Document:

Exhibit 10.1

 

iPOWER INC.

 

2020 EQUITY INCENTIVE PLAN

 

1.                 
Purposes of the Plan. The purposes of this Plan are:

 

		·	to attract and retain the best available personnel for positions of substantial responsibility,

 

		·	to provide incentives to individuals who perform services for the Company, and

 

		·	to promote the success of the Company’s business.

 

The Plan permits the
grant of Incentive Stock Options, Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Performance Units, Performance Shares and other stock or cash awards as the Administrator may determine.

 

2.                 
Definitions. As used herein, the following definitions will apply:

 

(a)              
“Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance
with Section 4 hereof.

 

(b)              
“Affiliate” means any corporation or any other entity (including, but not limited to, partnerships and
joint ventures) controlling, controlled by, or under common control with the Company.

 

(c)              
“Applicable Laws” means the requirements relating to the administration of equity-based awards under
U.S. federal and state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system
on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are,
or will be, granted under the Plans.

 

(d)              
“Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares and other stock or cash awards as the Administrator
may determine.

 

(e)              
“Award Agreement” means the written agreement setting forth the terms and provisions applicable to each
Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan.

 

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

 

(g)              
“Change in Control” means the occurrence of any of the following events after the Effective Date:

 

		(i)	A change in the ownership of the Company which occurs on the date that any one person, or more than one
person acting as a group (“Person”), acquires ownership of stock in the Company that, together with the stock
already held by such Person, constitutes more than 50% of the total voting power of the stock of the Company; provided, however,
that for purposes of this subsection (i), the acquisition of additional stock by any Person who is considered to own more than
50% of the total voting power of the stock of the Company before the acquisition will not be considered a Change in Control; or

 

 

 

 

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		(ii)	The individuals who constitute the members of the Board cease, by reason of a financing, merger, combination,
acquisition, takeover or other non-ordinary course transaction affecting the Company, to constitute at least fifty-one percent
(51%) of the members of the Board; or

 

		(iii)	The consummation of any of the following events: (A) a change in the ownership of a substantial portion of
the Company’s assets, which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period
ending on the date of the most recent acquisition by such Person) assets from the Company that have a total gross fair market value
equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition
or acquisitions, or (B) a merger, consolidation or reorganization involving the Company, where either or both of the events described
in clauses (i) or (ii) above would be the result. For purposes of this subsection (iii), the following will not constitute a change
in the ownership of a substantial portion of the Company’s assets or a Change in Control: (A) a transfer to an entity that
is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to:
(1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s
stock, (2) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company,
(3) a Person that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of
the Company, or (4) an entity, at least 50% of the total equity or voting power of which is owned, directly or indirectly, by a
Person described in subsection (iii)(B)(3) above. For purposes of this subsection (iii), gross fair market value means the value
of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated
with such assets.

 

For purposes of this
Section 2(g), persons will be considered to be acting as a group if they are owners of a corporation or other entity that enters
into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

 

(h)              
“Code” means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein
will be a reference to any successor or amended section of the Code.

 

(i)                
“Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed
by the Board in accordance with Section 4 hereof.

 

(j)                
“Common Stock” means the Class A common stock, par value $0.001 per share, of the Company.

 

(k)              
“Company” means iPower Inc., a Nevada corporation, or any successor thereto.

 

(l)               
“Consultant” means any person, including an advisor, other than an Employee engaged by the Company or
a Parent, Subsidiary or Affiliate to render services to such entity.

 

(m)             
 “Director” means a member of the Board.

 

(n)              
“Disability” means permanent and total disability as defined in Section 22(e)(3) of the Code, provided
that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent
and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time
to time.

 

 

 

 

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(o)              
“Effective Date” shall have the meaning set forth in Section 17 hereof.

 

(p)              
“Employee” means any person, including Officers and Directors, other than a Consultant employed by the
Company or any Parent, Subsidiary or Affiliate of the Company. Neither service as a Director nor payment of a director’s
fee by the Company will be sufficient to constitute “employment” by the Company.

 

(q)              
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(r)               
“Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in
exchange for Awards of the same type (which may have lower exercise prices and different terms), Awards of a different type, and/or
cash, and/or (ii) the exercise price of an outstanding Award is reduced. The Administrator will determine the terms and conditions
of any Exchange Program in its sole discretion.

 

(s)               
“Fair Market Value” means, as of any date, the value of the Common Stock as the Administrator may determine
in good faith, by reference to the closing price of such stock on any established stock exchange or on a national market system
on the day of determination, if the Common Stock is so listed on any established stock exchange or on a national market system.
If the Common Stock is not listed on any established stock exchange or on a national market system, the value of the Common Stock
will be determined as the Administrator may determine in good faith using (i) a valuation methodology set forth in Treasury Regulation
1.409A-1(b)(5)(iv)(B) or (ii) with respect to valuations applicable to Awards that are not subject to Code Section 409A, such other
valuation methods as the Administrator may select.

 

(t)                
“Fiscal Year” means the fiscal year of the Company.

 

(u)              
“Incentive Stock Option” means an Option that by its terms qualifies and is otherwise intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

 

(v)              
“Nonstatutory Stock Option” means an Option that by its terms does not qualify or expressly provides
that it is not intended to qualify as an Incentive Stock Option.

 

(w)            
“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the
Exchange Act and the rules and regulations promulgated thereunder.

 

(x)              
“Option” means a stock option granted pursuant to Section 6 hereof.

 

(y)              
“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e)
of the Code.

 

(z)              
“Participant” means the holder of an outstanding Award.

 

(aa)            
“Performance Goals” will have the meaning set forth in Section 11 hereof.

 

(bb)           
“Performance Period” means any Fiscal Year of the Company or such other period as determined by the Administrator
in its sole discretion.

 

 

 

 

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(cc)           
“Performance Share” means an Award denominated in Shares which may be earned in whole or in part upon
attainment of Performance Goals or other vesting criteria as the Administrator may determine pursuant to Section 10 hereof.

 

(dd)          
“Performance Unit” means an Award which may be earned in whole or in part upon attainment of Performance
Goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities
or a combination of the foregoing pursuant to Section 10 hereof.

 

(ee)           
“Period of Restriction” means the period during which transfers of Shares of Restricted Stock are subject
to restrictions and, therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the
passage of time, the achievement of target levels of performance, or the occurrence of other events specified in the applicable
Award, as interpreted and construed by the Administrator.

 

(ff)             
“Plan” means this iPower Inc. 2020 Equity Incentive Plan.

 

(gg)          
“Restricted Stock” means Shares issued pursuant to an Award of Restricted Stock under Section 8
hereof, or issued pursuant to the early exercise of an Option.

 

(hh)          
“Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value
of one Share, granted pursuant to Section 9 hereof. Each Restricted Stock Unit represents an unfunded and unsecured obligation
of the Company.

 

(ii)             
“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion
is being exercised with respect to the Plan.

 

(jj)             
“Section 16(b)” means Section 16(b) of the Exchange Act.

 

(kk)          
“Service Provider” means an Employee, Director, or Consultant.

 

(ll)             
“Share” means a share of the Common Stock, as adjusted in accordance with Section 14 hereof.

 

(mm)          “Stock Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant
to Section 7 is designated as a Stock Appreciation Right.

 

(nn)          
“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined
in Section 424(f) of the Code.

 

3.                 
Stock Subject to the Plan.

 

(a)              
Subject to the provisions of Section 14 hereof, the maximum aggregate number of Shares that may be awarded
and sold under the Plan is FIVE MILLION (5,000,000) Shares.
The Shares may be authorized, but unissued, or reacquired Common Stock.

 

 

 

 

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(b)              
Lapsed Awards. If an Award expires or becomes unexercisable without having been exercised in full, or, with respect
to Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units, is forfeited to or repurchased by the Company,
the unpurchased Shares (or for Awards other than Options and Stock Appreciation Rights, the forfeited or repurchased Shares) which
were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated). Upon exercise
of a Stock Appreciation Right settled in Shares, the gross number of Shares covered by the portion of the Award so settled will
cease to be available under the Plan. Shares that have actually been issued under the Plan under any Award will not be returned
to the Plan and will not become available for future distribution under the Plan; provided, however, that if unvested Shares of
Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units are repurchased by the Company or are forfeited
to the Company, such Shares will become available for future grant under the Plan. Shares subject to an Award that are transferred
to or retained by the Company to pay the tax and/or exercise price of an Award will become available for future grant or sale under
the Plan. To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing
the number of Shares available for issuance under the Plan and, for the elimination of doubt, the number of Shares of equal value
to such cash payment shall become available for future grant or sale under the Plan. Notwithstanding the foregoing provisions of
this Section 3(b), subject to adjustment provided in Section 14 hereof, the maximum number of Shares that may be issued upon
the exercise of Incentive Stock Options will equal the aggregate Share number stated in Section 3(a) above, plus, to the extent
allowable under Section 422 of the Code, any Shares that become available for issuance under the Plan under this Section 3(b).

 

(c)              
Share Reserve. The Company, during the term of this Plan, will at all times reserve and keep available such number
of Shares as will be sufficient to satisfy the requirements of the Plan.

 

4.                 
Administration of the Plan.

 

(a)              
Procedure.

 

		(i)	Multiple Administrative Bodies. Different Committees may be established with respect to
different groups of Service Providers; in that event, the Committee established with respect to a group of Service Providers shall
administer the Plan with respect to Awards granted to members of such group.

 

		(ii)	Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule
16b-3, the transactions contemplated hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3.

 

		(iii)	Other Administration. Other than as provided above, the Plan will be administered by (A) the
Board or (B) a Committee, which committee will be constituted to satisfy Applicable Laws.

 

(b)              
Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the
specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

 

		(i)	to determine Fair Market Value;

 

		(ii)	to select the Service Providers to whom Awards may be granted hereunder;

 

		(iii)	to determine the terms and condition, not inconsistent with the terms of the Plan, of any Award
granted hereunder;

 

 

 

 

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		(iv)	to institute an Exchange Program and to determine the terms and conditions, not inconsistent with
the terms of the Plan, for (1) the surrender or cancellation of outstanding Awards in exchange for Awards of the same type, Awards
of a different type, and/or cash, or (2) the reduction of the exercise price of outstanding Awards;

 

		(v)	to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan;

 

		(vi)	to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and
regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws;

 

		(vii)	to modify or amend each Award (subject to Section 19(c) hereof);

 

		(viii)	to authorize any person to execute on behalf of the Company any instrument required to reflect
or implement the grant of an Award previously granted by the Administrator;

 

		(ix)	to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that
would otherwise be due to such Participant under an Award pursuant to such procedures as the Administrator may determine consistent
with the requirements for compliance with or exemption from the provisions of Code Section 409A; and

 

		(x)	to make all other determinations deemed necessary or advisable for administering the Plan.

 

(c)              
Effect of Administrator’s Decision. The Administrator’s decisions, determinations, and interpretations
will be final and binding on all Participants and any other holders of Awards.

 

5.                 
Eligibility. Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance
Units, Performance Shares, and such other cash or stock awards as the Administrator determines may be granted to Service Providers.
Incentive Stock Options may be granted only to Employees.

 

6.                 
Stock Options.

 

(a)              
Limitations.

 

		(i)	Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory
Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with
respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000 (U.S.), such Options will be treated as Nonstatutory Stock
Options. For purposes of this Section 6(a), Incentive Stock Options will be taken into account in the order in which they
were granted. The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted.

 

		(ii)	Subject to the limits set forth in Section 3, the Administrator will have complete discretion to determine the
number of Shares subject to an Option granted to any Participant.

 

(b)              
Term of Option. The Administrator will determine the term of each Option in its sole discretion; provided, however,
that the term will be no more than ten (10) years from the date of grant thereof in the case of Incentive Stock Options Moreover,
in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns
stock representing more than 10% of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary,
the term of the Incentive Stock Option will be five (5) years from the date of grant or such shorter term as may be provided in
the Award Agreement.

 

 

 

 

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(c)              
Option Exercise Price and Consideration.

