or publishes from time to time may change as more patient data become available and are subject to audit and verification procedures that could result in material changes in the final data.***

From time to time, Cortigent may publish interim top-line or preliminary results from its clinical trials. Interim results from clinical trials are subject to the risk that one or more of the clinical outcomes may materially change as patient enrollment continues and more patient data become available. Preliminary or top line results also remain subject to audit and verification procedures that may result in the final data being materially different from the preliminary data Cortigent previously published. As a result, interim and preliminary data should be viewed with caution until the final data are available. Differences between preliminary or interim data and final data could significantly harm Cortigent's business prospects and may cause the trading price of its common stock to fluctuate significantly.

**Risks Related to our Liquidity and Capital Resources** 

***We will require substantial additional capital to support our clinical trials and growth plans, and such capital may not be available on terms acceptable to us, if at all. This could hamper our growth and adversely affect our business.***

We intend to make significant investments to support our clinical trials and business growth and will require substantial additional funds to respond to business challenges, including the need to develop new product offerings and features or enhance our existing platform, improve our operating infrastructure, or acquire complementary businesses, personnel, and technologies. Accordingly, we may need to engage in equity or debt financings to secure additional funds. Our ability to obtain additional capital when required will depend on our business plans, investor demand, our operating performance, capital markets conditions and other factors. If we raise additional funds by issuing equity, equity-linked or debt securities, such as preferred stock as authorized by our Charter, those securities may have rights, preferences, or privileges senior to the rights of our currently issued and outstanding equity or debt, and our existing stockholders may experience dilution. If we are unable to obtain additional capital when required, or on satisfactory terms, our ability to continue to support our business growth or to respond to business opportunities, challenges or unforeseen circumstances could be adversely affected, and our business, financial condition, results of operations and prospects may be harmed.

***We may invest in or acquire other businesses, and our business may suffer if we are unable successfully to integrate acquired businesses into our company or otherwise manage the growth associated with multiple acquisitions.***

As part of our business strategy, we may make acquisitions as opportunities arise to add new or complementary businesses, products, brands, or technologies. In some cases, the costs of such acquisitions may be substantial, including required professional fees and due diligence efforts. There is no assurance that the time and resources expended on pursuing a particular acquisition will result in a completed transaction, or that any completed transaction will ultimately be successful. In addition, we may be unable to identify suitable acquisition or strategic investment opportunities or may be unable to obtain any required financing or regulatory approvals, and therefore may be unable to complete such acquisitions or strategic investments on favorable terms, if at all. We may decide to pursue acquisitions with which our investors may not agree, and we cannot assure investors that any acquisition or investment will be successful or otherwise provide a favorable return on investment. In addition, acquisitions and the integration thereof require significant time and resources, and place significant demands on our management, as well as on our operational and financial infrastructure. In addition, if we fail to successfully close transactions or integrate new teams, or integrate the products and technologies associated with these acquisitions into our company, our business could be seriously harmed. Acquisitions may expose us to operational challenges and risks, including:

● the ability to profitably manage acquired businesses or successfully integrate the acquired businesses' operations, personnel, financial reporting, accounting and internal controls, technologies, and products into our business;

● increased indebtedness and the expense of integrating acquired businesses, including significant administrative, operational, economic, geographic, or cultural challenges in managing and integrating the expanded or combined operations;

● entry into jurisdictions or acquisition of products or technologies with which we have limited or no prior experience, and the potential of increased competition with new or existing competitors resulting from such acquisitions;

● diversion of management's attention and the over-extension of our operating infrastructure and our management systems, information technology systems, and internal controls and procedures, which may be inadequate to support growth;

● the ability to fund our capital needs and any cash flow shortages that may occur if anticipated revenue is not realized or is delayed, whether by general economic or market conditions, or unforeseen internal difficulties; and

● the ability to retain or hire qualified personnel required for expanded operations.

Our acquisition strategy may not succeed if we are unable to remain attractive to target companies or expeditiously close transactions. Issuing shares of our stock to fund an acquisition would cause economic dilution to existing stockholders. If we develop a reputation for being a difficult acquirer or having an unfavorable work environment, or target companies view our shares of capital stock unfavorably, we may be unable to consummate key acquisition transactions essential to our corporate strategy and our business, financial condition, results of operations and prospects may be seriously harmed.

***If we raise capital in the future by issuing shares of common or preferred stock or other equity or equity-linked securities, or convertible debt or other hybrid equity securities, then-existing stockholders may experience dilution, such new securities may have rights senior to those of the Company's common stock, and the market price of the Company's common stock may be adversely affected.***

If the Company raises capital in the future, then existing stockholders may experience dilution. Our certificate of incorporation, as amended, provides that preferred stock may be issued from time to time in one or more series. The Board is authorized to fix voting rights, designations, powers, and preferences, all relative, participating, optional or other special rights, and any qualifications, limitations, and restrictions thereof, applicable to the shares of each series. The Board may, without stockholder approval, issue preferred stock with voting and other rights that could adversely affect the voting power and other rights of the holders of the shares of common stock and could have anti-takeover effects. The ability of the Board to issue preferred stock without stockholder approval could have the effect of delaying, deferring, or preventing a change of corporate control or the removal of existing management. The issuance of any such securities may adversely impact the market price of the Company's common stock.

**General Risk Factors** 

***Economic downturns and political and market conditions beyond our control, could adversely affect our business, financial condition, results of operations and prospects.***

Our financial performance is subject to global and United States economic conditions and their impact on levels of spending by users. Economic recessions have had, and may continue to have, far reaching adverse consequences across many industries, which may adversely affect our business, financial condition, results of operations and prospects. We are currently experiencing a global recession precipitated by the COVID-19 pandemic, and if recovery is slow or stalls, or we experience a further downturn resulting from further waves of the COVID-19 pandemic or other negative global circumstance, we may experience a material adverse effect on our business, financial condition, results of operations or prospects. The ultimate severity of the coronavirus outbreak is uncertain at this time and therefore we cannot predict the full impact it may have on our end markets and our operations; however, the effect on our business, financial condition, results of operations and prospects could be material and adverse.

***Continued inflation may harm our business and financial condition.***

If our costs become subject to significant inflationary pressures, we may not be able to offset these higher costs through price increases or other pricing adjustments to our business operations. Our inability or failure to do so could harm our business, financial condition, and operating results.

***We may be subject to litigation in the operation of our business. An adverse outcome in one or more proceedings could adversely affect our business.***

We may in the future face the risk of claims, lawsuits and other proceedings involving intellectual property, privacy, securities, tax, labor and employment, regulatory and compliance, commercial disputes, services and other matters. Litigation to defend us against claims by third parties, or to enforce any rights that we may have against third parties, may be necessary, which could result in substantial costs and diversion of our resources, causing a material adverse effect on our business, financial condition, results of operations and prospects.

Any litigation in which we are a party may result in an onerous or unfavorable judgment that may not be reversed upon appeal, or in payments of substantial monetary damages or fines, the posting of bonds requiring significant collateral, letters of credit or similar instruments, or we may decide to settle lawsuits on similarly unfavorable terms. These proceedings could also result in reputational harm, criminal sanctions, consent decrees or orders preventing us from offering certain products or requiring a change in its business practices in costly ways or requiring development of non-infringing or otherwise altered products or technologies. Litigation and other claims and regulatory proceedings against us could result in unexpected disciplinary actions, expenses, and liabilities, which could have a material adverse effect on its business, financial condition, results of operations and prospects.

***We could be subject to future governmental investigations and inquiries, legal proceedings, and enforcement actions. Any such investigation, inquiry, proceeding or action could adversely affect our business.***

We have received formal and informal inquiries from time to time, from government authorities and regulators, regarding compliance with laws and other matters, and we may receive such inquiries in the future, particularly as we grow and expand our operations. Violation of existing or future regulations, regulatory orders or consent decrees could subject us to substantial monetary fines and other penalties that could adversely affect our business, financial condition, results of operations and prospects. In addition, it is possible that future orders issued by, or inquiries or enforcement actions initiated by, government or regulatory authorities could cause us to incur substantial costs, expose us to unanticipated liability or penalties, or require us to change our business practices in a manner materially adverse to our business, financial condition, results of operations and prospects.

***Our insurance may not provide adequate levels of coverage against claims.***

We intend to maintain insurance that we believe is customary for businesses of our size and type. However, there are types of losses we may incur that cannot be insured against or that we believe are not economically reasonable to insure. Moreover, any loss incurred could exceed policy limits or not exceed our applicable deductible, and policy payments made to us may not be made on a timely basis. Such losses could adversely affect our business, financial condition, results of operations and prospects.

**Risks Related to Cortigent's Common Stock**

***Cortigent's predecessors, Second Sight and Vivani Medical, have not been profitable to date and Cortigent expects operating losses to continue for the foreseeable future; Cortigent may never be profitable.***

Second Sight incurred operating losses and generated negative cash flows since its inception and financed its operations principally through equity investments and borrowings. Cortigent's ability to generate sufficient revenues to fund operations is uncertain. For the fiscal years ended December 31, 2022 and 2021, Cortigent generated no revenue from operations and incurred a net loss of $8.6 and $8.9 million. respectively.

Cortigent's has a limited commercial operating history, therefore, revenue is difficult to forecast. Cortigent expects expenses to increase in the future as it expands its activities in connection with the further development of Orion, our neurostimulation system, in development for stroke rehabilitation, and other future applications. Cortigent cannot assure you that it will be profitable in the future. Accordingly, the extent of Cortigent's future losses and the time required to achieve profitability, if ever, is uncertain. Failure to achieve profitability could materially and adversely affect the value of its common stock and its ability to affect additional financings. The success of the business depends on its ability to increase revenues to offset expenses. If Cortigent does not achieve profitability, or otherwise falls short of projections, its business, financial condition, and operating results will be materially adversely affected.

***Sales, or the availability for sale, of substantial amounts of Cortigent's common stock could adversely affect the value of its common stock.***

Cortigent cannot predict the effect, if any, that future sales of its common stock, or the availability of its common stock for future sales, will have on the market price of its common stock. Sales of substantial amounts of its common stock in the public market and the availability of shares for future sale could adversely affect the prevailing market price of its common stock. This in turn could impair Cortigent's future ability to raise capital through an offering of its equity securities.

***There may be future sales or other dilution of Cortigent's equity, which may adversely affect the market price of its common stock.***

Cortigent is not restricted from issuing additional shares of common stock, other than pursuant to the lockup arrangements with the underwriters. The market price of Cortigent's common stock could decline resulting from sales of its common stock and warrants or the perception that such sales could occur. Cortigent may issue and sell additional shares of its common stock in private placements or registered offerings in the future. Cortigent also may conduct additional registered rights offerings in the future, pursuant to which it may issue shares of its common stock or other securities.

**Risks Relating to Cortigent's Operations**

***The COVID-19 pandemic has had an adverse effect on Cortigent's business and results of operations and is expected to continue to have further adverse effects, which could be material, on its business, results of operations, financial condition, liquidity, and capital investments.***

In December 2019, an outbreak of a novel strain of coronavirus (COVID-19) originated in Wuhan, China and has since spread globally. On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. Shortly thereafter, most states in the U.S., including California, where Cortigent is headquartered, declared a state of emergency. Government authorities implemented numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place or stay-at-home orders, and business shutdowns.

In accordance with local and state guidelines regarding the COVID-19 pandemic, Cortigent requires all employees to use their best judgement to work remotely or in the office; many of Cortigent's employees are accustomed to working remotely. Although Cortigent continues to monitor the situation and may adjust current policies as more information and public health guidance becomes available, restricting the ability to do business in person may create operational or other challenges, any of which could harm its business, financial condition, and results of operations. In addition, Second Sight's clinical trials were affected by the COVID-19 outbreak. Patient visits in ongoing clinical trials were delayed, for example, due to prioritization of hospital resources toward the COVID-19 outbreak, travel restrictions imposed by governments, and the inability to access sites for initiation and monitoring. Further, scheduled patient visits to Second Sight's clinical sites at UCLA and Baylor were temporarily put on hold due to COVID-19. Visits have now resumed at both sites. In addition, the validation study for the revised FLORA assessment was paused due to travel requirements for its completion. COVID-19 has and may continue to adversely affect global economies and financial markets, resulting in an economic downturn that could affect demand for Cortigent's product candidates, if approved, and impact its operating results. Even as the COVID-19 pandemic subsides, Cortigent may continue to experience an adverse impact to its business due to the continued global economic repercussions of the pandemic. Cortigent could experience further harm to its business, and it cannot anticipate all ways in which health epidemics such as COVID-19 and its variants could adversely impact its business. Although Cortigent is continuing to monitor and assess the effects of the COVID-19 pandemic on its business, the ultimate impact of the COVID-19 outbreaks, or a similar health epidemic, is highly uncertain and subject to change. COVID-19 has directly and indirectly adversely affected Cortigent and will likely continue to do so for an uncertain period. In March and April 2020 Second Sight laid off the majority of its employees as a result of COVID-19 and an inability to obtain financing. Cortigent retains approximately fifteen of Second Sight's employees to oversee current operations, including some that were re-hired once its financial situation improved, and the future of Cortigent became clearer. The cumulative effects of COVID-19 and its variants on Cortigent cannot be predicted at this time, but could include, without limitation:

● reputational damages of Cortigent and its products;

● inability to raise additional funds to finance and continue Cortigent's operations;

● inability to maintain adequate office laboratory facilities;

● inability to retain and hire experienced personnel;

● diminished ability, or inability, to enroll patients or complete clinical trials and other activities required to achieve regulatory clearance of Cortigent's products under development

● inability to finalize Cortigent's plan for and enroll patients into its proposed pivotal clinical trial;

● material delays or inability to complete development and commercialization of Orion or other neurostimulation systems in development;

● inability to satisfy Nasdaq's continued listing requirements and possible delisting; and

● other uncertain events that may have negative impacts on Cortigent's operations.

***Materials necessary to manufacture Orion and our other neurostimulation systems in development may not be available on commercially reasonable terms, or at all, which may delay development, manufacturing, and commercialization of Cortigent's products.***

We rely on suppliers to provide various materials, components, and services necessary to produce the Orion system and our next generation product candidates. Certain suppliers are currently sole source because of Cortigent's low manufacturing volumes and its need for specialty technical or other engineering expertise. Cortigent's suppliers may be unable or unwilling to deliver these materials and services on a timely basis or on commercially reasonable terms or may be unable or unwilling to provide materials that meet our regulatory compliance criteria. Should this occur, Cortigent would seek to qualify alternative suppliers or to develop in-house manufacturing capability.

The Argus II and Orion devices used in the ongoing clinical study were manufactured internally and we have maintained this technical expertise. We plan to engage two US-based contract manufacturing organizations (CMO's) to produce both the Orion and the stroke recovery system for upcoming clinical trials. Following an in-depth evaluation, we selected a preferred manufacturer for the electrode arrays and another to assemble and release the finished medical device systems. Contract negotiations are ongoing and we expect to engage these companies after completing the current offering. However, we cannot assure that we will engage the CMOs until contracts are signed. We may need to identify alternative suppliers if either party declines to sign an agreement with us, or the terms are deemed unfavorable. To date, we have not experienced any material disruptions to our operations due to our reliance on these limited number of suppliers and contract manufacturers.

Cortigent relies on numerous suppliers to provide materials, components, and services necessary to produce the Orion system and next generation product candidates. Certain suppliers are currently sole source because of Cortigent's low manufacturing volumes and its need for specialty technical or other engineering expertise. Cortigent's suppliers may be unable or unwilling to deliver these materials and services timely and as needed or on commercially reasonable terms or may be unable or unwilling to provide materials that meet our regulatory compliance criteria. Should this occur, Cortigent would seek to qualify alternative suppliers or develop in-house manufacturing capability but may be unable to do so.

Substantial design or manufacturing process modifications and regulatory approval might be required to facilitate or qualify an alternate supplier. Even if Cortigent were to qualify alternative suppliers, the substitution of suppliers may be at a higher cost and cause time delays, including those associated with additional possible FDA review, that could impede the production of our medical device systems, reduce gross profit margins, and impact its ability to deliver its products as may be timely required to meet demand.

***Any failure or delay in completing clinical trials or studies for new product candidates or next generation of Cortigent's products and the expense of those trials could adversely affect its business.***

Preclinical studies and clinical trials required to demonstrate the safety and efficacy of incremental changes, including any new implants, wearable accessories, or software enhancements are time consuming and expensive. If Cortigent is required to conduct additional clinical trials or other studies with respect to any of Cortigent's product candidates beyond those that it has contemplated, if it is unable to successfully complete its clinical trials or other studies, or if the results of these trials or studies are not positive or are only modestly positive, Cortigent may be delayed in obtaining marketing approval for those product candidates, it may not be able to obtain marketing approval, or it may obtain approval for indications that are not as broad as intended. Cortigent's product development costs also will increase if it experiences delays in testing or approvals.

The completion of clinical trials for Cortigent's product candidates could be delayed because of its inability to manufacture or obtain from third parties materials sufficient for use in preclinical studies and clinical trials; delays in patient enrollment and variability in the number and types of patients available for clinical trials; difficulty in maintaining contact with patients after treatment, resulting in incomplete data; poor effectiveness of product candidates during clinical trials; unforeseen safety issues or side effects; and governmental or regulatory delays and changes in regulatory requirements and guidelines.

If Cortigent incurs significant delays in its clinical trials, its competitors may be able to bring their products to market before Cortigent does, which could result in harming Cortigent's ability to commercialize its products or potential products. If Cortigent experiences any of these occurrences its business will be materially harmed.

***If Cortigent fails to recruit highly skilled personnel to replace employees who have left it, Cortigent's ability to identify, develop and commercialize new or next generation product candidates will be impaired, could result in loss of markets or market share, and could make it less competitive.***

Cortigent's predecessor, Second Sight, previously laid off the majority of its employees, including key members of its executive management team, because the COVID-19 outbreak affected its ability to fund its operations. The loss of any management executive or any other principal member of its management team or its inability to attract and retain skilled employees could impair its ability to identify, develop and market new products or effectively deal with regulatory and reimbursement matters. To the extent that Cortigent loses experienced personnel, it is critical that it recruit or develop other employees, hire new qualified personnel, and successfully manage the transfer of critical knowledge. No assurance can be given that it will be able to do so.

***Cortigent could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws.***

The U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws generally prohibit companies and their intermediaries from making improper payments to non-U.S. officials for the purpose of obtaining or retaining business. Cortigent intends to adopt policies for compliance with these anti-bribery laws, which often carry substantial penalties. Cortigent cannot assure you that its internal control policies and procedures will always protect Cortigent from reckless or other inappropriate acts committed by Cortigent's affiliates, employees or agents. Violations of these laws, or allegations of such violations, could have a material adverse effect on its business, financial position and results of operations, and could cause the market value of Cortigent's common stock to decline.

**Risks Related to Intellectual Property and Other Legal Matters**

***If Cortigent or its licensors are unable to protect its/their intellectual property, then Cortigent's financial condition, results of operations, and the value of Cortigent's technology and products could be adversely affected.***

Patents and other proprietary rights are essential to Cortigent's business, and its ability to compete effectively with other companies is dependent upon the proprietary nature of its technologies. Cortigent also relies upon trade secrets, know-how, continuing technological innovations and licensing opportunities to develop, maintain and strengthen its competitive position. Cortigent seeks to protect these, in part, through confidentiality agreements with certain employees, consultants and other parties. Cortigent's success will depend in part on the ability of it, and its licensors, to obtain, maintain (including making periodic filings and payments) and enforce patent protection for their intellectual property, in particular, those patents to which it has secured exclusive rights. Cortigent's licensors may not successfully prosecute or continue to prosecute the patent applications which Cortigent has licensed. Even if patents are issued in respect of these patent applications, Cortigent or its licensors may fail to maintain these patents, may determine not to pursue litigation against entities that are infringing upon these patents, or may pursue such enforcement less aggressively than it ordinarily would. Without adequate protection for the intellectual property that Cortigent owns or licenses, other companies might be able to offer substantially identical products for sale, which could unfavorably affect Cortigent's competitive business position and harm its business prospects. Even if issued, patents may be challenged, invalidated, or circumvented, which could limit Cortigent's ability to stop competitors from marketing similar products or limit the length of the term of patent protection that Cortigent may have for its products.

In addition, we jointly own certain patents with certain third parties, including the John Hopkins University, Advanced Medical Electronics, Lawrence Livermore National Security, LLC, and the Salk Institute of Biological Studies, wherein we do not have any agreement with each co-owner as to commercialization and enforcement of the co-owned patents. Each co-owner may independently exploit, without consent of, and without accounting to, the other co-owners. A jointly owned patent cannot be enforced unless all owners join in the lawsuit. If a co-owner refuses to participate, the lawsuit cannot proceed. Co-owners may assign or license (non-exclusively) the patent to a third party, including an accused infringer, instead of joining in the suit. Also, although we are responsible in each instance for the costs of maintaining these co-owned patents, each co-owner has no obligation to share with us any proceeds they may receive related to the co-owned properties. Without agreements permitting Cortigent to control the commercialization and enforcement of the co-owned patents, other companies might be able to obtain rights to the co-owned patents, which could unfavorably affect Cortigent's competitive business position and harm its current or future business prospects.

***Litigation or third-party claims of intellectual property infringement or challenges to the validity of Cortigent's patents would require it to use resources to protect its technology and may prevent or delay the development, regulatory approval or commercialization of the Orion system or new product candidates. Further, the validity of some of its patents has been challenged.***

Pixium filed three oppositions in the European Patent Office (EPO) challenging the validity of certain European patents owned by Cortigent. Following opposition proceedings, the EPO revoked the following Cortigent patents:

● EP1937352 *Sub-Threshold Stimulation to Precondition Neurons for Supra-Threshold Stimulation* — revoked December 3, 2021.

● EP2061549 *Package for an Implantable Neural Stimulation Device* — Revoked April 5, 2022.

● EP2185236 — *Implantable Device for the Brain* —upheld in the Opposition Division yet remains pending on appeal.

If Cortigent is the target of claims by third parties asserting that its products or intellectual property infringe upon the rights of others it may be forced to incur substantial expenses or divert substantial employee resources from its business and, if successful, those claims could result in Cortigent's having to pay substantial damages or prevent it from developing one or more product candidates. Further, if a patent infringement suit were brought against Cortigent or its collaborators, it or they could be forced to stop or delay research, development, manufacturing or sales of the product or product candidate that is the subject of the suit. The validity of some of Cortigent's patents has been challenged. If Cortigent experiences patent infringement claims, or if it elects to avoid potential claims others may be able to assert, Cortigent or its collaborators may choose to seek, or be required to seek, a license from the third-party and would most likely be required to pay license fees or royalties or both. These licenses may not be available on acceptable terms, or at all. Even if Cortigent or its collaborators were able to obtain a license, the rights may be nonexclusive, which would give Cortigent's competitors access to the same intellectual property.

Ultimately, Cortigent could be prevented from commercializing a product, or be forced to cease some aspect of its business operations if, as a result of actual or threatened patent infringement claims, Cortigent or its collaborators are unable to enter into licenses on acceptable terms. This could harm Cortigent's business significantly. The cost to Cortigent of any litigation or other proceeding, regardless of its merit, even if resolved in its favor, could be substantial. Some of Cortigent's competitors may be able to bear the costs of such litigation or proceedings more effectively than Cortigent should they have greater financial resources. Uncertainties resulting from the initiation and continuation of patent litigation or other proceedings could have a material adverse effect on Cortigent's ability to compete in the marketplace. Intellectual property litigation and other proceedings may, regardless of their merit, also absorb significant management time and employee resources.

***If Cortigent fails to comply with its obligations in the agreements under which it licenses development or commercialization rights to products or technology from third parties, it could lose license rights that are important to its business.***

Cortigent holds an exclusive license from the Doheny Eye Institute (DEI) to control commercialization and enforcement of intellectual property co-owned between the parties relating to the Argus II visual prosthesis and Orion cortical visual prosthesis. This license imposes various commercialization, milestone payment, profit sharing, insurance, and other obligations on Cortigent. If Cortigent fails to comply with any material obligations, DEI will have the right to terminate the license, which covers part of the Argus and Orion systems. The existing or future patents to which Cortigent has rights based on its agreements with DEI may be too narrow to prevent third parties from developing or designing around these patents. Additionally, Cortigent may lose its exclusive rights to the patents and patent applications it co-owns with DEI in the event of a breach or termination of the license agreement. The license expires with the expiration of the last of the licensed patents on August 8, 2033. The royalty in the agreement is 0.5% of the patented portion of Argus II system sales. Cortigent licenses DEI's interest in the patents to maintain its exclusive use on that intellectual property. Should the license terminate, Cortigent retains the right to utilize the intellectual property but may not be able to prevent others from doing so, in which case Cortigent may lose a competitive advantage.

***If Cortigent is unable to protect the intellectual property used in its products, others may be able to copy its innovations which may impair its ability to compete effectively in Cortigent's markets.***

The enforcement of Cortigent's patents involves complex legal and scientific questions and can be uncertain. As of December 1, 2022, Cortigent has rights in 253 issued U.S. patents, 35 issued European patents (nationalized in Great Britain, France, and Germany), seven pending U.S. patent applications, 11 pending European patent applications, seven issued U.S. design patents and six issued European design registrations (with six corresponding issued British design registrations). Cortigent's patent applications may be challenged or fail to result in issued patents and its existing or future patents and registrations may be too narrow to prevent third parties from developing or designing around its intellectual property and in that event, it may lose competitive advantage and its business may suffer. Further, the patent applications that Cortigent has filed may fail to result in issued patents. The claims may need to be amended. Even after amendment, a patent may not issue and in that event, it may not obtain the exclusive use of the intellectual property that it seeks and may lose competitive advantage which could result in harm to Cortigent's business.

As noted above, our patent estate encompasses various forms of patent protection in the United States, Great Britain, and Europe. Depending on the jurisdiction and the type of patent protections available, we have sought to obtain "invention patents," "design patents," and design registrations. In all instances, the issued patent/registration may lapse or expire prematurely, if renewal/maintenance fees are not timely paid.

Although the patentability requirements vary among different jurisdictions, invention patents (or utility patents as referred to in the U.S.) generally protect something new, useful, and non-obvious and undergo an extensive examination prior to issuance. The base term of a U.S. utility patent is 20 years from the filing date of the earliest-filed non-provisional patent application from which the patent claims priority. Europe also recognizes a patent term of 20 years from the priority date for invention patents. Our U.S. patents are estimated to expire between January 2023 and October 2037. Our European patents have been nationalized in France, Great Britain, and Germany and are estimated to expire between April 2023 and December 2036. These patent term estimates are based on issued patents, which may be challenged, invalidated, or circumvented by competitors. The patent expiration estimates do not include any term adjustments or supplemental protection certificates that may be obtained in the future.

U.S. patent laws provide for the granting of design patents to any person who has invented any new and non-obvious ornamental design for an article of manufacture. A design patent protects only the appearance of an article, but not its structural or functional features. A design patent issued prior to May 13, 2015 has a term of 14 years from grant, and no fees are necessary to maintain a design patent in force. Effective May 13, 2015, the patent term has been revised to 15 years from the date of patent grant for design patents issuing from both national design applications and international design applications designating the United States. We have seven granted U.S. design patents, which expire between September 2023 and November 2031.

In Europe, the European Union Intellectual Property Office (EUIPO) provides registration of Community designs. For Community design protection, a design must be new and have an individual character. A Registered Community Design (RCD) grants exclusive rights covering the outward appearance of a product, or part of it, resulting from the features of, in particular, the lines, contours, colors, shape, texture and/or materials of the product itself and/or its ornamentation. An RCD is initially valid for five-years from the filing date and can be renewed for five-year periods, up to a maximum of 25 years. Community designs use one single registration procedure, providing holders with strong and uniform protection in the 27 Member States of the European Union. As of January 1, 2021, the UK was no longer subject to the EUIPO design regime. For an EU RCD issued and active as of December 31, 2020, a corresponding UK registered design right was automatically created. The application filing dates of all impacted EU RCDs will be maintained for each cloned UK design right, and the corresponding UK design right will remain active and in force, subject to the same renewal deadlines and ultimate term of protection as the corresponding EU RCD. However, moving forward, each UK design registration will be treated as if it had been applied for and originally registered under UK law, and renewal payments will be separately required for each cloned UK registration. We have 6 European design registrations, with 6 corresponding ('cloned') British design registrations, that expire between December 2032 and November 2040.

***If we do not obtain patent term extension for any product candidates we may develop, our business may be materially harmed.***

Patents have a limited lifespan. Due to the amount of time required for the development, testing and regulatory review of new product candidates, patents protecting such candidates might expire before or shortly after such candidates are commercialized. As a result, our owned and licensed patent portfolio may not provide us with sufficient rights to exclude others from commercializing products similar or identical to ours. In the United States, if all maintenance fees are timely paid, the natural expiration of a patent is generally 20 years from its earliest U.S. filing date. Various extensions may be available, but the life of a patent, and the protection it affords, is limited. Once the patent life has expired for a product, we may be open to competition from competitive products. At the time of the expiration of the relevant patents, the underlying technology covered by such patents can be used by any third party, including competitors. Although the patent term extensions under the Drug Price Competition and Patent Term Restoration Action of 1984 (the "Hatch-Waxman Act") in the United States may be available to extend the patent term, we cannot provide any assurances that any such patent term extension will be obtained and, if so, for how long.

Depending upon the timing, duration, and specifics of any FDA marketing approval of any product candidates we may develop, one or more of our U.S. patents may be eligible for limited patent term extension under the Hatch-Waxman Act. The Hatch-Waxman Act permits a patent term extension of up to five years as compensation for patent term lost during the FDA regulatory review process. A patent term extension cannot extend the remaining term of a patent beyond a total of 14 years from the date of product approval, only one patent may be extended, and only those claims covering the approved product, a method for using it, or a method for manufacturing it may be extended. Medical device patents eligible for patent term extension are those covering medical devices approved under Section 515 of the Federal Food, Drug, and Cosmetic Act ("FFDCA"), the so called "Class III" medical devices. However, we may not be granted an extension because of, for example, failing to exercise due diligence during the testing phase or regulatory review process, failing to apply within applicable deadlines, failing to apply prior to expiration of relevant patents, or otherwise failing to satisfy applicable requirements. Moreover, the applicable period or scope of patent protection afforded could be less than we request. If we are unable to obtain a patent term extension or term of any such extension is less than we request, our competitors may obtain approval of competing products following our patent expiration, and our business, financial condition, results of operations, and prospects could be materially harmed.

***Third-party claims of intellectual property infringement may prevent or delay Cortigent's development and commercialization activities for Orion.***

Although Cortigent is not currently aware of any litigation or other proceedings or third-party claims of intellectual property infringement related to the Argus II or Orion systems, the medical device industry is characterized by many litigation cases regarding patents and other intellectual property rights. Other parties may in the future allege that Cortigent's activities infringe their patents or that Cortigent is employing their proprietary technology without authorization. Cortigent may not have identified all the patents, patent applications or published literature that affect Cortigent's business either by blocking its ability to commercialize its product, by preventing the patentability of one or more aspects of its products or those of its licensors, or by covering the same or similar technologies that may affect its ability to market its product.

In addition, even in the absence of litigation, Cortigent may need to obtain licenses from third parties to advance Cortigent's research or allow commercialization of its product candidates, and it has done so from time to time. Cortigent may fail to obtain future licenses at a reasonable cost or on reasonable terms, if at all. In that event, Cortigent may be unable to further develop and commercialize one or more of its product candidates, which could harm its business significantly.

***Cortigent may become involved in future lawsuits to protect or enforce its patents or the patents of its licensors, which could be expensive, time consuming and unsuccessful.***

Competitors may infringe Cortigent's patents or the patents of its licensors. To counter infringement or unauthorized use, Cortigent may file infringement claims, which can be expensive and time consuming. Further, in an infringement proceeding, a court may decide that a patent of ours or of Cortigent's licensors is not valid or is unenforceable or may refuse to stop the other party from using the technology at issue on the grounds that Cortigent's patents do not cover the technology in question. An adverse result in any litigation or defense proceedings could put one or more of Cortigent's patents at risk of being invalidated or interpreted narrowly and could put Cortigent's patent applications at risk of not issuing.

The U.S. Patent and Trademark Office (USPTO) may initiate interference or derivation proceedings to determine the priority of inventions described in or otherwise affecting Cortigent's patents and patent applications or those of Cortigent's collaborators or licensors. An unfavorable outcome could require Cortigent to cease using the technology or to attempt to license rights to it from the prevailing party. Cortigent's business could be harmed if a prevailing party does not offer it a license on terms that are acceptable to Cortigent. Such proceedings may fail and, even if successful, may result in substantial costs and distraction of Cortigent's management and other employees.

***Changes in patent laws or patent jurisprudence could diminish the value of patents in general, thereby impairing our ability to protect our product candidates.***

As is the case with other medical device companies, our success is heavily dependent on intellectual property, particularly patents. Obtaining and enforcing patents in the medical device industries involve both technological complexity and legal complexity. Therefore, obtaining and enforcing medical device patents is costly, time-consuming, and inherently uncertain. In addition, the America Invents Act (AIA) which was passed in September 2011, resulted in significant changes to the U.S. patent system.

An important change introduced by the AIA is that, as of March 16, 2013, the United States transitioned to a "first-to-file" system for deciding which party should be granted a patent when two or more patent applications are filed by different parties claiming the same invention. A third party that files a patent application in the USPTO after that date but before us could therefore be awarded a patent covering an invention of ours even if we made the invention before it was made by the third party. This will require us to be cognizant going forward of the time from invention to filing of a patent application, but circumstances could prevent us from promptly filing patent applications on our inventions.

Among some of the other changes introduced by the AIA are changes that limit where a patentee may file a patent infringement suit and provide opportunities for third parties to challenge any issued patent with the USPTO. This applies to all our U.S. patents, even those issued before March 16, 2013. Because of a lower evidentiary standard in USPTO proceedings compared to the evidentiary standard in U.S. federal courts necessary to invalidate a patent claim, a third party could potentially provide evidence in a USPTO proceeding sufficient for the USPTO to hold a claim invalid even though the same evidence would be insufficient to invalidate the claim if first presented in a district court action.

Accordingly, a third party may attempt to use the USPTO procedures to invalidate our patent claims that would not have been invalidated if first challenged by the third party as a defendant in a district court action. The AIA and its implementation could increase the uncertainties and costs surrounding the prosecution of our or our licensors' patent applications and the enforcement or defense of our or our licensors' issued patents.

Additionally, the U.S. Supreme Court has ruled on several patent cases in recent years either narrowing the scope of patent protection available in certain circumstances or weakening the rights of patent owners in certain situations. In addition to increasing uncertainty regarding our ability to obtain patents in the future, this combination of events has created uncertainty with respect to the value of patents, once obtained. Depending on decisions by Congress, the federal courts and the USPTO, the laws and regulations governing patents could change in unpredictable ways that could weaken our ability to obtain new patents or to enforce our existing patents and patents that we might obtain in the future. Similarly, the complexity and uncertainty of European patent laws has also increased in recent years. In addition, the European patent system is relatively stringent in the type of amendments that are allowed during prosecution. Complying with these laws and regulations could limit our ability to obtain new patents in the future that may be important for our business.

***Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.***

Periodic maintenance and annuity fees on any issued patent are due to be paid to the USPTO and European and other patent agencies over the lifetime of a patent. In addition, the USPTO and European and other patent agencies require compliance with several procedural, documentary, fee payment and other similar provisions during the patent application process. While an inadvertent failure to make payment of such fees or to comply with such provisions can in many cases be cured by payment of a late fee or by other means in accordance with the applicable rules, there are situations in which such noncompliance will result in the abandonment or lapse of the patent or patent application, and the partial or complete loss of patent rights in the relevant jurisdiction. Non-compliance events that could result in abandonment or lapse of a patent or patent application include failure to respond to official actions within prescribed time limits, non-payment of fees and failure to properly legalize and submit formal documents within prescribed time limits. If we or our licensors fail to maintain the patents and patent applications covering our product candidates or if we or our licensors otherwise allow our patents or patent applications to be abandoned or lapse, our competitors might be able to enter the market, which would hurt our competitive position and could impair our ability to successfully commercialize our product candidates in any indication for which they are approved.

***We enjoy only limited geographical protection with respect to certain patents and we may not be able to protect our intellectual property rights throughout the world.***

Filing, prosecuting, and defending patents covering our product candidates in all countries throughout the world would be prohibitively expensive. Competitors may use our and our licensors' technologies in jurisdictions where we have not obtained patent protection to develop their own products and, further, may export otherwise infringing products to territories where we and our licensors have patent protection, but enforcement is not as strong as that in the United States or the EU. These products may compete with our product candidates, and our and our licensors' patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.

In addition, we may decide to abandon national and regional patent applications before grant. The grant proceeding of each national or regional patent is an independent proceeding which may lead to situations in which applications might in some jurisdictions be refused by the relevant patent offices, while granted by others. For example, unlike other countries, China has a heightened requirement for patentability, and specifically requires a detailed description of medical uses of a claimed drug. Furthermore, generic drug manufacturers or other competitors may challenge the scope, validity, or enforceability of our or our licensors' patents, requiring us or our licensors to engage in complex, lengthy and costly litigation or other proceedings. Generic drug manufacturers may develop, seek approval for and launch generic versions of our products. It is also quite common that depending on the country, the scope of patent protection may vary for the same product candidate or technology.

The laws of some jurisdictions do not protect intellectual property rights to the same extent as the laws or rules and regulations in the United States and the EU, and many companies have encountered significant difficulties in protecting and defending such rights in such jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents, trade secrets and other intellectual property protection, which could make it difficult for us to stop the infringement of our patents or marketing of competing products in violation of our proprietary rights generally. Proceedings to enforce our patent rights in other jurisdictions, whether successful or not, could result in substantial costs and divert our efforts and attention from other aspects of our business, could put our patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not issuing, and could provoke third parties to assert claims against us.

We may not prevail in any lawsuits that we initiate, and the damages or other remedies awarded, if any, may not be commercially meaningful. Accordingly, our efforts to enforce our intellectual property rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that we develop or license. Furthermore, while we intend to protect our intellectual property rights in our expected significant markets, we cannot ensure that we will be able to initiate or maintain similar efforts in all jurisdictions in which we may wish to market our product candidates. Accordingly, our efforts to protect our intellectual property rights in such countries may be inadequate, which may have an adverse effect on our ability to successfully commercialize our product candidates in all our expected significant foreign markets. If we or our licensors encounter difficulties in protecting, or are otherwise precluded from effectively protecting, the intellectual property rights important for our business in such jurisdictions, the value of these rights may be diminished, and we may face additional competition from others in those jurisdictions.

Some countries also have compulsory licensing laws under which a patent owner may be compelled to grant licenses to third parties. In addition, some countries limit the enforceability of patents against government agencies or government contractors. In these countries, the patent owner may have limited remedies, which could materially diminish the value of such patent. If we or any of our licensors is forced to grant a license to third parties with respect to any patents relevant to our business, our competitive position may be impaired. Cortigent may not be able to prevent, alone or with Cortigent's licensors, misappropriation of Cortigent's proprietary rights, particularly in countries where the laws may not protect those rights as fully as in the U.S.

***We may be subject to damages resulting from claims that we or our employees have wrongfully used or disclosed alleged trade secrets of our competitors or are in breach of non-competition or non-solicitation agreements with our competitors.***

We could in the future be subject to claims that we or our employees have inadvertently or otherwise used or disclosed alleged trade secrets or other proprietary information of former employers, competitors, or other third parties. Although we endeavor to ensure that our employees and consultants do not use the intellectual property, proprietary information, know-how or trade secrets of others in their work for us, we may in the future be subject to claims that we caused an employee to breach the terms of his or her non-competition or non-solicitation agreement, or that we or these individuals have, inadvertently or otherwise, used or disclosed the alleged trade secrets or other proprietary information of a former employer or competitor. Litigation may be necessary to defend against these claims. Even if we are successful in defending against these claims, litigation could result in substantial costs and could be a distraction to management. If our defense to those claims fails, in addition to paying monetary damages, a court could prohibit us from using technologies or features that are essential to our product, if such technologies or features are found to incorporate or be derived from the trade secrets or other proprietary information of the former employers or other third parties. An inability to incorporate technologies or features that are important or essential to our product may prevent us from selling our product. In addition, we may lose valuable intellectual property rights or personnel. Moreover, any such litigation or the threat thereof may adversely affect our ability to hire employees or contract with independent sales representatives. A loss of key personnel or their work product could hamper or prevent our ability to commercialize our product.

***We may rely on government funding and collaboration with government entities for our product development, which adds uncertainty to our research and development efforts and may impose requirements that increase the costs of development, commercialization and production of any programs developed under those government-funded programs.***

Because we anticipate the resources necessary to develop our product candidates will be substantial, we explored, have been granted, and may continue to explore funding and development collaboration opportunities with the U.S. government and its agencies. For example, we have received funding from the National Institutes of Health (NIH). We have no control or input over whether an application for grant funding or any other funding will be accepted or approved, in full or in part, and we cannot provide investors with any assurances that we will receive such funding.

Contracts and grants funded by the U.S. government and its agencies, contain provisions that reflect the government's substantial rights and remedies, many of which are not typically found in commercial contracts, including powers of the government to:

● reduce or modify the government's obligations under such agreements without the consent of the other party;

● claim rights, including Intellectual Property rights, in products and data developed under such agreements;

● audit contract-related costs and fees, including allocated indirect costs;

● suspend the contractor or grantee from receiving new contracts pending resolution of alleged violations of procurement laws or regulations;

● impose U.S. manufacturing requirements for products that embody inventions conceived or first reduced to practice under such agreements;

● suspend or debar the contractor or grantee from doing future business with the government;

● control and potentially prohibit the export of products;

● pursue criminal or civil remedies under the False Claims Act, False Statements Act, and similar remedy provisions specific to government agreements; and

● limit the government's financial liability to amounts appropriated by the U.S. Congress on a fiscal-year basis, thereby leaving some uncertainty about the future availability of funding for a program even after it has been funded for an initial period.

If we receive such grants or agreements, we may not have the right to prohibit the U.S. government from using certain technologies developed by us, and we may not be able to prohibit third parties, including our competitors, from using those technologies in providing products and services to the U.S. government. Further, under such agreements we could be subject to obligations to, and the rights of, the U.S. government set forth in the Bayh-Dole Act of 1980, meaning the U.S. government may have rights in certain inventions developed under these government-funded agreements, including a non-exclusive, non-transferable, irrevocable worldwide license to use inventions for any governmental purpose. In addition, the U.S. government could have the right to require us to grant exclusive, partially exclusive, or nonexclusive licenses to any of these inventions to a third party if it determines that: (i) adequate steps have not been taken to commercialize the invention; (ii) government action is necessary to meet public health or safety needs; or (iii) government action is necessary to meet requirements for public use under federal regulations, also referred to as "march-in rights." Although the U.S. government's historic restraint with respect to these rights indicates they are unlikely to be used, any exercise of the march-in rights could harm our competitive position, business, financial condition, results of operations, and prospects. In the event we would be subject to the U.S. government's exercise of such march-in rights, we may receive compensation that is deemed reasonable by the U.S. government in its sole discretion, which may be less than what we might be able to obtain in the open market.

Additionally, the U.S. government requires that any products embodying any invention generated using U.S. government funding be manufactured substantially in the United States. The manufacturing preference requirement can be waived if the owner of the intellectual property can show that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential licensees that would be likely to manufacture substantially in the United States, or that domestic manufacture is not commercially feasible. This preference for U.S. manufacturers may limit our ability to contract with non-U.S. manufacturers for products covered by such intellectual property.

Although we may need to comply with some of these obligations, not all of the aforementioned obligations may be applicable to us unless and only to the extent that we receive a government grant, contract or other agreement. However, as an organization, we are relatively new to government contracting and new to the regulatory compliance obligations that such contracting entails. If we were to fail to maintain compliance with those obligations, we may be subject to potential liability and to termination of our contracts, which may have a materially adverse effect on our ability to develop our vaccine product candidates.

***Cortigent is increasingly dependent on sophisticated information technology systems, including systems from third parties, and if it fails to properly maintain the integrity of Cortigent's data or if Cortigent's products do not operate as intended, Cortigent's business could be materially and adversely affected*.**

Cortigent is increasingly dependent on sophisticated information technology systems for Cortigent's products and infrastructure, and it relies on these information technology systems, including technology from third-party vendors, to process, transmit and store electronic information in Cortigent's day-to-day operations. We use industry standard security measures to protect our IT infrastructure. We hold no customer social security numbers nor any or personal financial information of customers. While we hold medical information of customers, we follow all Health Insurance Portability and Accountability Act (HIPAA) and Health Information Technology for Economic and Clinical Health (HITECH) Act guidelines safeguarding customer medical information. Cortigent continuously monitors, upgrades, and expands the systems it operates to improve information systems capabilities. Cortigent's information systems require an ongoing commitment of significant resources to maintain, protect, and enhance existing systems and develop or contract new systems to keep pace with continuing changes in information processing technology, evolving systems and regulatory standards, and the increasing need to protect patient and customer information. In addition, third parties may attempt to hack into Cortigent's products or systems and may obtain data relating to patients with Cortigent's products or proprietary information. If Cortigent fails to maintain or protect Cortigent's information systems and data integrity with cyber security effectively, it could have difficulty attracting patients, have problems in determining product cost estimates and establishing appropriate pricing, have difficulty preventing, detecting, and controlling fraud, have disputes with customers, physicians, and other health care professionals, have regulatory sanctions, fines, or penalties imposed, have increases in operating expenses, incur expenses or lose revenue as a result of a data privacy breach, or suffer other adverse consequences. There can be no assurance that Cortigent's process of upgrading and expanding Cortigent's information systems capabilities, protecting and enhancing Cortigent's systems including cyber security methods, and developing new systems to keep pace with continuing changes in information processing technology will be successful or that additional systems issues will not arise in the future. Cortigent's products contain hardware and software protections which are intended to prevent unauthorized access or control of Cortigent's implanted device. However, if an unauthorized user breaches Cortigent's controls and gains access to one of Cortigent's devices implanted in a patient, serious harm, injury and/or death may result. Any significant breakdown, intrusion, interruption, corruption, or destruction of these systems, as well as any data breaches, could have a material adverse effect on Cortigent's business.

***Product liability lawsuits could divert Cortigent's resources, result in substantial liabilities and reduce the commercial potential of Cortigent's products.***

Cortigent faces a risk of product liability claims arising from the prosthesis being implanted, and it is possible that it may be held liable for injuries of patients who receive Cortigent's product. These lawsuits may divert Cortigent's management from pursuing Cortigent's business strategy and may be costly to defend. In addition, if Cortigent is held liable in any of these lawsuits, it may incur substantial liabilities and may be forced to limit or forego further commercialization of one or more of Cortigent's products. Cortigent maintains no product liability insurance relating to Cortigent's clinical trials and commercial sales, and while it intends to obtain such coverage prior to the closing of the offering, may not be able to obtain or maintain sufficient insurance coverage at an acceptable cost or otherwise to protect against potential product liability claims, which could prevent or inhibit the commercial production and sale of Cortigent's products. If the use of Cortigent's products harm or are alleged to harm people, it may be subject to costly and damaging product liability claims that exceed Cortigent's policy limits and cause Cortigent significant losses that could seriously harm Cortigent's financial condition or reputation.

***Legislative or regulatory reform of the health care system in the U.S. and foreign jurisdictions may adversely impact Cortigent's business, operations, or financial results.***

Cortigent's industry is highly regulated and changes in law may adversely impact Cortigent's business, operations, or financial results. In March 2010, the Patient Protection and Affordable Care Act, and a related reconciliation bill were signed into law. This legislation changes the current system of healthcare insurance and benefits intended to broaden coverage and control costs. The law also contains provisions that will affect companies in the medical device industry and other healthcare related industries by imposing additional costs and changes to business practices.

Moreover, in some foreign countries, including countries in Europe and Canada, the pricing of approved medical devices is subject to governmental control. In these countries, pricing negotiations with governmental authorities can take 12 months or longer after the receipt of regulatory approval and product launch. To obtain reimbursement or pricing approval in some countries, Cortigent may be required to conduct a clinical trial that compares the cost-effectiveness of Cortigent's product candidate to other available therapies. Cortigent's business could be materially harmed if reimbursement of Cortigent's products is unavailable or limited in scope or amount or if pricing is set at unsatisfactory levels.

Cortigent cannot predict what healthcare reform initiatives may be adopted in the future. Further federal and state legislative and regulatory developments appear likely, and it expects ongoing initiatives in the U.S. and Europe. These reforms could have an adverse effect on Cortigent's ability to obtain timely regulatory approval for new products and on anticipated revenues from product candidates, both of which may affect Cortigent's overall financial condition.

***Cortigent is a "non-accelerated filer" and a "smaller reporting company" for SEC filing purposes and it cannot be certain if the applicable reduced disclosure requirements will make Cortigent's common stock less attractive to investors.***

For so long as Cortigent remains a "non-accelerated filer" it may take advantage of certain exemptions from various requirements that are applicable to public companies that are not "non-accelerated filers," including not being required to comply with the independent auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in Cortigent's periodic reports and proxy statements, exemptions from the requirements of holding a nonbinding advisory vote on executive compensation, and stockholder approval of any golden parachute payments not previously approved. Investors may find Cortigent's common stock less attractive because Cortigent relies on these exemptions. If some investors find Cortigent's common stock less attractive as a result, there may be a less active trading market for Cortigent's common stock, and Cortigent's stock price may be more volatile or may decline.

In addition, Section 107 of the JOBS Act also provides that a "smaller reporting company" can take advantage of an extended transition period for complying with new or revised accounting standards. However, Cortigent chose to "opt out" of this extended transition period, and as a result, it intends to comply with new or revised accounting standards on the relevant dates that adoption of those standards may be required. Cortigent's decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable.

**Risks Relating to Cortigent's Financial Results and Need for Financing**

***Our financial statements have been prepared on a going concern basis and our financial condition creates doubt as to whether we will be able to continue as a going concern.***

Our financial statements have been presented on the basis that our business is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We are subject to the risks and uncertainties associated with a business with no revenue that is developing novel medical devices, including limitations on our operating capital resources. We have incurred recurring operating losses and negative operating cash flows since inception, and we expect to continue to incur operating losses and negative operating cash flows for the foreseeable future. Our future operations are dependent upon successful development and commercialization of our products, attaining regulatory approvals, the outcomes of lengthy and costly patient studies, the identification and successful completion of equity or debt financing and the achievement of profitable operations at an indeterminate time in the future. No assurance can be given that we will be successful in completing any of these endeavors or in achieving or maintaining profitability. In March 2023 the Company and Vivani have entered into a Transition Funding, Support and Services agreement by which Vivani has advanced and will continue to advance funds and provide or cause to be provided to the Company the services and funding that will cover salaries and related costs, rent and other overhead in order to permit the Company to operate in substantially the same manner in which business operations of the Company were previously operated by Second Sight, prior to the formation of Cortigent, which obligations will continue, in the case of the funding obligations, until the earlier of December 31, 2024 or receipt of proceeds from this offering. See "Certain Relationships and Related Party Transactions." Our auditors have not referenced any going concern language within their opinion and our financial statements do not give effect to any adjustments relating to the carrying values and classification of assets and liabilities that would be necessary should we be unable to continue as a going concern.

***Fluctuations in Cortigent's quarterly operating results and negative cash flows could adversely affect the price of Cortigent's common stock.***

Cortigent's operating results will be affected by numerous factors such as:

● the absence of revenue from product sales as a result of refocusing Cortigent's business and resources to Orion II and to stroke rehabilitation as the production of the Argus II system was discontinued and Cortigent's marketing and implants of Argus II were eliminated;

● the status of Cortigent's preclinical and clinical development programs;

● continued clinical results from Cortigent's Early Feasibility Study (EFS) of six subjects currently under way at UCLA and Baylor;

● the filing and acceptance of an Investigational Device Exemption (IDE) with the FDA to initiate a larger pivotal trial for regulatory approval;

● clinical results from conducting Cortigent's larger pivotal trial(s):

● three of Cortigent's six-patient EFS study have had the devices explanted which could cause Cortigent to have difficulty recruiting future subjects for implantation;

● Cortigent's ability to obtain regulatory approval of the Orion, or the stroke recovery system, or other neurostimulation systems in the U.S. and other jurisdictions;

● the emergence of products that compete with Cortigent's product candidates;

● Cortigent's ability to leverage Argus II technology for cortical stimulation using Orion;

● the status of Cortigent's preclinical and clinical development programs, variations in the level of expenses related to Cortigent's existing product candidates or preclinical and clinical development programs;

● execution of collaborative, licensing or other arrangements, and the timing of payments received or made under those arrangements;

● any intellectual property infringement lawsuits to which Cortigent may become a party; and

● Cortigent's ability to obtain reimbursement from government or private payors at levels Cortigent deems adequate to sustain Cortigent's operations.

<br> If Cortigent's quarterly operating results fall below the expectations of investors or securities analysts, or if it experiences delays in reaching commercialization of the Orion or other neurostimulation systems being developed, the price of Cortigent's common stock could decline substantially. Any quarterly fluctuations in Cortigent's operating results and cash flows may cause the price of Cortigent's stock to fluctuate substantially. Cortigent believes that, in the near term, quarterly comparisons of Cortigent's financial results are not necessarily meaningful and should not be relied upon as an indication of Cortigent's future performance.

***Cortigent will need substantial additional capital to support Cortigent's operations and growth. Additional capital may be difficult to obtain, restricting Cortigent's operations and resulting in additional dilution to Cortigent's stockholders.***

Cortigent's business requires substantial additional capital for implementation of Cortigent's long term business plan. Cortigent and Vivani have entered into a Transition Funding, Support and Services Agreement in March 2023 by which Vivani will advance funds and provide or cause to be provided the funding and support services that can sustain Cortigent's operations from January 2023, until the earlier of December 31, 2024 or receipt of proceeds from this offering. If the net proceeds of this offering are not adequate to permit the listing of our common stock on the Nasdaq Capital Market then Vivani has agreed to advance or arrange for the advancement of one or more additional payments to us which may be made before, on or after the closing of this offering to the extent necessary to permit the Nasdaq listing. If any such additional payments are made we will repay these additional amounts to Vivani upon such other terms and conditions that we may mutually agree upon and such obligations may be evidenced by one or more instruments to be negotiated and agreed upon by us and Vivani. See "Certain Relationships and Related Party Transactions." The amount of funds needed for Cortigent's business following the termination of these support arrangements will be determined by many factors, some of which are beyond Cortigent's control, and Cortigent may need funds sooner than currently anticipated. These factors include:

● the amount of Cortigent's future operating losses;

● ongoing commercialization planning for our neurostimulation systems;

● the amount of Cortigent's research and development, including research and development for the Orion visual prosthesis, marketing, and general and administrative expenses; and

● regulatory changes and technological developments in Cortigent's markets.

If Cortigent raises additional funds by selling shares of Cortigent's capital stock, the ownership interest of Cortigent's current stockholder will be diluted. If Cortigent is unable to obtain additional funds on a timely basis or on terms favorable to Cortigent, it may be required to cease or reduce certain research and development projects, to sell some or all of Cortigent's technology or assets or business units or to merge all or a portion of Cortigent's business with another entity.

**Risks Related to Cortigent's Business and Industry**

***Cortigent has incurred operating losses since inception and likely will continue to incur losses for the foreseeable future.***

Cortigent has had a history of operating losses and it expects that operating losses will continue into the near term. Although Cortigent has had sales of the Argus II product, these limited sales were insufficient to cover Cortigent's operating expenses. Given the limited addressable market of Argus II, Cortigent no longer markets the Argus II and has focused all of Cortigent's resources on the development of Orion, our new system being developed for stroke recovery, and exploring other applications for our core neurostimulation technology. Cortigent's ability to generate positive cash flow will hinge on Cortigent's ability to develop our novel neurostimulation medical device systems, correctly price Cortigent's products to Cortigent's markets, and obtain government and private insurance reimbursement. As of December 31, 2022, Cortigent's net parent investment was $44.6 million. Cortigent can give no assurance that it will be profitable even if it successfully commercializes Cortigent's products. Failure to become and remain profitable may adversely affect the market price of Cortigent's common stock and Cortigent's ability to raise capital and continue operations.

***Cortigent's business is subject to international economic, political, and other risks that could negatively affect Cortigent's results of operations or financial position.***

Cortigent anticipates that revenue from Europe and other countries outside the U.S. may be material to Cortigent's future long-term success. Accordingly, Cortigent's operations are subject to risks associated with doing business internationally, including:

● currency exchange variations;

● extended collection timelines for accounts receivable;

● greater working capital requirements;

● multiple legal frameworks and unexpected changes in legal and regulatory requirements;

● the need to ensure compliance with the numerous regulatory and legal requirements applicable to Cortigent's business in each of these jurisdictions and to maintain an effective compliance program to ensure compliance with these requirements;

● political changes in the foreign governments impacting health policy and trade;

● tariffs, export restrictions, trade barriers and other regulatory or contractual limitations that could impact Cortigent's ability to sell or develop Cortigent's products in certain foreign markets;

● trade laws and business practices favoring local competition; and

● adverse economic conditions, including the stability and solvency of business financial markets, financial institutions and sovereign nations and the healthcare expenditure of domestic or foreign nations.

The realization of any of these or other risks associated with operating in Europe or other non-U.S. countries could have a material adverse effect on Cortigent's business, results of operations or financial condition.

