Document:

The Registrant's 2021 Share Incentive Plan

 Exhibit 4.5 

MELCO RESORTS & ENTERTAINMENT LIMITED 

2021 SHARE INCENTIVE PLAN 

ARTICLE 1 
 PURPOSE

 The purpose of the Melco Resorts & Entertainment Limited 2021 Share Incentive Plan, as amended from time to time (the
“Plan”), is to promote the success and enhance the value of Melco Resorts & Entertainment Limited, an exempted company formed under the laws of the Cayman Islands (the “Company”), by linking the personal
interests of the members of the Board, Employees, and Consultants to those of the Company’s shareholders and by providing such individuals with an incentive for outstanding performance to generate superior returns to the Company’s
shareholders. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of members of the Board, Employees, and Consultants upon whose judgment, interest, and special effort the
successful conduct of the Company’s operation is largely dependent. 
 ARTICLE 2 

DEFINITIONS AND CONSTRUCTION 
 Wherever
the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun shall include the plural where the context so indicates. 

 

	2.1	 “2006 Share Incentive Plan” means the Company’s Share Incentive Plan, as revised and
adopted by its Board on November 28, 2006 and March 17, 2009 and as approved by its shareholders on December 1, 2006 and May 19, 2009. 

  

	2.2	 “2011 Share Incentive Plan” means the Company’s Share Incentive Plan, as adopted and
revised by its Board on September 2, 2011, January 2, 2015 and November 2, 2016 and as approved by its shareholders on October 6, 2011, May 20, 2015 and December 7, 2016. 

 

	2.3	 “Administrator” means one or more third party(ies) as may be appointed by the Company to
assist in the administration of the Plan under paragraph 12.7. 

  

	2.4	 “Applicable Laws” means the legal requirements relating to the Plan and the Awards under
applicable provisions of the corporate, securities, tax and other laws, rules, regulations and government orders, and the rules of any applicable share exchange or national market system, of any jurisdiction applicable to the Plan and/or Awards
granted to residents of any such jurisdiction. 

  

	2.5	 “Award” means an Option, a Restricted Share award, a Share Appreciation Right award, a
Dividend Equivalents award, a Share Payment award, a Deferred Share award, or a Restricted Share Unit award granted to a Participant pursuant to the Plan. 

  

	2.6	 “Award Agreement” means any written agreement, contract, or other instrument or document
evidencing an Award, including through electronic medium. 

  

	2.7	 “Board” means the board of directors of the Company. 

 

	2.8	 “Change in Control” means a change in ownership or control of the Company effected through
either of the following transactions or series of related transactions: 

  

	 	(a)	 the direct or indirect acquisition by any person or related group of persons (other than an acquisition by the
Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act as defined below, hereafter “Beneficial Ownership”) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s
outstanding securities, however acquired;

      

     
      

     
      

     
      

     
      

     
      

     
 LR17.03(1)

 

  
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	 	(b)	 the consummation of a sale, lease, exclusive license or other disposition of all or substantially all of the
consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an entity, more than 50% of the combined
voting power of the voting securities of which are owned by shareholders of the Company in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or
other disposition; or the individuals who, as of the Effective Date, are members of the Board (the “Incumbent Board”), cease for any reason to constitute at least fifty percent (50%) of the Board; provided, that if the election, or
nomination for election by the Company’s shareholders, of any new member of the Board is approved by a vote of at least fifty percent (50%) of the Incumbent Board, such new member of the Board shall be considered as a member of the Incumbent
Board. 

 Notwithstanding the foregoing definition or any other provision of this Plan, (A) the term Change in Control
will not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company, and (B) the definition of Change in Control (or any analogous term) in an individual written agreement
between the Company or any Affiliate and the Participant will supersede the foregoing definition with respect to Awards subject to such agreement; provided, however, that if no definition of Change in Control or any analogous term is set forth in
such an individual written agreement, the foregoing definition will apply. 
 In addition, notwithstanding the foregoing, to the extent that
an Award constitutes “nonqualified deferred compensation” that is subject to Section 409A of the Code and the payment or settlement of the Award will accelerate upon a Change in Control, no event set forth herein will constitute a
Change in Control for purposes of the Plan or any Award Agreement unless such event also constitutes a “change in ownership”, “change in effective control”, or “change in the ownership of a substantial portion of the
Company’s assets” as defined under Section 409A of the Code. The Committee may, in its sole discretion and without a Participant’s consent, amend the definition of “Change in Control” to conform to the definition of
“Change in Control” under Section 409A of the Code, and the regulations thereunder. 
  

	2.9	 “Code” means the Internal Revenue Code of 1986 of the United States, as amended and the
regulations and guidance promulgated thereunder. 

  

	2.10	 “Committee” means the Compensation Committee of the Board, or another committee or
subcommittee of the Board which is appointed as provided in Article 12. 

  

	2.11	 “Consultant” means any consultant or adviser if: (a) the consultant or adviser renders
bona fide services to a Service Recipient; (b) the services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain
a market for the Company’s securities; and (c) the consultant or adviser is a natural person who has contracted directly with the Service Recipient to render such services. 

 

	2.12	 “Deferred Share” means a right to receive a specified number of Shares during specified time
periods pursuant to Article 9. 

  

	2.13	 “Director” means a director of the Board. 

 

	2.14	 “Disability” means that the Participant qualifies to receive long-term disability payments
under the Service Recipient’s long-term disability insurance program, as it may be amended from time to time, to which the Participant provides services regardless of whether the Participant is covered by such policy. If the Service Recipient
to which the Participant provides service does not have a long-term disability plan in place, “Disability” means that a Participant is unable to carry out the responsibilities and functions of the position held by the Participant by reason
of any medically determinable physical or mental impairment for a period of not less than ninety (90) consecutive days. A Participant will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment
sufficient to satisfy the Committee in its discretion. 

  

	2.15	 “Dividend Equivalents” means a right granted to a Participant pursuant to Article 9 to receive
the equivalent value (in cash or Share) of dividends paid on Share. 

  

	2.16	 “Effective Date” shall have the meaning set forth in paragraph 13.1. 

 

	2.17	 “Employee” means any person, including an officer or member of the board of the Company, any
Parent or Subsidiary of the Company, who is in the employ of a Service Recipient, subject to the control and direction of the Service Recipient as to both the work to be performed and the manner and method of performance. The payment of a
director’s fee by a Service Recipient shall not be sufficient to constitute “employment” by the Service Recipient.

     

 

  
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	2.18	 “Exchange Act” means the Securities Exchange Act of 1934 of the United States, as amended and
the rules and regulations promulgated thereunder. 

  

	2.19	 “Exercise Price” means the purchase price per Share of an exercisable Award.

  

	2.20	 “Fair Market Value” means, as of any date, the value of Shares determined as follows:

  

	 	(a)	 If the Shares are listed on one or more established Share exchanges or national market systems, including
without limitation, the NASDAQ Global Select or NASDAQ Global Market, its Fair Market Value shall be the closing sales price for such shares (or the closing bid, if no sales were reported) as quoted on such exchange or system with the greatest
source of trading volume (as determined by the Committee) on the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was
reported), as reported in a source the Committee deems reliable; or 

  

	 	(b)	 If the Shares are regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a
recognized securities dealer, its Fair Market Value shall be the closing sales price for such shares as quoted on such system or by such securities dealer on the date of determination, but if selling prices are not reported, the Fair Market Value of
a Share shall be the mean between the high bid and low asked prices for the Shares on the date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported by the quotation system or
recognized securities dealer or another source as the Committee deems reliable. 

 In the absence of an established market
for the Shares of the type described in (a) and (b), above, the Fair Market Value thereof shall be determined by the Committee in good faith by reference to the placing price of the latest private placement of the Shares and the development of
the Company’s business operations and the general economic and market conditions since such latest private placement and, if applicable, in a manner that complies with Sections 409A and 422 of the US Internal Revenue Code. 

 

	2.21	 “HKSE” means The Stock Exchange of Hong Kong Limited. 

 

	2.22	 “HKSE Listing Rules” means the Rules Governing the Listing of Securities on the HKSE, as may
be amended or supplemented from time to time. 

  

	2.23	 “HKLR Regulated Entity” means an entity required to comply with the HKSE Listing Rules as a
company either listed on the HKSE or considered to be a subsidiary of a HKSE-listed company according to the HKSE Listing Rules. 

  

	2.24	 “Hong Kong” means the Hong Kong Special Administrative Region of the PRC.

  

	2.25	 “Incentive Share Option” means an incentive share option as described in paragraph 6.2.

  

	2.26	 “Macau” means the Macau Special Administrative Region of the PRC. 

 

	2.27	 “MIDL” means Melco International Development Limited, a company listed on the HKSE.

  

	2.28	 “New Option Limit” shall have the meaning set forth in paragraph 10.2. 

 

	2.29	 “New Approval Date” shall have the meaning set forth in paragraph 10.2. 

 

	2.30	 “Non-Employee Director” shall mean a Director of the
Company who is not an Employee. 

  

	2.31	 “Non-Qualified Share Option” means an Option that is
not intended to be an Incentive Share Option. 

  

	2.32	 “Option” means a right granted to a Participant pursuant to Article 6 to purchase a specified
number of Shares at a specified price during specified time periods. An Option may be either an Incentive Share Option or a Non-Qualified Share Option.

     

 

  
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	2.33	 “Option Limit” means the limit defined in paragraph 4.1(a)(ii). 

 

	2.34	 “Participant” means a person who, as a member of the Board, Consultant or Employee, has been
granted an Award pursuant to the Plan. 

  

	2.35	 “Parent” means: (a) a person holding either more than 50% voting power of another company
or 50% or less voting power in such company but the person has the powers to govern the key policies of the other company or control the appointment and decision of the board/governing body of the other company, directly or indirectly through one or
more of its intermediaries, or (b) MIDL or any Subsidiary thereof, and in relation to the parties referred to in (b), any of their permitted transferees, successors, assigns or substitutes to whom any of those parties’ rights and
obligations in so far as they relate to the Company, are effectively transferred, novated or assigned. 

  

	2.36	 “Plan” means this Share Incentive Plan of the Company adopted in 2021, as it may be further
amended from time to time. 

  

	2.37	 “Plan Limit” means the limit defined in paragraph 4.1(a)(i). 

 

	2.38	 “PRC” means the People’s Republic of China, other than Hong Kong, Macau and Taiwan.

  

	2.39	 “Related Entity” means any business, corporation, partnership, limited liability company or
other entity in which the Company, or a Parent or Subsidiary of the Company, possesses, directly or indirectly through one or more intermediaries, the power to direct or cause the direction of the management or polices of such entity, whether
through the ownership of voting securities, by contract, or otherwise, but which is not a Subsidiary and which the Committee designates as a Related Entity for purposes of the Plan. 

 

	2.40	 “Restricted Share” means a Share awarded to a Participant pursuant to Article 7 that is
subject to certain restrictions and may be subject to risk of forfeiture. 

  

	2.41	 “Restricted Share Unit” means an Award granted pursuant to paragraph 9.4.

  

	2.42	 “Securities Act” means the Securities Act of 1933 of the United States, as amended and the
rules and regulations promulgated thereunder. 

  

	2.43	 “Separation From Service” means a “separation from service” as defined in
Section 409A(a)(2)(A)(i) of the Code and determined in accordance with the default provisions under Section 409A of the Code. 

  

	2.44	 “Service Recipient” means the Company, any Parent or Subsidiary of the Company and any Related
Entity to which a Participant provides services as an Employee, Consultant or as a director. 

  

	2.45	 “Share” means the ordinary share capital of the Company, par value US$0.01 per share, and such
other securities of the Company that may be substituted for Shares pursuant to Article 11. 

  

	2.46	 “Share Appreciation Right” or “SAR” means a right granted pursuant to Article
8 to receive a payment calculated pursuant to such Article. 

  

	2.47	 “Share Payment” means (a) a payment in the form of Shares, or (b) an option or other
right to purchase Shares, as part of any bonus, deferred compensation or other arrangement, made in lieu of all or any portion of the compensation, granted pursuant to Article 9. 

 

	2.48	 “Specified Employee” means a “specified employee” within the meaning of
Section 409A(a)(2)(B)(i) of the Code, determined under the uniform methodology and procedures adopted by the Company for purposes of identifying Specified Employees of the Company. 

 

	2.49	 “Subsidiary” means any corporation or other entity of which a majority of the outstanding
voting shares or voting power is beneficially owned directly or indirectly by the Company. For the purposes of determining eligibility for the grant of Incentive Share Options under the Plan, the term “Subsidiary” shall be defined in the
manner required by Section 424(f) of the Code. 

  

	2.50	 “Tax Parent” means a parent corporation under Section 424(e) of the Code.

     

 

  
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	2.51	 “Termination of Service” shall mean: 

 

	 	(a)	 As to a Consultant, the time when the engagement of a Participant as a Consultant to a Service Recipient is
terminated for any reason, with or without cause, including, without limitation, by resignation, discharge, death or retirement, but excluding terminations where the Consultant simultaneously commences or remains in employment or service with the
Company, any Subsidiary or any Related Entity. 

  

	 	(b)	 As to a Non-Employee Director, the time when a Participant who is a Non-Employee Director ceases to be a Director for any reason, including, without limitation, a termination by resignation, failure to be elected, death or retirement, but excluding terminations where the Participant
simultaneously commences or remains in employment or service with the Company, any Subsidiary or any Related Entity. 

  

	 	(c)	 As to an Employee, the time when the employee-employer relationship between a Participant and the Service
Recipient is terminated for any reason, including, without limitation, a termination by resignation, discharge, death, disability or retirement; but excluding terminations where the Participant simultaneously commences or remains in employment or
service with the Company, any Subsidiary or any Related Entity. 

 The Committee, in its sole discretion, shall determine
the effect of all matters and questions relating to Terminations of Service, including, without limitation, the question of whether a Termination of Service resulted from a discharge for cause and all questions of whether particular leaves of
absence constitute a Termination of Service; provided, however, that, with respect to Incentive Share Options, unless the Committee otherwise provides in the terms of the Award Agreement or otherwise, a leave of absence, change in
status from an employee to an independent contractor or other change in the employee-employer relationship shall constitute a Termination of Service only if, and to the extent that, such leave of absence, change in status or other change interrupts
employment for the purposes of Section 422(a)(2) of the Code and the then applicable regulations and revenue rulings under said Section. For purposes of the Plan, a Participant’s employee-employer relationship or consultancy relations
shall be deemed to be terminated in the event that the Subsidiary or Related Entity employing or contracting with such Participant ceases to remain a Subsidiary or Related Entity following any merger, sale of securities or other corporate
transaction or event (including, without limitation, a spin-off). 
  

	2.52	 “Trading Date” means the first day on which Shares are publicly traded on an exchange or
national market system or other quotation system. 

  

	2.53	 “Trustee” means one or more trustee(s) as may be appointed by the Company under paragraph 12.7
to serve as trustee(s) in respect of the Plan. 

 ARTICLE 3 

AWARDS GRANTED UNDER PRECEDING SHARE INCENTIVE PLANS 
  

	3.1	 Validity. All Awards granted under the Plan shall be governed by the terms of the Plan.

  

	3.2	 Prior Awards. All Awards previously granted under, as applicable, the 2006 Share Incentive Plan and/or
the 2011 Share Incentive Plan shall remain outstanding and be governed by the terms of such respective plan. 

  

	3.3	 No Additional Awards. No additional Awards may be granted under the 2006 Share Incentive Plan or the
2011 Share Incentive Plan. This Plan shall succeed the 2011 Share Incentive Plan, and Awards granted after the Effective Date shall be subject to the terms set out herein.

     

 

  
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 ARTICLE 4 

SHARES SUBJECT TO THE PLAN 
  

	4.1	 Number of Shares. 

 

	 	(a)	 Subject to the provisions of Articles 10 and 11 and paragraph 4.1(c): 

 

	 	(i)	 the maximum aggregate number of Shares which may be issued pursuant to all Awards under the Plan is 145,654,794
Shares (the “Plan Limit”); and 

  

	 	(ii)	 the maximum aggregate number of Shares which may be issued upon exercise of Options to be granted under the
Plan is 145,654,794 Shares (the “Option Limit”), being 10% of the Shares in issue as at the date of approval of the Plan. 

  

	 	(b)	 If the Committee determines to offer Options to an eligible Participant which exceed the limit of one percent
(1%) of Shares in issue within a 12-month period up to the date of grant, then (i) that grant shall be subject to (x) the issue of a circular by the Company’s HKSE-listed Parent to its
shareholders which shall comply with Rules 17.03(4) and 17.06 of the HKSE Listing Rules and such other requirements as prescribed under the HKSE Listing Rules, any Applicable Law or any exchange rule from time to time; and (y) the approval of
the shareholders of the Company’s HKSE-listed Parent in a general meeting at which that eligible Participant and his close associates (as defined in the HKSE Listing Rules) (or his associates (as defined in the HKSE Listing Rules) if the
eligible Participant is a connected person of the Company’s HKSE-listed Parent) shall abstain from voting; and (ii) unless provided otherwise in the HKSE Listing Rules, any Applicable Law or any exchange rule, the date of the Committee
meeting at which the Committee resolves to grant the proposed Options to that eligible Participant shall be taken as the date of grant for the purpose of calculating the Exercise Price to be set forth in the said circular. If the Shares are listed
on HKSE, the foregoing requirements shall also apply, mutatis mutandis, in respect of the Company as if references therein to the Company’s HKSE-listed Parent were references to the Company. 

 

	 	(c)	 To the extent that an Award terminates, expires, or lapses for any reason, any Shares subject to the Award that
are unissued, or issued to the depositary bank of the Company for the purposes of administering this Plan, shall again be available for the grant of an Award pursuant to the Plan, except that for an Award which is an Option, such availability does
not apply if the Company is a HKLR Regulated Entity. 

  

	 	(d)	 To the extent not prohibited by Applicable Law or any exchange rule, (i) Shares issued in assumption of,
or in substitution for, any outstanding awards of any entity acquired in any form or combination by the Company or any Parent or Subsidiary of the Company shall not be counted against Shares available for grant pursuant to the Plan, (ii) Shares
delivered by the Participant or withheld by the Company upon the exercise of any Award under the Plan, in payment of the exercise price or purchase price thereof or tax withholding thereon, may again be optioned, granted or awarded hereunder,
subject to the limitations of paragraph 4.1(a), (iii) if any Restricted Shares are forfeited by the Participant or repurchased by the Company, such Shares may again be optioned, granted or awarded hereunder, subject to the limitations of paragraph
4.1(a) and (iv) if Awards are settled in cash and not in Shares, the Shares subject to such Award may again be optioned, granted or awarded hereunder, subject to the limitations of paragraph 4.1(a). Notwithstanding the provisions of this
paragraph 4.1(d), no Shares may again be optioned, granted or awarded if such action would cause an Incentive Share Option to fail to qualify as an Incentive Share Option. 

 

	 	(e)	 Notwithstanding any other provisions herein, paragraph (b) of this Article 4.1 shall only apply to the
Company, this Plan and the exercise of discretions by the Committee if the Company is a HKLR Regulated Entity and only to the extent those provisions are applicable in respect of the Company under the HKSE Listing Rules at the relevant time.

  

	4.2	 Shares Distributed. To the extent not prohibited by Applicable Law or any exchange rule, any Shares
distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares, treasury or Shares purchased on the open market. Additionally, in the discretion of the Committee, and to the extent not prohibited by Applicable
Law or any exchange rule, American Depositary Shares in an amount equal to the number of Shares which otherwise would be distributed pursuant to an Award may be distributed in lieu of Shares in settlement of any Award. If the number of Shares
represented by an American Depositary Share is other than on a one-to-one basis, the limitations of paragraph 4.1 shall be adjusted to reflect the distribution of
American Depositary Shares in lieu of Shares.

      

     
      

     
      

     
      

LR17.03(3) 
      

     
      

     
      

     
 LR17.03(4) 

     
      

Note to 
 LR17.03(4)

 

  
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 ARTICLE 5 

ELIGIBILITY AND PARTICIPATION 
  

	5.1	 Eligibility. Persons eligible to participate in this Plan include Employees, Consultants, and all
members of the Board, as determined by the Committee. 

  

	5.2	 Participation. Subject to the provisions of the Plan, the Committee may, from time to time, at its
discretion select from among all eligible individuals, those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual shall have any right or entitlement to be granted an Award pursuant to this Plan.

  

	5.3	 Connected persons. 

 

	 	(a)	 If the Committee determines to offer to grant Options to a director, chief executive or substantial shareholder
of the Company’s HKSE-listed Parent or any of their respective associates, such grant shall be subject to the approval by the independent non-executive directors of the Company’s HKSE-listed Parent
at the time of determination (and in the event that the Committee offers to grant Options to an independent non-executive director of the Company’s HKSE-listed Parent at the time of determination, the
vote of such independent non-executive director shall not be counted for the purposes of approving such grant). 

  

	 	(b)	 If the Committee determines to offer to grant Options to a substantial shareholder or an independent non-executive director of the Company’s HKSE-listed Parent (or any of their respective associates) and that grant would result in the Shares issued and to be issued upon exercise of all Options already granted
and to be granted (including Options exercised, cancelled and outstanding) to such person under this Plan and any other schemes of the Company in the 12-month period up to and including the date of grant:

  

	 	(i)	 representing in aggregate over 0.1%, or such other percentage as may be from time to time provided under the
HKSE Listing Rules, of the Shares in issue on the date of grant; and 

  

	 	(ii)	 (where the Shares are listed on HKSE), having an aggregate value, based on the closing price of the Shares on
the date of grant, in excess of HK$5 million or such other sum as may be from time to time provided under the HKSE Listing Rules, 

such grant shall be subject to, in addition to the approval of the independent non-executive directors
of the Company’s HKSE-listed Parent as referred to under paragraph 5.3(a), the issue of a circular by such Parent to its shareholders and the approval of the shareholders of such Parent in general meeting by way of a poll convened and held in
accordance with its articles of association at which that eligible Participant, his associates and all core connected persons (as defined in the HKSE Listing Rules) of the Company’s HKSE-listed Parent shall abstain from voting in favour of the
resolution concerning the grant of such Options at the general meeting, and/or such other applicable requirements prescribed under the HKSE Listing Rules from time to time. Unless provided otherwise in the HKSE Listing Rules, the date of the
Committee meeting at which the Committee resolved to grant the proposed Options to that eligible Participant shall be taken as the date of grant for the purpose of calculating the Exercise Price to be set forth in the said circular. 

 

	 	(c)	 The circular to be issued by the Company’s HKSE-listed Parent to its shareholders pursuant to paragraph
5.3(b) shall comply with the HKSE Listing Rules. 