 

		(i)	Exercise Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option will be determined
by the Administrator, but will be no less than 100% of the Fair Market Value per Share on the date of grant. In addition, in the
case of an Incentive Stock Option granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing
more than 10% of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price
will be no less than 110% of the Fair Market Value per Share on the date of grant. Notwithstanding the foregoing provisions of
this Section 6(c), Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share
on the date of grant pursuant to the issuance or assumption of an Option in a transaction to which Section 424(a) of the Code applies
in a manner consistent with said Section 424(a).

 

		(ii)	Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator will fix the period within which the Option may be
exercised and will determine any conditions that must be satisfied before the Option may be exercised.

 

		(iii)	Form of Consideration. The Administrator will determine the acceptable form(s) of consideration for exercising an Option, including
the method of payment, to the extent permitted by Applicable Laws including but not limited to tendering capital stock of the Company
owned by a Participant, duly endorsed for transfer to the Company.

 

(d)              
Exercise of Option.

 

		(i)	Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times
and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised
for a fraction of a Share.
	 	 	 
	 	 	An Option will be deemed exercised when the Company receives: (i) notice of exercise (in such form as
the Administrator specifies from time to time) from the person entitled to exercise the Option, and (ii) full payment for
the Shares with respect to which the Option is exercised (together with any applicable withholding taxes). No adjustment will be
made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in
Section 14 hereof.

 

		(ii)	Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon the Participant’s termination
as the result of the Participant’s death or Disability, the Participant may exercise his or her Option within such period
of time as is specified in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event
later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in
the Award Agreement, the Option will remain exercisable for three (3) months following the Participant’s termination. Unless
otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option,
the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not
exercise his or her Option within the time specified by Award Agreement or by operation of this Section 6(d)(3), the Option will
terminate, and the Shares covered by such Option will revert to the Plan.

 

 

 

 

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		(iii)	Disability of Participant. If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the
Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the
Option is vested on the date of cessation (but in no event later than the expiration of the term of such Option as set forth in
the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for six (6)
months following the date the Participant ceases to be a Service Provider. Unless otherwise provided by the Administrator, if on
the date of cessation the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion
of the Option will revert to the Plan. If after cessation the Participant does not exercise his or her Option within the time specified
herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

 

		(iv)	Death of Participant. If a Participant dies while a Service Provider, the Option may be exercised within such period of time
as is specified in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the option
be exercised later than the expiration of the term of such Option as set forth in the Award Agreement), by the Participant’s
beneficiary, provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator.
If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative
of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will
or in accordance with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option
will remain exercisable for six (6) months following Participant’s death. Unless otherwise provided by the Administrator,
if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of
the Option will continue to vest in accordance with the Award Agreement. If the Option is not so exercised within the time specified
herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

 

7.                 
Stock Appreciation Rights.

 

(a)              
Grant of Stock Appreciation Rights. Subject to the terms and conditions of the Plan, a Stock Appreciation Right may
be granted to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion.

 

(b)              
Number of Shares. The Administrator will have complete discretion to determine the number of Stock Appreciation Rights
granted to any Participant.

 

(c)              
Exercise Price and Other Terms. The Administrator, subject to the provisions of the Plan, will have complete discretion
to determine the terms and conditions of Stock Appreciation Rights granted under the Plan; provided, however, that the exercise
price will be not less than 100% of the Fair Market Value of a Share on the date of grant.

 

(d)              
Stock Appreciation Rights Agreement. Each Stock Appreciation Right grant will be evidenced by an Award Agreement
that will specify the exercise price, the number of Shares with respect to which the Award is granted, the term of the Stock Appreciation
Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.

 

(e)              
Expiration of Stock Appreciation Rights. A Stock Appreciation Right granted under the Plan will expire upon the date
determined by the Administrator, in its sole discretion, and set forth in the Award Agreement; provided, however, that the term
will be no more than ten (10) years from the date of grant thereof. Notwithstanding the foregoing, the rules of Section 6(d)
above also will apply to Stock Appreciation Rights.

 

(f)               
Payment of Stock Appreciation Right Amount. Upon exercise of a Stock Appreciation Right, a Participant will be entitled
to receive payment from the Company in an amount determined by multiplying:

 

		(i)	The difference between the Fair Market Value of a Share on the date of exercise over the “stock appreciation
right exercise price,” as defined under Treasury Regulation Section 1.409A-1(b)(i)(B)(2), i.e., the Fair Market Value
of a Share on the date of grant of the Stock Appreciation Right; times

 

 

 

 

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		(ii)	The number of Shares with respect to which the Stock Appreciation Right is exercised.

 

At the discretion of
the Administrator, the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or in some
combination thereof.

 

8.                 
Restricted Stock.

 

(a)              
Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from
time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion,
will determine.

 

(b)              
Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify
the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole
discretion, will determine.

 

(c)              
Transferability. Except as provided in this Section 8, Shares of Restricted Stock may not be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated until such Shares become non-forfeitable at the end of the applicable Period of
Restriction.

 

(d)              
Other Restrictions. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted
Stock as it may deem advisable or appropriate.

 

(e)              
Removal of Restrictions. Except as otherwise provided in this Section 8, Shares of Restricted Stock covered by each
Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period
of Restriction. The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.

 

(f)               
Voting Rights. During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder
may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise in a manner not prohibited
by the Award Agreement.

 

(g)              
Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted
Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided
in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions
on transferability and provisions for forfeiture as the Shares of Restricted Stock with respect to which they were paid.

 

(h)              
Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which
restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan.

 

9.                 
Restricted Stock Units.

 

(a)              
Grant. Restricted Stock Units may be granted at any time and from time to time as determined by the Administrator.
Each Restricted Stock Unit grant will be evidenced by an Award Agreement that will specify such other terms and conditions as the
Administrator, in its sole discretion, will determine in accordance with the terms and conditions of the Plan, including all terms,
conditions, and restrictions related to the grant, the number of Restricted Stock Units and the form of payout, which, subject
to Section 9(d) hereof, may be left to the discretion of the Administrator.

 

 

 

 

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(b)              
Vesting Criteria and Other Terms. The Administrator will set vesting criteria in its discretion, which, depending
on the extent to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant.
After the grant of Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive any restrictions for
such Restricted Stock Units. Each Award of Restricted Stock Units will be evidenced by an Award Agreement that will specify the
vesting criteria, and such other terms and conditions as the Administrator, in its sole discretion will determine. The Administrator,
in its discretion, may accelerate the time at which any restrictions will lapse or be removed, subject to the prohibition on acceleration
of the timing of distribution of deferred compensation subject to Section 409A of the Code, to the extent applicable to the Award.

 

(c)              
Earning Restricted Stock Units. Upon meeting the applicable vesting criteria, the Participant will be entitled to
receive a payout as specified in the Award Agreement.

 

(d)              
Form and Timing of Payment. Payment of earned Restricted Stock Units will be made as soon as practicable after the
date(s) set forth in the Award Agreement, which shall satisfy the requirements of Section 409A of the Code, to the extent applicable
to such Award. The Administrator, in its sole discretion, may pay earned Restricted Stock Units in cash, Shares, or a combination
thereof. Shares represented by Restricted Stock Units that are fully paid in cash again will be available for grant under the Plan.

 

(e)              
Cancellation. On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited
to the Company.

 

10.             
Performance Units and Performance Shares.

 

(a)              
Grant of Performance Units/Shares. Performance Units and Performance Shares may be granted to Service Providers at
any time and from time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have
complete discretion in determining the number of Performance Units/Shares granted to each Participant.

 

(b)              
Value of Performance Units/Shares. Each Performance Unit will have an initial value that is established by the Administrator
on or before the date of grant. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on
the date of grant.

 

(c)              
Performance Objectives and Other Terms. The Administrator will set performance objectives or other vesting provisions.
The Administrator may set vesting criteria based upon the achievement of Company-wide, business unit, or individual goals (including,
but not limited to, continued employment), or any other basis determined by the Administrator in its discretion. Each Award of
Performance Units/Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such other terms
and conditions as the Administrator, in its sole discretion, will determine.

 

(d)              
Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance
Units/Shares will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the
Performance Period, to be determined as a function of the extent to which the corresponding performance objectives or other vesting
provisions have been achieved. After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce
or waive any performance objectives or other vesting provisions for such Performance Unit/Share.

 

(e)              
Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance Units/Shares will be made as
soon as practicable after the expiration of the applicable Performance Period or, if earlier, after the date on which a Participant’s
interest in such Performance Units/Shares is no longer subject to a substantial risk of forfeiture, provided however, that in no
event shall such payment be made after the later to occur of (i) December 31 of the year in which such risk of forfeiture lapses
or (ii) two and one-half months after such risk of forfeiture lapses. The Administrator, in its sole discretion, may pay earned
Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned
Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof.

 

 

 

 

    	 	10	 

     

    

 

(f)               
Cancellation of Performance Units/Shares. On the date set forth in the Award Agreement, all unearned or unvested
Performance Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan.

 

11.             
Leaves of Absence. Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended
during any unpaid leave of absence. A Service Provider will not cease to be an Employee in the case of (i) any leave of absence
approved by the Company, or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary.
For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon expiration of such
leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not
so guaranteed, then six (6) months and one day following the commencement of such leave any Incentive Stock Option held by the
Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock
Option.

 

12.             
Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such
Award may only be transferred (i) by will, (ii) by the laws of descent and distribution, (iii) to a revocable trust, or (iv) as
permitted by Rule 701 of the Securities Act of 1933, as amended.

 

13.             
Adjustments; Dissolution or Liquidation; Merger or Change in Control.

 

(a)              
Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities,
or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of
the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, will adjust the number and class of Shares that may be delivered under the
Plan and/or the number, class, and price of Shares covered by each outstanding Award, and the numerical Share limits set forth
in Sections 3, 6, 7, 8, 9 and 10 hereof.

 

(b)              
Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, any corporate
separation or division, including, but not limited to, a split-up, a split-off or a spin-off; a reverse merger in which the Company
is the surviving entity, but the shares of Company stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash or otherwise; or the transfer of more than fifty percent
(50%) of the then outstanding voting stock of the Company to another person or entity. the Administrator will notify each Participant
as soon as practicable prior to the effective date of such proposed transaction. The Company, to the extent permitted by applicable
law but otherwise in its sole discretion may provide for: (i) the continuation Awards by the Company (if the Company is surviving
entity or its parent; (ii) the assumption of the Plan and such outstanding Awards by the surviving entity or its parent; (iii)
the substitution by the surviving entity or its parent of rights with substantially the same terms for such outstanding Awards;
or (iv) the cancellation of such outstanding Rights without payment of any consideration provided that in the case of this clause
(iv), the Administrator will provide notice of its intention to cancel Award and offer a reasonable opportunity to exercise vested
Awards.

 

(c)              
Change in Control. In the event of a merger or Change in Control, each outstanding Award will be treated as the Administrator
determines, including, without limitation, that each Award will be assumed or an equivalent option or right substituted by the
successor corporation or a Parent or Subsidiary of the successor corporation (the “Successor Corporation”).
The Administrator will not be required to treat all Awards similarly in the transaction.

 

In the event that the
Successor Corporation does not assume or substitute for the Award, the Participant will fully vest in and have the right to exercise
all of his or her outstanding Options and Stock Appreciation Rights, including Shares as to which such Awards would not otherwise
be vested or exercisable, all restrictions on Restricted Stock will lapse, and, with respect to Restricted Stock Units, Performance
Shares and Performance Units, all Performance Goals or other vesting criteria will be deemed achieved at target levels and all
other terms and conditions met. In addition, if an Option or Stock Appreciation Right is not assumed or substituted for in the
event of a Change in Control, the Administrator will notify the Participant in writing or electronically that the Option or Stock
Appreciation Right will be fully vested and exercisable for a period of time determined by the Administrator in its sole discretion,
and the Option or Stock Appreciation Right will terminate upon the expiration of such period.

 

 

 

 

    	 	11	 

     

    

 

For the purposes of
this subsection (c), an Award will be considered assumed if, following the Change in Control, the Award confers the right to purchase
or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash,
or other securities or property) or, in the case of a Stock Appreciation Right upon the exercise of which the Administrator determines
to settle in cash or a Performance Share or Performance Unit which the Administrator can determine to settle in cash, the fair
market value of the consideration received in the merger or Change in Control by holders of Common Stock for each Share held on
the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Change in
Control is not solely common stock of the Successor Corporation, the Administrator may, with the consent of the Successor Corporation,
provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a
Performance Share or Performance Unit, for each Share subject to such Award (or in the case of Performance Units, the number of
implied shares determined by dividing the value of the Performance Units by the per share consideration received by holders of
Common Stock in the Change in Control), to be solely common stock of the Successor Corporation equal in fair market value to the
per share consideration received by holders of Common Stock in the Change in Control.