***Cortigent is subject to stringent domestic and foreign medical device regulation and any unfavorable regulatory action may materially and adversely affect Cortigent's financial condition and business operations.***

Cortigent's products, development activities and manufacturing processes are subject to extensive and rigorous regulation by numerous government agencies, including the FDA and comparable foreign agencies. To varying degrees, each of these agencies monitors and enforces Cortigent's compliance with laws and regulations governing the development, testing, manufacturing, labeling, marketing, distribution, and the safety and effectiveness of Cortigent's medical devices. The process of obtaining marketing approval or clearance from the FDA and comparable foreign bodies for new products, or for enhancements, expansion of the indications or modifications to existing products, could:

● take a significant, indeterminate amount of time;

● result in product shortages due to regulatory delays;

● require the expenditure of substantial resources;

● involve rigorous pre-clinical and clinical testing, and possibly post-market surveillance;

● involve modifications, repairs, or replacements of Cortigent's products;

● require design changes of Cortigent's products;

● result in limitations on the indicated uses of Cortigent's products; and

● result in Cortigent's never being granted the regulatory approval Cortigent seeks.

Any of these occurrences that Cortigent might experience will cause Cortigent's operations to suffer, harm Cortigent's competitive standing and result in further losses that adversely affect Cortigent's financial condition.

Cortigent has ongoing responsibilities under FDA and international regulations, both before and after a product is commercially released. For example, Cortigent is required to comply with the FDA's Quality System Regulation (QSR), which mandates that manufacturers of medical devices adhere to certain quality assurance requirements pertaining, among other things, to validation of manufacturing processes, controls for purchasing product components, and documentation practices. As another example, the Medical Device Reporting regulation requires Cortigent to provide information to the FDA whenever there is evidence that reasonably suggests that a device may have caused or contributed to a death or serious injury, or that a malfunction occurred which would be likely to cause or contribute to a death or serious injury upon recurrence. Compliance with applicable regulatory requirements is subject to continual review and is monitored rigorously through periodic inspections by the FDA. If the FDA were to conclude that Cortigent is not in compliance with applicable laws or regulations, or that any of Cortigent's medical devices are ineffective or pose an unreasonable health risk, the FDA could ban such medical devices, detain or seize such medical devices, order a recall, repair, replacement, or refund of such devices, or require Cortigent to notify health professionals and others that the devices present unreasonable risks of substantial harm to the public health. The FDA has been increasing its scrutiny of the medical device industry and the government is expected to continue to scrutinize the industry closely with inspections and possibly enforcement actions by the FDA or other agencies. Additionally, the FDA may restrict manufacturing and impose other operating restrictions, enjoin and restrain certain violations of applicable law pertaining to medical devices and assess civil or criminal penalties against Cortigent's officers, employees, or Cortigent. Any adverse regulatory action, depending on its magnitude, may restrict Cortigent from effectively manufacturing, marketing, and selling Cortigent's products. In addition, negative publicity and product liability claims resulting from any adverse regulatory action could have a material adverse effect on Cortigent's financial condition and results of operations.

The number and type of preclinical and clinical tests that will be required for regulatory approval of our specific novel and complex devices are highly uncertain and may vary or change depending on various factors, including the disease or condition to be treated, the jurisdiction in which Cortigent is seeking approval and the regulations applicable to that particular medical device. Regulatory agencies, including those in the U.S., Canada, Europe, and other countries where medical devices are regulated, can delay, limit or deny approval of a product for many reasons. For example,

● a medical device may not be safe or effective;

● regulatory agencies may interpret data from preclinical and clinical testing differently than Cortigent does;

● regulatory agencies may not approve Cortigent's manufacturing processes;

● regulatory agencies may conclude that Cortigent's device does not meet quality standards for durability, long-term reliability, biocompatibility, electromagnetic compatibility, electrical safety; and

● regulatory agencies may change their approval policies or adopt new regulations.

The FDA may make requests or suggestions regarding conduct of Cortigent's clinical trials, resulting in an increased risk of difficulties or delays in obtaining regulatory approval in the U.S. Any of these occurrences could prove materially harmful to Cortigent's operations and business.

***Any revenue from sales of Orion or our other neurostimulation systems being developed will be dependent upon the pricing and reimbursement guidelines adopted in each country, and if pricing and reimbursement levels are inadequate to achieve profitability Cortigent's operations will suffer.***

Cortigent's financial success is dependent on Cortigent's ability to price Cortigent's products in a manner acceptable to government and private payers while still maintaining Cortigent's profit margins. Numerous factors that may be beyond Cortigent's control may ultimately impact Cortigent's pricing of our products and determine whether Cortigent is able to obtain reimbursement or reimbursement at adequate levels from governmental programs and private insurance. If Cortigent is unable to obtain reimbursement or Cortigent's products are not adequately reimbursed, it will experience reduced sales, Cortigent's revenues likely will be adversely affected, and it may not become profitable.

Obtaining reimbursement approvals is time consuming, requires substantial management attention, and is expensive. Cortigent's business will be materially adversely affected if Cortigent does not receive approval for reimbursement of our products under government programs and from private insurers on a timely or satisfactory basis. Limitations on coverage could also be imposed at the local Medicare Administrative Contractor level or by fiscal intermediaries in the U.S., and by regional or national funding agencies in Europe. Cortigent's business could be materially adversely affected if the Medicare program, local Medicare Administrative Contractors, or fiscal intermediaries were to make such a determination and deny, restrict, or limit the reimbursement of our products. Similarly, in Europe, these governmental and other agencies could deny, restrict, or limit the reimbursement of our products at the hospital, regional or national level. Cortigent's business also could be adversely affected if surgeons and the facilities within which they operate are not adequately reimbursed by Medicare and other funding agencies for the cost of the procedure in which they implant our products on a basis satisfactory to the administering surgeons and their facilities. If the local contractors that administer the Medicare program and other funding agencies are slow to reimburse surgeons or provider facilities for our products, the surgeons and facilities may delay their payments to Cortigent, which would adversely affect Cortigent's working capital requirements. Also, if the funding agencies delay reimbursement payments to the hospitals, any increase to their working capital requirements could reduce their willingness to treat patients who wish to have Cortigent's our products devices implanted. If reimbursement for Cortigent's products is unavailable, limited in scope or amount, or if pricing is set at unsatisfactory levels, Cortigent's business will be materially harmed.

***Cortigent's product candidates may cause undesirable side effects or have other properties that could delay or prevent their regulatory approval, limit the commercial profile of an approved label, or result in significant negative consequences following marketing approval, if any.***

To obtain marketing approval for Orion, or the stroke recovery system, or other neurostimulation systems that may be developed, Cortigent must demonstrate the safety and efficacy through clinical trials as well as additional supporting data. If our products are associated with undesirable side effects in clinical trials or have characteristics that are unexpected, Cortigent may need to interrupt, delay, or abandon development, cause it to have reduced functionality, or limit development to more narrow uses or subpopulations in which the undesirable side effects or other characteristics are less prevalent, less severe, or more acceptable from a risk-benefit perspective. Cortigent is conducting an initial feasibility clinical study of Orion at UCLA and Baylor, but it cannot guarantee that any positive results in this limited trial will successfully translate to a pivotal clinical trial. It is not uncommon to observe results in human clinical trials that are unexpected based on limited trials testing, and many product candidates fail in large clinical trials despite promising limited clinical trial results. Moreover, clinical data is often susceptible to varying interpretations and analyses, and many companies that have believed their product candidates performed satisfactorily in preclinical studies and clinical trials nonetheless failed to obtain marketing approval for their products. No assurance can be given that Cortigent will not encounter similar results in our clinical trials.

Human subjects in Cortigent's clinical trials may suffer significant adverse events, tolerability issues or other side effects associated with the surgical implantation, chronic implantation, and chronic use of our medical devices. No assurance can be given that Cortigent will not encounter adverse events in Cortigent's Orion trials. The observed efficacy and extent of light perception and vision restoration for subjects implanted with Orion in Cortigent's feasibility study may not be maintained over the long term or may not be observed in a larger pivotal clinical trial. If general clinical trials of Orion fail to demonstrate efficacy to the satisfaction of regulatory authorities or do not otherwise produce positive results, Cortigent may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of Orion.

For example, in June 2018, one subject in Second Sight's Early Feasibility Study for Orion ("EFS") experienced a seizure while in the clinic when Second Sight was evaluating a specific video stimulation algorithm. The seizure resolved quickly with medication and the subject was released from the clinic without need for hospitalization or further treatment. The subject was allowed to continue using the Orion device after the serious adverse event was reviewed by a safety committee for the study and clinicians at the implanting institution.

If our medical devices experience defects, or significant adverse events, or other side effects are observed in any of Cortigent's future clinical trials, we may have difficulty recruiting subjects to the clinical trial, subjects may drop out of the trial, or we may be required to abandon the trial or development efforts of that product candidate altogether. Cortigent, the FDA, or other applicable regulatory authorities in addition to Institutional Review Boards (IRBs) or Data and Safety Monitoring Committees may suspend clinical trials of our neurostimulation systems at any time for various reasons, including a belief that subjects in such trials are being exposed to unacceptable health risks. Devices developed in the prosthesis industry that initially showed promise in early-stage studies have later been found to cause side effects that prevented their further development. Even if the side effects do not preclude our products from obtaining or maintaining marketing approval, undesirable side effects may inhibit market acceptance of the approved product due to its actual or perceived safety and tolerability profile. Any of these developments could materially harm Cortigent's business, financial condition, and prospects.

Should Orion, or the stroke recovery system, or other neuromodulation systems that may be developed obtain marketing approval, adverse effects associated with it may also develop after such approval and could lead to requirements for conducting additional clinical safety trials, placing additional warnings in the labeling, imposing significant restrictions, or withdrawing the product from the market while further incurring attendant costs of explants and exposure to litigation. Cortigent cannot predict whether our products being developed will cause significant adverse effects in humans that would preclude or lead to the revocation of regulatory approval. However, any such event, were it to occur, would cause substantial harm to Cortigent's business and financial condition.

***Cortigent is also subject to stringent government regulation in European and other foreign countries, which could delay or prevent Cortigent's ability to sell Cortigent's products in those jurisdictions.***

Cortigent may pursue market authorizations for our neurostimulation systems in additional jurisdictions and undergo additional audits. For Cortigent to market products in Europe and some other international jurisdictions, Cortigent and Cortigent's distributors and agents must obtain required regulatory registrations or approvals. The approval procedure varies among countries and jurisdictions and can involve additional testing, and the time and costs required to obtain approval may differ from that required to obtain an approval by the FDA. Approval by the FDA does not ensure approval by regulatory authorities in other countries or jurisdictions, and approval by one foreign regulatory authority does not ensure approval by regulatory authorities in other foreign countries or jurisdictions or by the FDA. Violations of foreign laws governing use of medical devices may lead to actions against Cortigent by the FDA as well as by foreign authorities. Cortigent must also comply with extensive regulations regarding safety, efficacy, and quality in those jurisdictions. Cortigent may not be able to obtain all the required regulatory registrations or approvals, or it may be required to incur significant costs in obtaining or maintaining any regulatory registrations or approvals it receives. Delays in obtaining any registrations or approvals required for marketing Cortigent's products, failure to receive these registrations or approvals, or future loss of previously obtained registrations or approvals would limit Cortigent's ability to sell our products internationally. For example, international regulatory bodies have adopted various regulations governing product standards, packaging requirements, labeling requirements, import restrictions, tariff regulations, duties, and tax requirements. These regulations vary from country to country. In order to sell Cortigent's products in Europe, Cortigent must reestablish its ISO 13485:2016 certification and CE mark certification that have lapsed, which is an international symbol of quality and compliance with applicable European medical device directives. Failure to reinstate and maintain the ISO 13485:2016 certification or CE mark certification or other international regulatory approvals would prevent Cortigent from selling in some countries in Europe and elsewhere and could harm Cortigent's business materially.

***Even if Cortigent obtains clearance or approval to sell Cortigent's products, it is subject to ongoing requirements and inspections that could lead to the restriction, suspension, or revocation of Cortigent's clearance.***

Cortigent, as well as any potential collaborative partners such as distributors, will be required to adhere to applicable FDA regulations regarding good manufacturing practice, which include testing, control, and documentation requirements. Cortigent is subject to similar regulations in foreign countries. Even if regulatory approval of a product is granted, the approval may be subject to limitations on the indicated uses for which the product may be marketed or to the conditions of approval or contain requirements for costly post-marketing testing and surveillance to monitor the safety or efficacy of the product. Ongoing compliance with good manufacturing practice and other applicable regulatory requirements is strictly enforced in the United States through periodic inspections by state and federal agencies, including the FDA, and in international jurisdictions by comparable agencies. Failure to comply with these regulatory requirements could result in, among other things, warning letters, fines, injunctions, civil penalties, recall or seizure of products, total or partial suspension of production, failure to obtain premarket clearance or premarket approval for devices, withdrawal of approvals previously obtained, and criminal prosecution. The restriction, suspension or revocation of regulatory approvals or any other failure to comply with regulatory requirements would limit Cortigent's ability to operate and could increase Cortigent's costs.

***Cortigent has no large-scale manufacturing experience, which could limit Cortigent's growth.***

Cortigent's limited manufacturing experience may not enable it or any outside suppliers to make Cortigent's products in the volumes that would be necessary for it to achieve a significant number of commercial sales. Cortigent's product involves new and technologically complex materials and processes. As Cortigent moves from making product for clinical trials to larger quantities for greater commercial distribution, it must develop new internal or external manufacturing techniques and processes that allow it to scale production. Cortigent may not be able to establish and maintain reliable, efficient, full-scale manufacturing at commercially reasonable costs in a timely fashion. Difficulties Cortigent encounters in manufacturing scale-up, or Cortigent's failure to implement and maintain Cortigent's or outside manufacturing facilities in accordance with good manufacturing practice regulations, international quality standards or other regulatory requirements, could result in a delay or termination of production. To date, Cortigent's manufacturing activities have largely been to provide units for clinical testing and commercial sales of the now discontinued Argus II system. Cortigent may face substantial difficulties in reestablishing and maintaining manufacturing and obtaining the manufacturing from outside suppliers for Cortigent's products at a larger commercial scale and those difficulties may impact the quality of Cortigent's products and adversely affect Cortigent's ability to increase sales.

***To establish its sales and marketing infrastructure, Cortigent will need to grow the size of Cortigent's organization, and it may experience delays or other difficulties in managing this growth.***

As Cortigent's development and commercialization plans and strategies evolve, it will need to expand the size of Cortigent's employee base for managerial, operational, sales, marketing, financial and other resources. Future growth would impose significant added responsibilities on members of management, including the need to identify, recruit, maintain, motivate, and integrate additional employees. Cortigent's management team may have to use a substantial amount of time to manage these growth activities. Cortigent's future financial performance and our ability to commercialize our neuromodulation systems and other product candidates and compete effectively will depend, in part, on Cortigent's ability to timely and effectively manage any future growth and related costs. Cortigent may not be able to effectively manage a rapid pace of growth and timely implement improvements to Cortigent's management infrastructure and control systems.

***Cortigent may acquire additional businesses or form strategic alliances in the future, and it may not realize the benefits of such acquisitions or alliances.***

Cortigent may acquire additional businesses or products, form strategic alliances, or create joint ventures with third parties that it believes will complement or augment our planned development activities and business. If Cortigent acquires businesses with promising markets or technologies, it may not be able to realize the benefit of acquiring such businesses if it is unable to successfully integrate them with Cortigent's existing operations and company culture. Cortigent may have difficulty in developing, manufacturing, and marketing the products of a newly acquired company that enhances the performance of Cortigent's combined businesses or product lines to realize value from expected synergies. Cortigent cannot assure that, following an acquisition, it will achieve the revenues or specific net income that justifies the acquisition.

**Risks Related to This Offering, the Securities Market, and Ownership of Our Common Stock**

***The price of our common stock may be volatile, and the value of your investment could decline.***

Medical technology stocks have historically experienced high levels of volatility. The trading price of our common stock following this offering may fluctuate substantially. Following the completion of this offering, the market price of our common stock may be higher or lower than the price you pay in the offering, depending on many factors, some of which are beyond our control and may not be related to our operating performance. These fluctuations could cause you to lose substantially all or part of your investment in our common stock. Factors that could cause fluctuations in the trading price of our common stock include:

● announcements of new offerings, products, services, therapies, treatments or technologies, commercial relationships, acquisitions or other events by us or our competitors,

● challenges to our patents and the patents underlying the patents and intellectual property that we license,

● United States and European approvals or denials of our products,

● price and volume fluctuations in the overall stock market from time to time,

● significant volatility in the market price and trading volume of technology companies in general,

● fluctuations in the trading volume of our shares or the size of our public float,

● actual or anticipated changes or fluctuations in our results of operations,

● whether our results of operations meet the expectations of securities analysts or investors,

● actual or anticipated changes in the expectations of investors or securities analysts,

● litigation involving us, our industry, or both,

● regulatory developments in the United States, foreign countries, or both,

● general economic conditions and trends,

● major catastrophic events,

● lockup releases, sales of large blocks of our common stock,

● departures of key employees, or

● an adverse impact on the company from any of the other risks cited herein.

In addition, if the market for medical technology stocks or the stock market in general, experiences a loss of investor confidence, the trading price of our common stock could decline for reasons unrelated to our business, results of operations or financial condition. The trading price of our common stock might also decline in reaction to events that affect other companies in our industry even if these events do not directly affect us. In the past, following periods of volatility in the market price of a company's securities, securities class action litigation has often been brought against that company. If our stock price is volatile, we may become the target of securities litigation. Securities litigation could result in substantial costs and divert our management's attention and resources from our business. This could have a material adverse effect on our business, results of operations and financial condition.

***Sales of substantial amounts of our common stock in the public markets, including sales after the "lock-up" period, or the perception that sales might occur, could reduce the price of our common stock and may dilute your voting power and ownership interest in us.***

Sales of a substantial number of shares of our common stock in the public market after this offering, or the perception that these sales could occur, could adversely affect the market price of our common stock and may make it more difficult for you to sell your common stock at a time and price that you deem appropriate. Upon completion of this offering, we will have shares of common stock outstanding. All shares of common stock sold in this offering will be freely tradable without restrictions or further registration under the Securities Act of 1933, as amended, or the Securities Act, except for any shares held by our "affiliates" as defined in Rule 144 under the Securities Act.

Subject to certain exceptions described under the caption "Underwriting," our directors, officers and Vivani as our sole stockholder have agreed not to offer, sell, or agree to sell, directly or indirectly, any shares of common stock without the permission of the underwriter for a period of 12 months from the date of this prospectus (the "lockup period"). When these lockup periods expire, the locked-up security holders will be able to sell shares in the public market. In addition, the underwriter may, in its sole discretion, release all or some portion of the shares subject to lock-up agreements prior to the expiration of the applicable lock-up period. See "Shares Eligible for Future Sale" for more information. Sales of a substantial number of such shares upon expiration, or the perception that such sales may occur, or early release of the lock-up, could cause our share price to fall or make it more difficult for you to sell your common stock at a time and price that you deem appropriate.

***Following this offering, our parent, Vivani, Inc., will retain the ability to control the outcome of matters submitted for stockholder approval and may have interests that differ from those of our other stockholders.***

Our parent, Vivani Inc., will beneficially own approximately % of the outstanding shares of our common stock after this offering. As a result, Vivani will continue to be able to exercise significant influence over all matters requiring stockholder approval, including the election of directors and the approval of significant corporate transactions. Vivani may also have interests that differ from yours and may vote in a manner that is adverse to your interests. This concentration of voting power may have the effect of deterring, delaying, or impeding actions that could be beneficial to you, including actions that may be supported by our board of directors, and deprive our shareholders of an opportunity to receive a premium for their common stock as part of sale of our company and might ultimately affect the market price of our common stock.

 ***Our separation from Vivani could lead to potential conflicts of interest.***

Cortigent and Vivani have entered into a Transition Funding, Support and Services Agreement in March 2023 by which each party will continue to provide or cause to be provided the support services of certain corporate executives in a manner generally consistent with the arrangements between the companies prior to the completion of this offering for a duration of until the earlier of December 31, 2024 or receipt of proceeds from this offering. Certain of these arrangements for support services are expected to continue following receipt of proceeds from this offering. See "Certain Relationships and Related Party Transactions." In addition, such arrangements will require the corporate executives involved to divide their time and efforts between Vivani and Cortigent and to exercise their judgment on behalf of each of them as appropriate, which could create or appear to create potential conflicts of interest when such executives are faced with decisions that could have different implications for Vivani and Cortigent. Nevertheless, we believe such executives will be able to fulfill their fiduciary obligations to our stockholders.

***We expect to be a "controlled company" within the meaning of the corporate governance standards of Nasdaq. As a result, we will qualify for, and intend to rely on, exemptions from certain corporate governance standards. You will not have the same protections afforded to stockholders of companies that are subject to all corporate governance requirements of Nasdaq.***<br>So long as more than 50% of the voting power for the election of our directors is held by an individual, a group or another company, we will qualify as a "controlled company" under listing requirements of Nasdaq. After the completion of this offering, Vivani will continue to beneficially hold a majority of the voting power of our outstanding common stock. As a result, we are a "controlled company" under the Nasdaq rules. As a controlled company, we are exempt from certain Nasdaq corporate governance requirements, and we currently intend to rely on such exemptions, including those that would otherwise require our Board of Directors to have a majority of independent directors and require that we establish a compensation committee and nominating committee comprised entirely of independent directors, or otherwise ensure that the compensation of our executive officers and nominees for directors are determined or recommended to our Board of Directors by the independent members of our Board. To the extent we continue to rely on one or more of these exemptions, holders of our common stock will not have the same protections afforded to stockholders of companies that are subject to all corporate governance requirements of Nasdaq.

***Our securities have no prior market and our stock price may decline after the offering.***

Prior to this offering, there has been no public market for shares of our common stock. Although we have applied to list our common stock on the Nasdaq Capital Market, an active public trading market for our common stock may not develop or, if it develops, may not be maintained after this offering. For example, The Nasdaq Stock Market imposes certain securities trading requirements, including requirements related to a minimum bid price, minimum number of stockholders, minimum number of trading market markers, and minimum market value of publicly traded shares. Our company and the underwriter will negotiate to determine the initial public offering price. The initial public offering price may be higher than the trading price of our common stock following this offering. As a result, you could incur losses.

***We have broad discretion in the use of proceeds and may allocate the net proceeds from this offering in ways that differ from the estimates discussed in the section titled "Use of Proceeds" with which you may not agree, and if we do not use those proceeds effectively your investment could be harmed.***

We intend to use the proceeds of this offering to expand our sales and marketing efforts, enhance our current product, gain new marketing approvals, and continue research into next generation technology, as well as for working capital and general corporate purposes. The allocation of net proceeds of the offering set forth in "Use of Proceeds" in this prospectus below represents our estimates based upon our current plans and assumptions regarding industry and general economic conditions, and our future revenues and expenditures. Our management will have broad discretion over the specific use of the net proceeds that we receive in this offering and may find it necessary or advisable to use portions of the proceeds from this offering for other purposes. Circumstances that may give rise to a change in the use of proceeds and the alternate purposes for which the proceeds may be used are discussed in "Use of Proceeds". You may not have an opportunity to evaluate the economic, financial, or other information on which we base our decisions on how to use our proceeds and will need to rely upon the judgment of our management with respect to the use of proceeds. As a result, you and other stockholders may not agree with our decisions. If we do not use the net proceeds that we receive in this offering effectively, our business, results of operations and financial condition could be harmed.

***Because the initial public offering price of our common stock will be substantially higher than the pro forma net tangible book value per share of our outstanding common stock following this offering, new investors will experience immediate and substantial dilution.***

The initial public offering price of our common stock will be higher than the pro forma net tangible book value per share of our common stock immediately following this offering based on the total value of our tangible assets less our total liabilities. Therefore, if you purchase shares of our common stock in this offering, you will experience immediate dilution of per share, the difference between the price per share you pay (based on the assumed initial public offering price set forth on the cover page of this prospectus) for our common stock and the pro forma net tangible book value per share of our common stock as of December 31, 2022, after giving effect to the issuance of shares of our common stock in this offering. See "Dilution."

***We do not intend to pay dividends for the foreseeable future and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.***

We have never declared or paid any dividends on our common stock. We intend to retain any earnings to finance the operation and expansion of our business, and we do not anticipate paying any cash dividends in the future. As a result, you may only receive a return on your investment in our common stock if the market price of our common stock increases.

***Future sales and issuances of our equity securities or rights to purchase our equity securities, including pursuant to our equity incentive plans, would result in dilution of the percentage ownership of our stockholders and could cause our stock price to fall.***

To the extent we raise additional capital by issuing equity securities; our stockholders may experience substantial dilution. We may sell common stock, convertible securities, or other equity securities in one or more transactions at prices, and in a manner, we determine from time to time. If we sell common stock, convertible securities, or other equity securities in more than one transaction, investors may be diluted by subsequent sales. Such sales may also result in material dilution to our existing stockholders, and new investors could gain rights superior to existing stockholders.

***If a public market for our common stock develops, it may be volatile. This volatility may affect the ability of our investors to sell their shares as well as the price at which they sell their shares.***

If a market for our common stock develops, the market price for the shares may be significantly affected by factors such as variations in quarterly and yearly operating results, general trends in the medical device industry, and changes in state or federal regulations affecting us and our industry. Furthermore, in recent years the stock market has experienced extreme price and volume fluctuations that are unrelated or disproportionate to the operating performance of the affected companies. Such broad market fluctuations may adversely affect the market price of our common stock if a market for it develops.

***Substantial future sales of shares of our common stock in the public market could cause our stock price to fall.***

If our common stockholders (including those persons who may become common stockholders upon exercise of our options or warrants) sell substantial amounts of our common stock, or the public market perceives that stockholders might sell substantial amounts of our common stock, the market price of our common stock could decline significantly. Such sales also might make it more difficult for us to sell equity or equity-related securities in the future at a time and price that our management deems appropriate.

***Our Certificate of Incorporation provides that the Court of Chancery of the State of Delaware will be the sole and exclusive forum for substantially all disputes between us and our stockholders and federal district courts will be the sole and exclusive forum for Securities Act claims, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.***

***We have the right to issue shares of preferred stock. If we were to issue preferred stock, it is likely to have rights, preferences and privileges that may adversely affect the common stock.***

We are authorized to issue 10,000,000 shares of "blank check" preferred stock, with such rights, preferences and privileges as may be determined from time-to-time by our board of directors. Our board of directors is empowered, without stockholder approval, to issue preferred stock in one or more series, and to fix for any series the dividend rights, dissolution or liquidation preferences, redemption prices, conversion rights, voting rights, and other rights, preferences, and privileges for the preferred stock. No shares of preferred stock are presently issued and outstanding and we have no immediate plans to issue shares of preferred stock. The issuance of shares of preferred stock, depending on the rights, preferences, and privileges attributable to the preferred stock, could adversely reduce the voting rights and powers of the common stock and the portion of our assets allocated for distribution to common stockholders in a liquidation event, and could also result in dilution in the book value per share of the common stock we are offering. The preferred stock could also be utilized, under certain circumstances, as a method for raising additional capital or discouraging, delaying, or preventing a change in control of our company, to the detriment of the investors in the common stock offered hereby. We cannot assure you that we will not, under certain circumstances, issue shares of our preferred stock.

***We will incur increased costs as a result of being a publicly traded company.***

As a company with publicly traded securities, we will incur significant legal, accounting, and other expenses not presently incurred as a private company. In addition, the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations promulgated by the SEC and the NYSE American, will require us to adopt corporate governance practices applicable to U.S. public companies. These rules and regulations will increase our legal and financial compliance costs and may place a strain on our systems and resources. The Exchange Act requires that we file annual, quarterly, and current reports with respect to our business and financial condition. The Sarbanes-Oxley Act requires that we maintain effective disclosure controls and procedures and internal controls over financial reporting. To maintain and improve the effectiveness of our disclosure controls and procedures, we will need to commit significant resources, hire additional staff, and provide additional management oversight. We will be implementing additional procedures and processes for the purpose of addressing the standards and requirements applicable to public companies.

***We are currently operating in a period of economic uncertainty and capital markets disruption, which has been significantly impacted by geopolitical instability due to the ongoing military conflict between Russia and Ukraine.***

U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine. In February 2022, Russia launched a full-scale military invasion of Ukraine. Although the length and impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine could lead to market disruptions, including significant volatility in commodity prices, and credit and capital markets. Additionally, Russia's prior annexation of Crimea, recent recognition of two separatist republics in the Donetsk and Luhansk regions of Ukraine and subsequent military interventions in Ukraine have led to sanctions and other penalties being levied by the United States, European Union and other countries against Russia, Belarus, the Crimea Region of Ukraine, the so-called Donetsk People's Republic, and the so-called Luhansk People's Republic, including agreement to remove certain Russian financial institutions from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system. Additional potential sanctions and penalties have also been proposed and/or threatened. Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets, potentially making it more difficult for us to obtain additional funds. Any of the abovementioned factors could affect our business, prospects, financial condition, and operating results. The extent and duration of the military action, sanctions and resulting market disruptions are impossible to predict, but could be substantial. Any such disruptions may also magnify the impact of other risks described in this prospectus.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

Certain statements contained in this prospectus, which reflect our current views with respect to future events and financial performance, and any other statements of a future or forward-looking nature constitute "forward-looking statements" within the meaning of the federal securities laws. We intend the forward-looking statements to be covered by the applicable safe harbor under the federal securities laws. In some cases, you can identify forward-looking statements by terms such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," or the negative of these terms or other similar expressions, as well as statements in future tense, identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking statements are based on the information we have when the statements are made or management's good faith belief as of that time with respect to future events and are subject to significant risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements include, but are not limited to, such matters as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to develop commercial products and successfully market them into the U.S. and other markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to compete in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our expectations regarding our financial performance, including our revenue, costs, EBITDA and Adjusted EBITDA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ the sufficiency of our cash, cash equivalents, and investments to meet our liquidity needs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to mitigate and address unanticipated performance problems on our websites, or platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to attract, retain, and maintain good relations with our customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to anticipate market needs or develop new or enhanced offerings and services to meet those needs as well as our expectations about how market trends will affect our business,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to stay in compliance with laws and regulations, including tax laws and FDA regulations, that currently apply or may become applicable to our business both in the U.S. and internationally and our expectations regarding various laws and restrictions that relate to our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to anticipate the effects of existing and developing laws and regulations, including with respect to taxation, and privacy and data protection that relate to our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to effectively manage our growth and maintain our corporate culture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to identify, recruit, and retain skilled personnel, including key members of senior management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to successfully identify, manage, consummate, and integrate any existing and potential acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to maintain, protect, and enhance our intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our expectations regarding use of proceeds from this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ the volatility of the trading price of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our status as an emerging growth company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our status as a controlled company, and the possibility that Vivani's interests may conflict with our interests and the interests of our other stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ our ability to manage the increased expenses associated and compliance demands with being a public company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ other factors detailed herein under "Risk Factors."

The preceding list is not intended to be an exhaustive list of all forward-looking statements. The forward-looking statements are based on our beliefs, assumptions, and expectations of future performance, duly considering all information currently available to us. These statements are only predictions based on our current expectations and forecasts about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, business strategy and financial needs. There are important factors that could cause our actual results, levels of activity, performance, or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements. In particular, you should consider the risks provided under "Risk Factors" in this prospectus. These risks are not exhaustive. Other sections of this prospectus include additional factors that could adversely impact our business and financial performance. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this prospectus.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this prospectus, to conform these statements to actual results or to changes in our expectations. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained above and throughout this prospectus.

**INDUSTRY AND OTHER DATA**

We obtained the industry, market and competitive position data in this prospectus from our own internal estimates and research as well as from industry and general publications and research, surveys and studies conducted by third parties. Information that is based on estimates, forecasts, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances that are assumed in this information based on various factors, including those discussed in "Risk Factors."

**USE OF PROCEEDS**

We estimate that the net proceeds from our issuance and sale of shares of our common stock in this offering will be approximately $ million, assuming an initial public offering price of $ per share, the midpoint of the range set forth on the cover page of this prospectus, and after deducting the underwriting discounts and commissions and estimated offering expenses payable by us. If the underwriters exercise their option to purchase additional shares in full to cover overallotments, if any, we estimate that our net proceeds will be approximately $ million.

We intend to use net proceeds from this offering approximately as follows:

● $2 million to repay amounts due to Vivani for funds advanced under the Transition Funding, Support and Services Agreement,

● $2 million to manufacture and assemble new devices for use in Orion and stroke recovery systems,

● $1 million towards a planned Orion pivotal trial,

● $2 million for other research and development, to include the stroke recovery system, and

● the balance of proceeds for general working capital

We plan to use these proceeds over an approximate 18 month period following receipt of proceeds from this offering. We expect to use the offering proceeds to pay for manufacturing devices to be used in the Orion and stroke recovery system clinical studies, to seek FDA clearance to conduct these studies, to select and qualify our clinical trial sites, and for other activities relating to study preparation. We also expect to conduct pricing and reimbursement market research for the Orion and stroke recovery systems and to complete our Orion patient preference information (PPI) study which will help us determine our safety endpoints in cooperation with the FDA. Thereafter we will require additional funding to complete the Orion pivotal clinical study and initial stroke device study. Determining the costs of the Orion pivotal study will depend on such factors as the size of the study, its duration, site selections and site training, writing and establishing protocols acceptable to the FDA, accepted safety endpoints, and other terms and conditions that we will jointly establish in cooperation with the FDA.

Certain aspects of our technology may be developed in tandem in that our current-generation neurostimulation device is being used for both Orion and for the stroke recovery device with the electrode arrays being substantially identical, other than for (i) a slight variation in shape, and (ii) placement on different areas of the brain cortex (surface). The Orion is implanted so as to address the visual cortex while the stroke recovery device is intended to be implanted on the motor cortex. In October 2022 we applied for grant funding of up to $6 million from the National Institutes of Health (NIH) that we expect, if awarded, would potentially cover the cost of the initial stroke device study.

As a wholly owned subsidiary of Vivani to date, our sole source of funding and of support services have been received from Vivani which has financed our working capital needs, primarily salaries, consulting services, rent and payroll pursuant to a Transition Funding, Support And Services Agreement which we and Vivani entered into in March 2023. See "Certain Relationships And Related Party Transactions."

This expected use of the net proceeds represents our intentions based on our current plans and business conditions, which could change in the future as our plans and business conditions evolve. As of the date of this prospectus, we cannot predict with certainty all particular uses for the net proceeds to be received upon the closing of this offering or the amounts that we will actually spend on the uses set forth above. The amounts and timing of our actual expenditures may vary significantly depending on numerous factors, including the progress of our development, our entry into U.S. and other geographical markets, as well as any collaborations that we may enter into with third parties for our current or future product candidates or strategic opportunities that become available to us, and any unforeseen cash needs. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering.

Pending our use of proceeds from this offering, we intend to invest the net proceeds in a variety of capital preservation instruments, including short-term, investment-grade, interest-bearing instruments and U.S. government securities.

**DIVIDEND POLICY**

We have never declared or paid any cash dividends on our capital stock. We currently intend to retain earnings, if any, to finance the growth and development of our business. We do not expect to pay any cash dividends on our common stock in the foreseeable future. Payment of future dividends, if any, will be at the discretion of our board of directors and will depend on our financial condition, results of operations, capital requirements, restrictions contained in any financing instruments, provisions of applicable law and other factors the Board deems relevant.

**CAPITALIZATION**

The following table sets forth our cash and cash equivalents and total capitalization as of December 31, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ on an actual basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ On a pro forma basis giving effect to the issuance and sale by us of shares of our common stock by us
in this offering at an assumed public offering price of $ per share, the midpoint
of the range set forth on the cover page of this prospectus, after deducting estimated underwriting discounts and commissions and
estimated offering expenses payable by us.

The pro forma information below is illustrative only, and our capitalization following the closing of this offering will be adjusted based on the actual cash on hand, initial public offering price and other terms of this offering determined at pricing. You should read this capitalization table together with "Use of Proceeds," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes appearing elsewhere in this prospectus.

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| | | |
|:---|:---|:---|
|  | **December 31, 2022** <br> **(In thousands)**  | **December 31, 2022** <br> **(In thousands)**  |
|  | **Actual** | **Pro Forma** |
| Cash and cash equivalents | $425 | $— |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp; Preferred stock, $0.001 par value: 10,000,000 authorized, 0 shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp; Common stock, $0.001 par value: 60,000,000 shares authorized, actual and pro forma; 20,000,000 shares issued and outstanding, actual and shares issued and outstanding, pro forma |  |  |
| Additional paid-in capital |  |  |
| Accumulated deficit |  |  |
| Net Parent Investment | 864 |  |
| Accumulated Other Comprehensive Income | (389) |  |
| Total net parent investment/stockholders' equity | 475 |  |
| Total capitalization | $475 | $— |

---

The number of shares of our common stock to be outstanding after this offering is based on 20,000,000 shares of our common stock outstanding as of December 31, 2022 and excludes as of that date:

● shares of common stock reserved for future issuance under our 2023 equity incentive plan;

● shares of common stock issuable upon exercise of warrants to be issued to the representative of the underwriters as part of this offering at an exercise price of $(assuming an initial public offering price of $ per share).

**DILUTION**

Purchasers of our common stock in this offering will experience an immediate dilution of net tangible book value per share from the initial public offering price. Dilution in net tangible book value per share represents the difference between the amount per share paid by the purchasers of shares of common stock and the net tangible book value per share immediately after this offering.

As of December 31, 2022, our net tangible book value was $475,000, or $0.02 per share of common stock. Net tangible book value per share represents our total tangible assets, less our total liabilities, divided by the number of outstanding shares of our common stock.

Dilution represents the difference between the amount per share paid by purchasers in this offering and the pro forma net tangible book value per share of common stock after the offering. After giving effect to the sale of shares of common stock in this offering at an assumed offering price of $ per share, the midpoint of the range set forth on the cover page of this prospectus, and after deducting underwriting commissions and estimated offering expenses payable by us, but without adjusting for any other change in our net tangible book value subsequent to December 31, 2022, our pro forma net tangible book value would have been $ per share. This represents an immediate increase in pro forma net tangible book value of $ per share to our existing stockholder and immediate dilution of $ per share to new investors purchasing shares at the proposed public offering price.

The following table illustrates the dilution in pro forma net tangible book value per share to new investors as of December 31, 2022:

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| | |
|:---|:---|
|  Assumed initial public offering price per share | $— |
|  Net tangible book value per share at December 31, 2022 | $0.02 |
|  Increase in net tangible book value per share to the existing stockholders attributable to this offering | $— |
|  Adjusted net tangible book value per share after this offering | $— |
|  Dilution in net tangible book value per share to new investors | $— |

---

The following tables set forth, as of December 31, 2022, the number of shares of common stock purchased from us, the total consideration paid to us and the average price per share paid by the existing holders of our common stock and the price to be paid by new investors at the public offering price.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | |
|  | **Number** | **Percent** | **Percent** | **Percent** | **Average Price**<br>**Per Share** |
| Existing stockholders% |  |  | $nan% |  | $|
| Investors purchasing shares in this offering |  | % |  | % | $|
| Total |  | 100% | $— | 100% |  |

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The table above assumes no exercise of the underwriters' option to purchase additional shares in this offering. If the underwriters exercise their option to purchase additional shares of our common stock in full, the number of shares of our common stock held by existing stockholders would be reduced to % of the total number of shares of our common stock outstanding after this offering.

The number of shares of our common stock to be outstanding after this offering is based on 20,000,000 shares of our common stock outstanding as of December 31, 2022 and excludes as of that date:

● shares of common stock reserved for future issuance under our 2023 equity incentive plan;

● shares of common stock issuable upon exercise of warrants to be issued to the representative of the underwriters as part of this offering at an exercise price of $(assuming an initial public offering price of $ per share).

The dilution information discussed above is illustrative only and will change based on the actual initial public offering price and other terms of this offering determined at pricing.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

*The following discussion and analysis of our financial condition and results of operations should be read together with audited 2021 financial statements and related notes of Vivani Medical, Inc. ("Vivani", formerly Second Sight Medical Products, Inc.) included in Vivani's Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission ("SEC") on March 29, 2022. Some of the information contained in this discussion and analysis or set forth elsewhere in this report, including information with respect to our products, plans and strategy for our business and related financing, contains forward-looking statements that involve risks and uncertainties, including statements regarding our expected financial results in future periods. The words "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "might," "plans," "projects," "will," "would," "strategy" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Examples of forward-looking statements include, among others, statements we make regarding expectations for revenues, liquidity, cash flows and financial performance, the anticipated results of our development efforts and the timing for receipt of required regulatory approvals, insurance reimbursements and product launches, our financing plans and future capital requirements, on our business, results of operations, financial condition or prospects, the materially adverse impact of the recent COVID-19 coronavirus pandemic and related public health measures on our business. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. We assume no obligations to update these forward-looking statements to reflect events or circumstances after the date of this report or to reflect actual outcomes.*

In March 2011, the *Argus II<sup>®</sup> Retinal Prosthesis System* was approved for commercial use in the European Union to provide visual perception in patients with profound blindness due to retinitis pigmentosa ("RP"), a rare, "orphan" condition. The device was initially available in the United Kingdom, France, Germany, and several other countries at a price of approximately USD $115,000. In February 2013, the U.S. Food & Drug Administration (FDA) approved Argus II under a Humanitarian Device Exemption, and in August 2013 the reimbursement price for Medicare patients was approved at approximately $150,000. About 350 profoundly blind people around the world have received Argus II retinal implants. Many of these patients have been using their Argus implants for more than ten years, confirming our very high manufacturing standards and product reliability. The market opportunity for the Argus II device has been limited to the small number of patients who have profound blindness due to RP, and the Argus system was discontinued in 2019 due to resulting commercial considerations.

To make artificial vision available to a much larger group of individuals who are blind due to a wide range of causes, including glaucoma, diabetic retinopathy, optic nerve injury or disease and eye injury, we designed and built our next generation system, the *Orion<sup>®</sup> Visual Cortical Prosthesis System ("Orion").* Based on a U.S. market study sponsored by Cortigent, we estimate that the total addressable market for Orion is approximately 82,000 Americans, which is roughly sixteen times larger than for Argus II, and could potentially be approximately $4 billion by time of launch. We believe that there are substantially more blind people who could potentially benefit from Orion in Europe, Asia, and other world areas.

The Orion system, which leverages over 20 years of our experience in targeted neurostimulation for artificial vision, converts images captured by a miniature video camera mounted on glasses into a series of small electrical pulses. It is designed to bypass the diseased or injured visual pathway and to transmit these electrical pulses wirelessly to an array of electrodes implanted on the surface of the brain's visual cortex to provide the perception of patterns of light (see Figure 1). Cranial surgery is required to place the electrode array onto the brain's surface; the Orion system has been designed so as not to require penetration of the brain. In 2017 the FDA designated Orion as a Breakthrough Device.

● <u>Orion has a good safety profile</u>: Five subjects experienced a total of seventeen adverse events (AEs) and one subject did not report any adverse events related to the device or to surgery through November 2022. One was considered a serious adverse event (SAE) and all other adverse events were not serious. The single SAE, a seizure, occurred about three months post-implant, was resolved safely and quickly, and did not require a hospital stay. The investigators determined that this SAE was device-related and not unexpected as it had been disclosed as a potential safety risk in the patient informed consent form. The SAE occurred as we attempted to explore the optimal treatment frequency, which is a key stimulation parameter. The SAE occurred at a specific frequency. All adverse events are evaluated by an independent medical safety monitoring (IMSM) committee. With the IMSM committee's input, we thereafter kept stimulation frequencies for all patients below the level that induced the SAE, and we have not observed any other seizures in this or any other participant. The FDA requires medical device manufacturers to follow 21 CFR 820 and maintain a Quality Management System (QMS). As a part of our QMS, we conform to ISO 14971, an FDA-recognized standard, to identify the hazards associated with the medical device, to estimate and evaluate the associated risks, to control these risks, and to monitor the effectiveness of the controls. There have been no serious adverse events due to the device or surgery since June 2018. One patient chose to have the device explanted before the 36th month due to an unrelated medical condition. Two other patients subsequently requested explantation for reasons unrelated to the device's efficacy or safety. Cortigent's independent medical safety monitor (IMSM) has determined that the reasons for these explants were not related to the device or the surgery.

● <u>Orion efficacy data are encouraging</u>: We assess efficacy by looking at three measures of visual function: 1) *Square localization* – Orion subjects sit in front of a touch screen and are asked to touch within the boundaries of a square when it appears; 2) *Direction of motion* – Subjects are asked to identify the direction of the motion of a line that traverses a screen; and 3) *Grating visual acuity* – a measure of visual acuity that is adapted for very low vision. Five of the six original subjects completed the planned efficacy assessments at 36 months post-implant. For *square localization*, five of five subjects performed significantly better with the system turned on versus turned off. For *direction of motion*, five of five subjects performed significantly better with the system turned on than with it turned off. For *grating visual acuity*, two of five subjects tested had measurable visual acuity with the system turned on compared to none with the device turned off.

Another efficacy measurement of day-to-day functionality and benefit is the Functional Low-Vision Observer Rated Assessment (FLORA). The FLORA assessments were performed by an independent, third-party specialist who spent time with the subjects in their homes. The specialist asked each subject a series of questions and observed them performing 15 or more daily living tasks with the Orion system turned on and with it turned off, such as finding light sources, following a sidewalk, or sorting laundry. The specialist then determined if the system was providing a benefit, was neutral, or impaired the subject's ability to perform these tasks. Four of four subjects who completed the FLORA evaluation at 36 months had positive or mildly positive results indicating that the Orion system was providing benefit. Cortigent is planning to work with the FDA to gain agreement on the additional clinical studies that will be required to secure marketing approval for Orion.

The FDA categorizes electronic medical devices that are implanted as Class III. Both the Argus II and Orion are thus Class III. Class III devices face higher burdens to attain regulatory approval; Cortigent (formerly Second Sight Medical) successfully navigated this approval process with the Argus II system. The Argus II clinical trial enrolled patients with late-stage retinitis pigmentosa, a rare disease, affecting less than four thousand Americans. This small potential market size of fewer than 8,000 individuals enabled the Argus II to qualify for a Humanitarian Device Exemption (HDE) which the FDA granted in February 2013.

In November 2017, the FDA granted an Expedited Access Pathway (EAP) designation to the Orion system to treat individuals who are bilaterally blind due to non-cortical etiology and who are not candidates for any other commercially approved vision restoration therapy. The Breakthrough Device Program (BDP) subsumed the EAP program and its devices in December 2018. The BDP is intended to accelerate medical device development, assessment, and review, while preserving the statutory standards for premarket approval. The potential patient population for Orion is expected to include blindness due to most common causes, including glaucoma, diabetic retinopathy, eye trauma, optic nerve damage, and retinitis pigmentosa. According to a company-sponsored 2018 study by Fletcher Spaght Inc., there are about 82,000 Americans who could potentially benefit from the Orion system. We plan to apply for a Breakthrough Device designation for the stroke recovery system in March 2023. If we fail to secure this designation, we may experience slower interactions with the FDA that could delay our projected development timelines.

 **We are developing a platform technology with multiple potential applications**: Our current-generation miniature neurostimulation device with 60 independent-cortical stimulation channels, supported by safety data from the Argus II and Orion programs, has the potential to treat other conditions with high unmet medical need. We believe that our most promising next target will be to apply cortical neurostimulation to improve muscle function in partially paralyzed stroke patients who are undergoing rehabilitation. The potential benefits to this patient population were evaluated several years ago in a promising U.S. Phase 2 clinical study by an unrelated company that tested a system with a single channel to stimulate the motor cortex. This study supports the feasibility of employing cortical stimulation to facilitate stroke rehabilitation. The results of the subsequent Phase 3 study, however, failed to achieve positive results and were insufficient to support an FDA marketing application and the company was dissolved. After consulting with its former executives, we believe that our 60-channel device has the potential to overcome the technical issues that they encountered. Like Orion, our stroke recovery system will require cranial surgery; in this case to place the electrode array on the area of the brain surface that controls hand and arm motion called the "motor cortex." We have filed an NIH grant application and held a "Pre-Sub" meeting request with FDA in February 2023 to discuss commencing an Early Feasibility Study of our stroke recovery system. We plan to apply for a Breakthrough Device designation for the stroke recovery system in March 2023. If we fail to secure this designation, we may experience slower interactions with the FDA that could delay our projected development timelines.

There are approximately 7.6 million living Americans who have reported a stroke in their lifetime. (Tsao 2022). Each year approximately 610,000 Americans have a first stroke (Kissela 2012). Among the over 80% of people who survive a first stroke, the most common neurological deficit is motor weakness on one side of the body (hemiparesis), and approximately 40% of these stroke victims suffer moderate to severe motor impairment that requires special care (Gresham 1995). If our device achieves treatment success, as to which we can make no assurance, we estimate that it could potentially benefit up to 195,000 U.S. stroke victims each year.

 **We are targeting substantial revenue opportunities**: The Orion system, designed to provide visual perception to profoundly blind people, has an addressable market of approximately 82,000 individuals in the U.S. assuming the target indication is achieved (profound blindness due to glaucoma, diabetic retinopathy, optic nerve injury or disease and eye injury) based on a study by an independent market research firm engaged by Cortigent. We believe that about one-third of these patients could be reached by a marketing program. Depending on study results to assess clinical utility, Cortigent may seek reimbursement similar to or higher than the $150,000 per device that was approved by the Centers for Medicare and Medicaid Services ("CMS") for the Argus II system.

We must accomplish several critical development and regulatory milestones in order to complete and market the Orion and stroke recovery systems. We face the material risks of failing to achieve successful clinical trials, to attain regulatory approvals, and to secure favorable product reimbursement for patients covered by Medicare and other types of insurance. Even with a successful trial, it could be determined that certain patient subpopulations cannot be effectively treated by our devices which would reduce our product sales potential. The development process may take longer and be more costly than anticipated and we may not achieve reimbursement levels similar to the one we received for our Argus II device or obtain other suitable reimbursement levels that we may require. Since we currently have no commercial revenues, any of these outcomes could require substantial additional funding.

**Intellectual property**: Cortigent has amassed an extensive intellectual property estate consisting of rights (as of December 1, 2022) to 253 issued U.S. patents, 35 issued European patents (nationalized in Great Britain, France, and Germany), seven pending U.S. patent applications, 11 pending European patent applications, seven issued U.S. design patents and six issued European design registrations (with six corresponding issued British design registrations). Our patent estate covers the technologies invented during the development of the Argus and Orion devices. It primarily covers the core technologies of implant neurostimulation techniques and achieving implant longevity, and therefore are expected to protect our current and future product lines including the planned stroke rehabilitation system.

Eight of our most important issued patents are briefly described in the table below. All these patents are owned by Cortigent, Inc. and their jurisdiction is noted.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **Jurisdiction/ Number** | &nbsp;&nbsp; **Title** | &nbsp;&nbsp; **Expiration Date** | &nbsp;&nbsp; **Description/Foreign Counterparts** |
| &nbsp;&nbsp; US11,173,305 | &nbsp;&nbsp; Method and Apparatus to Provide Safety Checks for neural Stimulation | &nbsp;&nbsp; 9/3/2039 | &nbsp;&nbsp; The claims of US11,173,305 are method of treatment claims, specifically methods of stimulating neural tissue. This patent is a member of the WO2007127443 patent family with other US and EP patents having claims directed to the apparatus for controlling the stimulation of neural tissue. |
| &nbsp;&nbsp; US9,861,820 | &nbsp;&nbsp; Cortical Visual Prosthesis | &nbsp;&nbsp; 5/13/2036 | &nbsp;&nbsp; The claims of US9,861,820 are directed to an implantable device. This patent is a member of the WO2016183512 patent family. Its European counterpart (EP3294409A1) is pending. |
| &nbsp;&nbsp; US9,592,377 | &nbsp;&nbsp; Implantable Device for the Brain | &nbsp;&nbsp; 1/23/2030 | &nbsp;&nbsp; The claims of US9,592,377 are directed to a neural stimulator. This patent is a member of the WO2009018172 patent family with other US and EP patents, including US10,052,478 also noted in this table. |
| &nbsp;&nbsp; US7,914,842 | &nbsp;&nbsp; Method of Manufacturing a Flexible Circuit Electrode Array | &nbsp;&nbsp; 12/27/2029  | &nbsp;&nbsp; The claims of US7,914,842 are process claims, specifically methods for manufacturing a flexible circuit electrode array. |
| &nbsp;&nbsp; US8,554,328 | &nbsp;&nbsp; Method for Inspection of Materials for Defects | &nbsp;&nbsp; 9/11/2028 | &nbsp;&nbsp; The claims of US8,554,328 are directed to hermetic packaging, methods of inspecting a bond in a hermetic package and a visual prosthesis comprising a hermetic package enclosing an electronic circuit and an array of electrodes driven by the electronic circuit suitable to stimulate visual neurons. |
| &nbsp;&nbsp; US10,052,478 | &nbsp;&nbsp; Implantable Device for the Brain | &nbsp;&nbsp; 7/25/2028 | &nbsp;&nbsp; The claims of US10,052,478 are directed to a neural stimulator. This patent is a member of the WO2009018172 patent family with other US and EP patents, including US9,592,377 also noted in this table.  |
| &nbsp;&nbsp; US8,224,454 | &nbsp;&nbsp; Downloadable Filters for a Visual Prosthesis | &nbsp;&nbsp; 6/9/2027 | &nbsp;&nbsp; The claims of US8,224,454 are directed to visual prostheses. This patent is a member of the WO2007035743 patent family with other US and EP patents. |
| &nbsp;&nbsp; US8,200,338 | &nbsp;&nbsp; Flexible Circuit Electrode Array for Improved Layer Adhesion | &nbsp;&nbsp; 5/7/2027 | &nbsp;&nbsp; The claims of US8,200,338 are directed to a flexible circuit electrode array adapted to be used with a visual prosthesis. |

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Pursuant to our August 23, 2016 Research and Development Collaboration Agreement with Advanced Medical Electronics Corporation ("AME"), we have exclusive rights to design, make, use, and sell products using new technology resulting from research and development activities completed by AME staff as to certain past, existing and future government funded research projects and an exclusive license to U.S. Patent 7,308,314. The rights granted in this license continue in perpetuity. No fees are due under this license excepting patent filing and maintenance fees

As set forth in our Research Agreement with Doheny Eye Institute (DEI), we have an exclusive license to utilize and control the commercialization of certain patents co-owned by the parties, related to the technology for visual prostheses, which applies to Argus II and Orion and requiring future royalty payments through 2033. We have agreed to pay to DEI royalties for licensed products sold or leased by us. The royalty rate is 0.5%, based on related net sales of the patented portion of licensed products.

Pursuant to our collaboration agreement with the Salk Institute for Biological Studies dated July 23, 2004 and our sponsored research agreement with the John Hopkins University dated April 14, 2011, any inventions solely invented by employees of each entity are owned by that entity, however inventions jointly invented by inventors of both Cortigent and such entity are considered joint inventions and are owned jointly by both parties. In each case, Cortigent is responsible for all costs incurred for the filing and maintenance of any patents in exchange for an option from such entity to license that entity's ownership rights. Cortigent did not exercise such options and as a result both the Salk Institute for Biological Studies and the John Hopkins University may use the inventions claimed in the respective jointly owned patents for any purpose without any obligation to Cortigent. We currently co-own one patent with the Salk Institute for Biological Studies and five patents (three of which are expired) with The John Hopkins University. Cortigent is a wholly owned subsidiary of Vivani Medical, Inc. (Vivani) and includes the personnel, technologies, and other assets that formerly comprised Second Sight Medical Products, Inc. (Second Sight). By this offering Cortigent seeks to obtain the dedicated resources to advance our promising neurostimulation technologies and expand the product pipeline and addressable market. Cortigent's principal offices are in Valencia, California.

Patents covered under our 2019 agreement with The Johns Hopkins University have expired. This agreement was terminated in 2022 and is no longer relevant to our business. All patents covered by the 2002 agreement with the Doheny Eye Institute (DEI) and the 2004 agreement with The Salk Institute are jointly owned with Cortigent. These agreements do not affect our rights to make and sell our products. The agreements were made to maintain exclusivity to the rights provided in those patents. We are not using the inventions and have no plans to use the inventions covered by the patents included in the Salk agreement. There are no maintenance fees in the Salk agreement. The inventions found in the patents covered by the DEI agreement apply to visual devices only including the Orion system. There are no maintenance fees in the DEI agreement. The DEI agreement requires a 0.5% royalty on net sales of Orion units. We are not using and do not plan to use the one patent co-owned with Lawrence Livermore National Security, LLC.

 **Transition Funding, Support and Services Agreement**

The Company and Vivani have entered into a Transition Funding, Support and Services Agreement in March 2023 by which Vivani will advance funds and provide or cause to be provided to the Company the services and funding that will cover salaries and related costs, rent and other overhead in order to permit the Company to operate in substantially the same manner in which business operations of the Company were previously operated by Second Sight, prior to the formation of Cortigent, which obligations will continue, in the case of the funding obligations, until the earlier of December 31, 2024 or receipt of proceeds from this offering.

As part of this funding and support agreement, Vivani has also agreed to provide the services of its Chief Operating Officer, Truc Le, on an interim basis to consult on operations matters, such as manufacturing planning and interactions with contract manufacturers and the services of its Chief Business Officer, Donald Dwyer, on an interim basis to consult on business development matters, such as business modeling and commercial readiness. See "Management – Vivani Advisors to the Company." We will also be providing to Vivani the services of Edward Sedo, our principal accounting officer, and the services of our senior in-house patent counsel. We and Vivani have acknowledged that any such services which we provide to the other before the completion of this offering are deemed to be equivalent in value and shall offset the value of the services provided to the other. As a result we each have acknowledged to the other that neither of us shall accrue any service fees or expenses to the other before completion of this offering and that no invoices from one of us to the other shall be required to be submitted. See "Certain Relationships and Related Party Transactions."