  

	 	(d)	 Notwithstanding any other provisions herein, paragraphs (a), (b) and (c) of this Article 5.3 shall only
apply to the Company, this Plan and the exercise of discretions by the Committee if the Company is a HKLR Regulated Entity and only to the extent those provisions are applicable in respect of the Company under the HKSE Listing Rules at the relevant
time. If the Shares are listed on HKSE, paragraphs (a), (b) and (c) of this Article 5.3 shall also apply, mutatis mutandis, in respect of the Company as if references therein to the Company’s HKSE-listed Parent were references to
the Company. 

      

     
      

     
 LR17.03(2) 

     
      

     
      

     
      

     
      

LR17.04(1) 
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
 LR17.04(3)

 

  
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	5.4	 Jurisdictions. In order to assure the viability of Awards granted to Participants who reside or are
employed in various jurisdictions, the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom applicable in the jurisdiction in which the Participant
resides or is employed. Moreover, the Committee may approve such supplements to, or amendments, restatements, or alternative versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of
the Plan as in effect for any other purpose; provided, however, that no such supplements, amendments, restatements, or alternative versions shall increase the share limitations contained in paragraph 4.1 of the Plan. Notwithstanding the
foregoing, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate any Applicable Laws. 

ARTICLE 6 
 OPTIONS

  

	6.1	 General. Subject to the provisions of paragraph 4.1, the Committee is authorized to grant Options to
Participants on the following terms and conditions: 

  

	 	(a)	 Exercise Price. The Exercise Price per Share subject to an Option shall be determined by the Committee
in accordance with this Plan, more particularly, Article 10.7, and set forth in the Award Agreement. If the Company is not a HKLR Regulated Entity or if and to the extent the HKSE Listing Rules allow, the Committee has the authority, in its absolute
and sole discretion, to reduce the Exercise Price amount set forth in any Award Agreement after grant, the determination of which shall be final, binding and conclusive. 

 

	 	(b)	 Time and Conditions of Exercise. The Committee shall determine the time or times at which an Option may
be exercised in whole or in part, including exercise prior to vesting; provided that the term of any Option granted under the Plan shall not exceed ten years. The Committee shall also determine the conditions, if any, that must be satisfied
before all or part of an Option may be exercised. 

  

	 	(c)	 Vesting. The period during which the right to exercise, in whole or in part, an Option will be vested in
a Participant shall be set by the Committee and the Committee may determine that an Option may not be exercised in whole or in part for a specified period after it is granted. Such vesting may be based on service with the Service Recipient or any
other criteria selected by the Committee. If and to the extent permitted by Applicable Laws, the Committee has the authority, in its sole discretion and subject to whatever terms and conditions it selects, to accelerate the period during which an
Option is to vest at any time after grant of the Option. 

  

	 	(d)	 Payment. The Committee shall determine the methods by which the Exercise Price of an Option may be paid,
the form of payment, including, without limitation (i) cash or check denominated in U.S. Dollars, Hong Kong Dollars or any other local currency as approved by the Committee, (ii) Shares held for such period of time as may be required by
the Committee in order to avoid adverse financial accounting consequences and having a Fair Market Value on the date of delivery equal to the aggregate Exercise Price of the Option or exercised portion thereof, (iii) after the Trading Date the
delivery of a notice that the Participant has placed a market sell order with a broker with respect to Shares then issuable or deliverable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net
proceeds of the sale to the Company in satisfaction of the Exercise Price; provided that payment of such proceeds is then made to the Company upon settlement of such sale, and the methods by which Shares shall be delivered or deemed to be
delivered to Participants, (iv) through net share settlement or similar procedure involving the withholding of Shares subject to the Option with a Fair Market Value equal to the Exercise Price, (v) other property acceptable to the
Committee with a fair market value equal to the Exercise Price, or (vi) by such other means as the Committee may authorize, or (vii) any combination of the foregoing. Notwithstanding any other provision of the Plan to the contrary, no
Participant who is a member of the Board or an “executive officer” of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to pay the Exercise Price of an Option in any method which would violate
Section 13(k) of the Exchange Act.

      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

LR17.03(9) 
      

     
      

     
 LR17.03(5) 

     
 LR17.03(7) 

     
      

LR17.03(6) 
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
     

 

  
 8 

	 	(e)	 Evidence of Grant. All Options shall be evidenced by an Award Agreement between the Company and the
Participant. The Award Agreement shall include such additional provisions as may be specified by the Committee. 

  

	 	(f)	 Expiration of Option. An Option shall lapse automatically and may not be exercised to any extent by
anyone after the first to occur of the following events: 

  

	 	(i)	 ten years from the date it is granted, unless an earlier time is set in the Award Agreement;

  

	 	(ii)	 subject to paragraphs 6.1(f)(iii), (iv) and (v) below, three months after the Participant’s
Termination of Service, unless (x) otherwise set forth in the Award Agreement; or (y) notwithstanding the Award Agreement, the Participant is otherwise notified of a longer period as determined by the Committee; 

 

	 	(iii)	 one year after the date of the Participant’s Termination of Service on account of Disability or death,
unless (x) otherwise set forth in the Award Agreement; or (y) notwithstanding the Award Agreement, the Participant’s legal representative or representatives are otherwise notified of a longer period as determined by the Committee.
Upon the Participant’s Disability or death, any Options exercisable at the Participant’s Disability or death may be exercised by the Participant’s legal representative or representatives, by the person or persons entitled to do so
pursuant to the Participant’s last will and testament, or, if the Participant fails to make testamentary disposition of such Option or dies intestate, by the person or persons entitled to receive the Option pursuant to the applicable laws of
descent and distribution; 

  

	 	(iv)	 the date on which the Participant ceases to be eligible by reason of the Termination of Service for cause which
includes, without limitation, in the determination of the Committee that he has breached any confidentiality undertaking in his employment or service contract or in the Award Agreement, he has performed an act (or failed to perform any act) in bad
faith and to the detriment of any of the Company or its Subsidiaries, he has engaged in dishonesty, intentional misconduct or material breach of any agreement with any of the Company or its Subsidiaries, or he has been guilty of serious misconduct
or has been convicted of any criminal offence involving his integrity or honesty or physical or emotional harm to any person or (if so determined by the Committee) on any other ground on which an employer would be entitled to terminate his
employment or service at common law or pursuant to any applicable laws or under the Participant’s employment or service contract with the Service Recipient. A resolution of the Committee or the board of directors of the relevant Service
Recipient to the effect that the relationship of a Participant has or has not been terminated on one or more of the grounds specified in this paragraph shall be conclusive; and 

 

	 	(v)	 the date on which the Committee shall exercise the Company’s right to cancel the Option at any time after
(including for the avoidance of doubt after an Option has vested): (x) the Participant commits, at the determination of the Committee, a material breach of his post-termination employment or service obligations as set out in his employment or
service contract or any other agreement with the Company, a Subsidiary or Parent; (y) the Participant commits a breach of paragraph 10.10; or (z) the Awards are cancelled in accordance with Article 15. 

 

	 	(g)	 Option Rules. Notwithstanding any other provisions herein, any requirements or restrictions that apply
to the Committee’s actions in paragraphs (a), (b) and (c) under the HKSE Listing Rules shall only apply if the Company is a HKLR Regulated Entity and only to the extent required by the HKSE Listing Rules applicable in respect of the
Company at the relevant time. 

      

     
      

     
 LR17.03(12) 

     

 

  
 9 

	6.2	 Incentive Share Options. Incentive Share Options may only be granted to Employees of the Company, a Tax
Parent or Subsidiary of the Company. Incentive Share Options may not be granted to Employees of a Related Entity. The terms of any Incentive Share Options granted pursuant to the Plan, in addition to the requirements of paragraph 6.1, must comply
with the provisions of Section 422 of the Code, or any successor provision thereto, including the following additional provisions of this paragraph 6.2: 

  

	 	(a)	 Individual Dollar Limitation. The aggregate Fair Market Value (determined as of the time the Option is
granted) of all Shares with respect to which Incentive Share Options are first exercisable by a Participant in any calendar year may not exceed US$100,000 or such other limitation as imposed by Section 422(d) of the Code, or any successor
provision. To the extent that Incentive Share Options are first exercisable by a Participant in excess of such limitation, the excess shall be considered Non-Qualified Share Options. 

 

	 	(b)	 Ten Percent. Owners. An Incentive Share Option shall be granted to any individual who, at the date of
grant, owns Shares possessing more than ten percent of the total combined voting power of all classes of Shares of the Company only if such Option is granted at a price that is not less than 110% of Fair Market Value on the date of grant and the
Option is exercisable for no more than five years from the date of grant. 

  

	 	(c)	 Transfer Restriction. The Participant shall give the Company prompt notice of any disposition of Shares
acquired by exercise of an Incentive Share Option within (i) two years from the date of grant of such Incentive Share Option; or (ii) one year after the transfer of such Shares to the Participant. 

 

	 	(d)	 Timing of Incentive Share Option Grants. No Award of an Incentive Share Option may be made pursuant to
this Plan after the tenth anniversary of the Effective Date of this Plan. 

  

	 	(e)	 Right to Exercise. During a Participant’s lifetime, an Incentive Share Option may be exercised only
by the Participant except for the case of Disability pursuant to paragraph 6.1(f)(iii). 

  

	6.3	 Substitution of Share Appreciation Rights. The Committee may provide in the Award Agreement evidencing
the grant of an Option that the Committee, in its sole discretion, shall have the right to substitute a Share Appreciation Right for such Option at any time prior to or upon exercise of such Option, provided that such Share Appreciation Right shall
(i) be exercisable for the same number of Shares that such substituted Option would have been exercisable for; and (ii) shall have the same exercise price as such substituted Option. 

ARTICLE 7 
 RESTRICTED
SHARES 
  

	7.1	 Grant of Restricted Shares. The Committee is authorized to make Awards of Restricted Shares to any
Participant selected by the Committee in such amounts and subject to such terms and conditions as determined by the Committee. All Awards of Restricted Shares shall be evidenced by an Award Agreement. 

 

	7.2	 Issuance and Restrictions. Subject to paragraphs 10.10 and 10.11, Restricted Shares shall be subject to
such restrictions on transferability and other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Shares or the right to receive dividends on the Restricted Share). These restrictions
may lapse separately or in combination at such times, pursuant to such circumstances, in such installments, or otherwise, as the Committee determines at the time of the grant of the Award or thereafter. 

 

	7.3	 Forfeiture. Except as otherwise determined by the Committee at the time of the grant of the Award or
thereafter, upon termination of employment or service during the applicable restriction period, Restricted Shares that are at that time subject to restrictions shall be forfeited; provided, however, that the Committee may (a) provide in
any Restricted Share Award Agreement that restrictions or forfeiture conditions relating to Restricted Shares will be waived in whole or in part in the event of terminations resulting from specified causes, and (b) in other cases waive in whole
or in part restrictions or forfeiture conditions relating to Restricted Shares. The Committee may attach any conditions it deems appropriate to such waiver, including, but not limited to, the right of the Company to subsequently revoke the waiver at
its discretion. 

  

	7.4	 Certificates for Restricted Shares. Restricted Shares granted pursuant to the Plan may be evidenced in
such manner as the Committee shall determine. If certificates representing Restricted Shares are registered in the name of the Participant, certificates must bear an appropriate legend referring to the terms, conditions, and restrictions applicable
to such Restricted Shares, and the Company may, at its discretion, retain physical possession of the certificate until such time as all applicable restrictions lapse.

     

 

  
 10 

 ARTICLE 8 

SHARE APPRECIATION RIGHTS 
  

	8.1	 Grant of Share Appreciation Rights. 

 

	 	(a)	 A Share Appreciation Right may be granted to any Participant selected by the Committee. A Share Appreciation
Right shall be subject to such terms and conditions not inconsistent with the Plan as the Committee shall impose and shall be evidenced by an Award Agreement. The Exercise Price per Share covered by a Share Appreciation Right shall be fixed by the
Committee in its discretion and set forth in the Award Agreement. The Committee, in its absolute and sole discretion, may reduce the Exercise Price amount set forth in any Award Agreement after grant, the determination of which shall be final,
binding and conclusive. For the avoidance of doubt, the Committee may not increase the Exercise Price amount set forth in any Award Agreement after grant. 

  

	 	(b)	 A Share Appreciation Right shall entitle the Participant (or other person entitled to exercise the Share
Appreciation Right pursuant to the Plan) to exercise all or a specified portion of the Share Appreciation Right (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the difference
obtained by subtracting the Exercise Price per share of the Share Appreciation Right from the Fair Market Value of a Share on the date of exercise of the Share Appreciation Right by the number of Shares with respect to which the Share Appreciation
Right shall have been exercised, subject to any limitations the Committee may impose. 

  

	 	(c)	 The Committee shall determine the time or times at which a Share Appreciation Right may be exercised in whole
or in part; provided that the term of any Share Appreciation Right granted under the Plan shall not exceed ten years, except as provided in paragraph 13.2. The Committee shall also determine the conditions, if any, that must be satisfied
before all or part of a Share Appreciation Right may be exercised. 

  

	 	(d)	 The Committee may provide in the Award Agreement evidencing the grant of a Share Appreciation Right that the
Committee, in its sole discretion, shall have the right to substitute an Option for such Share Appreciation Right at any time prior to or upon exercise of such Share Appreciation Right, provided that such Option shall (i) be exercisable for the
same number of Shares that such substituted Share Appreciation Right would have been exercisable for and (ii) shall have the same exercise price as such substituted Share Appreciation Right. 

 

	8.2	 Payment and Limitations on Exercise. 

 

	 	(a)	 Payment of the amounts determined under paragraph 8.1(b) above shall be in cash, in Shares (based on its Fair
Market Value as of the date the Share Appreciation Right is exercised) or a combination of both, as determined by the Committee in the Award Agreement. 

  

	 	(b)	 To the extent any payment under paragraph 8.1(b) is effected in Shares, it shall be made subject to
satisfaction of all provisions of Article 6 above pertaining to Options. 

  

	8.3	 Forfeiture. Paragraph 7.3 above regarding Restricted Share awards shall, mutatis mutandis, be
applied to any Share Appreciation Right award. 

 ARTICLE 9 

OTHER TYPES OF AWARDS 
  

	9.1	 Dividend Equivalents. Any Participant selected by the Committee may be granted Dividend Equivalents
based on the dividends declared on the Shares that are subject to any Award, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests or expires, as determined by
the Committee. Such Dividend Equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such limitations as may be determined by the Committee; provided, however, that the terms of any
reinvestment of dividends must comply with all applicable laws, rules and regulations, including, without limitation, Section 409A of the Code. No such Dividend Equivalents relating to any Award, whether the vesting is based on continued
service, the achievement of performance goals, a combination, or otherwise, shall vest or otherwise become payable prior to the time that the underlying Award (or portion thereof to which such Dividend Equivalents relate) vests upon the attainment
of the applicable vesting requirements and shall accordingly be subject to cancellation and forfeiture to the same extent as the underlying Award.

     

 

  
 11 

	9.2	 Share Payments. Any Participant selected by the Committee may receive Share Payments in the manner
determined from time to time by the Committee; provided, that unless otherwise determined by the Committee such Share Payments shall be made in lieu of base salary, bonus, or other cash compensation otherwise payable to such Participant. The
number of Shares shall be determined by the Committee and may be based upon such performance criteria or other specific criteria determined appropriate by the Committee, determined on the date such Share Payment is made or on any date thereafter.

  

	9.3	 Deferred Shares. Any Participant selected by the Committee may be granted an award of Deferred Shares in
the manner determined from time to time by the Committee. The number of Deferred Shares shall be determined by the Committee and may be linked to such specific criteria determined to be appropriate by the Committee, in each case on a specified date
or dates or over any period or periods determined by the Committee. Shares underlying a Deferred Share award will not be issued until the Deferred Share award has vested, pursuant to a vesting schedule or criteria set by the Committee. Unless
otherwise provided by the Committee, a Participant awarded Deferred Shares shall have no rights as a Company’s shareholder with respect to such Deferred Shares until such time as the Deferred Shares have vested and the Shares underlying the
Deferred Shares have been issued. 

  

	9.4	 Restricted Share Units. The Committee is authorized to make Awards of Restricted Share Units to any
Participant selected by the Committee in such amounts and subject to such terms and conditions as determined by the Committee. At the time of grant, the Committee shall specify the date or dates on which the Restricted Share Units shall become fully
vested and non-forfeitable, and may specify such conditions to vesting as it deems appropriate. At the time of grant, the Committee shall specify the maturity date applicable to each grant of Restricted Share
Units which shall be no earlier than the vesting date or dates of the Award and may be determined at the election of the Participant. On the maturity date, the Company shall transfer to the Participant one unrestricted, fully transferable Share for
each Restricted Share Unit scheduled to be paid out on such date and not previously forfeited. The Committee shall specify the purchase price, if any, to be paid by the Participant to the Company for such Shares. 

 

	9.5	 Term. Except as otherwise provided herein, the term of any Award of Dividend Equivalents, Share
Payments, Deferred Share, or Restricted Share Units shall be set by the Committee in its discretion. 

  

	9.6	 Exercise or Purchase Price. The Committee may establish the exercise or purchase price, if any, of any
Award of Deferred Share, Share Payments or Restricted Share Units; provided, however, that such price shall not be less than the par value of a Share, unless otherwise permitted by Applicable Law. 

 

	9.7	 Exercise Upon Termination of Employment or Service. An Award of Dividend Equivalents, Deferred Shares,
Share Payments, and Restricted Share Units shall only be exercisable or payable while the Participant is an Employee, Consultant or a member of the Board, as applicable; provided, however, that the Committee in its sole and absolute
discretion may provide that an Award of Dividend Equivalents, Share Payments, Deferred Shares, or Restricted Share Units may be exercised or paid subsequent to a termination of employment or service, as applicable, or following a Change in
Control of the Company, or because of the Participant’s retirement, death or Disability, or otherwise. 

  

	9.8	 Form of Payment. Payments with respect to any Awards granted under this Article 9 shall be made in cash,
in Shares or a combination of both, as determined by the Committee. 

  

	9.9	 Award Agreement. All Awards under this Article 9 shall be subject to such additional terms and
conditions as determined by the Committee and shall be evidenced by an Award Agreement. 

  

	9.10	 Forfeiture. Paragraph 7.3 above regarding Restricted Share awards shall, mutatis mutandis, be
applied to any of the awards under this Article 9.

     

 

  
 12 

 ARTICLE 10 

PROVISIONS APPLICABLE TO AWARDS 
  

	10.1	 New Plan Limit. The Plan Limit may be increased from time to time in accordance with the requirements of
Applicable Laws, provided that any increase of the Option Limit shall be subject to paragraphs 10.2, 10.4 and 14.1(a)(i). 

  

	10.2	 New Option Limit. Any increased Option Limit shall not be more than ten percent (10%) of the Shares in
issue (the “New Option Limit”) as at the date of the approval by shareholders of the Company’s HKSE-listed Parent required under paragraph 14.1(a)(i) to increase the Option Limit (the “New Approval Date”) and
shall be subject to paragraph 10.4. Thereafter, as at the date of grant of any proposed grant of Options, the maximum number of Shares in respect of which Options may be granted is the New Option Limit less the aggregate of the following Shares as
at that date of grant: 

  

	 	(a)	 the number of Shares which would be issued on the exercise in full of the Options and options under any other
Share option schemes of the Company granted on or after the New Approval Date but not cancelled, lapsed or exercised; 

  

	 	(b)	 the number of Shares which have been issued and allotted pursuant to the exercise of any Options or options
under any other Share option schemes of the Company granted on or after the New Approval Date; and 

  

	 	(c)	 the number of cancelled Shares the subject of Options or options under any other Share options schemes of the
Company granted on or after the New Approval Date, 

 provided that if the Company is a subsidiary of a HKSE-listed
company, the implementation of the New Option Limit is subject to the issue of a circular by the Company’s HKSE-listed Parent which complies with Rules 17.03(3) and 17.06 of the HKSE Listing Rules, the approval of the Company’s HKSE-listed
Parent’s shareholders in a general meeting and/or such other requirements prescribed under the HKSE Listing Rules applicable to the Company at the relevant time (the “SGM Requirements”). 

 

	10.3	 Exceeding the Option Limit. Subject to paragraph 10.4, the Committee may grant Options exceeding the
Option Limit to eligible Participants specifically identified by the Committee, provided that if the Company is a subsidiary of a HKSE-listed company, such grant exceeding the Option Limit shall be subject to the SGM Requirements.

  

	10.4	 Maximum Option Limit. The number of Shares which may be issued upon exercise of all outstanding Options
granted and yet to be exercised under the Plan and any other share option schemes of the Company must not exceed thirty percent (30%) of the Shares in issue from time to time. No Options may be granted under the Plan or any other share option
schemes of the Company if that would result in this limit being exceeded. 

  

	10.5	 Adjustment of the Plan Limit and the Option Limit. The Plan Limit and the Option Limit referred to in
paragraph 4.1 (or as increased in accordance with the applicable provisions of this Article 10) shall be adjusted, in such manner as the auditors or the approved independent financial adviser shall certify to be appropriate, fair and reasonable in
the event of any alteration in the capital structure of the Company in accordance with Article 11 whether by way of capitalization issue, rights issue, sub-division or consolidation of Shares or reduction of
share capital of the Company. 

  

	10.6	 Sub-division or Consolidation of Shares. If the Company conducts
a share consolidation or subdivision after the Option Limit or New Option Limit (as the case may be) has been approved under the SGM Requirements, the maximum number of Shares which may be issued upon exercise of all Options to be granted under the
Plan (and any other option schemes of the Company) under the Option Limit or New Option Limit (as the case may be) so approved, as a percentage of the total number of issued Shares at the date immediately before and after such consolidation or
subdivision, shall be the same. Such adjustment shall take effect automatically under the terms of the Plan.

      

     
      

     
      

     
      

Note to 
 LR17.03(14) 

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
 Note (2) to 

LR17.03(3) 
      

     
      

     
      

     
      

     
      

Note (3) to 
 LR17.03(3) 

     

 

  
 13 

	10.7	 Exercise Price. The exercise price in relation to each Option and Share Appreciation Right offered to an
eligible Participant shall, subject to the adjustments referred to in Article 11, be determined by the Committee in its absolute discretion but in any event shall not be less than the par value of a Share, provided that if the Company resolves to
seek an additional listing (in addition to its existing NASDAQ listing) of its shares on the HKSE (either Main Board or GEM) or other stock exchange: (a) the exercise price of any Options granted after the Company has resolved to seek an
additional listing and up to the date of the additional listing must not be lower than the new issue price (if any) applicable to the additional listing; (b) the exercise price of any Option granted during the period of six months immediately
preceding such application shall, upon listing be automatically adjusted to the greater of the original exercise price and the new issue price (if any) applicable to the additional listing; any such adjustment required hereby shall be conditional on
the additional listing being successfully completed and shall take effect on the date of completion of the additional listing and (c) after the additional listing, the exercise price shall comply with the provisions of the HKSE Listing Rules or
the rules of such other stock exchange applicable to the Company at the relevant time. 