 

Notwithstanding anything
in this Section 13(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more Performance
Goals will not be considered assumed if the Company or its successor modifies any of such Performance Goals without the Participant’s
consent; provided, however, a modification to such Performance Goals only to reflect the Successor Corporation’s post-Change
in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.

 

14.             
Tax Withholding

 

(a)              
Withholding Requirements. At any time prior to or following the delivery of any Shares or cash pursuant to an Award
(or exercise thereof), the Company will have the power and the right to deduct or withhold, or require a Participant to remit to
the Company, an amount sufficient to satisfy federal, state, local, foreign or other taxes (including the Participant’s FICA
obligation) required to be withheld with respect to such Award (or exercise thereof).

 

(b)              
Withholding Arrangements. The Administrator, in its sole discretion and pursuant to such procedures as it may specify
from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation)
(i) paying cash, (ii) electing to have the Company withhold otherwise deliverable cash or Shares having a Fair Market Value
equal to the minimum amount required to be withheld, (iii) delivering to the Company already-owned Shares having a Fair Market
Value equal to the amount required to be withheld, or (iv) selling a sufficient number of Shares otherwise deliverable to
the Participant through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise)
equal to the amount required to be withheld. The amount of the withholding requirement will be deemed to include any amount which
the Administrator agrees may be withheld at the time the election is made, not to exceed the amount determined by using the maximum
federal, state or local marginal income tax rates applicable to the Participant with respect to the Award on the date that the
amount of tax to be withheld is to be determined. The Fair Market Value of the Shares to be withheld or delivered will be determined
as of the date that the taxes are required to be withheld.

 

15.             
No Effect on Employment or Service. Neither the Plan nor any Award will confer upon a Participant any right with
respect to continuing the Participant’s relationship as a Service Provider with the Company, nor will they interfere in any
way with the Participant’s right or the Company’s right to terminate such relationship at any time, with or without
cause, to the extent permitted by Applicable Laws.

 

16.             
Date of Grant. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes
the determination granting such Award, or such other later date as is determined by the Administrator. Notice of the determination
will be provided to each Participant within a reasonable time after the date of such grant.

 

17.             
Term of Plan. Subject to Section 21 hereof, the Plan will become effective upon its adoption by the Board (the
“Effective Date”). It will continue in effect for a term of ten (10) years unless terminated earlier under Section 18
hereof; provided, however, that such expiration shall not affect Awards then outstanding, and the terms and conditions of this
Plan shall continue to apply to such Awards.

 

 

 

 

    	 	12	 

     

    

 

18.             
Amendment and Termination of the Plan.

 

(a)              
Amendment and Termination. The Administrator may at any time amend, alter, suspend or terminate the Plan.

 

(b)             
Stockholder Approval. Subject to Section 21, the Company will obtain stockholder approval of the Plan and any Plan
amendment to the extent necessary or desirable to comply with Applicable Laws.

 

(c)              
Effect of Amendment or Termination. No amendment, alteration, suspension, or termination of the Plan will impair
the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement
must be in writing and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such
termination.

 

19.             
Conditions Upon Issuance of Shares.

 

(a)              
Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award
and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel
for the Company with respect to such compliance.

 

(b)              
Investment Representations. As a condition to the exercise of an Award, the Company may require the person exercising
such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation
is required.

 

(c)              
Restrictive Legends. All Award Agreements and all securities of the Company issued pursuant thereto shall bear such
legends regarding restrictions on transfer and such other legends as the appropriate officer of the Company shall determine to
be necessary or advisable to comply with applicable securities and other laws.

 

20.             
Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
will not have been obtained.

 

21.             
Stockholder Approval. The Plan will be subject to approval by the stockholders of the Company within twelve (12)
months after the date the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree
required under Applicable Laws, including without limitation Section 422 of the Code. In the event that stockholder approval is
not obtained within twelve (12) months after the date the Plan is adopted by the Board, all Incentive Stock Options granted hereunder
shall be void ab initio and of no effect. Notwithstanding any other provisions of the Plan, no Awards shall be exercisable
until the date of such stockholder approval.

 

22.             
Notification of Election Under Section 83 of the Code. If any Service Provider shall, in connection with the acquisition
of Shares under the Plan, make an election permitted under either Section 83(b) or Section 83(i) of the Code, such Service Provider
shall notify the Company of such election within ten (10) days of filing notice of the election with the Internal Revenue Service
and provide the Company with a copy thereof, in addition to any filing and a notification required pursuant to regulations issued
under the authority of Sections 83(b) or 83(i) of the Code, as applicable. A Service Provider shall not be permitted to make a
Section 83(b) election with respect to an Award of a Restricted Stock Unit.

 

 

 

 

    	 	13	 

     

    

 

23.             
Notification Upon Disqualifying Disposition Under Section 421(b) of the Code. Each Service Provider shall notify
the Company of any disposition of Shares issued pursuant to the exercise of an Incentive Stock Option under the circumstances described
in Section 421(b) of the Code (relating to certain disqualifying dispositions), within ten (10) days of such disposition.

 

24.             
409A Timing Rule for Specified Employees. If at the time of a Service Provider’s separation from service, such
individual is considered a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, and if
any payment that such Service Provider becomes entitled to under the Plan or any Award is deemed payable on account of such individual’s
separation from service, then no such payment shall be made prior to the date that is the earlier of (i) six months and one day
after the individual’s separation from service, or (ii) the individual’s death.

 

25.             
Governing Law. The law of the State of Nevada shall govern all questions concerning the construction, validity and
interpretation of this Plan, without regard to such state’s conflict of laws rules, subject to the Company’s intention
that the Plan satisfy the requirements of jurisdictions outside of the United States of America with respect to Awards subject
to such jurisdictions.

 

26.             
General Provisions.

 

(a)              
No Rights as Stockholder.Except as specifically provided in this plan, a Participant or a transferee of an Award
shall have no rights as a stockholder with respect to any shares covered by the Award until the date of the issuance of such shares
to the Participant, and no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other
property) or distributions of other rights for which the record date is prior to the date such Stock is issued.

 

(b)              
Other Compensation Arrangements.Nothing contained in this Plan shall prevent the Board from adopting other or
additional compensation arrangements, subject to stockholder approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases.

 

(c)              
Disqualifying Dispositions.Any participant who shall make a “disposition” (as defined in Section
424 of the Code) of all or any portion of an Incentive Stock Option within two (2) years from the date of grant of such Incentive
Stock Option or within (1) year after the issuance of the shares of Stock acquired upon exercise of such Incentive Stock Option
shall be required to immediately advise the Company in writing as to the occurrence of the sale and the price realized upon the
sale of such shares of Stock.

 

(d)              
Regulatory MattersEach Stock Option Agreement and Stock Purchase Agreement shall provide that no shares shall
be purchased or sold thereunder unless and until (i) any then applicable requirements of state or federal laws and regulatory agencies
shall have been fully compiled with to the satisfaction of the Company and its counsel and (ii) if required to do so by the Company,
the Optionee or Offeree shall have executed and delivered to the Company a letter of investment intent in such form and containing
such provisions as the Board or Committee may require.

 

(e)              
Delivery.Upon exercise of an Award granted under this Plan, the Company shall issue Stock or pay any amounts
due within a reasonable period of time thereafter. Subject to any statutory obligations the Company may otherwise have, for purposes
of this Plan, thirty days shall be considered a reasonable period of time.

 

(f)               
Other Provisions.The Stock Option Agreements and Stock Purchase Agreements authorized under the Plan may contain
such other provisions not inconsistent with this Plan, including, without limitation, restrictions upon the exercise of the Rights,
as the Administrator may deem advisable.

 

(g)              
Section 409A. Awards under the Plan are intended either to be exempt from the rules of Section 409A of the Code or
to satisfy those rules, and the Plan and such awards shall be construed accordingly. Granted rights may be modified at any time,
in the Administrator’s direction, so as to increase the likelihood of exemption from or compliance with the rules of Section
409A of the Code.

 

 

 

 

    	 	14Exhibit 10.2

 

FORM OF SUBLEASE AGREEMENT

 

 

This
Sublease Agreement (the “Agreement”) is made and effective December 1, 2018 (Effective Date”),

 

	BETWEEN:	BizRight, LLC (the "Sublessor"), a limited liability company
organized and existing under the laws of the State of California, with its head office located at:
	 	 
	 	2399 Bateman Avenue – Irwindale,
California 91010

 

	AND:	BZRTH, Inc. (the "Sublessee"), a corporation organized and existing under the laws of the State of Nevada, with
its head office located at:
	 	 
	 	5348 Vegas Drive – Las Vegas, Nevada 89108

 

RECITALS

 

In consideration of the covenants
and agreements hereinafter set forth to be kept and performed by the parties hereto, Sublessor, hereby subleases to Sublessee and
Sublessee does hereby take, lease, and hire from Sublessor the Leased Premises hereinafter described for the period, and at the
rental, subject to, and upon the terms and conditions hereinafter set forth, as follows:

 

1.    DESCRIPTION
OF PREMISES

 

		a.	Lessee has leased a building consisting of one (1) floors and approximately
48,867, square feet of free-standing industrial building situated upon 226 acres of industrial zoned land with office space from
DDCC Group, LLC, lessor.

 

		b.	Lessee shall demise to sublessee the entire 48,867 square feet of the building, all located at 2399 Bateman Avenue, Duarte,
California 91010, which is a free-standing industrial building situated upon 226 acres of industrial zoned land with office
space.

 

2.    TERM
OF SUBLEASE

 

		a.	The term of this sublease agreement shall be for an initial period of two (2) years, commencing
on December 1, 2018, and terminating on December 31, 2020, unless earlier terminated by breach of the terms and conditions of this
Sublease Agreement.

 

		b.	Lessor concurs that sublessee may remain in possession of the demised premises for the full term of this sublease agreement,
despite any change that may occur in the status of lessee or the lease agreement between lessee and lessor.

 

3.    ACCEPTANCE OF
LEASED PREMISES

 

Sublessee’s occupancy of the Leased Premises
shall be conclusive evidence of Sublessee's acceptance of all improvements constituting the Leased Premises, in good and satisfactory
condition and repair. Sublessee shall accept possession and use of the Leased Premises “as is” in their condition existing
as of the date hereof with all faults. Sublessee, at Sublessee’s sole cost and expense, shall promptly comply with all applicable
laws, ordinances, codes, rules, orders, directions and regulations of governmental authority governing and regulating the use or
occupancy of the Leased Premises as may now or hereafter be in effect during the Term hereof and shall if so required make any
alterations, additions or changes to the Leased Premises as may be required by said laws, ordinances, codes, rules, directions
and regulations.

 

 

 

 

    	Sublease Agreement	 	1

     

    

 

4.     HOLDING OVER

 

Any holding over of the Leased Premises by Sublessee
after the expiration of the Term hereof shall only be with the written consent of Sublessor first had and obtained and shall be
construed to be a tenancy from month to month at a rental per month, or portion thereof, in an amount equal to 100% of the rent
due Sublessor for the month immediately preceding such holding over, and shall otherwise be on the same terms, conditions and covenants
herein specified.

 

5.     SUBLEASE TERMINATION
AND CONDITION OF PREMISES

 

Upon the termination of this Sublease for any reason
whatsoever, Sublessee shall return possession of the Leased Premises to Sublessor or Sublessor’s authorized agent in a good,
clean and safe condition, reasonable wear and tear excepted. On or before, and in any event no later than [NUMBER] days following
the date Sublessee vacates the Leased Premises and returns possession of same to Sublessor, Sublessee and Sublessor, or authorized
agents thereof, shall conduct a joint inspection of the Leased Premises. Sublessee at its cost shall thereafter promptly repair
or correct any defects or deficiencies in the condition of the Leased Premises, reasonable wear and tear excepted.