If after the termination date of the Agreement the Company requires additional funds or services, the Company and Vivani shall negotiate in good faith for the charges to be incurred for providing these services, but Vivani shall be under no obligation to provide any additional funding or services. Nothing in this agreement shall grant Vivani or its employees or agents who are providing services the right directly or indirectly to control or direct the operations of the Company. Each of the parties shall invoice the other monthly for and the services supplied and the unpaid balance thereon. The unpaid balances of such invoices shall bear interest at the rate of 5.0% per year. All amounts due to Vivani under the agreement inclusive of accrued interest shall be due on the earlier of the end date of the agreement or upon receipt of proceeds from this offering.

At December 31, 2022 Vivani had cash and cash equivalents of $44.6 million. We intend to use net proceeds from the offering primarily for

● funding the clinical development of the *Orion® Visual Cortical Prosthesis System* ("Orion"),

● expanding application of our core neurostimulation technology to the development of a new medical device to support improved muscle function in partially paralyzed stroke patients who are undergoing rehabilitation,

● conducting other research and development programs,

● repaying Vivani for advances made to us under the Transition Funding, Support and Services Agreement, and for

● working capital and other general corporate purposes.

The size and terms of the funding will determine the breadth of time available to us to fund our research and development activities and whether any further support from our parent or further funding may be required.

**Critical Accounting Policies and Estimates**

The preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the United States ("GAAP") and the requirements of the United States Securities and Exchange Commission require management to make estimates, assumptions and judgments that affect the amounts, liabilities, revenue, and expenses reported in the financial statements and the notes to the financial statements. On an ongoing basis, we evaluate our critical accounting policies and estimates. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Some of those judgments can be subjective and complex, and therefore, actual results could differ materially from those estimates under different assumptions or conditions.

**Results of Operations**

*Operating Expenses.* We generally recognize our operating expenses as incurred in three general operational categories: research and development, clinical and regulatory, and general and administrative. Our operating expenses also include a non-cash component related to the amortization of stock-based compensation for research and development, clinical and regulatory, and general and administrative personnel. We have received grants from institutions or agencies, such as the National Institutes of Health, to help fund the some of the cost of our development efforts. We have recorded the amount of funding received from these grants as reductions to operating expenses.

● Research and development expenses consist primarily of employee compensation and consulting costs related to the design, development, and enhancements of our current and potential future products, offset by grant revenue received in support of specific research projects. We expense our research and development costs as they are incurred. Due to the recent downsizing of our business, we are currently evaluating the path forward for our research and development activities for Orion, including the potential for collaboration with third parties and/or outsourcing the engineering work for Orion.

● Clinical and regulatory expenses consist primarily of salaries, travel and related expenses for personnel engaged in clinical and regulatory functions, as well as internal and external costs associated with conducting clinical trials and maintaining relationships with regulatory agencies, offset by grant revenue received in support of specific clinical research products. We expect clinical and regulatory expenses to be lower in the short run, as we have closed our clinical study activities related to Argus II. In the long run, we expect clinical and regulatory expenses to increase, if and when we conduct a larger clinical study of Orion.

● General and administrative expenses consist primarily of salaries and related expenses for executive, legal, finance, human resources, information technology and administrative personnel, as well as recruiting and professional fees, patent filing and annuity costs, insurance costs, and other general corporate expenses, including rent.

**Comparison of the Years Ended December 31, 2022 and 2021**

 *Cost of sales.* Cost of sales were a negative $0.1 million in 2021 and $0 million in 2022. We revised our expected warranty expenses due to our cessation of Argus II production and the related peripherals which resulted in a reduction of our warranty liability of $0.1 million in 2021.

 *Research and development expense.* Research and Development expense in 2021 are comprised mainly of personnel costs of approximately $1.4 million, outside service costs of $0.7 million, supply costs of $0.3 million and other costs of $0.3 million all of which are offset by grants of $0.3 million. Research and Development costs in 2022 are comprised mainly of personnel costs of approximately $1.8 million, outside service costs of $0.7 million, supply costs of $0.2 million and other costs of $0.1 million all of which are offset by grants of $0.4 million. Research and development spending in 2021 was devoted to developing the Orion device. Research and development spending during 2022 was approximately 75% for developing the Orion device and 25% for developing our new stroke recovery device.

 *Clinical and regulatory expense.* Clinical and regulatory expense increased from $0.4 million in 2021 to $0.7 million in 2022, an increase of $0.3 million, or 92%. The increase was primarily related to costs associated with the Orion feasibility study which were reinstated after the pandemic restricted our patient access. We expect clinical and regulatory costs to increase in the future as we conduct additional clinical trials, such as the future pivotal study with Orion, and if we enroll additional subjects.

 *General and administrative expense.* General and administrative expense decreased from $6.4 million in 2021 to $6.3 million in 2022, a decrease of $0.1 million, or 1%.

 *Net loss.* The net loss was $8.6 million in 2022, as compared to $8.9 million in 2021. The $0.3 million decrease in net loss from 2022 to 2021 was primarily attributable to an increase in interest income from increased rates on our cash investments.

**Liquidity and Capital Resources**

Our financial statements have been presented on the basis that our business is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We are subject to the risks and uncertainties associated with a business with no revenue that is developing novel medical devices, including limitations on our operating capital resources. We have incurred recurring operating losses and negative operating cash flows since inception, and we expect to continue to incur operating losses and negative operating cash flows for the foreseeable future.

Conducting clinical trials is a time-consuming, expensive and uncertain process that takes many years to complete and we may never generate the necessary data or results required to obtain marketing approval. We do not expect revenues until we are successful in completing the development and obtaining marketing approval for Orion. We expect expenses to increase in connection with our ongoing activities, particularly as we continue clinical trials of Orion, initiate new research and development projects and seek marketing approval for any product candidates that we successfully develop. In addition, if we obtain marketing approval for Orion, we expect to incur significant additional expenses related to sales, marketing, distribution and other commercial infrastructure to commercialize such product. In addition, our product candidates, if approved, may not achieve commercial success. We will incur significant costs associated with operating as a public company in a regulated industry.

Until such time, if ever, as we can generate substantial product revenues, we anticipate that we will seek to fund our operations through public or private equity or debt financings, grants, collaborations, strategic partnerships or other sources. However, we may be unable to raise additional capital or enter into such other arrangements when needed on favorable terms or at all. To the extent that we raise additional capital through the sale of equity, convertible debt or other equity-linked securities, the ownership interests of some or all of our common stockholders will be diluted, the holders of new equity securities may have priority rights over our existing stockholders and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing common stockholders. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If adequate funds are not available, we may be required to further curtail operations significantly or to obtain funds by entering into agreements on unattractive terms. If, for example, we raise funds through additional collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates, or to grant licenses on terms that may not be favorable to us. Our inability to raise capital could have a material adverse effect on our business, financial condition and results of operations.

Working capital was $0.3 million as of December 31, 2022, as compared to $68.0 million as of December 31, 2021. The decrease resulted from our operational losses for the year and changes in the Net Parent Investment account.

*Cash Flows from Operating Activities*

During 2022, we used $9.8 million of cash in operating activities, consisting primarily of a net loss of $8.6 million, and $1.2 million from a net change in operating assets and liabilities, offset by non-cash charges of $0.1 million for depreciation and amortization of property and equipment.

During 2021, we used $9.2 million of cash in operating activities, consisting primarily of a net loss of $8.9 million, and $0.5 million from a net change in operating assets and liabilities, offset by non-cash charges of $0.2 million for depreciation and amortization of property and equipment and stock-based compensation.

*Cash Flows from Investing Activities*

Investing activities in 2022 and 2021 used $24,000 and $14,000, respectively, of cash for the purchase of equipment.

*Cash Flows from Financing Activities*

Financing activities used $59.3 million of cash in 2022, primarily consisting of cash provided to Parent.

Financing activities provided $75.6 million of cash in 2021, including $75.6 million of Net Parent Investment.

**BUSINESS**

In March 2011, the *Argus II<sup>®</sup> Retinal Prosthesis System* was approved for commercial use in the European Union to provide visual perception in patients with profound blindness due to retinitis pigmentosa ("RP"), a rare, "orphan" condition. The device was initially available in the United Kingdom, France, Germany, and several other countries at a price of approximately USD $115,000. In February 2013, the U.S. Food & Drug Administration (FDA) approved Argus II under a Humanitarian Device Exemption, and in August 2013 the reimbursement price for Medicare patients was approved at approximately $150,000. About 350 profoundly blind people around the world have received Argus II retinal implants. Many of these patients have been using their Argus implants for more than ten years, confirming our very high manufacturing standards and product reliability. The market opportunity for the Argus II device has been limited to the small number of patients who have profound blindness due to RP, and the Argus system was discontinued in 2019 due to resulting commercial considerations.

To make artificial vision available to a much larger group of individuals who are blind due to a wide range of causes, including glaucoma, diabetic retinopathy, optic nerve injury or disease and eye injury, we designed and built our next generation system, the *Orion<sup>®</sup> Visual Cortical Prosthesis System ("Orion").* Based on a U.S. market study sponsored by Cortigent, we estimate that the total addressable market for Orion is approximately 82,000 Americans, which is roughly sixteen times larger than for Argus II, and could potentially be approximately $4 billion by the time of launch. We believe that there are substantially more blind people who could potentially benefit from Orion in Europe, Asia, and other world areas.

The Orion system, which leverages over 20 years of our experience in targeted neurostimulation for artificial vision, converts images captured by a miniature video camera mounted on glasses into a series of small electrical pulses. It is designed to bypass the diseased or injured visual pathway and to transmit these electrical pulses wirelessly to an array of electrodes implanted on the surface of the brain's visual cortex to provide the perception of patterns of light (see Figure 1). Cranial surgery is required to place the electrode array onto the brain's surface; the Orion system has been designed so as not to require penetration of the brain. In 2017 the FDA designated Orion as a Breakthrough Device.

In November 2017, we commenced an Early Feasibility Study (EFS) of Orion in six patients who enrolled at two medical sites: the Ronald Reagan UCLA Medical Center in Los Angeles ("UCLA") and the Baylor College of Medicine in Houston ("Baylor"). Regularly scheduled visits at both sites were paused in mid-March 2020 due to the COVID-19 outbreak; visits at UCLA resumed in September 2020 and at Baylor in December 2020. Three (3) of the six (6) patients were explanted after the third year of the study; only one subject of those three did not participate in the year three assessment. The result is we have three-year safety data for all six subjects, but three-year efficacy data for five of the six subjects. The EFS study results indicate that:

● <u>Orion has a good safety profile</u>: Five subjects experienced a total of seventeen adverse events (AEs) and one subject did not report any adverse events related to the device or to surgery through November 2022. One was considered a serious adverse event (SAE) and all other adverse events were not serious. The single SAE, a seizure, occurred about three months post-implant, was resolved safely and quickly, and did not require a hospital stay. The investigators determined that this SAE was device-related and not unexpected as it had been disclosed as a potential safety risk in the patient informed consent form. The SAE occurred as we attempted to explore the optimal treatment frequency, which is a key stimulation parameter. The SAE occurred at a specific frequency. All adverse events are evaluated by an independent medical safety monitoring (IMSM) committee. With the IMSM committee's input, we thereafter kept stimulation frequencies for all patients below the level that induced the SAE, and we have not observed any other seizures in this or any other participant. The FDA requires medical device manufacturers to follow 21 CFR 820 and maintain a Quality Management System (QMS). As a part of our QMS, we conform to ISO 14971, an FDA-recognized standard, to identify the hazards associated with the medical device, to estimate and evaluate the associated risks, to control these risks, and to monitor the effectiveness of the controls. There have been no serious adverse events due to the device or surgery since June 2018. One patient chose to have the device explanted before the 36th month due to an unrelated medical condition. Two other patients subsequently requested explantation for reasons unrelated to the device's efficacy or safety. Cortigent's independent medical safety monitor (IMSM) has determined that the reasons for these explants were not related to the device or the surgery.

● <u>Orion efficacy data are encouraging</u>: We assess efficacy by looking at three measures of visual function: 1) *Square localization* – Orion subjects sit in front of a touch screen and are asked to touch within the boundaries of a square when it appears; 2) *Direction of motion* – Subjects are asked to identify the direction of the motion of a line that traverses a screen; and 3) *Grating visual acuity* – a measure of visual acuity that is adapted for very low vision. Five of the six original subjects completed the planned efficacy assessments at 36 months post-implant. For *square localization*, five of five subjects performed significantly better with the system turned on versus turned off. For *direction of motion*, five of five subjects performed significantly better with the system turned on than with it turned off. For *grating visual acuity*, two of five subjects tested had measurable visual acuity with the system turned on compared to none with the device turned off.

Another efficacy measurement of day-to-day functionality and benefit is the Functional Low-Vision Observer Rated Assessment (FLORA). The FLORA assessments were performed by an independent, third-party specialist who spent time with the subjects in their homes. The specialist asked each subject a series of questions and observed them performing 15 or more daily living tasks with the Orion system turned on and with it turned off, such as finding light sources, following a sidewalk, or sorting laundry. The specialist then determined if the system was providing a benefit, was neutral, or impaired the subject's ability to perform these tasks. Four of four subjects who completed the FLORA evaluation at 36 months had positive or mildly positive results indicating that the Orion system was providing benefit. Cortigent is planning to work with the FDA to gain agreement on the additional clinical studies that will be required to secure marketing approval for Orion.

The FDA categorizes electronic medical devices that are implanted as Class III. Both the Argus II and Orion are thus Class III. Class III devices face higher burdens to attain regulatory approval; Cortigent (formerly Second Sight Medical) successfully navigated this approval process with the Argus II system. The Argus II clinical trial enrolled patients with late-stage retinitis pigmentosa, a rare disease, affecting less than four thousand Americans. This small potential market size of fewer than 8,000 individuals enabled the Argus II to qualify for a Humanitarian Device Exemption (HDE) which the FDA granted in February 2013.

In November 2017, the FDA granted an Expedited Access Pathway (EAP) designation to the Orion system to treat individuals who are bilaterally blind due to non-cortical etiology and who are not candidates for any other commercially approved vision restoration therapy. The Breakthrough Device Program (BDP) subsumed the EAP program and its devices in December 2018. The BDP is intended to accelerate medical device development, assessment, and review, while preserving the statutory standards for premarket approval. The potential patient population for Orion is expected to include blindness due to most common causes, including glaucoma, diabetic retinopathy, eye trauma, optic nerve damage, and retinitis pigmentosa. According to a company-sponsored 2018 study by Fletcher Spaght Inc., there are about 82,000 Americans who could potentially benefit from the Orion system. We plan to apply for a Breakthrough Device designation for the stroke recovery system in March 2023. If we fail to secure this designation, we may experience slower interactions with the FDA that could delay our projected development timelines.

 **We are developing a platform technology with multiple potential applications**: Our current-generation miniature neurostimulation device with 60 independent-cortical stimulation channels, supported by safety data from the Argus II and Orion programs, has the potential to treat other conditions with high unmet medical need. We believe that our most promising next target will be to apply cortical neurostimulation to improve muscle function in partially paralyzed stroke patients who are undergoing rehabilitation. The potential benefits to this patient population were evaluated several years ago in a promising U.S. Phase 2 clinical study by an unrelated company that tested a system with a single channel to stimulate the motor cortex. This study supports the feasibility of employing cortical stimulation to facilitate stroke rehabilitation. The results of the subsequent Phase 3 study, however, failed to achieve positive results and were insufficient to support an FDA marketing application, and the company was dissolved. After consulting with its former executives, we believe that our 60-channel device has the potential to overcome the technical issues that they encountered. We have filed an NIH grant application to seek non-dilutive funding to support this program. In addition, we held a pre-submission ("Pre-Sub") meeting with FDA in February 2023 to discuss commencing an Early Feasibility Study of our stroke recovery system. We plan to apply for a Breakthrough Device designation for the stroke recovery system in March 2023. If we fail to secure this designation, we may experience slower interactions with the FDA that could delay our projected development timelines.

There are approximately 7.6 million Americans living who have reported a stroke in their lifetime. (Tsao 2022). Each year approximately 610,000 Americans have a first stroke (Kissela 2012). Among the over 80% of people who survive a first stroke, the most common neurological deficit is motor weakness on one side of the body (hemiparesis), and approximately 40% of these stroke victims suffer moderate to severe motor impairment that requires special care (Gresham 1995). If our device achieves treatment success, as to which we can make no assurance, we estimate that it could potentially benefit up to 195,000 U.S. stroke victims each year.

 **We are targeting substantial revenue opportunities***:* The Orion system, designed to provide visual perception to profoundly blind people, has an addressable market of approximately 82,000 individuals in the U.S., assuming the target indication is achieved (profound blindness due to glaucoma, diabetic retinopathy, optic nerve injury or disease and eye injury), based on a study by an independent market research firm engaged by Cortigent. We believe that about one-third of these patients could be reached by a marketing program. Depending on study results to assess clinical utility, Cortigent may seek reimbursement similar to or higher than the $150,000 per device that was approved by the Centers for Medicare and Medicaid Services ("CMS") for the Argus II system.

**Competition**

The medical device industry is characterized by a rapid evolution of technologies, significant competition and strong defense of intellectual property. While we believe that our platforms, technology, knowledge, experience, and scientific resources provide us with unique competitive advantages and a leadership position, we expect to face competition from major medical device companies, academic institutions, governmental agencies, and public and private research institutions, among others.

Currently, to Cortigent's knowledge, no other medical devices comparable to the Orion system have been approved by regulatory agencies in the U.S. or Europe to restore some functional vision in persons who have become blind due to a broad range of causes. Other visual prosthesis companies with technologies under development include Pixium Vision SA that is developing the PRIMA (sub-retinal implant) in Dry-AMD patients. In 2017, Pixium announced approval for two feasibility studies of PRIMA in Dry-AMD patients. One study reportedly was in Paris with five subjects, and a second Early Feasibility Study in five patients is underway at two US sites. A pivotal study of PRIMA is underway in Europe (France, Germany, and the UK) with read-out of results expected in 2023. We are not aware of any pivotal clinical studies in the U.S.

Nano Retina Inc., a company based in Israel, is reported to have developed technology that may improve retinal prostheses in the future. A Nano Retina clinical trial is underway in Europe and Israel, and five subjects reportedly have been implanted to date. Bionic Vision Technologies, based in Australia, is developing a Bionic Eye Visual Prosthesis System, and has completed a two-year feasibility study in four patients in Australia. It has announced a partnership with Cirtec Medical in the U.S. and is believed to be planning a pivotal clinical trial.

We are aware of other certain companies that are developing electrode arrays which penetrate the brain, unlike Orion, which is placed on the brain's surface. The Illinois Institute of Technology's Intracortical Visual Prosthesis (ICVP) has been designated as a Breakthrough Device and has advanced to an early feasibility study in the U.S. To date, one subject of five has been implanted. Neuralink company has recently demonstrated a penetrating electrode cortical implant in animal models. Vision restoration is one of Neuralink's stated goals.

In the field of medical device-assisted stroke rehabilitation, MicroTransponder Inc. sells the Vivistim® FDA-approved vagus nerve stimulator (VNS). The combination of VNS with traditional rehabilitation therapy is intended to assist the brain in forming the connections necessary to regain motor function. Vivistim's method of action is similar to that proposed by Cortigent. Cortigent believes direct cortical stimulation will provide superior results to VNS.

*Physical Rehabilitation Therapy* is currently the standard of care for stroke. A trained physical therapist assists a patient in practicing prescribed physical movements lost due to stroke. It is believed that the repetition of physical movement helps remap the neural pathways in the brain lost due to stroke. Both the Vivistim system and the system proposed by Cortigent are intended to work in combination with physical rehabilitation therapy and are not a replacement for physical rehabilitation therapy. Physical therapists also teach patients how to use mobility devices such as orthoses, prostheses, canes, walkers, wheelchairs, and in some cases, robotics.

Any therapeutic candidates that we successfully develop and commercialize will compete with other vision restoration devices or currently approved therapies and new devices or therapies that may become available in the future. Many of the companies against which we may compete have significantly greater financial resources and expertise in research and development, manufacturing, preclinical testing, conducting clinical trials, obtaining regulatory approvals and marketing approved products than we do. Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. These early stage and more established competitors also compete with us in recruiting and retaining qualified scientific and management personnel and establishing clinical trial sites and patient registration for clinical trials, as well as in acquiring technologies complementary to, or necessary for, our programs.

**Government Regulation**

Government authorities in the United States, at the federal, state, and local levels, and in other countries, extensively regulate, among other things, the research, development, testing, manufacture, quality control, approval, labeling, packaging, storage, record-keeping, promotion, advertising, distribution, post-approval monitoring and reporting, marketing, and export and import of products such as those we are developing. Any pharmaceutical candidate that we develop must be approved by the United States Food and Drug Administration, or FDA, before it may be legally marketed in the United States and by the appropriate foreign regulatory agency before it may be legally marketed in foreign countries.

***FDA's Pre-market Clearance and Approval Requirements***

Each medical device we seek to commercially distribute in the United States will require either a prior 510(k) clearance, unless it is exempt, or a pre-market approval from the FDA. Generally, if a new device has a predicate that is already on the market under a 510(k) clearance, the FDA will allow that new device to be marketed under a 510(k) clearance; otherwise, a PMA is required. Medical devices are classified into one of three classes—Class I, Class II, or Class III—depending on the degree of risk associated with each medical device and the extent of control needed to provide reasonable assurance of safety and effectiveness. Class I devices are deemed to be low risk and are subject to the general controls of the FD&C Act, such as provisions that relate to: adulteration; misbranding; registration and listing; notification, including repair, replacement, or refund; records and reports; and good manufacturing practices. Most Class I devices are classified as exempt from pre-market notification under section 510(k) of the FD&C Act, and therefore may be commercially distributed without obtaining 510(k) clearance from the FDA. Class II devices are subject to both general controls and special controls to provide reasonable assurance of safety and effectiveness. Special controls include performance standards, post market surveillance, patient registries and guidance documents. A manufacturer may be required to submit to the FDA a pre-market notification requesting permission to commercially distribute some Class II devices. Devices deemed by the FDA to pose the greatest risk, such as life-sustaining, life-supporting or implantable devices, or devices deemed not substantially equivalent to a previously cleared 510(k) device, are placed in Class III. A Class III device cannot be marketed in the United States unless the FDA approves the device after submission of a PMA. However, there are some Class III devices for which FDA has not yet called for a PMA. For these devices, the manufacturer must submit a pre-market notification and obtain 510(k) clearance in orders to commercially distribute these devices. The FDA can also impose sales, marketing or other restrictions on devices to ensure that they are used in a safe and effective manner.

***510(k) Clearance Pathway***

When a 510(k) clearance is required, we must submit a pre-market notification to the FDA demonstrating that our proposed device is substantially equivalent to a predicate device, which is a previously cleared and legally marketed 510(k) device or a device that was in commercial distribution before May 28, 1976. By regulation, a pre-market notification must be submitted to the FDA at least 90 days before we intend to distribute a device. As a practical matter, clearance often takes significantly longer. To demonstrate substantial equivalence, the manufacturer must show that the proposed device has the same intended use as the predicate device, and it either has the same technological characteristics, or different technological characteristics and the information in the pre-market notification demonstrates that the device is equally safe and effective and does not raise different questions of safety and effectiveness. The FDA may require further information, including clinical data, to make a determination regarding substantial equivalence. If the FDA determines that the device, or its intended use, is not substantially equivalent to a previously cleared device or use, the FDA will place the device into Class III.

There are three types of 510(k)s: traditional; special; and abbreviated. Special 510(k)s are for devices that are modified, and the modification needs a new 510(k) but does not affect the intended use or alter the fundamental scientific technology of the device. Abbreviated 510(k)s are for devices that conform to a recognized standard. The special and abbreviated 510(k)s are intended to streamline review, and the FDA intends to process special 510(k)s within 30 days of receipt.

**De Novo *Classification***

Medical device types that the FDA has not previously classified as Class I, II or III are automatically classified into Class III regardless of the level of risk they pose. The Food and Drug Administration Modernization Act of 1997 established a new route to market for low to moderate risk medical devices that are automatically placed into Class III due to the absence of a predicate device, called the "Request for Evaluation of Automatic Class III Designation," or the *de novo* classification procedure.

This procedure allows a manufacturer whose novel device is automatically classified into Class III to request down-classification of its medical device into Class I or Class II on the basis that the device presents low or moderate risk, rather than requiring the submission and approval of a PMA application. Prior to the enactment of the Food and Drug Administration Safety and Innovation Act of 2012 ("FDASIA"), a medical device could only be eligible for *de novo* classification if the manufacturer first submitted a 510(k) pre-market notification and received a determination from the FDA that the device was not substantially equivalent. FDASIA streamlined the *de novo* classification pathway by permitting manufacturers to request *de novo* classification directly without first submitting a 510(k) pre-market notification to the FDA and receiving a not substantially equivalent determination. Under FDASIA, the FDA is required to classify the device within 120 days following receipt of the *de novo* application. If the manufacturer seeks reclassification into Class II, the manufacturer must include a draft proposal for special controls that are necessary to provide a reasonable assurance of the safety and effectiveness of the medical device. In addition, the FDA may reject the reclassification petition if it identifies a legally marketed predicate device that would be appropriate for a 510(k) or determines that the device is not low to moderate risk or that general controls would be inadequate to control the risks and special controls cannot be developed.

***Pre-market Approval Pathway***

A pre-market approval application must be submitted to the FDA for Class III devices for which the FDA has required a PMA. The pre-market approval application process is much more demanding than the 510(k) pre-market notification process. A pre-market approval application must be supported by extensive data, including but not limited to technical, preclinical, clinical trials, manufacturing and labeling to demonstrate to the FDA's satisfaction reasonable evidence of safety and effectiveness of the device.

After a pre-market approval application is submitted, the FDA has 45 days to determine whether the application is sufficiently complete to permit a substantive review and thus whether the FDA will file the application for review. The FDA has 180 days to review a filed pre-market approval application, although the review of an application generally occurs over a significantly longer period of time and can take up to several years. During this review period, the FDA may request additional information or clarification of the information already provided. Also, an advisory panel of experts from outside the FDA may be convened to review and evaluate the application and provide recommendations to the FDA as to the approvability of the device.

Although the FDA is not bound by the advisory panel decision, the panel's recommendations are important to the FDA's overall decision-making process. In addition, the FDA may conduct a preapproval inspection of the manufacturing facility to ensure compliance with the Quality System Regulation ("QSR"). The agency also may inspect one or more clinical sites to ensure compliance with FDA's regulations.

Upon completion of the PMA review, the FDA may: (i) approve the PMA which authorizes commercial marketing with specific prescribing information for one or more indications, which can be more limited than those originally sought; (ii) issue an approvable letter which indicates the FDA's belief that the PMA is approvable and states what additional information the FDA requires, or the post-approval commitments that must be agreed to prior to approval; (iii) issue a not approvable letter which outlines steps required for approval, but which are typically more onerous than those in an approvable letter, and may require additional clinical trials that are often expensive and time consuming and can delay approval for months or even years; or (iv) deny the application. If the FDA issues an approvable or not approvable letter, the applicant has 180 days to respond, after which the FDA's review clock is reset.

***Humanitarian Device Exemption***

A Humanitarian Use Device (HUD) is a "medical device intended to benefit patients in the treatment or diagnosis of a disease or condition that affects or is manifested in not more than 8,000 individuals in the United States per year." A Humanitarian Device Exemption (HDE) is an application that is similar to a pre-market approval (PMA) application but is exempt from the effectiveness requirements of the Food, Drug, and Cosmetic Act (FD&C Act). FDA approval of an HDE authorizes an applicant to market a HUD subject to certain profit and use restrictions. HUDs cannot be sold for profit, except in certain circumstances. 1. The device is intended for the treatment or diagnosis of a disease or condition that occurs in pediatric patients or in a pediatric subpopulation, and such device is labeled for use in pediatric patients or in a pediatric subpopulation in which the disease or condition occurs; or 2. The device is intended for the treatment or diagnosis of a disease or condition that does not occur in pediatric patients or that occurs in pediatric patients in such numbers that development of the device for such patients is impossible, highly impracticable, or unsafe. If an HDE-approved device does not meet either of the eligibility criteria, the device cannot be sold for profit.

***While the prior ARGUS II system was approved and marketed under a Humanitarian Device Exemption, we do not plan to pursue this pathway in connection with ORION or our stroke device.***

***Clinical Trials***

Clinical trials are almost always required to support pre-market approval and are sometimes required for 510(k) clearance. In the United States, for significant risk devices, these trials require submission of an application for an IDE to the FDA. The IDE application must be supported by appropriate data, such as animal and laboratory testing results, showing it is safe to test the device in humans and that the testing protocol is scientifically sound. The IDE must be approved in advance by the FDA for a specific number of patients at specified study sites. During the trial, the sponsor must comply with the FDA's IDE requirements for investigator selection, trial monitoring, reporting and recordkeeping. The investigators must obtain patient informed consent, rigorously follow the investigational plan and study protocol, control the disposition of investigational devices and comply with all reporting and recordkeeping requirements. Clinical trials for significant risk devices may not begin until the IDE application is approved by the FDA and the appropriate institutional review boards ("IRBs") at the clinical trial sites. An IRB is an appropriately constituted group that has been formally designated to review and monitor medical research involving subjects and which has the authority to approve, require modifications in, or disapprove research to protect the rights, safety, and welfare of human research subjects. A nonsignificant risk device does not require FDA approval of an IDE; however, the clinical trial must still be conducted in compliance with various requirements of FDA's IDE regulations and be approved by an IRB at the clinical trials sites. The FDA or the IRB at each site at which a clinical trial is being performed may withdraw approval of a clinical trial at any time for various reasons, including a belief that the risks to study subjects outweigh the benefits or a failure to comply with FDA or IRB requirements. Even if a trial is completed, the results of clinical testing may not demonstrate the safety and effectiveness of the device, may be equivocal or may otherwise not be sufficient to obtain approval or clearance of the product.

Sponsors of clinical trials of devices are required to register with clinicaltrials.gov, a public database of clinical trial information. Information related to the device, patient population, phase of investigation, study sites and investigators and other aspects of the clinical trial is made public as part of the registration.

***Ongoing Regulation by the FDA***

Even after a device receives clearance or approval and is placed on the market, numerous regulatory requirements apply. These include:

● establishment registration and device listing;

● the QSR, which requires manufacturers, including third-party manufacturers, to follow stringent design, testing, control, documentation and other quality assurance procedures during all aspects of the manufacturing process;

● labeling regulations and the FDA prohibitions against the promotion of products for uncleared, unapproved or "off-label" uses, and other requirements related to promotional activities;

● medical device reporting regulations, which require that manufactures report to the FDA if their device may have caused or contributed to a death or serious injury, or if their device malfunctioned and the device or a similar device marketed by the manufacturer would be likely to cause or contribute to a death or serious injury if the malfunction were to recur;

● corrections and removal reporting regulations, which require that manufactures report to the FDA field corrections or removals if undertaken to reduce a risk to health posed by a device or to remedy a violation of the FD&C Act that may present a risk to health; and

● post market surveillance regulations, which apply to certain Class II or III devices when necessary to protect the public health or to provide additional safety and effectiveness data for the device.

After a device receives 510(k) clearance, any modification that could significantly affect its safety or effectiveness, or that would constitute a major change in its intended use, will require a new clearance or possibly a pre-market approval. The FDA requires each manufacturer to make this determination initially, but the FDA can review any such decision and can disagree with a manufacturer's determination. If the FDA disagrees with our determination not to seek a new 510(k) clearance, the FDA may retroactively require us to seek 510(k) clearance or possibly a pre-market approval. The FDA could also require us to cease marketing and distribution and/or recall the modified device until 510(k) clearance or pre-market approval is obtained. Also, in these circumstances, we may be subject to significant regulatory fines and penalties.

Some changes to an approved PMA device, including changes in indications, labeling or manufacturing processes or facilities, require submission and FDA approval of a new PMA or PMA supplement, as appropriate, before the change can be implemented. Supplements to a PMA often require the submission of the same type of information required for an original PMA, except that the supplement is generally limited to information needed to support the proposed change from the device covered by the original PMA. The FDA uses the same procedures and actions in reviewing PMA supplements as it does in reviewing original PMAs.

FDA regulations require us to register as a medical device manufacturer with the FDA. Additionally, the California Department of Health Services ("CDHS"), requires us to register as a medical device manufacturer within the state. Because of this, the FDA and the CDHS inspect us on a routine basis for compliance with the QSR. These regulations require that we manufacture our products and maintain related documentation in a prescribed manner with respect to manufacturing, testing and control activities. We have undergone and expect to continue to undergo regular QSR inspections in connection with the manufacture of our products at our facilities. Further, the FDA requires us to comply with various FDA regulations regarding labeling. Failure by us or by our suppliers to comply with applicable regulatory requirements can result in enforcement action by the FDA or state authorities, which may include any of the following sanctions:

● warning or untitled letters, fines, injunctions, consent decrees and civil penalties;

● customer notifications, voluntary or mandatory recall or seizure of our products;

● operating restrictions, partial suspension or total shutdown of production;

● delay in processing submissions or applications for new products or modifications to existing products;

● withdrawing approvals that have already been granted; and

● criminal prosecution.

The Medical Device Reporting laws and regulations require us to provide information to the FDA when we receive or otherwise become aware of information that reasonably suggests our device may have caused or contributed to a death or serious injury as well as a device malfunction that likely would cause or contribute to death or serious injury if the malfunction were to recur. In addition, the FDA prohibits an approved device from being marketed for off-label use. The FDA and other agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses, and a company that is found to have improperly promoted off-label uses may be subject to significant liability, including substantial monetary penalties and criminal prosecution.

Newly discovered or developed safety or effectiveness data may require changes to a product's labeling, including the addition of new warnings and contraindications, and may require the implementation of other risk management measures. Further, new government requirements, including those resulting from new legislation, may be established, or the FDA's policies may change, which could delay or prevent regulatory clearance or approval of our products under development.

We are also subject to other federal, state and local laws and regulations relating to safe working conditions, laboratory and manufacturing practices.

***Patent Term Restoration and Extension***

A patent claiming a new product may be eligible for a limited patent term extension under the Hatch-Waxman Act, which permits a patent restoration of up to five years for patent term lost during product development and the FDA regulatory review. Medical device patents eligible for patent term extension are those covering medical devices approved under Section 515 of the Federal Food, Drug, and Cosmetic Act ("FFDCA"), the so-called "Class III" medical devices. The restoration period granted on a patent covering a product is typically one-half the time between the effective date of a clinical investigation involving human beings and the submission date of an application, plus the time between the submission date of an application and the ultimate approval date. Patent term restoration cannot be used to extend the remaining term of a patent past a total of 14 years from the product's approval date. Only one patent applicable to an approved product is eligible for the extension, and the application for the extension must be submitted prior to the expiration of the patent in question. A patent that covers multiple products for which approval is sought can only be extended in connection with one of the approvals. The United States Patent and Trademark Office reviews and approves the application for any patent term extension or restoration in consultation with the FDA. Only one extension is granted per product per patent. In other words, if multiple patents cover an approved product, only one patent can be extended. The patent owner may submit multiple patent applications to the USPTO based on the same regulatory review period, but ultimately one patent must be chosen for patent term extension. Similar provisions are available in Europe and other foreign jurisdictions to extend the term of a patent that covers an approved product.

***European Union***

Our products are regulated in the European Union as medical devices per the European Union Directive (93/42/EEC), also known as the Medical Device Directive. An authorized third party, Notified Body, must approve products for CE marking. The CE Mark is contingent upon continued compliance to the applicable regulations and the quality system requirements of the ISO 13485 standard.

***Other Regions***

Most major markets have different levels of regulatory requirements for medical devices. Modifications to the cleared or approved products may require a new regulatory submission in all major markets. The regulatory requirements, and the review time, vary significantly from country to country. Products can also be marketed in other countries that have minimal requirements for medical devices.

**Fraud and Abuse and Other Healthcare Regulations**

Federal and state governmental agencies and equivalent foreign authorities subject the healthcare industry to intense regulatory scrutiny, including heightened civil and criminal enforcement efforts. These laws constrain the sales, marketing and other promotional activities of medical device manufacturers by limiting the kinds of financial arrangements we may have with hospitals, physicians and other potential purchasers of our products. Federal healthcare fraud and abuse laws apply to our business when a customer submits a claim for an item or service that is reimbursed under Medicare, Medicaid or other federally funded healthcare programs. Patient privacy statutes and regulations by foreign, federal and state governments may also apply in the locations in which we do business. Descriptions of some of the U.S. laws and regulations that may affect our ability to operate follow.

***Federal Healthcare Anti-Kickback Statute***

The federal healthcare Anti-Kickback Statute ("Anti-Kickback Statute") prohibits, among other things, persons or entities from knowingly and willfully soliciting, offering, receiving or paying any remuneration, directly or indirectly, overtly or covertly, in cash or in kind, to induce or reward either the referral of an individual for, or the purchasing, leasing, ordering, or arranging for or recommending the purchase, lease, or order of any good or service for which payment may be made, in whole or in part, by federal healthcare programs, such as the Medicare and Medicaid programs. The term "remuneration" has been broadly interpreted to include anything of value, and the government can establish a violation of the Anti-Kickback Statute without proving that a person or entity had actual knowledge of the law or a specific intent to violate it. In addition, the government may assert that a claim, including items or services resulting from a violation of the Anti-Kickback Statute, constitutes a false or fraudulent claim for purposes of the federal civil False Claims Act. The Anti-Kickback Statute is subject to evolving interpretations and has been applied by government enforcement officials to many common business arrangements in the medical device industry. There are a number of statutory exceptions and regulatory safe harbors protecting certain business arrangements from prosecution under the Anti-Kickback Statute; however, those exceptions and safe harbors are drawn narrowly, and there is no exception or safe harbor for many common business activities, such as reimbursement support programs, educational and research grants or charitable donations. The failure of a transaction or arrangement to fit precisely within one or more applicable statutory exceptions or regulatory safe harbors does not necessarily mean that it is illegal or that prosecution will be pursued. However, conduct and business arrangements that do not fully satisfy all requirements of an applicable safe harbor may result in increased scrutiny by government enforcement authorities and will be evaluated on a case-by-case basis based on a cumulative review of all facts and circumstances.

***Federal Civil False Claims Act***

The federal civil False Claims Act prohibits, among other things, persons or entities from knowingly presenting, or causing to be presented, a false or fraudulent claim for payment of government funds, or knowingly making, using or causing to be made or used a false record or statement material to a false or fraudulent claim to avoid, decrease or conceal an obligation to pay money to the federal government. A claim including items or services resulting from a violation of the Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the federal civil False Claims Act. Actions under the federal civil False Claims Act may be brought by the government or as a qui tam action by a private individual in the name of the government. These individuals, sometimes known as "relators" or, more commonly, as "whistleblowers," may share in any amounts paid by the entity to the government in fines or settlement. The number of filings of qui tam actions has increased significantly in recent years. Qui tam actions are filed under seal and impose a mandatory duty on the U.S. Department of Justice to investigate such allegations. Most private citizen actions are declined by the Department of Justice or dismissed by federal courts. However, the investigation costs for a company can be significant and material even if the allegations are without merit. Various states have adopted laws similar to the federal civil False Claims Act, and many of these state laws are broader in scope and apply to all payors, and therefore, are not limited to only those claims submitted to the federal government. Medical device manufacturers and other healthcare companies are subject to other federal false claims laws, including, among others, federal criminal healthcare fraud and false statement statutes that extend to non-government health benefit programs.

***Healthcare Fraud Statute***

The federal Health Insurance Portability and Accountability Act ("HIPAA") and its implementing regulations created federal criminal statutes that prohibit, among other things, knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare benefit program, including private third-party payors knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious or fraudulent statement or representation, or making or using any false writing or document knowing the same to contain any materially false, fictitious or fraudulent statement or entry, in connection with the delivery of or payment for healthcare benefits, items or services.

***Sunshine Act***

The federal Physician Payments Sunshine Act requires certain manufacturers of drugs, devices, biologics and medical supplies for which payment is available under Medicare, Medicaid or the Children's Health Insurance Program to report annually, with certain exceptions, to CMS information related to payments or other transfers of value made to a physician or teaching hospital, or to a third party at the request of a physician or teaching hospital, and requires applicable manufacturers and group purchasing organizations to report annually to CMS ownership and investment interests held by physicians and their immediate family members. Beginning in 2022, applicable manufacturers are required to report information regarding payments and transfers of value provided to physician assistants, nurse practitioners, clinical nurse specialists, certified nurse anesthetists and certified nurse-midwives.

***Patient Data Privacy***

HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act ("HITECH Act"), and their implementing regulations impose obligations on covered entities, such as health plans, healthcare clearinghouses and certain healthcare providers, as well as business associates that provide services involving the use or disclosure of personal health information to or on behalf of covered entities. These obligations, such as mandatory contractual terms, relate to safeguarding the privacy and security of protected health information. Many states also have laws governing the privacy and security of health information in certain circumstances, many of which differ from each other in significant ways and often are not preempted by HIPAA.

***Other State Laws***

Certain states also mandate implementation of commercial compliance programs, impose restrictions on device manufacturer marketing practices and/or require tracking and reporting of gifts, compensation and other remuneration to healthcare professionals and entities.

State and federal regulatory and enforcement agencies continue to actively investigate violations of healthcare laws and regulations, and the U.S. Congress continues to strengthen the arsenal of enforcement tools. Most recently, the Bipartisan Budget Act of 2018 ("BBA") increased the criminal and civil penalties that can be imposed for violating certain federal healthcare laws, including the Anti-Kickback Statute. Enforcement agencies also continue to pursue novel theories of liability under these laws. In particular, government agencies have recently increased regulatory scrutiny and enforcement activity with respect to manufacturer reimbursement support activities and other patient support programs, including bringing criminal charges or civil enforcement actions under the Anti-Kickback Statute, federal civil False Claims Act and violations of healthcare fraud and HIPAA privacy provisions.

***Enforcement and Penalties for Noncompliance with Fraud and Abuse Laws and Regulations***

Compliance with these federal and state laws and regulations requires substantial resources. If our operations are found to be in violation of any of the laws described above or any other governmental regulations that apply to us, we may be subject to significant civil, criminal and administrative penalties, damages, fines, imprisonment, disgorgement, exclusion from participation in government healthcare programs such as the Medicare and Medicaid programs, reputational harm, administrative burdens, diminished profits and future earnings, and the curtailment or restructuring of our operations. Companies settling federal civil False Claims Act, Anti-Kickback Statute and other fraud and abuse cases also may be required to enter into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General in order to avoid exclusion from participation (i.e., loss of coverage for their products) in federal healthcare programs such as Medicare and Medicaid. Corporate Integrity Agreements typically impose substantial costs on companies to ensure compliance.

For additional information regarding obligations under federal healthcare statues and regulations, please see the section titled "Risk Factors" If we fail to comply with U.S. federal and state fraud and abuse laws and regulations, including those relating to kickbacks and false claims for reimbursement, we could face substantial penalties and our business operations and financial condition could be adversely affected.

***United States Healthcare Reform***

There have been and continue to be proposals by the federal government, state governments, regulators and third-party payors to control or manage the increased costs of healthcare and, more generally, to reform the U.S. healthcare system.

For example, in the United States in March 2010, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education and Reconciliation Act (collectively, the "ACA"), was enacted. The ACA contains a number of significant provisions, including those governing enrollment in federal healthcare programs, reimbursement changes and fraud and abuse measures, all of which will impact existing government healthcare programs and will result in the development of new programs. The ACA, among other things, imposes an excise tax of 2.3% on the sale of most medical devices.

There have been judicial and Congressional challenges to certain aspects of the ACA, as well as recent efforts to repeal or replace certain aspects of the ACA. For example, since January 2017, President Trump signed two Executive Orders and other directives designed to delay the implementation of certain provisions of the ACA or otherwise circumvent some of the requirements for health insurance mandated by the ACA. Concurrently, Congress considered legislation that would repeal or repeal and replace all or part of the ACA. While Congress has not passed comprehensive repeal legislation, two bills affecting the implementation of certain taxes under the ACA have been signed into law. The Tax Cuts and Jobs Act of 2017 ("TCJA") includes a provision repealing, effective January 1, 2019, the tax-based shared responsibility payment imposed by the ACA on certain individuals who fail to maintain qualifying health coverage for all or part of a year that is commonly referred to as the "individual mandate." On January 22, 2018, President Trump signed a continuing resolution on appropriations for fiscal year 2018 that delayed the implementation of certain ACA-mandated fees, including the 2.3% excise tax imposed on manufacturers and importers for certain sales of medical devices through December 31, 2019. The BBA, among other things, amended the ACA, effective January 1, 2019, to close the coverage gap in most Medicare drug plans, commonly referred to as the "donut hole." In July 2018, CMS published a final rule permitting further collections and payments to and from certain ACA qualified health plans and health insurance issuers under the ACA risk adjustment program in response to the outcome of federal district court litigation regarding the method CMS uses to determine this risk adjustment. On December 14, 2018, a Texas U.S. District Court Judge ruled that the ACA is unconstitutional in its entirety because the "individual mandate" was repealed by Congress as part of the TCJA. While the Texas U.S. District Court Judge, as well as the Trump administration and CMS, stated that the ruling will have no immediate effect pending appeal of the decision, it is unclear how this decision, subsequent appeals, and other efforts to repeal and replace the ACA will impact the ACA.

In addition, other legislative changes have been proposed and adopted since the ACA was enacted. On August 2, 2011, the Budget Control Act of 2011 was signed into law, which, among other things, includes reductions to Medicare payments to providers of 2% per fiscal year, which went into effect on April 1, 2013, and due to subsequent legislative amendments to the statute, including the BBA, will remain in effect through 2027 unless additional Congressional action is taken. On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law, which, among other things, reduced Medicare payments to several providers, including hospitals, and increased the statute of limitations period for the government to recover overpayments to providers from three to five years.

Further, there has been heightened governmental scrutiny recently over the manner in which manufacturers set prices for their marketed products, which has resulted in several U.S. Congressional inquiries, and proposed and enacted federal and state legislation designed to bring transparency to product pricing and reduce the cost of products and services under government healthcare programs. Congress and the Trump administration each indicated that they would continue to seek new legislative and/or administrative measures to control product costs. Additionally, regional healthcare authorities and individual hospitals are increasingly using bidding procedures to determine what products to purchase, and which suppliers will be included in their healthcare programs.

**Facilities**

Our headquarters are in Valencia, California. We currently lease office space with approximately 17,200 square feet under a lease which commenced February 1, 2021, which expires on March 31, 2023, and under which we pay $17,000 per month. On February 1, 2023 we entered into a lease agreement, effective March 1, 2023, to sublease office space to replace our existing headquarters. Our rental payments amount to $22,158 per month plus operating expenses, to lease 51,500 square feet of office space at 27200 Tourney Road, Valencia, California 91355. The sub-lease has a term of two years and two months. We also entered into a lease for storage space on January 25, 2023 in the same building at a cost of $6,775 per month for a term of two years and one month. Additionally, we intend to maintain our business model designed to leverage virtual technology to minimize brick and mortar facilities while optimizing our ability to attract top talented employees who may reside in any geography. As a material inducement for the lessor to execute the lease with us Vivani guaranteed the prompt payment of all rents and all other sums payable under the lease together with all other terms and conditions to be kept and performed by us under the lease.

**Employees**

As of December 31, 2022, we had a total of 13 full-time employees and no part-time employees. We believe that we maintain a satisfactory working relationship with our employees, and we have not experienced any significant labor disputes or any difficulty in recruiting staff for our operations. None of our employees is represented by a labor union.

**Human Capital Resources**

***Employee Engagement, Talent Development & Benefits****.* We believe that our future success largely depends upon our continued ability to attract and retain highly skilled employees. We expect to provide our employees with competitive salaries and bonuses, and opportunities for equity ownership.

***Diversity, Inclusion, and Culture****.* We believe that our success will also be rooted in the diversity of our teams and our commitment to inclusion. We value diversity at all levels and expect to continue to focus on extending our diversity and inclusion initiatives across our entire workforce. We believe that our business will benefit from the different perspectives a diverse workforce brings.

**Legal Proceedings**

Other than single currently pending opposition in the European Patent Office (EPO) challenging the validity of European patent no. EP2185236 titled "*Implantable Device for the Brain"* owned by Cortigent, described above, we are not party to any material legal proceedings. From time to time, we may be involved in legal proceedings or subject to claims incident to the ordinary course of business. Regardless of the outcome, such proceedings or claims can have an adverse impact on us because of defense and settlement costs, diversion of resources, and other factors, and there can be no assurances that favorable outcomes will be obtained.

**MANAGEMENT**

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| | | |
|:---|:---|:---|
| **NAME** | **AGE** | **POSITION** |
| **Executive officers** |  |  |
| Jonathan Adams | 59 | Chief Executive Officer and Director Nominee |
| Edward Sedo | 66 | Principal Accounting Officer |
| **Directors and Director Nominees** |  |  |
| Adam Mendelsohn | 41 | Chairman of the Board of Directors |
| David Diamond | 72 | Director Nominee |
| James Lang | 58 | Director Nominee |
| Linda Szyper | 57 | Director Nominee |

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Jonathan Adams, MBA, Chief Executive Officer and Director Nominee**:** Mr. Adams joined the Company as a consultant in November 2022, and was appointed Chief Executive Officer in March 2023. Mr. Adams will join our board of directors upon completion of this offering. Prior to joining Cortigent, from 2007 to mid-2022, Mr. Adams served in several executive roles, including CEO, COO, and Executive Vice President, at BioVie Inc., the company he founded in 2007. He led its successful up-listing to NASDAQ that raised substantial funding for operations. In addition to founding the company, he was a co-inventor on patents and co-author on publications. He has over 30 years of biopharmaceutical and device industry experience, including corporate finance, acquisitions and licensing, marketing, and sales support. From 1994 to 2000, Mr. Adams served as Associate Director at Searle Pharmaceuticals, where he was a member of the global launch team for the arthritis drug Celebrex, which generated multi-billion dollars in sales. Mr. Adams also has extensive experience assisting companies with launching new drugs and medical devices. Mr. Adams earned a BS from Cornell University and an MBA from the Tuck School at Dartmouth.

Edward Sedo, CPA, Principal Accounting Officer: Mr. Sedo serves as Controller of Vivani Medical, Inc. since completion of acquisition of NPM by Second Sight in September 2022. Prior to that, he served at Second Sight as Acting Principal Accounting Officer from September 2020 to August 2022, and Manager of Financial Reporting since February 2015. Prior to this, Mr. Sedo served as Assistant Controller at Calavo Growers, a publicly traded produce company from March 2008 to November 2014. Mr. Sedo served as the VP, Financial Reporting at Countrywide Financial Corporation, a publicly traded mortgage company, from December 2004 to March 2008. Mr. Sedo is a Certified Public Accountant and holds a BBA in accounting from the University of Michigan-Dearborn.

Adam Mendelsohn, PhD, Chairman of the Board: Dr. Mendelsohn is a member of our Board since inception. He is Chief Executive Officer and member of the Board of Directors of Vivani since August 2022. Dr. Mendelsohn founded Nano Precision Medical and served as its CEO from 2009 until its acquisition by Second Sight in August 2022. Dr. Mendelsohn received his Ph.D. in bioengineering at the UC San Francisco/UC Berkeley Joint Graduate Group in Bioengineering, was awarded an NSF fellowship to perform research at Kyoto University and has published multiple peer-reviewed articles describing new treatment options for Type 1 diabetes. Dr. Mendelsohn has served as a Technical Advisor to the Alfred E. Mann Institute for Biomedical Engineering at USC, a fellow of the Startup Leadership Program, and is currently a board member of the Maestro Foundation. Dr. Mendelsohn also served as the director for the Venture Innovation Program in Life Sciences and completed his certificate in Management of Technology with the Haas School of Business. The Board believes that Dr. Mendelsohn's educational attainments and engineering expertise, combined with his 14 years of executive management experience at Nano Precision Medical after having founded the company in 2009 and subsequently with Vivani, qualify him to serve as the Chairman of our Board.

David Diamond, Director Nominee: Mr. Diamond has agreed to serve on our board of directors as an independent director following completion of this offering. He has been Managing Director at CBIZ, Inc. since 2005. He has more than 40 years of experience in public accounting and the public accounting industry. He has served as President of his own manufacturing company as well as Finance Director for a division of Allied Signal. In public accounting, Mr. Diamond was an instrumental team member that helped grow two local CPA firms that were later acquired by national CPA firms. Mr. Diamond has served as Director of Communication Solutions and as the lead independent director and Audit Committee Chair for RenovoRx, Inc. from 2021 to the present. He also served as a director for Valentix from 2021 to 2022. The Board believes that Mr. Diamond's extensive public accounting experience, his senior executive leadership skills and his deep understanding of finance, strategy, operations and risk management qualifies him to serve as a member of our Board.

James Lang, MBA, Director Nominee: Mr. Lang has agreed to serve on our board of directors as an independent director following completion of this offering. He has been CEO of EVERSANA, Inc., a leading life sciences company, since 2017. He has served as an Executive Advisor to Water Street Healthcare Partners since 2016. From 2012 to 2016 he was the CEO of Decision Resources Group, which he transformed into a leading healthcare data and analytics firm. Prior to that, Mr. Lang was CEO of IHS Cambridge Energy Research Associates, a recognized leader in energy industry subscription information products, and was formerly the President of Strategic Decisions Group, a leading global strategy consultancy. He also serves as a member of the Board of Directors for two publicly traded companies, BioVie Inc. and OptimizeRX. Mr. Lang holds a BS summa cum laude in electrical and computer engineering from the University of New Hampshire and an MBA with Distinction from the Tuck School of Business. The Board believes that Mr. Lang's senior managerial experience, his service on boards of two Nasdaq listed pharma and life sciences companies, and his seasoned knowledge of corporate governance qualifies him to serve as a member of our Board.

Linda Szyper, MBA, Director Nominee: Ms. Szyper has agreed to serve on our board of directors as an independent director following completion of this offering. She has served as Chief Operating Officer of McCann Health from 2018 to 2021, where she was responsible for the overall operations of its global healthcare network. From 2014 to 2017 she was the Chief Commercial Officer at Circassia Pharmaceuticals, a publicly traded biotechnology and medical device company headquartered in the United Kingdom, where she spearheaded business strategy and commercial direction. Prior to Circassia, she was Chief Development Officer of the Publicis Healthcare Communications Group, which followed executive roles at Searle Pharmaceuticals and Serono Laboratories. Ms. Szyper was a member of the Board of Directors of Neos Therapeutics Inc. and currently sits on the Board of Harmony Biosciences. She earned a BS in Biomedical Engineering from Northwestern University and an MBA from DePaul University. The Board believes that Ms. Szyper's senior managerial experience, her abilities in spearheading strategy and commercial direction for pharma and healthcare companies and her service on the boards of Nasdaq listed health care companies qualifies her to serve as a member of our Board.

**Vivani Advisors to the Company**

Truc Le, MBA, Consulting Chief Operations Officer<u>:</u> Vivani will provide the services of its Chief Operating Officer on an interim basis to consult on operations matters, such as manufacturing planning and interactions with contract manufacturers. Mr. Le brings over 35 years of manufacturing, quality, and overall operations experience with devices and complex drug-device combination products. Mr. Le has served as COO of Vivani since September 2022 and prior to that he served as COO of Nano Precision Medical, Inc., from 2020 until its acquisition in September 2022. From 2011 to March 2020, Mr. Le was the Chief Technical Operations Officer for Dance Biopharm, a leader in aqueous respiratory therapy delivery. As the Chief Technical Operations Officer, he built operations, quality systems, manufacturing, supply chain, and IT. From 2009 to 2011, Mr. Le was the Chief Operating Officer for Avid Bio Services, Inc. From 2007 to 2009, Mr. Le served as the EVP Manufacturing and Quality for PrimaBiomed, a cell therapy company. From 2001 to 2007, Mr. Le was Senior Vice President of Operations, Product Development, Quality, and Regulatory Affairs for Nektar Therapeutics. Mr. Le has a BS in mechanical engineering and an MBA in Management. See "Certain Relationships and Related Party Transactions."

Donald Dwyer, MBA, Consulting Chief Business Officer<u>:</u> Vivani will provide the services of its Chief Business Officer on an interim basis to consult on business development matters, such as strategic partnering and commercial readiness. Mr. Dwyer serves as Chief Business Officer and corporate secretary of Vivani and served as CBO of Nano Precision Medical (NPM) since 2021 until its acquisition by Vivani in September 2022. Prior to this, Mr. Dwyer was consultant to NPM and an observer to NPM's Board of Directors from 2016-2019. He is a science-based business leader with over 40 years of experience in the biopharmaceutical industry. From 1995–2019, Mr. Dwyer held leadership positions at AstraZeneca in business development, US commercial brand management, sales, and drug development. Mr. Dwyer was also US commercial leader for Toprol-XL (hypertension), Onglyza (diabetes), Seroquel (bipolar disorder) and Abraxane (cancer). At Cephalon (now Teva Pharmaceuticals) Mr. Dwyer was the head of regulatory affairs from 1993–1995 and from 1986–1993 he was with Rhone-Poulenc Rorer (now Sanofi-Aventis). Mr. Dwyer is a graduate of the University of Central Connecticut and holds an MBA from the Temple University Fox School of Business. See "Certain Relationships and Related Party Transactions."

**Election of Officers and Family Relationships**

Our executive officers are appointed by, and serve at the discretion of, our board of directors. There are no family relationships among any of our directors or executive officers.

**Code of Business Conduct and Ethics**

Our board of directors has adopted a code of business conduct and ethics that will apply to all employees, officers and directors, including our Chief Executive Officer, Chief Financial Officer and other executive and senior financial officers. The full text of our code of business conduct and ethics will be available on the investor relations page on our website. We intend to post any amendment to our code of business conduct and ethics, and any waivers of such code for directors and executive officers, on our website with our business conduct and ethics, or in filings under the Exchange Act.