  

	10.8	 Stand-Alone and Tandem Awards. Awards granted pursuant to the Plan may, in the discretion of the
Committee, be granted either alone, in addition to, or in tandem with, any other Award granted pursuant to the Plan. Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from
the grant of such other Awards. 

  

	10.9	 Award Agreement. Awards under the Plan shall be evidenced by Award Agreements that set forth the terms,
conditions and limitations for each Award which may include the term of an Award, the provisions applicable in the event the Participant’s employment or service terminates, and the Company’s authority to unilaterally or bilaterally amend,
modify, suspend, cancel or rescind an Award. 

  

	10.10	 Limits on Transfer. No right or interest of a Participant in any Award may be pledged, encumbered, or
hypothecated to or in favor of any party other than the Company, or a Subsidiary or Parent, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company, a Subsidiary or Parent. Except as
otherwise provided by the Committee, no Award shall be assigned, transferred, or otherwise disposed of by a Participant other than by will or the laws of descent and distribution. The Committee by express provision in the Award or an amendment
thereto may permit an Award (other than an Incentive Share Option) to be transferred to, exercised by and paid to certain persons or entities related to the Participant, including but not limited to members of the Participant’s family,
charitable institutions, or trusts or other entities whose beneficiaries or beneficial owners are members of the Participant’s family and/or charitable institutions, or to such other persons or entities as may be expressly approved by the
Committee, pursuant to such conditions and procedures as the Committee may establish. Any permitted transfer shall be subject to the condition that the Committee receives evidence satisfactory to it that the transfer is being made for estate and/or
tax planning purposes (or to a “blind trust” in connection with the Participant’s termination of employment or service with the Company or a Subsidiary to assume a position with a governmental, charitable, educational or similar non-profit institution) and on a basis consistent with the Company’s lawful issue of securities. Any breach of the foregoing shall entitle the Company to cancel any outstanding Awards or any part thereof
granted to such Participant. 

  

	10.11	 Beneficiaries. Notwithstanding paragraph 10.10, a Participant may, in the manner determined by the
Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person claiming
any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and Award Agreement otherwise provide, and to any additional restrictions deemed
necessary or appropriate by the Committee. If the Participant is married and resides in a community property jurisdiction, a designation of a person other than the Participant’s spouse as his or her beneficiary with respect to more than 50% of
the Participant’s interest in the Award shall not be effective without the prior written consent of the Participant’s spouse. If no beneficiary has been designated or survives the Participant, payment shall be made to the person entitled
thereto pursuant to the Participant’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change or revocation is filed with the
Committee. 

      

     
 Note (2) to 

LR17.03(9) 
 LR17.03(17)

 

  
 14 

	10.12	 Share Certificates. Notwithstanding anything herein to the contrary, the Company shall not be required
to issue or deliver any certificates evidencing Shares pursuant to the exercise of any Award, unless and until the Committee or the Board has determined, with advice of counsel, that the issuance and delivery of such certificates is in compliance
with all Applicable Laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the Shares are listed or traded. The Committee may require each Participant purchasing or acquiring Shares pursuant to an
Award under the Plan to represent to and agree with the Company in writing that such person is acquiring the Shares for investment and proprietary purposes. All Share certificates delivered pursuant to the Plan are subject to any stop-transfer
orders and other restrictions as the Committee deems necessary or advisable to comply with federal, state, or foreign jurisdiction, securities or other laws, rules and regulations and the rules of any national securities exchange or automated
quotation system on which the Shares are listed, quoted, or traded. The Committee may place legends on any Share certificate to reference restrictions applicable to the Share. In addition to the terms and conditions provided herein, the Committee or
the Board may require that a Participant make such reasonable covenants, agreements, and representations as the Committee or the Board, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements. The
Committee shall have the right to require any Participant to comply with any timing or other restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the
Committee. 

  

	10.13	 Paperless Administration. Subject to Applicable Laws, the Committee may make Awards, provide applicable
disclosure and procedures for exercise of Awards by an electronic portal, internet website or interactive voice response system for the paperless administration of Awards. 

 

	10.14	 Foreign Currency. A Participant may be required to provide evidence that any currency used to pay the
exercise price of any Award were acquired and taken out of the jurisdiction in which the Participant resides in accordance with Applicable Laws, including foreign exchange control laws and regulations. 

 

	10.15	 Award Rules. Notwithstanding any other provisions herein, any requirements or restrictions that apply to
the Company, the Plan and the exercise of discretions of the Committee in paragraphs 10.2 to 10.7 shall only apply to the Company if it is a HKLR Regulated Entity and only to the extent required by the provisions of the HKSE Listing Rules applicable
to the Company at the relevant time. If the Shares are listed on HKSE, the events specified above as requiring the issue of a circular complying with Rules 17.03(3) and 17.06 of the HKSE Listing Rules by the Company’s HKSE-listed Parent would
require the issue by the Company of a circular complying with those Rules.

 

  
 15 

 ARTICLE 11 

CHANGES IN CAPITAL STRUCTURE 
  

	11.1	 Adjustments. The Committee shall make appropriate adjustments upon the occurrence of the following
events: 

  

	 	(a)	 in respect of Options, in the event of a capitalization issue, rights issue,
sub-division or consolidation of Shares or reduction of share capital of the Company; or 

  

	 	(b)	 in respect of Awards other than Options, in the event of any extraordinary dividend, stock dividend, dividend
in property other than cash, liquidating dividend, share split, combination or exchange of Shares, amalgamation, arrangement or consolidation, spin-off, recapitalization, reorganization, reincorporation,
partial or complete liquidation, reclassification, merger, consolidation, separation, split-up, spin-off, combination, exchange of Shares, warrants or rights offering to
purchase Shares at a price substantially below Fair Market Value or other distribution (other than normal cash dividends) of Company assets to its shareholders, change in corporate structure or any other similar equity restructuring transaction or
change or other change affecting the number of the Shares or the share price of a Share, 

 the Committee shall make
proportionate and equitable adjustments to reflect such change with respect to (a) the class(es), aggregate number and type of securities that may be issued under the Plan (including, but not limited to, adjustments of the limitations in
paragraph 4.1), unless and except to the extent any such adjustment otherwise takes effect automatically in accordance with the terms of the Plan; (b) the terms and conditions of any outstanding Awards (including, without limitation, any
applicable performance targets or criteria with respect thereto); and (c) the grant price or exercise price per unit of security for any outstanding Awards under the Plan, in order to preserve, but not increase, the benefits or potential
benefits intended to be made available under the Plan. Any such adjustments shall be made in such manner as the Committee may determine in its discretion; provided that if the Company is a HKLR Regulated Entity, no such adjustment shall operate to
affect adversely the terms of any Option granted or agreed to be granted prior to such adjustment or to reduce the proportion of the equity capital to which any person was entitled pursuant to such Option prior to such adjustment. The Committee will
make such adjustments, and its determination will be final, binding and conclusive.

      

     
      

     
      

LR17.03(10) 
      

LR17.03(13) 

 

  
 16 

 Any adjustment made in relation to Options pursuant to paragraph 11.1(a) must give the
Participant the same proportion of the equity capital of the Company as to which that Participant was previously entitled, and any adjustments so made shall be in compliance with the HKSE Listing Rules and such applicable guidance and/or
interpretation of the HKSE Listing Rules from time to time issued by HKSE but no such adjustments may be made to the extent that a Share would be issued at less than its nominal value. An issue of Shares as consideration in a transaction may not be
regarded as a circumstance requiring adjustment. In addition, other than any adjustment made on a capitalisation issue, an independent financial adviser or the auditors of the Company shall confirm to the Board in writing that the adjustments
satisfy the requirements set out in Rule 17.03(13) of the HKSE Listing Rules and the note thereto and such applicable guidance and/or such other requirements prescribed under the HKSE Listing Rules from time to time. 

 

	11.2	 Outstanding Awards – Change in Control. In the event of a Change in Control, each Award will
terminate upon the consummation of the Change in Control, unless the Award is continued, or is assumed or replaced by the successor entity or Parent thereof in connection with the Change in Control. Except as provided otherwise in an individual
Award Agreement, in the event of a Change in Control, one of the following shall occur: 

  

	 	(a)	 the Award either is (i) assumed by the successor entity or Parent thereof or replaced with a comparable
Award (as determined by the Committee) with respect to marketable shares of the capital stock of the successor entity or Parent thereof or (ii) replaced with a cash incentive program of the successor entity which preserves the compensation
element of such Award existing at the time of the Change in Control and provides for subsequent payout in accordance with the same vesting schedule applicable to such Award, then such Award (if assumed), the replacement Award (if replaced), or the
cash incentive program automatically shall become fully vested, exercisable and payable and be released from any restrictions on transfer (other than transfer restrictions applicable to Awards) and repurchase or forfeiture rights, immediately upon
termination of the Participant’s employment or service with all Service Recipients within thirteen (13) months of the Change in Control without cause; and 

 

	 	(b)	 for each Award that is neither assumed nor replaced, such portion of the Award shall automatically become fully
vested and exercisable and be released from any repurchase or forfeiture rights (other than repurchase rights exercisable at Fair Market Value) for all of the Shares at the time represented by such portion of the Award, immediately prior to the
specified effective date of such Change in Control, provided that the Participant (unless due to Disability or death) remains an Employee, Consultant or Director immediately prior to the effective date of the Change in Control.

  

	11.3	 No Other Rights. Except as expressly provided in or authorized by the Plan, no Participant shall have
any rights by reason of any subdivision or consolidation of Shares of any class, the payment of any dividend, any increase or decrease in the number of shares of any class or any dissolution, liquidation, merger, or consolidation of the Company or
any other corporation. Except as expressly provided in the Plan or pursuant to action of the Committee under the Plan, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number of shares subject to an Award or the grant price or exercise price of any Award. 

  

	11.4	 Other Rules. Notwithstanding any other provisions herein, any requirements or restrictions that apply to
the Company, this Plan and the exercise of discretions of the Committee in paragraphs 11.1, 11.2 and 11.3 of this Article on account of the Company being a HKLR Regulated Entity shall only apply if the Company is a HKLR Regulated Entity and only to
the extent required by the provisions of the HKSE Listing Rules applicable to the Company at the relevant time. 

ARTICLE 12 

ADMINISTRATION 
  

	12.1	 Committee. The Committee shall administer the Plan. Notwithstanding the foregoing, (a) the full
Board, acting by a majority of its members in office, shall conduct the general administration of the Plan if required by Applicable Law, and with respect to Awards granted to independent non-executive
Directors or Non-Employee Directors and for purposes of such Awards, the term “Committee” as used in the Plan shall be deemed to refer to the Board; and (b) the Board or Committee may delegate
its authority hereunder to the extent permitted by paragraph 12.6 below.

 Note to 

LR17.03(13) 
      

     
      

     
      

     
      

     
      

LR17.03(12) 
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
 LR17.03(10)

 

  
 17 

	12.2	 Action by the Committee. A majority of the Committee shall constitute a quorum. The acts of a majority
of the members present at any meeting at which a quorum is present, and acts approved in writing by a majority of the Committee in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good
faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Subsidiary, the Company’s independent certified public accountants, or any executive compensation consultant
or other professional retained by the Company to assist in the administration of the Plan. 

  

	12.3	 Authority of Committee. Subject to any specific designation in the Plan and paragraph 12.6 below, the
Committee has the exclusive power, authority and discretion to: 

  

	 	(a)	 designate Participants to receive Awards; 

 

	 	(b)	 determine the type or types of Awards to be granted to each Participant; 

 

	 	(c)	 determine the number of Awards to be granted and the number of Shares to which an Award will relate;

  

	 	(d)	 determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to,
the exercise price, grant price, or purchase price, any minimum period for which the Award must be held for before it can be exercised, any performance targets which must be achieved before an Award can be exercised, any restrictions or limitations
on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and accelerations or waivers thereof, any provisions related to non-competition and recapture
of gain on an Award, based in each case on such considerations as the Committee in its sole discretion determines; 

  

	 	(e)	 determine whether, to what extent, and pursuant to what circumstances and amount an Award may be settled in, or
the exercise price of an Award may be paid in, cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered; 

  

	 	(f)	 prescribe the form of each Award Agreement, which need not be identical for each Participant;

  

	 	(g)	 decide all other matters that must be determined in connection with an Award; 

 

	 	(h)	 establish, adopt, or revise any rules and regulations as it may deem necessary or advisable to administer the
Plan; 

  

	 	(i)	 interpret the terms of, and any matter arising pursuant to, the Plan or any Award Agreement;

  

	 	(j)	 vary the terms of Awards to take account of tax and securities law and other regulatory requirements or to
procure favorable tax treatment for Participants; 

  

	 	(k)	 correct any defects, supply any omission or reconcile any inconsistency in any Award Agreement or the Plan; and

  

	 	(l)	 make all factual and other decisions and determinations that may be required pursuant to the Plan or as the
Committee deems necessary or advisable to administer the Plan, including but not limited to the determination in relation to the Termination of Services. 

  

	12.4	 Decisions Binding. The Committee’s interpretation of the Plan, any Awards granted pursuant to the
Plan, any Award Agreement and all decisions and determinations by the Committee with respect to the Plan (a) shall be made in the Committee’s sole discretion and (b) are final, binding, and conclusive for all purposes and upon all
parties. 

  

	12.5	 Administration of the Plan. Notwithstanding any other provisions herein, the Committee (save where
certain matters stated in this Plan are reserved for the Board) shall, at all times, administer the Plan and exercise its power pursuant to paragraph 12.3 hereof in accordance with the relevant requirements under the Applicable Laws.

      

     
      

     
      

     
      

LR17.03(18) 
      

     
      

     
      

     
      

     
      

     
      

     
      

     
 LR17.03(8)

 

  
 18 

	12.6	 Delegation of Authority. To the extent permitted by Applicable Laws, the Board or Committee may from
time to time delegate to a committee of one or more officers of the Company (including Chief Executive Officer, Chief Financial Officer, Chief Legal Officer, Chief of Staff to the Chairman and Chief Executive Officer, or equivalent) the authority to
take the administrative actions pursuant to Article 12; provided, however, that in no event shall any delegated personnel be delegated the authority to grant awards to, or amend awards held by, the following individuals: (a) individuals
who are subject to Section 16 of the Exchange Act, or (b) officers of the Company (or Directors) to whom authority to grant or amend Awards has been delegated hereunder. Any delegated personnel hereunder shall be subject to the
restrictions and limits that the Board or Committee specifies at the time of such delegation, and the Board may at any time rescind the authority so delegated and the Committee may at any time rescind the authority so delegated by the Committee.

  

	12.7	 Appointment of professionals to assist in the administration of the Plan. The Company may from time to
time retain or appoint one or more Trustee(s) and Administrator(s) to assist in the administration of the Plan. The functions of a Trustee appointed under this paragraph 12.7 shall include (but are not limited to) the receiving of funds from the
Company and/or its Subsidiaries from time to time for on-market purchase of Shares, the holding of Shares pending vesting of Awards, the transfer of Shares to and from the Administrator following vesting of
Awards and the execution of requests from the Company from time to time for the purpose of the Plan. The Company may enter into such agreements or make such arrangements (including the establishment of a trust) as may be necessary in connection with
the provisions in this paragraph. 

  

	12.8	 Relevance of HKSE Listing Rules. Notwithstanding any other provisions herein, all references herein to
(a) the Company’s obligation to comply with or observe the applicable HKSE Listing Rules, or (b) the Company’s completion of any actions to be taken hereunder being made subject to its HKSE-listed Parent’s compliance with
any applicable HKSE Listing Rules, shall apply to the Company only (1) for so long as it is a HKLR Regulated Entity and only to the extent the provisions of the HKSE Listing Rules applicable in respect of the Company require compliance with
those provisions at the relevant time or (2) if and to the extent its HKSE-listed Parent is required to comply with such HKSE Listing Rules. All such obligations shall not apply to the Company, this Plan and the exercise of discretions by the
Committee, if the Company is not a HKLR Regulated Entity or to the extent the Company and/or its HKSE-listed Parent, as the case may be, is not required to comply with such HKSE Listing Rules. 

ARTICLE 13 
 EFFECTIVE
AND EXPIRATION DATE 
  

	13.1	 Effective Date. The Plan is effective as of a date specified by the Committee as the effective date for
the Plan (the “Effective Date”), which shall be a date following the fulfilment of the requirements specified in paragraphs 13.1(a) and (b) below and not later than December 7, 2021 (being the expiration date of the 2011 Share
Incentive Plan). Adoption of the Plan and the Plan becoming effective are conditional on both of the following conditions being fulfilled: 

  

	 	(a)	 the passing of a resolution by the Board approving the Plan; and 

 

	 	(b)	 the passing of resolutions by the directors and shareholders of MIDL approving the Plan. 

 

	13.2	 Expiration Date. The Plan will expire on, and no Award may be granted pursuant to the Plan after, the
tenth anniversary of the Effective Date. Any Awards that are outstanding on the tenth anniversary of the Effective Date shall remain in force according to the terms of the Plan and the applicable Award Agreement. 

ARTICLE 14 
 AMENDMENT,
MODIFICATION, AND TERMINATION 
  

	14.1	 Amendment, Modification, and Termination. Subject to Applicable Laws, with the approval of the Board, at
any time and from time to time, the Committee may terminate, amend or modify the Plan; provided, however, that: 

  

	 	(a)	 shareholders’ approval of the Company’s HKSE-listed Parent is required for any amendment to the Plan
that: 

  

	 	(i)	 increases the number of Shares available under the Plan for the grant of Options (other than any adjustment as
provided by Article 11); 

      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

LR17.03(11) 
      

     
      

     
      

     
      

     
 LR17.03(18) 

Notes (1), (2), 
 (3) and (4) to 

LR17.03 

 

  
 19 

	 	(ii)	 alters the provisions of the Plan in respect of Options which relate to the matters set out in Rule 17.03 of
the HKSE Listing Rules to the advantage of Participants or persons eligible to participate in the Plan; 

  

	 	(iii)	 changes the authority of the Board, the Directors or the Committee in relation to any alteration to the terms
of the Plan relating to Options; or 

  

	 	(iv)	 relates to Options and is of a material nature; and 

 

	 	(b)	 the Plan as amended under (a) of this paragraph 14.1 shall remain in compliance with the applicable HKSE
Listing Rules, unless waived by the HKSE or the Company is not a HKLR Regulated Entity at the applicable time. 

 Any
amendments to provisions of the Plan relating to Awards other than Options (including Restricted Shares under Article 7, Share Appreciation Rights under Article 8 and Other Types of Awards under Article 9) are not subject to the HKSE Listing Rules
as at the date of adoption of the Plan and may be made without the approval of shareholders of the Company’s HKSE-listed Parent, unless and except to the extent that the HKSE Listing Rules are subsequently amended to require such approval(s).

 For the purpose of the Plan, shareholder approval means the affirmative vote of a simple majority of votes cast by shareholders of the
Company’s HKSE-listed Parent present or represented and entitled to vote at a meeting duly held in accordance with the applicable provisions of the Company’s HKSE-listed Parent’s constitutional documents. 

For the avoidance of doubt, the appointment of any Trustee or Administrator under Section 12.7, and any subsequent amendment of their
terms of appointment or the trusts upon which any Trustee is appointed, shall not constitute an amendment or modification of the Plan. 
  

	14.2	 Awards Previously Granted. No termination, amendment, or modification of the Plan shall adversely affect
in any material way any Award previously granted pursuant to the Plan and other previous plans without the prior written consent of the Participant. In the event that the amendments shall affect an Award previously granted pursuant to the Plan which
is an Option (except where the amendments take effect automatically under this Plan) and to the extent the HKSE Listing Rules so require, prior approval by shareholders of the Company’s HKSE-listed Parent shall be required for so long as the
Company remains a HKLR Regulated Entity. In the event of a termination of the Plan, no further Awards shall be granted but the provisions of this Plan shall remain in full force and effect in all other respects in respect of any Awards granted prior
thereto but not yet exercised at the time of termination. Upon such termination, details of the Options granted, including Options exercised or outstanding shall be disclosed in the circular to shareholders of the Company’s HKSE-listed Parent
seeking approval of the first new plan established after such termination. 

  

	14.3	 If the Shares are Listed on HKSE. If the Shares are listed on HKSE, and the HKSE Listing Rules so
require, the matters referred to above in this Article 14 as requiring prior approval by shareholders of the Company’s HKSE-listed Parent shall also require prior approval by shareholders of the Company (by the affirmative vote of a simple
majority of votes cast by shareholders present or represented and entitled to vote at a duly convened meeting of shareholders). 

ARTICLE 15 

CANCELLATION OF OPTIONS 
  

	15.1	 Options Granted but not Exercised. Any cancellation of Options granted but not exercised must be
approved by the Participants of the relevant Options in writing. For the avoidance of doubt, such approval is not required in the event any Option is cancelled pursuant to paragraph 6.1(f)(v)(x) or 10.10. Where the Company cancels Options, the grant
of new Options to the same Participant may only be made under this Plan within the limits set out in paragraph 4.1.

      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

Note (2) to 
 LR17.03 

     
      

LR17.03(16)     
     

      
      

     
      

     
      

     
      

     
      

     
      

     
      

     
      

LR17.03(14) 
      

     

 

  
 20 

 ARTICLE 16 

DISCLOSURE 
  

	16.1	 Disclosure. The details of this Plan and other share incentive schemes of the Company and its
Subsidiaries will be subject to public disclosure by the Company and/or its Parent, as required, in compliance with all Applicable Laws in force from time to time. 

ARTICLE 17 
 GENERAL
PROVISIONS 
  

	17.1	 No Rights to Awards. No Participant, employee, or other person shall have any claim to be granted any
Award pursuant to the Plan, and neither the Company nor the Committee is obligated to treat Participants, employees, and other persons uniformly. 

  

	17.2	 No Shareholders Rights. No Award gives the Participant any of the rights of a Shareholder of the Company
unless and until Shares are in fact issued to such person in connection with such Award. 