 

6.     RENT

 

Commencing December 1, 2018, Sublessee shall pay the base rent
to lessee as follows:

 

	 	•	December
    1, 2018 – November 2019: $43,287.00 per month
	 	•	December 1, 2019 – November 31, 2020: $44,585.00 per month
	 	•	December 1, 2020 - $45,923.00 per month (conversion of sublease to month-to-month)

 

All rent payments are due on the First day of each
month, commencing on December 1, 2018, and continuing each month thereafter during the term of this sublease agreement. Sublessee
shall pay all other sums due as additional rental (if applicable) under the provisions of this sublease agreement on the basic
rental payment due date first occurring after the additional rental payment arises.

 

7.     PAYMENT OF RENT

 

Sublessee hereby covenants and agrees to pay rent
to Sublessor, without offset or deduction of any kind whatsoever, in the form and at the times as herein specified. All rent shall
be paid to Sublessor at the address specified in this Sublease unless and until Sublessee is otherwise notified in writing. Base
Minimum Rent payments in the monthly amount set forth below shall be payable monthly, in advance, due on the first (1st) day of
each calendar month commencing on the Commencement Date hereof and delinquent if not paid on or before the third (3rd) day of
the month throughout the Term of this Sublease. Rent for any period which is for less than one month shall be a pro rata portion
of the monthly installment. The required payments under Article 6 and all other charges payable by Sublessee shall be deemed to
be additional rent.

 

8.      DELINQUENT
PAYMENTS

 

In the event Sublessee shall fail to pay the rent or any installment thereof, or any other fees, costs, taxes or expenses payable under
this Sublease after the said payment has become due, Sublessee agrees that Sublessor will incur additional costs and expenses in the form
of extra collection efforts, administrative time, handling costs, and potential impairment of credit on loans for which this Sublease
may be a security. Both parties agree that in such event, Sublessor, in addition to its other remedies shall be entitled to recover a
late payment charge against Sublessee in the amount of $50.00. Sublessee further agrees to pay Sublessor any cost incurred by Sublessor
in effecting the collection of such past due amount, including but not limited to attorneys' fees and/or collection agency fees. Sublessor
shall have the right to require Sublessee to pay monies due in the form of a cashier's check or money order. Nothing herein contained
shall limit any other remedy of Sublessor with respect to such payment delinquency.

 

 

 

 

    	Sublease Agreement	 	2

     

    

 

9.      SECURITY
DEPOSIT

 

On execution of this Sublease, Sublessee shall deposit with Sublessor a sum $0.00 (the “Security Deposit”) in order to provide
security for the performance by Sublessee of the provisions of this Sublease. If Sublessee is in default, Sublessee shall remit payment
to Sublessor equal to two (2) months of rent to satisfy or to cure the default or to compensate Sublessor for damage sustained by Sublessor
resulting from Sublessee's default. At the expiration or termination of this Sublease, Sublessor shall return the Security Deposit to
Sublessee or its successor, less such amounts as are reasonably necessary to remedy Sublessee's defaults, to repair damages the Leased
Premises caused by Sublessee or to clean the Leased Premises upon such termination, as soon as practicable thereafter. In the event of
the sale or other conveyance of the Leased Premises, the Security Deposit will be transferred to the purchaser or transferee and the Sublessor
will be relieved of any liability with reference to such Security Deposit. Sublessor shall not be required to keep the Security Deposit
separate from its other funds, and (unless otherwise required by law) Sublessee shall not be entitled to interest on the Security Deposit.

 

10.     USE
OF PREMISES

 

	 	a.	Permitted Use: The Leased Premises are to be used by Sublessee for the sole purpose of warehouse and distribution
    of agricultural products, electronics and related office uses and for no other purpose whatsoever. Sublessee shall not use
    or occupy the Leased Premises or permit the same to be used or occupied for any use, purpose or business other than as provided
    in this Section a) during the Term of this Sublease or any extension thereof.
	 	 	 
	 	b.	Prohibited Activities: During the Term of Sublease or any extension thereof, Sublessee shall not:

 

	 	i.	Use or permit the Leased Premises to be used for any purpose in violation of any statute, ordinance, rule, order, or regulation of any
governmental authority regulating the use or occupancy of the Leased Premises.

 

	 	ii.	Cause or permit any waste in or on the Leased Premises.

 

	 	iii.	Use or permit the use of the Leased Premises in any manner that will tend to create a nuisance or tend to adversely affect or injure the
reputation of Sublessor or its affiliates.

 

		iv.	Allow any activity to be conducted on the premises or store any material on the Leased Premises
which will increase premiums for or violate the terms of any insurance policy(s) maintained by or for the benefit of Sublessor.

 

		v.	Store any explosive, radioactive, dangerous, hazardous or toxic materials
in or about the Leased Premises.

 

		vi.	Use or allow the Leased Premises to be used for sleeping quarters, dwelling rooms or for any unlawful
purpose.

 

		vii.	Build any fences, walls, barricades or other obstructions; or, install any radio, television,
phonograph, antennae, loud speakers, sound amplifiers, or similar devices on the roof, exterior walls or in the windows of the
Leased Premises, or make any changes to the interior or exterior of the Leased Premises without Sublessor's prior written consent.

 

		c.	Operational Permits: Sublessee, prior to the Commencement Date, shall obtain and thereafter continuously maintain in
full force and effect for the Term of this Sublease or any extension thereof, at no cost or expense to Sublessor, any and all approvals,
licenses, or permits required by any lawful authority as of the Commencement Date or imposed thereafter, for the use of Leased
Premises, including but not limited to business licenses.

 

 

 

 

    	Sublease Agreement	 	3

     

    

 

		d.	Compliance With Laws: Sublessee shall comply with all federal, state, county, municipal,
or other statutes, laws, ordinances, regulations, rules, or orders of any governmental or quasi-governmental entity, body, agency,
commission, board, or official applicable to the Leased Premises and Sublessee’s business.

 

11.      UTILITIES
AND TAXES

 

		a.	Utility Charges: Sublessee shall be responsible for and shall pay, and indemnify and hold Sublessor and the property
of Sublessor free and harmless from, all charges for the furnishing of gas, water, electricity, telephone service, and other public
utilities to the Leased Premises during the Term of this Sublease or any extension thereof and for the removal of garbage and rubbish
from the Leased Premises during the Term of this Sublease or any extension thereof. Sublessor shall not be liable in damages or
otherwise for any failure or interruption of any utility service being furnished to the Leased Premises and no such failure or
interruption shall entitle Sublessee to terminate this Sublease.

 

		b.	Personal Property Taxes: Sublessee shall be responsible for and shall pay before they become delinquent all taxes, assessments,
or other charges levied or imposed by any governmental entity on the equipment, trade fixtures, appliances, merchandise and other
personal property situated in, on, or about the Leased Premises including, without limiting the generality of the other terms of
this Section, any shelves, counters, vault doors, wall safes, partitions, fixtures, machinery, or office equipment on the Leased
Premises, whether put there prior to or after the Commencement Date of this Sublease.

 

		c.	Real Property Taxes and Assessments: Sublessee shall pay directly to the charging authority
all taxes (as hereinafter defined) respecting the Leased Premises. Sublessee shall pay all taxes on or before [NUMBER] days prior
to delinquency thereof. Sublessee shall promptly after payment of any taxes deliver to Sublessor written receipts or other satisfactory
evidence of the payment thereof. As used herein, “taxes” shall mean all taxes, assessments, fees, charges, levies,
and penalties (if such penalties result from Sublessee’s delinquency in paying all or any taxes), of any kind and nature,
general and special, ordinary and extraordinary, unforeseen as well as foreseen (including, without limitation, all installments
of principal and interest required to pay any general or special assessments for public improvements) now or hereafter imposed by any
authority having the direct or indirect power to tax, including, without limitation the federal government, and any state, county,
city, or other governmental or quasi-governmental authority, and any improvement or assessment district or other agency or division
thereof, whether such tax is:

 

		i.	levied or assessed against or with respect to the value, occupancy, or use of all or any portion
of the Leased Premises (as now constructed or as may at any time hereafter be constructed, altered, or otherwise changed), or any
legal or equitable interest of Sublessor in the Leased Premises or any part thereof; or

 

		ii.	levied or assessed against or with respect to Sublessor's business of leasing the Leased Premises,
or with respect to the operation of the Leased Premises; or

 

		iii.	determined by the area of the Leased Premises or any part thereof, or by the gross receipts,
income, or rent and other sums payable hereunder by Sublessee (including, without limitation, any gross income or excise tax levied
with respect to receipt of such rent and/or other sums due under this Sublease); or

 

		iv.	imposed upon this transaction or any document to which Sublessee is a party creating or transferring
any interest in the Leased Premises; or

 

		v.	imposed during the term of this Sublease or any extension thereof because of a change in ownership
of the Leased Premises which results in an increase of real property taxes; or

 

		vi.	any tax or excise, however described, imposed (whether by reason of a change in the method of
taxation or assessment, creation of a new tax or charge, or any other cause) in addition to, in substitution partially or totally
of, or as an alternate to, any tax previously included within the definition of taxes, or any tax the nature of which was previously
included in the definition of taxes, whether or not now customary or within the contemplation of the parties.

 

 

 

 

    	Sublease Agreement	 	4

     

    

 

Taxes shall also include all charges, levies
or fees imposed by reason of environmental regulation or other governmental control of the Leased Premises, and all costs and
expenses and reasonable attorneys’ fees paid or incurred by Sublessor in connection with:

 

		(1)	any proceeding to contest in whole or in part the imposition or collection of any taxes;

 

		(2)	negotiation with public authorities as to any taxes.

 

		d.	Proration of Taxes: Sublessee's liability to pay taxes shall be prorated on the basis
of a 365-day year to account for any fractional portion of a fiscal tax year included in the lease Term and its commencement and
expiration.

 

		e.	Tax Delinquency: Failure of Sublessee to pay promptly when due any of the charges required
to be paid under this Article shall constitute a default under the terms hereof in like manner as a failure to pay rental when
due, and if Sublessor shall elect to pursue an unlawful detainer action upon said default, then Sublessor shall be entitled to
claim as an amount of additional rent owed for purposes of said unlawful detainer the amount of such taxes due and payable by Sublessee.

 

		f.	All Other Charges: Sublessee shall pay to Sublessor any and all charges, fees, taxes,
and other amounts due from Sublessor to the master lessor of the Leased Premises prior to its due date, for sums due or owing on
or after the date of this Sublease.

 

		g.	Common Area Maintenance Charges:
Sublessee shall be responsible for, and shall pay to Sublessor on demand, any and all costs, fees, charges, assessments, expenses
or payments for which Sublessor is obligated or liable under the Master Lease with respect to the operation, maintenance and repair
of common area of the Leased Premises. “Common area” shall include, without limitation, those areas in or about the
property of which the Leased Premises are a part, which have been set aside for the general use, convenience and benefit of the
occupants of the property and their customers and employees, including, without limitation, the automobile parking areas, sidewalks,
landscaped areas and other areas for pedestrian and vehicular use.

 

To the extent Sublessor pays estimated amounts for
such common area expenses, Sublessee shall pay such amounts to Sublessor on demand from Sublessor and shall be entitled to reimbursements
and/or offsets against future common area expenses as such reimbursements or offsets are received by Sublessor.

 

12.      MAINTENANCE
AND ALTERATIONS

 

		a.	Maintenance by Sublessee: Sublessee shall, at its sole cost and expense, keep in good and safe condition, order and
repair all portions of the Leased Premises and all facilities appurtenant thereto and every part thereof which Sublessor is responsible
to maintain or repair as lessee under the Master Lease, including without limitation, all plumbing, heating, air conditioning,
ventilating, sprinkler, electrical and lighting facilities, interior walls, interior surfaces of exterior walls, floors, ceilings,
windows, doors, entrances, all glass (including plate glass), and skylights located within the Leased Premises, walkways, parking
and service areas within or adjacent to the Leased Premises. If the Leased Premises are not so maintained, and such condition continues
[NUMBER] hours after notice or exists upon expiration or termination hereof, Sublessor may cause such maintenance to be performed
at Sublessee's expense and/or may obtain maintenance contracts for the Store and charge the Sublessee for same. Sublessor shall,
when and if it deems necessary, make any and all repairs on the Leased Premises, and Sublessee hereby consents to such actions
by Sublessor. Sublessor may charge the Sublessee for any of the foregoing repairs, if, in Sublessor’s opinion, such repairs
are occasioned by Sublessee's abuse or neglect. Sublessee shall not modify, alter, or add to the Leased Premises without the prior
written consent of Sublessor.