**Board of Directors**<br> **Controlled Company Exemption**<br>We will be a "controlled company" within the meaning of the corporate governance standards of Nasdaq. As a result, we qualify for exemptions from, and have elected not to comply with, certain corporate governance requirements under the rules, including the requirements that within one year of the completion of this offering we have a board that is composed of a majority of "independent directors," as defined under the rules, and a compensation committee and a nominating and corporate governance committee that are composed entirely of independent directors. Even though we are a controlled company, we are required to comply with the rules of the SEC and Nasdaq relating to the membership, qualifications, and operations of the audit committee, as discussed below.<br>The rules of Nasdaq define a "controlled company" as a company of which more than 50% of the voting power for the election of directors is held by an individual, a group or another company. Upon the completion of this offering, Vivani will beneficially own all outstanding shares of our common stock, representing approximately % of the voting power of our common stock (or approximately % if the underwriters exercise their option to purchase additional shares of our common stock in full). Through its control of shares of common stock representing a majority of the votes entitled to be cast in the election of directors, Vivani will have the ability to control the vote to elect all of our directors. Accordingly, we will qualify as a "controlled company" under the listing requirements of Nasdaq and will be able to rely on the exemptions described above. If we cease to be a controlled company and our common stock continues to be listed on Nasdaq, we will no longer be able to rely on such exemptions by the date our status as a controlled company changes or within specified transition periods applicable to certain provisions, as the case may be. For example, we will have one year from the date of our status change to comply with the requirement that our board of directors must be comprised of a majority of independent directors.

**Director Independence**

In connection with this offering, we intend to list our common stock on the Nasdaq Capital Market. Under the rules of The Nasdaq Stock Market, independent directors must comprise a majority of a listed company's board of directors within a specified period of time after the completion of an initial public offering. In addition, the rules of The Nasdaq Stock Market require that, subject to specified exceptions, each member of a listed company's audit, compensation and nominating and corporate governance committees be independent. Under the rules of The Nasdaq Stock Market, a director will only qualify as an "independent director" if, in the opinion of that company's board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Securities Exchange Act of 1934, as amended, or the Exchange Act. In order to be considered independent for purposes of Rule 10A-3, a member of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: (1) accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries; or (2) be an affiliated person of the listed company or any of its subsidiaries.

Our board of directors has undertaken a review of the independence of each director and considered whether each director has a material relationship with us that could compromise or impair such director's ability to exercise independent judgment in carrying out his or her responsibilities. As a result of this review, our board of directors has determined that each of David Diamond, Jim Lang and Linda Szyper are "independent directors" as defined under the applicable rules and regulations of the Securities and Exchange Commission, or SEC, and the listing requirements and rules of The Nasdaq Stock Market.

**Committees of the Board of Directors**

Our board of directors has established an audit committee, a compensation committee and a nominating and governance committee, each of which will have the composition and responsibilities described below. Our board of directors will appoint a chair of each committee upon its establishment. Members will serve on these committees until their resignation or as otherwise determined by our board of directors.

***Audit Committee***

David Diamond, James Lang and Linda Szyper, each of whom is a non-employee nominee member of our board of directors, have been designated to serve on our audit committee upon completion of this offering. Mr. Diamond will serve as the chair of our audit committee. Rule 10A-3 of the Exchange Act and the corporate governance standards of Nasdaq require that our audit committee have at least one independent member upon the listing of our common stock, have a majority of independent members within 90 days of the date of this prospectus and be composed entirely of independent members within one year of the date of this prospectus. Our board of directors has determined that David Diamond, James Lang, and Linda Szyper meet the definition of "independent director" for the purposes of serving on our audit committee under Rule 10A-3 of the Exchange Act and the corporate governance standards of Nasdaq. Our board of directors has determined that each director appointed to our audit committee is financially literate. Our board of directors has determined that Mr. Diamond is an "audit committee financial expert" as such term is defined in Item 407(d)(5) of Regulation S-K.

The written charter for our audit committee will be available on our website. The information contained in, or that can be accessed through, our website is not incorporated by reference in, and is not part of, this prospectus. The audit committee will be responsible for, among other things:

● appointing, overseeing, and if need be, terminating any independent auditor;

● assessing the qualification, performance and independence of our independent auditor;

● reviewing the audit plan and pre-approving all audit and non-audit services to be performed by our independent auditor;

● reviewing our financial statements and related disclosures;

● reviewing the adequacy and effectiveness of our accounting and financial reporting processes, systems of internal control and disclosure controls and procedures;

● reviewing our overall risk management framework;

● overseeing procedures for the treatment of complaints on accounting, internal accounting controls, or audit matters;

● reviewing and discussing with management and the independent auditor the results of our annual audit, reviews of our quarterly financial statements and our publicly filed reports;

● reviewing and approving proposed related person transactions; and

● preparing the audit committee report that the SEC requires in our annual proxy statement.

***Compensation Committee***

Linda Szyper, David Diamond, and James Lang will comprise our compensation committee upon completion of this offering. Linda Szyper will serve as the chair of our compensation committee. Our board of directors has determined that each of these persons meets the requirements for independence under the rules of The Nasdaq Stock Market and the SEC and is an "outside director" within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended, or the Code. The written charter for our compensation committee will be available on our website. The information contained in, or that can be accessed through, our website is not incorporated by reference in, and is not part of, this prospectus. The compensation committee will be responsible for, among other things:

● reviewing the elements and amount of total compensation for all officers;

● formulating and recommending any proposed changes in the compensation of our Chief Executive Officer for approval by the board;

● reviewing and approving any changes in the compensation for officers, other than our Chief Executive Officer;

● administering our equity compensation plans;

● reviewing annually our overall compensation philosophy and objectives, including compensation program objectives, target pay positioning and equity compensation; and

● preparing the compensation committee report that the SEC will require in our annual proxy statement.

***Nominating and Governance Committee***

James Lang and Linda Szyper will comprise our nominating and governance committee upon completion of this offering. Our board of directors has determined that each of these nominees meets the requirements for independence under the rules of The NASDAQ Stock Market for service on this committee. The nominating and governance committee will be responsible for, among other things:

● evaluating and making recommendations regarding the composition, organization and governance of our board of directors and its committees,

● identifying, recruiting and nominating director candidates to the board, if and when necessary;

● evaluating and making recommendations regarding the creation of additional committees or the change in mandate or dissolution of committees,

● reviewing and making recommendations with regard to our corporate governance guidelines and compliance with laws and regulations, and

● reviewing and approving conflicts of interest of our directors and corporate officers, other than related person transactions reviewed by the audit committee.

Our nominating and governance committee operates under a written charter adopted by our board of directors, which satisfies the applicable listing standards of The Nasdaq Stock Market.

**Compensation Committee Interlocks and Insider Participation**

None of the prospective members of our compensation committee is or has been an officer or employee of our company. None of our executive officers currently serves, or in the past year has served, as a member of the compensation committee or director (or other board committee performing equivalent functions or, in the absence of any such committee, the entire board of directors) of any entity that has one or more executive officers who will serve on our compensation committee or our board of directors.<br>**Code of Business Conduct and Ethics**

Upon the completion of this offering, we will adopt a Code of Business Conduct and Ethics that applies to all employees and each of our directors and officers, including our principal executive officer and principal financial officer. The purpose of the Code of Business Conduct and Ethics will be to promote, among other things, honest and ethical conduct, full, fair, accurate, timely, and understandable disclosure in public communications and reports and documents that we file with, or submit to, the SEC, compliance with applicable governmental laws, rules and regulations, accountability for adherence to the code and the reporting of violations thereof. The Code of Business Conduct and Ethics will be available on our website. The information contained in, or that can be accessed through, our website is not incorporated by reference in, and is not part of, this prospectus.

**Non-Employee Director Compensation**

Members of our board of directors did not receive compensation for their service as directors for the year ended December 31, 2021. Each of our non-employee directors will be paid an annual retainer of $36,000 for service on the Board of Directors. The Chairman of our Board will receive an annual retainer of $. Each of our non-employee directors who serves as a committee chair will receive, in addition to the annual retainer, an additional retainer of $ per year for his or her service as committee chair and non-chair committee members receive an additional retainer of $ per year; provided, however, the Audit Committee chair's additional retainer is $ per year and each non-chair Audit Committee member's additional retainer is $ per year. All fees will be paid in shares of our stock on the day of each year and the stock price per share value shall be determined by an average closing price of our stock for the preceding twenty trading days of our common stock on its principal exchange.

**Directors' Service Contracts** 

There are no arrangements or understandings between us, on the one hand, and any of our directors, on the other hand, providing for benefits upon termination of their employment or service as directors of our company.

**Limitation on Liability and Indemnification Matters**

Our certificate of incorporation contains provisions that limit the liability of our directors for damages to the fullest extent permitted by Delaware law. Consequently, none of our directors will be personally liable to us or our stockholders for damages as a result of an act or failure to act in his or her capacity as a director, unless:

● the presumption that directors are acting in good faith, on an informed basis, and with a view to the interests of the corporation has been rebutted; and

● it is proven that the director's act or failure to act constituted a breach of his or her fiduciary duties as a director and such breach involved intentional misconduct, fraud or a knowing violation of law.

We have entered into indemnification agreements with each of our directors and executive officers. Each indemnification agreement provides for indemnification and advancements by High Roller of certain expenses and costs relating to claims, suits or proceedings arising from his or her service to High Roller or, at our request, service to other entities, as officers or directors to the maximum extent permitted by applicable law.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the registrant pursuant to the foregoing provisions, the registrant has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**EXECUTIVE AND DIRECTOR COMPENSATION**

**Summary Compensation Table**

The following table provides information regarding the compensation of our named executive officers during 2022. As an emerging growth company, we have elected to comply with the executive compensation disclosure rules applicable to "smaller reporting companies," as such term is defined in the rules promulgated under the Securities Act of 1933, as amended, or the Securities Act, which require compensation disclosure for our principal executive officer and the two most highly compensated executive officers other than our principal executive officer. Throughout this prospectus, these three officers are referred to as our "named executive officers."

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Principal Positions** | **Salary**<br> **($)** | **Bonus (A)**<br> **($)** | **Option** <br> **Awards (3)** | **All Other**<br> **Compensation**<br> **($)** | **Total**<br> **($)** |
|  Jonathan Adams,<sup>(1)(2)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Chief Executive Officer |  |  |  |  |  |
| Adam Mendelsohn<sup>(1)</sup> Chair |  |  |  |  |  |
| Edward Sedo, Chief Accounting Officer | 175000 | 52500 |  |  | 227500 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) During the year ended December 31, 2022 we did not pay any compensation
 for services rendered by Jonathan Adams and Adam Mendelsohn. Dr. Mendelsohn received compensation from Vivani for services
 performed for us and for Vivani.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Mr. Adams was appointed as our acting President in January 2023 and as our Chief Executive Officer in
March 2023.

&nbsp;&nbsp;&nbsp;&nbsp;(3) As of December 31, 2022 we had not issued any equity grants to
 any of our named executive officers.

**Executive Officer Employment** 

As of January 2023, we commenced to pay Mr. Adams $25,000 per month for his services to us. In March 2023 we entered into an at will letter agreement with him by which we appointed Mr. Adams as Chief Executive Officer. We agreed to pay Mr. Adams a base salary of $350,000 per year commencing as of March 1, 2023, and he may receive a one-time signing bonus of up to $50,000 within 45 days after the offering described in this prospectus is completed.

Upon Board approval following completion of this offering, Mr. Adams will be issued an option to purchase 400,000 shares of our common stock. The strike price per share will be the price at which shares of common stock are initially sold to the public in this offering. Options to purchase 100,000 shares will vest on November 10, 2023 and the balance shall vest in approximately equal monthly installments over the ensuing 36 months. Our employment agreement with Mr. Adams states that it is "at will," that it is not for any specified period of time and that either he or we can terminate the employment relationship at any time with or without cause. Mr. Adams will be reimbursed for his reasonable travel expenses and will be eligible to participate in all employee benefits and benefit plans that we may make available to other similarly situated employees.

**Pension Benefits and Nonqualified Deferred Compensation**

We do not provide a defined benefit pension plan for our employees, and none of our named executive officers participated in a nonqualified deferred compensation plan in 2022.

**Non-Equity Incentive Plan Compensation**

We do not provide a non-equity compensation plan for our employees.

**Employee Benefit and Stock Plan**

In 2023, our board of directors adopted a 2023 Equity Incentive Plan referred to herein as our "Plan". Our Plan permits the award of incentive stock options as described in section 422(b) of the Internal Revenue Code of 1986, as amended and of non-qualified stock options (i.e., options that are not incentive stock options), to our employees and any parent and subsidiary corporation's employees. Our Plan also permits option grants to directors, certain independent contractors who provide services to us. These awards offer our employees, consultants, and directors the possibility of future value, depending on the long-term price appreciation of our common stock and the award holder's continuing service with our company or one or more of its subsidiaries.

*Shares Available*

*Plan administration*. The Plan is administered by the compensation committee which consists of persons appointed by our board of directors. The compensation committee has the authority to determine the terms and conditions of awards, and to interpret and administer the Plan.

*Stock options*. Stock options may be granted under our Plan. The term of an incentive stock option may not exceed 10 years. The committee determines the exercise price of an option at the time of grant. Normally, the exercise price will be not less than the fair market value of the security on the date of grant, as determined in good faith by the board or committee. As a matter of tax law, the exercise price for any incentive stock option awarded may not be less than the fair market value of the shares on the date of grant. However, incentive stock option grants to any person owning more than 10% of our voting stock must have an exercise price of not less than 110% of the fair market value on the grant date. Payment of the exercise price may be made in cash, shares, or other property acceptable to the committee, as well as other types of consideration permitted by applicable law. After the termination of service of an employee, director, or consultant, he or she may exercise his or her option for the period of time stated in his or her option agreement. Generally, if termination is due to death or disability, the option will remain exercisable for 12 months. In all other cases, the option will generally remain exercisable for thirty days following the termination of service (subject to extension upon approval of the Committee). However, in no event may an option be exercised later than the expiration of its term. Subject to the provisions of our Plan, the committee determines the other terms of options.

*Non-transferability of awards*. Unless the committee provides otherwise, our Plan generally does not allow for the transfer of awards and only the recipient of an award may exercise an award during his or her lifetime.

*Certain adjustments*. In the event of certain changes in our capitalization, to prevent diminution or enlargement of the benefits or potential benefits available under our Plan, the committee will adjust the number and class of shares that may be delivered under our Plan and/or the number, class and price of shares covered by each outstanding award and the numerical share limits set forth in our Plan. In the event of our proposed liquidation or dissolution, the committee will notify participants as soon as practicable, and all awards will terminate immediately prior to the consummation of such proposed transaction.

*Merger or change in control*. Our Plan provides that in the event of a merger or change in control, as defined under the Plan, each outstanding award will be treated as provided for in the individual award agreement.

*Amendment, termination*. Our board of directors will have the authority to amend, suspend or terminate the Plan provided such action does not require stockholder approval and will not impair the existing rights of any participant.

 **PRINCIPAL SHAREHOLDER**

The following table sets forth information with respect to the beneficial ownership of our shares as of the date of this prospectus and after this offering by (i) each person or entity known by us to beneficially own 5% or more of our outstanding shares; (ii) each of our directors and executive officers individually; and (iii) all of our executive officers and directors as a group.

Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to shares of common stock. For purposes of the table below, we deem shares subject to options that are currently exercisable or exercisable within 60 days of December 31, 2022, to be outstanding and to be beneficially owned by the person holding the options for the purposes of computing the percentage ownership of that person but we do not treat them as outstanding for the purpose of computing the percentage ownership of any other person. The percentage of shares beneficially owned prior to the offering is based on 20 million shares of common stock outstanding as of December 31, 2022. The number of shares of common stock deemed outstanding after this offering includes the shares of common stock being offered for sale in this offering but assumes no exercise by the representative of the underwriters of the over-allotment option.

As of December 31, 2022, Vivani was our sole shareholder and held 20 million shares in the aggregate constituting 100% of our issued and outstanding shares of common stock.

All of our shareholders, including the persons listed below, have the same voting rights attached to their shares of common stock. See "Description of Securities-Common Stock," Following the closing of this offering, neither our principal shareholders nor our directors and executive officers will have different or special voting rights with respect to their shares of common stock. Unless otherwise noted below, each director's, officer's and shareholder's address is care of Cortigent, Inc., 27200 Tourney Road, Suite 315, Valencia, California 91355.

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| | | | |
|:---|:---|:---|:---|
|  | **No. of Shares<br> Beneficially<br> Owned<br> Prior to this<br> Offering** | **Percentage Owned**<br> **Before this**<br> **Offering <sup>(1)</sup>** | **Percentage<br> Owned<br> After this<br> Offering** |
| **Holders of more than 5% of our voting securities:** |  |  |  |
| Vivani Medical, Inc. (1) | 20000000 | 100% |  |
| **Directors, Director Nominees and executive officers who are not 5% holders:** |  |  |  |
| Jonathan Adams |  |  |  |
| Dr. Adam Mendelsohn (1) |  |  |  |
| Edward Sedo |  |  |  |
| David Diamond |  |  |  |
| James Lang |  | —% |  |
| Linda Szyper |  | —% |  |

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All directors and executive officers as a group (persons)

(1) Vivani is a public company whose shares are listed for trading on the Nasdaq Capital Market. The
voting and dispositive decisions with respect to these shares of common stock are made by the board of directors of Vivani, consisting
of five individual members including Dr. Adam Mendelsohn. Dr. Mendelsohn disclaims beneficial ownership of the shares of common
stock held by Vivani except to the extent of his pecuniary interest, if any, in such shares. The address of Vivani Medical, Inc.
is 5858 Horton Street #280, Emeryville, California 94608.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

The following is a description of transactions or series of transactions since January 1 , 2021 or any currently proposed transaction, to which we were or are to be a participant and in which the amount involved in the transaction or series of transactions exceeds $120,000, and in which any of our directors, executive officers or persons whom we know hold more than five percent of any class of our capital stock, including their immediate family members, had or will have a direct or indirect material interest, other than compensation arrangements with our directors and executive officers.

Vivani Medical, Inc. is the resulting entity of the August 25, 2022 merger of Nano Precision Medical Inc. into Second Sight Medical Products, Inc. Vivani caused Cortigent to be formed as a Delaware corporation in November 2022. In December 2022 Vivani and Cortigent entered into an Asset Contribution Agreement by which Vivani contributed all of Second Sight's neurostimulation assets and operations to Cortigent. These assets included all patents, know-how, regulatory approvals, clinical data related to the *Argus II<sup>®</sup> Retinal Prosthesis System*, the *Orion<sup>®</sup> Visual Cortical Prosthesis System*, NIH grants, inventory and all other rights and interests which are necessary for, or are part of, the operations of Cortigent's business.

On February 1, 2023 we entered into a lease agreement, effective March 1, 2023, to sublease office space to replace our existing headquarters. See "Business-Facilities." As a material inducement for the lessor to execute the lease with us Vivani guaranteed the prompt payment of all rents and all other sums payable under the lease together with all other terms and conditions to be kept and performed under the lease by the lessee.

In March 2023, the Company and Vivani entered into a Transition Funding, Support and Services agreement by which Vivani will advance funds and provide or cause to be provided to the Company the services and funding that will cover salaries and related costs, rent and other overhead in order to permit the Company to operate in substantially the same manner in which business operations of the Company were previously operated by Second Sight, prior to the formation of Cortigent, which obligations will continue, in the case of the funding obligations, until (i) the earlier of December 31, 2024 or (ii) receipt of proceeds from this offering.

As part of this funding and support agreement, Vivani has also agreed to provide the services of its Chief Operating Officer, Truc Le, on an interim basis to consult on operations matters, such as manufacturing planning and interactions with contract manufacturers and the services of its Chief Business Officer, Donald Dwyer, on an interim basis to consult on business development matters, such as strategic partnering and commercial readiness. See "Management – Vivani Advisors to the Company." We will also be providing to Vivani the services of Edward Sedo, our principal accounting officer, and the services of our senior in-house patent counsel. We and Vivani have acknowledged that any such services which we provide to the other before the completion of this offering are deemed to be equivalent in value and shall offset the value of the services provided to the other. As a result we each have acknowledged to the other that neither of us shall accrue any service fees or expenses to the other before completion of this offering and that no invoices from one of us to the other shall be required to be submitted.

If after the termination date of the Agreement the Company requires additional funds or services, the Company and Vivani shall negotiate in good faith for the charges to be incurred for providing these services, but Vivani shall be under no obligation to provide any additional funding or services. Nothing in this agreement shall grant Vivani or its employees or agents who are providing services the right directly or indirectly to control or direct the operations of the Company. Each of the parties shall invoice the other monthly for the services supplied and the unpaid balance thereon. The unpaid balances of such invoices shall bear interest at the rate of 5.0% per year. All amounts paid or advanced by or due to Vivani under the Agreement inclusive of accrued interest shall be due on the earlier of the end date of the agreement or upon receipt of proceeds from this offering, or at any later date or dates as may be agreed upon by us and Vivani. By this Agreement Vivani and we have agreed to indemnify and hold each other harmless from certain matters relating to, arising out of or resulting from the operations of Second Sight's business before August 30 2022.

***Vivani as Our Controlling Stockholder***

Vivani currently owns 100% of our outstanding common stock. Upon completion of this offering, Vivani will hold approximately % of our outstanding common stock (or approximately % if the underwriters exercise their option to purchase additional shares in full).

For as long as Vivani continues to control more than 50% of our outstanding common stock, Vivani or its successor-in-interest will be able to direct the election of all the members of our board of directors. Similarly, Vivani will have the power to determine matters submitted to a vote of our stockholders without the consent of our other stockholders, will have the power to prevent a change in control of Cortigent and will have the power to take certain other actions that might be favorable to Vivani. In addition, the master separation agreement will provide that, as long as Vivani beneficially owns at least 50% of the total voting power of our outstanding capital stock entitled to vote in the election of our board of directors, we will not (without Vivani's prior written consent) take certain actions, such as incurring additional indebtedness and acquiring businesses or assets or disposing of assets in excess of certain amounts.

Vivani has agreed not to sell or otherwise dispose of any of our common stock for a period of 12 months from the date of this prospectus without the prior written consent of the underwriters. See "*Underwriting*." However, no assurance can be given concerning the period during which Vivani will maintain its ownership of our common stock following this offering.

Based on our experience in the business sectors in which we operate and the terms of our transactions with unaffiliated third parties, we believe that all transactions with affiliated parties described above were on terms which were favorable to the Company. Prior to the consummation of this offering, our board of directors will adopt a written related person transaction policy, to be effective upon the consummation of this offering, setting forth the policies and procedures for the review and approval or ratification of related person transactions. This policy will cover, with certain exceptions set forth in Item 404 of Regulation S-K under the Securities Act, any transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships in which we were or are to be a participant, where the amount involved exceeds $120,000 and a related person had or will have a direct or indirect material interest, including without limitation purchases of goods or services by or from the related person or entities in which the related person has a material interest, indebtedness, guarantees of indebtedness and employment by us of a related person. In reviewing and approving any such transactions, our audit committee is tasked to consider all relevant facts and circumstances, including but not limited to whether the transaction is on terms comparable to those that could be obtained in an arm's length transaction with an unrelated third party and the extent of the related person's interest in the transaction. When applicable, our audit committee will request further information and, from time to time, will request guidance or confirmation from internal or external counsel or auditors. All transactions described in this section occurred prior to the adoption of this policy.

**DESCRIPTION OF SECURITIES**

*<br> The following descriptions are summaries of the material terms of our securities and are not complete. You should also refer to the Cortigent, Inc. certificate of incorporation and bylaws, which are included as exhibits to the registration statement of which this prospectus forms a part, and the applicable provisions of the Delaware General Corporate Law.*

**Authorized Capital Stock**

Our certificate of incorporation authorizes us to issue up to 50,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share, all of which shares of preferred will be undesignated. As of December 31, 2022, 20 million shares of our common stock were issued and outstanding and held of record by our parent company, Vivani. No shares of preferred stock are issued and outstanding.

After completion of this offering, we will be a "controlled company" within the meaning of the corporate governance standards of Nasdaq. See "Management — Controlled Company Exemption." Unless our board of directors determines otherwise, we will issue all shares of our capital stock in uncertificated form.

**Common Stock**

Shares of our common stock have the following rights, preferences, and privileges:

*Voting*

Each holder of common stock is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders. Any action at a meeting at which a quorum is present will be decided by a majority of the voting power present in person or represented by proxy, except in the case of any election of directors, which will be decided by a plurality of votes cast. Shareholders do not have cumulative voting rights.

*Dividends*

Holders of our common stock are entitled to receive dividends when, as, and if declared by our board of directors out of funds legally available for payment, subject to the rights of holders, if any, of any class of stock having preference over the common stock. Any decision to pay dividends on our common stock will be at the discretion of our board of directors. Our board of directors may or may not determine to declare dividends in the future. See "Dividend Policy." The board's determination to issue dividends will depend upon our profitability and financial condition, any contractual restrictions, restrictions imposed by applicable law and the SEC, and other factors that our board of directors deems relevant.

*Liquidation Rights*

In the event of a voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of our common stock will be entitled to share ratably on the basis of the number of shares held in any of the assets available for distribution after we have paid in full, or provided for payment of, all of our debts and after the holders of all outstanding series of any class of stock have preference over the common stock, if any, have received their liquidation preferences in full.

*Other*

Our issued and outstanding shares of common stock are fully paid and nonassessable. Holders of shares of our common stock are not entitled to preemptive rights. Shares of our common stock are not convertible into shares of any other class of capital stock, nor are they subject to any redemption or sinking fund provisions. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock.

**Preferred Stock**

We are authorized to issue up to 10,000,000 shares of preferred stock. Our certificate of incorporation authorizes the board to issue these shares without stockholder approval in one or more series, to determine the designations and the rights, powers, preferences and relative, participating, optional or other special rights and the qualifications, limitations and restrictions thereof, including the dividend rights, conversion or exchange rights, voting rights (including the number of votes per share), redemption rights and terms, liquidation preferences, sinking fund provisions and the number of shares constituting the series, any or all of which may be greater than the rights of common stock. The issuance of our preferred stock could adversely affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon our liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring, or preventing a change in control of our company or other corporate action. Immediately after consummation of this offering, no shares of preferred stock will be outstanding, and we have no present plan to issue any shares of preferred stock.

**Anti-Takeover Effects of Delaware and of Our Certificate of Incorporation and Bylaws**

***Section 203 of the Delaware General Corporation Law***

Upon completion of this offering, we will be subject to the provisions of Section 203 of the Delaware General Corporation Law. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a "business combination" with an "interested stockholder" for a three-year period following the time that this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. Under Section 203, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions:

● before such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

● upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (i) by persons who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

● on or after such date, the business combination is approved by the board of directors and authorized at an annual or special meeting of the stockholder, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder.

Section 203 defines a business combination to include:

● any merger or consolidation involving the corporation and the interested stockholder;

● any sale, transfer, lease, pledge exchange, mortgage or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;

● subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

● any transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class or series of the corporation beneficially owned by the interested stockholder; or

● the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits by or through the corporation.

In general, Section 203 defines an "interested stockholder" as an entity or person who, together with the person's affiliates and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder status did own, 15% or more of the outstanding voting stock of the corporation.

***Certificate of Incorporation and Bylaws***

Our Certificate of Incorporation and Bylaws provide for:

● authorizing the issuance of more "blank check" preferred stock, the terms of which may be established and shares of which may be issued without stockholder approval;

● establishing Delaware as the exclusive jurisdiction for certain stockholder litigation against us

***Potential Effects of Authorized but Unissued Stock***

We have shares of common stock and preferred stock available for future issuance without stockholder approval. We may utilize these additional shares for a variety of corporate purposes, including future public offerings to raise additional capital, to facilitate corporate acquisitions or payment as a dividend on the capital stock.

The existence of unissued and unreserved common stock and preferred stock may enable our board of directors to issue shares to persons friendly to current management or to issue preferred stock with terms that could render more difficult or discourage a third-party attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise, thereby protecting the continuity of our management. In addition, the board of directors has the discretion to determine designations, rights, preferences, privileges, and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges, and liquidation preferences of each series of preferred stock, all to the fullest extent permissible under the Delaware General Corporation Law and subject to any limitations set forth in our certificate of incorporation. The purpose of authorizing the board of directors to issue preferred stock and to determine the rights and preferences applicable to such preferred stock is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing desirable flexibility in connection with possible financings, acquisitions, and other corporate purposes, could have the effect of making it more difficult for a third party to acquire, or could discourage a third party from acquiring, a majority of our outstanding voting stock.

**Transfer Agent and Registrar**

The transfer agent and registrar for our common shares is VStock Transfer, LLC.

**Nasdaq Capital Market Listing**

We intend to apply to list our common shares on the Nasdaq Capital Market under the proposed trading symbol "CRGT", which listing we expect to occur upon consummation of this offering.

**SHARES ELIGIBLE FOR FUTURE SALE**

Prior to this offering, there was no public market for our common stock, and a liquid trading market for our common stock may not develop or be sustained after this offering. Future sales of substantial amounts of our common stock in the public market, including shares issued upon exercise of outstanding options, or the anticipation of these sales, could materially and adversely affect market prices prevailing from time to time and could impair our ability to raise capital through sales of equity or equity-related securities.

Upon the consummation of this offering, we will have approximately shares of common stock outstanding. assuming no exercise of the underwriters' over-allotment option to purchase additional shares. Of the outstanding shares, the shares sold in this offering will be freely tradable without restriction or further registration under the Securities Act, except any shares purchased by our "affiliates," as that term is defined in Rule 144 under the Securities Act, may be sold only in compliance with the limitations described below.

The remaining outstanding common shares will be deemed restricted securities, as defined under Rule 144. Restricted securities may be sold in the public market only if registered or if they qualify for an exemption from registration under Rules 144 or 701 under the Securities Act, which we summarize below. All of these shares will be subject to lock-up agreements described below.

**Lock-Up Agreements**

Pursuant to certain "lock-up" agreements, we, our executive officers and directors and Vivani, as our sole stockholder, have agreed, without the prior written consent of the representative, not to offer, sell, assign, transfer, pledge, contract to sell, or otherwise dispose of or announce the intention to otherwise dispose of, or enter into any swap, hedge or similar agreement or arrangement that transfers, in whole or in part, the economic risk of ownership of, directly or indirectly, engage in any short selling of any common stock or securities convertible into or exchangeable or exercisable for any common stock, whether currently owned or subsequently acquired, for a period of 12 months from the date of this prospectus. See "Underwriting — Lock-Up Agreements" for additional information.

**Rule 144**

In general, under Rule 144, beginning 90 days after the date of this prospectus, a person who is not our affiliate and has not been our affiliate at any time during the preceding three months will be entitled to sell any of our common shares that such person has beneficially owned for at least six months, including the holding period of any prior owner other than one of our affiliates, without regard to volume limitations. Sales of our common shares by any such person would be subject to the availability of current public information about us if the shares to be sold were beneficially owned by such person for less than one year.

Beginning 90 days after the date of this prospectus, our affiliates who have beneficially owned our common shares for at least six months, including the holding period of any prior owner other than one of our affiliates, would be entitled to sell within any three-month period a number of shares that does not exceed the greater of:

● 1% of the number of our common shares then outstanding, which will equal approximately shares immediately after this offering, assuming an initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover of this prospectus; and

● the average weekly trading volume in our common shares on the Nasdaq Capital Market during the four calendar weeks preceding the date of filing of a Notice of Proposed Sale of Securities Pursuant to Rule 144 with respect to the sale.

Sales under Rule 144 by our affiliates are also subject to manner of sale provisions and notice requirements and to the availability of current public information about us.

**Rule 701**

In general, under Rule 701, any of an issuer's employees, directors, officers, consultants, or advisors who purchases shares from an issuer in connection with a compensatory stock or option plan or other written agreement before the effective date of a registration statement under the Securities Act is entitled to sell such shares 90 days after such effective date in reliance on Rule 144. An affiliate of the issuer can resell shares in reliance on Rule 144 without having to comply with the holding period requirement, and non-affiliates of the issuer can resell shares in reliance on Rule 144 without having to comply with the current public information and holding period requirements.

The Securities and Exchange Commission has indicated that Rule 701 will apply to typical stock options granted by an issuer before it becomes subject to the reporting requirements of the Exchange Act, along with the shares acquired upon exercise of such options, including exercises after an issuer becomes subject to the reporting requirements of the Exchange Act.

**Registration Statements on Form S-8**

Promptly following the completion of this offering, we intend to file a registration statement on Form S-8 under the Securities Act to register all common shares issued or reserved for future issuance under our equity incentive plan. This registration statement would cover approximately shares. Shares registered under the registration statement will generally be available for sale in the open market after the 180-day lock-up period immediately following the date of this prospectus.

**UNDERWRITING** 

ThinkEquity LLC is acting as the representative of the underwriters of the offering. We have entered into an underwriting agreement dated , 2023 with the representative. Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to each underwriter named below, and each underwriter named below has severally agreed to purchase, at the public offering price less the underwriting discounts set forth on the cover page of this prospectus, the number of shares of common stock listed next to its name in the following table:

---

| | |
|:---|:---|
| **Underwriter** | **Number of Shares** |
| ThinkEquity LLC |  |
| Total |  |

---

The underwriters are committed to purchase all shares of common stock offered by the Company, other than those covered by the over-allotment option to purchase additional shares of common stock described below, if any are purchased. The obligations of the underwriters may be terminated upon the occurrence of certain events specified in the underwriting agreement. Furthermore, the underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the shares are subject to various representations and warranties and other customary conditions specified in the underwriting agreement, such as receipt by the underwriters of officers' certificates and legal opinions.

To the extent permitted by law, we have agreed to indemnify the underwriters and their respective affiliates, stockholders, directors, officers, employees, members and controlling persons against specified liabilities, including liabilities under the Securities Act, and to contribute to payments the underwriters may be required to make in respect thereof.

The underwriters are offering the shares of common stock subject to prior sale, when, as and if issued to and accepted by them, subject to approval of legal matters by their counsel and other conditions specified in the underwriting agreement. The underwriters reserve the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.

**Over-Allotment Option**

We have granted a 45-day option to the underwriters to purchase up to additional shares of common stock from us (15% of the shares sold in this offering) solely to cover over-allotments, if any, at the public offering price, less underwriting discounts and commissions. If the representative exercises this option in whole or in part, then the underwriters will be severally committed, subject to the conditions described in the underwriting agreement, to purchase the additional shares of common stock in proportion to their respective commitments set forth in the prior table.

**Discounts, Commissions and Reimbursement**

The representative has advised us that the underwriters propose to offer the shares of common stock to the public at the initial public offering price per share set forth on the cover page of this prospectus. The underwriters may offer shares to securities dealers at that price, less a concession of not more than $ per share, of which up to $ per share may be reallowed to other dealers. After the initial offering to the public, the public offering price and other selling terms may be changed by the representative.

The following table summarizes the underwriting discounts and commissions and proceeds, before expenses, to us assuming both no exercise and full exercise by the representative of the over-allotment option:

---

| | | | |
|:---|:---|:---|:---|
|  | | **Total** | **Total** |
|  |<br>**Per Share** | **Without<br> Over-allotment Option** | **With**<br> **Over-allotment Option** |
| Public offering price | $| $| $|
| Underwriting discounts and commissions (7.0%) | $| $| $|
| Non-accountable expense allowance (1%) | $| $| $|
| Proceeds, before expenses, to us | $| $| $|

---

We have paid an expense deposit of $50,000 to the Representative, which will be applied against the actual out-of-pocket accountable expenses that will be paid by us to the Representative in connection with this offering and will be reimbursed to us to the extent not incurred. We have agreed to reimburse the representative for the fees and expenses of its legal counsel in connection with the offering in an amount not to exceed $125,000, all fees, expenses and disbursements related to the registration or qualification of the shares sold in the offering under the "blue sky" securities of such states and other jurisdictions as the representative may reasonably designate, the fees and expenses related to the use of book building, prospectus tracking and compliance software for the offering in the amount of $29,500, up to $15,000 for background checks of our officers and directors, $10,000 for data services and communications expenses, up to $10,000 for the out-of-pocket fees and expenses of the representative for marketing and roadshows for the offering, up to $30,000 of the representative's market-making and trading, and clearing firm settlement expenses for the offering, and up to $3,000 of the costs associated with preparing bound volumes of the public offering materials and any commemorative mementos or Lucite tombstones for the offering.

We estimate the expenses of this offering payable by us, not including underwriting discounts and commissions, will be approximately $.

**Representative Warrants**

Upon the closing of this offering, we have agreed to issue to the representative warrants, or the Representative's Warrants, to purchase a number of shares of common stock equal to 5% of the total number of shares sold in this public offering. The Representative's Warrants will be exercisable at a per share exercise price equal to 125% of the public offering price per share of common stock sold in this offering. The Representative's Warrants are exercisable at any time and from time to time, in whole or in part, during the four- and one-half-year period commencing six months from the effective date of the registration statement related to this offering. The Representative's Warrants also provide for one demand registration right of the shares underlying the Representative's Warrants, and unlimited "piggyback" registration rights with respect to the registration of the shares of common stock underlying the Representative's Warrants and customary antidilution provisions. The demand registration right provided will not be greater than five years from the effective date of the registration statement related to this offering in compliance with FINRA Rule 5110(g)(8)I. The piggyback registration right provided will not be greater than seven years from the effective date of the registration statement related to this offering in compliance with FINRA Rule 5110(g)(8)(D).

The Representative's Warrants and the shares of common stock underlying the Representative's Warrants have been deemed compensation by the Financial Industry Regulatory Authority, or FINRA, and are therefore subject to a 180-day lock-up pursuant to Rule 5110(e)(1) of FINRA. The representative, or permitted assignees under such rule, may not sell, transfer, assign, pledge, or hypothecate the Representative's Warrants or the securities underlying the Representative's Warrants, nor will the representative engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the Representative's Warrants or the underlying shares for a period of 180 days from the effective date of the registration statement. Additionally, the Representative's Warrants may not be sold transferred, assigned, pledged, or hypothecated for a 180-day period following the effective date of the registration statement except to any underwriter and selected dealer participating in the offering and their bona fide officers or partners. The Representative's Warrants will provide for adjustment in the number and price of the Representative's Warrants and the shares of common stock underlying such Representative's Warrants in the event of recapitalization, merger, stock split, stock dividend or consolidation and further, the number of shares underlying the Representative's Warrants may be reduced if necessary to comply with FINRA rules and regulations.

**Discretionary Accounts**

The underwriters do not intend to confirm sales of the securities offered hereby to any accounts over which they have discretionary authority.

**Right of First Refusal**

Until , 2024, twelve (12) months from the effective date of the registration statement of which this prospectus is a part, the representative shall have an irrevocable right of first refusal to act as sole investment banker, sole book-runner and/or sole placement agent, at the representative sole discretion, for each and every future public and private equity and debt offerings for the Company, or any successor to or any subsidiary of the Company, including all equity linked financings, on terms customary to the representative. The representative shall have the sole right to determine whether or not any other broker-dealer shall have the right to participate in any such offering and the economic terms of any such participation. The representative will not have more than one opportunity to waive or terminate the right of first refusal in consideration of any payment or fee. In the event this offering results in gross proceeds of at least $25 million to the Company, such 12-month period shall be extended to 18 months.

**Nasdaq Capital Market**

We have applied to have our shares of common stock listed on The Nasdaq Capital Market under the symbol "." Our application might not be approved, and the consummation of this offering is contingent upon such approval.

**Lock-Up Agreements**

Pursuant to certain "lock-up" agreements, we and our executive officers, directors, and Vivani, as our sole stockholder, have agreed, subject to limited exceptions, without the prior written consent of the Representative, not to directly or indirectly, offer, pledge, sell, contract to sell, grant, lend, or otherwise transfer or dispose of, directly or indirectly, our common stock or any securities convertible into or exercisable or exchangeable for our common stock (the "Lock-Up Securities"), enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Lock-Up Securities, make any demand for, or exercise any right, or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any Lock-Up Securities, or to enter into any transaction, swap, hedge or other arrangement relating to any Lock-Up Securities, subject to customary exceptions, or publicly disclose the intention to do any of the foregoing, for a period of 12 months from the date of this prospectus.

**Electronic Offer, Sale and Distribution of Securities**

A prospectus in electronic format may be made available on the websites maintained by one or more of the underwriters or selling group members. The representative may agree to allocate a number of securities to underwriters and selling group members for sale to its online brokerage account holders. Internet distributions will be allocated by the underwriters and selling group members that will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format, the information on these websites is not part of, nor incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved or endorsed by us, and should not be relied upon by investors.

**Price Stabilization, Short Positions and Penalty Bids**

Similar to other purchase transactions, the underwriters' purchases to cover the syndicate short sales may have the effect of raising or maintaining the market price of our securities or preventing or retarding a decline in the market price of our securities. As result, the price of our securities may be higher than the price that might otherwise exist in the open market.

The underwriters make no representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of our securities. In addition, neither we nor the underwriters make any representation that the underwriters will engage in these transactions or that these transactions, once commenced, will not be discontinued without notice.

**Other Relationships**

Certain of the underwriters and their affiliates may in the future provide various advisory, investment banking, commercial banking and other financial services for us and our affiliates for which they may in the future receive customary fees and commissions.

**Pricing of the Offering**

Prior to this offering, there was no established public market for our common stock. The initial public offering price will be determined by negotiations among us and the representative of the underwriters. In addition to prevailing market conditions, among the factors to be considered in determining the initial public offering price of our common stock will be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;➢ estimates of our business potential and our earnings prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;➢ an assessment of our management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;➢ the consideration of the above factors in relation to market valuation of companies in related businesses.

The estimated initial public offering price range set forth on the cover page of this prospectus is subject to change as a result of market conditions and other factors. Neither we nor the underwriters can assure investors that an active trading market for the shares will develop or that, after the offering, the shares will trade in the public market at or above the public offering price.

 **Offer Restrictions Outside the United States**

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

**Australia**

This prospectus is not a disclosure document under Chapter 6D of the Australian Corporations Act, has not been lodged with the Australian Securities and Investments Commission and does not purport to include the information required of a disclosure document under Chapter 6D of the Australian Corporations Act. Accordingly, (i) the offer of the securities under this prospectus is only made to persons to whom it is lawful to offer the securities without disclosure under Chapter 6D of the Australian Corporations Act under one or more exemptions set out in section 708 of the Australian Corporations Act, (ii) this prospectus is made available in Australia only to those persons as set forth in clause (i) above, and (iii) the offeree must be sent a notice stating in substance that by accepting this offer, the offeree represents that the offeree is such a person as set forth in clause (i) above, and, unless permitted under the Australian Corporations Act, agrees not to sell or offer for sale within Australia any of the securities sold to the offeree within 12 months after its transfer to the offeree under this prospectus.

**China**

The information in this document does not constitute a public offer of the securities, whether by way of sale or subscription, in the People's Republic of China (excluding, for purposes of this paragraph, Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan). The securities may not be offered or sold directly or indirectly in the PRC to legal or natural persons other than directly to "qualified domestic institutional investors."

**European Economic Area—Belgium, Germany, Luxembourg, and Netherlands**

The information in this document has been prepared on the basis that all offers of securities will be made pursuant to an exemption under the Directive 2003/71/EC ("Prospectus Directive"), as implemented in Member States of the European Economic Area (each, a "Relevant Member State"), from the requirement to produce a prospectus for offers of securities.

An offer to the public of securities has not been made, and may not be made, in a Relevant Member State except pursuant to one of the following exemptions under the Prospectus Directive as implemented in that Relevant Member State:

● to legal entities that are authorized or regulated to operate in the financial markets or, if not so authorized or regulated, whose corporate purpose is solely to invest in securities;

● to any legal entity that has two or more of (i) an average of at least 250 employees during its last fiscal year; (ii) a total balance sheet of more than €43,000,000 (as shown on its last annual unconsolidated or consolidated financial statements) and (iii) an annual net turnover of more than €50,000,000 (as shown on its last annual unconsolidated or consolidated financial statements);

● to fewer than 100 natural or legal persons (other than qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive) subject to obtaining the prior consent of the Company or any underwriter for any such offer; or

● in any other circumstances falling within Article 3(2) of the Prospectus Directive, provided that no such offer of securities shall result in a requirement for the publication by the Company of a prospectus pursuant to Article 3 of the Prospectus Directive.

**France**

This document is not being distributed in the context of a public offering of financial securitieestrfre au public de titres financiers) in France within the meaning of Article L.411-1 of the French Monetary and Financial Code (Code Monétaire et Financier) and Articles 211-1 et seq. of the General Regulation of the French Autorité destraihés financiers ("AMF"). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France.

This document and any other offering material relating to the securities have not been, and will not be, submitted to the AMF for approval in France and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in France.

Such offers, sales and distributions have been and shall only be made in France to (i) qualified investors (investisseuestraintiés) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2° and D.411-1 to D.411-3, D.744-1, D.754-1 ;and D.764-1 of the French Monetary and Financial Code and any implementing regulation and/or (ii) a restricted number of non-qualified investors (cercestraintint d'investisseurs) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2° and D.411-4, D.744-1, D.754-1; and D.764-1 of the French Monetary and Financial Code and any implementing regulation.

Pursuant to Article 211-3 of the General Regulation of the AMF, investors in France are informed that the securities cannot be distributed (directly or indirectly) to the public by the investors otherwise than in accordance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 to L.621-8-3 of the French Monetary and Financial Code.

**Ireland**

The information in this document does not constitute a prospectus under any Irish laws or regulations and this document has not been filed with or approved by any Irish regulatory authority as the information has not been prepared in the context of a public offering of securities in Ireland within the meaning of the Irish Prospectus (Directive 2003/71/EC) Regulations 2005 (the "Prospectus Regulations"). The securities have not been offered or sold, and will not be offered, sold, or delivered directly or indirectly in Ireland by way of a public offering, except to (i) qualified investors as defined in Regulation 2(l) of the Prospectus Regulations and (ii) fewer than 100 natural or legal persons who are not qualified investors.

**Israel**

The securities offered by this prospectus have not been approved or disapproved by the Israeli Securities Authority (the ISA), or ISA, nor have such securities been registered for sale in Israel. The shares may not be offered or sold, directly or indirectly, to the public in Israel, absent the publication of a prospectus. The ISA has not issued permits, approvals, or licenses in connection with the offering or publishing the prospectus; nor has it authenticated the details included herein, confirmed their reliability or completeness, or rendered an opinion as to the quality of the securities being offered. Any resale in Israel, directly or indirectly, to the public of the securities offered by this prospectus is subject to restrictions on transferability and must be made only in compliance with the Israeli securities laws and regulations.

**Italy**

The offering of the securities in the Republic of Italy has not been authorized by the Italian Securities and Exchange Commission (Commissione Nazionale per le Societa e la Borsa, "CONSOB" pursuant to the Italian securities legislation and, accordingly, no offering material relating to the securities may be distributed in Italy and such securities may not be offered or sold in Italy in a public offer within the meaning of Article 1.1(t) of Legislative Decree No. 58 of 24 February 1998 ("Decree No. 58"), other than:

● to Italian qualified investors, as defined in Article 100 of Decree no.58 by reference to Article 34-ter of CONSOB Regulation no. 11971 of 14 May 1999 ("Regulation no. 1197l") as amended ("Qualified Investors"); and

● in other circumstances that are exempt from the rules on public offer pursuant to Article 100 of Decree No. 58 and Article 34-ter of Regulation No. 11971 as amended.

Any offer, sale or delivery of the securities or distribution of any offer document relating to the securities in Italy (excluding placements where a Qualified Investor solicits an offer from the issuer) under the paragraphs above must be:

● made by investment firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with Legislative Decree No. 385 of 1 September 1993 (as amended), Decree No. 58, CONSOB Regulation No. 16190 of 29 October 2007 and any other applicable laws; and

● in compliance with all relevant Italian securities, tax and exchange controls and any other applicable laws.

Any subsequent distribution of the securities in Italy must be made in compliance with the public offer and prospectus requirement rules provided under Decree No. 58 and the Regulation No. 11971, as amended, unless an exception from those rules applies. Failure to comply with such rules may result in the sale of such securities being declared null and void and in the liability of the entity transferring the securities for any damages suffered by the investors.

**Japan**

The securities have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948), as amended (the "FIEL") pursuant to an exemption from the registration requirements applicable to a private placement of securities to Qualified Institutional Investors (as defined in and in accordance with Article 2, paragraph 3 of the FIEL and the regulations promulgated thereunder). Accordingly, the securities may not be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan other than Qualified Institutional Investors. Any Qualified Institutional Investor who acquires securities may not resell them to any person in Japan that is not a Qualified Institutional Investor, and acquisition by any such person of securities is conditional upon the execution of an agreement to that effect.

**Portugal**

This document is not being distributed in the context of a public offer of financial securities (oferta pública de valores mobiliários) in Portugal, within the meaning of Article 109 of the Portuguese Securities Code (Código dos Valores Mobiliários). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in Portugal. This document and any other offering material relating to the securities have not been, and will not be, submitted to the Portuguese Securities Market Commission (Comissăo do Mercado de Valores Mobiliários) for approval in Portugal and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in Portugal, other than under circumstances that are deemed not to qualify as a public offer under the Portuguese Securities Code. Such offers, sales, and distributions of securities in Portugal are limited to persons who are "qualified investors" (as defined in the Portuguese Securities Code). Only such investors may receive this document and they may not distribute it, or the information contained in it, to any other person.

**Sweden**

This document has not been, and will not be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this document may not be made available, nor may the securities be offered for sale in Sweden, other than under circumstances that are deemed not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980) om handel med finansiella instrument). Any offering of securities in Sweden is limited to persons who are "qualified investors" (as defined in the Financial Instruments Trading Act). Only such investors may receive this document and they may not distribute it, or the information contained in it, to any other person.

**Switzerland**

The securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering material relating to the securities may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering material relating to the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory Authority (FINMA).

This document is personal to the recipient only and not for general circulation in Switzerland.

**United Arab Emirates**

Neither this document nor the securities have been approved, disapproved, or passed on in any way by the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates, nor has the Company received authorization or licensing from the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates to market or sell the securities within the United Arab Emirates. This document does not constitute and may not be used for the purpose of an offer or invitation. No services relating to the securities, including the receipt of applications and/or the allotment or redemption of such shares, may be rendered within the United Arab Emirates by the Company.

No offer or invitation to subscribe for securities is valid or permitted in the Dubai International Financial Centre.

**United Kingdom**

Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Services Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended ("FSMA") has been published or is intended to be published in respect of the securities. This document is issued on a confidential basis to "qualified investors" (within the meaning of section 86(7) of FSMA) in the United Kingdom, and the securities may not be offered or sold in the United Kingdom by means of this document, any accompanying letter or other document, except in circumstances which do not require the publication of a prospectus pursuant to section 86(1) FSMA. This document should not be distributed, published, or reproduced, in whole or in part, nor may its contents be disclosed by recipients to any other person in the United Kingdom.

Any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) received in connection with the issue or sale of the securities has only been communicated or caused to be communicated and will only be communicated or caused to be communicated in the United Kingdom in circumstances in which section 21(1) of FSMA does not apply to the Company.

In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 ("FPO"), (ii) who fall within the categories of persons referred to in Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the FPO or (iii) to whom it may otherwise be lawfully communicated (together "relevant persons"). The investments to which this document relates are available only to, and any invitation, offer or agreement to purchase will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

**Canada**

The securities may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the securities must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws. Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor. Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI33-105 regarding underwriter conflicts of interest in connection with this offering.

**LEGAL MATTERS**

The validity of the issuance of the common stock offered by us in this offering will be passed upon for us by Law Offices of Aaron A. Grunfeld & Associates, Beverly Hills, California. Certain legal matters in connection with this offering have been passed upon for the underwriters by Loeb & Loeb LLP, New York, New York.

**EXPERTS**

The consolidated financial statements of Cortigent, Inc. and Subsidiary as of December 31, 2022 and 2021, and for each of the years in the two year period ended December 31, 2022, included in this Registration Statement, have been audited by BPM LLP, an independent registered public accounting firm, as stated in their report which is also included herein. Such financial statements have been included herein in reliance on the report of such firm given on the authority of said firm as experts in auditing and accounting.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the Securities and Exchange Commission a registration statement on Form S-1 under the Securities Act with respect to the shares of common stock offered hereby. This prospectus, which constitutes a part of the registration statement, does not contain all information set forth in the registration statement or the exhibits and schedules filed therewith. For further information about us and the common stock offered hereby, we refer you to the registration statement and the exhibits and schedules filed thereto. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration statement. Upon completion of this offering, we will be required to file periodic reports, proxy statements, and other information with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. The Securities and Exchange Commission also maintains an Internet website that contains reports, proxy statements and other information about registrants, like us, that file electronically with the Securities and Exchange Commission. The address of that site is *www.sec.gov*.

As a result of this offering, we will become subject to the information and reporting requirements of the Exchange Act and, in accordance with this law, will file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information will be available for inspection at the website of the SEC referred to above. We also maintain a website at www.highroller.com where, upon closing of this offering, you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. The information on or that can be accessed through our website is not a part of this prospectus and the inclusion of our website address in this prospectus is an inactive textual reference only.

**PREPARATION AND STRUCTURE OF FINANCIAL STATEMENTS**

Second Sight Medical Products, Inc. ("Second Sight") has historically operated as a standalone company but completed a merger with Nano Precision Medical, Inc. as of August 2022. Vivani Medical, Inc. is the resulting entity of this August 2022 merger of Nano Precision Medical Inc. into Second Sight Medical Products, Inc. Cortigent is a wholly owned subsidiary of Vivani Medical, Inc. (Vivani, or Parent) and includes the personnel, technologies, and other assets that formerly comprised Second Sight. By this offering, Cortigent will obtain proceeds needed to advance our promising neurostimulation technologies and expand the product pipeline and addressable market. Financial statements representing the historical operations have been derived from Second Sight Medical Products, Inc.'s historical accounting records of which certain assets and liabilities have been contributed into a new company, Cortigent, Inc. (the "Company) and are presented on a carve-out basis. All revenues and costs as well as assets and liabilities directly associated with the business activity of the Company are included in the financial statements. Generally, the accounting records have been separately maintained and no costs have been allocated.

Financial transactions relating to the Company are accounted for through the intercompany investment account. Net Parent investment represents Parent's interest in the recorded net assets of the Company. All transactions between the Company and Parent have been included in the accompanying consolidated financial statements. Transactions with Parent are reflected in the accompanying Consolidated Statements of Net Parent Investment (Deficit) and in the accompanying Consolidated Balance Sheets within "Net Parent Investment." All intercompany accounts and transactions between the businesses comprising the Company have been eliminated in the accompanying consolidated financial statements.

**CORTIGENT, INC.**

**AND SUBSIDIARY**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | Page |
| [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID:207)](#b001) | F-2 |
| [CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2022 AND 2021](#b002) | F-3 |
| [CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021](#b003) | F-4 |
| [CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021](#b004) | F-5 |
| [CONSOLIDATED STATEMENTS OF NET PARENT INVESTMENT (DEFICIT) FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021](#b005) | F-6 |
| [CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021](#b006) | F-7 |
| [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#b007) | F-8 |

---

**REPORT OF INDEPENDENT REGISTERED** **PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Stockholder of

Cortigent, Inc. and Subsidiary

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Cortigent, Inc. and Subsidiary (the "Company") as of December 31, 2022 and 2021, and the related consolidated statements of operations, comprehensive loss, net parent investment (deficit), and cash flows, for the each of the two years in the period ended December 31, 2022, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Formation of Company**

Cortigent, Inc. was formed in 2022 by Vivani Medical, Inc. ("Vivani") as further discussed in Note 1. These financial statements have been prepared assuming the operating activities of the Neuromodulation business of Vivani were a part of Cortigent as of January 1, 2021 and the shares issued to Vivani upon formation have been outstanding since such date.

/s/ BPM LLP

We have served as the Company's auditor since 2021.

Walnut Creek, California

March 20, 2023

**CORTIGENT, INC.**

**AND SUBSIDIARY**

 **Consolidated Balance Sheets**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2022** | **2021** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents | $425 | $69593 |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 1556 | 914 |
| Total current assets | 1981 | 70507 |
| Property and equipment, net | 77 | 117 |
| Right-of-use asset | 48 | 228 |
| Deposits and other assets | 27 | 27 |
| Total assets | $2133 | $70879 |
| **LIABILITIES AND NET PARENT INVESTMENT** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable | $414 | $519 |
| &nbsp;&nbsp;&nbsp; Accrued expenses | 535 | 548 |
| &nbsp;&nbsp;&nbsp; Accrued compensation expense | 657 | 748 |
| &nbsp;&nbsp;&nbsp; Accrued clinical trial and grant expenses |  | 462 |
| &nbsp;&nbsp;&nbsp; Current operating lease liabilities | 52 | 185 |
| Total current liabilities | 1658 | 2462 |
| Long term operating lease liabilities |  | 52 |
| Total liabilities | 1658 | 2514 |
| Commitments and contingencies (Note 11) |  |  |
| Net parent investment | 475 | 68365 |
| Total liabilities and net parent investment | $2133 | $70879 |

---

See accompanying notes to consolidated financial statements.

**CORTIGENT, INC.**

**AND SUBSIDIARY**

 **Consolidated Statements of Operations**

 **(In thousands, except per share data)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Net sales | $— | $— |
| Cost of sales | 0 | (130) |
| Gross profit | 0 | 130 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp; Research and development, net of grants | 2449 | 2370 |
| &nbsp;&nbsp;&nbsp; Clinical and regulatory, net of grants | 728 | 378 |
| &nbsp;&nbsp;&nbsp; General and administrative, net of grants | 6250 | 6315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 9427 | 9063 |
| Loss from operations | (9427) | (8933) |
| Interest and other income | 827 | 12 |
| Net loss | $(8600) | $(8921) |
| Net loss per common share | $(0.43) | $(0.45) |
| Weighted average common shares outstanding – basic and diluted | 20000 | 20000 |

---

See accompanying notes to consolidated financial statements.