  

	17.3	 Taxes. No Shares shall be delivered under the Plan to any Participant until such Participant has made
arrangements acceptable to the Committee for the satisfaction of any income and employment tax withholding obligations under Applicable Laws, including, without limitation, Macau, Hong Kong or PRC (and/or other jurisdictions where the Company or any
Subsidiary operates) tax laws, rules, regulations and government orders or the U.S. Federal, state or local tax laws, as applicable. The Company or any Subsidiary shall have the authority and the right to deduct or withhold, or require a Participant
to remit to the Company, an amount sufficient to satisfy federal, state, local and foreign taxes (including the Participant’s payroll tax obligations) required by law to be withheld with respect to any taxable event concerning a Participant
arising as a result of this Plan. The Committee may, in its discretion and in satisfaction of the foregoing requirement, allow a Participant to elect to have the Company withhold Shares otherwise issuable or deliverable under an Award (or allow the
return of Shares) having a Fair Market Value equal to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of Shares which may be withheld with respect to the issuance, vesting, exercise or payment of any
Award (or which may be repurchased from the Participant of such Award after such Shares were acquired by the Participant from the Company) in order to satisfy the Participant’s federal, state, local and foreign income and payroll tax
liabilities with respect to the issuance, vesting, exercise or payment of the Award shall, unless specifically approved by the Committee, be limited to the number of Shares which have a Fair Market Value on the date of withholding or repurchase
equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income.

  

	17.4	 Section 409A of the Code. 

 

	 	(a)	 Notwithstanding any contrary provision in the Plan or an Award Agreement, if any provision of the Plan or an
Award Agreement contravenes any regulations or guidance promulgated under Section 409A of the Code or would cause an Award to be subject to additional taxes, accelerated taxation, interest and/or penalties under Section 409A of the Code,
such provision of the Plan or Award Agreement may be modified by the Committee without consent of the Participant in any manner the Committee deems reasonable or necessary. In making such modifications the Committee shall attempt, but shall not be
obligated, to maintain, to the maximum extent practicable, the original intent of the applicable provision without contravening the provisions of Section 409A of the Code. Moreover, any discretionary authority that the Committee may have
pursuant to the Plan shall not be applicable to an Award that is subject to Section 409A of the Code to the extent such discretionary authority would contravene Section 409A of the Code or the guidance promulgated thereunder.

  

	 	(b)	 Notwithstanding any provision of the Plan or an Award Agreement to the contrary, if, upon the termination of a
Participant’s employment with the Company for any reason, the Company determines that the Participant is a Specified Employee, no payments shall be made with respect to an Award that is subject to Section 409A of the Code before the date
that is the first business day following the six-month anniversary of the Participant’s Separation From Service for any reason, or if earlier, upon the Participant’s death. The provisions of this
Section 17.4(b) shall only apply if required pursuant to Section 409A of the Code.

     

 

  
 21 

	17.5	 No Right to Employment or Services. Nothing in the Plan or any Award Agreement shall interfere with or
limit in any way the right of the Service Recipient to terminate any Participant’s employment or services at any time, nor confer upon any Participant any right to continue in the employ or service of any Service Recipient.

  

	17.6	 Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for incentive
compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights that are greater than those of a general creditor of the
Company or any Subsidiary. 

  

	17.7	 Indemnification. To the extent allowable pursuant to applicable law, each member of the Committee or of
the Board shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting from any claim, action, suit, or proceeding to
which he or she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or
proceeding against him or her; provided he or she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s Memorandum of Association and Articles of Association, as a matter of law, or otherwise, or any power
that the Company may have to indemnify them or hold them harmless. 

  

	17.8	 Relationship to other Benefits. No payment pursuant to the Plan shall be taken into account in
determining any benefits pursuant to any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary except to the extent otherwise expressly provided in writing in such other plan or
an agreement thereunder. 

  

	17.9	 Expenses. The expenses of administering the Plan shall be borne by the Company and its Subsidiaries.

  

	17.10	 Titles and Headings. The titles and headings of the sections in the Plan are for convenience of
reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 

  

	17.11	 Fractional Shares. No fractional shares of Share shall be issued and the Committee shall determine, in
its discretion, whether cash shall be given in lieu of fractional shares or whether such fractional shares shall be eliminated by rounding up or down as appropriate. 

 

	17.12	 Severability. If any provision of this Plan is held unenforceable, the remainder of the Plan shall
continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the Plan. 

 

	17.13	 Government and Other Regulations. The obligation of the Company to make payment of awards in Shares or
otherwise shall be subject to all Applicable Laws, rules, and regulations, and to such approvals by government agencies as may be required. The Company shall be under no obligation to register any of the Shares paid pursuant to the Plan under the
Securities Act or any other similar law in any applicable jurisdiction. If the Shares paid pursuant to the Plan may in certain circumstances be exempt from registration pursuant to the Securities Act or other Applicable Laws the Company may restrict
the transfer of such Shares in such manner as it deems advisable to ensure the availability of any such exemption. 

  

	17.14	 Governing Law. The Plan and all Award Agreements shall be construed in accordance with and governed by
the laws of the Cayman Islands. 

 Approved by the Board at a meeting of the Board held on March 17, 2021, by the board and
shareholders of MIDL at a meeting of the MIDL board and annual general meeting of MIDL held on March 31, 2021 and June 4, 2021, respectively, and became effective on December 6, 2021.

     

 

  
 22Nanophase Technologies Corporation 8-K

Exhibit 10.1

 

 

CERTAIN INFORMATION, MARKED IN THIS
EXHIBIT WITH BRACKETS, HAS BEEN EXCLUDED FROM THIS EXHIBIT IN RELIANCE ON REGULATION S-K, ITEM 601(B)(10)(IV) BECAUSE SUCH INFORMATION
IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.

 

STANDARD FORM

INDUSTRIAL BUILDING LEASE

 

1.      BASIC TERMS:

 

This Section contains the Basic Terms
of this lease (this “Lease”) between Landlord and Tenant, as each is named below. Other Sections of the Lease referred to
in this Section explain and define the Basic Terms and are to be read in conjunction with the Basic Terms.

 

1.1             Effective Date of Lease: December 1, 2021.

 

1.2             Landlord: FR JH 10, LLC

 

1.3             Tenant: Nanophase Technologies Corporation, an Illinois corporation.

 

1.4             Premises: Approximately 222,935 rentable square feet to be expanded on 11/1/2022 by an additional 37,955 rentable square feet,
depicted in Exhibit A-1 as Unit B, for a total of 260,890 rentable square feet in the building commonly known as 400 Crossroads Pkwy,
Bolingbrook, IL 60440 (the “Building”). The Building’s total square feet is 260,890. The Premises are depicted on Exhibit
A-1.

 

1.5             Property: The real property on which the Building is located, as legally described on Exhibit A.

 

1.6             Lease Term: Ten (10) years and approximately five (5) months (“Term”), commencing December 31, 2021 (“Commencement
Date”) and ending, on May 31, 2032 (“Expiration Date”). If the Commencement Date occurs on a day other than
the first day of a calendar month, the Rent due for the first calendar month of the Term shall be prorated on a per diem basis (based
on a 365 (366 in leap years) day, 12-month year) and paid to Landlord on the Commencement Date, and Term will be extended to terminate
on the last day of the calendar month in which the Expiration Date occurs. In the event that, for any reason, Landlord permits Tenant
to have access to, or possession of, the Premises prior to the Commencement Date, all of the terms and conditions of this Lease (except
the obligation to pay Base Rent, as defined below) shall apply throughout any pre-Commencement Date use or occupancy. Landlord shall not,
however, be obligated to grant to Tenant any right to use, occupy or possess all or any portion of the Premises prior to the Commencement
Date.

 

1.7             Permitted Uses: General manufacturing, warehousing and distribution of non-hazardous goods.

 

1.8             Tenant’s Guarantor: None.

 

1.9             Brokers:

 

Tenant Broker:
Colliers International

 

Landlord Broker: CBRE

 

1.10           Security Deposit: [****************************]

 

1.11           Initial Estimated Additional Rent: [************] per month.

 

1.12           Tenant’s Proportionate Share: 85.4517%, which will increase to 100% as of 11/1/2022.

 

     

     

    

 

1.13           Addendums and Exhibits to Lease: The following addendums and exhibits are attached to and made a part of this Lease:

 

Renewal Option - Fair Market Value

 

Exhibit A (Legal Description); Exhibit
A-1 (Depiction of Premises); Exhibit B (Broom Clean Condition and Repair Requirements); Exhibit C (Rules and Regulations); Exhibit D (Landlord’s
Work, if any); Exhibit E (Confirmation of Commencement Date); Exhibit F (Sample Letter of Credit) (intentionally omitted); Exhibit G (Tenant
Contacts).

 

2.     LEASE OF PREMISES; RENT.

 

2.1             Lease of Premises for Lease Term. Landlord hereby leases the Premises to Tenant, and Tenant hereby rents the Premises from
Landlord, for the Term and subject to the conditions of this Lease.

 

2.2             Types of Rental Payments. Tenant shall pay net base rent (the “Base Rent”) to Landlord in monthly installments,
in advance, on the first day of each and every calendar month during the Term, in the amounts and for the periods as set forth below:

 

Base Rent Table
– 222,935 SF

 

	Lease Period	
    Monthly Base Rent

     

     
	Base Rent Net of Abated Rent (If Applicable) *
	12/31/2021 – 5/31/2022	$94,747.38	$0.00
	6/1/2022 – 10/31/2022	$94,747.38	$94,747.38

 

Base Rent Table
– 260,890 SF

 

	Lease Period	
    Monthly Base Rent 

	11/1/2022 – 5/31/2023	$110,878.25
	6/1/2023 – 5/31/2024	$113,927.40
	6/1/2024 – 5/31/2025	$117,060.40
	6/1/2025 – 5/31/2026	$120,279.56
	6/1/2026 – 5/31/2027	$123,587.25
	6/1/2027 – 5/31/2028	$126,985.90
	6/1/2028 – 5/31/2029	$130,478.01
	6/1/2029 – 5/31/2030	$134,066.16
	6/1/2030 – 5/31/2031	$137,752.98
	6/1/2031 – 5/31/2032	$141,541.19

 

    -2- 

     

    

 

Monthly
installments of Base Rent shall be conditionally abated as follows. Base Rent shall be abated 100% from December 31, 2021 through May
31, 2022, such that Base Rent shall be $0.00 per month, subject to all
terms of this Section. Notwithstanding such abatement of Base Rent, all other sums due under the Lease, including Additional Rent and
sales tax (if applicable), shall be payable as provided in the Lease. The abatement of Base Rent provided for in this provision is conditioned
upon Tenant’s full and timely performance of all of its obligations under the Lease. If at any time during the Lease Term an Event of
Default by Tenant occurs, then the abatement of Base Rent provided for in this provision shall immediately become void, and Tenant shall
promptly pay to Landlord, in addition to all other amounts due to Landlord under the Lease, the full amount of all Base Rent herein abated.
Tenant shall also pay (a) Tenant’s Proportionate Share of Operating Expenses (as hereinafter defined), and (b) any other
amounts owed by Tenant hereunder (the sums described in (a) and (b), collectively, “Additional Rent”).

 

In the event any monthly installment
of Base Rent or Additional Rent, or both, is not paid within 5 calendar days of the date when due, a late charge in an amount equal to
5% of the then delinquent installment of Base Rent and/or Additional Rent (the “Late Charge”) shall be imposed with respect
to the then-delinquent Rent (as defined below) payment.

 

For purposes of this Lease, the Late
Charge, Default Interest, (as herein after defined), Base Rent and Additional Rent shall collectively be referred to as “Rent.”
All Rent shall be paid by Tenant to Landlord, by ACH to [********]
(or such other entity designated as Landlord’s management agent, if any, and if Landlord so appoints such a management agent, the
“Agent”), or pursuant to such other directions as Landlord shall designate in this Lease or otherwise in writing.

 

2.3             Required Payments at Execution. Simultaneously with the execution and delivery of this Lease, Tenant shall deposit with Landlord
or Agent an amount equal to the sum of the first monthly installment of Base Rent of $[********]
payable under this Lease, and the sum designated as the Initial Estimated Additional Rent ($[********]),
in cash or cash equivalents.  Tenant’s deposit of the foregoing items, together with the amount of the Security Deposit ($[********])
specified in Section 1.10 above shall constitute a condition precedent to the Landlord’s obligations under this Lease.

 

2.4             Covenants Concerning Rental Payments. Tenant shall pay the Rent promptly when due, without notice or demand, and without any
deduction or setoff. No payment by Tenant, or receipt or acceptance by Agent or Landlord, of a lesser amount than the correct Rent shall
be deemed to be other than a payment on account, nor shall any endorsement or statement on any check or letter accompanying any payment
be deemed an accord or satisfaction, and Agent or Landlord may accept such payment without prejudice to Landlord’s right to recover
the balance due or to pursue any other remedy available to Landlord. If the Commencement Date occurs on a day other than the first day
of a calendar month, the Rent due for the first calendar month of the Term shall be prorated on a per diem basis (based on a 365 (366
in leap years) day, 12-month year) and paid to Landlord on the Commencement Date, and the Term will be extended to terminate on the last
day of the calendar month in which the Expiration Date occurs.

 

3.     OPERATING EXPENSES.

 

3.1             Definitional Terms Relating to Additional Rent. For purposes of this Section and other relevant provisions of the Lease:

 

3.1.1.               Operating Expenses. The term “Operating Expenses” shall mean, except as may be provided in
this paragraph, all costs and expenses paid or incurred by Landlord with respect to, or in connection with, the ownership, repair, restoration,
maintenance and operation of the Property. Operating Expenses may include, but are not limited to, any or all of the following: (i) services
provided directly by employees of Landlord or Agent in connection with the operation, maintenance or rendition of other services to or
for the Property (including, but not limited to, the Common Areas, as defined below); (ii) to the extent not separately metered, billed,
or furnished, all charges for utilities and services furnished to either or both of the Property and the Premises, including, without
limitation, the Common Areas, together with any taxes on such utilities; (iii) a market rate based on local market conditions for commercial
property, casualty, general liability, umbrella liability, boiler, flood, earthquake, terrorism and all other types of insurance typically
provided by Landlord and relating to the Property; and all deductibles required to be paid by Landlord pursuant to insurance policies
required to be maintained by Landlord under this Lease; the amount of any deductible(s) if and to the extent a loss(es) is incurred and
the applicable insurer(s) applies the deductible before making payment of any available insurance proceeds; (iv) management fees to Landlord
or Agent or other persons or management entities actually involved in the management and operation of the Property, in which management
fee shall not exceed three percent (3%) of net base rent, (v) any capital improvements made by, or on behalf of, Landlord to the Property
that: (a) are designed to reduce Operating Expenses; and/or (b) required to keep the Property in compliance with all governmental laws,
rules and regulations applicable thereto, from time to time, the cost of which capital improvements shall be reasonably amortized by Landlord
(collectively “Qualifying Capital Improvements”); (vi) all professional fees incurred in connection with the operation,
management and maintenance of the Property; (vii) Taxes, (as hereinafter defined); and (viii) dues, fees or other costs and expenses,
of any nature, due and payable to any association or comparable entity to which Landlord, as owner of the Property, is a member or otherwise
belongs and that governs or controls any aspect of the ownership and operation of the Property; (ix) any real estate taxes and common
area maintenance expenses levied against, or attributable to, the Property under any declaration of covenants, conditions and restrictions,
reciprocal easement agreement or comparable arrangement that encumbers and benefits the Property and other real property (e.g., a business
park); and (x) all costs and expenses incurred to maintain, repair and replace all or any of the Common Areas. Upon request by Tenant,
after November 1, 2022, the Landlord will provide to the Tenant the names, addresses, costs and copies of all contracts, of service providers,
suppliers and contactors which are included in the Operating Expenses, and Tenant will have the option of substituting alternative service
providers, suppliers and contractors providing equivalent or superior service.

 

    -3- 

     

    

 

3.1.2.               Taxes. The term “Taxes,” shall mean (i) all governmental taxes, assessments, fees and charges
of every kind or nature (other than Landlord’s income taxes), whether general, special, ordinary or extraordinary, due at any time
or from time to time, during the Term and any extensions thereof, in connection with the ownership, leasing, or operation of the Property,
or of the personal property and equipment located therein or used in connection therewith; and (ii) any reasonable expenses incurred by
Landlord in reviewing and contesting either or both of (x) such taxes or assessments and (y) the assessed value of the Property. For purposes
hereof, Tenant shall be responsible for the payment of its Proportionate Share of all Taxes that are due and payable at any time during
the Term, regardless of when such Taxes may have accrued (it being understood that Tenant shall be responsible for its Proportionate Share
of Taxes on a so-called “cash” basis, as opposed to a so-called “accrual” basis). Such obligation shall survive
the termination or expiration of this Lease. Tenant will not be entitled to tax appeal refunds if in default or if any tax appeal fees
are unpaid.

 

3.1.3.               Operating Year. The term “Operating Year” shall mean the calendar year commencing January 1st of
each year (including the calendar year within which the Commencement Date occurs) during the Term.

 

3.2             Payment of Operating Expenses. Tenant shall pay, as Additional Rent and in accordance with the requirements set forth herein,
Tenant’s Proportionate Share of the Operating Expenses. Additional Rent commences to accrue upon the Commencement Date. The Tenant’s
Proportionate Share of Operating Expenses payable hereunder for the Operating Years in which the Term begins and ends shall be prorated
to correspond to that portion of said Operating Years occurring within the Term. Tenant’s Proportionate Share of Operating Expenses
and any other sums due and payable under this Lease shall be adjusted upon receipt of the actual bills therefor, and the obligations of
this Section shall survive the termination or expiration of the Lease. The Landlord will provide the Tenant an itemized listing
of actual Operating Expenses and costs no less than every 3 months, upon Tenants request.

 

3.3             Payment of Additional Rent. Landlord shall have the right to reasonably estimate the Operating Expenses for each Operating
Year. Upon Landlord’s or Agent’s notice to Tenant of such estimated amount, Tenant shall pay, on the first day of each month
during that Operating Year, an amount (the “Estimated Additional Rent”) equal to the estimate of the Tenant’s
Proportionate Share of Operating Expenses divided by 12 (or the fractional portion of the Operating Year remaining at the time Landlord
delivers its notice of the estimated amounts due from Tenant for that Operating Year). If the aggregate amount of Estimated Additional
Rent actually paid by Tenant during any Operating Year is less than Tenant’s actual ultimate liability for Operating Expenses for
that particular Operating Year, Tenant shall pay the deficiency within thirty (30) days of Landlord’s written demand therefor. If
the aggregate amount of Estimated Additional Rent actually paid by Tenant during a given Operating Year exceeds Tenant’s actual
liability for such Operating Year (“Excess Additional Rent”), the Excess Additional Rent shall be credited against
the Estimated Additional Rent next due from Tenant after Landlord’s determination that Excess Additional Rent has been paid by Tenant;
provided, however, in the event that Tenant pays Excess Additional Rent during the final Lease Year, then upon the expiration of the Term,
and determination, by Landlord, of the actual amount of Excess Additional Rent, Landlord or Agent shall pay Tenant the then-applicable
Excess Additional Rent.

 

    -4- 

     

    

 

3.4             Auditing of Operating Expenses. As soon as is reasonably practical after each Operating Year, Landlord shall provide Tenant
with a statement (a “Statement”) setting forth Tenant’s actual ultimate liability for its Proportionate Share
of Operating Expenses for the subject Operating Year. If Tenant disputes the amount set forth in a given Statement, Tenant shall have
the right, at Tenant’s sole expense, to cause Landlord’s books and records with respect to the particular Operating Year that is the subject
of that particular Statement to be audited (the “Audit”) by a certified public accountant mutually acceptable to Landlord
and Tenant (the “Accountant”), provided Tenant (i) has not defaulted under this Lease and failed to cure such default
on a timely basis and (ii) delivers written notice (an “Audit Notice”) to Landlord on or prior to the date that is
sixty (60) days after Landlord delivers the Statement in question to Tenant (such 60-day period, the “Response Period”).
Any Statement shall be final and binding upon Landlord and Tenant and shall, as between the parties, be conclusively deemed correct, at
the end of the applicable Response Period, unless prior thereto, Tenant timely delivers an Audit Notice with respect to the then-applicable
Statement. If Tenant timely delivers an Audit Notice, Tenant must commence such Audit within sixty (60) days after the Audit Notice is
delivered to Landlord, and the Audit must be completed within thirty (30) days of the date on which it is begun. The Audit shall take
place at the offices of Landlord where its books and records are located, at a mutually convenient time during Landlord’s regular business
hours. Before conducting the Audit, Tenant must pay the full amount of Operating Expenses billed under the Statement then in question.
Tenant hereby covenants and agrees that the Accountant engaged by Tenant to conduct the Audit shall be compensated on an hourly basis
and shall not be compensated based upon a percentage of overcharges it discovers. Such Audit shall be deemed final and binding upon Landlord
and Tenant and shall, as between the parties, be conclusively deemed correct. If the results of the Audit reveal that the Tenant’s
ultimate liability for Operating Expenses does not equal the aggregate amount of Estimated Additional Rent actually paid by Tenant to
Landlord during the Operating Year that is the subject of the Audit, the appropriate adjustment shall be made between Landlord and Tenant,
and any payment required to be made by Landlord or Tenant to the other shall be made within thirty (30) days after the Accountant’s
determination. In no event shall this Lease be terminable nor shall Landlord be liable for damages based upon any disagreement regarding
an adjustment of Operating Expenses. Tenant agrees that the results of any Audit shall be kept strictly confidential by Tenant and shall
not be disclosed to any other person or entity except as authorized in Paragraph 25.13.

 

4.     USE OF PREMISES AND COMMON AREAS; SIGNAGE; SECURITY DEPOSIT.

 

4.1               Use
of Premises and Property. The Premises shall be used by the Tenant for the Permitted Use and for no other purpose whatsoever. Landlord
makes no representation that this use is compliant with Law. Tenant acknowledges it is solely responsible for verifying the use is permitted,
and for seeking any permits, licenses, or variances necessary to conduct its business. Tenant shall not, at any time, use or occupy, or
suffer or permit anyone to use or occupy, the Premises, or do or permit anything to be done in the Premises or the Property, in any manner
that may (a) violate any “Certificate of Occupancy” (or comparable permit or license) for either or both of the Premises and
the Property; (b) cause, or be liable to cause, injury to, or in any way impair the value or proper utilization of, all or any portion
of the Property or any equipment, facilities or systems therein; (c) constitute a violation of the laws and requirements of any Laws (as
hereinafter defined), or the requirements of insurance bodies or the rules and regulations of the Property, including, but not limited
to, any covenant, condition or restriction encumbering the Property or otherwise in breach of any of the terms and conditions of this
Lease; (d) exceed the load bearing capacity of the floor of the Premises; (e) impair the character, reputation or appearance of the Property;
or (f) unreasonably inconvenience or disrupt the operations or tenancies of other tenants or permitted users of the Property.