 

		b.	Damage; Abatement of Rent: Notwithstanding anything in this Sublease to the contrary, Sublessee
at its own cost and expense shall repair and replace as necessary all portions of the Leased Premises damaged by Sublessee, its
employees, agents, invitees, customers or visitors. There shall be no abatement of rent or other sums payable by Sublessee prior
to or during any repairs by Sublessee or Sublessor hereunder.

 

 

 

 

    	Sublease Agreement	 	5

     

    

 

		c.	Alterations and Liens: Sublessee shall not make or permit any other person to make any
structural changes, alterations, or additions to the Leased Premises or to any improvement thereon or facility appurtenant thereto
without the prior written consent of Sublessor first had and obtained. Sublessee shall keep the Leased Premises free and clear
from any and all liens, claims, and demands for work performed, materials furnished, or operations conducted on the Leased Premises
at the instance or request of Sublessee. As a condition to giving its consent to any proposed alterations, Sublessor may require
that Sublessee remove any or all of said alterations at the expiration or sooner termination of the Sublease term and restore the
Leased Premises to its condition as of the date of Sublessee's occupation of the Leased Premises. Prior to construction or installation
of any alterations, Sublessor may require Sublessee to provide Sublessor, at Sublessee's sole cost and expense, a lien and completion
bond in an amount equal to one and one-half times the estimated cost of such alterations, to insure Sublessor against any Liability
for mechanic's and materialmen's liens and to insure completion of the work. Should Sublessee make
any alterations without the prior written consent of Sublessor, Sublessee shall remove the same at Sublessee’s expense upon
demand by Sublessor.

 

		d.	Inspection by Sublessor: Sublessee shall permit Sublessor or Sublessor’s agents,
representatives, designees, or employees to enter the Leased Premises at all reasonable times for the purpose of inspecting the
Leased Premises to determine whether Sublessee is complying with the terms of this Sublease and for the purpose of doing other
lawful acts that may be necessary to protect Sublessor’s interest in the Leased Premises under this Sublease, or to perform
Sublessor’s duties under this Sublease, or to show the Leased Premises to insurance agents, lenders, and other third parties,
or as otherwise allowed by law.

 

		e.	Plans and Permits: Any alteration that Sublessee shall desire to make in or about the Leased Premises and which requires
the consent of Sublessor shall be presented to Sublessor in written form, with proposed detailed plans and specifications therefor
prepared at Sublessee's sole expense. Any consent by Sublessor thereto shall be deemed conditioned upon Sublessee’s acquisition
of all permits required to make such alteration from all appropriate governmental agencies, the furnishing of copies thereof to
Sublessor prior to commencement of the work, and the compliance by Sublessee with all conditions of said permits in a prompt and
expeditious manner, all at Sublessee's sole cost and expense.

 

		f.	Construction Work Done by Sublessee: All construction work required or permitted to be
done by Sublessee shall be performed by a licensed contractor in a good and workmanlike manner and shall conform in quality and
design with the Leased Premises existing as of the Commencement Date, and shall not diminish the value of the Leased Premises in
any way whatsoever. In addition, all such construction work shall be performed in compliance with all applicable statutes, ordinances,
regulations, codes and orders of governmental authorities and insurers of the Leased Premises. Sublessee or its agents shall secure
all licenses and permits necessary therefor.

 

		g.	Title to Alterations: Unless Sublessor requires the removal thereof, any alterations which
may be made on the Leased Premises, shall upon installation or construction thereof on the Leased Premises become the property
of Sublessor and shall remain upon and be surrendered with the Leased Premises at the expiration or sooner termination of the term
of this Sublease. Without limiting the generality of the foregoing, all heating, lighting, electrical (including all wiring, conduits,
main and subpanels), air conditioning, partitioning, drapery, and carpet installations made by Sublessee, regardless of how affixed
to the Leased Premises, together with all other alterations that have become a part of the Leased Premises, shall be and become
the property of Sublessor upon installation, and shall not be deemed trade fixtures, and shall remain upon and be surrendered with
the Leased Premises at the expiration or sooner termination of this Sublease.

 

		h.	Removal of Alterations: In addition to Sublessor's right to require Sublessee at the time of installation or construction
of any alteration to remove the same upon expiration or sooner termination of this Sublease, Sublessor may elect, by notice to
Sublessee at least [NUMBER] days before expiration of the Term hereof, or within [NUMBER] days after sooner termination hereof,
to acquire Sublessee to remove any alterations that Sublessee has made to the Leased Premises. If Sublessor so elects, Sublessee
shall, at its sole expense, upon expiration of the Term hereof, or within [NUMBER] days after any sooner termination hereof, remove
such alterations, repair any damage occasioned thereby, and restore the Leased Premises to the condition existing as of the Commencement
Date or such other condition as may reasonably be designated by Sublessor in its election.

 

 

 

 

    	Sublease Agreement	 	6

     

    

 

13.      INDEMNITY
AND INSURANCE

 

		a.	Hold-Harmless Clause: Sublessee
agrees to indemnify, defend and hold Sublessor, the property of Sublessor, and the Leased Premises, free and harmless from any
and all claims, liability, loss, damage, or expenses incurred by reason of this Sublease or resulting from Sublessee’s occupancy
and use of the Leased Premises (other than as a result of the direct gross negligence of Sublessor), specifically including, without
limitation, any claim, liability, loss, or damage arising by reason of:

 

		i.	The death or injury of any person or persons, including Sublessee, any person who is an employee
or agent of Sublessee, or by reason of the damage to or destruction of any property, including property owned by Sublessee or any
person who is an employee or agent of Sublessee, and caused or allegedly caused by either the condition of the Leased Premises,
or some act or omission of Sublessee or of some agent, contractor, employee, or invitee of Sublessee on the Leased Premises;

 

		ii.	Any work performed on the Leased Premises or materials furnished to the Leased Premises at the
instance or request of Sublessee or any agent or employee of Sublessee; and

 

		iii.	Sublessee's failure to perform any provision of this Sublease or to comply with any requirement
of law or any requirement imposed on the use by Sublessee of the Leased Premises by any governmental agency or political subdivision.

 

		iv.	Maintenance of the insurance required under this Article shall not relieve
Sublessee of the obligations of indemnification contained in this Section.

 

		b.	Liability Insurance: Sublessee shall, at its own cost and expense,
secure and maintain during the term of this Sublease, a comprehensive broad form policy of Combined Single Limit Bodily Injury
and Property Damage Insurance issued by a reputable company authorized to conduct insurance business in the State of California
insuring Sublessee against loss or liability caused by or connected with Sublessee’s use and occupancy of the Leased Premises
in an amount not less than $1,000,000.00 per occurrence.

 

		c.	Casualty and Fire Insurance: At
all times during the Term hereof, Sublessee shall keep the Leased Premises and personal property thereon insured against loss or
damage by fire, windstorm, hail, explosion, damage from vehicles, smoke damage, vandalism, casualty and malicious mischief and
such other risks as are customarily included in “all risk” extended insurance coverage, including coverage for business
interruption, in an amount equal to not less than [NUMBER] of the actual replacement value of the Leased Premises and the personal
property, fixtures, and other property on the Leased Premises.

 

		d.	Workers' Compensation Insurance: During
the term of this Sublease, Sublessee shall comply with all Workers' Compensation laws applicable on the date hereof or enacted
thereafter and shall maintain in full force and effect a Workers’ Compensation Insurance policy covering all employees in
any way connected with the business conducted by Sublessee pursuant to this Sublease and shall pay all premiums, contributions,
taxes and such other costs and expenses as are required to be paid incident to such insurance coverage, all at no cost to Sublessor.

 

 

 

 

    	Sublease Agreement	 	7

     

    

 

		e.	Policy
                                                               Form: The policies of insurance required to be secured and maintained under this Sublease shall be issued by good,
                                                               responsible companies, qualified to do business in the State of California, with a general policy holders’ rating of at
                                                               least “A”. Executed copies of such policies of insurance or certificates thereof shall be delivered to Sublessor
                                                               and to the Master Lessor under the Master Lease not later than
ten (10) business days prior to the commencement of business operations of Sublessee at the Leased Premises and thereafter, executed
copies of renewal policies of insurance or certificates thereof shall be delivered to Sublessor within thirty (30) days prior to
the expiration of the term of each such policy. All such policies of insurance shall contain a provision that the insurance company
writing such policy(s) shall give Sublessor at least fourteen (14) days' written notice in advance of any cancellation or lapse,
or the effective date of any reduction in the amounts or other material changes in the provisions of such insurance. All policies
of insurance required under this Sublease shall be written as primary coverage and shall list the Master Lessor under the Master
Lease and the Sublessor as loss payees and as additional insureds. If Sublessee fails to procure or maintain in force any insurance
as required by this Section or to furnish the certified copies or certificates thereof required hereunder, Sublessor may, in addition
to all other remedies it may have, procure such insurance and/or certified copies or certificates, and Sublessee shall promptly
reimburse Sublessor for all premiums and other costs incurred in connection therewith.

 

		f.	Waiver of Subrogation: Sublessee agrees that in the event of
loss or damage due to any of the perils for which it has agreed to provide insurance, Sublessee hereby waives any and all claims
that it might otherwise have against Sublessor with respect to any risk insured against to the extent of any proceeds realized
from the insurance coverage to compensate for a loss. To the extent permitted by applicable insurance policies without voiding
coverage, Sublessee hereby releases and relieves Sublessor, and waives its entire right of recovery against Sublessor for loss
or damage arising out of or incident to the perils insured against to the extent of insurance proceeds realized for such loss or
damage, which perils occur in, on or about the Leased Premises and regardless of the cause or origin, specifically including the
negligence of Sublessor or its agents, employees, contractors and/or invitees. Sublessee shall to the extent such insurance endorsement
is available, obtain for the benefit of Sublessor a waiver of any right of subrogation which the insurer of such party might otherwise
acquire against Sublessor by virtue of the payment of any loss covered by such insurance and shall give notice to the insurance
carrier or carriers that the foregoing waiver of subrogation is contained in this Sublease.

 

14.      SIGNS
AND TRADE FIXTURES

 

		a.	Installation of Trade Fixtures: For so long as Sublessee is not in default of any of the
terms, conditions and covenants of this Sublease, Sublessee shall have the right at any time and from time to time during the Term
of this Sublease and any renewal or extension of such term, at Sublessee's sole cost and expense, to install and affix in, to,
or on the Leased Premises such items (hereinafter called “trade fixtures”), for use in Sublessee's trade or business
as Sublessee may, in its reasonable discretion, deem advisable.

 

		b.	Signs: Subject to any and all requirements now or hereinafter enacted by any municipal,
county, or state regulatory agency having jurisdiction thereover and subject to Sublessor’s written consent, Sublessee may
erect at Sublessee's cost, a sign on the Leased Premises identifying the Leased Premises. Sublessee shall maintain, at Sublessee's
sole cost and expense, said sign.

 

		c.	Removal of Signs and Trade Fixtures: In addition to Sublessor’s right to
                                                                      require Sublessee at the time of installation of any sign or trade fixtures to remove the same upon expiration or sooner
                                                                      termination of this Sublease, Sublessor may elect, by notice to Sublessee at least thirty (30) days before expiration of the
                                                                      Term hereof, or within twenty (20) days after sooner termination hereof, to require Sublessee to remove any sign or trade
                                                                      fixture owned by Sublessee. If Sublessor so elects, Sublessee shall at its sole cost ant expense, upon expiration of the Term
                                                                      hereof, or within twenty (20) days after any sooner termination hereof, remove such sign or trade fixture owned by Sublessee.
                                                                      If Sublessor so elects, Sublessee shall, at its sole cost and expense, upon expiration of the
Term hereof, or within ten (10) days after any sooner termination hereof, remove such sign or trade fixture, repair any damage
occasioned thereby, and restore the Leased Premises to the condition existing as of the Commencement Date or such other condition
as may reasonably be designated by Sublessor in its election.