**CORTIGENT, INC.** 

**AND SUBSIDIARY**

 **Consolidated Statements of Comprehensive Loss** 

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Net loss | $(8600) | $(8921) |
| Other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | (10) | 69 |
| Comprehensive loss | $(8610) | $(8852) |

---

See accompanying notes to consolidated financial statements.

**CORTIGENT, INC.**

**AND SUBSIDIARY**

 **Consolidated Statements of Net Parent Investment (Deficit)**

**(In thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br> **Common**<br> **Stock**<br> **Shares** |<br> **Parent**<br> **Investment** | **Accumulated**<br> **Other**<br> **Comprehensive**<br> **Loss** |<br> **Net Parent**<br> **Investment**<br> **(Deficit)** |
| Balance, January 1, 2021 | 20000 | $(224) | $(448) | $(672) |
| Net parent investment |  | 77889 |  | 77889 |
| Net loss |  | (8921) |  | (8921) |
| Foreign currency translation adjustment |  |  | 69 | 69 |
| Balance, December 31, 2021 | 20000 | 68744 | (379) | 68365 |
| Net distribution to parent |  | (59280) |  | (59280) |
| Net loss |  | (8600) |  | (8600) |
| Foreign currency translation adjustment |  |  | (10) | (10) |
| Balance December 31, 2022 | 20000 | $864 | $(389) | $475 |

---

See accompanying notes to consolidated financial statements.

**CORTIGENT, INC.**

**AND SUBSIDIARY**

 **Consolidated Statements of Cash Flows**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** |
|  | **2022** | **2021** |
|  Cash flows from operating activities: |  |  |
|  Net loss | $(8600) | $(8921) |
|  Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization of property and equipment | 64 | 70 |
| &nbsp;&nbsp;&nbsp; Other | 67 | 75 |
| &nbsp;&nbsp;&nbsp; Non-cash lease expense | (5) | 9 |
| &nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other assets | (642) | 168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (107) | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | (19) | (625) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation expenses | (91) | 574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued clinical trial and grant expenses | (462) | (601) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in operating activities | (9795) | (9188) |
|  Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp; Fixed asset acquisitions | (24) | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (24) | (14) |
|  Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp; Net distribution to parent | (59347) | 75617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash (used in) provided by financing activities | (59347) | 75617 |
|  Effect of exchange rate changes on cash and cash equivalents | (2) | 1 |
|  Cash and cash equivalents: |  |  |
|  Net (decrease) increase | (69168) | 66416 |
|  Balance at beginning of year | 69593 | 3177 |
|  Balance at end of year | $425 | $69593 |
|  Supplemental disclosure of cash flow information; |  |  |
|  Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | $— | $135 |
|  Non-cash financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation (Parent) | $67 | $75 |
| &nbsp;&nbsp;&nbsp;&nbsp;Parent warrant exercise | $— | $25 |

---

See accompanying notes to consolidated financial statements.

**CORTIGENT, INC.**

**AND SUBSIDIARY**

**Notes to Consolidated Financial Statements**

**1. Organization and Business Operations**

These financial statements represent the financial position and results of operations of the Neuromodulation business segment of Vivani Medical, Inc. ("Vivani"). On August 30, 2022, Second Sight Medical Products, Inc., ("Second Sight") changed its name to Vivani Medical, Inc. and merged with Nano Precision Medical Products, Inc. ("NPM")(the "Merger"). On December 28, 2022, the assets and liabilities of the segment were contributed to Cortigent, Inc. ("Cortigent" or the "Company") a newly formed wholly owned subsidiary of Vivani, in exchange for 20 million shares of common stock of Cortigent. For convenience, the Neuromodulation business segment is referred to hereafter as "Cortigent." Vivani intends to cause Cortigent to sell its shares of common stock in an initial public offering ("IPO") in 2023.

Cortigent is a leader in developing targeted neurostimulation systems that enable patients to recover critical body functions including vision and muscle movement. Our technology combines advanced neuroscience with proprietary microelectronics, software, and data processing capabilities. The first-generation system, Argus II, was approved by the U.S. Food & Drug Administration ("FDA") under a Humanitarian Device Exemption and has successfully restored partial vision to hundreds of profoundly blind people. Building on this achievement, a clinical trial is underway to evaluate a more advanced system for sight restoration called "Orion." Our next planned application is to accelerate the recovery of arm and hand movement in patients who are partially paralyzed due to stroke. Additional applications of our platform technology have the potential to generate substantial business growth over time.

Cortigent includes the personnel, technologies, and other assets that formerly comprised Second Sight and, since the Merger, has continued as the Neuromodulation business segment of Vivani. Financial statements prior to the Merger have been derived from Second Sight's historical accounting records and have been presented as if Cortigent had been formed as of January 1, 2021.

Financial transactions between Cortigent and its parent have been accounted for through the parent's investment account ("Net Parent Investment"). Transactions with the parent are reflected in the accompanying Consolidated Statements of Changes in Net Parent Investment as "Net parent investment" and in the accompanying Balance Sheets within "Net Parent Investment." During the year ended December 31, 2022, the Company reflected a net return of capital of $59.3 million to Vivani representing funds from prior financings that will be utilized to support development activities at Vivani's other operating units.

Net parent investment represents Vivani's interest in the recorded net assets of Cortigent and the net effect of transactions with Vivani.

 **Liquidity and Going Concern**

The Company's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company's technologies are currently in development and have not generated revenues.

The Company has financed operations through support received from Vivani. The Company has incurred losses of $8.6 million and $8.9 million in the years ended December 31, 2022 and 2021, respectively, and expects to experience operating losses and negative cash flows for the foreseeable future.

Management believes that the successful growth and operation of the Company's business is dependent upon its ability to obtain adequate sources of funding through equity or debt financing to adequately support the Company research and development programs and provide for working capital and general corporate purposes. The Company has and will continue to receive short-term liquidity support from Vivani. See Footnote 12 for discussion of the Transition Funding and Services Agreement between the Company and Vivani.

No assurance can be given that the Company will be successful in achieving its long-term plans as set forth above, or that such plans, if consummated, will result in profitable operations or enable the Company to continue in the long-term as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Summary of Significant Accounting** 

**Policies Principles of Consolidation**

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally acceptable in the United States of America ("GAAP") and include the financial statements of Cortigent and its wholly owned subsidiary, Second Sight Switzerland. Intercompany balances and transactions have been eliminated in consolidation.

**Use of Estimates**

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. We base our estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience, and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Significant estimates include those related to assumptions used in accruals for potential liabilities, valuing instruments and the realization of deferred tax assets. Actual results could differ from those estimates.

**Cash and Cash Equivalents**

We consider all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. Cash is carried at cost, which approximates fair value, and cash equivalents are carried at fair value. We generally invest funds that are in excess of current needs in high credit quality instruments such as money market funds. There were no cash equivalents as of December 31, 2022.

**Property and Equipment**

Property and equipment are recorded at historical cost less accumulated depreciation and amortization. Improvements are capitalized, while expenditures for maintenance and repairs are charged to expense as incurred. Upon disposal of depreciable property, the appropriate property accounts are reduced by the related costs and accumulated depreciation. The resulting gains and losses are reflected in the consolidated statement of operations.

Depreciation is provided for using the straight-line method in amounts sufficient to relate the cost of assets to operations over their estimated service lives. Leasehold improvements are amortized over the shorter of the life of the asset or the related lease term. Estimated useful lives of the principal classes of assets are as follows:

---

| | | |
|:---|:---|:---|
| Lab equipment | 5.0 | – 7 years |
| Computer hardware and software | 3.0 | – 7 years |
| Leasehold improvements | 2.0 | – 5 years or the term of the lease, if shorter |
| Furniture, fixtures, and equipment | 5.0 | – 10 years |

---

We review our property and equipment for impairment annually or whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable.

Depreciation and amortization of property and equipment amounted to $0.1 million for the years ended December 31, 2022 and 2021.

**Research and Development**

Research and development costs are charged to operations in the period incurred and amounted to $2.4 million net of grant revenue, for the years ended December 31, 2022 and 2021.

**Patent Costs**

Due to the uncertainty associated with the successful development of one or more commercially viable products based on our research efforts and any related patent applications, all patent costs, including patent-related legal, filing fees and other costs, including internally generated costs, are expensed as incurred. Patent costs for the years ended December 31, 2022 and 2021, were $0.4 million and are included in general and administrative expenses in the consolidated statements of operations.

**NIH Grant** 

From time to time, we receive grants that help fund specific development programs. Any amounts received pursuant to grants are offset against the related operating expenses as the costs are incurred. Grants offset against operating expenses were $1.0 million during the year ended December 31, 2022 and were $1.4 million during the year ended December 31, 2021.

**Concentration of Risk**

*Credit Risk*

Financial instruments that subject us to concentrations of credit risk consist primarily of cash and money market funds. We maintain cash and money market funds with financial institutions that management deems credit worthy, and at times, cash balances may be in excess of FDIC and SIPC insurance limits of $250,000 and $500,000 (including cash of $250,000), respectively.

We also maintain cash at a bank in Switzerland. Accounts at said bank are insured up to an amount specified by the deposit insurance agency of Switzerland.

**Foreign Operations**

The accompanying consolidated financial statements as of December 31, 2022 include assets amounting to approximately $27,000 relating to our operations in Switzerland. Unanticipated events in foreign countries could disrupt our operations and impair the value of these assets.

**Fair Value of Financial Instruments**

The authoritative guidance with respect to fair value establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Disclosure as to transfers in and out of Levels 1 and 2, and activity in Level 3 fair value measurements, is also required.

Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that we can access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active-exchange traded securities and exchange-based derivatives.

Level 2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives, mutual funds, and fair-value hedges.

Level 3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently traded non-exchange-based derivatives and commingled investment funds, and are measured using present value pricing models.

We determine the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, we perform an analysis of the assets and liabilities at each reporting period end.

Cash equivalents, which include money market funds, are the only financial instrument measured and recorded at fair value in assets or liabilities on our consolidated balance sheet, and they are valued using Level 1 inputs.

**Comprehensive Loss**

We comply with provisions of FASB ASC 220, Comprehensive Income, which requires companies to report all changes in equity during a period, except those resulting from investment by owners and distributions to owners, for the period in which they are recognized. Comprehensive income is defined as the change in equity during a period from transactions and other events from non-owner sources.

Comprehensive income (loss) is reported on the face of the consolidated financial statements. For the years ended December 31, 2022 and 2021, comprehensive loss is the total of net loss and other comprehensive income (loss) which consists entirely of foreign currency translation adjustments and there were no material reclassifications from other comprehensive loss to net loss during these periods.

**Foreign Currency Translation and Transactions**

The financial statements and transactions of the subsidiary's operations are reported in the local (functional) currency of Swiss francs (CHF) and translated into U.S. dollars in accordance with GAAP. Assets and liabilities of those operations are translated at exchange rates in effect at the balance sheet date. The resulting gains and losses from translating foreign currency financial statements are recorded as other comprehensive income (loss). Revenues and expenses are translated at the average exchange rate for the reporting period. Foreign currency transaction gains (losses) resulting from exchange rate fluctuations on transactions denominated in a currency other than the foreign operations' functional currencies are included in expenses in the consolidated statements of operations.

**Income Taxes**

The amount of current and deferred tax expense of Cortigent's parent included in its consolidated tax returns is allocated to Cortigent as if Cortigent filed a separate return with any current and deferred taxes recorded in the parent's net investment. Any future tax benefit from net operating loss and similar carryforwards is not pushed down to the subsidiaries. Through December 31, 2022, no net current or deferred taxes have been recognized by the parent due to cumulative net losses as any such deferred amounts have been fully offset by a valuation allowance.

**Loss per Share**

Loss per share has been presented in these financial statements based upon the shares issued in exchange for assets of Cortigent. The financials were restated retroactively to include this issuance.

**Product Warranties**

Our policy is to warrant all shipped products against defects in materials and workmanship for up to two years by replacing failed parts. We also provide a three-year manufacturer's warranty covering implant failure by providing a functionally equivalent replacement implant. Accruals for product warranties are estimated based on historical warranty experience and current product performance trends and are recorded at the time revenue is recognized as a component of cost of sales. The warranty liabilities are reduced by material and labor costs used to replace parts over the warranty period in the periods in which the costs are incurred. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. During 2021, we reduced our warranty expense by $0.1 million due to the discontinued sales of Argus II and the resultant end of the product warranty periods. The warranty liabilities are included in accrued expenses in the consolidated balance sheet.

**Recently Adopted Accounting Standards**

We believe that any recently issued, but not yet effective, authoritative guidance, if currently adopted, would not have a material impact on our financial statement presentation or disclosures.

**3. Money Market Funds**

Money market funds included in cash equivalents at December 31, 2022, and 2021 totaled zero and $69.5 million, respectively.

The following table presents money market funds at their level within the fair value hierarchy at December 31, 2022 and 2021 (in thousands).

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
| **December 31, 2022:** |  |  |  |  |
| Money market funds | $— | $— | $— | $— |
| **December 31, 2021:** |  |  |  |  |
| Money market funds | $69487 | $69487 | $— | $— |

---

 **4. Selected Balance Sheet Detail**

**Property and equipment, net of accumulated depreciation and amortization**

Property and equipment consisted of the following as of December 31, 2022 and 2021 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Laboratory equipment | $590 | $584 |
| Computer hardware and software | 100 | 82 |
|  | 690 | 666 |
| Accumulated depreciation and amortization | (613) | (549) |
| Property and equipment, net | $77 | $117 |

---

**Contract Liabilities**

Contract liabilities amounted to $335,000 at December 31, 2022, and 2021 and are included in accrued expenses on the balance sheet.

**5. Grants**

We received an award for $1.6 million grant (with the intent to fund $6.4 million over five years subject to annual review and approval) from the National Institutes of Health (NIH) to fund the "Early Feasibility Clinical Trial of a Visual Cortical Prosthesis" that commenced in January 2018. The NIH grant funds ongoing and planned clinical activities and are being used to conduct and support clinical testing of six subjects implanted with the *Orion<sup>®</sup> Cortical Visual Prosthesis System* (Orion) and submit and obtain Investigational Device Exemption approval from the U.S. Food and Drug Administration (FDA). Accrued expenses related to grants amounted to $0.5 million for the year ended December 31, 2021 and zero at December 31, 2022 and are included in accrued clinical trial and grant expenses on the consolidated balance sheet. During the years ended December 31, 2022 and 2021, grants offset against operating expenses were $1.0 million and $1.4 million, respectively. In 2022 we allocated these offsets of $0.4 million to research and development, $0.3 million to clinical and regulatory and $0.3 million to general and administrative expenses. In 2021 we allocated these offsets of $1.0 million to clinical and regulatory, $0.3 million to research and development and $0.1 million to general and administrative expenses.

**6. Employee Benefit Plans**

We have a 401(k) Savings Retirement Plan (the "Plan") that covers substantially all full-time employees who meet the Plan's eligibility requirements and provides for an employee elective contribution. The Plan provides for employer matching contributions. Employer contributions are discretionary and determined annually by the Board of Directors. For the years ended December 31, 2022 and 2021, employer contributions to the Plan totaled $0.1 million.

**7. Allocated Cost from Parent (Stock-Based Compensation)**

Prior to the merger, Cortigent had options outstanding which became fully vested at the time of the merger. The options are now the responsibility of Vivani and are included in their financial presentation. Accordingly, disclosures about options other than the amount of expense through December 31, 2021 are no longer relevant.

The total stock-based compensation recognized for stock-based awards granted in the consolidated statements of operations for the years ended December 31, 2022 and 2021 are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Research and development | $20 | $22 |
| Clinical and regulatory | 32 | 35 |
| General and administrative | 15 | 18 |
| Total | $67 | $75 |

---

**8. Income Taxes**

The amount of current and deferred tax expense of Cortigent's parent included in its consolidated tax returns is allocated to Cortigent as if Cortigent filed a separate return with any current and deferred taxes recorded in the parent's net investment.

Through December 31, 2022, no net current or deferred taxes have been recognized by the parent due to cumulative net losses and a full valuation allowance. Any future tax benefit from net operating loss and similar carryforwards is not pushed down to the subsidiaries.

**9. Product Warranties**

A summary of activity of our warranty liabilities, which are included in accrued expenses in the accompanying consolidated balance sheets, for the years ended December 31, 2022 and 2021 is presented below (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Balance, beginning of year | $50 | $200 |
| Additions |  |  |
| Settlements |  |  |
| Adjustments and other |  | (150) |
| Total | $50 | $50 |

---

During 2021 we reduced our warranty expense by $0.1 million due to the discontinued sales of Argus II and the resultant end of the product warranty periods.

**10. Right-of-use Assets and Operating Lease Liabilities**

We lease certain office space and equipment for our use. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease costs are recognized in the income statement over the lease term on a straight-line basis. Depreciation is computed using the straight-line method over the estimated useful life of the respective assets. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. As most of our leases do not provide an implicit rate, we used our estimated incremental borrowing rate of 10% based on the information available at commencement date in determining the present value of lease payments.

On January 22, 2021, we entered into a lease agreement, effective February 1, 2021, to sub-lease office space to replace our existing headquarters. Monthly payments increased from $17,000 to $17,500 per month on February 1, 2022, plus operating expenses, to lease 17,290 square feet of office space at 13170 Telfair Avenue, Sylmar, CA 91342. Additionally, we received full rent abatement for March 2021, and will receive half rent abatement during March 2022. The sub-lease is for two years and two months. We are not affiliates of, are not related to, or otherwise have any other relationship with, the other parties, other than the lease.

The Company evaluated the lease under the provisions of ASC 842. Information related to the Company's right-of-use assets and related lease liabilities are as followings (in thousands, except for remaining lease term and discount rate):

---

| | |
|:---|:---|
| **Year ending December 31:** | |
| 2023 | $53 |
| Total lease payments | 53 |
| Less imputed interest | (1) |
| Total lease liabilities | $52 |
| **Other supplemental information:** |  |
| Current operating lease liabilities | $52 |
| Total lease liabilities | $52 |
| Discount rate | 10% |

---

---

| | | |
|:---|:---|:---|
|  | **For the year ended**<br> **December 31,**<br> **2022** | **For the year ended**<br> **December 31,**<br> **2021** |
| Cash paid for operating lease liabilities | $200 | $170 |

---

Rent expense, including common area maintenance charges, was $0.2 million during 2022 and $0.2 million in 2021.

**11. Commitments and Contingencies**

**License Agreements**

We have exclusive licensing agreements to utilize certain patents, related to the technology for visual prostheses. We have determined that only the agreement with Doheny Eye Institute ("DEI") applies to Argus II and Orion requiring future royalty payments through 2033. We have agreed to pay to DEI royalties for licensed products sold or leased by us. The royalty rate is 0.5%, based on related net sales of the patented portion of licensed products.

In the past we have paid royalties under a license agreement with the Johns Hopkins University ("JHU"). The JHU agreement expired, along with significant underlying patents, in 2018. Pursuant to the foregoing agreements with DEI and JHU, we did not incur any costs in 2021 or 2022.

**Indemnification Agreements**

We maintain indemnification agreements with our directors and officers that may require us to indemnify them against liabilities that arise by reason of their status or service as directors or officers, except as prohibited by applicable law.

**Clinical Trial Agreements**

Based upon FDA approval of Argus II, which was obtained in February 2013, we were required to collect follow-up data from subjects enrolled in our pre-approval trial for a period of up to ten years post-implant, which was extended through the year 2019. This requirement to collect follow-up data was halted in 2020 with FDA approval. In addition, we conducted three post-market studies to comply with U.S. FDA, French, and European post-market surveillance regulations and requirements and are conducting an early feasibility clinical study of Orion. We have contracted with various universities, hospitals, and medical practices to provide these services. Payments are based on procedures performed for each subject and are charged to clinical and regulatory expense as incurred. Total amounts charged to expense for the years ended December 31, 2021 and 2022 were $0.4 million and $0.7 million, respectively.

**Litigation, Claims and Assessments**

As of the date of these financial statements, Vivani has chosen to indemnify us for certain claims from the former business as part of the support agreement in the IPO. However, the results of litigation and claims are inherently unpredictable. Regardless of their outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

We are party to litigation arising in the ordinary course of business. It is our opinion that the outcome of such matters will not have a material effect on our financial statements, however the results of litigation and claims are inherently unpredictable. Regardless of outcome, litigation may have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

 **Significant Events**

Subsequent to December 31, 2021, as discussed in Note 1, *Organization and Business Operations*, Second Sight changed its name to Vivani Medical, Inc., and merged with NPM on August 30, 2022, and the Neuromodulation business segment continued to operate under Vivani. On December 28, 2022, the segment was contributed to Cortigent, Inc., a newly formed wholly owned subsidiary of Vivani.

**12. Transition Funding, Support and Services Agreement**

In March 2023, the Company and Vivani entered into a Transition Funding, Support and Services agreement by which Vivani will advance funds and provide or cause to be provided to the Company the services and funding that will cover salaries and related costs, rent and other overhead in order to permit the Company to operate in substantially the same manner in which business operations of the Company were previously operated by Second Sight, prior to the formation of Cortigent, which obligations will continue, in the case of the funding obligations, until (i) the earlier of December 31, 2024 or (ii) receipt of proceeds from this offering.

As part of this funding and support agreement, Vivani also has agreed to provide the services of its Chief Operating Officer on an interim basis to consult on operations matters, such as manufacturing planning and interactions with contract manufacturers, and the services of its Chief Business Officer on an interim basis to consult on business development matters, such as business modeling and commercial readiness. See "Management – Vivani Advisors to the Company." The Company will also be providing to Vivani the services of its principal accounting officer, and the services of its senior in-house patent counsel. The Company and Vivani have acknowledged that any such services which either of them provide to the other before the completion of this offering are deemed to be equivalent in value and shall offset the value of the services provided to the other. As a result the Company and Vivani have acknowledged each to the other that neither of them shall accrue any service fees or expenses to the other for services rendered before completion of this offering and that no invoices from either of them to the other shall be required to be submitted.

If after the termination date of the Agreement the Company requires additional funds or services, the Company and Vivani shall negotiate in good faith for the charges to be incurred for providing these services, but Vivani shall be under no obligation to provide any additional funding or services. Nothing in this agreement shall grant Vivani or its employees or agents who are providing services the right directly or indirectly to control or direct the operations of the Company. Each of the parties shall invoice the other monthly for the services supplied and the unpaid balance thereon. The unpaid balances of such invoices shall bear interest at the rate of 5.0% per year. All amounts paid or advanced by or due to Vivani under the Agreement inclusive of accrued interest shall be due on the earlier of the end date of the agreement or upon receipt of proceeds from this offering, or at any later date or dates as may be agreed upon by the Company and Vivani. By this Agreement Vivani and we have agreed to indemnify and hold each other harmless from certain matters relating to, arising out of or resulting from the operations of Second Sight's business before August 30, 2022.

**13. Subsequent Events**

On February 1, 2023 we entered into a lease agreement, effective March 1, 2023, to sublease office space to replace our existing headquarters. Our rental payments amount to $22,158 per month plus operating expenses, to lease 51,500 square feet of office space at 27200 Tourney Road, Valencia, California 91355. The sub-lease has a term of two years and two months. We also entered into a lease for storage space on January 25, 2023 in the same building at a cost of $6,775 per month for a term of two years and one month. As a material inducement for the lessor to execute the lease with us Vivani guaranteed the prompt payment of all rents and all other sums payable under the lease together with all other terms and conditions to be kept and performed under the lease by the lessee.

As of January 2023, we commenced to pay Mr. Adams $25,000 per month for his services to us. In March 2023 we entered into an at will letter agreement with Jonathan Adams by which we appointed him President and Chief Executive Officer of Cortigent at a base salary of $350,000 per year commencing as of March 1, 2023. He may also receive a onetime signing bonus of up to $50,000 if the within 45 days after the offering described in this prospectus is completed. Upon Board approval following completion of the initial public offering of securities, Mr. Adams may also be issued an option to purchase 400,000 shares of our common stock at a strike price equal to the price per share at which shares initially are sold to the public in this offering. Of these, options to purchase 100,000 shares will vest on November 10, 2023 and the balance shall vest in approximately equal monthly installments over the ensuing 36 months.

In March 2023 we entered into a Transition Funding, Support and Services Agreement with Vivani whereby Vivani will advance funds and provide or cause to be provided to the Company the services and funding that will cover salaries and related costs, rent and other overhead in order to permit the Company to operate in substantially the same manner in which business operations of the Company were previously operated by Second Sight, prior to the formation of Cortigent, which obligations will continue, in the case of the funding obligations, until the earlier of December 31, 2024 or receipt of proceeds from this offering. See Note 12 of Notes to Consolidated Financial Statements above.

![](img004.jpg)

3 Next Application: Motion Recovery After Stroke Our electrode array will be placed on the cortex (surface) of the brain to deliver neurostimulation • Clinical goal: Improve recovery of hand/arm movement with rehabilitation therapy after stroke – Accelerate the recovery process – Achieve a higher level of function • Stroke is common and costly in the US: – 7.6 million victims living; 610,000 annual strokes – Estimated stoke - related medical costs: $35 billion 1 – Estimated 195,000 annual patients based on 80% survival and 40% with hemiparesis 2 – Estimated ~$6 billion US addressable market size 1 Girotra al. 2019 2 Stroke victims who suffer long term moderate – to - severe motor impairment.

![](img005.jpg)

4 At the Forefront of the Machine - to - Human Interface Leveraging advances in: • Neuroscience understanding • Electronics miniaturization • Data processing capabilities • Wireless technology To address critical unmet medical needs: • Artificial vision for the blind • Motor skills recovery in paralysis due to stroke • Other future applications TARGETED NEURO - STIMULATION SYSTEMS

**Shares of Common Stock**

![](img001.jpg)

**PRELIMINARY PROSPECTUS**

**ThinkEquity**

, 2023

Through and including , 2023 (the 25<sup>th</sup> day after the date of this offering), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This delivery requirement is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**ITEM 13. Other Expenses of Issuance and Distribution.**

The following table sets forth the costs and expenses, other than the underwriting discounts and commissions, payable by the registrant in connection with the registration and sale of the common stock being registered. All amounts shown are estimates except the SEC registration fee and the Financial Industry Regulatory Authority, Inc. ("FINRA") filing fee and the Nasdaq Capital Market, or Nasdaq, listing fee.

---

| | |
|:---|:---|
|  | Amount |
| SEC registration fee | $2019.76 |
| FINRA filing fee | 3249.22 |
| Nasdaq listing fee |  |
| Accounting fees and expenses | \* |
| Legal fees and expenses | \* |
| Transfer agent fees and expenses | \* |
| Printing and mailing expenses | \* |
| Miscellaneous fees and expenses | \* |
| Total expenses | $\* |

---

\* To be disclosed by amendment.

**ITEM 14. Indemnification of Directors and Officers.**

Section 102 of the DGCL permits a corporation to eliminate the personal liability of directors of a corporation to the corporation or its stockholders for monetary damages for a breach of fiduciary duty as a director, except where the director breached his duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an improper personal benefit. Our Certificate of Incorporation provides that no director of the Company shall be personally liable to it or its stockholders for monetary damages for any breach of fiduciary duty as a director, notwithstanding any provision of law imposing such liability, except to the extent that the DGCL prohibits the elimination or limitation of liability of directors for breaches of fiduciary duty.

Section 145 of the DGCL provides in general that a Delaware corporation indemnify a director, officer, employee, or agent of the corporation, or a person serving at the request of the corporation for another corporation, partnership, joint venture, trust or other enterprise in related capacities against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with an action, suit or proceeding to which he was or is a party or is threatened to be made a party to any threatened, ending or completed action, suit or proceeding by reason of such position, if such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and, in any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful, except that, in the case of actions brought by or in the right of the corporation, no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or other adjudicating court determines that, despite the adjudication of liability but in view of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.

The Company's certificate of incorporation eliminates the personal liability of directors to the fullest extent permitted by the Delaware General Corporation Law and, together with the Company's bylaws, provides that the Company shall indemnify and hold harmless, to the fullest extent permitted by applicable law as it may be amended or supplemented, any person who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such person, or a person for whom such person is the legal representative, is or was a director or officer of the Company or, while a director or officer of the Company, is or was serving at the request of the Company as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, enterprise or nonprofit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys' fees) reasonably incurred by such person.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

We have entered into separate indemnification agreements with each of our directors and executive officers. Each indemnification agreement provides, among other things, for indemnification to the fullest extent permitted by law and our Certificate of Incorporation and Bylaws against any and all expenses, judgments, fines, penalties and amounts paid in settlement of any claim. The indemnification agreements provide for the advancement or payment of all expenses to the indemnitee and for the reimbursement to us if it is found that such indemnitee is not entitled to such indemnification.

In addition, we also intend to maintain obtain customary directors' and officers' liability insurance upon consummation of this offering.

In any underwriting agreement we enter in connection with the sale of common stock being registered hereby, the underwriters will agree to indemnify, under certain conditions, us, our directors, our officers and persons who control us within the meaning of the Securities Act against certain liabilities.

**ITEM 15. Recent Sales of Unregistered Securities.**

Aside from an issuance to Vivani of 20 million shares of registrant's common stock upon organization in December 2022, registrant has made no sales of unregistered securities. All issuances were made pursuant to an exemption from registration afforded by Section 4(a)(2) of the Securities Act.

**ITEM 16. Exhibits and Financial Statement Schedules.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Exhibits.* The following exhibits are being filed herewith:

---

| | |
|:---|:---|
| **Exhibit** <br> **Number**  | **Description** |
| 1.1 \* | Form of Underwriting Agreement by and between Registrant and ThinkEquity LLC (including form of Lock Up Agreement) |
| [3.1](g083409_ex3-1.htm) | [Certificate of Incorporation](g083409_ex3-1.htm) |
| [3.2](g083409_ex3-2.htm) | [Bylaws of the Registrant](g083409_ex3-2.htm) |
| 4.1\* | Form of Common Stock Certificate of the Registrant |
| 4.2\* | Form of Warrant issued to ThinkEquity LLC (included in Exhibit 1.1) |
| 5.1\* | Opinion of Law Offices of Aaron A. Grunfeld & Associates |
| 10.1# | Asset Contribution Agreement dated December 28, 2022 between Vivani Medical, Inc. and Cortigent Inc. |
| [10.2](g083409_ex10-2.htm) | [Transition Funding, Support and Services Agreement dated March 19, 2023](g083409_ex10-2.htm) |
| [10.3](g083409_ex10-3.htm) | [Lease Agreement dated as of March 1, 2023 – 27200 Tourney Road, Valencia, California](g083409_ex10-3.htm) |
| [10.4+](g083409_ex10-4.htm) | [Offer Letter signed March 8, 2023 between Registrant and Jonathan Adams](g083409_ex10-4.htm) |
| 14.1\* | Code of Business Conduct and Ethics |
| [21.1](g083409_ex21-1.htm) | [List of Subsidiaries of Registrant](g083409_ex21-1.htm) |
| 23.1\* | Consent of Law Offices of Aaron A. Grunfeld & Associates (included as part of Exhibit 5.1) |
| [23.2](g083409_ex23-2.htm) | [Consent of BPM LLP, independent registered public accounting firm](g083409_ex23-2.htm) |
| 24.1\* | Power of Attorney (included on signature page to the initial filing of this Registration Statement) |
| 99.1\* | Form of Audit Committee Charter |
| 99.2\* | Form of Compensation Committee Charter |
| 99.3\* | Form of Nominating and Corporate Governance Committee Charter |
| 99.4\* | Consents of Director Nominees |
| [107](g083409_ex107.htm) | [Calculation of Filing Fee Table](g083409_ex107.htm) |
| \* | To be filed by amendment. |

---

+ Indicates management contract or compensatory plan. <br> # Previously filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Financial Statements.* See page F-1 for an index to the financial statements and schedules included in the registration statement.

**ITEM 17. Undertakings.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof. *Provided, however,* that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

(b)The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant's annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

(h) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Valencia, State of California, on March 20, 2023.

---

| | |
|:---|:---|
| **CORTIGENT INC.** | **CORTIGENT INC.** |
| By: | /s/ Jonathan Adams |
|  | Jonathan Adams |
|  | Chief Executive Officer |

---

**POWER OF ATTORNEY**

 *KNOW ALL PERSONS BY THESE PRESENTS*, that each person whose signature appears below hereby constitutes and appoints Jonathan Adams and Edward Sedo, or either of them as his or her true and lawful attorney-in-fact and agent with full power of substitution, for him or her in any and all capacities, to sign any and all amendments to this registration statement (including post-effective amendments or any abbreviated registration statement and any amendments thereto filed pursuant to Rule 462(b) increasing the number of securities for which registration is sought), and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact, proxy and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact, proxy and agent, or his substitute, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Adam Mendelsohn | Chairman and Director | March 20, 2023 |
| Adam Mendelsohn Ph.D. |  |  |
| /s/ Jonathan Adams | President and Chief Executive Officer | March 20, 2023 |
| Jonathan Adams | (Principal Executive Officer) |  |
| /s/ Edward Sedo | Principal Accounting Officer | March 20, 2023 |
| Edward Sedo | (Principal Financial and Accounting Officer) |  |

---

## Exhibit 3.1

**Exhibit 3.1**

**State of Delaware**<br> **Secretary of State**<br> **Division of Corporations**<br> **Delivered 07:14 PM 11/10/2022** <br> **FIELD 07:14 PM 11/10/2022** <br> **SR 20223995301 - File Number 7132402**<br>

**CERTIFICATE OF INCORPORATION** 

**OF** 

**CORTIGENT, INC**,

The undersigned, for the purpose of organizing a Corporation to conduct the business and promote the purposes hereinafter stated, under the provisions and subject to the requirements of the Laws of the State of Delaware hereby certifies that:

**FIRST:** The name of this Corporation is Cortigent, Inc. (the "Corporation")

**SECOND:** The registered office of the Corporation in the State of Delaware shall be established and maintained at the office of Registered Agent Solutions, Inc. 838 Walker Road, Suite 21-2, Dover DE 19904 in Kent County, and Registered Agent Solutions; Inc. shall be the registered agent of the Corporation in charge thereof.

**THIRD:** The nature of the business or purposes to be conducted or promoted is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law.

**FOURTH:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Corporation is authorized to issue two classes of stock, to be designated, respectively, Common Stock and Undesignated Preferred Stock. The total number of shares of stock which the Corporation shall have authority to issue is 60,000,000 shares, of which (i) 50,000,000 shares are Common Stock, $0.001 par value per share, and (ii) 10,000,000 shares are Undesignated Preferred Stock, $0.001 par value per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Each share of Common Stock outstanding as of the applicable record date shall entitle the holder thereof to one (1) vote on any matter submitted to a vote at a meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Undesignated Preferred Stock may be issued from time to time in one or more series pursuant to a resolution or resolutions providing for such issue duly adopted by the Board of Directors (authority to do so being hereby expressly vested in the Board of Directors). The Board of Directors is further authorized, subject to limitations prescribed by law, to fix by resolution or resolutions the designations, powers, preferences and rights, and the qualifications, limitations or restrictions thereof, of any series of Undesignated Preferred Stock, including, without limitation, authority to fix by resolution or resolutions the dividend rights, dividend rate, conversion rights, voting rights, rights and terms of redemption (including sinking fund provisions), redemption price or prices, and liquidation preferences of any such series, and the number of shares constituting any such series and the designation thereof, or any of the foregoing. The Board of Directors is further authorized to increase (but not above the total number of authorized shares of the class) or decrease (but not below the number of shares of any such series then outstanding) the number of shares of any series, subject to the powers, preferences and rights, and the qualifications, limitations and restrictions thereof stated in this Certificate of Incorporation or the resolution of the Board of Directors originally fixing the number of shares of such series. Except as may be otherwise specified by the terms of any series of Undesignated Preferred Stock, if the number of shares of any series of Undesignated Preferred Stock is so decreased, then the Corporation shall take all such steps as are necessary to cause the shares constituting such decrease to resume the status which they had prior to the adoption of the resolution originally fixing the number of shares of such series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Except as otherwise required by law or provided in this Certificate of Incorporation, holders of Common Stock shall not be entitled to vote on any amendment to this Certificate of Incorporation (including any certificate of designation filed with respect to any series of Undesignated Preferred Stock) that relates solely to the terms of one or more outstanding series of Undesignated Preferred Stock if the holders of such affected series are entitled, either separately or together as a class with the holders of one or more other such series, to vote thereon by law or pursuant to this Certificate of Incorporation (including any certificate of designation filed with respect to any series of Undesignated Preferred Stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The number of authorized shares of Undesignated Preferred Stock or Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the voting power of all the then-outstanding shares of capital stock of the Corporation entitled to vote thereon, without a separate vote of the holders of the class or classes the number of authorized shares of which are being increased or decreased, unless a vote of any holders of one or more series of Undesignated Preferred Stock is required pursuant to the terms of any certificate of designation relating to any series of Undesignated Preferred Stock, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law.

**FIFTH:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** For the purposes of this Certificate of Incorporation, the term "Whole Board" shall mean the total number of authorized directorships whether or not there exist any vacancies or other unfilled seats in previously authorized directorships. At each annual meeting of stockholders, directors of the Corporation shall be elected to hold office until the expiration of the term for which they are elected and until their successors have been duly elected and qualified or until their earlier resignation or removal; except that if any such meeting shall not be so held, such election shall take place at a stockholders' meeting called and held in accordance with the General Corporation Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Elections of directors need not be by written ballot unless the Bylaws of the Corporation shall so provide.

**SIXTH:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** Subject to any additional vote required by this Certificate of Incorporation, the number of directors of the Corporation shall be determined in the manner set forth in the Bylaws of the Corporation. Subject to the rights of holders of Undesignated Preferred Stock, any director or the entire Board of Directors may be removed from office at any time, but only for cause, and only by the affirmative vote of the holders of at least a majority of the voting power of the issued and outstanding capital stock of the Corporation entitled to vote in the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** Except as otherwise provided for or fixed by or pursuant to the provisions of Article FOURTH hereof in relation to the rights of the holders of Undesignated Preferred Stock to elect directors under specified circumstances or except as otherwise provided by resolution of a majority of the Whole Board, newly created directorships resulting from any increase in the number of directors, created in accordance with the Bylaws of the Corporation, and any vacancies on the Board of Directors resulting from death, resignation, disqualification, removal or other cause shall be filled only by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum of the Board of Directors, or by a sole remaining director, and not by the stockholders. A person so elected by the Board of Directors to fill a vacancy or newly created directorship shall hold office until his or her successor shall have been duly elected and qualified at the next election, or until such director's earlier death, resignation or removal. No decrease in the number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

**SEVENTH:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** Subject to the terms of any series of Undesignated Preferred Stock, special meetings of stockholders of the Corporation may be called only by the Chairperson of the Board of Directors, the Chief Executive Officer, the President or the Board of Directors acting pursuant to a resolution adopted by a majority of the Whole Board, but a special meeting may not be called by any other person or persons and any power of stockholders to call a special meeting of stockholders is specifically denied. Only such business shall be considered at a special meeting of stockholders as shall have been stated in the notice for such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before any meeting of the stockholders of the Corporation shall be given in the manner and to the extent provided in the Bylaws of the Corporation.

**EIGHTH:** Elections of directors need not be by written ballot unless the Bylaws of the Corporation shall so provide.

**NINTH:** Meetings of stockholders may be held within or without the State of Delaware, as the Bylaws of the Corporation may provide. The books of the Corporation may be kept outside the State of Delaware at such place or places as may be designated from time to time by the Board of Directors of the Corporation or in the Bylaws of the Corporation.

**TENTH:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To the fullest extent permitted by The General Corporation Law, a director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. If the General Corporation Law or any other law of the State of Delaware is amended after approval by the stockholders of this Article Tenth to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the General Corporation Law as so amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Subject to any provisions in the Bylaws of the Corporation related to indemnification of directors of the Corporation, the Corporation shall indemnify, to the fullest extent permitted by applicable law, any director of the Corporation who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (a "Proceeding") by reason of the fact that he or she is or was a director of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee or agent of another Corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with any such Proceeding. The Corporation shall be required to indemnify a person in connection with a Proceeding (or part thereof) initiated by such person only if the Proceeding (or part thereof) was authorized by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Corporation shall have the power to indemnify, to the extent permitted by applicable law, any officer, employee or agent of the Corporation who was or is a party or is threatened to be made a party to any Proceeding by reason of the fact that he or she is or was a director, officer, employee or agent of the Corporation or is or was serving at the request of the Corporation as a director, officer, employee or agent of another Company, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with any such Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Neither any amendment nor repeal of any Section of this Article TENTH, nor the adoption of any provision of the Bylaws of the Corporation inconsistent with this Article TENTH, shall eliminate or reduce the effect of this Article TENTH in respect of any matter occurring, or any Proceeding accruing or arising or that, but for this Article TENTH, would accrue or arise, prior to such amendment, repeal or adoption of an inconsistent provision.

**ELEVENTH:** The Corporation reserves the right to amend or repeal any provision contained in this Certificate of Incorporation in the manner prescribed by the laws of the State of Delaware and all rights conferred upon stockholders are granted subject to this reservation.

Any person or entity purchasing or otherwise acquiring or holding any interest in shares of Capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article TWELFTH.

**IN WITNESS WHEREOF,** I, Scott Dunbar, the undersigned incorporator, located at 13170 Telfair Avenue, Sylmar, CA 91342, for the purpose of forming a Corporation under the laws of the State of Delaware, do make, file and record this Certificate of Incorporation, and do certify that the facts herein stated are true, and I have accordingly hereunto set my hand this 9<sup>th</sup> day of November 2022.

---

| | |
|:---|:---|
| By: | ![](img003_v15.jpg) |
| Name: | Scott Dunbar |
| Title: | Incorporator |

---

## Exhibit 3.2

**Exhibit 3.2**

**BYLAWS OF**

**CORTIGENT, INC.**

**Adopted as of November 28, 2022**

**TABLE OF CONTENTS**

***Page***

 ****

---

| | | |
|:---|:---|:---|
| Article I — MEETINGS OF STOCKHOLDERS | Article I — MEETINGS OF STOCKHOLDERS | **1** |
| **1.1** | ***Place of Meetings*** | **1** |
| **1.2** | ***Annual Meeting*** | **1** |
| **1.3** | ***Special Meeting*** | **1** |
| **1.4** | ***Notice of Stockholders' Meetings*** | **1** |
| **1.5** | ***Quorum*** | **2** |
| **1.6** | ***Adjourned Meeting; Notice*** | **2** |
| **1.7** | ***Conduct of Business*** | **2** |
| **1.8** | ***Voting*** | **2** |
| **1.9** | ***Stockholder Action by Written Consent Without a Meeting*** | **3** |
| **1.10** | ***Record Dates*** | **4** |
| **1.11** | ***Proxies*** | **5** |
| **1.12** | ***List of Stockholders Entitled to Vote*** | **5** |
| Article II — DIRECTORS | Article II — DIRECTORS | **5** |
| **2.1** | ***Powers*** | **5** |
| **2.2** | ***Number of Directors*** | **6** |
| **2.3** | ***Election, Qualification and Term of Office of Directors*** | **6** |
| **2.4** | ***Resignation and Vacancies*** | **6** |
| **2.5** | ***Place of Meetings; Meetings by Telephone*** | **7** |
| **2.6** | ***Conduct of Business*** | **7** |
| **2.7** | ***Regular Meetings*** | **7** |
| **2.8** | ***Special Meetings; Notice*** | **7** |
| **2.9** | ***Quorum; Voting*** | **8** |
| **2.10** | ***Board Action by Written Consent Without a Meeting*** | **8** |
| **2.11** | ***Fees and Compensation of Directors*** | **8** |
| **2.12** | ***Removal of Directors*** | **8** |
| Article III — COMMITTEES | Article III — COMMITTEES | **8** |
| **3.1** | ***Committees of Directors*** | **8** |
| **3.2** | ***Committee Minutes*** | **9** |
| **3.3** | ***Meetings and Actions of Committees*** | **9** |
| **3.4** | ***Subcommittees*** | **9** |
| Article IV — OFFICERS | Article IV — OFFICERS | **9** |
| **4.1** | ***Officers*** | **9** |
| **4.2** | ***Appointment of Officers*** | **10** |
| **4.3** | ***Subordinate Officers*** | **10** |
| **4.4** | ***Removal and Resignation of Officers*** | **10** |
| **4.5** | ***Vacancies in Offices*** | **10** |
| **4.6** | ***Representation of Shares of Other Corporations*** | **10** |
| **4.7** | ***Authority and Duties of Officers*** | **10** |
| Article V — INDEMNIFICATION | Article V — INDEMNIFICATION | **10** |
| **5.1** | ***Indemnification of Directors and Officers in Third Party Proceedings*** | **10** |
| **5.2** | ***Indemnification of Directors and Officers in Actions by or in the Right of the Company*** | **11** |

---

**TABLE OF CONTENTS** 

**(Continued)**

***Page***

 ****

---

| | | |
|:---|:---|:---|
| **5.3** | ***Successful Defense*** | **11** |
| **5.4** | ***Indemnification of Others*** | **11** |
| **5.5** | ***Advanced Payment of Expenses*** | **11** |
| **5.6** | ***Limitation on Indemnification*** | **12** |
| **5.7** | ***Determination; Claim*** | **12** |
| **5.8** | ***Non-Exclusivity of Rights*** | **12** |
| **5.9** | ***Insurance*** | **13** |
| **5.10** | ***Survival*** | **13** |
| **5.11** | ***Effect of Repeal or Modification*** | **13** |
| **5.12** | ***Certain Definitions*** | **13** |
| Article VI — STOCK | Article VI — STOCK | **13** |
| **6.1** | ***Stock Certificates; Partly Paid Shares*** | **13** |
| **6.2** | ***Special Designation on Certificates*** | **14** |
| **6.3** | ***Lost Certificates*** | **14** |
| **6.4** | ***Dividends*** | **14** |
| **6.5** | ***Stock Transfer Agreements*** | **15** |
| **6.6** | ***Registered Stockholders*** | **15** |
| **6.7** | ***Transfers*** | **15** |
| Article VII — MANNER OF GIVING NOTICE AND WAIVER | Article VII — MANNER OF GIVING NOTICE AND WAIVER | **15** |
| **7.1** | ***Notice of Stockholder Meetings*** | **15** |
| **7.2** | ***Notice by Electronic Transmission*** | **15** |
| **7.3** | ***Notice to Stockholders Sharing an Address*** | **16** |
| **7.4** | ***Notice to Person with Whom Communication is Unlawful*** | **16** |
| **7.5** | ***Waiver of Notice*** | **16** |
| Article VIII — GENERAL MATTERS | Article VIII — GENERAL MATTERS | **17** |
| **8.1** | ***Fiscal Year*** | **17** |
| **8.2** | ***Seal*** | **17** |
| **8.3** | ***Annual Report*** | **17** |
| **8.4** | ***Construction; Definitions*** | **17** |
| Article IX — AMENDMENTS | Article IX — AMENDMENTS | **17** |

---

ii

**BYLAWS**

**Article I — MEETINGS OF STOCKHOLDERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 *Place of Meetings***. Meetings of stockholders of Cortigent, Inc. (the "***Company***") shall be held at any place, within or outside the State of Delaware, determined by the Company's board of directors (the "***Board***"). The Board may, in its sole discretion, determine that a meeting of stockholders shall not be held at any place, but may instead be held solely by means of remote communication as authorized by Section 211(a)(2) of the Delaware General Corporation Law (the "***DGCL***"). In the absence of any such designation or determination, stockholders' meetings shall be held at the Company's principal executive office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 *Annual Meeting***. Unless directors are elected by written consent in lieu of an annual meeting as permitted by Section 211(b) of the DGCL, an annual meeting of stockholders shall be held for the election of directors at such date and time as may be designated by resolution of the Board from time to time. Stockholders may, unless the certificate of incorporation otherwise provides, act by written consent to elect directors; *provided, however,* that, if such consent is less than unanimous, such action by written consent may be in lieu of holding an annual meeting only if all of the directorships to which directors could be elected at an annual meeting held at the effective time of such action are vacant and are filled by such action. Any other proper business may be transacted at the annual meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3 *Special Meeting***. A special meeting of the stockholders may be called at any time by the Board, Chairperson of the Board, Chief Executive Officer or President (in the absence of a Chief Executive Officer) or by one or more stockholders holding shares in the aggregate entitled to cast not less than 10% of the votes at that meeting.

If any person(s) other than the Board calls a special meeting, the request shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) be in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) specify the time of such meeting and the general nature of the business proposed to be transacted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) be delivered personally or sent by registered mail or by facsimile transmission to the Chairperson of the Board, the Chief Executive Officer, the President (in the absence of a Chief Executive Officer) or the Secretary of the Company.

The officer(s) receiving the request shall cause notice to be promptly given to the stockholders entitled to vote at such meeting, in accordance with these bylaws, that a meeting will be held at the time requested by the person or persons calling the meeting. No business may be transacted at such special meeting other than the business specified in such notice to stockholders. Nothing contained in this paragraph of this **section 1.3** shall be construed as limiting, fixing, or affecting the time when a meeting of stockholders called by action of the Board may be held.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4 *Notice of Stockholders' Meetings***. Whenever stockholders are required or permitted to take any action at a meeting, a written notice of the meeting shall be given which shall state the place, if any, date and hour of the meeting, the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, the record date for determining the stockholders entitled to vote at the meeting, if such date is different from the record date for determining stockholders entitled to notice of the meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Except as otherwise provided in the DGCL, the certificate of incorporation or these bylaws, the written notice of any meeting of stockholders shall be given not less than 10 nor more than 60 days before the date of the meeting to each stockholder entitled to vote at such meeting as of the record date for determining the stockholders entitled to notice of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5 *Quorum***. Except as otherwise provided by law, the certificate of incorporation or these bylaws, at each meeting of stockholders the presence in person or by proxy of the holders of shares of stock having a majority of the votes which could be cast by the holders of all outstanding shares of stock entitled to vote at the meeting shall be necessary and sufficient to constitute a quorum. Where a separate vote by a class or series or classes or series is required, a majority of the outstanding shares of such class or series or classes or series, present in person or represented by proxy, shall constitute a quorum entitled to take action with respect to that vote on that matter, except as otherwise provided by law, the certificate of incorporation or these bylaws.

If, however, such quorum is not present or represented at any meeting of the stockholders, then either (i) the chairperson of the meeting, or (ii) the stockholders entitled to vote at the meeting, present in person or represented by proxy, shall have the power to adjourn the meeting from time to time, in the manner provided in **section 1.6**, until a quorum is present or represented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6 *Adjourned Meeting; Notice***. Any meeting of stockholders, annual or special, may adjourn from time to time to reconvene at the same or some other place, and notice need not be given of the adjourned meeting if the time, place, if any, thereof, and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such adjourned meeting are announced at the meeting at which the adjournment is taken. At the adjourned meeting, the Company may transact any business which might have been transacted at the original meeting. If the adjournment is for more than 30 days, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. If after the adjournment a new record date for stockholders entitled to vote is fixed for the adjourned meeting, the Board shall fix a new record date for notice of such adjourned meeting in accordance with Section 213(a) of the DGCL and **section 1.10** of these bylaws, and shall give notice of the adjourned meeting to each stockholder of record entitled to vote at such adjourned meeting as of the record date fixed for notice of such adjourned meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7 *Conduct of Business***. Meetings of stockholders shall be presided over by the Chairperson of the Board, if any, or in his or her absence by the Vice Chairperson of the Board, if any, or in the absence of the foregoing persons by the Chief Executive Officer, or in the absence of the foregoing persons by the President, or in the absence of the foregoing persons by a Vice President, or in the absence of the foregoing persons by a chairperson designated by the Board, or in the absence of such designation by a chairperson chosen at the meeting. The Secretary shall act as secretary of the meeting, but in his or her absence the chairperson of the meeting may appoint any person to act as secretary of the meeting. The chairperson of any meeting of stockholders shall determine the order of business and the procedure at the meeting, including such regulation of the manner of voting and the conduct of business, and shall have the power to adjourn the meeting to another place, if any, date or time, whether or not a quorum is present.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8 *Voting***. The stockholders entitled to vote at any meeting of stockholders shall be determined in accordance with the provisions of **section 1.10** of these bylaws, subject to Section 217 (relating to voting rights of fiduciaries, pledgors and joint owners of stock) and Section 218 (relating to voting trusts and other voting agreements) of the DGCL.

Except as may be otherwise provided in the certificate of incorporation, each stockholder entitled to vote at any meeting of stockholders shall be entitled to one vote for each share of capital stock held by such stockholder which has voting power upon the matter in question. Voting at meetings of stockholders need not be by written ballot and, unless otherwise required by law, need not be conducted by inspectors of election unless so determined by the holders of shares of stock having a majority of the votes which could be cast by the holders of all outstanding shares of stock entitled to vote thereon which are present in person or by proxy at such meeting. If authorized by the Board, such requirement of a written ballot shall be satisfied by a ballot submitted by electronic transmission (as defined in **section 7.2** of these bylaws), *provided* that any such electronic transmission must either set forth or be submitted with information from which it can be determined that the electronic transmission was authorized by the stockholder or proxy holder.

Except as otherwise required by law, the certificate of incorporation or these bylaws, in all matters other than the election of directors, the affirmative vote of a majority of the voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter shall be the act of the stockholders. Except as otherwise required by law, the certificate of incorporation or these bylaws, directors shall be elected by a plurality of the voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. Where a separate vote by a class or series or classes or series is required, in all matters other than the election of directors, the affirmative vote of the majority of shares of such class or series or classes or series present in person or represented by proxy at the meeting shall be the act of such class or series or classes or series, except as otherwise provided by law, the certificate of incorporation or these bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9 *Stockholder Action by Written Consent Without a Meeting***. Unless otherwise provided in the certificate of incorporation, any action required by the DGCL to be taken at any annual or special meeting of stockholders of a corporation, or any action which may be taken at any annual or special meeting of such stockholders, may be taken without a meeting, without prior notice, and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted.

Every written consent shall bear the date of signature of each stockholder who signs the consent, and no written consent shall be effective to take the corporate action referred to therein unless, within 60 days of the earliest dated consent delivered in the manner required by Section 228 of the DGCL to the Company, written consents signed by a sufficient number of holders to take action are delivered to the Company by delivery to its registered office in the State of Delaware, its principal place of business or an officer or agent of the Company having custody of the book in which proceedings of meetings of stockholders are recorded. Delivery made to the Company's registered office shall be by hand or by certified or registered mail, return receipt requested. Any person executing a consent may provide, whether through instruction to an agent or otherwise, that such a consent will be effective at a future time (including a time determined upon the happening of an event), no later than 60 days after such instruction is given or such provision is made, and, for the purposes of this **section 1.9**, if evidence of such instruction or provision is provided to the Company, such later effective time shall serve as the date of signature. Unless otherwise provided, any such consent shall be revocable prior to its becoming effective.

An electronic transmission (as defined in **section 7.2**) consenting to an action to be taken and transmitted by a stockholder or proxy holder, or by a person or persons authorized to act for a stockholder or proxy holder, shall be deemed to be written, signed and dated for purposes of this section, *provided* that any such electronic transmission sets forth or is delivered with information from which the Company can determine (i) that the electronic transmission was transmitted by the stockholder or proxy holder or by a person or persons authorized to act for the stockholder or proxy holder and (ii) the date on which such stockholder or proxy holder or authorized person or persons transmitted such electronic transmission.

In the event that the Board shall have instructed the officers of the Company to solicit the vote or written consent of the stockholders of the Company, an electronic transmission of a stockholder written consent given pursuant to such solicitation may be delivered to the Secretary or the President of the Company or to a person designated by the Secretary or the President. The Secretary or the President of the Company or a designee of the Secretary or the President shall cause any such written consent by electronic transmission to be reproduced in paper form and inserted into the corporate records.

Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for notice of such meeting had been the date that written consents signed by a sufficient number of holders to take the action were delivered to the Company as provided in Section 228 of the DGCL. In the event that the action which is consented to is such as would have required the filing of a certificate under any provision of the DGCL, if such action had been voted on by stockholders at a meeting thereof, the certificate filed under such provision shall state, in lieu of any statement required by such provision concerning any vote of stockholders, that written consent has been given in accordance with Section 228 of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10 *Record Dates***. In order that the Company may determine the stockholders entitled to notice of any meeting of stockholders or any adjournment thereof, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board and which record date shall not be more than 60 nor less than 10 days before the date of such meeting. If the Board so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination.

If no record date is fixed by the Board, the record date for determining stockholders entitled to notice of and to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held.

A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; *provided, however,* that the Board may fix a new record date for determination of stockholders entitled to vote at the adjourned meeting, and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote in accordance with the provisions of Section 213 of the DGCL and this **section 1.10** at the adjourned meeting.

In order that the Company may determine the stockholders entitled to consent to corporate action in writing without a meeting, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board, and which date shall not be more than 10 days after the date upon which the resolution fixing the record date is adopted by the Board. If no record date has been fixed by the Board, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting, when no prior action by the Board is required by law, shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the Company in accordance with applicable law. If no record date has been fixed by the Board and prior action by the Board is required by law, the record date for determining stockholders entitled to consent to corporate action in writing without a meeting shall be at the close of business on the day on which the Board adopts the resolution taking such prior action.