 

4.2             Use of Common Areas. As used herein, “Common Areas” shall mean all areas within the Property that are available
for the common use of tenants of the Property and that are not leased or held for the exclusive use of Tenant or other tenants or licensees,
including, but not limited to, parking areas, driveways, sidewalks, loading areas, access roads, corridors, landscaping and planted areas.
Tenant shall have the nonexclusive right to use the Common Areas for the purposes intended, subject to such reasonable rules and regulations
as Landlord may uniformly establish from time to time. Tenant shall not interfere with the rights of any or all of Landlord, other tenants
or licensees, or any other person entitled to use the Common Areas. Without limitation of the foregoing, Tenant shall not park or store
any vehicles or trailers on, or conduct truck loading and unloading activities in, the Common Areas in a manner that unreasonably disturbs,
disrupts or prevents the use of the Common Areas by any or all of Landlord, other tenants or licensees or other persons entitled to use
the Common Areas. Landlord, from time to time, may change any or all of the size, location, nature and use of any of the Common Areas
although such changes may result in inconvenience to Tenant, so long as such changes do not materially and adversely affect Tenant’s
use of the Premises. In addition to the foregoing, Landlord may, at any time, close or suspend access to any Common Areas to perform any
acts in the Common Areas as, in Landlord’s reasonable judgment, are desirable to improve or maintain either or both of the Premises
and the Property, or are required in order to satisfy Landlord’s obligations under this Lease; provided, however, that Landlord
shall use reasonable efforts to limit any disruption of Tenant’s use and operation of the Premises in connection therewith. Notwithstanding
anything contained in this Lease to the contrary, if at any time, Landlord determines, in its sole discretion, that the parking areas
at the Property are or have become overburdened, Landlord may allocate parking on a proportionate basis or assign parking spaces among
all tenants at the Property.

 

4.3             Signage. Tenant shall not affix any sign of any size or character to any portion of the Property, without prior written approval
of Landlord, which approval shall not be unreasonably withheld or delayed, and then only in compliance with all applicable Laws, Easements
and Landlord’s list of signage specifications. Tenant shall remove all signs of Tenant upon the expiration or earlier termination
of this Lease and immediately repair any damage to either or both of the Property and the Premises caused by, or resulting from, such
removal, or the installation or existence of the signs.

 

    -5- 

     

    

 

4.4             Security Deposit. Prior to the Commencement Date, Tenant shall deposit with Landlord or Agent the Security Deposit, in cash,
representing security for the performance by Tenant of the covenants and obligations hereunder. Upon Tenant’s delivery to Landlord
or Agent of an irrevocable letter of credit (“L/C”) issued by a national U.S. banking institution (the “Issuer”)
acceptable to Landlord, in its sole, but reasonable discretion, and in form and substance reasonably satisfactory to Landlord, Landlord
shall return to Tenant the cash being held by Landlord as the Security Deposit.. Tenant specifically acknowledges and agrees that Landlord
shall not be deemed to act unreasonably if Landlord refuses to accept an L/C issued by a financial institution that has been placed in
receivership or declared insolvent by the FDIC, or has accepted any federal assistance from the Troubled Assets Relief Program or any
similar or comparable program or legislation. In addition to any other items that Landlord may reasonably require, the L/C shall: (a)
name Landlord as its beneficiary; (b) have an initial term of no less than one year; (c) automatically renew for one year periods unless
the issuer provides Landlord with at least 60 days’ advance written notice that the L/C will not be renewed; (d) the L/C shall permit
partial draws; (e) the sole and exclusive condition to any draw on the L/C shall be that Landlord certifies to the issuer that either
or both of the following is/are true: (i) Tenant is the debtor in a pending bankruptcy proceeding; and (ii) Tenant is in Default (as hereinafter
defined) of this Lease; and (f) be transferable to Successor Landlords (defined below) on as many occasions as desired. In the event that
any of the following occurs: (w) the expiration date of any L/C occurs before the Expiration Date, (x) the issuer has advised Landlord
that the issuer will not automatically renew the L/C; (y) Tenant fails to deliver to Landlord at least forty-five (45) days prior to the
expiration of such L/C either (A) an amendment thereto extending the expiration date of such L/C for not less than twelve (12) months,
or (B) a new L/C, in form and substance in accordance with (a) through (f) above and otherwise satisfactory to Landlord (in its reasonable
discretion); or (z) the credit rating of the Issuer is down-graded below an A3 rating by Moody’s or an A- rating with Standard &
Poor’s and Landlord has provided Tenant written notice demanding the replacement of the L/C and Tenant has failed to do so within
30 days of receipt of such written demand. Then, Landlord may draw on the L/C then in Landlord’s possession, and thereafter (in
addition to any other remedies available to Landlord under this Lease) apply the proceeds of such L/C in whatever manner or for whatever
purpose Landlord reasonably deems appropriate in the event that Tenant fails to timely comply with any or all of the covenants and obligations
imposed on Tenant under the Lease. Notwithstanding the times to cure the defects noted above, Landlord may draw upon the L/C prior to
its expiration even if within the notice period and so any notice period stated above shall be the earlier of the times periods provided
above and three (3) business days prior to the expiration of the L/C. In the event that, upon the occurrence of any of the instances described
in (w) through (z), Tenant delivers to Landlord a new L/C that satisfies the requirements of the Section 4.4, then upon Landlord’s
receipt of such new L/C, Landlord shall promptly release the original L/C to Tenant. The Security Deposit shall be held by Landlord or
Agent, without interest, in favor of Tenant; provided, however, that no trust relationship shall be deemed created thereby; the Security
Deposit may be commingled with other assets of Landlord; and Landlord shall not be required to pay any interest on the Security Deposit.
If Tenant defaults in the performance of any of its covenants hereunder, Landlord or Agent may, without notice to Tenant, may either or
both, as applicable, (A) apply all or any part of the Security Deposit, if in the form of cash, or (B) draw on the L/C and apply the proceeds
in whatever manner Landlord deems appropriate, to the cure of such default or the payment of any sums then due from Tenant under this
Lease (including, but not limited to, any and all amounts due under this Lease as a consequence of termination of the Lease or Tenant’s
right to possession), in addition to any other remedies available to Landlord. In the event the Security Deposit is so applied, Tenant
shall, upon demand, immediately deposit with Landlord or Agent a sum equal to the amount so used. If Tenant fully and faithfully complies
with all the covenants and obligations hereunder, the Security Deposit (for any balance thereof) together with Landlord’s written
consent to the cancellation of the L/C, shall be returned to Tenant within thirty (30) days after the later to occur of (i) the date the
Term expires or terminates or (ii) delivery to Landlord of possession of the Premises. Landlord may deliver the Security Deposit to any
lender with a mortgage lien encumbering the Property or to any Successor Landlord (defined below), and thereupon Landlord and Agent shall
be discharged from any further Liability with respect to the Security Deposit. In the event that Landlord exercises its right under the
preceding sentence, Tenant shall fully cooperate with Landlord, in all reasonable respects, to cause the L/C to be assigned and conveyed
to or reissued to, such purchaser of Successor Landlord, as the case may be, and Tenant shall bear any expenses incurred in connection
therewith.

 

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5.     CONDITION AND DELIVERY OF PREMISES.

 

5.1             Condition of Premises. Tenant agrees that Tenant is familiar with the condition of both the Premises and the Property, and
Tenant hereby accepts the foregoing on an “AS-IS,” “WHERE-IS” basis, except as is otherwise expressly and specifically
described on Exhibit D attached hereto and incorporated herein by this reference, it being understood that, if Landlord has agreed
to perform any tenant improvements in or to the Premises in consideration of Tenant’s entry into this Lease (collectively, “Landlord’s
Work”), all of Landlord’s Work shall be described on Exhibit D. Tenant acknowledges that neither Landlord nor Agent,
nor any representative of Landlord, has made any representation or warranty as to the condition of the foregoing or the suitability of
the foregoing for Tenant’s intended use. Tenant represents and warrants that Tenant has made its own inspection of the foregoing,
and Landlord shall provide Tenant with an opportunity to inspect Premises and Property a minimum of five (5) days prior to the Effective
Date of the Lease. Neither Landlord nor Agent shall be obligated to make any repairs, replacements or improvements (whether structural
or otherwise) of any kind or nature to the foregoing in connection with, or in consideration of, this Lease, except as expressly and specifically
set forth in this Lease, including, but not limited to, Exhibit D.

 

5.2             Delay in Commencement. If Landlord fails to deliver possession of the Premises to Tenant on the Commencement Date, the Landlord’s
sole liability shall be to provide Tenant an additional month of rent abatement at the beginning of the Lease for each full month of delay
to deliver possession. The obligations of Tenant under the Lease shall not be affected thereby, except that the Commencement Date shall
be delayed until Landlord delivers possession of the Premises to Tenant, and the Term shall be extended by a period equal to the number
of days of delay in delivery of possession of the Premises to Tenant, plus the number of days necessary to end the Term on the last day
of a month.

 

5.3             Confirmation of Commencement Date. Upon Landlord’s delivery of possession, and as a condition precedent to such delivery,
of the Premises to Tenant, Tenant shall deliver to Landlord a Confirmation of Commencement Date in substantially the form attached hereto
as Exhibit E.

 

5.4             Early Access. From and after completion of Landlord’s Work as specifically described on Exhibit D attached hereto,
and continuing up and until the Commencement Date (the “Early Access Period”), Landlord shall permit Tenant to enter
into the Premises for the sole purpose of completing Landlord- approved work to fixture the Premises for Tenant’s business operations,
which shall be performed at Tenant’s sole cost and expense and shall be subject to all applicable ordinances and building codes
or other laws governing Tenant’s right to occupy or perform in the Premises prior to the Commencement Date.  Such entry into
the Premises shall also be subject to the requirements that (1) prior to Tenant or any of the Tenant Parties obtaining access or entry
to the Premises, Tenant must first satisfy the Access Conditions (as hereinafter defined), and (2) Tenant and any and all Tenant
Parties shall not disturb the tenancies of any tenants near the Premises or unreasonably interfere with the business operations of such
tenants.  Tenant agrees that any such entry onto the Premises during the Early Access Period shall be deemed to be under all of the
terms, covenants, conditions and provisions of the Lease (except as to the covenant to pay Rent).  Tenant further agrees that Landlord
shall not be liable in any way for any injury or death to any person or persons, loss or damage to any of Tenant’s property on the
Premises or loss or damage to property placed thereon prior to the Commencement Date, the same being at Tenant’s sole risk and expense. 
Any such access or performance in the Premises prior to the Commencement Date shall also be subject to (A) Tenant first providing to Landlord
the Certificates of Insurance required under this Lease and (B) Tenant’s payment to Landlord of any amounts (e.g., the Security
Deposit required under this Lease) required to be paid by Tenant to Landlord simultaneously with the execution and delivery of this Lease
(the conditions described in clauses (A) and (B) are collectively referred to herein as the “Access Conditions”). Tenant
shall place all utilities into their name prior to the commencement of the Early Access Period.

 

6.     SUBORDINATION; ESTOPPEL CERTIFICATES; ATTORNMENT.

 

6.1             Subordination and Attornment. This Lease is and shall be subject and subordinate at all times to (a) all ground leases or underlying
leases that may now exist or hereafter be executed affecting either or both of the Premises and the Property and (b) any mortgage or deed
of trust that may now exist or hereafter be placed upon, and encumber, any or all of (x) the Property; (y) any ground leases or underlying
leases for the benefit of the Property; and (z) all or any portion of Landlord’s interest or estate in any of said items. Tenant
shall execute and deliver, within ten (10) days of Landlord’s request, and in the form reasonably requested by Landlord (or its
lender), any documents evidencing the subordination of this Lease. Tenant hereby covenants and agrees that Tenant shall attorn to any
successor to Landlord.

 

6.2             Estoppel Certificate. Tenant agrees, from time to time and within ten (10) days after request by Landlord, to deliver to Landlord,
or Landlord’s designee, an estoppel certificate stating such matters pertaining to this Lease as may be reasonably requested by
Landlord. Failure by Tenant to timely execute and deliver such certificate shall constitute a Default, as defined below, after notice
thereof and an opportunity to cure such failure to timely perform.

 

    -7- 

     

    

 

6.3             Transfer by Landlord. In the event of a sale or conveyance by Landlord of the Property, the same shall operate to release Landlord
from any future liability for any of the covenants or conditions, express or implied, herein contained in favor of Tenant and first arising
or accruing after the effective date of Landlord’s transfer of its interest in the Premises, and in such event Tenant agrees to
look solely to Landlord’s successor in interest (“Successor Landlord”) with respect thereto and agrees to attorn
to such successor, after Landlord has provided Tenant written notice thereof.

 

7.     QUIET ENJOYMENT.

 

Subject to the provisions of this Lease,
so long as Tenant pays all of the Rent and performs all of its other obligations hereunder, Tenant shall not be disturbed in its possession
of the Premises by Landlord, Agent or any other person lawfully claiming through or under Landlord; provided, however, in addition to
Landlord’s rights elsewhere in this Lease, Landlord and Landlord’s agents, employees, contractors and representatives shall
be provided reasonable access to the Premises such that Landlord and Landlord’s agents, employees, contractors and representatives
may perform the General Maintenance Services (as hereinafter defined) without undue interruption, delay or hindrance. This covenant shall
be construed as a covenant running with the Property and is not a personal covenant of Landlord. Tenant shall not unreasonably interrupt,
delay, prevent or hinder the performance of the General Maintenance Services by or on behalf of Landlord. Notwithstanding the foregoing,
however, Tenant acknowledges and agrees that Landlord shall have the unfettered and unilateral right to use portions of the Common Areas
(inclusive of the roof of the Building) for such purposes and uses as Landlord may desire; provided, however, that in all events and under
all circumstances, Landlord’s use of any portion of the Common Areas shall not interfere, in any material respect, with any or all
of (a) Tenant’s rights to occupy and use the Common Areas (in the manner and for the purposes contemplated hereunder); (b) Tenant’s
right to utilize the vehicular parking areas located on the Common Areas; and (c) Tenant’s right(s) of access, ingress and egress
to and from the Common Areas. Any increase in Operating Expenses caused by, or the result of, Landlord’s use of the Common Areas
will not be charged to the Tenant.

 

8.     ASSIGNMENT AND SUBLETTING.

 

Tenant shall not (a) assign (whether
directly or indirectly), in whole or in part, this Lease, or (b) allow this Lease to be assigned by dissolution, which dissolution shall
be deemed an assignment for purposes of this Lease, or (c) mortgage Tenant’s interest in either or both of the Premises and this
Lease or pledge its interest in this Lease, or (d) sublet the Premises, in whole or in part, without (in the case of any or all of (a)
through (d) above) the prior written consent of Landlord (and Landlord’s lender, if applicable), which consent shall not be unreasonably
withheld or delayed. In making its determination to provide or withhold its consent, it shall be reasonable for Landlord to take into
consideration both the business experience and the financial condition of the surviving entity that shall constitute its tenant after
the occurrence of any of (a) through (d) above, and Landlord may impose reasonable conditions precedent to the issuance of its consent
(e.g. delivery of a guarantee or other collateral, whether in the form of a security deposit or otherwise). Tenant may, however, assign
this Lease or sublease a portion of the Premises to a wholly-owned subsidiary or through merger to a new controlling corporation, provided
that Tenant advises Landlord (and Landlord’s lender, if applicable), in writing, in advance, and otherwise complies with the succeeding
provisions of this Section. In no event shall any assignment or sublease ever release Tenant or any guarantor from any obligation
or liability hereunder; and in the case of any assignment, Landlord shall retain all rights with respect to the Security Deposit. Any
purported assignment or sublease made without the prior written consent of Landlord (and Landlord’s lender, if applicable) shall
be absolutely null and void. No assignment of this Lease shall be effective and valid unless and until the assignee executes and delivers
to Landlord (and Landlord’s lender, if applicable) any and all documentation reasonably required by Landlord (and Landlord’s
lender, if applicable) in order to evidence assignee’s assumption of all obligations of Tenant hereunder. Regardless of whether
or not an assignee or sublessee executes and delivers any documentation to Landlord pursuant to the preceding sentence, any assignee or
sublessee shall be deemed to have automatically attorned to Landlord in the event of any termination of this Lease. If this Lease is assigned,
or if the Premises (or any part thereof) are sublet or used or occupied by anyone other than Tenant, whether or not in violation of this
Lease, Landlord or Agent may (without prejudice to, or waiver of Landlord’s rights), collect Rent from the assignee, subtenant or
occupant.

 

9.     COMPLIANCE WITH LAWS.

 

9.1             Compliance with Laws. Tenant shall, at its sole expense (regardless of the cost thereof), comply with all local, state and
federal laws, rules, regulations and requirements now or hereafter in force and all judicial and administrative decisions in connection
with the enforcement thereof (collectively, “Laws”), pertaining to either or both of the Premises and Tenant’s
use and occupancy thereof, and including, but not limited to, all Laws concerning or addressing matters of an environmental nature. If
any license or permit is required for the conduct of Tenant’s business in the Premises, Tenant, at its expense, shall procure such
license prior to the Commencement Date, and shall maintain such license or permit in good standing throughout the Term. Tenant shall give
prompt notice to Landlord of any written notice it receives of the alleged violation of any Law or requirement of any governmental or
administrative authority with respect to either or both of the Premises and the use or occupation thereof.

 

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9.2             Hazardous Materials. If, at any time or from time to time during the Term (or any extension thereof), any Hazardous Material
(defined below) is generated, transported, stored, used, treated or disposed of at, to, from, on or in either or both of the Premises
and the Property by, or as a result of any act or omission of, any or all of Tenant and any or all of Tenant’s Parties (defined
below): (i) Tenant shall, at its own cost, at all times comply (and cause all Tenant’s Parties to comply) with all Laws relating
to Hazardous Materials, and Tenant shall further, at its own cost, obtain and maintain in full force and effect at all times all permits
and other approvals required in connection therewith; (ii) Tenant shall promptly provide Landlord or Agent with complete copies of all
communications, permits or agreements with, from or issued by any governmental authority or agency (federal, state or local) or any private
entity relating in any way to the presence, release, threat of release, or placement of Hazardous Materials on or in the Premises or any
portion of the Property, or the generation, transportation, storage, use, treatment, or disposal at, on, in or from the Premises, of any
Hazardous Materials; (iii) Landlord, Agent and their respective agents and employees shall have the right, after reasonable notice to
Tenant, to either or both (x) enter the Premises and (y) conduct appropriate tests, at Tenant’s expense, for the purposes of ascertaining
Tenant’s compliance with all applicable Laws or permits relating in any way to the generation, transport, storage, use, treatment,
disposal or presence of Hazardous Materials on, at, in or from all or any portion of either or both of the Premises and the Property;
and (iv) upon written request by Landlord or Agent, Tenant shall cause to be performed, and shall provide Landlord with the results of,
reasonably appropriate tests of air, water or soil to demonstrate that Tenant complies with all applicable Laws or permits relating in
any way to the generation, transport, storage, use, treatment, disposal or presence of Hazardous Materials on, at, in or from all or any
portion of either or both of the Premises and the Property. At Tenant’s sole cost, Tenant will at all times during the Term (and
at all times thereafter that Tenant remains in possession of the Premises) take all reasonable measures to prevent the release or discharge
of Hazardous Materials at or from the Premises, which measures shall include, but are not limited to, making regular inspections of all
areas, containers and apparatus in which Hazardous Materials are stored, used, generated or otherwise present, and installing and maintaining
appropriate containment and secondary containment devices. This Section does not authorize the generation, transportation, storage, use,
treatment or disposal of any Hazardous Materials at, to, from, on or in the Premises in contravention of this Section. Tenant covenants
to investigate, clean up and otherwise remediate, at Tenant’s sole expense, any release of Hazardous Materials caused, contributed
to, or created by any or all of (A) Tenant and (B) any or all of Tenant’s officers, directors, members, managers, partners, invitees,
agents, employees, contractors or representatives (collectively, “Tenant’s Parties”) during the Term. Such investigation
and remediation shall be performed only after Tenant has obtained Landlord’s prior written consent; provided, however, that Tenant
shall be entitled to respond (in a reasonably appropriate manner) immediately to an emergency without first obtaining such consent, if
Tenant promptly thereafter delivers to Landlord written notice of the emergency and the action taken to remedy it. All remediation shall
be performed in strict compliance with Laws and to the reasonable satisfaction of Landlord. Tenant shall not enter into any settlement
agreement, consent decree or other compromise with respect to any claims relating to any Hazardous Materials in any way connected to the
Premises without first obtaining Landlord’s written consent (which consent may be given or withheld in Landlord’s sole, but
reasonable, discretion) and affording Landlord the reasonable opportunity to participate in any such proceedings. As used herein, the
term, “Hazardous Materials,” shall mean any waste, material or substance (whether in the form of liquids, solids or
gases, and whether or not airborne) that is or may be deemed to be or include a pesticide, petroleum, asbestos, polychlorinated biphenyl,
radioactive material, urea formaldehyde or any other pollutant or contaminant that is or may be deemed to be hazardous, toxic, ignitable,
reactive, corrosive, dangerous, harmful or injurious, or that presents a risk to public health or to the environment, and that is or becomes
regulated by any Law.

 

The undertakings, covenants
and obligations imposed on Tenant under this Section shall survive the termination or expiration of this Lease.

 

Tenant Disclosure

 

Will Tenant be required to make filings
and notices or obtain permits as required by Federal and/or State regulations for the operations at the Premises? Specifically:

 

	a. SARA Title III Section 312 (Tier II) reports	YES	NO
	b. SARA Title III Section 313 (Tier III) Form reports	YES	NO

 

    -9- 

     

    

 

	c. NPDES or SPDES stormwater discharge permit	YES	NO
	d. EPA Hazardous Waste Generator ID Number	YES	NO

List all Hazardous Materials that will
be used, stored, handled, generated and/or otherwise present at the Premises. Routine office and cleaning supplies are not included. Provide
a detailed exhibit if necessary.

	Hazardous Materials	Approximate Annual Quantity Used or Generated	Storage Container(s) Used ( Drums, Cartons, Above Ground Tanks, etc.)
	[********]	[********]	[********]
	[********]	[********]	[********]
	[********]	[********]	[********]
	[********]	[********]	[********]
	[********]	[********]	[********]
	[********]	[********]	[********]
	[********]	[********]	[********]

  

Tenant has answered
the Tenant Disclosure, the nature of Tenant’s proposed business operations at the Premises, which is intended to be, and shall
be, relied upon by Landlord. From time to time during the Term (but no more often than once in any twelve-month period unless Tenant
is in default hereunder or unless Tenant assigns this Lease or subleases all or any portion of the Premises, whether or not in accordance
with this Section), Tenant shall provide an updated and current Tenant Disclosure upon Landlord’s request. 