 

 

 

 

    	Sublease Agreement	 	8

     

    

 

15.      CONDEMNATION
AND DESTRUCTION

 

		a.	Total Condemnation: Should, during
the Term of this Sublease or any renewal or extension thereof, title and possession of all of the Leased Premises be taken under
the power of eminent domain by any public or quasi-public agency or entity, this Sublease shall terminate as of the date actual
physical possession of the Leased Premises is taken by the agency or entity exercising the power of eminent domain and both Sublessor
and Sublessee shall thereafter be released from all obligations under this Sublease.

 

		b.	Termination Option for Partial Condemnation: Should, during
the Term of this Sublease or any renewal or extension thereof, title and possession of more than 10% of the floor area of the Leased
Premises, and/or more than 25% of the parking area of the Leased Premises be taken under the power of eminent domain by any public
or quasi-public agency or entity, Sublessor may terminate this Sublease. The option herein reserved shall be exercised by giving
written notice on or before ten (10) days after actual physical possession of the portion subject to the eminent domain power is
taken by the agency or entity exercising that power and this Sublease shall terminate as of the date the notice is deemed given.

 

		c.	Partial Condemnation Without Termination:
Should Sublessee or Sublessor fail to exercise the termination option described in this Article, or should the portion of the
Leased Premises taken under the power of eminent domain be insufficient to give rise to the option therein described, then, in
that event:

 

		i.	This Sublease shall terminate as to the portion of the Leased Premises taken by eminent domain as of the day (hereinafter called
the “date of taking”), actual physical possession of that portion of the Leased Premises is taken by the agency or
entity exercising the power of eminent domain;

 

		ii.	Base Minimum Rent to be paid by Sublessee to Sublessor pursuant to the terms of this Sublease
shall, after the date of taking, be reduced by an amount that bears the same ratio to the Base Minimum Rent specified in this Sublease
as the square footage of the actual floor area of the Leased Premises taken under the power of eminent domain bears to the total
square footage of floor area of the Leased Premises as of the date of this Sublease; and

 

		iii.	Except to the extent the Master Lessor under the Master Lease is so obligated, Sublessee, at
Sublessee's own cost and expense shall remodel and reconstruct the building remaining on the portion of the Leased Premises not
taken by eminent domain into a single efficient architectural unit in accordance with plans mutually approved by the parties hereto
as soon after the date of taking, or before, as can be reasonably done.

 

		d.	Condemnation Award: Should, during
the Term of this Sublease or any renewal or extension thereof, title and possession of all or any portion of the Leased Premises
be taken under the power of eminent domain by any public or quasi-public agency or entity, the compensation or damages for the
taking awarded shall belong to and be the sole property of the Sublessor.

 

		e.	Destruction: (a) In the event
the Leased Premises are damaged or destroyed and the total costs and expenses for repairing or reconstructing the Leased Premises
exceeds the sum of $10,000, Sublessor, at Sublessor's option, may:

 

		i.	Continue this Sublease in full force and effect by restoring, repairing or rebuilding the Leased
Premises at Sublessor's own cost and expense or through insurance coverage; or

 

		ii.	Terminate this Sublease by serving written notice of such termination on Sublessee no later than
10 days following such casualty, in which event this Sublease shall be deemed to have been terminated on the date of such casualty.

 

 

 

 

    	Sublease Agreement	 	9

     

    

 

		iii.	In the event the Leased Premises are damaged or destroyed and Sublessee will not be able to operate
any business thereon for 7-consecutive days, Sublessee, at Sublessee's option, may terminate this Sublease by serving written notice
of such termination on Sublessor no later than 3-days following such casualty, in which event this Sublease shall be deemed terminated
on the date of such casualty; provided, however, that such termination right shall not be applicable unless Sublessor has a similar
termination right under the Master Lease.

 

		iv.	Should Sublessor or the Master Lessor under the Master Lease elect to repair and restore the
Leased Premises to their former condition following partial or full destruction of the Leased Premises:

 

		1.	Sublessee shall not be entitled to any damages for any loss or inconvenience sustained by Sublessee
by reason of the making of such repairs and restoration.

 

		2.	Sublessor and such Master Lessor shall have full right to enter upon and have access to the Leased
Premises, or any portion thereof, as may be reasonably necessary to enable such parties promptly and efficiently to carry out the
work of repair and restoration.

 

		f.	Damage by Sublessee: Sublessee
shall be responsible for and shall pay to Sublessor any and all losses, damages, costs, and expenses, including but not limited
to attorney's fees, resulting from any casualty loss caused by the negligence or wilful misconduct of Sublessee or its employees,
agents, contractors, or invitees.

 

16.      SUBLEASING,
ASSIGNMENT, DEFAULT AND TERMINATION

 

		a.	Subleasing and Assignment: Sublessee
                                                               shall not sell, assign, hypothecate, pledge or otherwise transfer this Sublease, or any interest therein, either voluntarily,
                                                               involuntarily, or by operation of law, and shall not sublet the Leased Premises, or any part thereof, or any right or
                                                               privilege appurtenant thereto, for any reason whatsoever, or permit the occupancy thereof by any person, persons, or entity
                                                               through or under it, or grant a security interest in Sublessee's interest in the Leased Premises or this Sublease or any
                                                               fixtures located on the Leased Premises, without the prior written consent of Sublessor first had and obtained, which may be
                                                               given or withheld in the Sublessor’s sole and absolute discretion. For the purpose of this Section, any dissolution,
                                                               merger, consolidation or other reorganization of Sublessee, or any change or changes in the stock ownership of Sublessee,
                                                               which aggregates [%] or more of the capital stock of Sublessee shall be deemed to be an assignment of this Sublease.
                                                               Sublessee shall not mortgage, hypothecate or encumber this Sublease. Sublessor's consent to one assignment, subletting,
                                                               occupancy, or use by any other person, entity or entities shall not relieve Sublessee from any obligation under this Sublease
                                                               and shall not be deemed to be a consent to any subsequent assignment, subletting, occupancy or use. Any assignment, pledge, subletting, occupancy or use without Sublessor's
written consent shall be void and shall, at the option of the Sublessor, terminate this Sublease.

	 	 	 
	 	 	Should this Sublease be assigned, or should the Leased
Premises or any part thereof be sublet or occupied by any person or persons other than the original Sublessee hereunder, Sublessor
may collect rent from the assignee, sublessee or occupant and apply the net amount collected to the rent herein reserved, but no
such assignment, subletting, occupancy or collection of rent shall be deemed a consent to such assignment, subletting or occupancy
or a waiver of any term of this Sublease, nor shall it be deemed acceptance of the assignee, sublessee or occupant as a tenant,
or a release of Sublessee from the full performance by Sublessee of all the terms, provisions, conditions and covenants of this
Sublease.
	 	 	 

 

 

 

    	Sublease Agreement	 	10

     

    

 

	 	 	In the event Sublessee wishes to assign this Sublease
or sublet or allow the use of the Leased Premises or any part thereof, Sublessee shall give Sublessor not less than thirty (30)
days written notice thereof and shall, in such notice, provide the name of the proposed assignee or sublessee, its proposed use
of the Leased Premises, its background, such financial and credit information as Sublessor may require to determine the business
experience, financial stability and creditworthiness of the proposed assignee or sublessee, and such additional information as
Sublessor may request. Sublessee shall also pay Sublessor a one-time administrative fee equal to the rent to reimburse Sublessor
for its costs of reviewing, analyzing and processing the request for consent to assignment or subletting.
	 	 	 
	 	 	In addition to its right to consent or refuse to
consent to a proposed assignment Sublessor shall have the option, exercisable by written notice to Sublessee within the 30 days
after Sublessee gives Sublessor written notice of its desire to assign the Sublease, to terminate this Sublease with respect to
the entire Leased Premises upon a date specified in said notice to Sublessee not less than 30 days nor more than 25 days after
the date of said notice and retake the Leased Premises for its own use. If Sublessor exercises such option, Sublessee shall nonetheless
have the right, exercisable by notice given to Sublessor within 30 days after Sublessor's notice of exercise is given, to withdraw
the proposed assignment from consideration, in which event the exercise of Sublessor's option shall be of no force or effect and,
except for the payment of the fee provided for in Subsection (c) above, the assignment shall be deemed not to have been proposed.
If Sublessor does not elect to exercise its option to terminate this Lease and consents to the assignment or sublease, said assignee
or sublessee shall pay directly to Sublessor all rent or other consideration payable by the assignee or sublessee in excess of
the amount of rent or other consideration payable by Sublessee to Sublessor hereunder (whether denominated as rent or otherwise)
and shall expressly assume Sublessee's obligations hereunder.
	 	 	 
	 	 	As a condition to Sublessor's consent to an assignment or subletting, Sublessor shall be entitled to receive (i) in the case of a subletting, 100% of all rent (however denominated and
paid) payable by the subtenant to Sublessee in excess of that payable by Sublessee to Sublessor pursuant to the other provisions
of this Sublease, and (ii) in the case of an assignment, 100% of all consideration given, directly or indirectly, by the assignee
to Sublessee in connection with such assignment. For purposes of this paragraph, the term “rent” shall mean and include
all consideration paid or given, directly or indirectly, for the use of the Leased Premises or any portion thereof, and the term
“consideration” shall mean and include money, services, property or any other thing of value such as payment of costs,
cancellation of indebtedness, discounts, rebates and the like. Any rent or other consideration which is to be passed through to
Sublessor pursuant to this paragraph shall be paid to Sublessor promptly upon receipt by Sublessee and shall be paid in cash, regardless
of the form in which received by Sublessee. In the event any rent or other consideration received by Sublessee is in a form other
than cash, Sublessee shall pay to Sublessor in cash the fair value of Sublessor's portion of such consideration.

 

		b.	Events of Default: Sublessee's failure to timely pay any rent,
taxes or other charges required to be paid pursuant to the terms of this Sublease shall constitute a material breach of this Sublease
and an event of default if not paid by Sublessee within 3 days of the date such rent, taxes or charges are payable. Events of default
under this Sublease shall also include, without limitation, the events hereinafter set forth, each of which shall be deemed a material
default of the terms of the Sublease if not fully cured within 10 days of occurrence. Such events shall include:

 

		i.	Sublessee’s failure to perform or observe any term, provisions, covenant,
agreement or condition of this Sublease;

 

		ii.	Sublessee breaches this Sublease and abandons the Leased Premises before expiration of the Term
of this Sublease;

 

		iii.	Any representation or warranty made by Sublessee in connection with this Sublease between Sublessee
and Sublessor proving to have been incorrect in any respect;

 

 

 

 

    	Sublease Agreement	 	11

     

    

 

		iv.	Sublessee's institution of any proceedings under the Bankruptcy Act, as such Act now exists or under any similar act relating
to the subject of insolvency or bankruptcy, whether in such proceeding Sublessee seeks to be adjudicated a bankrupt, or to be discharged
of its debts or effect a plan of liquidation, composition or reorganization;

 

		v.	The filing against Sublessee of any involuntary proceeding under any such bankruptcy laws;

 

		vi.	Sublessee's becoming insolvent or being adjudicated a bankrupt in any court of competent jurisdiction,
or the appointment of a receiver or trustee of Sublessee's property, or Sublessee's making an assignment for the benefit of creditors;

 

		vii.	The issuance of a writ of attachment by any court of competent jurisdiction to be levied on this
Lease; or

 

		viii.	Any event which is an event of default under the Master Lease or which would become so with the
passage of time or the giving of notice or both.