In order that the Company may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall be not more than 60 days prior to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board adopts the resolution relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.11 *Proxies***. Each stockholder entitled to vote at a meeting of stockholders or to express consent or dissent to corporate action in writing without a meeting may authorize another person or persons to act for such stockholder by proxy authorized by an instrument in writing or by a transmission permitted by law filed in accordance with the procedure established for the meeting, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. The revocability of a proxy that states on its face that it is irrevocable shall be governed by the provisions of Section 212 of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.12 *List of Stockholders Entitled to Vote***. The officer who has charge of the stock ledger of the Company shall prepare and make, at least ten days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting; *provided, however,* if the record date for determining the stockholders entitled to vote is less than 10 days before the meeting date, the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. The Company shall not be required to include electronic mail addresses or other electronic contact information on such list. Such list shall be open to the examination of any stockholder for any purpose germane to the meeting for a period of at least ten days prior to the meeting: (i) on a reasonably accessible electronic network, *provided* that the information required to gain access to such list is provided with the notice of the meeting, or (ii) during ordinary business hours, at the Company's principal place of business. In the event that the Company determines to make the list available on an electronic network, the Company may take reasonable steps to ensure that such information is available only to stockholders of the Company. If the meeting is to be held at a place, then a list of stockholders entitled to vote at the meeting shall be produced and kept at the time and place of the meeting during the whole time thereof, and may be examined by any stockholder who is present. If the meeting is to be held solely by means of remote communication, then such list shall also be open to the examination of any stockholder during the whole time of the meeting on a reasonably accessible electronic network, and the information required to access such list shall be provided with the notice of the meeting.

**Article II — DIRECTORS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 *Powers***. The business and affairs of the Company shall be managed by or under the direction of the Board, except as may be otherwise provided in the DGCL or the certificate of incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 *Number of Directors***. The Board shall consist of one or more members, each of whom shall be a natural person. Unless the certificate of incorporation fixes the number of directors, the number of directors shall be determined from time to time by resolution of the Board. No reduction of the authorized number of directors shall have the effect of removing any director before that director's term of office expires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3 *Election, Qualification and Term of Office of Directors***. Except as provided in **section 2.4** of these bylaws, and subject to **sections 1.2** and **1.9** of these bylaws, directors shall be elected at each annual meeting of stockholders. Directors need not be stockholders unless so required by the certificate of incorporation or these bylaws. The certificate of incorporation or these bylaws may prescribe other qualifications for directors. Each director shall hold office until such director's successor is elected and qualified or until such director's earlier death, resignation or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4 *Resignation and Vacancies***. Any director may resign at any time upon notice given in writing or by electronic transmission to the Company. A resignation is effective when the resignation is delivered unless the resignation specifies a later effective date or an effective date determined upon the happening of an event or events. A resignation which is conditioned upon the director failing to receive a specified vote for reelection as a director may provide that it is irrevocable. Unless otherwise provided in the certificate of incorporation or these bylaws, when one or more directors resign from the Board, effective at a future date, a majority of the directors then in office, including those who have so resigned, shall have power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations shall become effective.

Unless otherwise provided in the certificate of incorporation or these bylaws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Vacancies and newly created directorships resulting from any increase in the authorized number of directors elected by all of the stockholders having the right to vote as a single class may be filled by a majority of the directors then in office, although less than a quorum, or by a sole remaining director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Whenever the holders of any class or classes of stock or series thereof are entitled to elect one or more directors by the provisions of the certificate of incorporation, vacancies and newly created directorships of such class or classes or series may be filled by a majority of the directors elected by such class or classes or series thereof then in office, or by a sole remaining director so elected.

If at any time, by reason of death or resignation or other cause, the Company should have no directors in office, then any officer or any stockholder or an executor, administrator, trustee or guardian of a stockholder, or other fiduciary entrusted with like responsibility for the person or estate of a stockholder, may call a special meeting of stockholders in accordance with the provisions of the certificate of incorporation or these bylaws, or may apply to the Court of Chancery for a decree summarily ordering an election as provided in Section 211 of the DGCL.

If, at the time of filling any vacancy or any newly created directorship, the directors then in office constitute less than a majority of the whole Board (as constituted immediately prior to any such increase), the Court of Chancery may, upon application of any stockholder or stockholders holding at least 10% of the voting stock at the time outstanding having the right to vote for such directors, summarily order an election to be held to fill any such vacancies or newly created directorships, or to replace the directors chosen by the directors then in office as aforesaid, which election shall be governed by the provisions of Section 211 of the DGCL as far as applicable.

A director elected to fill a vacancy shall be elected for the unexpired term of his or her predecessor in office and until such director's successor is elected and qualified, or until such director's earlier death, resignation or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5 *Place of Meetings; Meetings by Telephone***. The Board may hold meetings, both regular and special, either within or outside the State of Delaware.

Unless otherwise restricted by the certificate of incorporation or these bylaws, members of the Board, or any committee designated by the Board, may participate in a meeting of the Board, or any committee, by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6 *Conduct of Business***. Meetings of the Board shall be presided over by the Chairperson of the Board, if any, or in his or her absence by the Vice Chairperson of the Board, if any, or in the absence of the foregoing persons by a chairperson designated by the Board, or in the absence of such designation by a chairperson chosen at the meeting. The Secretary shall act as secretary of the meeting, but in his or her absence the chairperson of the meeting may appoint any person to act as secretary of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7 *Regular Meetings***. Regular meetings of the Board may be held without notice at such time and at such place as shall from time to time be determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8 *Special Meetings; Notice***. Special meetings of the Board for any purpose or purposes may be called at any time by the Chairperson of the Board, the Chief Executive Officer, the President, the Secretary or any two directors.

Notice of the time and place of special meetings shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) delivered personally by hand, by courier or by telephone;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) sent by United States first-class mail, postage prepaid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) sent by facsimile;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) sent by electronic mail; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) otherwise given by electronic transmission (as defined in **section 7.2**),

directed to each director at that director's address, telephone number, facsimile number, electronic mail address or other contact for notice by electronic transmission, as the case may be, as shown on the Company's records.

If the notice is (i) delivered personally by hand, by courier or by telephone, (ii) sent by facsimile, (iii) sent by electronic mail or (iv) otherwise given by electronic transmission, it shall be delivered, sent or otherwise directed to each director, as applicable, at least 24 hours before the time of the holding of the meeting. If the notice is sent by United States mail, it shall be deposited in the United States mail at least four days before the time of the holding of the meeting. Any oral notice may be communicated to the director. The notice need not specify the place of the meeting (if the meeting is to be held at the Company's principal executive office) nor the purpose of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9 *Quorum; Voting***. At all meetings of the Board, a majority of the total authorized number of directors shall constitute a quorum for the transaction of business. If a quorum is not present at any meeting of the Board, then the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present. A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of directors, if any action taken is approved by at least a majority of the required quorum for that meeting.

The vote of a majority of the directors present at any meeting at which a quorum is present shall be the act of the Board, except as may be otherwise specifically provided by statute, the certificate of incorporation or these bylaws.

If the certificate of incorporation provides that one or more directors shall have more or less than one vote per director on any matter, every reference in these bylaws to a majority or other proportion of the directors shall refer to a majority or other proportion of the votes of the directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10 *Board Action by Written Consent Without a Meeting***. Unless otherwise restricted by the certificate of incorporation or these bylaws, any action required or permitted to be taken at any meeting of the Board, or of any committee thereof, may be taken without a meeting if all members of the Board or committee, as the case may be, consent thereto in writing or by electronic transmission and the writing or writings or electronic transmission or transmissions are filed with the minutes of proceedings of the Board or committee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form. Any person (whether or not then a director) may provide, whether through instruction to an agent or otherwise, that a consent to action will be effective at a future time (including a time determined upon the happening of an event), no later than 60 days after such instruction is given or such provision is made and such consent shall be deemed to have been given for purposes of this **section 2.10** at such effective time so long as such person is then a director and did not revoke the consent prior to such time. Any such consent shall be revocable prior to its becoming effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11 *Fees and Compensation of Directors***. Unless otherwise restricted by the certificate of incorporation or these bylaws, the Board shall have the authority to fix the compensation of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.12 *Removal of Directors***. Unless otherwise restricted by statute, the certificate of incorporation or these bylaws, any director or the entire Board may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors.

No reduction of the authorized number of directors shall have the effect of removing any director prior to the expiration of such director's term of office.

**Article III — COMMITTEES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 *Committees of Directors***. The Board may designate one or more committees, each committee to consist of one or more of the directors of the Company. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the Board or in these bylaws, shall have and may exercise all the powers and authority of the Board in the management of the business and affairs of the Company, and may authorize the seal of the Company to be affixed to all papers that may require it; but no such committee shall have the power or authority to (i) approve or adopt, or recommend to the stockholders, any action or matter (other than the election or removal of directors) expressly required by the DGCL to be submitted to stockholders for approval, or (ii) adopt, amend or repeal any bylaw of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 *Committee Minutes***. Each committee shall keep regular minutes of its meetings and report the same to the Board when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 *Meetings and Actions of Committees***. Meetings and actions of committees shall be governed by, and held and taken in accordance with, the provisions of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **section 2.5** (Place of Meetings; Meetings by Telephone);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **section 2.7** (Regular Meetings);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **section 2.8** (Special Meetings; Notice);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **section 2.9** (Quorum; Voting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **section 2.10** (Board Action by Written Consent Without a Meeting); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) **section 7.5** (Waiver of Notice)

with such changes in the context of those bylaws as are necessary to substitute the committee and its members for the Board and its members. *However*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the time of regular meetings of committees may be determined either by resolution of the Board or by resolution of the committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) special meetings of committees may also be called by resolution of the Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) notice of special meetings of committees shall also be given to all alternate members, who shall have the right to attend all meetings of the committee. The Board may adopt rules for the government of any committee not inconsistent with the provisions of these bylaws.

Any provision in the certificate of incorporation providing that one or more directors shall have more or less than one vote per director on any matter shall apply to voting in any committee or subcommittee, unless otherwise provided in the certificate of incorporation or these bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 *Subcommittees***. Unless otherwise provided in the certificate of incorporation, these bylaws or the resolutions of the Board designating the committee, a committee may create one or more subcommittees, each subcommittee to consist of one or more members of the committee, and delegate to a subcommittee any or all of the powers and authority of the committee.

**Article IV — OFFICERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 *Officers***. The officers of the Company shall be a President and a Secretary. The Company may also have, at the discretion of the Board, a Chairperson of the Board, a Vice Chairperson of the Board, a Chief Executive Officer, one or more Vice Presidents, a Chief Financial Officer, a Treasurer, one or more Assistant Treasurers, one or more Assistant Secretaries, and any such other officers as may be appointed in accordance with the provisions of these bylaws. Any number of offices may be held by the same person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 *Appointment of Officers***. The Board shall appoint the officers of the Company, except such officers as may be appointed in accordance with the provisions of **section 4.3** of these bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 *Subordinate Officers***. The Board may appoint, or empower the Chief Executive Officer or, in the absence of a Chief Executive Officer, the President, to appoint, such other officers and agents as the business of the Company may require. Each of such officers and agents shall hold office for such period, have such authority, and perform such duties as are provided in these bylaws or as the Board may from time to time determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4 *Removal and Resignation of Officers***. Any officer may be removed, either with or without cause, by an affirmative vote of the majority of the Board at any regular or special meeting of the Board or, except in the case of an officer chosen by the Board, by any officer upon whom such power of removal may be conferred by the Board.

Any officer may resign at any time by giving written notice to the Company. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice. Unless otherwise specified in the notice of resignation, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the Company under any contract to which the officer is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 *Vacancies in Offices***. Any vacancy occurring in any office of the Company shall be filled by the Board or as provided in **section 4.3**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6 *Representation of Shares of Other Corporations***. Unless otherwise directed by the Board, the President or any other person authorized by the Board or the President is authorized to vote, represent and exercise on behalf of the Company all rights incident to any and all shares of any other corporation or corporations standing in the name of the Company. The authority granted herein may be exercised either by such person directly or by any other person authorized to do so by proxy or power of attorney duly executed by such person having the authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7 *Authority and Duties of Officers***. Except as otherwise provided in these bylaws, the officers of the Company shall have such powers and duties in the management of the Company as may be designated from time to time by the Board and, to the extent not so provided, as generally pertain to their respective offices, subject to the control of the Board.

**Article V — INDEMNIFICATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 *Indemnification of Directors and Officers in Third Party Proceedings***. Subject to the other provisions of this **Article V**, the Company shall indemnify, to the fullest extent permitted by the DGCL, as now or hereinafter in effect, any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (a "***Proceeding***") (other than an action by or in the right of the Company) by reason of the fact that such person is or was a director or officer of the Company, or is or was a director or officer of the Company serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such Proceeding if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe such person's conduct was unlawful. The termination of any Proceeding by judgment, order, settlement, conviction, or upon a plea of *nolo contendere* or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which such person reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe that such person's conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 *Indemnification of Directors and Officers in Actions by or in the Right of the Company***. Subject to the other provisions of this **Article V**, the Company shall indemnify, to the fullest extent permitted by the DGCL, as now or hereinafter in effect, any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Company to procure a judgment in its favor by reason of the fact that such person is or was a director or officer of the Company, or is or was a director or officer of the Company serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the Company; except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 *Successful Defense***. To the extent that a present or former director or officer of the Company has been successful on the merits or otherwise in defense of any action, suit or proceeding described in **section 5.1** or **section 5.2**, or in defense of any claim, issue or matter therein, such person shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4 *Indemnification of Others***. Subject to the other provisions of this **Article V**, the Company shall have power to indemnify its employees and agents to the extent not prohibited by the DGCL or other applicable law. The Board shall have the power to delegate to such person or persons the determination of whether employees or agents shall be indemnified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5 *Advanced Payment of Expenses***. Expenses (including attorneys' fees) actually and reasonably incurred by an officer or director of the Company in defending any Proceeding shall be paid by the Company in advance of the final disposition of such Proceeding upon receipt of a written request therefor (together with documentation reasonably evidencing such expenses) and an undertaking by or on behalf of the person to repay such amounts if it shall ultimately be determined that the person is not entitled to be indemnified under this **Article V** or the DGCL. Such expenses (including attorneys' fees) actually and reasonably incurred by former directors and officers or other employees and agents of the Company or by persons serving at the request of the Company as directors, officers, employees or agents of another corporation, partnership, joint venture, trust or other enterprise may be so paid upon such terms and conditions, if any, as the Company deems appropriate. The right to advancement of expenses shall not apply to any Proceeding (or any part of any Proceeding) for which indemnity is excluded pursuant to these bylaws, but shall apply to any Proceeding (or any part of any Proceeding) referenced in **section 5.6(ii)** or **5.6(iii)** prior to a determination that the person is not entitled to be indemnified by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6 *Limitation on Indemnification***. Subject to the requirements in **section 5.3** and the DGCL, the Company shall not be obligated to indemnify any person pursuant to this **Article V** in connection with any Proceeding (or any part of any Proceeding):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for which payment has actually been made to or on behalf of such person under any statute, insurance policy, indemnity provision, vote or otherwise, except with respect to any excess beyond the amount paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for an accounting or disgorgement of profits pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of federal, state or local statutory law or common law, if such person is held liable therefor (including pursuant to any settlement arrangements);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) for any reimbursement of the Company by such person of any bonus or other incentive-based or equity-based compensation or of any profits realized by such person from the sale of securities of the Company, as required in each case under the Securities Exchange Act of 1934, as amended (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "***Sarbanes-Oxley Act***"), or the payment to the Company of profits arising from the purchase and sale by such person of securities in violation of Section 306 of the Sarbanes-Oxley Act), if such person is held liable therefor (including pursuant to any settlement arrangements);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) initiated by such person, including any Proceeding (or any part of any Proceeding) initiated by such person against the Company or its directors, officers, employees, agents or other indemnitees, unless (a) the Board authorized the Proceeding (or the relevant part of the Proceeding) prior to its initiation, (b) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law, (c) otherwise required to be made under **section 5.7** or (d) otherwise required by applicable law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if prohibited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.7 *Determination; Claim***. If a claim for indemnification or advancement of expenses under this **Article V** is not paid by the Company or on its behalf within 90 days after receipt by the Company of a written request therefor, the claimant shall be entitled to an adjudication by a court of competent jurisdiction of his or her entitlement to such indemnification or advancement of expenses. To the extent not prohibited by law, the Company shall indemnify such person against all expenses actually and reasonably incurred by such person in connection with any action for indemnification or advancement of expenses from the Company under this **Article V**, to the extent such person is successful in such action. In any such suit, the Company shall, to the fullest extent not prohibited by law, have the burden of proving that the claimant is not entitled to the requested indemnification or advancement of expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.8 *Non-Exclusivity of Rights***. The indemnification and advancement of expenses provided by, or granted pursuant to, this **Article V** shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under the certificate of incorporation or any statute, bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in such person's official capacity and as to action in another capacity while holding such office. The Company is specifically authorized to enter into individual contracts with any or all of its directors, officers, employees or agents respecting indemnification and advancement of expenses, to the fullest extent not prohibited by the DGCL or other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.9 *Insurance***. The Company may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Company, or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity, or arising out of such person's status as such, whether or not the Company would have the power to indemnify such person against such liability under the provisions of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.10 *Survival***. The rights to indemnification and advancement of expenses conferred by this **Article V** shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.11 *Effect of Repeal or Modification***. A right to indemnification or to advancement of expenses arising under a provision of the certificate of incorporation or a bylaw shall not be eliminated or impaired by an amendment to the certificate of incorporation or these bylaws after the occurrence of the act or omission that is the subject of the civil, criminal, administrative or investigative action, suit or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the time of such act or omission explicitly authorizes such elimination or impairment after such action or omission has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.12 *Certain Definitions***. For purposes of this **Article V**, references to the "***Company***" shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this **Article V** with respect to the resulting or surviving corporation as such person would have with respect to such constituent corporation if its separate existence had continued. For purposes of this **Article V**, references to "***other enterprises***" shall include employee benefit plans; references to "***fines***" shall include any excise taxes assessed on a person with respect to an employee benefit plan; and references to "***serving at the request of the Company***" shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner such person reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "***not opposed to the best interests of the Company***" as referred to in this **Article V**.

**Article VI — STOCK**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1 *Stock Certificates; Partly Paid Shares***. The shares of the Company shall be represented by certificates, *provided* that the Board may provide by resolution or resolutions that some or all of any or all classes or series of its stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the Company. Every holder of stock represented by certificates shall be entitled to have a certificate signed by, or in the name of the Company by the Chairperson of the Board or Vice-Chairperson of the Board, or the President or a Vice-President, and by the Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary of the Company representing the number of shares registered in certificate form. Any or all of the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the Company with the same effect as if such person were such officer, transfer agent or registrar at the date of issue. The Company shall not have power to issue a certificate in bearer form.

The Company may issue the whole or any part of its shares as partly paid and subject to call for the remainder of the consideration to be paid therefor. Upon the face or back of each stock certificate issued to represent any such partly paid shares, or upon the books and records of the Company in the case of uncertificated partly paid shares, the total amount of the consideration to be paid therefor and the amount paid thereon shall be stated. Upon the declaration of any dividend on fully paid shares, the Company shall declare a dividend upon partly paid shares of the same class, but only upon the basis of the percentage of the consideration actually paid thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2 *Special Designation on Certificates***. If the Company is authorized to issue more than one class of stock or more than one series of any class, then the powers, the designations, the preferences, and the relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights shall be set forth in full or summarized on the face or back of the certificate that the Company shall issue to represent such class or series of stock; *provided* that, except as otherwise provided in Section 202 of the DGCL, in lieu of the foregoing requirements there may be set forth on the face or back of the certificate that the Company shall issue to represent such class or series of stock, a statement that the Company will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights. Within a reasonable time after the issuance or transfer of uncertificated stock, the Company shall send to the registered owner thereof a written notice containing the information required to be set forth or stated on certificates pursuant to this **section 6.2** or Sections 156, 202(a) or 218(a) of the DGCL or with respect to this **section 6.2** a statement that the Company will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights. Except as otherwise expressly provided by law, the rights and obligations of the holders of uncertificated stock and the rights and obligations of the holders of certificates representing stock of the same class and series shall be identical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3 *Lost Certificates***. Except as provided in this **section 6.3**, no new certificates for shares shall be issued to replace a previously issued certificate unless the latter is surrendered to the Company and cancelled at the same time. The Company may issue a new certificate of stock or uncertificated shares in the place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed, and the Company may require the owner of the lost, stolen or destroyed certificate, or such owner's legal representative, to give the Company a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate or uncertificated shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4 *Dividends***. The Board, subject to any restrictions contained in the certificate of incorporation or applicable law, may declare and pay dividends upon the shares of the Company's capital stock. Dividends may be paid in cash, in property, or in shares of the Company's capital stock, subject to the provisions of the certificate of incorporation.

The Board may set apart out of any of the funds of the Company available for dividends a reserve or reserves for any proper purpose and may abolish any such reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5 *Stock Transfer Agreements***. The Company shall have power to enter into and perform any agreement with any number of stockholders of any one or more classes of stock of the Company to restrict the transfer of shares of stock of the Company of any one or more classes owned by such stockholders in any manner not prohibited by the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6 *Registered Stockholders***. The Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends and to vote as such owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall be entitled to hold liable for calls and assessments the person registered on its books as the owner of shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of another person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7 *Transfers***. Transfers of record of shares of stock of the Company shall be made only upon its books by the holders thereof, in person or by an attorney duly authorized, and, if such stock is certificated, upon the surrender of a certificate or certificates for a like number of shares, properly endorsed or accompanied by proper evidence of succession, assignation or authority to transfer.

**Article VII — MANNER OF GIVING NOTICE AND WAIVER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1 *Notice of Stockholder Meetings***. Notice of any meeting of stockholders, if mailed, is given when deposited in the United States mail, postage prepaid, directed to the stockholder at such stockholder's address as it appears on the Company's records. An affidavit of the Secretary or an Assistant Secretary of the Company or of the transfer agent or other agent of the Company that the notice has been given shall, in the absence of fraud, be *prima facie* evidence of the facts stated therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2 *Notice by Electronic Transmission***. Without limiting the manner by which notice otherwise may be given effectively to stockholders pursuant to the DGCL, the certificate of incorporation or these bylaws, any notice to stockholders given by the Company under any provision of the DGCL, the certificate of incorporation or these bylaws, shall be effective if given by a form of electronic transmission consented to by the stockholder to whom the notice is given. Any such consent shall be revocable by the stockholder by written notice to the Company. Any such consent shall be deemed revoked if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company is unable to deliver by electronic transmission two consecutive notices given by the Company in accordance with such consent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such inability becomes known to the Secretary or an Assistant Secretary of the Company or to the transfer agent, or other person responsible for the giving of notice.

However, the inadvertent failure to treat such inability as a revocation shall not invalidate any meeting or other action.

Any notice given pursuant to the preceding paragraph shall be deemed given:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if by facsimile telecommunication, when directed to a number at which the stockholder has consented to receive notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if by a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of (A) such posting and (B) the giving of such separate notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if by any other form of electronic transmission, when directed to the stockholder.

An affidavit of the Secretary or an Assistant Secretary or of the transfer agent or other agent of the Company that the notice has been given by a form of electronic transmission shall, in the absence of fraud, be *prima facie* evidence of the facts stated therein.

An "***electronic transmission***" means any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved, and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

Notice by a form of electronic transmission shall not apply to Sections 164, 296, 311, 312 or 324 of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3 *Notice to Stockholders Sharing an Address***. Except as otherwise prohibited under the DGCL, without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the Company under the provisions of the DGCL, the certificate of incorporation or these bylaws shall be effective if given by a single written notice to stockholders who share an address if consented to by the stockholders at that address to whom such notice is given. Any such consent shall be revocable by the stockholder by written notice to the Company. Any stockholder who fails to object in writing to the Company, within 60 days of having been given written notice by the Company of its intention to send the single notice, shall be deemed to have consented to receiving such single written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4 *Notice to Person with Whom Communication is Unlawful***. Whenever notice is required to be given, under the DGCL, the certificate of incorporation or these bylaws, to any person with whom communication is unlawful, the giving of such notice to such person shall not be required and there shall be no duty to apply to any governmental authority or agency for a license or permit to give such notice to such person. Any action or meeting which shall be taken or held without notice to any such person with whom communication is unlawful shall have the same force and effect as if such notice had been duly given. In the event that the action taken by the Company is such as to require the filing of a certificate under the DGCL, the certificate shall state, if such is the fact and if notice is required, that notice was given to all persons entitled to receive notice except such persons with whom communication is unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5 *Waiver of Notice***. Whenever notice is required to be given under any provision of the DGCL, the certificate of incorporation or these bylaws, a written waiver, signed by the person entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time of the event for which notice is to be given, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders need be specified in any written waiver of notice or any waiver by electronic transmission unless so required by the certificate of incorporation or these bylaws.

**Article VIII — GENERAL MATTERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1 *Fiscal Year***. The fiscal year of the Company shall be fixed by resolution of the Board and may be changed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2 *Seal***. The Company may adopt a corporate seal, which shall be in such form as may be approved from time to time by the Board. The Company may use the corporate seal by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3 *Annual Report***. The Company shall cause an annual report to be sent to the stockholders of the Company to the extent required by applicable law. If and so long as there are fewer than 100 holders of record of the Company's shares, the requirement of sending an annual report to the stockholders of the Company is expressly waived (to the extent permitted under applicable law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4 *Construction; Definitions***. Unless the context requires otherwise, the general provisions, rules of construction, and definitions in the DGCL shall govern the construction of these bylaws. Without limiting the generality of this provision, the singular number includes the plural, the plural number includes the singular, and the term "***person***" includes both a corporation and a natural person.

**Article IX — AMENDMENTS**

These bylaws may be adopted, amended or repealed by the stockholders entitled to vote. However, the Company may, in its certificate of incorporation, confer the power to adopt, amend or repeal bylaws upon the directors. The fact that such power has been so conferred upon the directors shall not divest the stockholders of the power, nor limit their power to adopt, amend or repeal bylaws.

A bylaw amendment adopted by stockholders which specifies the votes that shall be necessary for the election of directors shall not be further amended or repealed by the Board.

## Exhibit 10.2

**Exhibit 10.2**

TRANSITION FUNDING, SUPPORT AND SERVICES AGREEMENT

BY AND BETWEEN

VIVANI MEDICAL, INC.

AND

CORTIGENT, INC.

Dated as of March 19, 2023

**TRANSITION FUNDING, SUPPORT AND SERVICES AGREEMENT**

This TRANSITION FUNDING, SUPPORT AND SERVICES AGREEMENT (this "<u>Agreement</u>"), dated as of March 19, 2023 (the "<u>Effective Date</u>"), is by and between Vivani Medical, Inc., a California corporation ("<u>Parent</u>"), and Cortigent, Inc., a Delaware corporation ("<u>Cortigent</u>"). Parent and Cortigent may be referred to herein individually as a "<u>Party</u>" and collectively as the "<u>Parties</u>".

**R E C I T A L S**

WHEREAS, Cortigent is presently a wholly owned subsidiary of Parent formerly known as Second Sight Medical Products, Inc. ("<u>Second Sight</u>");

WHEREAS Cortigent includes the personnel, technologies, intellectual property and other assets that formerly comprised Second Sight;

WHEREAS, Cortigent is a pioneer in developing targeted neurostimulation systems to provide artificial vision to blind persons and is developing new medical device systems to help patients recover other critical body functions;

WHEREAS, Cortigent is pursuing a transaction to sell and issue shares of common stock in a firm commitment underwriting of an initial public offering of securities, in connection with which Cortigent shall satisfy the listing requirements of, and its common stock shall be listed on, The Nasdaq Capital Market (the "<u>IPO</u>");

WHEREAS, Parent has heretofore provided, support and certain other services to Cortigent, and has funded the entirety of Cortigent's operations;

WHEREAS, Parent desires to provide funding support payments to Cortigent prior to the closing of the IPO, as may be necessary for Cortigent to operate its business in the manner and at the levels that are substantially comparable as heretofore conducted by Second Sight, or as may be necessary to complete the IPO;

WHEREAS, after the closing of the IPO, Parent may provide, or cause to be provided, certain administrative and support services for Cortigent's business on the terms and conditions set forth in this Agreement, including <u>Schedule 2.1(a)</u> attached hereto; and

WHEREAS, after the closing of the IPO, Cortigent may provide, or cause to be provided, certain administrative and support services for Parent's business on the terms and conditions set forth in this Agreement, including <u>Schedule 2.1(b)</u> attached hereto.

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained in this Agreement, the Parties, intending to be legally bound, hereby agree as follows:

**Article I**<br>FUNDING SUPPORT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Funding Support; Duration</u>. Subject to the terms and conditions of this Agreement, Parent shall provide or cause to be provided to Cortigent the funding needed to support Cortigent's salaries, rent, ongoing development, regulatory, studies and other services ("<u>Funding Support Payments</u>"), during the period commencing on January 1, 2023 and ending on the earlier of (a) December 31, 2024 and (b) the date of the closing of the IPO (the "<u>Funding Support Term</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Funding Support Payment Amounts</u>. Parent shall determine in good faith the amounts of the Funding Support Payments to be provided to Cortigent hereunder, provided that, during the Funding Support Term, if (a) Cortigent requests Parent to increase the amount of the Funding Support Payments and (b) such increase is reasonably determined by Cortigent as necessary for Cortigent to operate its businesses, then Parent shall consider such request in good faith and representatives of Parent and Cortigent shall in good faith negotiate the amounts of any such increase, provided that Parent shall provide any such increase at its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Payment of Funding Support Payments; Invoices</u>. After the Effective Date and during the Funding Support Term, upon request by Cortigent for Funding Support Payments necessary to support Cortigent's activities, Parent shall promptly pay to Cortigent the applicable Funding Support Payment by electronic funds transmission in U.S. dollars to the account designated by Cortigent. Promptly, but no later than ten (10) business days following the Effective Date, Parent shall submit an invoice to Cortigent detailing all Funding Support Payments made by Parent to or on behalf of Cortigent from the period commencing on January 1, 2023 until the Effective Date. Within ten (10) business days of the beginning of each calendar month during the Funding Support Term, Parent shall submit an invoice to Cortigent detailing: (a) all Funding Support Payments made by Parent for the preceding month and (b) the then-current Cumulative Repayment Amount at the estimated amounts set forth on <u>Schedule 1.3</u> to this Agreement accrued by Cortigent as of the date of the applicable invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>Repayment of Funding Support Payments</u>. Promptly upon expiration of the Funding Support Term, Parent shall submit a final invoice to Cortigent setting forth the Cumulative Repayment Amount. Within ten (10) business days of the invoice date, Cortigent shall pay to Parent the Cumulative Repayment Amount by electronic funds transmission in U.S. dollars to the account designated by Parent. "<u>Cumulative Repayment Amount</u>" means the total amount of Funding Support Payments paid by Parent to Cortigent during the Funding Support Term plus interest from and after the date on which the applicable Funding Support Payment was made, calculated at an annual rate equal to five percent (5%), or such lesser interest charge permitted by applicable Law (as defined below).

**Article II**<br>SERVICES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Services</u>. Following the IPO, and subject to the terms and conditions of this Agreement (a) Parent will provide to Cortigent each of those services set forth in <u>Schedule 2.1(a)</u> attached hereto (the "<u>Parent Services</u>") using the personnel and for the duration set forth in <u>Schedule 2.1(a)</u>, and (b) Cortigent will provide to Parent each of those services set forth in <u>Schedule 2.1(b)</u> attached hereto (the "<u>Cortigent Services</u>", and together with the Parent Services, the "<u>Services</u>"), using the personnel and for the duration set forth in <u>Schedule 2.1(b)</u>. For purposes of this Agreement, with respect to each Service, "<u>Provider</u>" will mean the Party (or its designated affiliate(s)) that provides such Service, and "<u>Recipient</u>" will mean the Party (or its designated affiliate(s)) that receives such Service, all as set forth in <u>Schedule 2.1(a)</u> or <u>Schedule 2.1(b)</u> (as applicable) to this Agreement. All of the Services will be for the sole use and benefit of the relevant Recipient. From time to time during the term of this Agreement, each Party may request from the other such modified, additional or different Services to be provided to or received from the other. Each party shall consider such requests in good faith and, if mutually agreed upon, may amend <u>Schedule 2.1(a)</u> or <u>Schedule 2.1(b)</u> (as applicable), to reflect such modified, additional or different Services, including the relevant Service Fees (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Level of Services</u>. The Services will be provided and utilized in good faith and in a reasonable manner by the Parties hereto. For the avoidance of doubt, none of the Services will require the relevant Provider to provide and the relevant Provider will not be deemed to have provided any legal, accounting or tax advice to the Recipient in connection with any such Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Access</u>. Each Party agrees to use its good faith efforts to cooperate with the other Party in all matters relating to the provision, receipt and transition of the Services, including exchanging relevant information and granting the personnel of the other Service Party access to locations, systems and information (subject to obligations of confidentiality) as reasonably necessary for the provision of Services hereunder. Each Service Party agrees to comply with reasonable policies of the other Service Party and to be appropriately supervised or accompanied as required by such other Service Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Transitional Nature of Services</u>. The Parties acknowledge the transitional nature of the Services and that, subject to <u>Section 2.2</u>, the Provider may make changes from time to time in the manner of performing the Services if the Provider is making similar changes in performing similar services for itself or its affiliates, so long as (a) the Provider furnishes to the Recipient prior written notice, within a reasonable period of time, containing a reasonably sufficient description of such intended changes, and (b) such changes are not of material adverse effect to the value, sufficiency or usefulness of such Service.

**Article III**

SERVICE FEES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Service Fees</u>. As compensation for provision of the Services, the Recipient of Services shall pay to the Provider of such Services a fee for the Services as provided in <u>Schedule 2.1(a)</u> or <u>Schedule 2.1(b) (as applicable)</u> (each such fee, a "<u>Service Fee</u>"). The Services Fees may be updated from time to time upon mutual agreement of the Parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Reimbursement Charges</u>. Each Recipient shall reimburse the applicable Provider for reasonable, documented unaffiliated third-Party out-of-pocket costs and expenses incurred by Provider in connection with providing the Services (including necessary travel-related expenses) ("<u>Reimbursement Charges</u>"). Any authorized travel-related expenses incurred in performing the Services shall be incurred and charged to the applicable Recipient in accordance with the Provider's then-applicable business travel policies made known to the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Invoicing and Payment for Services</u>. Upon commencement of the Service Term, within ten (10) business days of the of the beginning of each calendar month during Service Term, Provider shall submit an invoice to Recipient for the Service Fees (and any applicable Reimbursement Charges) for all Services provided by the Provider during the immediately preceding calendar month. The Recipient shall pay to the Provider undisputed invoiced amounts within thirty (30) days after the Recipient's receipt of each such invoice and any disputed amounts within thirty (30) days after the final resolution of such dispute. Such payment shall be made by electronic funds transmission in U.S. dollars to the account designated by the Provider. Any amounts that are not paid when due, at Provider's discretion, may bear interest from and after the date on which such invoice first became overdue at an annual rate equal to five percent (5%), or the maximum monthly interest charge permitted by applicable Law, if less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Taxes</u>. The Recipient will pay (or reimburse the Provider for) any and all taxes and governmental charges, including sales, use, value added, stamp, withholding or similar taxes, imposed on the Provider or which the Provider will have any obligation to collect with respect to or relating to this Agreement, the Services or the performance by the Provider of its obligations hereunder, other than income or franchise taxes, gross receipt taxes or similar taxes imposed on the income of the Provider. The Parties will work together in good faith to reduce or eliminate the applicability and amount of all taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Acknowledgement Regarding Pre-IPO Services</u>. For the avoidance of doubt, each Party may provide the services of its respective personnel to the other Party prior to the IPO. If such services are provided, the parties acknowledge that as of the Effective Date and, as anticipated through completion of the IPO, the value of the services provided by one Party to the other, are deemed to be equivalent in value and offset the value of the services provided by the other Party. Therefore, the Parties acknowledge that neither party shall accrue any service fees or expenses to the other prior to the IPO, and that no invoices from one Party to the other are required to be submitted.

**Article IV**

INTELLECTUAL PROPERTY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Work for Hire</u>. Except as provided in Section 4.3, all deliverables resulting from the Services provided under this Agreement are "Works Made for Hire" as defined in the U.S. Copyright Act and other copyrightable works will be deemed, upon creation, to be assigned to Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Inventions and Assignment</u>. Except as provided in Section 4.3, any materials, data, processes, documents, deliverables, information (including Confidential Information), discoveries, inventions, know-how and the like developed or generated by or on behalf of Provider during the course of performing Services, whether or not patentable, and all related patent, copyright and other intellectual property rights in any of the foregoing (collectively the "Inventions") shall be the sole and exclusive property of Recipient. Provider hereby assigns, and to the extent it cannot presently assign, agrees to assign, to Recipient all of Provider's worldwide right, title and interest in and to such Inventions. Provider shall assist Recipient in securing for Recipient any patents, copyrights or other proprietary rights in such Inventions, and shall take such actions and execute such documents as Recipient may reasonably request in connection with providing such assistance or otherwise to vest in Recipient all right, title and interest in and to such Inventions, including without limitation any and all applications, assignments or other instruments. Provider shall be compensated for all of its reasonable out-of-pocket costs and expenses associated with such requested assistance. To the extent Inventions cannot be assigned to Recipient under this Article IV, Provider grants to Recipient an exclusive perpetual, irrevocable, transferable, fully paid-up, worldwide license, with the right to grant sublicenses, under such Inventions for any and all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Provider Property</u>. Any (i) processes or process improvements developed by Provider related to Provider's pre-existing technology that are general in nature and are not unique or specific to the work performed for Recipient, and (ii) pre-existing patents, know-how or other technology or information owned or controlled by Provider prior to the effective date of this Agreement and that are incorporated into or embodied in any Inventions or deliverables provided by Provider under this Agreement will be owned by Provider. For clarity, such pre-existing technology or pre-existing patents, know-how or other technology or information owned or controlled by Provider shall not include any such technology, patents, know-how or information which has been assigned or exclusively licensed to Recipient or any third Party. Provider hereby grants to Recipient a perpetual, irrevocable, non-exclusive, worldwide, royalty-free, fully paid-up license (with a right to grant sublicenses) under Provider's intellectual property rights solely to the extent necessary for Recipient to utilize the Inventions and the other deliverables of Services for any purpose. The foregoing license may be sublicensed by Recipient in connection with the transfer by Recipient of the deliverables or Inventions to which the license relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>No Other License Grant</u>. Except as expressly set forth in this Agreement, nothing in this Agreement, nor the delivery of any information or materials to Provider by Recipient (or any third Party acting on its behalf) in connection with Provider's performance of Services under this Agreement shall be deemed to grant to either Party any right or license under any patents, patent applications, know-how, technology, inventions or other intellectual property of the other Party. Notwithstanding anything in this Agreement to the contrary, Recipient shall own all right, title and interest in and to all inventions, know-how, information and materials, and all related intellectual property rights, that arise from Recipient's use of Inventions and the other deliverables and results of Services arising from this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Third Party Intellectual Property</u>. Provider will not knowingly utilize in the performance of work under this Agreement or incorporate into any deliverable or materials provided to Recipient any technology or materials covered by proprietary rights of a third Party except as Provider is freely permitted to do without further compensation by Provider or Recipient to any third Party.

**Article V**<br>DISCLAIMER OF WARRANTIES; COMPLIANCE WITH LAW

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Disclaimer of Warranties</u>. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT THE SERVICES ARE PROVIDED AS-IS, THAT EACH RECIPIENT ASSUMES ALL RISKS AND LIABILITY ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON THE SERVICES, AND EACH PROVIDER, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT THERETO. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH PROVIDER HEREBY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICES, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, INCLUDING ANY REPRESENTATION OR WARRANTY IN REGARD TO QUALITY, PERFORMANCE, NON-INFRINGEMENT, COMMERCIAL UTILITY, MERCHANTABILITY OR FITNESS OF ANY SERVICE FOR A PARTICULAR PURPOSE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Compliance with Laws and Regulations</u>. Each Party shall be responsible for its compliance with any and all law, statutes, regulations and orders applicable to such Party (collectively, "**Laws**") applicable to its performance under this Agreement. No Party will knowingly take any action in violation of any such applicable Law that results in liability being imposed on the other Party.

**Article VI**<br>LIMITED LIABILITY AND INDEMNIFICATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Limitation of Liability</u>. No Provider will have any liability to any Recipient, whether in contract, tort or otherwise, for or in connection with any Services rendered or to be rendered by or on behalf of such Provider pursuant to this Agreement, or any deliverables associated therewith, except to the extent that such Recipient suffers Losses (as defined below) that result from the gross negligence, willful misconduct or fraud of Provider in connection with any such Services. Notwithstanding anything to the contrary in this Agreement, no Party hereto will have any liability for any punitive, special or exemplary damages or losses of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Parent Indemnification</u>. Except as otherwise provided in this Agreement, Parent shall indemnify, defend and hold harmless Cortigent and its directors, officers and employees, and their respective successors and assigns (collectively, the "**Cortigent Indemnitees**"), from and against any and all losses, claims, damages, liabilities and expenses (collectively, "**Losses**") of the Cortigent Indemnitees solely or primarily relating to, arising out of or resulting the matters listed on Schedule 6.2 attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Cortigent Indemnification</u>. Except as otherwise provided in this Agreement, Cortigent shall indemnify, defend and hold harmless Parent and its directors, officers and employees, and their respective successors and assigns (collectively, the "**Parent Indemnitees**"), from and against any and all Losses of the Parent Indemnitees, including any and all manner of action and actions, causes and causes of action, claims, charges, demands, counterclaims, crossclaims, suits, debts, dues, promises, losses, sums of money, accounts, bills, specialties, covenants, contracts, rights of setoff and recoupment, controversies, damages, liens, claims of liens, claims of costs, penalties, attorneys' fees, or any other compensation, recovery or relief on account of any liability, obligation, demand or cause of action of whatever nature, whether in law, equity or otherwise, whether known or unknown, fixed or contingent, joint and/or several, secured or unsecured, due or not due, primary or secondary, liquidated or unliquidated, contractual or tortious, direct, indirect, or derivative, asserted or unasserted, foreseen or unforeseen, suspected or unsuspected, now existing, heretofore existing or which may heretofore accrue against any of the Parent Indemnitees which are based on any act, fact, event or omission or other matter, cause or thing relating to, arising out of or resulting from the operations of Second Sight's business prior to the consummation of the business combination between Second Sight and Parent on August 30, 2022 that do not solely or primarily relate to, arise out of or result from the matters listed on Schedule 6.2 attached hereto.

Notwithstanding anything to the contrary, the Parties agree and intend that these Sections 6.2 and 6.3 set forth the Parties' mutual indemnification obligations to each other with respect to the matters described herein, to supersede any other indemnification obligations set forth in any agreement, instrument or document previously entered into between the Parties, including but not limited to those set forth in the Asset Contribution Agreement, dated as of December 28, 2022 (the "**Asset Contribution Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Third Party Claims</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a Party entitled to indemnification hereunder (an "**Indemnitee**") shall receive notice or otherwise learn of the assertion by a third party (including any governmental authority) of any claim or of the commencement by any such Person of any action, suit, or proceeding (collectively, a "**Third Party Claim**") with respect to which a Party required to provide indemnification hereunder (an "**Indemnifying Party**") may be obligated to provide indemnification to such Indemnitee, such Indemnitee shall give such Indemnifying Party and each Party to this Agreement written notice thereof as soon as reasonably practicable, but no later than thirty (30) days after becoming aware of such Third Party Claim. Any such notice shall describe the Third Party Claim in reasonable detail. If any Party shall receive notice or otherwise learn of the assertion of a Third Party Claim for which an Indemnifying Party may be obligated to provide indemnification to an Indemnitee, such Party shall give the other Party to this Agreement written notice thereof within thirty (30) days after becoming aware of such Third Party Claim. Any such notice shall describe the Third Party Claim in reasonable detail. Notwithstanding the foregoing, the failure of any Indemnitee or other Party to give such notice as provided hereunder shall not relieve the related Indemnifying Party of its obligations under this <u>ARTICLE VI</u> except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An Indemnifying Party shall be entitled to assume the defense of any Third Party Claim, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel; provided that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment, based upon written advice of its counsel, a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. Within thirty (30) days after the receipt of notice from an Indemnitee in accordance with <u>Section 6.4</u> (or sooner, if the nature of such Third Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether the Indemnifying Party will assume responsibility for defending such Third Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume the defense of a Third Party Claim, such Indemnitee shall have the right to employ separate counsel and to participate in (but not control) the defense, compromise or settlement thereof, but the fees and expenses of such counsel shall be the expense of such Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If an Indemnifying Party fails to assume the defense of a Third Party Claim within thirty (30) days after receipt of written notice of such claim, the Indemnitee will, upon delivering notice to such effect to the Indemnifying Party, have the right to undertake the defense, compromise or settlement of such Third Party Claim subject to the limitations as set forth herein; provided, however, that such Third Party Claim shall not be compromised or settled without the written consent of the Indemnifying Party, which consent shall not be unreasonably withheld, delayed or conditioned. If the Indemnitee assumes the defense of any Third Party Claim, it shall keep the Indemnifying Party reasonably informed of the progress of any such defense, compromise or settlement. The Indemnifying Party shall reimburse all such costs and expenses of the Indemnitee in the event it is ultimately determined by a court of competent jurisdiction that the Indemnifying Party is obligated to indemnify the Indemnitee with respect to such Third Party Claim. In no event shall an Indemnifying Party be liable for any settlement effected without its consent, which consent will not be unreasonably withheld, delayed or conditioned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event of payment by or on behalf of any Indemnifying Party to any Indemnitee in connection with any Third Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right, defense or claim relating to such Third Party Claim against any claimant or plaintiff asserting such Third Party Claim or against any other Person. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense (including allocated costs of in-house counsel and other in-house personnel) of such Indemnifying Party, in prosecuting any subrogated right, defense or claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Direct Indemnification</u>. Any claim on account of a Loss which does not result from a Third Party Claim shall be asserted by written notice given by the Indemnitee to the related Indemnifying Party. Such Indemnifying Party shall have a period of thirty (30) days after the receipt of such notice within which to dispute all or a portion of the claimed Loss. If such Indemnifying Party does not dispute all or any portion of the claimed Loss within such thirty (30) day period, such Indemnifying Party shall be deemed to have accepted responsibility to make payment with respect to the Loss or the undisputed portion thereof (as applicable). If such Indemnifying Party rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such Party as contemplated by this Agreement.

**Article VII**

TERM AND TERMINATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Term and Termination</u>. This Agreement shall commence upon the date hereof and shall terminate (a) if the IPO has not occurred, on December 31, 2024, and (b) if the IPO has occurred, immediately following the last date on which either Party is obligated to provide any Service to the other Party in accordance with the terms of this Agreement. Notwithstanding the foregoing, this Agreement may also be terminated by the mutual written agreement of the Parties to terminate this Agreement in its entirety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Termination of Services</u>. With respect to the Services, (a) any Recipient may from time to time terminate such Service for any reason or no reason, upon providing at least ten (10) days' prior written notice to the Provider; (b) any Recipient may terminate such Service if the Provider has failed to perform any of its material obligations under this Agreement with respect to such Service, and such failure to perform continues unremedied for a period of ten (10) days following a written notice from Recipient; and (c) the Parties may terminate one or more Services immediately upon mutual agreement. The relevant <u>Schedule 2.1(a)</u> or <u>Schedule 2.1(b)</u> (as applicable) will be updated to reflect any terminated Service. In the event that the effective date of the termination of any Service is a day other than at the end of a month, the Service Fee associated with such Service for the month in which such Service is terminated will be pro-rated appropriately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Effect of Termination</u>. Upon termination of any Service pursuant to this Agreement, Provider will have no further obligation to provide the terminated Service, and Recipient will have no obligation to pay any future Service Fee relating to any such Service; <u>provided</u>, <u>however</u>, that Recipient shall remain obligated to Parent for the (a) Service Fee and Reimbursement Charges owed and payable in respect of Services provided prior to the effective date of termination. In connection with the termination of any Service, the provisions of this Agreement not relating solely to such terminated Service shall survive any such termination. In connection with a termination of this Agreement as a whole, <u>Article V</u>, <u>Article VI</u>, <u>Article VII</u>, and this <u>Section 7.3</u>, and all confidentiality obligations under this Agreement and liability for all due and unpaid Service Fees, Reimbursement Charges and the Cumulative Repayment Amount shall continue to survive indefinitely.

**Article VIII**

THE IPO

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Sole and Absolute Discretion; Cooperation</u>. Notwithstanding anything to the contrary contained herein, Parent shall, in its sole and absolute discretion, determine the terms of the IPO and the terms of the underwriting agreement to be entered into in connection with the IPO (the "**Underwriting Agreement**"), including the form, structure and terms of any transaction(s) and/or offering(s) to effect the IPO and the timing and conditions to the consummation of the IPO. Cortigent shall cooperate with Parent to accomplish the IPO and shall, at Parent's direction, promptly take any and all actions necessary or desirable to effect the IPO, including, without limitation, the registration under the Securities Act and Exchange Act of shares of Cortigent's common stock on an appropriate registration form or forms to be designated by Parent (collectively, the "**IPO Registration Statements**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Actions Relating to the IPO</u>. Cortigent shall use its reasonable best efforts to effect the IPO, including but not limited to taking those actions specified in this <u>Section 8.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Registration Statements.* Cortigent shall prepare and file the IPO Registration Statements, and such amendments or supplements thereto, and use its reasonable best efforts to cause the same to become and remain effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Underwriting Agreement.* Cortigent shall enter into the Underwriting Agreement, in form and substance satisfactory to Parent and shall comply with and perform its obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *IPO Consultation.* Subject to Section 8.1 hereof, Parent and Cortigent shall consult with each other and the underwriters regarding the timing, pricing and other material matters with respect to the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Securities Law Matters.* Cortigent shall use its commercially reasonable efforts to take all such action under state securities and blue sky laws (and any comparable Laws under any foreign jurisdictions) to qualify its securities in such jurisdictions, if necessary and appropriate, in connection with the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Nasdaq Listing.* In connection with the IPO, Cortigent shall apply for the listing of its common stock on the Nasdaq Global Select Market, Nasdaq Global Market or the Nasdaq Capital Market, as appropriate, and shall use commercially reasonable efforts to cause the listing of such common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Preparation of Marketing Materials.* Cortigent shall participate in the preparation of materials and presentations to be used in any testing-the-waters or roadshow meetings relating to the IPO as Parent or the underwriters shall deem necessary or desirable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *IPO Costs.* Cortigent shall pay (or reimburse Parent if previously paid by Parent) all of the costs related to the IPO that are borne by Cortigent under the Underwriting Agreement, which shall include, without limitations, all fees paid or payable to the Securities and Exchange Commission (the "**SEC**") to register the securities of Cortigent, all fees paid or payable to the Financial Industry Regulatory Authority, any Nasdaq listing fees, the fees of Cortigent's counsel related to the IPO, all of the reimbursable expenses of the underwriters pursuant to the Underwriting Agreement, and all of the costs of producing, printing, mailing and otherwise distributing the prospectus to be used for the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Cortigent Directors and Officers.* On or prior to the effectiveness of the IPO Registration Statements, Parent and Cortigent shall take all necessary actions to effect the appointments of the directors and executive officers of Cortigent as set forth in the IPO Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Conditions Precedent to Consummation of the IPO</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 8.1</u>, the Parties hereto shall use their reasonable best efforts to satisfy the conditions to the consummation of the IPO set forth in this <u>Section 8.3</u> and contained in the Underwriting Agreement. The obligations of the Parties to consummate the IPO shall be conditioned on the satisfaction, or waiver (if possible to be waived) by Parent in its sole discretion, of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The IPO Registration Statements shall have been become effective, and there shall be no stop-order or suspension in effect with respect thereto, and no proceeding for that purpose shall have been instituted by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The actions and filings with regard to state securities and blue sky laws (and any comparable Laws under any foreign jurisdictions) referenced in <u>Section 8.2(d)</u>, if any, shall have been taken and Cortigent's securities shall have been qualified in such jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Cortigent common stock shall have been listed on the Nasdaq Global Select Market, Nasdaq Global Market or the Nasdaq Capital Market, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Cortigent and the underwriters shall have entered into the Underwriting Agreement, and all conditions to the obligations of Parent, Cortigent and the underwriters shall have been satisfied or waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No order, injunction or decree issued by any court or agency of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the IPO or any of the other transactions contemplated by this Agreement shall be in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Such other actions as the Parties hereto may, based upon the advice of counsel, reasonably request to be taken prior to the IPO in order to assure the successful completion of the IPO and the other transactions contemplated by this Agreement shall have been taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) This Agreement shall not have been terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) No event or development shall have occurred or exist or be expected to occur that, in the judgment of the Parent Board, in its sole discretion, makes it inadvisable to effect the IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The foregoing conditions are for the sole benefit of Parent and shall not give rise to or create any duty on the part of Parent or the Parent Board to waive or not waive such conditions or in any way limit Parent's right to terminate this Agreement as set forth in <u>Article VII</u> or alter the consequences of any such termination from those specified in such Article. Any determination made by the Parent Board prior to the IPO concerning the satisfaction or waiver of any or all of the conditions set forth in this <u>Section 8.3</u> shall be conclusive.

**Article IX**<br>GENERAL PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>No Agency</u>. Nothing in this Agreement shall be deemed in any way or for any purpose to constitute any Party as an agent of an unaffiliated Party in the conduct of such other Party's business. In providing any Service under this Agreement, each Provider shall act as an independent contractor and not as the agent of the applicable Recipient in performing such Service, maintaining control over its employees, its subcontractors and their employees and complying with all withholding of income at source requirements, whether federal, national, state, local or foreign.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Treatment of Confidential Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties shall not, and shall cause all other persons providing Services or having access to information of the other Party that is known to such Party as confidential or proprietary (the "<u>Confidential Information</u>") not to, disclose to any other person or use, except for purposes of this Agreement, any Confidential Information of the other Party; <u>provided</u>, <u>however</u>, that the Confidential Information may be used by such Party to the extent that such Confidential Information has been (i) in the public domain through no fault of such Party or any of its representatives or (ii) later lawfully acquired from other sources by such Party, which sources are not themselves bound by a confidentiality obligation; <u>provided</u>, <u>further</u>, that each Party may disclose Confidential Information of the other Party, to the extent not prohibited by applicable law: (A) to its representatives on a need-to-know basis in connection with the performance of such Party's obligations under this Agreement (provided that such representatives are bound by obligations of confidentiality and non-use consistent with the obligations in this Agreement); (B) in any report, statement, testimony or other submission required to be made to any governmental authority having jurisdiction over the disclosing Party; or (C) in order to comply with applicable law, or in response to any summons, subpoena or other legal process or formal or informal investigative demand issued to the disclosing Party in the course of any litigation, investigation or administrative proceeding. In the event that a Party becomes legally compelled (based on advice of counsel) by deposition, interrogatory, request for documents subpoena, civil investigative demand or similar judicial or administrative process to disclose any Confidential Information of the other Party, such disclosing Party shall provide the other Party with prompt prior written notice of such requirement, and, to the extent reasonably practicable, cooperate with the other Party (at such other Party's expense) to obtain a protective order or similar remedy to cause such Confidential Information not to be disclosed, including interposing all available objections thereto, such as objections based on settlement privilege. In the event that such protective order or other similar remedy is not obtained, the disclosing Party shall furnish only that portion of the Confidential Information that has been legally compelled, and shall exercise its commercially reasonable efforts (at such other Party's expense) to obtain assurance that confidential treatment will be accorded such Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Party shall, and shall cause its representatives to, protect the Confidential Information of the other Party by using the same degree of care to prevent the unauthorized disclosure of such as the Party uses to protect its own confidential information of a like nature, but in any event no less than a reasonable degree of care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Party shall be liable for any failure by its respective representatives to comply with the restrictions on use and disclosure of Confidential Information contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Party shall comply with all applicable local, state, national, federal and foreign privacy and data protection laws that are or that may in the future be applicable to the provision of Services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Further Assurances</u>. Each Party covenants and agrees that, without any additional consideration, it shall execute and deliver any further legal instruments and perform any acts that are or may become necessary to effectuate this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Notices</u>. Except with respect to routine communications by the Parties, all notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by facsimile or electronic transmission with receipt confirmed or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this <u>Section 9.4</u>):

If to Parent, to:

Vivani Medical, Inc.<br> 5858 Horton Street, Suite 280<br> Emeryville, California 94608<br> Attention: Chief Executive Officer<br> E-mail: adam.mendelsohn@vivani.com

with a copy (which shall not constitute notice) to:<br> Goodwin Procter LLP<br> 601 Marshall St.<br> Redwood City, CA 94063

Attention: Deepa Rich<br> E-mail: drich@goodwinlaw.com

If to Cortigent, to:<br> Cortigent, Inc.<br> 27200 Tourney Road Suite 315<br> Valencia, California 91355<br> Attention: General Counsel<br> E-mail:scottd@cortigent.com

with a copy (which shall not constitute notice) to:<br> Aaron A. Grunfeld<br> Law Offices Aaron A. Grunfeld & Associates<br> 9454 Wilshire Boulevard, Suite 600<br> Beverly Hills, California 90212<br> Attention: Aaron A. Grunfeld<br> E-mail:agrunfeld@grunfeldlaw.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Severability</u>. If any provision of this Agreement or the application thereof to any person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Entire Agreement</u>. This Agreement and the Exhibits, Schedules and appendices hereto and thereto, contain the entire agreement between the Parties with respect to the subject matter hereof, supersede all previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter, and there are no agreements or understandings between the Parties other than those set forth or referred to herein or therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>No Third-Party Beneficiaries</u>. This Agreement is for the sole benefit of the Parties and their permitted successors and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon any other person, including any union or any employee or former employee of Parent or Cortigent, any legal or equitable right, benefit or remedy of any nature whatsoever, including any rights of employment for any specified period, under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>Governing Law; Jurisdiction</u>. This Agreement (and any claims or disputes arising out of or related hereto or thereto or to the transactions contemplated hereby and thereby or to the inducement of any Party to enter herein and therein, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall be governed by and construed and interpreted in accordance with the laws of the State of California irrespective of the choice of laws principles of the State of California including all matters of validity, construction, effect, enforceability, performance and remedies. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of the State of California and to the jurisdiction of the United States District Courts located in California for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of the State of California or the United States District Courts located in the State of California, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 <u>Amendment</u>. No provisions of this Agreement, including any Schedules to this Agreement, shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 <u>Rules of Construction</u>. In this Agreement, (a) words in the singular shall be deemed to include the plural and vice versa and words of one gender shall be deemed to include the other genders as the context requires; (b) the terms "hereof," "herein," and "herewith" and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole (including all of the Schedules, Exhibits and Appendices hereto) and not to any particular provision of this Agreement; (c) Article, Section, Schedule, Exhibit and Appendix references are to the Articles, Sections, Schedules, Exhibits and Appendices to this Agreement unless otherwise specified; (d) unless otherwise stated, all references to any agreement (including this Agreement) shall be deemed to include the exhibits, schedules and annexes (including all Schedules, Exhibits and Appendixes) to such agreement; (e) the word "including" and words of similar import when used in this Agreement shall mean "including, without limitation," unless otherwise specified; (f) the word "or" shall not be exclusive; (g) unless otherwise specified in a particular case, the word "days" refers to calendar days; (h) references herein to this Agreement or any other agreement contemplated herein shall be deemed to refer to this Agreement or such other agreement as of the date on which it is executed and as it may be amended, modified or supplemented thereafter, unless otherwise specified; and (i) unless expressly stated to the contrary in this Agreement, all references to "the date hereof," "the date of this Agreement," "hereby" and "hereupon" and words of similar import shall all be references to the effective date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12 <u>Assignability</u>. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns; <u>provided</u> that neither Party may assign its rights or delegate its obligations under this Agreement without the express prior written consent of the other Party hereto. Notwithstanding the foregoing, no such consent shall be required for the assignment of a Party's rights and obligations under this Agreement, in connection with a change of control of a Party so long as the resulting, surviving or transferee Person assumes all the obligations of the relevant Party thereto by operation of law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13 <u>Non-Recourse</u>. No past, present or future director, officer, employee, incorporator, member, partner, shareholder, affiliate, agent, attorney or representative of either Parent or Cortigent or their affiliates shall have any liability for any obligations or liabilities of Parent or Cortigent , respectively, under this Agreement or for any claims based on, in respect of, or by reason of, the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14 <u>Mutual Drafting</u>. This Agreement shall be deemed to be the joint work product of the Parties hereto and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable.