 

10.   INSURANCE.

 

10.1           Insurance to be Maintained by Landlord. Landlord shall maintain: (a) a commercial property insurance policy covering the Property
(at its full replacement cost), but excluding Tenant’s personal property; (b) commercial general liability insurance covering Landlord
for claims arising out of liability for bodily injury, death, personal injury, advertising injury and property damage occurring in and
about the Property and otherwise resulting from any acts and operations of Landlord, its agents and employees; (c) business income/rental
value insurance; and (d) any other insurance coverage deemed appropriate by Landlord or required by Landlord’s lender. All of the
coverages described in (a) through (d) shall be determined from time to time by Landlord, in its sole discretion. All insurance maintained
by Landlord shall be in addition to and not in lieu of the insurance required to be maintained by the Tenant. The requirements of this
Section are referred to as the “Landlord Insurance Requirements”.

 

10.2           Insurance to be Maintained by Tenant. Tenant shall purchase, at its own expense, and keep in force at all times from and after
the date of this Lease, the policies of insurance set forth below (collectively, “Tenant’s Policies”). All Tenant’s
Policies shall (a) be issued by an insurance company with a Best’s rating/financial size category of A/VIII or better and otherwise
reasonably acceptable to Landlord and shall be licensed to do business in the state in which the Property is located; (b) provide for
deductible amounts that are reasonably acceptable to Landlord (and its lender, if applicable) and (c) otherwise be in such form, and include
such coverages, as Landlord may reasonably require. The Tenant’s Policies described in (i) and (ii) below shall (1) provide coverage
on an occurrence basis; (2) name Landlord (and its lender, if applicable) as an additional insured; (3) provide coverage, to the extent
insurable, for the indemnity obligations of Tenant under this Lease; (4) contain a separation of insured parties provision; (5) be primary,
not contributing with, and not in excess of, coverage that Landlord may carry; and (6) provide coverage with no exclusion for a pollution
incident arising from a hostile fire. Certified copies of Tenant’s Policies (or, at Landlord’s option, Certificates of Insurance
and applicable endorsements, including, without limitation, an “Additional Insured Managers or Landlords of Premises” endorsement)
shall be delivered to Landlord prior to the Commencement Date and renewals thereof shall be delivered to Landlord’s notice addresses
at least thirty (30) days prior to the applicable expiration date of each Tenant’s Policy. In the event that Tenant fails, at any
time or from time to time, to comply with the requirements of the preceding sentence, Landlord may (x) order such insurance and charge
the cost thereof to Tenant, which amount shall be payable by Tenant to Landlord upon demand, as Additional Rent or (y) impose on Tenant,
as Additional Rent, a monthly delinquency fee, for each month during which Tenant fails to comply with the foregoing obligation, in an
amount equal to ten percent (10%) of the Base Rent then in effect. In the event of any incident which could give rise to a claim under
the insurance policies described in this Section, Tenant shall advise Landlord in writing within twenty-four (24) hours, providing as
much detail about the incident as is known at the time. Following such initial notice, and at Landlord’s request, Tenant shall promptly
provide Landlord any documents or information requested by Landlord related to the incident. Tenant shall provide written notice to Landlord
in accordance with this Lease prior to the cancelation or material modification of any of Tenant’s Policies.

 

    -10- 

     

    

 

Tenant shall purchase and maintain,
throughout the Term, a Tenant’s Policy(ies) of (i) commercial general liability insurance, including personal injury and property
damage, in the amount of not less than $2,000,000.00 per occurrence, and $5,000,000.00 annual general aggregate, per location (these limits
may be achieved by a combination of a primary policy and an excess or umbrella liability policy); (ii) business auto liability insurance
covering Tenant, against any personal injuries or deaths of persons and property damage based upon or arising out of the ownership, use,
occupancy or maintenance of a motor vehicle at the Premises and all areas appurtenant thereto in the amount of not less than $1,000,000,
combined single limit; (iii) commercial property insurance covering Tenant’s personal property (at its full replacement cost); (iv)
workers’ compensation insurance per the applicable state statutes covering all employees of Tenant ; and (v) if Tenant handles,
stores or utilizes Hazardous Materials in its business operations, pollution legal liability insurance with limits acceptable to Landlord.

 

10.3           Waiver of Subrogation.
Notwithstanding anything to the contrary in this Lease, each of Landlord and Tenant hereby waives any and all claims against the other
for Losses to the extent they are insured against or required to be insured against under this Lease; including, but not limited to, Losses,
deductibles or self-insured retentions covered by Landlord’s or Tenant’s commercial property, business income/extra expense/rental
value insurance, commercial general liability, business auto liability, workers’ compensation or employers’ liability policies.
The risk to be borne by each of Landlord and Tenant shall also include the satisfaction of any deductible (or self-insured retention)
amounts required amounts to be paid under the applicable insurance carried by the party incurring the Loss, and each of Landlord and Tenant
agrees that the other shall not be responsible for satisfaction of such deductible (or self-insured amount); provided, however, that this
limitation will not preclude Landlord from including deductibles it incurs as an Operating Expense as described above. The waivers set
forth in this Section shall apply if the damage would have been covered by a normal and customary “all risks” or “special
form” property insurance policy, even if the party suffering the damage fails to maintain such coverage. Each of Landlord’s
and Tenant’s respective insurance policies shall include a waiver of all rights of subrogation by the insurance carrier against
the other party, its agents and employees. The requirements set forth in Sections
10.2, and 10.3 are collectively referred to as the “Tenant Insurance Requirements”.

 

11.   ALTERATIONS.

 

Tenant may, from time to time, at its
expense, make alterations or improvements in and to the Premises (hereinafter collectively referred to as “Alterations”),
provided that Tenant first obtains the written consent of Landlord. All of the following shall apply with respect to all Alterations:
(a) the Alterations are non-structural and the structural integrity of the Property shall not be affected; (b) the Alterations are to
the interior of the Premises; (c) the proper functioning of the mechanical, electrical, heating, ventilating, air-conditioning (“HVAC”),
sanitary and other service systems of the Property shall not be affected and the usage of such systems by Tenant shall not be increased;
and (d) Tenant shall have appropriate insurance coverage, reasonably satisfactory to Landlord, regarding the performance and installation
of the Alterations. Additionally, before proceeding with any Alterations, Tenant shall (i) at Tenant’s expense, obtain all necessary
governmental approvals, permits and certificates for the commencement and prosecution of Alterations; (ii) if Landlord’s consent
is required for the planned Alteration, submit to Landlord, for its written approval, working drawings, plans and specifications and all
approvals, permits and certificates for the work to be done and Tenant shall not proceed with such Alterations until it has received Landlord’s
approval (if required); and (iii) cause those contractors, materialmen and suppliers engaged to perform the Alterations to deliver to
Landlord certificates of insurance (in a form reasonably acceptable to Landlord) evidencing policies of commercial general liability insurance
and workers’ compensation insurance. Such insurance policies shall satisfy all obligations imposed under Tenant Insurance Requirements.
Tenant, at its sole expense, shall cause the Alterations to be performed in compliance with all applicable approvals, permits, Laws and
requirements of public authorities, and with Landlord’s reasonable rules and regulations or any other restrictions that Landlord
may impose on the Alterations and free of all construction liens and all other liens or encumbrances. Tenant shall cause the Alterations
to be diligently performed in a good and workmanlike manner, using new materials and equipment at least equal in quality and class to
the standards for the Property established by Landlord. With respect to any and all Alterations for which Landlord’s consent is
required, Tenant shall provide Landlord with “as built” plans (upon completion), copies of all construction contracts, governmental
approvals, permits and certificates and proof of payment for all labor and materials, including, without limitation, copies of paid invoices
and final lien waivers. If Landlord’s consent to any Alterations is required, and Landlord provides that consent, then at the time
Landlord so consents, Landlord shall also advise Tenant whether or not Landlord shall require that Tenant remove such Alterations at the
expiration or termination of this Lease. If Landlord requires Tenant to remove the Alterations, then, during the remainder of the Term,
Tenant shall be responsible for the maintenance of appropriate commercial property insurance (consistent with the Tenant Insurance Requirements)
therefor; however, if Landlord shall not require that Tenant remove the Alterations, such Alterations shall constitute Landlord’s
Property (defined below) and Landlord shall be responsible for the insurance thereof, pursuant to the Landlord Insurance Requirements.

 

    -11- 

     

    

 

12.   LANDLORD’S AND TENANT’S PROPERTY.

 

All fixtures, machinery, equipment,
improvements and appurtenances attached to, or built into, the Premises at the commencement of the Term remain a part of the Premises;
shall be deemed the property of Landlord (the “Landlord’s Property”), without compensation or credit to Tenant; and
shall not be removed by Tenant at the Expiration Date unless Landlord requires their removal (including, but not limited to, any Alterations).
Further, any personal property in the Premises on the Commencement Date, movable or otherwise, unless installed and paid for by Tenant,
shall also constitute Landlord’s Property and shall not be removed by Tenant. For purposes of this Lease, any references to “Tenant’s
Property” shall mean any personal property for which Tenant has itself paid or manufactured, together with any machinery and equipment
for which Tenant has paid, including but not limited to Industrial Chillers, Clean Rooms, Specialized Air Handling Systems, Industrial
Gas Distribution Systems, and Commercial Hoods within the Laboratory areas. In no event shall Tenant remove any of the following materials
or equipment without Landlord’s prior written consent (which consent may be given or withheld in Landlord’s sole discretion):
any power wiring or power panels, lighting or lighting fixtures, wall or window coverings, carpets or other floor coverings, heaters,
air conditioners or any other HVAC equipment used for the normal heating, cooling and air handling of the building, fencing or security
gates, or other similar building operating equipment and decorations. At or before the Expiration Date, or the date of any earlier termination,
Tenant, at its expense, shall remove from the Premises all of Tenant’s Property and any Alterations that Landlord requires be removed
as set forth above, and Tenant shall repair (to Landlord’s reasonable satisfaction) any damage to the Premises or the Property resulting
from either or both of such installation and removal. Any other items of Tenant’s Property that remain in the Premises after the
Expiration Date, or following an earlier termination date, may, at the option of Landlord, be deemed to have been abandoned, and in such
case, such items of Tenant’s Property may be retained by Landlord as its property or be disposed of by Landlord, in Landlord’s
sole and absolute discretion and without accountability, at Tenant’s expense. Notwithstanding the foregoing, if Tenant is in default
under the terms of this Lease, Tenant may remove Tenant’s Property from the Premises only upon the express written direction of
Landlord.

 

13.   REPAIRS AND MAINTENANCE.

 

13.1           Tenant Repairs and Maintenance.

 

13.1.1   
Tenant Responsibilities. Except for events of damage, destruction or casualty to the Premises or Property (which are addressed
in the Damage or Destruction Section of this Lease), throughout the Term, Tenant shall, at its sole cost and expense: (i) both
(x) maintain and preserve, in a good and safe condition, repair and appearance (the “Required Condition”), and (y)
perform any and all repairs and replacements required in order to so maintain and preserve, in the Required Condition, the Premises and
the fixtures and appurtenances therein (including, but not limited to, the Premises’ plumbing and HVAC systems, floor/slab, all
doors, overhead or otherwise, glass and levelers located in the Premises or otherwise available in the Property for Tenant’s sole
use; and excluding, however, only those specific components of the Premises for which Landlord is expressly responsible as Landlord Repair
Items (as hereinafter defined)); (ii) except to the extent Landlord elects to repair and maintain the HVAC systems as part of General
Maintenance Services, maintain, in full force and effect, the HVAC Maintenance Contract, as further described below; and (iii) except
to the extent Landlord elects to repair and maintain the overhead door and dock leveler systems as part of General Maintenance Services,
maintain, in full force and effect, a preventative maintenance and service contract with a reputable service provider for annual maintenance
of the overhead door and dock leveler systems of the Premises (the “Overhead Door and Dock Leveler Maintenance Contract”).
In addition to Tenant’s obligations under (i), (ii) and (iii) above, Tenant shall also be responsible for all costs and expenses
incurred to perform any and all repairs and replacements (whether structural or non-structural; interior or exterior; and ordinary or
extraordinary), in and to the Premises and the Property and the facilities and systems thereof, if and to the extent that the need for
such repairs or replacements arises directly or indirectly from any act, omission, misuse, or neglect of any or all of Tenant, any of
its subtenants, any Tenant’s Parties, or others entering into, or utilizing, all or any portion of the Premises for any reason
or purpose whatsoever, including, but not limited to (a) the performance or existence of any Alterations, (b) the installation, use or
operation of Tenant’s Property in the Premises; and (c) the moving of Tenant’s Property in or out of the Property (collectively,
“Tenant-Related Repairs”). All such repairs or replacements required under this Section shall be subject to the supervision
and control of Landlord, and all repairs and replacements shall be made with materials of equal or better quality than the items being
repaired or replaced.

 

    -12- 

     

    

 

13.1.2   
General Maintenance Services. Notwithstanding any of the foregoing, however, from time to time during the Term, Landlord may
elect, in its sole discretion and by delivery of written notice to Tenant, to perform on behalf of Tenant, all or some portion of the
repairs, maintenance, restoration and replacement in and to the Premises required to be performed by Tenant under this Lease (any such
repairs, maintenance, restoration and/or replacement activities that Landlord elects to perform on behalf of Tenant are herein collectively
referred to as “General Maintenance Services”). Tenant shall reimburse Landlord for the cost or value of all General
Maintenance Services provided by Landlord as Additional Rent, simultaneously with the payment of Operating Expenses as part of Estimated
Additional Rent (on a monthly estimated basis subject to annual reconciliation). Unless and until Landlord affirmatively elects to provide
General Maintenance Services, nothing contained herein shall be construed to obligate Landlord to perform any General Maintenance Services
or, except solely with respect to the Landlord Repair Items, to repair, maintain, restore or replace any portion of the Premises. Landlord
may from time to time, in its sole discretion, (x) reduce or expand the scope of the General Maintenance Services that Landlord has elected
to provide or (y) revoke its election to provide any or all of the General Maintenance Services, in either event, upon delivery of not
less than thirty (30) days’ prior written notice to Tenant.

 

13.1.3   
HVAC Maintenance Contract. Tenant shall also maintain, in full force and effect, a preventative maintenance and service contract
with a reputable, fully licensed and insured/bonded third-party service provider for maintenance of the HVAC systems of the Premises (the
“HVAC Maintenance Contract”). The terms and provisions of any HVAC Maintenance Contract shall require that the service
provider maintain the Premises’ HVAC system in accordance with the manufacturer’s recommendations and be reasonably acceptable
to Landlord and shall otherwise in accordance with normal, customary and reasonable practices in the geographic area in which the Premises
is located and for HVAC systems comparable to the Premises’ HVAC system, but not less than quarterly preventative maintenance visits.
If Landlord does not elect to repair and maintain the HVAC systems as part of General Maintenance Services, or revokes such election at
any time after having made such election, then, within 30 days following either (a) the Commencement Date or (b) the date on which Landlord
advises Tenant that Landlord will no longer provide General Maintenance Services for the HVAC system, whichever date is applicable, Tenant
shall procure and deliver to Landlord the HVAC Maintenance Contract. Thereafter, Tenant shall provide to Landlord a copy of renewals or
replacements of such HVAC Maintenance Contract no later than 30 days prior to the then-applicable expiration date of the existing HVAC
Maintenance Contract. If Tenant fails to timely deliver to Landlord the HVAC Maintenance Contract (or any applicable renewal or replacement
thereof), then Landlord shall have the right to contract directly for the periodic maintenance of the HVAC systems in the Premises and
to charge the cost thereof back to Tenant as Additional Rent.

 

13.1.4   
Landlord Repairs. Landlord shall repair, replace and restore the following (collectively, “Landlord Repair Items”):
(a) foundation, exterior and interior load-bearing walls, roof structure and roof covering of the Property and (b) the Common Areas; provided,
however, that in the case of both (a) and (b): (i) all costs and expenses so incurred by Landlord to repair, replace and restore the above
items shall constitute Operating Expenses; provided, however, that with respect to any costs incurred in the replacement context, those
costs shall not constitute an Operating Expense except to the extent that such costs so qualify as Qualifying Capital Improvements; and
(ii) notwithstanding (i) above, in the event that any such repair, replacement or restoration is a Tenant-Related Repair, then Tenant
shall be required to reimburse Landlord for all costs and expenses that Landlord incurs in order to perform such Tenant-Related Repair,
and such reimbursement shall be paid, in full, within 10 days after Landlord’s delivery of demand therefor. Landlord shall provide
a one (1) year warranty for all systems of the building and property.

 

    -13- 

     

    

 

14.    UTILITIES.

 

Tenant shall purchase all utility services
and shall provide for scavenger, cleaning and extermination services. As provided in Section 3 above, utility charges may be included
within Operating Expenses; nevertheless, at Landlord’s election or with Landlord’s consent, (a) Tenant may pay the utility
charges for its Premises directly to the utility or municipality providing such service, and in that event all charges shall be paid by
Tenant before they become delinquent; and (b) Landlord may directly bill Tenant for Tenant’s Proportionate Share of utility expenses
when and as such expenses are incurred. Tenant shall be solely responsible for the repair and maintenance of any meters necessary in connection
with such utility services to the Premises. Tenant’s use of electrical energy in the Premises shall not, at any time, exceed the
capacity of either or both of (x) any of the electrical conductors and equipment in or otherwise servicing the Premises; and (y) the HVAC
systems of either or both of the Premises and the Property.

 

If Landlord is required by law to perform
energy benchmarking of the Premises, Tenant hereby authorizes Landlord to obtain information, from time to time throughout the Term, regarding
Tenant’s utility and energy usage at the Premises directly from the applicable utility providers and Tenant shall execute, within ten
(10) days of Landlord’s request, any additional documentation required by any applicable utility provider evidencing such authorization. 
Further, throughout the Term, (i) within ten (10) days of Landlord’s request, Tenant shall provide to Landlord all requested information
regarding Tenant’s utility, energy and space usage at the Premises, and (ii) upon Landlord’s delivery to Tenant of written request, Tenant
shall deliver to Landlord copies of its utilities bills for the immediately preceding twelve (12) calendar months.

 

15.   INVOLUNTARY CESSATION OF SERVICES.

 

Landlord reserves the right, without
any liability to Tenant and without affecting Tenant’s covenants and obligations hereunder, to stop service of any or all of the
HVAC, electric, sanitary, elevator (if any), and other systems serving the Premises, or to stop any other services required by Landlord
under this Lease, (collectively, “Utility Services”), whenever and for so long as may be necessary by reason of (i) Force
Majeure, or (ii) the making of repairs or changes which Landlord or Agent, in good faith, deems necessary. Further, it is also understood
and agreed that Landlord or Agent shall have no liability or responsibility for a cessation of Utility Services to the Premises or to
the Property that occurs as a result of Force Majeure. No such interruption of service shall be deemed an eviction or disturbance of Tenant’s
use and possession of the Premises or any part thereof, or render Landlord or Agent liable to Tenant for damages, or relieve Tenant from
performance of Tenant’s obligations under this Lease, including, but not limited to, the obligation to pay Rent. In the event that
Landlord or its Agent negligently causes any interruption of Utility Services that persists for a period in excess of five (5) consecutive
business days and Tenant shall cease operating within the impacted portion of the Premises for such continuous period, Tenant shall, as
Tenant’s sole remedy, be entitled to a proportionate abatement of Rent to the extent, if any, of any actual loss of use of the Premises
by Tenant. To the extent that Tenant is able to operate its business temporarily within the balance of the Premises without interruption,
Tenant shall not be entitled to any such abatement. The foregoing shall be Tenant’s sole remedy in the event of an interruption
negligently caused by Landlord or its Agents.

 

16.   LANDLORD’S RIGHTS.

 

Landlord, Agent and their respective
agents, employees and representatives shall have the right to enter and/or pass through the Premises at any time or times upon reasonable
prior notice (except in the event of emergency): (a) to examine and inspect the Premises and to show them to actual and prospective lenders,
prospective purchasers or mortgagees of the Property or providers of capital to Landlord and its affiliates; and in connection with the
foregoing, to install a sign at or on the Property to advertise the Property for lease or sale; (b) to make such repairs, alterations,
additions and improvements in or to all or any portion of either or both of the Premises and the Property, or the Property’s facilities
and equipment as Landlord is required or desires to make. During the period of nine (9) months prior to the Expiration Date (or at any
time, if Tenant has vacated or abandoned the Premises or is otherwise in default under this Lease), Landlord and its agents may exhibit
the Premises to prospective tenants. Additionally, Landlord and Agent shall have the following rights with respect to the Premises, exercisable
without notice to Tenant, without liability to Tenant, and without being deemed an eviction or disturbance of Tenant’s use or possession
of the Premises or giving rise to any claim for setoff or abatement of Rent: (i) to have pass keys, access cards, or both, to the Premises;
and (ii) to decorate, remodel, repair, alter or otherwise prepare the Premises for reoccupancy at any time after Tenant vacates or abandons
the Premises for more than thirty (30) consecutive days or without notice to Landlord of Tenant’s intention to reoccupy the Premises.

 

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17.   NON-LIABILITY AND INDEMNIFICATION; FORCE MAJEURE.