 

		c.	Sublessor's Remedies for Sublessee's Default: Upon the occurrence
of any event of default described in Section 10.02 hereof, Sublessor may, at its option and without any further demand or notice,
in addition to any other remedy or right given hereunder or by law, do any of the following:

 

		i.	Sublessor may terminate Sublessee's
right to possession of the Leased Premises by giving written notice to Sublessee. If Sublessor gives such written notice, then
on the date specified in such notice, this Sublease and Sublessee's right of possession shall terminate. No act by Sublessor other
than giving such written notice to Sublessee shall terminate this Sublease. Acts of maintenance, efforts to relet the Leased Premises,
or the appointment of a receiver on Sublessor's initiative to protect Sublessor's interest under this Sublease shall not constitute
a termination of Sublessee's right to possession. On termination, Sublessor has the right to recover from Sublessee:

 

		1.	The worth at the time of the award of the unpaid rent and other charges that had been earned or
owed to Sublessor at the time of termination of this Sublease;

 

		2.	The worth at the time of the award of the amount by which (a) the unpaid rent and other charges that would have been earned
or owed to Sublessor after the date of termination of this Sublease until the time of award exceeds (b) the amount of such rental loss that Sublessee
proves could have been reasonably avoided;

 

		3.	The worth at the time of the award of the amount by which (a) the unpaid rent and other charges for the balance of the term
after the time of award exceeds (b) the amount of such rental loss that Sublessee proves could have been reasonably avoided; and

 

		4.	Any other amount necessary to compensate Sublessor for all the detriment caused by Sublessee's failure to perform its obligations
under this Sublease or which in the ordinary course of things would be likely to result therefrom, including without limitation
any costs or expenses incurred by Sublessor in recovering possession of the Leased Premises, maintaining or preserving the Leased
Premises after such default, preparing the Leased Premises for reletting to a new tenant, or any repairs or alterations to the
Leased Premises for such reletting, and all leasing commissions, reasonable attorney's fees, architect's fees and any other costs
incurred by Sublessor to relet the Leased Premises or to adapt them to another beneficial use. Sublessee shall also indemnify,
defend and hold Sublessor harmless from all claims, demands, actions, liabilities and expenses (including but not limited to reasonable
attorney's fees and costs) arising prior to the termination of this Sublease or arising out of Sublessee's use or occupancy of
the Leased Premises.

 

 

 

 

    	Sublease Agreement	 	12

     

    

 

		ii.	Sublessor may, in any lawful manner, re-enter and take possession of the Leased Premises without terminating this Sublease
or otherwise relieving Sublessee of any obligation hereunder. Sublessor is hereby authorized, but not obligated (except to the
extent required by law), to relet the Leased Premises or any part thereof on behalf of the Sublessee, to use the premises for its
or its affiliates' account, to incur such expenses as may be reasonably necessary to relet the Leased Premises, and relet the Leased
Premises for such term, upon such conditions and at such rental as Sublessor in its sole discretion may determine. Until the Leased
Premises are relet by Sublessor, if at all, Sublessee shall pay to Sublessor all amounts required to be paid by Sublessee hereunder.
If Sublessor relets the Leased Premises or any portion thereof, such reletting shall not relieve Sublessee of any obligation hereunder,
except that Sublessor shall apply the rent or other proceeds actually collected by it as a result of such reletting against any
amounts due from Sublessee hereunder to the extent that such rent or other proceeds compensate Sublessor for the non-performance
of any obligation of Sublessee hereunder. Such payments by Sublessee shall be due at such times as are provided elsewhere in this
Sublease, and Sublessor need not wait until the termination of this Sublease, by expiration of the term hereof or otherwise, to
recover them by legal action or in any other manner. Sublessor may execute any lease made pursuant hereto in its own name, and
the tenant thereunder shall be under no obligation to see to the application by Sublessor of any rent or other proceeds by Sublessor,
nor shall Sublessee have any right to collect any such rent or other proceeds. Sublessor shall not by any re-entry or other act
be deemed to have accepted any surrender by Sublessee of the Leased Premises or Sublessee's interest therein, or be deemed to have
otherwise terminated this Sublease, or to have relieved Sublessee of any obligation hereunder, unless Sublessor shall have given
Sublessee express written notice of Sublessor's election to do so as set forth herein.

 

		iii.	Even though Sublessee has breached this Sublease and may have abandoned or vacated the Leased
Premises, this Sublease shall continue in effect for so long as Sublessor does not terminate Sublessee's right to possession, and
Sublessor may enforce all its rights and remedies under this Sublease, including the right to recover the rent and other charges
as they become due under this Lease.

 

		iv.	In the event any personal property of Sublessee remains at the Leased Premises after Sublessee
has vacated, it shall be dealt with in accordance with the statutory procedures provided by applicable law dealing with the disposition
of personal property of Sublessee remaining on the Leased Premises after Sublessee has vacated.

 

		v.	Sublessor may exercise any right or remedy reserved to the Master Lessor under the Master Lease
(each of which rights and remedies are hereby incorporated herein), and any other remedy or right now or hereafter available to
a landlord against a defaulting tenant under applicable law or the equitable powers of its courts, whether or not otherwise specifically
reserved herein.

 

		vi.	Sublessor shall be under no obligation to observe or perform any provision, term, covenant, agreement
or condition of this Sublease on its part to be observed or performed which accrues after the date of any default by Sublessee
hereunder.

 

		vii.	Any legal action by Sublessor to enforce any obligation of Sublessee or in the pursuance of any
remedy hereunder shall be deemed timely filed if commenced at any time prior to 4 years after the expiration of the term hereof
or prior to 4 years after the cause of action accrues, whichever period expires later.

 

		viii.	In any action of unlawful detainer commenced by Sublessor against Sublessee by reason of any
default hereunder, the reasonable rental value of the Leased Premises for the period of the unlawful detainer shall be deemed to
be the amount of rent and additional charges reserved in this Sublease for such period.

 

 

 

 

    	Sublease Agreement	 	13

     

    

 

		ix.	Sublessee hereby waives any right of redemption or relief from forfeiture under any present or
future law, if Sublessee is evicted or Sublessor takes possession of the Leased Premises by reason of any default by Sublessee
hereunder.

 

		x.	No delay or omission of Sublessor to exercise any right or remedy shall
be construed as a waiver of any such right or remedy or of any default by Sublessee hereunder.

 

		d.	Receiver: Upon the occurrence of any event of default as defined in Article 16 b) hereof
or in any action instituted by Sublessor against Sublessee to take possession of the Leased Premises and/or to collect Base Minimum
Rent, or any other charge due hereunder, a receiver may be appointed at the request of Sublessor to collect such rents and profits,
to conduct the business of Sublessee then being carried on in the Leased Premises and to take possession of any property belonging
to Sublessee and used in the conduct of such business and use the same in conducting such business on the Leased Premises without
compensation to Sublessee for such use. Neither the application nor the appointment of such receiver shall be construed as an election
on the Sublessor’s part to terminate this Sublease unless written notice of such intention is given by Sublessor to Sublessee.

 

		e.	Attorneys' Fees: If as a result of any breach or default in the performance of any of
the provisions of this Sublease, Sublessor uses the services of an attorney in order to secure compliance with such provisions
or recover damages therefor, or to terminate this Sublease or evict Sublessee, Sublessee shall reimburse Sublessor upon demand
for any and all attorneys' fees and expenses so incurred by Sublessor, including without the limitation appraisers' and expert
witness fees; provided that if Sublessee shall be the prevailing party in any legal action brought by Sublessor against Sublessee,
Sublessee shall be entitled to recover the fees of its attorneys in such amount as the court may adjudge reasonable. Sublessee
shall advance to Sublessor any and all attorneys' fees and expenses to be incurred or incurred by Sublessor in connection with
any modifications to this Sublease proposed by Sublessee, any proposed assignment of this Sublease
by Sublessee or any proposed subletting of the Leased Premises by Sublessee.

 

		f.	Cumulative Remedies; No Waiver: The specified remedies to which
Sublessor may resort under the terms hereof are cumulative and are not intended to be exclusive of any other remedy or means of
redress to which Sublessor may be lawfully entitled in case of any breach or threatened breach by Sublessee of any provision hereof.
If for any reason Sublessor fails or neglects to take advantage of any of the terms of this Sublease providing for termination
or other remedy, any such failure of Sublessor shall not be deemed to be a waiver of any default of any of the provisions, terms,
covenants, agreements or conditions of this Sublease. The waiver by Sublessor of any breach of any term, condition or covenant
herein contained shall not be deemed to be a waiver of any subsequent breach of the same or any other term, condition or covenant
herein contained. None of the provisions, terms, covenants, agreements or conditions hereof can be waived except by the express
written consent of Sublessor. Subsequent acceptance of rent hereunder by Sublessor shall not be deemed to be a waiver of any preceding
breach by Sublessee of any provision, term, covenant, agreement or condition of this Sublease other than the failure of Sublessee
to pay the particular rental accepted, regardless of Sublessor’s knowledge of such preceding breach at the time of acceptance
of such rent.

 

17.      ESTOPPEL

 

At any time and from time to time, upon request in writing from
Sublessor, Sublessee agrees to execute, acknowledge, and deliver to Sublessor a statement in writing within [NUMBER] days of request,
certifying that this Sublease is unmodified and in full force and effect (or, if there have been modifications, stating the modifications),
the commencement and termination dates, the Base Minimum Rent, the other charges payable hereunder the dates to which the same
have been paid, and such other items as Sublessor may reasonably request. It is understood and agreed that any such statement may
be relied upon by any mortgagee, beneficiary, or grantee of any security or other interest, or any assignee of any thereof, under
any mortgage or deed of trust now or hereafter made covering any leasehold interest in the Leased Premises, and any prospective
purchaser of the Leased Premises.

 

 

 

    	Sublease Agreement	 	14

     

    

 

18.       FORCE MAJEURE – UNAVOIDABLE
DELAYS

 

Should the performance of any act required by this
Sublease to be performed by either Sublessor or Sublessee be prevented or delayed by reason of an act of God, war, civil commotion,
fire, flood, or other like casualty, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws
or regulations, unusually severe weather, or any other cause, except financial inability, not the fault of the party required to
perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay and performance
of the act during the period of delay will be excused; provided, however, that nothing contained in this section shall excuse the
prompt payment of rent or other monies due by Sublessee as required by this Sublease or the performance of any act rendered difficult
solely because of the financial condition of the party, Sublessor or Sublessee, required to perform the act.

 

19.       NOTICES

 

Except as otherwise expressly provided by law, any
and all notices or other communications required or permitted by this Sublease or by law to be served on or given to either party
hereto by the other party hereto shall be in writing and shall be deemed duly served and given when personally delivered to the
party, Sublessor or Sublessee, to whom it is directed or any managing employee of such party, or, in lieu of such personal service,
48 hours after deposit in the United States mail, certified or registered mail, with postage prepaid, or when transmitted by telecopy
or facsimile addressed to the parties as set forth on the signature page hereof. Either party, Sublessor or Sublessee, may change
the addresses herein contained for purposes of this Section by giving written notice of the change to the other party in the manner
provided in this Section.

 

20.       AMENDMENTS

 

No amendment, change or modification of this Sublease
shall be valid and binding unless such is contained in a written instrument executed by the parties hereto and which instrument
expresses the specific intention of the parties to amend, change or modify this Sublease.

 

21.       ACCORD AND SATISFACTION

 

No payment by Sublessee or receipt by Sublessor of
a lesser amount than the monthly rent herein stipulated shall be deemed to be other than on account of the stipulated rent earliest
in time, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed
an accord and satisfaction and Sublessor may accept such check or payment without prejudice to Sublessor's right to recover the
balance of such rent or pursue any other remedy provided in this Sublease or by law.

 

22.       NO AGENCY CREATED

 

Nothing contained in this Sublease shall be deemed
or construed by the parties hereto or by any third party to create the relationship of principal and agent, or of partnership,
or of joint venture, or of any association whatsoever between Sublessor and Sublessee other than sublessor and sublessee.

 

23.       BROKERAGE COMMISSION

 

Sublessee represents that neither it nor any of its affiliates
has engaged the services of any real estate broker, finder, or any other person or entity in connection with this lease transaction
and therefore should Sublessee be found to be in violation of such representation, Sublessee shall indemnify Sublessor against
any and all claims for brokerage commissions or finders fees in connection with this transaction, and to indemnify, defend and
hold Sublessor free and harmless from all liabilities arising from any such claim, including without limitation, attorneys’
fees in connection therewith.

 

 

 

 

    	Sublease Agreement	 	15

     

    

 

24.       SOLE AND ONLY AGREEMENT

 

This instrument constitutes the sole and only agreement between
Sublessor and Sublessee respecting the Leased Premises or the leasing of the Leased Premises to Sublessee. Sublessor shall have
no obligations to Sublessee, whether express or implied, other than those specifically set forth in this Sublease.