IN WITNESS WHEREOF, the Parties have caused this Transition Funding, Support and Services Agreement to be executed by their duly authorized representatives as of the date first written above.

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| | |
|:---|:---|
| VIVANI MEDICAL, INC. | VIVANI MEDICAL, INC. |
| By: | /s/ Adam Mendelsohn |

---

Name: Adam Mendelsohn <br> Title: CEO

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| | |
|:---|:---|
| CORTIGENT INC. | CORTIGENT INC. |
| By: | /s/ Jonathan Adams |

---

Name: Jonathan Adams <br> Title: CEO

Signature page to Transition Funding, Support and Services Agreement

<u>Schedule 1.3 – Cumulative Repayment Amount</u>

Note: The following schedule setting forth estimated amounts that will accrue, on a cumulative basis, beginning January 1, 2023 is provided for illustrative purposes only. As costs related to Cortigent's operations are actually incurred, Cortigent shall request payment of such costs from Parent. All costs actually paid by Parent shall be invoiced to Cortigent and shall be repaid to Parent as set forth in Section 1.4.

---

| | |
|:---|:---|
| Month: | \* |
| January | $505333 |
| February | $1012772 |
| March | $1522325 |
| April | $2034001 |
| May | $2547809 |
| June | $3063758 |

---

<u>Schedule 2.1(a) – Parent Services, Duration and Service Fees</u>

The Parties will negotiate in good faith the terms and scope of the Services to be provided, including with respect to the personnel to provide the Service, the Service to be performed, the duration of the Service and the applicable fee(s). Following negotiation and upon mutual agreement, this Schedule 2.1(a) shall be amended to describe the terms and scope of the Services.

<u>Schedule 2.1(b) – Cortigent Services, Duration and Service Fees</u>

The Parties will negotiate in good faith the terms and scope of the Services to be provided, including with respect to the personnel to provide the Service, the Service to be performed, the duration of the Service and the applicable fee(s). Following negotiation and upon mutual agreement, this Schedule 2.1(b) shall be amended to describe the terms and scope of the Services.

<u>Schedule 6.2 – Parent Indemnifying Matters</u>

Funding payment obligations of Second Sight under a purported contract for support of a researcher at a European university ;

Taxes asserted by Italian tax authority for medical devices sold by Second Sight on or prior to August 30, 2022;

Obligations of Second Sight under the Program Participation Agreement dated in June 2018, as amended, with a university in northern California;

Warranty or product liability claims related to devices provided by Second Sight Medical Products, Inc. implanted prior to August 30, 2022;

Claims by the respective shareholders or other stakeholders arising out of the merger on August 30, 2022 between Second Sight Medical Products, Inc. and Nano Precision Medical, Inc.;

Amounts awarded to Pixium Vision SA in a final judgment not subject to appeal by the Commercial Court of Paris arising out of the dispute between Pixium Vision SA and Second Sight relating to the Memorandum of Understanding dated January 5, 2021;

Compensation for financial advisory services claimed by Oppenheimer & Co. Inc., related to financing agreement dated November 5, 2020, in support of a proposed combination between Pixium Vision SA and Second Sight Medical Products, Inc.;

Fees, costs and expenses related to the winding down and liquidation of Second Sight Medical Products (Switzerland) SARL en liquidation, a wholly owned subsidiary of Cortigent.

## Exhibit 10.3

**Exhibit 10.3**

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL

**STANDARD MULTI-TENANT OFFICE LEASE - GROSS**

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| | |
|:---|:---|
| **1** | **Basic Provisions ("Basic Provisions").** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **Parties.** This Lease ("**Lease**"), dated for reference purposes only <u>January 25, 2023</u>, is made by and between <u>27200 Tourney IKG, LLC., a California limited liability company</u> ("**Lessor**") and <u>Cortigent, Inc., a Delaware corporation</u> ("**Lessee**"), (collectively the "**Parties**", or individually a "**Party**").

1.2(a) **Premises:** That certain Portion of the Project (as defined below), commonly known as (street address, suite, city, state): <u>27200 Tourney Road, Suite 100-A, Valencia, CA 91355</u> ("**Premises**"). The Premises are located in the County of <u>Los Angeles</u> , and consist of approximately <u>4,517</u> rentable square feet. and approximately_______useable square-feet. In addition to Lessee's rights to use and occupy the Premises as hereinafter specified, Lessee shall have non-exclusive rights to the Common Areas (as defined in Paragraph 2.7 below) as hereinafter specified, but shall not have any rights to the roof, the exterior walls, the area above the dropped ceilings, or the utility raceways of the building containing the Premises ("**Building**") or to any other buildings in the Project. The Premises, the Building, the Common Areas, the land upon which they are located, along with all other buildings and Improvements thereon, are herein collectively referred to as the "**Project**." The Project consists of approximately <u>210,042</u> rentable square feet. (See also Paragraph 2)

1.2(b) **Parking**: <u>Zero (0)</u> unreserved and <u>Zero (0)</u> reserved vehicle parking spaces at a monthly cost of <u>N/A</u> per unreserved space and <u>N/A</u> per reserved space. (See Paragraph 2.6)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 **Term:** <u>Two (2)</u> years and <u>One (1)</u> months ("**Original Term**") commencing <u>March 1, 2023</u> ("**Commencement Date**") and ending <u>March 31, 2025</u> ("**Expiration Date**"). (See also Paragraphs 3)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 **Early Possession:** If the Premises are available Lessee may have non-exclusive possession of the Premises commencing <u>upon mutual execution of lease and payment of money due under 1.7(e)</u> ("**Early Possession Date**"). (See also Paragraphs 3.2 and 3.3)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 **Base Rent:** <u>$6,775.50</u> per month ("**Base Rent**"), payable on the <u>First (1st)</u> day of each month commencing <u>March 1, 2023</u>. (See also Paragraph 4)

☑ If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. See Paragraph <u>50</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 **Lessee's Share of Operating Expense Increase.** <u>two point fifteen</u> percent (<u>2.15</u>%) ("**Lessee's Share**"). In the event that the size of the Premises and/or the Project are modified during the term of this Lease, Lessor shall recalculate Lessee's Share to reflect such modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 **Base Rent and Other Monies Paid Upon Execution:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Base Rent:** <u>$6,775.50</u> for the period <u>First months rent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Security Deposit:** <u>$14,376.26</u> ()"**Security Deposit** "). (See also Paragraph
 5)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Parking:** _________ for the period _________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Other:** _________ for _________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Total Due Upon Execution of this Lease:** <u>$21,151.76</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 **Agreed Use:** <u>General office use, storage, and R&D laboratory to be used for assembly of prototype products and verification and validation thereof</u>. (See also Paragraph 6)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 **Base Year; Insuring Party.** The Base Year is <u>2023</u>. Lessor is the "**Insuring Party**". (See also Paragraphs 4.2 and 8)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 **Real Estate Brokers.** (See also Paragraphs 15 and 25)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Representation:** Each Party acknowledges receiving a Disclosure Regarding Real Estate Agency Relationship, confirms and consents to the following agency relationships in this Lease with the following real estate brokers ("**Broker(s)**") and/or their agents ("Agent(s)"):

Lessor's Brokerage Firm <u>Colliers International & Kennedy Wilson Properties, Ltd (Lie 00659610)</u> License No. <u>01908231</u> Is the broker of (check one): ☑ the Lessor; or ☐ both the Lessee and Lessor (dual agent).

Lessor's Agent <u>Kevin Fenenbock & Max Browne (Lie #02135501)</u> License No. <u>01165115</u> is (check one): ☑ the Lessor's Agent (salesperson or broker associate); or ☐ both the Lessee's Agent and the Lessor's Agent (dual agent).

Lessee's Brokerage Firm <u>CBRE</u> License No. <u>00409987</u> Is the broker of (check one): ☑ the Lessee; or ☐ both the Lessee and Lessor (dual agent).

Lessee's Agent <u>Craig Peters</u> License No. <u>00906542</u> is (check one): ☑ the Lessee's Agent (salesperson or broker associate); or ☐ both the Lessee's Agent and the Lessor's Agent (dual agent).

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 **Guarantor.** The obligations of the Lessee under this Lease are to be guaranteed by <u>_Vivani. Medical, Inc., a California corporation</u> ("**Guarantor**"). (See also Paragraph 37)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 **Business Hours for the Building:** <u>8:00</u> a.m. to <u>6:00</u> p.m., Mondays through Fridays (except Building Holidays) and <u>9:00</u> a.m. to <u>1:00</u> p.m. on Saturdays (except Building Holidays). "**Building Holidays**" shall mean the dates of observation of New Year's Day, President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, and <u>recognized national and state holidays</u> .

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| | | |
|:---|:---|:---|
| ![(graphic)](img005_v15.jpg) |  |  |
| INITIALS | INITIALS |  |
|© 2019 AIR CRE. All Rights Reserved. | | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 | | Page 1 of 18 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.13 Lessor Supplied Services.** Notwithstanding the provisions of Paragraph 11.1, Lessor Is NOT obligated to provide the following within the Premises:

☑ Janitorial services

☐ Electricity

☑ other (specify): <u>HVAC services to the Premises</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 **Attachments**. Attached hereto are the following, all of which constitute a part of this Lease:

☑ an Addendum consisting of Paragraphs <u>50</u> through <u>61</u>;

☑ a plot plan depicting the Premises Exhibit "A";

☑ a current set of the Rules and Regulations Exhibit "B";

☐ a Work Letter;

☐ a janitorial schedule;

☑ other (specify): <u>Arbitration Agreement – Exhibit "C", Guaranty of Lease – Exhibit "D", Chemicals List – Exhibit "E".</u>

**2.** **Premises.** 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 **Condition.** Lessor shall deliver the Premises to Lessee in a clean condition on the Commencement Date or the Early Possession Date, whichever first occurs ("**Start Date**"), and warrants that to its knowledge the existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems ("**HVAC**"), and all other items which the Lessor is obligated to construct pursuant to any provision regarding tenant improvements for the benefit of Lessee the Work Letter attached hereto, if any, other than those constructed by Lessee, shall be in good operating condition on said date, that, to Lessor's knowledge, the structural elements of the roof, bearing walls and foundation of the Unit shall be free of material defects, and that the Premises do not contain hazardous levels of any mold or fungi defined as toxic under applicable state or federal law. Lessor also warrants, that unless otherwise specified in writing, Lessor is unaware of (i) any recorded Notices of Default affecting the Premise; (ii) any delinquent amounts due under any loan secured by the Premises; and (iii) any bankruptcy proceeding affecting the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 **Compliance.** Lessor warrants that to the best of its knowledge the improvements on the Premises and the Common Areas comply with the building codes, applicable laws, covenants or restrictions of record, regulations, and ordinances ("**Applicable Requirements**") that were In effect at the time that each improvement, or portion thereof, was constructed. Said warranty does not apply to the use to which Lessee will put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Lessee's use (see Paragraph 49), or to any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. **NOTE: Lessee Is responsible for determining whether or not the zoning and other Applicable Requirements are appropriate for Lessee's Intended use, and acknowledges that past uses of the Premises may no longer be allowed.** If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify the same. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction of an addition to or an alteration of the Premises, the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Premises ("Capital Expenditure"), Lessor and Lessee shall allocate the cost of such work as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants In general, Lessee shall be fully responsible for the cost thereof, provided, however, that if such Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds & 8 months' Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within 10 days after receipt of Lessee's termination notice that Lessor has elected to pay the difference between the actual cost thereof and the amount equal to 6-8 months' Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital Expenditure and deliver to Lessor written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises without commencing such Capital Expenditure.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the above, the provisions concerning Capital Expenditures are intended to apply only to non-voluntary, unexpected, and new Applicable Requirements, shall allocate the cost of such work as follows: Lessor shall pay for Capital Expenses Which shall be deemed an Operating Expense. However, if the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change In intensity of use, or modification to the Premises then, and in that event, Lessee shall either: (i) immediately cease such changed use or Intensity of use and/or take such other steps as may be necessary to eliminate the requirement for such Capital Expenditure, or (ii) complete such Capital Expenditure at Its own expense. Lessee shall not have any right to terminate this Lease.

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

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| | | |
|:---|:---|:---|
| ![(graphic)](img005_v15.jpg) |  |  |
| INITIALS | INITIALS |  |
|© 2019 AIR CRE. All Rights Reserved. | | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 | | Page 2 of 18 |

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 **Vehicle Parking**. So long as Lessee is not in default under this or any other Lease with Lessor, and subject to the Rules and Regulations attached hereto, and as established by Lessor from time to time, Lessee shall be entitled to rent and use the number of parking spaces specified in Paragraph 2.2(b) this Lease at the rental rate applicable from time to time for monthly parking as set by Lessor and/or its licensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Lessee commits, permits or allows any of the prohibited activities described in the Lease or the rules then in effect, then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove or tow away the vehicle involved and Charge the cost to Lessee, which cost shall be immediately payable upon demand by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The monthly rent per parking space specified in Paragraph-1.2(b) this Lease is subject to change upon 30 days prior written notice to Lessee. The rent for the parking is payable one month in advance prior to the first day of each calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 **Common Areas - Definition**. The term "**Common Areas**" is defined as all areas and facilities outside the Premises and within the exterior boundary line of the Project and interior utility raceways and Installations within the Premises that are provided and designated by the Lessor from time to time for the general non-exclusive use of Lessor, Lessee and other tenants of the Project and their respective employees, suppliers, shippers, customers, contractors and invitees, including parking areas, loading and unloading areas, trash areas, roofs, roadways, walkways, driveways and landscaped areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 **Common Areas - Lessee's Rights**. Lessor grants to Lessee, for the benefit of Lessee and its employees, suppliers, shippers, contractors, customers and invitees, during the term of this Lease, the non-exclusive right to use, in common with others entitled to such use, the Common Areas as they exist from time to time, subject to any rights, powers, and Privileges reserved by Lessor under the terms hereof or under the terms of any rules and regulations or restrictions governing the use of the Project. Under no circumstances shall the right herein granted to use the Common Areas be deemed to include the right to store any property, temporarily or permanently, in the Common Areas. Any such storage shall be permitted only by the prior written consent of Lessor or Lessor's designated agent, which consent may be revoked at any time. in the event that any unauthorized storage shall occur, then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove the property and Charge the cost to Lessee, which cost shall be immediately payable upon demand by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 **Common Areas - Rules and Regulations**. Lessor or such other person(s) as Lessor may appoint shall have the exclusive control and management of the Common Areas and shall have the right, from time to time, to adopt, modify, amend and enforce reasonable rules and regulations ("**Rules and Regulations**") for the management, safety, care, and cleanliness of the grounds, the parking and unloading of vehicles and the preservation of good order, as well as for the convenience of other occupants or tenants of the Building and the Project and their invitees. The Lessee agrees to abide by and conform to all such Rules and Regulations, and shall use its best efforts to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessor shall not be responsible to Lessee for the noncompliance with said Rules and Regulations by other tenants of the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 **Common Areas - Changes**. Lessor shall have the right, in Lessor's sole discretion, from time to time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To make changes to the Common Areas, including, without limitation, changes in the location, size, shape and number of the lobbies, Windows, stairways, air shafts, elevators, escalators, restrooms, driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways and utility raceways;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To dose temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To designate other land outside the boundaries of the Project to be a part of the Common Areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To add additional buildings and improvements to the Common Areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To use the Common Areas while engaged in making additional improvements, repairs or alterations to the Project, or any portion there of; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To do and perform such other acts and make such other changes in, to or with respect to the Common Areas and Project as Lessor may, in the exercise of sound business judgment, deem to be appropriate.

**3.** **Term.** 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 **Early Possession**. Any Provision herein granting Lessee Early Possession of the Premises is subject to and conditioned upon the Premises being available for such possession prior to the Commencement Date. Any grant of Early Possession only conveys a non-exclusive right to occupy the Premises. If Lessee totally or partially occupies the Premises prior to the Commencement Date, the Obligation to pay Base Rent shall be abated for the period of such Early Possession. All other terms of this Lease (including but not limited to the obligations to pay Lessee's Share of the Operating Expense Increase) shall be in effect during such period. Any such Early Possession shall not affect the Expiration Date.

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

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

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|© 2019 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 |  | Page 3 of 18 |

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**4.** **Rent.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 **Rent Defined**. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be rent ("**Rent**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 **Operating Expense increase**. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share of the amount by which all Operating Expenses for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the "**Operating Expense Increase**", in accordance with the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Base Year**" is as specified in Paragraph 1.9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Comparison Year**" is defined as each calendar year during the term of this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first 12 months of the Lease Term (other than such as are mandated by a governmental authority, as to which government mandated expenses Lessee shall pay Lessee's Share, notwithstanding they occur during the first twelve (12) months). Lessee's Share of the Operating Expense Increase for the first and last Comparison Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Lessee is responsible for a share of such increase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The following costs relating to the ownership and operation of the Project, calculated as if the Project was at least 95% occupied, are defined as "**Operating Expenses**":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Costs relating to the operation, repair, and maintenance in neat, clean, safe, good order and condition, but not the replacement (see subparagraph (g)), of the following:

&nbsp;&nbsp;&nbsp;&nbsp;(aa) The Common Areas, including their surfaces, coverings, decorative items, carpets, drapes and window coverings, and including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences and gates;

&nbsp;&nbsp;&nbsp;&nbsp;(bb) All heating, air conditioning, plumbing, electrical Systems, life safety equipment, communication systems and other equipment used in common by, or for the benefit of, tenants or occupants of the Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair.

&nbsp;&nbsp;&nbsp;&nbsp;(cc) All other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other space occupied by a tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The cost of trash disposal, janitorial and security services, pest control services, and the costs of any environmental inspections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The cost of any other Service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The cost of the premiums for the insurance policies maintained by Lessor pursuant to paragraph 8 and any deductible portion of an insured loss concerning the Building or the Common Areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The amount of the Real Property Taxes payable by Lessor pursuant to paragraph 10;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The cost of water, sewer, gas, electricity, and other publicly mandated services not separately metered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Labor, salaries, and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Project and accounting and management fees attributable to the operation of the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such Capital improvement over a 12 year period and Lessee shall not be required to pay more than Lessee's Share of 1/144th of the cost of such Capital Expenditure in any given month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) The cost to replace equipment or improvements that have a useful life for accounting purposes of 5 years or less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Reserves set aside for maintenance, repair and/or replacement of Common Area improvements and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any item of Operating Expense that is specifically attributable to the Premises, the Building or to any other building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such Premises, Building, or other building. However, any such item that is not specifically attributable to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(c) shall not be deemed to impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same, Lessor already provides the Services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Lessee's Share of Operating Expense increase is payable monthly on the same day as the Base Rent is due hereunder. The amount of such payments shall be based on Lessor is estimate of the Operating Expenses. Within 60 days after written request (but not more than once each year) Lessor shall deliver to Lessee a reasonably detailed Statement showing Lessee's Share of the actual Common Area Operating Expenses for the preceding year. If Lessee's payments during such Year exceed Lessee's Share, Lessee shall credit the amount of such over-payment against Lessee's future payments. If Lessee's payments during such Year were less than Lessee's Share, Lessee shall pay to Lessor the amount of the deficiency within 10 days after delivery by Lessor to Lessee of said Statement. Lessor and Lessee shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease term may have terminated before the end of such Comparison Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Operating Expenses shall not include the costs of replacement for equipment or capital components such as the roof, foundations, exterior walls or a Common Area capital improvement, such as the parking lot paving, elevators, fences that have a useful life for accounting purposes of 5 years or more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Operating Expenses shall not include any expenses paid by any tenant directly to third parties, or as to which Lessor is otherwise reimbursed by any third party, other tenant, or by insurance proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 **Payment**. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States on or before the day on which it is due, without offset or deduction (except as specifically permitted in this Lease). All monetary amounts shall be rounded to the nearest whole dollar. in the event that any invoice prepared by Lessor is inaccurate such inaccuracy shall not constitute a waiver and Lessee shall be obligated to pay the amount set forth in this Lease. Rent for any period during the term hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor's rights to the balance of such Rent, regardless of Lessor's endorsement of any check so stating. in the event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future Rent be paid by cashier's check. Payments will be applied first to accrued late charges and attorney's fees, second to accrued interest, then to Base Rent and Common Area Operating Expenses, and any remaining amount to any other outstanding charges or costs.

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|© 2019 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 |  | Page 4 of 18 |

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

**6.** **Use.** 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 **Hazardous Substances**.

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

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

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

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

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

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

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|:---|:---|:---|
| ![(graphic)](img005_v15.jpg)  |  |  |
| INITIALS | INITIALS |  |
|© 2019 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 |  | Page 5 of 18 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Lessor Termination Option**. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessor's rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor's option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor's desire to terminate this Lease as of the date 60 days following the date of such notice. in the event Lessor elects to give a termination notice, Lessee may, within 1 days there after, give written notice to Lessor of Lessee's commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. in such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor's notice of termination.

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

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

**7.** **Maintenance; Repairs; Utility Installation; Trade Fixtures and Alterations.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 **Lessee's Obligations**. Notwithstanding Lessor's obligation to keep the Premises in good condition and repair, Lessee shall be responsible for payment of the cost thereof to Lessor as additional rent for that portion of the cost of any maintenance and repair of the Premises, or any equipment (wherever located) that serves only Lessee or the Premises, to the extent such cost is attributable to abuse or misuse. in addition, Lessee rather than the Lessor shall be responsible for the cost of painting, repairing or replacing wall coverings, and to repair or replace any similar improvements within the Premises. Lessor may, at its option, upon reasonable notice, elect to have Lessee perform any particular such maintenance or repairs the cost of which is otherwise Lessee's responsibility hereunder."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 **Lessor's Obligations**. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 4.2 (Operating Expenses), 6 (Use), 7.1 (Lessee's Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject to reimbursement pursuant to Paragraph 4.2, shall keep in good order, condition and repair the foundations, exterior walls, structural condition of interior bearing walls, exterior roof, fire sprinkler System, fire alarm and/or smoke detection Systems, fire hydrants, and the Common Areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 **Utility Installations; Trade Fixtures; Alterations.** 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Consent**. Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor's prior written consent. Lessee may, however, make non-structural Alterations or Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating or removing the roof, ceilings, floors or any existing walls, will not affect the electrical, plumbing, HVAC, and/or life safety Systems, do not trigger the requirement for additional modifications and/or improvements to the Premises resulting from Applicable Requirements, such as compliance with Title 24, and the cumulative cost thereof during this Lease as extended does not exceed $2000. Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations and/or install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. For work which costs an amount in excess of one month's Base Rent, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation and/or upon Lessee's posting an additional Security Deposit with Lessor.

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

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|© 2019 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 |  | Page 6 of 18 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 **Ownership; Removal; Surrender; and Restoration.**

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Surrender; Restoration**. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, with all of the improvements, parts and surfaces thereof clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. "Ordinary wear and tear" shall not include any damage or deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing and the provisions of Paragraph 7.1(a), if the Lessee occupies the Premises for 12 months or less, then Lessee shall surrender the Premises in the same condition as delivered to Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations and/or Utility installations, furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee. Lessee shall also remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via Underground migration from areas outside of the Premises) to the level specified in Applicable Requirements. Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date or any earlier termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below. Lessor shall have the right to Charge or deduct from Security Deposit the cost of removing any Lessee owned Alterations, Utility Installations, Trade Fixtures and personal property from the Premises.

**8.** **Insurance; Indemnity.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 **Insurance Premiums**. The cost of the premiums for the insurance policies maintained by Lessor pursuant to paragraph 8 are included as Operating Expenses (see paragraph 4.2 (c)(iv)). Said costs shall include increases in the premiums resulting from additional coverage related to requirements of the holder of a mortgage or deed of trust covering the Premises, Building and/or Project, increased valuation of the Premises, Building and/or Project, and/or a general premium rate increase. Said costs shall not, however, include any premium increases resulting from the nature of the occupancy of any other tenant of the Building. If the Project was not insured for the entirety of the Base Year, then the base premium shall be the lowest annual premium reasonably obtainable for the required insurance as of the Start Date, assuming the most nominal use possible of the Building and/or Project. In no event, however, shall Lessee be responsible for any portion of the premium cost attributable to liability insurance coverage in excess of $2,000,000 procured under Paragraph 8.2(b) above and beyond what is maintained by Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 **Liability Insurance**.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 **Property Insurance - Building, Improvements and Rental Value.** 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Rental Value**. Lessor shall also obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an additional 180 days ("Rental Value insurance"). Said insurance shall contain an agreed valuation Provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable by Lessee, for the next 12 month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Adjacent Premises**. Lessee shall pay for any increase in the premiums for the property insurance of the Building and for the Common Areas or other buildings in the Project if said increase is caused by Lessee's acts, omissions, use or occupancy of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Lessee's Improvements**. Since Lessor is the insuring Party, Lessor shall not be required to insure Lessee Owned Alterations and Utility Installations unless the item in question has become the property of Lessor under the terms of this Lease.

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|© 2019 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 |  | Page 7 of 18 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 **Lessee's Property; Business Interruption Insurance; Worker's Compensation Insurance.**

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

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

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

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

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

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

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

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

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

**9.** **Damage or Destruction.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 **Definitions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Premises Partial Damage**" shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 3 months or less from the date of the damage or destruction, and the cost thereof does not exceed a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Premises Total Destruction**" shall mean damage or destruction to the Improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 3 months or less from the date of the damage or destruction and/or the cost thereof exceeds a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Hazardous Substance Condition**" shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance, in, on, or under the Premises which requires restoration.

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| ![(graphic)](img005_v15.jpg)  |  |  |
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|© 2019 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 |  | Page 8 of 18 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 **Partial Damage - Insured Loss.** If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue In full force and effect; provided, however, that Lessee shall, at Lessor's election, make the repair of any damage or destruction the total cost to repair of which is $5,000 or less, and, In such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the Insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique nature of the Improvements, full replacement cost Insurance coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said 10 day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain In full force and effect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 **Partial Damage - Uninsured Loss.** If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may either: (i) repair such damage as soon as reasonably possible at Lessor's expense (subject to reimbursement pursuant to Paragraph 4.2), in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 60 days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written notice to Lessor of Lessee's commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 **Abatement of Rent; Lessee's Remedies.**

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

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

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

**10.** **Real Property Taxes.** 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 **Payment of Taxes.** Except as otherwise provided in Paragraph 10.3, Lessor shall pay the Real Property Taxes applicable to the Project, and said payments shall be included in the calculation of Operating Expenses in accordance with the provisions of Paragraph 4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 **Additional Improvements.** Operating Expenses shall not include Real Property Taxes specified in the tax assessor's records and work sheets as being caused by additional improvements placed upon the Project by other lessees or by Lessor for the exclusive enjoyment of such other lessees. Notwithstanding Paragraph 10.2 hereof, Lessee shall, however, pay to Lessor at the time Operating Expenses are payable under Paragraph 4.2, the entirety of any increase in Real Property Taxes if assessed solely by reason of Alterations, Trade Fixtures or Utility Installations placed upon the Premises by Lessee or at Lessee's request or by reason of any alterations or improvements to the Premises made by Lessor subsequent to the execution of this Lease by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 **Joint Assessment.** If the Building is not separately assessed, Real Property Taxes allocated to the Building shall be an equitable proportion of the Real Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be determined by Lessor from the respective valuations assigned in the assessor's work sheets or such other information as may be reasonably available. Lessor's reasonable determination thereof, in good faith, shall be conclusive.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 **Personal Property Taxes.** Lessee shall pay prior to delinquency all taxes assessed against and levied upon Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee contained in the Premises. When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. If any of Lessee's said property shall be assessed with Lessor's real property, Lessee shall pay Lessor the taxes attributable to Lessee's property within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee's property.

**11.** **Utilities and Services.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 **Services Provided by Lessor.** Lessor shall provide heating, ventilation, air conditioning, reasonable amounts of electricity for normal lighting and office machines, water for reasonable and normal drinking and lavatory use in connection with an office, and replacement light bulbs and/or fluorescent tubes and ballasts for standard overhead fixtures. Lessor shall also provide janitorial services to the Premises and Common Areas 5 times per week, excluding Building Holidays, or pursuant to the attached janitorial schedule, if any. Lessor shall not, however, be required to provide janitorial services to kitchens, Sinks, bathrooms or storage areas included within the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 **Services Exclusive to Lessee.** Notwithstanding the provisions of paragraph 11.1, Lessee shall pay for all water, gas, light, power, telephone and other utilities and services specially or exclusively supplied and/or metered exclusively to the Premises or to Lessee, together with any taxes thereon. Notwithstanding the provisions of Paragraph 4.2 (vi), if a service is deleted by Paragraph 1.13 and such service is not separately metered to the Premises, Lessee shall pay at Lessor's option, either Lessee's Share or a reasonable proportion to be determined by Lessor of all charges for such jointly metered service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 **Hours of Service.** Said services and utilities shall be provided during times set forth in Paragraph 1.12. Utilities and services required at other times shall be subject to advance request and reimbursement by Lessee to Lessor of the cost thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 **Excess Usage by Lessee.** Lessee shall not make connection to the utilities except by or through existing outlets and shall not install or use machinery or equipment in or about the Premises that uses excess water, lighting or power, or suffer or permit any act that causes extra burden upon the utilities or services, including but not limited to security and trash services, over standard office usage for the Project. Lessor shall require Lessee to reimburse Lessor for any excess expenses or costs that may arise out of a breach of this subparagraph by Lessee. Lessor may, in its sole discretion, install at Lessee's expense supplemental equipment and/or separate metering applicable to Lessee's excess usage or loading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 **Interruptions.** There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, Interruption or discontinuance of any utility or service due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor's reasonable control or In cooperation with governmental request or directions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 Within fifteen days of Lessor's written request, Lessee agrees to deliver to Lessor such information, documents and/or authorization as Lessor needs In order for Lessor to comply with new or existing Applicable Requirements relating to commercial building energy usage, ratings, and/or the reporting thereof.

**12.** **Assignment and Subletting.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 **Lessor's Consent Required.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, "**assign or assignment**") or sublet all or any part of Lessee's interest in this Lease or in the Premises without Lessor's prior written consent,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control of Lessee shall constitute an assignment requiring consent. The transfer, on a cumulative basis, of 25% 50% or more of the voting control of Lessee shall constitute a change in control for this purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buyout or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee's assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% 50*%* of such Net Worth as it was represented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease to which Lessor may withhold its consent. "**Net Worth of Lessee**" shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles.

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2 Terms and Conditions Applicable to Assignment and Subletting.**

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lessor's consent to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting.

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

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessor's determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the Premises, if any, together with a fee of $500 $1,000 as consideration for Lessor's considering and processing said request Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested. (See also Paragraph 36)

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

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

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

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

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

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

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

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

**13.** **Default; Breach; Remedies.** 

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The abandonment of the Premises; the vacating of the Premises prior to the expiration or termination of this Lease without providing a commercially reasonable level of security, or where the coverage of the property Insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism; or failure to deliver to Lessor exclusive possession of the entire Premises in accordance herewith prior to the expiration or termination of this Lease.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate or financial statements, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 41, (viii) material safety data sheets (MSDS), or (ix) any other documentation or Information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following written notice to Lessee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 2.9 hereof, other than those described In subparagraphs 13.1(a), (b) or (c), above, where such Default continues for a period of 30 days after written notice; provided, however, that if the nature of Lessee's Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion.

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

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

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

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| OFG-21.30, Revised 10-22-2020 |  | Page 9 of 18 |

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6 **Breach by Lessor**.

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

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

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

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**15.** **Brokerage Fees.** 

Per separate agreement 15.1 **Additional Commission** In addition to the payments owed pursuant to Paragraph 1.10 above, Lessor agrees that: (a) if Lessor exercises any Option, (b) if Lessor or anyone affiliated. with Lessor acquires from Lessor any nights to the Premises or other premises owned by Lessor and located within the Project, (c) if Lesson remains in possession of the Premises, with the consent of Lessor, after the expiration of this lease, or(b) if Base-Rent is increased, whether by agreement or operation of an escalation clause herein, then lesser shall pay Broker a fee in accordance with the fee schedule of the Brokers in effect at the time the lease was executed. The provisions of this paragraph are intended to supersede the provisions of any earlier agreement to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 **Assumption of Obligations** Any buyer or transferee of lessor's interest in this Lessor shall be deemed to have assumed lessor's obligation hereunder Brokers shall be third party beneficiaries of the provisions of Paragraphs 1.10, 15, 23 and 31. Lessor falls to pay to Brokers any amounts due as and for brokerage fees pertaining to this Lease when due, then such amounts shall accrue interest in addition, if lessor fails to pay any amounts to lessee's Broker when due, lessee's Broker may rend written notion to Lessor and Lesson of such failure and if Lessor fails to pay such amounts within 10 days after said notice, Lessor shall pay sad monies to its Broker and offset such amounts against Rent In addition, Lessee's Bruker shall be deemed to be a third party beneficiary of any commission agreement entered into by and/or between lessor and Lessor's Broker for the limited purpose of collecting any brokerage for owed.

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

**16.** **Estoppel Certificates.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Party (as "**Responding Party**") shall within 10 days after written notice from the other Party (the "**Requesting Party**") execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current "**Estoppel Certificate**" form published BY AIR CRE Or Lender or Lessor, plus such additional Information, confirmation and/or statements as may be reasonably requested by the Requesting Party.

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

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

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

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

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

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

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

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

**23.** **Notices.** 

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.3 **Options.** Notwithstanding the foregoing, in order to exercise any Options (see paragraph 39), the Notice must be sent by Certified Mall (return receipt requested), Express Mall (signature required), courier (signature required) or some other methodology that provides a receipt establishing the date the notice was received by the Lessor.

**24.** **Waivers.** 

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *<u>Agent Representing Both Lessor and Lessee</u>*. A real estate agent, either acting directly or through one or more associate licenses, can legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee. In a dual agency situation, the agent has the following affirmative obligations to both the Lessor and the Lessee: (a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Lessor or the Lessee. (b) Other duties to the Lessor and the Lessee as stated above in subparagraphs (i) or (ii). In representing both Lessor and Lessee, the agent may not, without the express permission of the respective Party, disclose to the other Party confidential information, including, but not limited to, facts relating to either Lessee's or Lessor's financial position, motivations, bargaining position, or other personal information that may impact rent, including Lessor's willingness to accept a rent less than the listing rent or Lessee's willingness to pay rent greater than the rent offered. The above duties of the agent in a real estate transaction do not relieve a lessor or Lessee from the responsibility to protect their own interests. Lessor and Lessee should carefully read all agreements to assure that they adequately express their understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. Both Lessor and Lessee should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lessor and lessee agree to identify to Brokers as "Confidential" any communication or information given Brokers that is considered by such Party to be confidential.

**26. No Right To Holdover.** Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. At or prior to the expiration or termination of this Lease Lessee shall deliver exclusive possession of the Premises to Lessor. For purposes of this provision and Paragraph 13.1(a), exclusive possession shall mean that Lessee shall have vacated the Premises, removed all of its personal property therefrom and that the Premises have been returned in the condition specified in this Lease. In the event that Lessee does not deliver exclusive possession to Lessor as specified above, then Lessor's damages during any holdover period shall be computed at the amount of the Rent (as defined in Paragraph 4.1) due during the last full month before the expiration or termination of this Lease (disregarding any temporary abatement of Rent that may have been in effect), but with Base Rent being 150% of the Base Rent payable during such last full month. Nothing contained herein shall be construed as consent by Lessor to any holding over by Lessee.

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

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

**29. Binding Effect; Choice of Law**. This Lease shall be binding upon the Parties, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located without regards to the State's conflict of laws provisions. Any litigation between the Parties hereto concerning this Lease shall be initiated solely in the county in which the Premises are located. Signatures to this Lease accomplished by means of electronic signature or similar technology shall be legal and binding.

**30. Subordination; Attornment; Non-Disturbance.** 

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

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

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

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

**31. Attorneys' Fees.** If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded In the same suit or recovered In a separate suit, whether or not such action or proceeding is pursued to decision or Judgment. The term, "**Prevailing Party**" shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys' fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys' fees reasonably incurred. In addition, Lessor shall be entitled to attorneys' fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 $1,000 is a reasonable minimum per occurrence for such services and consultation).

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

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

**34. Signs**. Lessor may place on the Premises ordinary "For Sale" signs at any time and ordinary "For Lease" signs. during the last 6-months of the term hereof. Lessor may not place any sign on the exterior of the Building that covers any of the windows of the Premises. Except for ordinary ''For Sublease'' signs which may be placed only on the Premises, Lessee shall not place any sign upon the Project without Lessor's prior written consent. All signs must comply with all Applicable Requirements.

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

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

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| ![](img005_v15.jpg) |  |  |
| <br>INITIALS | <br> INITIALS |  |
|© 2019 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 |  | Page 15 of 18 |

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**37. Guarantor.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.1 **Execution**. The Guarantors, if any, shall each execute a guaranty in the form most recently published by AIR CRE.

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.1 **Definition.** "**Option**" shall mean: (a) the right to extend or reduce the term of or renew this Lease or to extend or reduce the term of or renew any lease that lessee has on other property of lessor; (b) the right of first refusal or first offer to lease other the Premises or other property of lessor; (c) the right to purchase, the right of first offer to purchase or the right of first refusal to purchase the Premises or other property of lessor.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39.4 **Effect of Default on Options.** 

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

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

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

**40. Security Measures**. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and Invitees and their property from the acts of third parties. In the event, however, that Lessor should elect to provide security services, then the cost thereof shall be an Operating Expense.

**41. Reservations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Lessor reserves the right: (i) to grant, without the consent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary, (ii) to cause the recordation of parcel maps and restrictions, (iii) to create and/or install new utility raceways, so long as such easements, rights, dedications, maps, restrictions, and utility raceways do not unreasonably interfere with the use of the Premises by Lessee. Lessor may also: change the name, address or title of the Building or Project upon at least 90 days prior written notice; provide and install, at Lessee's expense, Building standard graphics on the door of the Premises and such portions of the Common Areas as Lessor shall reasonably deem appropriate; grant to any lessee the exclusive right to conduct any business as long as such exclusive right does not conflict with any rights expressly given herein; and to place such signs, notices or displays as Lessor reasonably deems necessary or advisable upon the roof, exterior of the Building or the Project or on signs in the Common Areas. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate such rights. The obstruction of Lessee's view, air, or light by any structure erected in the vicinity of the Building, whether by Lessor or third parties, shall in no way affect this Lease or impose any liability upon Lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Lessor also reserves the right to move Lessee to other space of comparable size in the Building or Project. Lessor must provide at least 45 days prior written notice of such move, and the new space must contain improvements of comparable quality to those contained within the Premises. Lessor shall pay the reasonable out of pocket costs that Lessee incurs with regard to such relocation, including the expenses of moving and necessary stationary revision costs. In no event, however, shall Lessor be required to pay an amount in excess of two months Base Rent. Lessee may not be relocated more than once during the term of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Lessee shall not: (i) use a representation (photographic or otherwise) of the Building or Project or their name(s) in connection with Lessee's business; or (ii) suffer or permit anyone, except in emergency, to go upon the roof of the Building.

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

**43. Authority; Multiple Parties; Execution.** 

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

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| ![](img005_v15.jpg)  |  |  |
| INITIALS | INITIALS |  |
|© 2019 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 |  | Page 16 of 18 |

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Lease may be executed by the Parties In counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same Instrument.

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

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

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

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

**48. Arbitration of Disputes.** An Addendum requiring the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease ☑ is ☐ is not attached to this Lease.

**49. Accessibility; Americans with Disabilities Act.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Premises:

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

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

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

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

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

**LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OFT HIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.**

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

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

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

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

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

Executed at:   Executed at:   <br> On:   On:  

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|:---|:---|
| **By LESSOR:** | **By LESSEE:** |
| &nbsp;&nbsp;&nbsp;27200 Tourney IKG, LLC., a California | &nbsp;&nbsp;&nbsp;Cortigent, Inc., a Delaware Corporation |

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|:---|:---|:---|
|  | ![](img005a_v15.jpg)<br>|  |
| INITIALS | INITIALS |  |
|© 2019 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 |  | Page 17 of 18 |

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<u>limited liability Company</u>

---

| | | | |
|:---|:---|:---|:---|
| By: |  | By: | ![(GRAPHIC)](img007_v15.jpg) |
| Name Printed: | Brian Ghassemieh | Name Printed: | Adam Mendelsohn |
| Title: | Senior Vice President | Title: | CEO |
| Phone: |  | Phone: | 310-488-8158 |
| Fax: |  | Fax: |  |
| Email: |  | Email: | adam.mendelsohn@vivani.com |
| By: |  | By: |  |
| Name Printed: | Behrouz Tahbaz | Name Printed: |  |
| Title: | Vice President | Title: |  |
| Phone: |  | Phone: |  |
| Fax: |  | Fax: |  |
| Email: |  | Email: |  |
| Address: |  | Address: |  |
| Federal ID No.: |  | Federal ID No.: |  |
| **BROKER** |  | **BROKER** |  |
| Colliers International & Kennedy Wilson Properties, Ltd (Lic 00659610) | Colliers International & Kennedy Wilson Properties, Ltd (Lic 00659610) | CBRE | CBRE |
| Attn: | Kevin Fenenbock & Max Browne (Lic # 02135501) | Attn: | Craig Peters |
| Title: |  | Title: |  |
| Address: |  | Address: |  |
| Phone: |  | Phone: |  |
| Fax: |  | Fax: |  |
| Email: |  | Email: |  |
| Federal ID No.: |  | Federal ID No.: |  |
| Broker DRE License#: | 01908231 | Broker DRE License #: | 00409987 |
| Agent DRE License#: |  | Agent DRE License #: | 00906542 |

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**AIR CRE • https://www.alrcre.com \* 213-687-8777 • contracts@aircre.com**

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

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|:---|:---|:---|
|  | ![](img005a_v15.jpg) <br>|  |
| <br> INITIALS | INITIALS |  |
|© 2019 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFG-21.30, Revised 10-22-2020 |  | Page 18 of 18 |

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Plan Depicting the Premises <br>

Exhibit "A"

![(graphic)](img006_v15.jpg)

Not to Scale

![(graphic)](img004_v15.jpg)

**RULES AND REGULATIONS FOR**

**STANDARD OFFICE LEASE**

Exhibit "B"

**Date:** _____________

**By and Between**

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| | |
|:---|:---|
| **Lessor:** | <u>27200 Tourney IKG. LLC., a California limited liability Company</u> |

---

---

| | |
|:---|:---|
| **Lessee:** | <u>Cortigent, Inc., a Delaware Corporation</u> |

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| | |
|:---|:---|
| **Property Address:** | <u>27200 Tourney Road, Suite 100-A, Valencia, CA 91355</u> |
|  | (street address, city, state, zip) |

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**GENERAL RULES**

1. Lessee shall not suffer or permit the obstruction of any Common Areas, including driveways, walkways and stairways.

2. Lessor reserves the right to refuse access to any persons Lessor in good faith Judges to be a threat to the safety and reputation of the Project and its occupants.

3. Lessee shall not make or permit any noise or odors that annoy or interfere with other lessees or persons having business within the Project.

4. Lessee shall not keep animals or birds within the Project, and shall not bring bicycles, motorcycles or other vehicles into areas not designated as authorized for same.

5. Lessee shall not make, suffer or permit litter except in appropriate receptacles for that purpose.

6. Lessee shall not alter any lock or install new or additional locks or bolts.

7. Lessee shall be responsible for the inappropriate use of any toilet rooms, plumbing or other Utilities. No foreign substances of any kind are to be inserted therein.

8. Lessee shall not deface the walls, partitions or other surfaces of the Premises or Project.

9. Lessee shall not suffer or permit anything in or around the Premises or Building that causes excessive Vibration or floor loading in any part of the Project.

10. Furniture, significant freight and equipment shall be moved into or out of the building only with the Lessor's knowledge and consent, and subject to such reasonable limitations, techniques and timing, as may be designated by Lessor. Lessee shall be responsible for any damage to the Office Building Project arising from any such activity.

11. Lessee shall not employ any Service or contractor for services or work to be performed in the Building, except as approved by Lessor.

12. Lessor reserves the right to close and lock the Building on Saturdays, Sundays and Building Holidays, and on other days between the hours of <u>6:00</u> P.M. and <u>8:00</u> A.M. of the following day. If Lessee uses the Premises during such periods, Lessee shall be responsible for securely locking any doors it may have opened for entry.

13. Lessee shall return all keys at the termination of its tenancy and shall be responsible for the cost of replacing any keys that are lost.

14. No window coverings, shades or awnings shall be installed or used by Lessee.

15. No Lessee, employee or invitee shall go upon the roof of the Building.

16. Lessee shall not suffer or permit smoking or carrying of lighted cigars or cigarettes in areas reasonably designated by Lessor or by applicable governmental agencies as non-smoking areas.

17. Lessee shall not use any method of heating or air conditioning other than as provided by Lessor.

18. Lessee shall not install, maintain or operate any vending machines upon the Premises without Lessor's written consent.

19. The Premises shall not be used for lodging or manufacturing, cooking or food preparation.

20. Lessee shall comply with all safety, fire protection and evacuation regulations established by Lessor or any applicable governmental agency.

21. Lessor reserves the right to waive anyone of these rules or regulations, and/or as to any particular Lessee, and any such waiver shall not constitute a waiver of any other rule or regulation or any subsequent application thereof to such Lessee.

22. Lessee assumes all risks from theft or vandalism and agrees to keep its Premises locked as may be required.

23. Lessor reserves the right to make such other reasonable rules and regulations as it may from time to time deem necessary for the appropriate operation and safety of the Project and its occupants. Lessee agrees to abide by these and such rules and regulations.

**PARKING RULES**

1. Parking areas shall be used only for parking by vehicles no longer than full size, passenger automobiles herein called "Permitted Size Vehicles." Vehicles other than Permitted Size Vehicles are herein referred to as "Oversized Vehicles."

2. Lessee shall not permit or allow any vehicles that belong to or are controlled by Lessee or Lessee's employees, suppliers, shippers, customers, or invitees to be loaded, unloaded, or parked in areas other than those designated by Lessor for such activities.

3. Parking stickers or identification devices shall be the property of Lessor and be returned to Lessor by the holder thereof upon termination of the holder's parking Privileges. Lessee will pay such replacement Charge as is reasonably established by Lessor for the loss of such devices.

4. Lessor reserves the right to refuse the sale of monthly Identification devices to any person or entity that willfully refuses to comply with the applicable rules, regulations, laws and/or agreements.

5. Lessor reserves the right to relocate all or a part of parking spaces from floor to floor, within one floor, and/or to reasonably adjacent offsite location(s), and to reasonably allocate them between compact and Standard size spaces, as long as the same complies with applicable laws, ordinances and regulations.

6. Users of the parking area will obey all posted signs and park only in the areas designated for vehicle parking.

7. Unless otherwise instructed, every person using the parking area is required to park and lock his own vehicle. Lessor will not be responsible for any damage to vehicles, Injury to persons or loss of property, all of which risks are assumed by the party using the parking area.

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|:---|:---|:---|
|  | ![](img005a_v15.jpg) <br>|  |
| INITIALS | INITIALS |  |
|© 2017 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFGRR-2.02, Revised 10-22-2020 |  | Page 1 of 2 |

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8. Validation, if established, will be permissible only by such method or methods as Lessor and/or its licensee may establish at rates generally applicable to visitor parking.

9. The maintenance, washing, waxing or cleaning of vehicles in the parking structure or Common Areas is prohibited.

10. Lessee shall be responsible for seeing that all of its employees, agents and invitees comply with the applicable parking rules, regulations, laws and agreements.

11. Lessor reserves the right to modify these rules and/or adopt such other reasonable and non-discriminatory rules and regulations as it may deem necessary for the proper operation of the parking area.

12. Such parking use as is herein provided is intended merely as a license only and no bailment is intended or shall be created hereby.

**AIR CRE • https://www.aircre.com • 213-687-8777 • contracts@aircre.com**

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

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| INITIALS | INITIALS |  |
|© 2017 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| OFGRR-2.02, Revised 10-22-2020 |  | Page 1 of 2 |

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![](img004_v15.jpg)

**ARBITRATION AGREEMENT**

**STANDARD LEASE ADDENDUM** 

Exhibit "C"

**Dated:** <u>January 25, 2023</u>

**By and Between** 

**Lessor:** <u>27200 Tourney IKG, LLC., a California limited liability company</u>

**Lessee:** <u>Cortigent, Inc.. a Delaware corporation</u>

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| | |
|:---|:---|
| **Property Address:** | <u>27200 Tourney Road, Suite 100-A, Valencia, CA 91355</u> |
|  | (street address, city, state, zip) |

---

Paragraph:__________

**A. ARBITRATION OF DISPUTES:**

Except as provided in Paragraph B below, the Parties agree to resolve any and all claims, disputes or disagreements arising under this Lease, including, but not limited to any matter relating to Lessor's failure to approve an assignment, sublease or other transfer of Lessee's interest In the Lease under Paragraph 12 of this Lease, any other defaults by Lessor, or any defaults by Lessee by and through arbitration as provided below and irrevocably waive any and all rights to the contrary. The Parties agree to at all times conduct themselves in strict, full, complete and timely accordance with the terms hereof and that any attempt to circumvent the terms of this Arbitration Agreement shall be absolutely null and void and of no force or effect whatsoever.

**B. DISPUTES EXCLUDED FROM ARBITRATION:**

The following claims, disputes or disagreements under this Lease are expressly excluded from the arbitration procedures set forth herein: 1. Disputes for which a different resolution determination is specifically set forth in this Lease, 2. All claims by either party which (a) seek anything other than enforcement or determination of rights under this Lease, or (b) are primarily founded upon matters of fraud, willful misconduct, bad faith or any other allegations of tortious action, and seek the award of punitive or exemplary damages, 3. Claims relating to (a) Lessor's exercise of any unlawful detainer rights pursuant to applicable law or (b) rights or remedies used by Lessor to gain possession of the Premises or terminate Lessee's right of possession to the Premises, all of which disputes shall be resolved by suit filed In the applicable court of jurisdiction, the decision of which court shall be subject to appeal pursuant to applicable law 4. Any claim or dispute that is within the jurisdiction of the Small Claims Court and 5. All claims arising under Paragraph 39 of this Lease.

**C. APPOINTMENT OF AN ARBITRATOR:**

All disputes subject to this Arbitration Agreement, shall be determined by binding arbitration before: ☐ a retired judge of the applicable court of jurisdiction (e.g., the Superior Court of the State of California) affiliated with Judicial Arbitration & Mediation Services, Inc. ("**JAMS**"), ☑ the American Arbitration Association ("**AAA**") under its commercial arbitration rules, ☐ _________, or as may be otherwise mutually agreed by Lessor and Lessee (the "**Arbitrator**"). In the event that the parties elect to use an arbitrator other than one affiliated with JAMS or AAA then such arbitrator shall be obligated to comply with the Code of Ethics for Arbitrators in Commercial Disputes (see: http://www.adr.org/aaa/ShowProperty?nodeld=/UCM/ADRSTG_003867). Such arbitration shall be initiated by the Parties, or either of them, within ten (10) days after either party sends written notice (the "**Arbitration Notice**") of a demand to arbitrate by registered or certified mail to the other party and to the Arbitrator. The Arbitration Notice shall contain a description of the subject matter of the arbitration, the dispute with respect thereto, the amount involved, if any, and the remedy or determination sought. If the Parties have agreed to use JAMS they may agree on a retired judge from the JAMS panel. If they are unable to agree within ten days, JAMS will provide a list of three available judges and each party may strike one. The remaining judge (or if there are two, the one selected by JAMS) will serve as the Arbitrator. If the Parties have elected to utilize AAA or some other organization, the Arbitrator shall be selected in accordance with said organization's rules. In the event the Arbitrator is not selected as provided for above for any reason, the party initiating arbitration shall apply to the appropriate Court for the appointment of a qualified retired judge to act as the Arbitrator.

**D. ARBITRATION PROCEDURE:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. PRE-HEARING ACTIONS.** The Arbitrator shall schedule a pre-hearing conference to resolve procedural matters, arrange for the exchange of information, obtain stipulations, and narrow the issues. The Parties will submit proposed discovery schedules to the Arbitrator at the pre-hearing conference. The scope and duration of discovery will be within the sole discretion of the Arbitrator. The Arbitrator shall have the discretion to order a pre-hearing exchange of information by the Parties, including, without limitation, production of requested documents, exchange of summaries of testimony of proposed witnesses, and examination by deposition of parties and third-party witnesses. This discretion shall be exercised in favor of discovery reasonable under the circumstances. The Arbitrator shall issue subpoenas and subpoenas duces tecum as provided for in the applicable statutory or case law (e.g., in California Code of Civil Procedure Section 1282.6).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. THE DECISION.** The arbitration shall be conducted in the city or county within which the Premises are located at a reasonably convenient site. Any Party maybe represented by counsel or other authorized representative. In rendering a decision(s), the Arbitrator shall determine the rights and obligations of the Parties according to the substantive laws and the terms and provisions of this Lease. The Arbitrator's decision shall be based on the evidence Introduced at the hearing, including all logical and reasonable inferences therefrom. The Arbitrator may make any determination and/or grant any remedy or relief that is just and equitable. The decision must be based on, and accompanied by, a written statement of decision explaining the factual and legal basis for the decision as to each of the principal controverted issues. The decision shall be conclusive and binding, and it may thereafter be confirmed as a judgment by the court of applicable jurisdiction, subject only to challenge on the grounds set forth in the applicable statutory or case law (e.g., in California Code of Civil Procedure Section 1286.2). The validity and enforceability of the Arbitrator's decision is to be determined exclusively by the court of appropriate Jurisdiction pursuant to the provisions of this Lease. The Arbitrator may award costs, including without limitation, Arbitrator's fees and costs, attorneys' fees, and expert and witness costs, to the prevailing party, if any, as determined by the Arbitrator in his discretion.

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|  | ![](img005a_v15.jpg)  |  |
| INITIALS | INITIALS |  |
|© 2017 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| ARB-3.03, Revised 10-22-2020 |  | Page 1 of 2 |

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Whenever a matter which has been submitted to arbitration Involves a dispute as to whether or not a particular act or omission (other than a failure to pay money) constitutes a Default, the time to commence or cease such action shall be tolled from the date that the Notice of Arbitration is served through and until the date the Arbitrator renders his or her decision. Provided, however, that this provision shall NOT apply in the event that the Arbitrator determines that the Arbitration Notice was prepared in bad faith.

Whenever a dispute arises between the Parties concerning whether or not the failure to make a payment of money constitutes a default, the service of an Arbitration Notice shall NOT toll the time period in which to pay the money. The Party allegedly obligated to pay the money may, however, elect to pay the money "under protest" by accompanying said payment with a written statement setting forth the reasons for such protest. If thereafter, the Arbitrator determines that the Party who received said money was not entitled to such payment, said money shall be promptly returned to the Party who paid such money under protest together with Interest thereon as defined in Paragraph 13.5. If a Party makes a payment "under protest" but no Notice of Arbitration Is filed within thirty days, then such protest shall be deemed waived. (See also Paragraph 42 or 43)

**AIR CRE • https://www.alrcre.com • 213-687-8777 • contracts@alrcre.com**

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

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|  | ![](img005a_v15.jpg)  |  |
| INITIALS | INITIALS |  |
|© 2017 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| ARB-3.03, Revised 10-22-2020 |  | Page 2 of 2 |

---

![](img004_v15.jpg)

**GUARANTY OF LEASE**

Exhibit "D"

WHEREAS, <u>27200 Tourney IKG, LLC., a California limited liability company</u>, hereinafter "Lessor", and <u>Contingent, Inc., a Delaware corporation</u>, hereinafter "Lessee", are about to execute a document entitled "Lease" dated <u>January 25, 2023</u> concerning the premises commonly known as (street address, city, state, zip) <u>27200 Tourney Road, Suite 100-A, Valencia, CA 91355</u> wherein Lessor will lease the premises to Lessee, and

WHEREAS, <u>Vivani Medical**,** Inc., a California corporation</u> hereinafter "Guarantors**"** have a financial interest in Lessee, and

WHEREAS, Lessor would not execute the Lease if Guarantors did not execute and deliver to Lessor this Guaranty of Lease.