 

17.1           Mutual Indemnification. and Limitation of Liability. Except in the event of, and to the extent of, gross negligence, sole negligence
or willful misconduct, Tenant and landlord hereby indemnify, defend, and holds Landlord, Tenant, Agent, each other’s members and
their respective affiliates, owners, partners, members, directors, officers, agents and employees (collectively, ” Indemnified Parties”)
harmless from and against any and all Losses (defined below) arising from or in connection with any or all of: (a) the conduct or management
of either or both the Property and the Premises or any business therein, or any work or Alterations done, or any condition created by
any or all of Indemnified Parties in or about the Premises, or the Property, during the Term or during the period of time, if any, prior
to the Commencement Date that Tenant has possession of, or is given access to, the Premises; (b) any act, omission or negligence of any
or all of Indemnified Parties; (c) any accident, injury or damage whatsoever occurring in, at or upon either or both of the Property and
the Premises and caused by any or all of Indemnified Parties. Parties also indemnify, defend, and hold the Indemnified Parties harmless
from and against any and all Losses arising from or in connection with any or all of: (i) any breach by of any or all of its warranties,
representations and covenants under this Lease; (ii) any actions necessary to protect Landlord’s interest under this Lease in a
bankruptcy proceeding or other proceeding under the Bankruptcy Code; (iii) the creation or existence, or release of any Hazardous Materials
in, at, on or under the Premises or the Property, if and to the extent brought to the Premises or the Property or caused by Indemnified
parties; and (iv) any violation or alleged violation by any or all of Indemnified Parties of any Law. The obligations in the two prior
sentences are referred to collectively as “Indemnified Matters,” and shall include but not be limited to any claim for which
the Indemnified Party, its affiliates, contractors, subcontractors, material providers, or any others, would otherwise be entitled to
immunity or defenses to such a claim under any workers’ compensation or similar law. In case any action or proceeding is brought
against any Indemnified Parties by reason of any Indemnified Matters, the other party, upon notice from any Superior Party (defined below),
shall resist and defend such action or proceeding by counsel reasonably satisfactory to, or selected by, the Indemnified Party. The term
“Losses” shall mean all claims, demands, expenses, actions, judgments, damages (actual, but except in connection with third
party tort claims, or government claims, not indirect, special, consequential, or punitive), natural resource damages, penalties, fines,
liabilities, losses of every kind and nature, suits, administrative proceedings, costs and fees, including, without limitation, attorneys’
and consultants’ reasonable fees and expenses, and the costs of investigation, cleanup, remediation, removal and restoration, that
are in any way related to any matter covered by the foregoing indemnity. Notwithstanding anything to the contrary set forth in this Lease,
however, in all events and under all circumstances, the liability under this Section shall be limited to the amounts of Policy(ies) of
commercial general liability insurance and other insurance as required in sections 10.1 and 10.2. The provisions of this Section shall
survive the expiration or termination of this Lease.

 

17.2           Force Majeure. Each of the obligations of Tenant (except the obligation to pay Rent and the obligation to maintain insurance,
and provide evidence thereof, in accordance with Tenant Insurance Requirements) and each of the obligations of Landlord, shall
be excused, and neither Landlord nor Tenant shall have any liability whatsoever to the other, to the extent that any failure to perform,
or delay in performing such obligation arises out of either or both of (a) any labor dispute, governmental preemption of property in connection
with a public emergency or shortages of fuel, supplies, or labor, or any other cause, whether similar or dissimilar, beyond Landlord’s
or Tenant’s, as the case may be, reasonable control; or (b) any failure or defect in the supply, quantity or character of utilities
furnished to the Premises, or by reason of any requirement, act or omission of any public utility or others serving the Property, beyond
Landlord’s or Tenant’s, as the case may be, reasonable control (collectively, “Force Majeure”).

 

17.3           Limitation. Notwithstanding anything to the contrary herein, nothing in this Section shall be deemed to exculpate Landlord
from, or indemnify Landlord for, Landlord’s negligent or willful acts or omissions. Notwithstanding anything to the contrary set
forth in this Lease, however, in all events and under all circumstances, the liability of Landlord to Tenant, whether under this Section
or any other provision of this Lease, shall be limited to the interest of Landlord in the Property, and Tenant agrees to look solely to
Landlord’s interest in the Property for the recovery of any judgment or award against Landlord, it being intended that Landlord
shall not be personally liable for any judgment or deficiency.

 

18.   DAMAGE OR DESTRUCTION.

 

18.1           Notification and Repair; Rent Abatement. Tenant shall give prompt notice to Landlord and Agent of (a) any fire or other casualty
to the Premises or the Property, and (b) any damage to, or defect in, any part or appurtenance of the Property’s sanitary, electrical,
HVAC, elevator or other systems located in or passing through the Premises or any part thereof. In the event that, as a result of Tenant’s
failure to promptly notify Landlord pursuant to the preceding sentence, Landlord’s insurance coverage is compromised or adversely
affected, then Tenant is and shall be responsible for the payment to Landlord of any insurance proceeds that Landlord’s insurer
fails or refuses to pay to Landlord as a result of the delayed notification. Subject to Total Destruction provision below, if either or
both of the Property and the Premises is damaged by fire or other insured casualty, Landlord shall repair (or cause Agent to repair) the
damage and restore and rebuild the Property and/or the Premises (except Tenant’s Property) with reasonable dispatch after the adjustment
of the insurance proceeds attributable to such damage. Landlord (or Agent, as the case may be) shall use its diligent and good faith efforts
to make such repair or restoration promptly and in such manner as not to unreasonably interfere with Tenant’s use and occupancy
of the Premises, but Landlord or Agent shall not be required to do such repair or restoration work except during normal business hours
of business days. Provided that any damage to either or both of the Property and the Premises is not caused by, or is not the result of
acts or omissions by, any or all of Tenant and Tenant’s Parties, if (i) the Property is damaged by fire or other casualty thereby
causing the Premises to be inaccessible or (ii) the Premises are partially damaged by fire or other casualty, the Rent shall be proportionally
abated to the extent of any actual loss of use of the Premises by Tenant.

 

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18.2           Total Destruction. If the Property or the Premises shall be totally destroyed by fire or other casualty, or if the Property
shall be so damaged by fire or other casualty that (in the reasonable opinion of a reputable contractor or architect designated by Landlord):
(i) its repair or restoration of the Premises requires more than one hundred eighty (180) days or (ii) such repair or restoration requires
the expenditure of more than (a) eighty percent (80%) of the full insurable value of the Premises on file with Landlord’s insurer
immediately prior to the casualty or (b) fifty percent (50%) of the full insurable value of the Property immediately prior to the casualty,
Landlord and Tenant shall each have the option to terminate this Lease (by so advising the other, in writing) within ten (10) days after
said contractor or architect delivers written notice of its opinion to Landlord and Tenant, but in all events prior to the commencement
of any restoration of the Premises or the Property by Landlord. Additionally, if the damage (x) is less than the amount stated in (ii)
above, but more than ten percent (10%) of the full insurable value of the Property; and (y) occurs during the last two years of Lease
Term, then Landlord, but not Tenant, shall have the option to terminate this Lease pursuant to the notice and within the time period established
pursuant to the immediately preceding sentence. In the event of a termination pursuant to either of the preceding two (2) sentences, the
termination shall be effective as of the date upon which either Landlord or Tenant, as the case may be, receives timely written notice
from the other terminating this Lease pursuant to the preceding two (2) sentences. If neither Landlord nor Tenant timely delivers a termination
notice, this Lease shall remain in full force and effect. Notwithstanding the foregoing, if (A) any holder of a mortgage or deed of trust
encumbering the Property or landlord pursuant to a ground lease encumbering the Property (collectively, “Superior Parties”)
or other party entitled to the insurance proceeds fails to make such proceeds available to Landlord in an amount sufficient for restoration
of the Premises or the Property, or (B) the issuer of any commercial property insurance policies on the Property fails to make available
to Landlord sufficient proceeds for restoration of the Premises or the Property, then Landlord may, at Landlord’s sole option, terminate
this Lease by giving Tenant written notice to such effect within 30 days after Landlord receives notice from the Superior Party or insurance
company, as the case may be, that such proceeds shall not be made available, in which event the termination of this Lease shall be effective
as of the date Tenant receives written notice from Landlord of Landlord’s election to terminate this Lease. Landlord shall have
no liability to Tenant for, and Tenant shall not be entitled to terminate this Lease by virtue of, any delays in completion of repairs
and restoration. For purposes of this Section only, “full insurable value” shall mean replacement cost, less the cost
of footings, foundations and other structures below grade. This Section is referred to as the “Total Destruction”.

 

19.   EMINENT DOMAIN.

 

If the whole, or any substantial (as
reasonably determined by Landlord) portion, of the Property is taken or condemned for any public use under any Law or by right of eminent
domain, or by private purchase in lieu thereof, and such taking would prevent or materially interfere with the Permitted Use of the Premises,
this Lease shall terminate effective when the physical taking of said Premises occurs. If less than a substantial portion of the Property
is so taken or condemned, or if the taking or condemnation is temporary (regardless of the portion of the Property affected), this Lease
shall not terminate, but the Rent payable hereunder shall be proportionally abated to the extent of any actual loss of use of the Premises
by Tenant. Landlord shall be entitled to any and all payment, income, rent or award, or any interest therein whatsoever, which may be
paid or made in connection with such a taking or conveyance, and Tenant shall have no claim against Landlord, or the condemning authority
for the value of any unexpired portion of this Lease. Notwithstanding the foregoing, any compensation specifically and independently awarded
to Tenant for relocation expenses, or for Tenant’s Property, shall be the property of Tenant, provided that such award does not
diminish or otherwise adversely affect any award to Landlord.

 

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20.   SURRENDER AND HOLDOVER.

 

On the last day of the Term, or upon
any earlier termination of this Lease, or upon any re-entry by Landlord upon the Premises: (a) Tenant shall quit and surrender the Premises
to Landlord “broom-clean” (as defined by Exhibit B attached hereto and incorporated herein by reference), and in a condition
that would reasonably be expected in Landlord’s sole discretion, with normal and customary use in accordance with (i) prudent operating
practices and (ii) the covenants and requirements imposed under this Lease, subject only to ordinary wear and tear (as is attributable
to deterioration by reason of time and use, in spite of Tenant’s reasonable care), and such damage or destruction as Landlord is
required to repair or restore under this Lease; (b) Tenant shall remove all of Tenant’s Property therefrom, except as otherwise
expressly provided in this Lease; and (c) Tenant shall surrender to Landlord any and all keys, access cards, computer codes or any other
items used to access the Premises. Landlord shall be permitted to inspect the Premises in order to verify compliance with this Section
at any time prior to (x) the Expiration Date, (y) the effective date of any earlier termination of this Lease, or (z) the surrender date
otherwise agreed to in writing by Landlord and Tenant. The obligations imposed under the first sentence of this Section shall survive
the termination or expiration of this Lease. If Tenant remains in possession after the Expiration Date hereof or after any earlier termination
date of this Lease or of Tenant’s right to possession: (A) Tenant shall be deemed a tenant-at-will; (B) Tenant shall pay 125% for
the first three (3) months and then 150% thereafter of the aggregate of all Rent last prevailing hereunder for the entire calendar month,
and also shall pay all actual damages sustained by Landlord, directly by reason of Tenant’s remaining in possession after the expiration
or termination of this Lease; (C) there shall be no renewal or extension of this Lease by operation of law; and (D) the tenancy-at-will
may be terminated by either party hereto upon 30 days’ prior written notice given by the terminating party to the non-terminating
party. The provisions of this 0shall not constitute a waiver by Landlord of any re-entry rights of Landlord provided hereunder
or by Law and shall survive the expiration or sooner termination of this Lease.

 

21.   EVENTS OF DEFAULT.

 

21.1           Bankruptcy of Tenant. It shall be a default by Tenant under this Lease (“Default” or “Event of
Default”) if Tenant makes an assignment for the benefit of creditors, or files a voluntary petition under any state or federal
bankruptcy (including the United States Bankruptcy Code) or insolvency law, or an involuntary petition is filed against Tenant under any
state or federal bankruptcy (including the United States Bankruptcy Code) or insolvency law that is not dismissed within ninety (90) days
after filing, or whenever a receiver of Tenant or of or for the property of Tenant shall be appointed, or Tenant admits it is insolvent
or is not able to pay its debts as they mature (collectively, “Bankruptcy Default”).

 

21.2           Default Provisions. In addition to any Bankruptcy Default above, each of the following shall constitute a Default: (a) if Tenant
fails to pay Rent or any other payment when due hereunder within five (5) days after written notice from Landlord of such failure to pay
on the due date; provided, however, that if in any consecutive twelve (12) month period, Tenant shall, on two (2) separate occasions,
fail to pay any installment of Rent on the date such installment of Rent is due, then, on the third such occasion and on each occasion
thereafter on which Tenant shall fail to pay an installment of Rent on the date such installment of Rent is due, Landlord shall be relieved
from any obligation to provide notice to Tenant, and Tenant shall then no longer have a five day period in which to cure any such failure;
(b) if Tenant fails, whether by action or inaction, to timely comply with, or satisfy, any or all of the obligations imposed on Tenant
under this Lease (other than the obligation to pay Rent) for a period of thirty (30) days after Landlord’s delivery to Tenant of
written notice of such default under this Section; provided, however, that if the default cannot, by its nature, be cured within such
thirty (30) day period, but Tenant commences and diligently pursues a cure of such default promptly within the initial thirty (30) day
cure period, then Landlord shall not exercise any Landlord Remedies (as hereinafter defined) unless such default remains uncured for more
than sixty (60) days after the initial delivery of Landlord’s original default notice; and, at Landlord’s election; (c) if
Tenant vacates or abandons the Premises during the Term; (d) . It shall be an automatic Event of Default under this Lease (for which no
notice or cure period shall be required) in the event that Tenant violates its obligations under Section 8 of the Lease.

 

22.   RIGHTS AND REMEDIES.

 

22.1           Landlord’s Cure Rights Upon Default of Tenant. If a Default occurs, then Landlord may (but shall not be obligated to)
cure or remedy the Default for the account of, and at the expense of, Tenant, but without waiving such Default.

 

22.2           Landlord’s Remedies. In the event of any Default by Tenant under this Lease, Landlord, at its option, may, in addition
to any and all other rights and remedies provided in this Lease or otherwise at law or in equity, do or perform any or all of the following:

 

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22.2.1   
Terminate this Lease and/or Terminate Tenant’s right to possession of the Premises by any lawful means, in which case
this Lease shall terminate and Tenant shall immediately surrender possession to Landlord. In such event, Landlord shall be entitled to
recover from Tenant all of: (i) the unpaid Rent that is accrued and unpaid as of the date on which this Lease is terminated; (ii) the
worth, at the time of award, of the amount by which (x) the unpaid Rent that would otherwise be due and payable under this Lease (had
this Lease not been terminated) for the period of time from the date on which this Lease is terminated through the Expiration Date exceeds
(y) the amount of such rental loss that the Tenant proves could have been reasonably mitigated; and (iii) any other amount necessary to
compensate Landlord for all the detriment proximately caused by the Tenant’s failure to perform its obligations under this Lease
or which, in the ordinary course of events, would be likely to result therefrom, including but not limited to, the cost of recovering
possession of the Premises, expenses of reletting, including renovation and alteration of the Premises, reasonable attorneys’ fees,
and that portion of any leasing commission paid by Landlord in connection with this Lease applicable to the unexpired Term (as of the
date on which this Lease is terminated). The worth, at the time of award, of the amount referred to in provision (ii) of the immediately
preceding sentence shall be computed by discounting such amount at the current yield, as of the date on which this Lease is terminated
under this Section, on United States Treasury Bills having a maturity date closest to the stated Expiration Date of this Lease, plus one
percent per annum. Efforts by Landlord to mitigate damages caused by Tenant’s Default shall not waive Landlord’s right to
recover damages under this Section. If this Lease is terminated through any unlawful entry and detainer action, Landlord shall have the
right to recover in such proceeding any unpaid Rent and damages as are recoverable in such action, or Landlord may reserve the right to
recover all or any part of such Rent and damages in a separate suit; or

 

22.2.2   
Continue the Lease and either (a) continue Tenant’s right to possession or (b) terminate Tenant’s right to possession
and in the case of either (a) or (b), recover the Rent as it becomes due. Acts of maintenance, efforts to relet, and/or the appointment
of a receiver to protect the Landlord’s interests shall not constitute a termination of the Tenant’s right to possession;
or

 

22.2.3   
Pursue any other remedy now or hereafter available under the laws of the state in which the Premises are located.

 

22.2.4   
Without limitation of any of Landlord’s rights in the event of a Default by Tenant, Landlord may also exercise its rights
and remedies with respect to any Security Deposit as set forth herein.

 

22.2.5   
In no event shall Tenant be entitled to any surplus arising from Landlord’s re-renting the Premises, regardless of whether
Landlord terminates Tenant’s rights and/or this Lease, as provided for in Section 22.2.1 above, or whether Landlord continues this
Lease, as provided for in Section 22.2.2 above.

 

Any and all of Tenant’s
Property that may be removed from the Premises by Landlord pursuant to the authority of this Lease or of Law may be handled, removed,
disposed of and/ or stored by Landlord at the sole risk, cost and expense of Tenant, and in no event or circumstance shall Landlord be
responsible for the value, preservation or safekeeping thereof. Tenant shall pay to Landlord, upon demand, any and all expenses incurred
in such handling, removal, or disposal and all storage charges for such Tenant’s Property so long as the same shall be in Landlord’s
possession or under Landlord’s control. Any Tenant’s Property not removed from the Premises as of the Expiration Date or any
other earlier date on which this Lease is terminated shall be conclusively presumed to have been conveyed by Tenant to Landlord under
this Lease as in a bill of sale, without further payment or credit by Landlord to Tenant, and/or at Landlord’s election (which Landlord
may elect whole or in part with respect to Tenant’s Property) shall be deemed abandoned by Tenant and disposed of by Landlord as
it sees fit in its sole and absolute discretion. Neither expiration nor termination of this Lease, nor the termination of Tenant’s
right to possession, shall relieve Tenant from its liability under the indemnity provisions of this Lease.

 

22.3           Additional Rights of Landlord. All sums advanced by Landlord or Agent on account of Tenant under this Section, or pursuant
to any other provision of this Lease, and all Base Rent and Additional Rent, if delinquent or not paid by Tenant and received by Landlord
when due hereunder, shall bear interest (“Default Interest”) at the rate of five percent (5%) per annum above the “prime”
or “reference” or “base” rate (on a per annum basis) of interest publicly announced as such, from time to time,
by the JPMorgan Chase Bank, NA, or its successor, from the due date thereof until paid, and such interest shall be and constitute Additional
Rent and be due and payable upon Landlord’s or Agent’s submission of an invoice therefor. The various rights, remedies and
elections of Landlord reserved, expressed or contained herein are cumulative and no one of them shall be deemed to be exclusive of the
others or of such other rights, remedies, options or elections as are now or may hereafter be conferred upon Landlord by law.

 

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22.4           Event of Bankruptcy. In addition to, and in no way limiting the other remedies set forth herein, Landlord and Tenant agree
that if Tenant ever becomes the subject of a voluntary or involuntary bankruptcy, reorganization, composition, or other similar type proceeding
under the federal bankruptcy laws, as now enacted or hereinafter amended, then: (a) “adequate assurance of future performance”
by Tenant pursuant to Bankruptcy Code Section 365 will include (but not be limited to) payment of an additional/new security deposit in
the amount of three times the then current Base Rent payable hereunder; (b) any person or entity to which this Lease is assigned, pursuant
to the provisions of the Bankruptcy Code, shall be deemed, without further act or deed, to have assumed all of the obligations of Tenant
arising under this Lease on and after the effective date of such assignment, and any such assignee shall, upon demand by Landlord, execute
and deliver to Landlord an instrument confirming such assumption of liability; (c) notwithstanding anything in this Lease to the contrary,
all amounts payable by Tenant to or on behalf of Landlord under this Lease, whether or not expressly denominated as “Rent”,
shall constitute “rent” for the purposes of Section 502(b)(6) of the Bankruptcy Code; and (d) if this Lease is assigned to
any person or entity pursuant to the provisions of the Bankruptcy Code, any and all monies or other considerations payable or otherwise
to be delivered to Landlord or Agent (including Base Rent, Additional Rent and other amounts hereunder), shall be and remain the exclusive
property of Landlord and shall not constitute property of Tenant or of the bankruptcy estate of Tenant. Any and all monies or other considerations
constituting Landlord’s property under the preceding sentence not paid or delivered to Landlord or Agent shall be held in trust
by Tenant or Tenant’s bankruptcy estate for the benefit of Landlord and shall be promptly paid to or turned over to Landlord.

 

22.5           Sale of Premises. Notwithstanding anything contained in this Lease to the contrary, the sale of the Premises by Landlord shall
not constitute Landlord’s acceptance of Tenant’s abandonment of the Premises or rejection of the Lease or in any way impair
Landlord’s rights upon Tenant’s default, including, without limitation, Landlord’s right to damages.

 

22.6           Landlord’s rights and remedies under this Section are collectively referred to as “Landlord Remedies”.

 

23.   LANDLORD’S DEFAULT.

 

In the event that Landlord defaults
in the observance or performance of any term or condition required to be performed by Landlord hereunder, Tenant, may commence an action
in a court of competent jurisdiction to compel performance by Landlord hereunder; provided, however, that Tenant may not exercise such
remedy without first providing written notice of the alleged default to Landlord, setting forth with reasonable specificity and detail
the nature of such default, and thereafter permitting Landlord a thirty (30) day period to cure such default (which cure period may be
extended if Landlord is diligently pursuing performance of the applicable cure, but such cure is not completed within the 30 day period).
Upon expiration of Landlord’s cure period, Tenant shall deliver written notice to Landlord advising of Tenant’s election to
file the action contemplated above. The remedy provided in this Section is Tenant’s sole and exclusive remedy, whether at law or
in equity. In connection with the exercise of the foregoing remedy or otherwise, Tenant shall not be entitled to any abatement, deduction
or set off against the Rent payable hereunder.

 

24.   BROKER.

 

Tenant covenants, warrants and represents
that Tenant’s Broker was the only broker to represent Tenant in the negotiation of this Lease.  Landlord covenants, warrants
and represents that Landlord’s Broker was the only broker to represent Landlord in the negotiation of this Lease.  Landlord
shall be solely responsible for paying the commission of both Tenant’s Broker and Landlord’s Broker.  Each party agrees
to and hereby does indemnify, defend and hold the other harmless against and from any brokerage commissions or finder’s fees or
claims thereof by a party claiming to have dealt with the indemnifying party and all costs, expenses and liabilities in connection therewith,
including, without limitation, reasonable attorneys’ fees and expenses, for any of the foregoing.  The provisions of this Section
shall survive the termination or expiration of this Lease.

 

25.   MISCELLANEOUS.

 

25.1           Merger. All prior understandings and agreements between the parties are merged in this Lease, which alone fully and completely
expresses the agreement of the parties. No agreement shall be effective to modify this Lease, in whole or in part, unless such agreement
is in writing, and is signed by the party against whom enforcement of said change or modification is sought.

 

25.2           Notices. Any notice required to be given by either party pursuant to this Lease, shall be in writing and shall be deemed to
have been properly given, rendered or made only if (a) personally delivered, or (b) if sent by Federal Express or other comparable commercial
overnight delivery service, or (c) sent by certified mail, return receipt requested and postage prepaid, addressed (in the case of any
or all of (a), (b) and (c) above) to the other party at the addresses set forth below each party’s respective signature block (or
to such other address as Landlord or Tenant may designate to each other from time to time by written notice), and shall be deemed to have
been given, rendered or made (i) on the day so delivered or (ii) in the case of overnight courier delivery on the first business day after
having been deposited with the courier service, and (iii) in the case of certified mail, on the third (3rd) business day after
deposit with the U.S. Postal Service, postage prepaid.