 

25.       SEVERABILITY AND GOVERNING LAW

 

This Sublease shall be governed by the laws of the
State of California. Whenever possible each provision of this Sublease shall be interpreted in such a manner as to be effective
and valid under applicable law, but if any provision of this Sublease shall be prohibited, void, invalid, or unenforceable under
applicable law, such provision shall be ineffective to the extent of such prohibition, invalidity, voidability, or enforceability
without invalidating the remainder of such, or the remaining provisions of this Sublease.

 

26.        CONSTRUCTION AND HEADINGS

 

All references herein in the singular shall be construed
to include the plural, and the masculine, and the masculine to include the feminine or neuter gender, where applicable, and where
the context shall require. Section headings are for convenience of reference only and shall not be construed as part of this Sublease
nor shall they limit or define the meaning of any provision herein. The provisions of this Sublease shall be construed as to their
fair meaning, and not strictly for or against Sublessor or Sublessee.

 

27.        EFFECT OF EXECUTION

 

The submission of this Sublease for examination shall
not effect any obligation on the part of the submitting or examining party and this Sublease shall become effective only upon the
complete execution thereof by both Sublessor and Sublessee.

 

28.        INUREMENT

 

Sublessor shall have the full and unencumbered right
to assign this Sublease. The covenants, agreements, restrictions, and limitations contained herein shall also be binding on Sublessee's
permitted successors and assigns.

 

TIME OF ESSENCE

 

Time is expressly declared to be of the essence.

 

29.        NO
LIGHT, AIR OR VIEW EASEMENT

 

Any diminution or shutting off of light, air or view
by any structure which may be erected on lands adjacent to the Leased Premises shall in no way affect this Sublease or impose any
liability on Sublessor.

 

30.        TRIPLE NET LEASE

 

It is the purpose and intent of Sublessor and Sublessee
that this Sublease be deemed and construed to be a “triple net lease” so that Sublessor shall receive all rentals and
other sums specified hereunder during the term of this Sublease, free from any and all charges, costs, assessments, expenses, deductions
and/or set-offs of any kind or nature whatsoever, and Sublessor shall not be expected or required to pay any such charge, assessment
or expense, or be under any obligation or liability hereunder, except as herein expressly set forth. All charges, costs, expenses
and obligations of any nature relating to the repair, restoration, alteration, maintenance and operation of the Leased Premises
shall be paid by Sublessee, except as otherwise herein expressly set forth, and Sublessor shall be indemnified and held harmless
by Sublessee from and against such charges, costs, expenses and obligations.

 

 

 

 

    	Sublease Agreement	 	16

     

    

 

31.        AUTHORITY

 

Each individual executing this Sublease on behalf
of Sublessee and the Sublessee (if Sublessee is a corporation or other entity) does hereby covenant and warrant that (i) Sublessee
is a duly authorized and validly existing entity, (ii) Sublessee has and is qualified to do business in California, (iii) the
entity has full right and authority to enter into this Sublease, and (iv) each person executing this Sublease on behalf of the
entity was authorized to do so.

 

32.        SURVIVAL

 

All obligations of Sublessee under this Sublease,
including without limitation the obligations to pay Base Minimum Rent, shall survive the expiration or termination of this Sublease.

 

33.        WAIVER

 

Sublessee hereby waives any rights it may have under
the provisions of [LAW OR CODE], if applicable, and any similar statutes regarding repair of the Leased Premises or termination
of this Sublease after destruction of all or any part of the Leased Premises.

 

34.        RECORDATION

 

Sublessee shall not record this Sublease or a short
form memorandum hereof without the prior written consent of the Sublessor.

 

35.        TRANSFER OF MASTER LEASE

 

In the event of any assignment or transfer of the Master Lease
by Sublessor to any other party or entity, Sublessor shall be and is hereby entirely freed and relieved of all liability under
any and all of its covenants and obligations contained in or derived from this Sublease arising out of any act, occurrence or omission
occurring after the consummation of such assignment or transfer; and the assignee or such transferee shall be deemed, without any
further agreement between parties or their successors in interest or between the parties and any such assignee or transferee, to
have assumed and agreed to carry out any and all of the covenants and obligations of the Sublessor under this Sublease. Sublessee
hereby agrees to attorn to any such assignee or trustee. Sublessee agrees to execute any and all documents deemed necessary or
appropriate by Sublessor to evidence the foregoing.

 

36.        SUBORDINATION, ATTORNMENT

 

Without the necessity of any additional document
being executed by Sublessee for the purpose of effecting a subordination, this Sublease shall in all respects be subject and subordinate
at all times to the lien of any mortgage or deed of trust which may now exist or hereafter be executed in any amount for which
the Leased Premises or Sublessor's interest or estate is specified as security. Notwithstanding the foregoing, Sublessor shall
have the right to subordinate or cause to be subordinated any lien or encumbrance to this Sublease. In the event that any mortgage
or deed of trust is foreclosed or a conveyance in lieu of foreclosure is made for any reason, Sublessee shall, notwithstanding
any subordination, attorn to and become the sublessee of the successor in interest to Sublessor, at the option of such successor
in interest. Sublessee covenants and agrees to execute and deliver, upon demand by Sublessor and in the form requested by Sublessor,
any additional documents evidencing the priority or subordination of this Sublease.

 

37.        NO MERGER

 

The voluntary or other surrender of this Sublease by Sublessee,
or a mutual cancellation hereof, shall not work a merger, and shall, at the option of Sublessor, terminate all or any existing
subleases or subtenancies or may, at the option of Sublessor, operate as an assignment to Sublessor of any or all such subleases
or subtenancies.

 

 

 

 

    	Sublease Agreement	 	17

     

    

 

38.        RIGHT OF SUBLESSOR TO PERFORM

 

All terms, covenants and conditions of this Sublease to be performed
or observed by Sublessee shall be performed or observed by Sublessee at its sole cost and expense and without any reduction of
rent of any nature payable hereunder. If Sublessee shall fail to pay any sum of money, other than rent required to be paid by it
hereunder or shall fail to perform any other term or covenant hereunder on its part to be performed, Sublessor, without waiving
or releasing Sublessee from any obligation of Sublessee hereunder, may, but shall not be obligated to, make any such payment or
perform any such other term or covenant on Sublessee's part to be performed. All sums so paid by Sublessor and all necessary costs
of such performance by Sublessor, together with interest thereon from the date of payment at the rate eighteen percent (18%) or
the highest rate permissible by law, whichever is less, shall be paid, and Sublessee covenants to make such payment, to Sublessor
on demand, and Sublessor shall have, in addition to any over right or remedy of Sublessor, the same rights and remedies in the
event of nonpayment thereof by Sublessee as in the case of failure in the payment of rent hereunder.

 

39.        MODIFICATION FOR LENDER

 

If, in connection with obtaining any type of financing,
Sublessor’s lender shall request reasonable modifications to this Sublease as a condition to such financing, Sublessee shall
not unreasonably withhold, delay or defer its consent thereto, provided such modifications do not materially adversely affect Sublessee's
rights hereunder.

 

40.        SUBLESSOR’S PERSONAL LIABILITY

 

The liability of Sublessor to Sublessee for any default
by Sublessor under the terms of this Sublease shall be limited to the interest of Sublessor in the Leased Premises and Sublessee
agrees to look solely to Sublessor's interest in the Leased Premises for the recovery of any judgment from Sublessor, it being
intended that Sublessor shall not be personally liable for any judgment or deficiency.

 

41.        BREACH BY LANDLORD

 

Sublessor shall not be deemed to be in breach in the performance
of any obligation required to be performed by it hereunder unless and until it has failed to perform such obligation within 5 days
after written notice by Sublessee to Sublessor specifying wherein Sublessor has failed to perform such obligation; provided, however,
that if the nature of Sublessor's obligation is such that more than 5 days are required for its performance then Sublessor shall
not be deemed to be in breech if it shall commence such performance within such 5 day period and thereafter diligently prosecute
the same to completion. In any event, Sublessee must bring an action for breach of this Sublease within 2 years of Sublessor’s
breach or be deemed to have waived the breach and not harmed thereby.

 

42.        SURVIVAL OF INDEMNITIES

 

The obligations of the indemnifying party under each and every
indemnification and hold harmless provision contained in this Sublease shall survive the expiration or earlier termination of
this Sublease to and until the last to occur of (a) the last date permitted by law for bringing of any claim or action with respect
to which indemnification may be claimed by the indemnified party against the indemnifying party under such provision or (b) the
date on which any claim or action for which indemnification may be claimed under such provision is fully and finally resolved
and, if applicable, any compromise thereof or judgment or award thereon is paid in full by the indemnifying party and the indemnified
party is reimbursed by the indemnifying party for any amounts paid by the indemnified party in compromise thereof or upon a judgment
or award thereon and in defense of such action or claim, including attorneys’ fees incurred.

 

 

 

 

    	Sublease Agreement	 	18

     

    

 

43.        OPTION TO RENEW

 

Subject to the receipt by lessee of an extension
of the original lease agreement for a sufficient duration to include this renewal, at any time before the commencement of the last
calendar month of the first term of this sublease agreement, sublessee is granted the option and privilege of extending and renewing
the term of this sublease agreement for an additional [NUMBER]-year period at an annual rental to be agreed on or arbitrated as
provided in this sublease agreement.

 

44.        MEANING OF CONSENT

 

Whenever an act or provision contained in this Sublease
is conditioned upon the consent or approval of Sublessor, this shall be interpreted to mean, unless otherwise specified to the
contrary, that the Sublessor has the full unconditional right and sole discretion as to whether or not to give its consent, which
may only be given in writing.

 

45.        QUIET ENJOYMENT

 

If sublessee performs the terms of this sublease agreement,
lessee will warrant and defend sublessee in the enjoyment and peaceful possession of the demised premises during the term of this
sublease agreement without any interruption by lessee or lessor or either of them or any person rightfully claiming under either
of them.

 

46.        MASTER LEASE

 

Notwithstanding anything in this Sublease to the contrary, the
rights of Sublessee shall be subject to the terms and conditions contained in the lease (“Master Lease”) between Sublessor
and the owner of the Leased Premises (the “Master Lessor"), as it may be amended from time to time. Sublessee shall
assume and perform and comply with the obligations of the lessee under the Master Lease to the same extent as if references to
the Sublessor therein were references to Sublessee (all of which obligations are hereby incorporated herein), including, without
limitation, the payment of any and all costs, expenses, charges, fees, taxes, payments or other monetary obligations (except for
minimum rent and percentage rent) for which Sublessor is liable or responsible under the Master Lease, as such costs, expenses,
charges, fees, taxes, payment or other monetary obligations come due. Sublessee shall not commit or permit to be committed on the
Leased Premises any act or omission which shall violate any term or condition of the Master Lease. Notwithstanding anything in
this Sublease to the contrary, the effectiveness of this Sublease shall be conditioned upon Sublessor obtaining the written consent
of the Master Lessor (if such consent is required under the Master Lease), in form and substance satisfactory to Sublessor, within
ten (10) days of the date hereof. If the Master Lease terminates for any reason, this Sublease shall terminate coincidentally therewith
without any liability of Sublessor to Sublessee.

 

 

 

 

 

 

 

 

 

 

 

    	 	19	 

     

    

 

IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first above written.

 

	SUBLESSOR	 	SUBLESSEE
	 	 	 
	 	 	 
	Authorized Signature	 	Authorized Signature
	 	 	 
	 	 	 
	Print Name and Title	 	Print Name and Title
	 	 	 
	 	 	 
	 	 	 
	Sublease Agreement	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	Sublease Agreement	 	20

     

    

 

EXHIBIT A

TO SUBLEASE 

DESCRIPTION OF LEASED PREMISES

 

LOCATION: 2399 BATEMAN AVENUE – IRWINDALE, CA 91010

 

APPROXIMATELY 48,867 SQUARE FOOT FREE-STANDING INDUSTRIAL
BUILDING (INCLUDING OFFICE SPACES) SITUATED UPON 2.26 ACRES OF INDUSTRIAL ZONED LAND.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	Sublease Agreement	 	21

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