NOW THEREFORE, in consideration of the execution of said Lease by Lessor and as a material inducement to Lessor to execute said Lease, Guarantors hereby jointly, severally, unconditionally and irrevocably guarantee the prompt payment by Lessee of all rents and all other sums payable by Lessee under said Lease and the faithful and prompt performance by Lessee of each and every one of the terms, conditions and covenants of said Lease to be kept and performed by Lessee.

It is specifically agreed by Lessor and Guarantors that: (i) the terms of the foregoing Lease may be modified by agreement between Lessor and Lessee, or by a course of conduct, and (ii) said Lease may be assigned by Lessor or any assignee of Lessor without the consent of or notice to Guarantors and that this Guaranty shall guarantee the performance of said Lease as so modified.

This Guaranty shall not be released, modified or affected by the failure or delay on the part of Lessor to enforce any of the rights or remedies of the Lessor under said Lease.

No notice of default by Lessee under the Lease need be given by Lessor to Guarantors, it being specifically agreed that the guarantee of the undersigned is a continuing guarantee under which Lessor may proceed immediately against Lessee and/or against Guarantors following any breach or default by Lessee or for the enforcement of any rights which Lessor may have as against Lessee under the terms of the Lease or at law or in equity.

Lessor shall have the right to proceed against Guarantors following any breach or default by Lessee under the Lease without first proceeding against Lessee and without previous notice to or demand upon either Lessee or Guarantors.

Guarantors hereby waive (a) notice of acceptance of this Guaranty. (b) demand of payment, presentation and protest, (c) all right to assert or plead any statute of limitations relating to this Guaranty or the Lease, (d) any right to require the Lessor to proceed against the Lessee or any other Guarantor or any other person or entity liable to Lessor, (e) any right to require Lessor to apply to any default any security deposit or other security it may hold under the Lease, (f) any right to require Lessor to proceed under any other remedy Lessor may have before proceeding against Guarantors**,** (g) any right of subrogation that Guarantors may have against Lessee.

Guarantors do hereby subordinate all existing or future indebtedness of Lessee to Guarantors to the obligations owed to Lessor under the Lease and this Guaranty.

If a Guarantor is married, such Guarantor expressly agrees that recourse may be had against his or her separate property for all of the obligations hereunder.

The obligations of Lessee under the Lease to execute and deliver estoppel statements and financial statements, as therein provided, shall be deemed to also require the Guarantors to provide estoppel statements and financial statements to Lessor. The failure of the Guarantors to provide the same to Lessor shall constitute a default under the Lease.

The term "Lessor" refers to and means the Lessor named in the Lease and also Lessor's successors and assigns. So long as Lessor's interest in the Lease, the leased premises or the rents, issues and profits therefrom, are subject to any mortgage or deed of trust or assignment for security, no acquisition by Guarantors of the Lessor's interest shall affect the continuing obligation of Guarantors under this Guaranty which shall nevertheless continue in full force and effect for the benefit of the mortgagee, beneficiary, trustee or assignee under such mortgage, deed of trust or assignment and their successors and assigns.

The term "Lessee" refers to and means the Lessee named in the Lease and also Lessee's successors and assigns.

Any recovery by Lessor from any other guarantor or insurer shall first be credited to the portion of Lessee's indebtedness to Lessor which exceeds the maximum liability of Guarantors under this Guaranty.

No provision of this Guaranty or right of the Lessor can be waived, nor can the Guarantors be released from their obligations except in writing signed by the Lessor

Any litigation concerning this Guaranty shall be initiated in a state court of competent jurisdiction in the county in which the leased premises are located and the Guarantors consent to the jurisdiction of such court. This Guaranty shall be governed by the laws of the State in which the leased premises are located and for the purposes of any rules regarding conflicts of law the parties shall be treated as if they were all residents or domiciles of such State.

In the event any action be brought by said Lessor against Guarantors hereunder to enforce the obligation of Guarantors hereunder, the unsuccessful party in such action shall pay to the prevailing party therein a reasonable attorney's fee. The attorney's fee award shall not be computed in accordance with any court fee schedule, but shall be such as to full reimburse all attorneys' fees reasonably incurred.

If any Guarantor is a corporation, partnership, or limited liability company, each individual executing this Guaranty on said entity's behalf represents and warrants that he or she is duly authorized to execute this Guaranty on behalf of such entity. Signatures to this Guaranty accomplished by means of electronic signature or similar technology shall be legal and binding.

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|  | ![](img005a_v15.jpg)  |  |
| INITIALS | INITIALS |  |
|© 2017 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| GR-3.22, Revised 10-22-2020 |  | Page 1 of 2 |

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**If this Form has been filled in, it has been prepared for submission to your attorney for his approval. No representation or recommendation is made by AIR CRE, the real estate broker or its agents or employees as to the legal sufficiency, legal effect, or tax consequences of this Form or the transaction relating thereto.**

GUARANTORS Executed At: __________ <br> <u>Vivani Medical, Inc., a California corporation</u> on:__________

By:

Name Printed: <u>Adam Mendelsohn </u> Name Printed: _____________

Title: <u>CEO</u> Title: __________

Address: <u>5858 Horton Street Suite 280 Emeryville, CA 94608</u> Address: ________

**AIR CRE • https://www.aircre.com • 213-687-8777 • contracts@aircre.com**

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

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|:---|:---|:---|
| ![](img005a_v15.jpg)<br>|  |  |
| INITIALS | INITIALS |  |
|© 2017 AIR CRE. All Rights Reserved. |  | Last Edited: 2/1/2023 11:26 AM |
| GR-3.22, Revised 10-22-2020 |  | Page 2 of 2 |

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&nbsp;&nbsp;A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

**ACKNOWLEDGMENT**

STATE OF___________________ } ss:

COUNTY OF_________________

On_____________________before me,_____________________________________, a Notary Public,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Insert name and title of the officer)

personally appeared_______________________________________________________________________________________________________

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of________________________that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature____________________________ **(Seal)**

**[ILLEGIBLE]**

**Exhibit "E"**

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| &nbsp;&nbsp;**Hazardous Material and Waste Assessment** | &nbsp;&nbsp;**Vivani** |

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**Table 1. Hazardous Material Inventory List**

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|:---|:---|:---|:---|:---|
| **SSMP Part No** | **Chemical** | **Manufacture** | **Maximum Qty** | **Storage** |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **[\*\*\*]** | | | | |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | | | |
| [\*\*\*] | [\*\*\*] | | | |
| [\*\*\*] | [\*\*\*] | | | |
| [\*\*\*] | [\*\*\*] | | | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | | | |
| [\*\*\*] | [\*\*\*] | | | [\*\*\*] |
| **[\*\*\*]** | | | | |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*]  |
| | [\*\*\*] | | [\*\*\*] | [\*\*\*] |
| | [\*\*\*] | [\*\*\*] | [\*\*\*] | <br> [\*\*\*]<br>|
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

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**ADDENDUM TO AIR STANDARD MULTI-TENANT OFFICE LEASE - GROSS**

**ADDENDUM TO AIR STANDARD MULTI-TENANT OFFICE LEASE - GROSS DATED JANUARY 25, 2023 ("PRIMARY LEASE"), BY AND BETWEEN 27200 TOURNEY IKG, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY ("LESSOR"), AND CORTIGENT, INC., A DELAWARE CORPORATION ("LESSEE"), FOR THE CERTAIN PREMISES LOCATED AT 27200 TOURNEY ROAD, SUITE 100-A, APPROXIMATELY 4,517 RENTABLE SQUARE FEET, VALENCIA, CALIFORNIA 91355.**

The Primary Lease, as modified, supplemented, and superseded by this Addendum is hereinafter referred to as the "**Lease**".

If the terms of this Addendum conflict with the terms of the Primary Lease, the terms of this Addendum shall control. Unless otherwise defined in this Addendum, capitalized terms shall have the meaning assigned to them in the Primary Lease.

**50. Rent:**

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|:---|:---|:---|
| &nbsp;&nbsp;Months | &nbsp;&nbsp;Dates | &nbsp;&nbsp;Base Rent |
| &nbsp;&nbsp;1-12 | &nbsp;&nbsp;3/01/2023-2/29/2024 | &nbsp;&nbsp;$6,775.50 per month |
| &nbsp;&nbsp;13-24 | &nbsp;&nbsp;3/01/2024-2/28/2025 | &nbsp;&nbsp;$6,978.77 per month |
| &nbsp;&nbsp;25 | &nbsp;&nbsp;3/01/2025-3/31/2025 | &nbsp;&nbsp;$7,188.13 per month |

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|:---|:---|
| **51. Prepaid Money:** | Lessee shall have five (5) business days from the mutual execution of this Lease to pay the amount stated in 1.7 (e) of this Lease. |
| **52. Tenant Improvements:**<br>| The Premises shall be delivered to Lessee in its existing "as-is" condition. Lessee, at its sole cost and expense, may install a demising wall in Premises, may repaint the interior walls of the Premises, and shall have the right to perform other alterations to the Premises subject to Lessor's prior written approval. All work in the Premises shall be performed by a licensed and bonded general contractor reasonably approved by Lessor, shall be performed pursuant to local building codes and city permitting obligations, shall be performed after normal business hours as to not disturb other occupants of the Building, and at all times in compliance with the terms of Section 7.3 of the Lease and subject to Section 7.4 of the Lease. |
| **53. Sublease/Assignment:** | Notwithstanding anything to the contrary contained in Section 12.1 (a) of the Lease, Lessor shall not unreasonably withhold its consent to an assignment, transfer, or sublease of the Lease or the Premises by Lessee. Lessee shall split equally with Lessor any Profits derived from a sublease. "Profits" shall be defined as any additional rent on a per rentable square foot basis paid by any third party under an assignment or sublease in excess of what Lessee is paying to Lessor after first deducting the reasonable and standard commissions, free rent, tenant improvements, and legal fees, if any. |
| **54. Signage:** | Using Lessor's standard suite entry signage and font, Lessor shall install, at Lessor's sole cost and expense, suite entry signage adjacent to the entry door of the Premises. Future modifications to the name displayed on the suite entry signage shall be at Lessee's sole cost and expense. Lessor shall have consent right over the name Lessee displays on the suit entry signage, which shall not be unreasonable withheld or delayed. |

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ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND<br> BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC.

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|:---|:---|:---|:---|
| ![](img005a_v15.jpg) |  |  | |
| |  | 4886-8652 | |
| **INITIALS** | Page 1 of 7 |  | **INITIALS** |

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|:---|:---|
|  | Lessor shall provide Lessee with one (1) line on the general lobby multi-tenant directory at no charge. Installation of the general lobby multi-tenant directory sign shall be at the Lessor's sole cost and expense and using Lessor's standard general lobby directory signage and font. Future modifications to the name displayed on the suite entry signage shall be at Lessee's sole cost and expense. Lessor shall have consent rights over the name Lessee displays on the general lobby multi-tenant directory, which shall not be unreasonably withheld or delayed. |
| **55. ACH Payment:** | Lessee agrees to pay all amounts payable under the terms and conditions of the Lease via ACH (Automated Clearing House). Lessee agrees to send Lessor an e-mail notification once an ACH transaction has been initiated by the Lessee. ACH Transactions must be received by Lessor prior to any due dates set forth in the Lease. Lessor may notify Lessee if any ACH transaction is not received. Lessor reserves the right to charge Lessee a $25 physical check processing fee for payments not made via ACH transaction. Lessor shall provide Lessee with Lessor's bank account information. Lessee acknowledges that the origination of any ACH transaction must comply with the Provisions of U.S. Law. |
| **56. Coronavirus Situation:** | The Lessee and Lessor hereby acknowledge that, as of the date of this Lease, the coronavirus outbreak, including, without limitation Covid-19 and any mutations thereof (the **"Coronavirus Situation"**) has resulted in various governmental entities at various levels (federal, state, county, city and local) to issue various laws, ordinances, regulations, orders and controls directly in response to the Coronavirus Situation (collectively and as hereinafter promulgated, the **"Coronavirus Governmental Actions"**), which have included, without limitation, orders that allow tenants to withhold or defer rent payments without late fees or interest (**"Coronavirus Rent Deferrals"**). |
|  | Lessor and Lessee acknowledge that this Lease is being entered into while both parties have knowledge and awareness of the Coronavirus Situation and the ongoing Coronavirus Governmental Actions, and Lessee acknowledges and agrees that Lessor would not lease the Premises to Lessee without Lessee expressly waiving any current or future rights to Coronavirus Rent Deferrals and all other rights now or in the future to withhold any payments to Lessor arising in any way from the Coronavirus Governmental Actions. Lessee acknowledges and agrees that Lessor is under no obligation to provide notice of any incidents of coronavirus infections within the Building containing the Premises, and the presence of coronavirus infected individuals within the Project is not an excuse or basis for not making payments to Lessor otherwise due under this Lease, including, without limitation, Rent. |
| **57. Supplemental HVAC:** | Notwithstanding Paragraph 52, if Lessee desires to install an HVAC system, which is connected to the Building-standard HVAC system, in the Premises, Lessor shall use reasonable efforts to review and approve such installation. Lessor may impose commercially reasonable requirements on any such installation. Any such installation shall be at Lessee's sole cost and expense, and any HVAC system installed in the Premises by Lessee shall remain on the Premises following the termination or expiration of this Lease and shall become the property of Lessor.<br>HVAC Hours for the Building are 8:00 a.m. to 6:00 p.m., Mondays through Fridays (except Building Holidays) and 9:00 a.m. to 1:00 p.m. on Saturdays (except Building Holidays).  |

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| ![](img005a_v15.jpg) | ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND<br> BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC. |  | |
| |  | 4886-8652 | |
| **INITIALS** | **Page 2 of 7** |  | **INITIALS** |

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|:---|:---|
|  | Provided after hours HVAC service are available within the Premises, Lessee shall have the right, but not the obligation, to purchase after hours HVAC service at the prevailing rates in the Project, which may be increased by Lessor from time to time. The current Project rate for after-hours HVAC service is $85 per hour used. Lessee must provide Lessor with 72 hour written notice, which notice may be increased by Lessor from time to time. Lessee acknowledges and agrees that any requested for after hours HVAC service must be for a minimum of 4 hours per day. |
| **58. Hazardous Substances:** | Notwithstanding anything to the contrary contained in the Lease, within the Premises only, Lessee may possess, store, and use the substances identified on <u>Exhibit E</u> attached hereto (the **"Chemicals"),** in the quantities set forth on <u>Exhibit E</u>. The Chemicals and the contents thereof shall be: (i) maintained only in quantities not to exceed the lesser of (a) the amount set forth in Annex A or (b) the amount reasonably necessary for Lessee's operations at the Premises, (ii) used, stored, monitored, and removed strictly in accordance with all Applicable Requirements and in a manner to minimize risk and annoyance to the Building or any occupants thereof, and (iii) removed from the Premises by Lessee prior to the expiration or earlier termination of this Lease. With Lessor's prior written approval, which shall not be unreasonably conditioned or withheld, Lessee may change the list and/or quantities of the Chemicals, and upon doing so, the parties shall update <u>Exhibit E</u> reflecting such revised Chemicals and/or quantities pursuant to a written agreement; provided that it shall not be considered unreasonable for Lessor to withhold or condition its approval if the proposed modification to <u>Exhibit E</u> would result in (1) Lessor, Lessee, or the Project incurring additional reporting, monitoring, or remediation obligations under any Applicable Law; (2) the requirement, under any Applicable Law or pursuant to industry standard best practice, to modify the Premises, the Building, or the Project to accommodate the additional or different chemicals (i.e. the addition of new or different ventilation or drainage systems); (3) an increase to, or cancellation of, any insurance premiums for insurance policies carried by Lessor with respect to the Building or the Project; or (4) a default under any applicable mortgage loan documents affecting the Project or the Lessor, or a violation of any Applicable Law. Notwithstanding section 8.2 of the Lease, Lessee's insurance policies shall at all times contain coverage for damage to property and persons resulting from the Chemicals, including without limitation by way of separate pollution insurance policy or pollution endorsement to any existing insurance policy. |
| **59. Option to Renew:** |  |
|  | (a) Subject to the earlier termination of this Lease in accordance with the provisions of the Lease and Section 39 of the Lease, Lessee shall have 1 option to extend **("Extension Option")** the term of this Lease commencing upon the Expiration Date of the Lease as to not less than the entire Premises for a period of 3 years (the **"Option Period")** upon the same terms and conditions as set forth in the Lease and this Addendum, except that the Base Rent shall be increased as set forth below. Subject to Section 39 of the Lease, Lessee shall give Lessor written notice of its intent to exercise its Extension Option (the "Exercise Notice") not earlier than 1 year and not later than 9 months prior to the Expiration Date. In the event Lessee fails to exercise its Extension Option in strict accordance with the provisions of this Section 59 and Section 39 of the Lease, the Extension Option shall terminate immediately, unconditionally, automatically, and without notice, and be of no further force or effect. |

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| ![](img005a_v15.jpg) | ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND<br> BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC. |  | |
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(b) The Base Rent amount for the first year of the Option Period shall be the fair market rental value of the Premises (the **"FMRV");** provided, however, in no event shall the FMRV be less than 103% of the Base Rent rate in effect immediately preceding the commencement of the Option Period. Within 60 days after receipt of the Exercise Notice, Lessor shall determine its opinion of the FMRV and shall inform Lessee in writing of such opinion (the **"FMRV Notice").** Lessee shall have 30 days from receipt of the FMRV Notice (the **"Determination Period")** to inform Lessor in writing of its election to (i) accept Lessor's opinion of the FMRV and agree to continue to lease the Premises pursuant to the terms and conditions of the Lease for the Option Period, or (ii) dispute Lessor's opinion of the FMRV, or (iii) rescind its Exercise Notice. If Lessee disputes Lessor's opinion of the FMRV, the parties shall work in good faith to agree upon the FMRV which shall apply during the Option Period. If the parties are unable to reach such an agreement within ten (10) business days, then the FMRV shall be determined as follows:

i. Lessor
 and Lessee shall each select a real estate broker licensed in California with at least
 ten (10) years of professional experience handling leasing of properties similar to the
 Premises, and each broker shall independently, and without consultation, prepare a written
 opinion of the FMRV within seven (7) days. Each broker shall seal its respective appraisal
 after completion. After both opinions are completed, the resulting estimates of the FMRV
 shall be opened by the Lessee and Lessor simultaneously and compared. If the values of
 the appraisals differ by no more than ten percent (10%) of the value of the higher appraisal,
 then the fair market value shall be the average (mean) of the two (2) opinions.

ii. If
 the values of the opinions differ by more than ten percent (10%) of the value of the
 higher appraisal, the two (2) brokers shall designate in writing a third broker meeting
 the qualifications set out in above. The third broker shall be a person who has not previously
 acted in any capacity for either party. The third broker shall make an estimate of the
 FMRV within seven (7) days after selection and without consultation with the first two
 (2) brokers. The FMRV shall be the value selected by the one of the first two (2) brokers
 that is closest, on a dollar basis, to the estimate selected by the third appraiser.
 This determination of FMRV shall be binding and conclusive.

iii. Each
 party shall pay the fees and expenses of its own broker, and fifty percent (50%) of the
 fees and expenses of the third broker (if applicable).

(c) If, prior to the expiration of the Determination Period, Lessee delivers written notice to Lessor of its election to rescind its Exercise Notice, the Lease shall expire on the Expiration Date or terminate earlier pursuant to the terms of the Lease, and the Extension Option shall terminate immediately, unconditionally, automatically, and without notice, and be of no further force or effect. If, prior to the expiration of the Determination Period, Lessee provides written notice to Lessor of its election to accept the FMRV as determined by Lessor, or to proceed with arbitration as described above, then the Lease shall continue in full force and effect during the Option Period and the Base Rent shall be payable in the amounts set forth in paragraph 60(b)(i) or (b)(ii) above (as applicable).

(d) The monthly Base Rent during the Option Period shall be the FMRV for the first year of the Option Period. Thereafter, commencing on April 1, 2025, the Base Rent shall increase annually at a rate of 3% per annum.

(e) In the event the term of this Lease is extended pursuant to the provisions of this Section 59, references in this Lease to the "term" of this Lease shall be deemed to include the Option Period, except as otherwise expressly provided.

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| ![](img005a_v15.jpg) | ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND<br> BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC. |  | |
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| **60. Simultaneous Sublease** | Simultaneously with the entering of this Lease, Lessee is entering into a Sublease (the "**Sublease**") with respect to the space identified as Suite 315 in the Building (the "**Sublease Space**"). Lessor acknowledges that both the Premises and the Sublease Space are important to Lessee's operations, and that Lessee would not enter into this Lease without also entering into the Sublease. Lessor agrees that, in the event the lease for Suite 315 ("Prime Lease") is terminated for any reason not attributable to Lessee, provided Lessee is not otherwise in default under the terms of the Sublease or the Lease, Lessor grants to the Lessee originally named in this Lease, an option to lease the Sublease Space ("Option to Lease"), in accordance with the terms of this Section 60.<br>Lessor shall notify Lessee if Lessor exercises Lessor's remedy to terminate the Prime Lease ("Early Termination"). In the event of an Early Termination, Lessee may deliver written notice of its exercise of the Option to Lease as to the Sublease Space no later than ten (10) days prior to the date which the Early Termination occurs.<br>In the event the tenant under the Prime Lease does not exercise its right to extend the Prime Lease, or is prohibited from doing so for any reason other than through the fault of Lessee, then Lessee may deliver written notice of its exercise of the Option to Lease as to the Sublease Space no later than sixty (60) days prior to the date which the Prime Lease expires.<br>Within ten (10) days after Landlord's receipt of Tenant's written notice of its exercise of the Option to Lease as to the Sublease Space, Landlord shall deliver to Lessee a direct lease for the Sublease Space on the form of the Primary Lease, provided, however, Base Rent amount for the first year of the Sublease Space shall be: (i) in the event of an expiration of the Prime Lease without the exercise of the option to extend the Prime Lease, the **"FMRV"** as calculated in accordance with Section 59 above; provided, however, in no event shall the FMRV be less than 103% of the Prime Lease base rent rate in effect immediately preceding the commencement of the new lease for the Sublease Space, or (ii) in the event of an Early Termination, the base rent then payable by the tenant under the terms of the Prime Lease.<br>If exercised, the term of the lease for the Sublease Space shall commence on the day after of the expiration or Early Termination of the Prime Lease, and shall expire on the earlier of: (i) March 31, 2025, or if exercised, the expiration of the Option Period, or (ii) the earlier termination of this Lease.<br>The rights contained in this <u>Section 60</u> shall be personal to the original Lessee and only for so long as Lessee occupies all of the then-existing Premises and Sublease Space. The right provided in this <u>Section 60</u> may not be exercised if, as of the date of the attempted exercise of the expansion option by Lessee, or as of the scheduled date of commencement of the replacement lease for the Sublease Space, (i) Lessee is in default under this Lease (beyond any applicable notice and cure periods), (ii) Lessee has been in default under this Lease (beyond any applicable notice and cure periods) more than once during the prior twelve (12) month period, or (iii) Lessee's financial condition has suffered a material, adverse change during the immediately preceding twenty-four (24) month period.  |
| **61. Lessor Access** | Notwithstanding anything to the contrary contained herein, Lessor and Lessor's employees, contractors, and agents shall have the right, upon reasonable prior notice (which may be given by email or telephone), to enter the Premises for the sole purpose of accessing a utility room serving the Building, which is adjacent |

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&nbsp;&nbsp;&nbsp;&nbsp;<br>

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| ![](img005a_v15.jpg) | ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND<br> BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC. |  | |
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to the Premises. Lessor will cooperate with Lessee's reasonable requirements regarding the control of access to the Premises in the event Lessee's use of the Premises involves sensitive activities or confidential information.

*[Signature Page(s) follow]*

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| ![](img005a_v15.jpg) | ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND<br> BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC. |  | |
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IN WITNESS WHEREOF, Lessor and Lessee execute this Lease, as modified by this Addendum, as of the date first set forth on this Addendum.

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| | | | |
|:---|:---|:---|:---|
| **LESSOR:** | **LESSOR:** | **LESSEE:** | **LESSEE:** |
| **27200 TOURNEY IKG, LLC,** | **27200 TOURNEY IKG, LLC,** | **CORTIGENT, INC.,** | **CORTIGENT, INC.,** |
| **a California limited liability company** | **a California limited liability company** | **a Delaware corporation** | **a Delaware corporation** |
| By: |  | By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;![](img007_v15.jpg) |
|  | Brian Ghassemieh, Senior Vice President |  | Adam Mendelsohn, CEO |
| By: |  |  |  |
|  | Behrouz Tahbaz, Vice President |  |  |
| Date: February _, 2023 | Date: February _, 2023 | Date: February 8, 2023 | Date: February 8, 2023 |

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| ![](img005a_v15.jpg) | ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND<br> BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC. |  | |
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| **INITIALS** | **Page 7 of 7** |  | **INITIALS** |

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**ADDENDUM TO AIR STANDARD MULTI-TENANT OFFICE LEASE - GROSS**

**ADDENDUM TO AIR STANDARD MULTI-TENANT OFFICE LEASE - GROSS DATED JANUARY 25, 2023 ("PRIMARY LEASE"), BY AND BETWEEN 27200 TOURNEY IKG, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY ("LESSOR"), AND CORTIGENT, INC., A DELAWARE CORPORATION ("LESSEE"), FOR THE CERTAIN PREMISES LOCATED AT 27200 TOURNEY ROAD, SUITE 100-A, APPROXIMATELY 4,517 RENTABLE SQUARE FEET, VALENCIA, CALIFORNIA 91355.**

The Primary Lease, as modified, supplemented, and superseded by this Addendum is hereinafter referred to as the "**Lease**".

If the terms of this Addendum conflict with the terms of the Primary Lease, the terms of this Addendum shall control. Unless otherwise defined in this Addendum, capitalized terms shall have the meaning assigned to them in the Primary Lease.

**50.** **Rent:** 

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| | | |
|:---|:---|:---|
| Months | Dates | Base Rent |
| 1-12 | 3/01/2023 - 2/29/2024 | $6,775.50 per month |
| 13-24 | 3/01/2024 - 2/28/2025 | $6,978.77 per month |
| 25 | 3/01/2025 - 3/31/2025 | $7,188.13 per month |

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|:---|:---|:---|
| **51.** | **Prepaid Money:** | Lessee shall have five (5) business days from the mutual execution of this Lease to pay the amount stated in 1.7 (e) of this Lease. |
| **52.** | **Tenant** |  |
|  | <br> **Improvements:** | <br> The Premises shall be delivered to Lessee in its existing "as-is" condition. Lessee, at its sole cost and expense, may install a demising wall in Premises, may repaint the interior walls of the Premises, and shall have the right to perform other alterations to the Premises subject to Lessor's prior written approval. All work in the Premises shall be performed by a licensed and bonded general contractor reasonably approved by Lessor, shall be performed pursuant to local building codes and city permitting obligations, shall be performed after normal business hours as to not disturb other occupants of the Building, and at all times in compliance with the terms of Section 7.3 of the Lease and subject to Section 7.4 of the Lease. |
| **53.** | **Sublease/** |  |
|  | <br> **Assignment:** | Notwithstanding anything to the contrary contained in Section 12.1(a) of the Lease, Lessor shall not unreasonably withhold its consent to an assignment, transfer, or sublease of the Lease or the Premises by Lessee. Lessee shall split equally with Lessor any Profits derived from a sublease. "Profits" shall be defined as any additional rent on a per rentable square foot basis paid by any third party under an assignment or sublease in excess of what Lessee is paying to Lessor after first deducting the reasonable and standard commissions, free rent, tenant improvements, and legal fees, if any. |
| **54.** | **Signage:** | Using Lessor's standard suite entry signage and font, Lessor shall install, at Lessor's sole cost and expense, suite entry signage adjacent to the entry door of the Premises. Future modifications to the name displayed on the suite entry signage shall be at Lessee's sole cost and expense. Lessor shall have consent rights over the name Lessee displays on the suite entry signage, which shall not be unreasonably withheld or delayed. |

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ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND<br> BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC.

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|  |  | Lessor shall provide Lessee with one (1) line on the general lobby multi-tenant directory at no charge. Installation of the general lobby multi-tenant directory sign shall be at the Lessor's sole cost and expense and using Lessor's standard general lobby directory signage and font. Future modifications to the name displayed on the suite entry signage shall be at Lessee's sole cost and expense. Lessor shall have consent rights over the name Lessee displays on the general lobby multi-tenant directory, which shall not be unreasonably withheld or delayed. |
| **55.** | **ACH Payment:** | Lessee agrees to pay all amounts payable under the terms and conditions of the Lease via ACH (Automated Clearing House). Lessee agrees to send Lessor an email notification once an ACH transaction has been initiated by the Lessee. ACH Transactions must be received by Lessor prior to any due dates set forth in the Lease. Lessor may notify Lessee if any ACH transaction is not received. Lessor reserves the right to charge Lessee a $25 physical check processing fee for payments not made via ACH transaction. Lessor shall provide Lessee with Lessor's bank account information. Lessee acknowledges that the origination of any ACH transaction must comply with the Provisions of U.S. Law. |

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| **56.** | **Coronavirus** |  |
|  | **Situation:** | The Lessee and Lessor hereby acknowledge that, as of the date of this Lease, the coronavirus outbreak, including, without limitation Covid-19 and any mutations thereof (the "**Coronavirus Situation**") has resulted in various governmental entities at various levels (federal, state, county, city and local) to issue various laws, ordinances, regulations, orders and controls directly in response to the Coronavirus Situation (collectively and as hereinafter promulgated, the "**Coronavirus Governmental Actions**"), which have included, without limitation, orders that allow tenants to withhold or defer rent payments without late fees or interest ("**Coronavirus Rent Deferrals**").<br>Lessor and Lessee acknowledge that this Lease is being entered into while both parties have knowledge and awareness of the Coronavirus Situation and the ongoing Coronavirus Governmental Actions, and Lessee acknowledges and agrees that Lessor would not lease the Premises to Lessee without Lessee expressly waiving any current or future rights to Coronavirus Rent Deferrals and all other rights now or in the future to withhold any payments to Lessor arising in any way from the Coronavirus Governmental Actions. Lessee acknowledges and agrees that Lessor is under no obligation to provide notice of any incidents of coronavirus infections within the Building containing the Premises, and the presence of coronavirus infected individuals within the Project is not an excuse or basis for not making payments to Lessor otherwise due under this Lease, including, without limitation, Rent. |
| **57.** | **Supplemental HVAC:** | Notwithstanding Paragraph 52, if Lessee desires to install an HVAC system, which is connected to the Building-standard HVAC system, in the Premises, Lessor shall use reasonable efforts to review and approve such installation. Lessor may impose commercially reasonable requirements on any such installation. Any such installation shall be at Lessee's sole cost and expense, and any HVAC system installed in the Premises by Lessee shall remain on the Premises following the termination or expiration of this Lease and shall become the property of Lessor.<br>HVAC Hours for the Building are 8:00 a.m. to 6:00 p.m., Mondays through Fridays (except Building Holidays) and 9:00 a.m. to 1:00 p.m. on Saturdays (except Building Holidays). |

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ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND

BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC.

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|  |  | Provided after hours HVAC service are available within the Premises, Lessee shall have the right, but not the obligation, to purchase after hours HVAC service at the prevailing rates in the Project, which may be increased by Lessor from time to time. The current Project rate for after-hours HVAC service is $85 per hour used. Lessee must provide Lessor with 72 hour written notice, which notice may be increased by Lessor from time to time. Lessee acknowledges and agrees that any requested for after hours HVAC service must be for a minimum of 4 hours per day. |
| **58.** | **Hazardous Substances:** | Notwithstanding anything to the contrary contained in the Lease, within the Premises only, Lessee may possess, store, and use the substances identified on <u>Exhibit E</u> attached hereto (the "**Chemicals**"), in the quantities set forth on <u>Exhibit</u> E. The Chemicals and the contents thereof shall be: (i) maintained only in quantities not to exceed the lesser of (a) the amount set forth in Annex A or (b) the amount reasonably necessary for Lessee's operations at the Premises, (ii) used, stored, monitored, and removed strictly in accordance with all Applicable Requirements and in a manner to minimize risk and annoyance to the Building or any occupants thereof, and (iii) removed from the Premises by Lessee prior to the expiration or earlier termination of this Lease. With Lessor's prior written approval, which shall not be unreasonably conditioned or withheld, Lessee may change the list and/or quantities of the Chemicals, and upon doing so, the parties shall update <u>Exhibit E</u> reflecting such revised Chemicals and/or quantities pursuant to a written agreement; provided that it shall not be considered unreasonable for Lessor to withhold or condition its approval if the proposed modification to <u>Exhibit E</u> would result in (1) Lessor, Lessee, or the Project incurring additional reporting, monitoring, or remediation obligations under any Applicable Law; (2) the requirement, under any Applicable Law or pursuant to industry standard best practice, to modify the Premises, the Building, or the Project to accommodate the additional or different chemicals (i.e. the addition of new or different ventilation or drainage systems); (3) an increase to, or cancellation of, any insurance premiums for insurance policies carried by Lessor with respect to the Building or the Project; or (4) a default under any applicable mortgage loan documents affecting the Project or the Lessor, or a violation of any Applicable Law. Notwithstanding section 8.2 of the Lease, Lessee's insurance policies shall at all times contain coverage for damage to property and persons resulting from the Chemicals, including without limitation by way of separate pollution insurance policy or pollution endorsement to any existing insurance policy. |
| **59.** | **Option to Renew:** |  |
|  |  | (a) Subject to the earlier termination of this Lease in accordance with the provisions of the Lease and Section 39 of the Lease, Lessee shall have 1 option to extend ("**Extension Option**") the term of this Lease commencing upon the Expiration Date of the Lease as to not less than the entire Premises for a period of 3 years (the "**Option Period**") upon the same terms and conditions as set forth in the Lease and this Addendum, except that the Base Rent shall be increased as set forth below. Subject to Section 39 of the Lease, Lessee shall give Lessor written notice of its intent to exercise its Extension Option (the "**Exercise Notice**") not earlier than 1 year and not later than 9 months prior to the Expiration Date. In the event Lessee fails to exercise its Extension Option in strict accordance with the provisions of this Section 59 and Section 39 of the Lease, the Extension Option shall terminate immediately, unconditionally, automatically, and without notice, and be of no further force or effect. |

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ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND

BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC.

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(b) The Base Rent amount for the first year of the Option Period shall be the fair market rental value of the Premises (the "**FMRV**"); provided, however, in no event shall the FMRV be less than 103% of the Base Rent rate in effect immediately preceding the commencement of the Option Period. Within 60 days after receipt of the Exercise Notice, Lessor shall determine its opinion of the FMRV and shall inform Lessee in writing of such opinion (the "**FMRV Notice**"). Lessee shall have 30 days from receipt of the FMRV Notice (the "**Determination Period**") to inform Lessor in writing of its election to (i) accept Lessor's opinion of the FMRV and agree to continue to lease the Premises pursuant to the terms and conditions of the Lease for the Option Period, or (ii) dispute Lessor's opinion of the FMRV, or (iii) rescind its Exercise Notice. If Lessee disputes Lessor's opinion of the FMRV, the parties shall work in good faith to agree upon the FMRV which shall apply during the Option Period. If the parties are unable to reach such an agreement within ten (10) business days, then the FMRV shall be determined as follows:<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Lessor
 and Lessee shall each select a real estate broker licensed in California with at least
 ten (10) years of professional experience handling leasing of properties similar to the
 Premises, and each broker shall independently, and without consultation, prepare a written
 opinion of the FMRV within seven (7) days. Each broker shall seal its respective appraisal
 after completion. After both opinions are completed, the resulting estimates of the FMRV
 shall be opened by the Lessee and Lessor simultaneously and compared. If the values of
 the appraisals differ by no more than ten percent (10%) of the value of the higher appraisal,
 then the fair market value shall be the average (mean) of the two (2) opinions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. If
 the values of the opinions differ by more than ten percent (10%) of the value of the
 higher appraisal, the two (2) brokers shall designate in writing a third broker meeting
 the qualifications set out in above. The third broker shall be a person who has not previously
 acted in any capacity for either party. The third broker shall make an estimate of the
 FMRV within seven (7) days after selection and without consultation with the first two
 (2) brokers. The FMRV shall be the value selected by the one of the first two (2) brokers
 that is closest, on a dollar basis, to the estimate selected by the third appraiser.
 This determination of FMRV shall be binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Each
 party shall pay the fees and expenses of its own broker, and fifty percent (50%) of the
 fees and expenses of the third broker (if applicable).

(c) If, prior to the expiration of the Determination Period, Lessee delivers written notice to Lessor of its election to rescind its Exercise Notice, the Lease shall expire on the Expiration Date or terminate earlier pursuant to the terms of the Lease, and the Extension Option shall terminate immediately, unconditionally, automatically, and without notice, and be of no further force or effect. If, prior to the expiration of the Determination Period, Lessee provides written notice to Lessor of its election to accept the FMRV as determined by Lessor, or to proceed with arbitration as described above, then the Lease shall continue in full force and effect during the Option Period and the Base Rent shall be payable in the amounts set forth in paragraph 60(b)(i) or (b)(ii) above (as applicable).<br>(d) The monthly Base Rent during the Option Period shall be the FMRV for the first year of the Option Period. Thereafter, commencing on April 1, 2025, the Base Rent shall increase annually at a rate of 3% per annum.<br>(e) In the event the term of this Lease is extended pursuant to the provisions of this Section 59, references in this Lease to the "term" of this Lease shall be deemed to include the Option Period, except as otherwise expressly provided.<br>

ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND

BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC.

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|:---|:---|:---|
| **60.** | **Simultaneous** |  |
|  | **Sublease**<br>| Simultaneously with the entering of this Lease, Lessee is entering into a Sublease (the "**Sublease**") with respect to the space identified as Suite 315 in the Building (the "**Sublease Space**"). Lessor acknowledges that both the Premises and the Sublease Space are important to Lessee's operations, and that Lessee would not enter into this Lease without also entering into the Sublease. Lessor agrees that, in the event the lease for Suite 315 ("Prime Lease") is terminated for any reason not attributable to Lessee, provided Lessee is not otherwise in default under the terms of the Sublease or the Lease, Lessor grants to the Lessee originally named in this Lease, an option to lease the Sublease Space ("Option to Lease"), in accordance with the terms of this Section 60.<br>Lessor shall notify Lessee if Lessor exercises Lessor's remedy to terminate the Prime Lease ("Early Termination"). In the event of an Early Termination, Lessee may deliver written notice of its exercise of the Option to Lease as to the Sublease Space no later than ten (10) days prior to the date which the Early Termination occurs.<br>In the event the tenant under the Prime Lease does not exercise its right to extend the Prime Lease, or is prohibited from doing so for any reason other than through the fault of Lessee, then Lessee may deliver written notice of its exercise of the Option to Lease as to the Sublease Space no later than sixty (60) days prior to the date which the Prime Lease expires.<br>Within ten (10) days after Landlord's receipt of Tenant's written notice of its exercise of the Option to Lease as to the Sublease Space, Landlord shall deliver to Lessee a direct lease for the Sublease Space on the form of the Primary Lease, provided, however, Base Rent amount for the first year of the Sublease Space shall be: (i) in the event of an expiration of the Prime Lease without the exercise of the option to extend the Prime Lease, the "**FMRV**" as calculated in accordance with Section 59 above; provided, however, in no event shall the FMRV be less than 103% of the Prime Lease base rent rate in effect immediately preceding the commencement of the new lease for the Sublease Space, or (ii) in the event of an Early Termination, the base rent then payable by the tenant under the terms of the Prime Lease.<br>If exercised, the term of the lease for the Sublease Space shall commence on the day after of the expiration or Early Termination of the Prime Lease, and shall expire on the earlier of: (i) March 31, 2025, or if exercised, the expiration of the Option Period, or (ii) the earlier termination of this Lease.<br>The rights contained in this <u>Section 60</u> shall be personal to the original Lessee and only for so long as Lessee occupies all of the then-existing Premises and Sublease Space. The right provided in this <u>Section 60</u> may not be exercised if, as of the date of the attempted exercise of the expansion option by Lessee, or as of the scheduled date of commencement of the replacement lease for the Sublease Space, (i) Lessee is in default under this Lease (beyond any applicable notice and cure periods), (ii) Lessee has been in default under this Lease (beyond any applicable notice and cure periods) more than once during the prior twelve (12) month period, or (iii) Lessee's financial condition has suffered a material, adverse change during the immediately preceding twenty-four (24) month period. |

---

ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND

BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC.

---

| | | | |
|:---|:---|:---|:---|
| |  | 4886-8652 | |
| **INITIALS** | Page 5 of 7 |  | **INITIALS** |

---

**61.** **Lessor Access** Notwithstanding
 anything to the contrary contained herein, Lessor and Lessor's employees, contractors, and agents shall have the right,
 upon reasonable prior notice (which may be given by email or telephone), to enter the Premises for the sole purpose of accessing
 a utility room serving the Building, which is adjacent to
the Premises. Lessor will cooperate with Lessee's reasonable requirements regarding the control of access to the Premises
in the event Lessee's use of the Premises involves sensitive activities or confidential information.

*[Signature Page(s) follow]*

ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND<br> BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC.

---

| | | | |
|:---|:---|:---|:---|
| |  | 4886-8652 | |
| **INITIALS** | Page 6 of 7 |  | **INITIALS** |

---

IN WITNESS WHEREOF, Lessor and Lessee execute this Lease, as modified by this Addendum, as of the date first set forth on this Addendum.

---

| | | | |
|:---|:---|:---|:---|
| **LESSOR:** | **LESSOR:** | **LESSEE:** | **LESSEE:** |
| **27200 TOURNEY IKG, LLC, <br> a California limited liability company** | **27200 TOURNEY IKG, LLC, <br> a California limited liability company** | **CORTIGENT, INC.,<br> a Delaware corporation** | **CORTIGENT, INC.,<br> a Delaware corporation** |
| By: |  | By: |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brian Ghassemieh, Senior Vice President |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adam Mendelsohn, CEO |
| By: |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Behrouz Tahbaz, Vice President |  |  |
| Date: February __, 2023 | Date: February __, 2023 | Date: February __, 2023 | Date: February __, 2023 |

---

ADDENDUM TO AIR STANDARD OFFICE LEASE-GROSS BY AND<br> BETWEEN 27200 TOURNEY IKG, LLC, AND CORTIGENT, INC.

---

| | | | |
|:---|:---|:---|:---|
| |  | 4886-8652 | |
| **INITIALS** | Page 7 of 7 |  | **INITIALS** |

---

## Exhibit 10.4

**Exhibit 10.4**

![](img006.jpg)

March 11, 2023

Jonathan Adams

[address]

**Re: Employment Terms—Chief Executive Officer**

Dear Jonathan Adams:

Cortigent, Inc. (the "Company") is pleased to offer you full-time employment for the position of President and Chief Executive Officer effective as of March 1, 2023, or any other start date that may be mutually agreeable. In this position you will have leading executive and operating responsibility/accountability for all elements of the business. You will report directly to the entire Board of Directors of the Company ("Board") in its sole discretion, and you will have a seat on the Board once the Company completes its IPO (note: As an employee, there is no compensation for being a board member). In the course of your employment with the Company, you will be subject to and required to comply with all company policies, and applicable laws and regulations.

You will be paid a base salary at the rate of $350,000 per year (subject to required tax withholding and other authorized deductions). Your base salary will be payable in accordance with the Company's standard payroll policies and subject to adjustment pursuant to the Company's policies as in effect from time to time.

Subject to approval of the Board in its sole discretion you will be eligible to receive a one-time signing bonus of up to $50,000 within 45 days after the Company completes its IPO.

In connection with entering into this offer letter, following the commencement of your employment with the Company, and upon Board approval in its sole discretion, you will also be issued an option following completion of the IPO to purchase 400,000 shares of Cortigent common stock (the "CEO Options") according to Cortigent's 2023 Omnibus Incentive Plan when adopted. The strike price per share will be the price at which shares are sold to the public in the IPO. Vesting of the CEO Options will be as follows: (i) 100,000 shall vest on November 10, 2023; and (ii) the balance shall vest in approximately equal monthly installments over the ensuing 36 months.

You will be eligible to participate in all employee benefits and benefit plans that the Company generally makes available to other similarly situated employees of the Company. The Company reserves the right to terminate, modify or add to its benefits and benefit plans at any time. As a condition of employment, you will be required to (1) sign and comply with an Employee Invention, Trade Secret and Confidentiality Agreement, a copy of which is attached hereto as Exhibit A which, among other things, prohibits unauthorized use or disclosure of Company proprietary information, (2) sign and return a satisfactory I-9 Immigration form attached hereto as Exhibit B and provide sufficient documentation establishing your employment eligibility in the United States of America (enclosed is a list of acceptable INS Form I-9 documentation), (3) provide satisfactory proof of your identity as required by United States law, (4) sign the Travel Reimbursement Agreement attached hereto as Exhibit C, and (5) sign the Arbitration Agreement attached hereto as Exhibit D. By signing below, you represent that your performance of services to the Company will not violate any duty which you may have to any other person or entity (such as a present or former employer), including obligations concerning providing services (whether or not competitive) to others, confidentiality of proprietary information and assignment of inventions, ideas, patents or copyrights, and you agree that you will not do anything in the performance of services hereunder that would violate any such duty.

**Cortigent, Inc.**

27200 Tourney Road, Suite 315

Valencia, CA 91342 USA

www.cortigent.com

Jonathan Adams Offer Letter

March 11, 2023

Notwithstanding any of the above, no assurance of any minimum term of employment is granted hereby. Your employment with the Company is entirely "at will". This means that it is not for any specified period of time and can be terminated by you or by the Company at any time, with or without advance notice, and for any or no particular reason or cause. It also means that your job duties, title and responsibility and reporting level, work schedule, compensation and benefits, as well as the Company's personnel policies and procedures, may be changed with prospective effect, with or without notice, at any time in the sole discretion of the Company.

You have been working as a consultant to the Company since November 12, 2022. The Consulting Agreement, dated November 14, 2022, will be terminated upon your acceptance of this agreement.

If you accept this offer, this letter, the Employee Invention, Trade Secret, and Confidentiality Agreement, the Travel Reimbursement Agreement and the Arbitration Agreement, the "(Employment Agreements") the Proprietary Information and Inventions Assignment Agreement shall constitute the complete agreement between you and Company with respect to the terms and conditions of your employment. Any prior or contemporaneous representations (whether oral or written) not contained in the Employment Agreements or contrary to those contained in the Employment Agreements that may have been made to you are expressly cancelled and superseded by this offer. While other terms and conditions of your employment may change in the future, the at-will nature of your employment may not be changed, except in a subsequent letter or written agreement, signed by you and by a duly authorized member of the Board of Directors.

Please sign and date the Employment Agreements and return them to me at [email address]. Should you have any questions regarding the details of this offer, please contact Adam Mendelsohn at [phone].

Please be advised that this offer is contingent upon satisfactory reference and background checks.

Sincerely,

/Adam Mendelsohn/

Adam Mendelsohn

Cortigent, Inc.

Sole Director

Jonathan Adams Offer Letter

March 11, 2023

Accepted by:

/Jonathan Adams/

Jonathan Adams

March 13, 2023

Date

Jonathan Adams Offer Letter

March 11, 2023

**<u>Exhibit A</u>**

● **CORTIGENT, INC.**

● **EMPLOYEE INVENTION, TRADE SECRET**

● ***AND CONFIDENTIAL INFORMATION ("AGREEMENT")***

This Agreement is entered into between Cortigent, Inc. (hereinafter "Company") and the Undersigned Employee (hereinafter "Employee").

In exchange for the salary or wages paid to Employee by Company, Company and Employee agree that during the course of Employee's employment, Company expects Employee to develop, and/or receive inventions, trade secrets, and confidential information relating to Company's business and to its actual and anticipated research or development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Employee will, during the term of their employment and thereafter, keep confidential and refrain from using or disclosing to others all confidential information<sup>1</sup> and trade secrets of Company, which Employee develops or learns about during the course of their employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) As to all inventions made by Employee during the term of their employment, solely or jointly with others, which are made with Company's equipment, supplies, facilities, trade secrets or time, or which relate to the business of Company or the Company's actual or demonstrably anticipated research or development, or which result from any work performed by Employee for Company, Employee agrees that such inventions shall belong to Company and they promise to assign such inventions to Company and to cooperate with Company to obtain patents on the inventions for Company in the United States and all foreign countries. Employee also agrees that Company shall have the right, at its sole discretion, to keep such inventions as trade secrets. Employee agrees to assign to Company their rights, in any other inventions where Company is required to grant those rights to the U.S. Government or any agency thereof. Employee agrees to sign all documents required to obtain patent protection or to assign their rights to the Company. The obligation to sign documents shall extend after employment for inventions made during employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) This agreement does not apply to any inventions that are the subject of Section 2870 of the California Labor Code.<sup>2</sup>

<sup>1</sup>Confidential information includes information received from third parties under an obligation of nondisclosure, as well as all proprietary and confidential information developed by or for Company.

<sup>2</sup>Sec.2870. Employment agreements; assignment of rights:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any provision in an employment agreement which provides that an employee shall assign or offer to assign any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer.

Jonathan Adams Offer Letter

March 11, 2023

Signed at Chicago, Illinois this 13<sup>th</sup> day of March, 2023.

<u>/Jonathan Adams/</u> Jonathan Adams <br> Employee Signature Print Name

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Result from any work performed by the employee for the employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

(Added by Stats. 1979, c.1001, p.3401, Sec. 1. Amended by Stats. 1986, c.346, Sec. 1.)

Jonathan Adams Offer Letter

March 11, 2023

Exhibit B

I-9 Form

Jonathan Adams Offer Letter

March 11, 2023

Exhibit C

Travel Reimbursement Agreement

This agreement is between Cortigent, Inc. (the "Company") and Jonathan Adams ("Adams"), and is intended to document Adams' primary work location. With entering into the employment letter dated herewith between Adams and the Company, it is the Company's understanding that Adams' maintains an office in his home located at [Address] ("Home Office") and that Adams' primary work location has, and continues to be, the Home Office. Adams' duties and responsibilities as the Company's President and Chief Executive Officer are broad and require significant travel on behalf of the Company. In order to perform Adams' duties for the necessity and in the best interests of the Company, Adams is required to apply his own judgment to determine the location and timing of travel, which is hereby acknowledged. For example, such travel may include, but is not limited to, visits to the Company's headquarters in Valencia, California, as well as various locations throughout the world to visit physicians, clinical sites, employees, distributors, investors, analysts, trade shows, and meetings and conferences.

Therefore, all reasonable travel and related costs to and from the Home Office is eligible for direct reimbursement in accordance with the Company's Travel and Expense Policy. If Adams has any questions regarding this Agreement or the Company's Travel and Expense Policy, they should be directed to Adam Mendelsohn, Chairman, or Scott Dunbar, Compliance Officer, any time. A copy of this Agreement shall be filed in Adams' personnel file and included as an exhibit for the acknowledgment of the Compensation Committee of the Board of Directors at its next meeting.

---

| | | |
|:---|:---|:---|
| Cortigent, Inc. | Cortigent, Inc. | Jonathan Adams |
| By: | /Adam Mendelsohn/ | /Jonathan Adams/ |
| Adam Mendelsohn | Adam Mendelsohn |  |
| Sole Director | Sole Director |  |

---

Jonathan Adams Offer Letter

March 11, 2023

● **Exhibit D**

● **CORTIGENT, INC.**

● **<u>ARBITRATION AGREEMENT</u>**

This Agreement to arbitrate all disputes arising from employment is between Jonathan Adams, "Employee" and Cortigent, Inc., "Company".

&nbsp;&nbsp;&nbsp;&nbsp;A. In
 the event of any dispute, claim or controversy between Employee and Company, its directors,
 officers, employees or agents, both parties agree to submit such dispute, claim or controversy
 to final and binding arbitration, including, but not limited to, claims for breach of
 contract, civil torts and employment discrimination such as, violation of the Fair Employment
 and Housing Act, Title VII of the Civil Rights Act, Age Discrimination in Employment
 Act, as modified by the Older Worker's Protection Act, and other employment laws.

&nbsp;&nbsp;&nbsp;&nbsp;B. The
 arbitration shall be conducted by a single arbitrator selected either by mutual agreement
 of Employee and Company or, if they cannot agree, from an odd-numbered list of experienced
 employment law arbitrators provided by the American Arbitration Association. Each party
 shall strike one arbitrator from the list alternately until only one arbitrator remains.

&nbsp;&nbsp;&nbsp;&nbsp;C. The
 arbitrator shall have all powers conferred by law and a judgment may be entered on the
 award by a court of law having jurisdiction. The award and judgment shall be in writing
 and will contain the findings and conclusions on which the award is based. The award
 will be binding and final on both parties, subject to limited review by a court to confirm
 that the arbitrator complied with the law.

&nbsp;&nbsp;&nbsp;&nbsp;D. Each
 party shall have the right to conduct reasonable discovery, as determined by the arbitrator
 as provided in California Code of Civil Procedure Section 1283.5(a).

&nbsp;&nbsp;&nbsp;&nbsp;E. The
 Company will pay the arbitrator's fees and costs and the costs of the arbitration
 hearing.

&nbsp;&nbsp;&nbsp;&nbsp;F. This
 Agreement shall continue during the term of employment and thereafter regarding any employment-related
 disputes. This Agreement may only be modified by written mutual agreement of both parties.

&nbsp;&nbsp;&nbsp;&nbsp;G. Employee
 has been advised to seek advice from an attorney regarding the effect of this Agreement
 prior to signing it.

&nbsp;&nbsp;&nbsp;&nbsp;H. Employee
 and Company understand that by signing this Agreement, they give up their right to a
 civil trial and their right to a trial by jury.

&nbsp;&nbsp;&nbsp;&nbsp;I. If
 any of the provisions of this Agreement are found null, void or inoperative, for any
 reason, the remaining provisions will remain in full force and effect.

Jonathan Adams Offer Letter

March 11, 2023

---

| | |
|:---|:---|
| /Jonathan Adams/ | March 13, 2023 |
| Jonathan Adams | Date |
| /Adam Mendelsohn/ | March 11, 2023 |
| Cortigent, Inc. | Date |
| Adam Mendelsohn |  |
| Sole Director |  |

---

## Exhibit 21.1

**<u>EXHIBIT 21.1</u>**

**SUBSIDIARIES OF CORTIGENT, INC.**

Second Sight Medical Products (Switzerland) SARL en liquidation

## Exhibit 23.2

**Exhibit 23.2**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the use in this Registration Statement on Form S-1 of our report dated March 20, 2023, relating to the consolidated financial statements of Cortigent, Inc., which appears in such Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ BPM LLP

Walnut Creek, California

March 20, 2023

## Ex-Filing

**Exhibit 107**

**Calculation of Filing Fee Tables**

**<u>Form S-1</u>**

(Form Type)

**<u>CORTIGENT, INC.</u>**

(Exact Name of Registrant as Specified in its Charter)

<u>Table 1: Newly Registered Securities</u>

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Security <br> Type  | Security Class Title | Fee <br> Calculation <br> or Carry <br> Forward <br> Rule | Amount <br> Registered  | Proposed <br> Maximum <br> Offering <br> Price Per <br> Unit | Maximum <br> Aggregate <br> Offering <br> Price**(1)<br> (2)(3)** | Fee Rate | Amount of <br> Registration <br> Fee |  |
| Fees to be Paid | Equity | Common shares, $0.001 par value per share(2) | Rule 457(o) |  | $— | $17250000 |  | 1900.95 |  |
|  | Equity | Representative's warrants(3) | Rule 457(g) |  |  |  |  |  | (4) |
| Fees to be Paid | Equity | Common shares issuable upon the exercise of the Representative's warrants(5) | Rule 457(o) |  | $— | $1078125 |  | $118.81 |  |
|  | **Total Offering Amounts** | **Total Offering Amounts** |  |  |  | $18328125 |  | $2019.76 |  |
|  | **Total Fees Previously Paid** | **Total Fees Previously Paid** |  |  |  |  |  | **-** |  |
|  | **Total Fee Offset** | **Total Fee Offset** |  |  |  |  |  | **-** |  |
|  | **Net Fee Due** | **Net Fee Due** |  |  |  |  |  | $2019.76 |  |

---

(1) Includes shares of common stock of Cortigent, Inc. (the "Company" or "registrant"), which the underwriters have the right to purchase to cover over-allotments. See "Underwriting."

(2) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.

(3) Calculated pursuant to Rule 457(o) based on an estimate of the proposed maximum aggregate offering price of the securities registered hereunder to be sold by the registrant and includes the offering price of shares of common stock that the underwriters have an option to purchase to cover over-allotments, if any.

(4) No fee required pursuant to Rule 457(g).

(5) We have agreed to issue to the representative of the underwriters (the "Representative"), upon the closing of this offering, warrants to purchase up to an aggregate number of shares of our common stock (the "Representative's Warrants") in an aggregate equal to five percent (5%) of the aggregate number of shares of common stock to be issued and sold in this offering. The Representative's Warrants are exercisable at a per share price equal to 125% of the public offering price per share of the shares of common stock sold in this offering. As estimated solely for the purpose of recalculating the registration fee pursuant to Rule 457(g) under the Securities Act, the proposed maximum aggregate offering price of the Representative's Warrants is $1,078,125, which is equal to 125% of $862,500 (5.0% of $17,250,000). See "Underwriting".