 

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25.3           Non-Waiver. The failure of either party to insist, in any one or more instances, upon the strict performance of any one or
more of the obligations of this Lease, or to exercise any election herein contained, shall not be construed as a waiver or relinquishment
at the time for the future of the performance of such one or more obligations of this Lease or of the right to exercise such election,
but the Lease shall continue and remain in full force and effect with respect to any subsequent breach, act or omission. The receipt and
acceptance by Landlord or Agent of Base Rent or Additional Rent with knowledge of any breach by Tenant of any obligation of this Lease
shall not be deemed a waiver of such breach.

 

25.4           Legal Costs. Any party in breach or default under this Lease (the “Defaulting Party”) shall reimburse the
other party (the “Nondefaulting Party”) upon demand for any legal fees and court (or other administrative proceeding)
costs or expenses that the Nondefaulting Party incurs in connection with the breach or default, regardless whether suit is commenced or
judgment entered. Such costs shall include legal fees and costs incurred for the negotiation of a settlement, enforcement of rights or
otherwise. Furthermore, in the event of litigation, the court in such action shall award to the party in whose favor a judgment is entered
a reasonable sum as attorneys’ fees and costs, which sum shall be paid by the losing party. Tenant shall pay Landlord’s attorneys’
reasonable fees incurred in connection with Tenant’s request for Landlord’s consent under provisions of this Lease governing
assignment and subletting, or in connection with any other act which Tenant proposes to do and which requires Landlord’s consent.
All payments due hereunder from Tenant to Landlord shall be deemed Additional Rent.

 

25.5           Parties Bound. Except as otherwise expressly provided for in this Lease, this Lease shall be binding upon, and inure to the
benefit of, the successors and assignees of the parties hereto. Tenant hereby releases Landlord named herein from any obligations of Landlord
for any period subsequent to the conveyance and transfer of Landlord’s ownership interest in the Property. In the event of such
conveyance and transfer, Landlord’s obligations hereunder shall thereafter be binding upon each transferee (whether Successor Landlord
or otherwise). No obligation of Landlord shall arise under this Lease until the instrument is signed by, and delivered to, both Landlord
and Tenant.

 

25.6           Recordation of Lease. Tenant shall not record or file this Lease (or any memorandum hereof) in the public records of any county
or state.

 

25.7           Governing Law; Construction. This Lease shall be governed by and construed in accordance with the laws of the state in which
the Property is located. If any provision of this Lease shall be invalid or unenforceable, the remainder of this Lease shall not be affected
but shall be enforced to the extent permitted by Law. The captions, headings and titles in this Lease are solely for convenience of reference
and shall not affect its interpretation. This Lease shall be construed without regard to any presumption or other rule requiring construction
against the party causing this Lease to be drafted. Each covenant, agreement, obligation, or other provision of this Lease to be performed
by Tenant, shall be construed as a separate and independent covenant of Tenant, not dependent on any other provision of this Lease. All
terms and words used in this Lease, regardless of the number or gender in which they are used, shall be deemed to include any other number
and any other gender as the context may require.

 

25.8           Time. Time is of the essence for this Lease unless waived by Landlord (which it shall have the right, but not the obligation
to do). If the time for performance hereunder falls on a Saturday, Sunday or a day that is recognized as a holiday in the state in which
the Property is located, then such time shall be deemed extended to the next day that is not a Saturday, Sunday or holiday in said state.

 

25.9           Authority of Tenant. Tenant and the person(s) executing this Lease on behalf of Tenant hereby represent, warrant, and covenant
with and to Landlord as follows: the individual(s) acting as signatory on behalf of Tenant is(are) duly authorized to execute this Lease;
Tenant has procured (whether from its members, partners or board of directors, as the case may be), the requisite authority to enter into
this Lease; this Lease is and shall be fully and completely binding upon Tenant; and Tenant shall timely and completely perform all of
its obligations hereunder.

 

25.10         WAIVER OF TRIAL BY JURY. LANDLORD AND TENANT, TO THE FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO, HEREBY WAIVE TRIAL BY JURY
IN ANY ACTION OR PROCEEDING BROUGHT BY ANY PARTY TO THIS LEASE WITH RESPECT TO THIS LEASE, THE PREMISES, OR ANY OTHER MATTER RELATED TO
THIS LEASE OR THE PREMISES.

 

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25.11         Relocation. Landlord shall have the right to relocate Tenant from the Premises to comparable (as to size, configuration and
improvements) alternative space in the Property or in another building that Landlord (or its affiliate) owns in the same business park
or campus in which the Property is located (in either case, the “Replacement Premises”) upon 90 days’ prior written
notice to Tenant. In the event of such a relocation, Landlord shall make reasonable, good faith efforts to coordinate with Tenant a mutually
acceptable plan (as to scope and timing) for such relocation, and Landlord shall be responsible for the third party costs actually incurred
to accomplish the physical relocation of Tenant (e.g. movers and telephone company charges). If the Replacement Premises are larger in
size than the original Premises, there shall be no adjustment in Tenant’s Base Rent; however, Tenant’s Proportionate Share
shall be appropriately modified, thereby resulting in a potential increase in Tenant’s Additional Rent. If, however, the Replacement
Premises is a smaller size (as to rentable square feet) than the original Premises, Landlord shall appropriately adjust both Tenant’s
Base Rent and its Proportionate Share.

 

25.12         Financial Information.  From time to time during the Term, Tenant shall deliver to Landlord information and documentation describing
and concerning Tenant’s financial condition, and in form and substance reasonably acceptable to Landlord, within ten (10) days following
Landlord’s written request therefor. Upon Landlord’s request, Tenant shall provide to Landlord the most currently available
audited financial statement of Tenant; and if no such audited financial statement is available, then Tenant shall instead deliver to Landlord
its most currently available balance sheet and income statement. Furthermore, upon the delivery of any such financial information from
time to time during the Term, Tenant shall be deemed to automatically represent and warrant to Landlord that the financial information
delivered to Landlord is true, accurate and complete, and that there has been no adverse change in the financial condition of Tenant since
the date of the then-applicable financial information.

 

25.13         Confidential Information. Tenant and Landlord agree to maintain in strict confidence the economic terms of this Lease and any
or all other materials, data and information delivered to or received by any or all of Tenant and Tenants’ Parties or Landlord and
Landlord’s Parties either prior to or during the Term in connection with the negotiation and execution hereof. The provisions of
this Section shall survive the termination of this Lease. Notwithstanding the forgoing or anything else in this Lease, Tenant will be
allowed to make any disclosure (a) to affiliates, agents, employees or other persons who agree to maintain the confidentiality of such
information to the same extent as required by the Tenant, (b) as required to comply with any government law, rule or regulation, or court
order, including but not limited to the SEC, the FDA, and the EPA, and (c) pursuant to 18 USC § 1833(b), an individual shall not
be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that — (A)
is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii)
solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed
in a lawsuit or other proceeding, if such filing is made under seal. Furthermore, an individual who files a lawsuit for retaliation by
an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade
secret information in the court proceeding, if the individual — (A) files any document containing the trade secret under seal; and
(B) does not disclose the trade secret, except pursuant to court order.

 

25.14         Submission of Lease. Submission of this Lease to Tenant for signature does not constitute a reservation of space or an option
to lease, or an offer to lease. This Lease is not effective until execution by and delivery to both Landlord and Tenant.

 

25.15         Lien Prohibition. Tenant shall not permit any notice of unpaid balance or right to file lien, construction lien, construction
lien claim, mechanics or materialmen’s liens to be filed or to attach to the Premises or the Property. Tenant, at its expense, shall
procure the satisfaction or discharge of record of all such liens and encumbrances within 30 days after the filing thereof; or, within
such thirty (30) day period, Tenant shall provide Landlord, at Tenant’s sole expense, with endorsements (satisfactory, both in form
and substance, to Landlord and the holder of any mortgage or deed of trust) to the existing title insurance policies of Landlord and the
holder of any mortgage or deed of trust, insuring against the existence of, and any attempted enforcement of, such lien or encumbrance.
In the event Tenant has not so performed, Landlord may, at its option, pay and discharge such liens and Tenant shall be responsible to
reimburse Landlord, on demand and as Additional Rent under this Lease, for all costs and expenses incurred in connection therewith, together
with Default Interest thereon, which expenses shall include reasonable fees of attorneys of Landlord’s choosing, and any costs in
posting bond to effect discharge or release of the lien as an encumbrance against the Premises or the Property. The provisions of this
Section shall survive the termination or expiration of this Lease.

 

THE INTEREST OF THE LANDLORD IN THE
PREMISES SHALL NOT, UNDER ANY CIRCUMSTANCES, BE SUBJECT TO LIENS FOR ALTERATIONS MADE BY THE TENANT OR ANY OTHER ACT OF TENANT.

 

    -21- 

     

    

 

25.16         Landlord’s Covenants; No Termination Right. All obligations of Landlord hereunder shall be construed as covenants, not
conditions; and, except as may be otherwise expressly provided in this Lease, Tenant may not terminate, and to the extent permitted by
Law waives the benefit of any Law now or hereafter in effect which would permit Tenant to terminate, this Lease for breach of Landlord’s
obligations hereunder.

 

25.17         Anti-Terrorism. Tenant represents and warrants to and covenants with Landlord that (i) neither Tenant nor any of its officers,
directors, members, partners, shareholders or other equity interest holders, nor any of their affiliates (collectively, the “Tenant
Parties”) currently is, nor shall any of them be, at any time during the Term, in violation of any laws or regulations relating
to either or both terrorism and money laundering; (ii) none of the Tenant Parties is, nor shall any of them be, during the Term (1) a
person or entity owned or controlled by, affiliated with, or acting for or on behalf of, any person or entity that is identified as a
“Specially Designated National” on the then - most current list published by the US Treasury Department’s Office of
Foreign Assets Control or other replacement official publication of such list, or (2) a person or entity who is identified as, or affiliated
with, a person or entity designated as a terrorist, or associated with terrorism or money laundering, pursuant to regulations promulgated
in connection with the USA Patriot Act; and (iii) Tenant has taken and shall continue to take during the Term, reasonably appropriate
steps to understand its legal obligations under all anti-terrorism laws and regulations, and has implemented, and shall continue to implement
during the Term, appropriate procedures to assure its continued compliance with them. At any time and from time-to-time during the Term,
Tenant shall deliver to Landlord, within ten (10) days after receipt of a written request therefor, a written certification and such other
evidence as Landlord may reasonably request evidencing and confirming Tenant's compliance with this Section. Notwithstanding anything
to the contrary set forth in this Lease, no notice or cure period shall be required or provided with respect to any breach or default
under this Section.

 

25.18         Electronic Signatures; and Counterparts. The parties acknowledge and consent to be bound by electronic signatures, including
signatures of any required witness. This Lease may be executed in multiple counterparts, but all such counterparts shall together constitute
a single, complete and fully-executed document.

 

25.19         Waive of Right of Redemption.
Tenant waives all right of redemption to which Tenant may be entitled by Law.

 

25.20         Injunctive Relief.
Any violation, attempted violation, or threatened violation, of any provision of this Lease by Tenant, can be remedied by injunction,
which shall be a cumulative remedy in addition to any other remedy available to Landlord under this Lease or by any Law, and Tenant shall
not raise as a defense thereto that Landlord has an adequate remedy at Law.

 

25.21         Joint and Several Liability. All parties signing this Lease as Tenant shall be jointly and severally liable for all obligations
of Tenant hereunder.

 

25.22         Cross-Default.   For purposes of this Section, the terms “Landlord” and “Tenant” shall refer
to the parties named in this Lease, and to their respective affiliates, subsidiaries and parent, if any.  Any Default by Tenant under
this Lease and/or under any other lease made with Landlord shall, at the option of Landlord, constitute a Default by Tenant under this
Lease and/or under all other leases made with Landlord.

 

[Signature Pages Follow]

 

    -22- 

     

    

 

IN WITNESS WHEREOF,
Landlord and Tenant have duly executed this Lease as of the day and year first above written.

 

	 	LANDLORD:
	 	 	 
	 	FR JH 10, LLC, a Delaware limited liability
company
	 	 	 
	 	 	/s/JOHANNSON YAP
	 	By:	 Johannson Yap
	 	Its:	Chief Investment Officer and Executive
Vice President
	 	 	 
	 	 	December 6, 2021
	 	Date

 

Landlord’s Address for Notices:

 

First Industrial Realty Trust, Inc.

1661 Feehanville Drive

Suite 400

Mount Prospect, IL 60056

 

 

Attn:    Operations

 

Attn: FR JH 10, LLC

 

With a copy by email only to:

Legal.Notices@firstindustrial.com

 

    -23- 

     

    

 

	 	TENANT:
	 	 	 
	 	Nanophase Technologies Corporation, a
Delaware Corporation
	 	 	 
	 	 	/s/JESS JANKOWSKI
	 	By:	  Jess Jankowski
	 	Its:	 President & Chief Executive Officer
	 	 	 
	 	 	November 30, 2021
	 	Date

 

Tenant’s Addresses for Notices:

 

Nanophase Technologies Corporation

1319 Marquette Drive

Romeoville, IL 60446

 

After Commencement Date:

 

Same

 

 

With a copy to:

 

N/A

 

 

 

 

 

 

 

 

    -24- 

     

    

 

EXHIBIT
A

 

Legal Description

 

(12734) 400 Crossroads Parkway, Bolingbrook,
IL

 

PARCEL 1:

LOT 2 IN BLOCK 2 IN CROSSROADS BUSINESS PARK, BEING
PART OF SECTIONS 21 AND 22, TOWNSHIP 37 NORTH, RANGE 10, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED
AUGUST 8, 1990 AS DOCUMENT R90-43649, IN WILL COUNTY, ILLINOIS.

PARCEL 2:

EASEMENT FOR THE BENEFIT OF PARCEL 1 AS
CREATED BY RECIPROCAL ACCESS EASEMENT AGREEMENT BY AND BETWEEN AMB PROPERTY II, L.P., A DELAWARE LIMITED PARTNERSHIP, AND PRUDENTIAL
INSURANCE COMPANY OF AMERICA, A NEW JERSEY CORPORATION, RECORDED JUNE 15, 1999 AS DOCUMENT R99-074915, DESCRIBED AS FOLLOWS: THE
WESTERLY 25 FEET OF THE SOUTHERLY 180 FEET OF LOT 1 IN BLOCK 2 IN CROSSROADS BUSINESS PARK, BEING A SUBDIVISION IN PART OF SECTIONS
21 AND 22, TOWNSHIP 37 NORTH, RANGE 10, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED AUGUST 9, 1990
AS DOCUMENT R90-43649, IN WILL COUNTY, ILLINOIS.

PARCEL 3:

EASEMENT FOR THE BENEFIT OF PARCEL 1 AS
CREATED BY RECIPROCAL ACCESS EASEMENT AGREEMENT BY AND BETWEEN AMB PROPERTY II, L.P., A DELAWARE LIMITED PARTNERSHIP, AND PROLOGIS
TRUST, A MARYLAND CORPORATION, RECORDED JUNE 15, 1999 AS DOCUMENT R99-074916, DESCRIBED AS FOLLOWS: THE EASTERLY 25 FEET OF THE
SOUTHERLY 180 FEET OF LOT 3 IN BLOCK 2 IN CROSSROADS BUSINESS PARK, BEING A SUBDIVISION IN PART OF SECTIONS 21 AND 22, TOWNSHIP 37
NORTH, RANGE 10, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED AUGUST 9, 1990 AS DOCUMENT R90-43649,
IN WILL COUNTY, ILLINOIS.

 

    A

     

    

 

LEASE
EXHIBIT A-1

Depiction
of Premises

 

 

*[***]

 

    A-1

     

    

 

LEASE EXHIBIT B

BROOM CLEAN CONDITION AND REPAIR
REQUIREMENTS

 

		●	All lighting must be in good working order with
replacement of bulbs, ballasts, and lenses as needed.

		●	All truck doors and dock levelers must be serviced
and in good operating order, including overhead door springs, rollers, tracks, and motorized door operator. Replace dented truck door
panels, broken panels and cracked lumber, adjust door tension to insure proper operation, and paint replacement doors to match the Building
standard.

		●	All structural steel columns in the warehouse
and office must be inspected and, after receiving approval of Landlord, any damage repaired. 

		●	All HVAC system must be in good working order
and well maintained, including the replacement of any necessary parts. This includes, filters, thermostats, warehouse heaters and exhaust
fans. Upon move-out, Landlord will inspect the condition of the HVAC system with a certified mechanical contractor.

		●	All portions of the Premises must be clean, and
free of excessive dust, dirt, grease, oil and stains. This includes all flooring (including all carpets and vinyl tiles), all fixtures,
the coffee bar, restroom areas, windows, and walls. All holes or chips in the walls or flooring must be repaired. The walls must be in
paintable condition.

		●	The floor/slab shall be in good condition and
repair. Cracks in concrete and asphalt shall be acceptable if they are ordinary wear and tear, and are not the result of misuse. There
must be no protrusion of anchors from the warehouse floor and all holes must be patched. 

		●	All windows with cracks or breakage must be replaced.

		●	Tenant must provide keys for all locks on the
Premises, including front doors, rear doors, and interior doors.

		●	All mechanical and electrical systems must be
left in a safe condition that conforms to code. All low voltage wiring must be removed from the Premises and any damage caused by that
removal repaired to Landlord’s reasonable satisfaction. Wires and installations will be corrected to Landlord’s reasonable
satisfaction. If machinery/equipment is removed, the electrical lines must be properly terminated at the nearest junction box.

		●	All plumbing fixtures must be in good working
order and not leak, including, the water heater, faucets and toilets.

		●	All Dock bumpers will be left in place and well-secured.

		●	Drop grid ceiling must be free of excessive dust.
No ceiling tiles may be missing or damaged.

		●	All trash must be removed from both inside and
outside of the Building.

		●	All signs in front of the Building and on exterior
or interior doors must be removed.

 

    B

     

    

 

LEASE EXHIBIT C

RULES & REGULATIONS

 

In addition to the terms and provisions
of this Lease, during the Lease Term, Tenants shall comply with all rules and regulations set forth below. 

 

		●	No part of the Premises or Common Areas shall
be used for any purpose other than as permitted by the zoning regulations of the County in which the Premises is located for the type
of zoning given in Exhibit A or as stipulated in the Lease.

		●	No materials or products shall be manufactured
or stored that constitute a nuisance or cause the emission of noxious odors or gases or smoke. No burning of materials, outside or inside
the Premises, will be permitted.

		●	No fence, wall, loading facility, outside storage
facility, or permanent improvements will be erected or constructed without the prior written approval of Landlord.

		●	Tenants will keep their Premises safe, clean,
neat and provide for the removal of trash from their Premises. No pets will be allowed on the Premises.

		●	No materials, supplies or products shall be stored
outside without the prior written approval of the Landlord, except Industrial Gas Tanks commonly used in production.

		●	Tenants shall not cause or make an excessive
noise, odor, harmful sewage or vibration that could be deemed objectionable to other Tenants.

		●	No signs are to be erected other than the standard
format, on the space provided for by Landlord on the Premises.

		●	Each Tenant must maintain a pest control program
appropriate to their Use.

		●	A fifteen (15) mile-per-hour speed limit is to
be observed within the Premises.

		●	No employee parking will be permitted on the
streets or in the Premises other than in the areas designated by the Landlord.

		●	All enterprises are to be conducted in a business-like
manner.

		●	Hot Work Activities conducted inside any area
of the building, the roof, or within 50 feet of the exterior of the building requires Hot Work Approval. An Approval Form must be submitted
and approved by the First Industrial Property Manager before performing Hot Work Activities. Hot Work Activities are defined as any work
activity that uses or produces flames, or heat that would act as an ignition source for any flammable or combustible material.

 

    C

     

    

 

LEASE EXHIBIT D

Landlord’s Work

 

Landlord, at Landlord’s sole cost,
shall provide a minimum of [***] of power to the premises. This will be completed as soon as commercially reasonable. Tenant and Landlord
will coordinate in submitting any Tenant information necessary to Com Ed for the upgrade. 

 

Landlord, at Landlord’s sole cost,
shall service all loading docks, dock doors, and levelers to ensure they are delivered in Good Working order. Landlord and Tenant acknowledge
that the dock doors will be delivered as-is and any replacement work will be performed when materials are commercially reasonably available,
estimated to be [***] 2022.

 

Landlord, at Landlord’s sole cost, shall
upgrade all building lighting with LED fixtures. 

 

    D

     

    

 

LEASE EXHIBIT E

Confirmation of Commencement Date

 

S A M P L E – Do not fill out
until document is required

 

[Date]

[Tenant’s Name and Address]

RE:         [Describe lease, by title
and date (the “Lease”); name Landlord and Tenant]

 

Dear [Name of Contact Person at Tenant]:

 

This letter shall
confirm that the Commencement Date for the above-referenced Lease is [specify Commencement Date].

[Name of Tenant],
as Tenant, hereby acknowledges the following: (i) Tenant is in possession of the Premises (as defined in the Lease); (ii) the Lease is
in full force and effect; (iii) Landlord is not in default under the Lease; and (iv) possession of the Premises is accepted by Tenant
as having been delivered in accordance with the terms and conditions of the Lease.

Our records indicate
the following information for the [Number of square feet comprising Premises] square feet of space:

	Commencement Date:	____________________ 20__
	Base Rent Commencement Date:	____________________ 20__
	Next Monthly Base Rent Due:	____________________ 20__
	Operating Expense Commencement Date:	____________________ 20__
	Lease Expiration Date:	____________________ 20__

Please sign two
(2) copies of this letter in the space provided below acknowledging your agreement with the above and return them to me at my office.
I suggest you attach a copy of this letter to your copy of the Lease.

Thank you again
for your cooperation and assistance regarding this matter. Please contact me at any time should you have questions regarding the lease,
building, or any related manner.

Do not sign until document is required

 

	Sincerely,	Acknowledged and Agreed to this ___ day of ___________________________, 20____
	 	 
	[Name]	[Name of Tenant]

	
 

	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Title:	 	 

 

    E

     

    

 

Form for Tenant/Issuing Bank. This is
a sample- a starting point to share with the Tenant and or Issuing Bank. Ultimately the Letter of Credit will need to comply
with Lease requirements. Final Letter of Credit will be written on the Issuing Bank form.

 

LEASE EXHIBIT F

SAMPLE

 

IRREVOCABLE STANDBY LETTER OF CREDIT
NO. __________

 

INTENTIONALLY OMITTED

 

    F

     

    

 

LEASE
EXHIBIT G

Tenant Contact Information

 

 

[***************]

 

    G

     

    

 

LEASE
EXHIBIT H

Sign Specifications

 

Pursuant to and in addition to Signage,
as defined in the Lease, final approval of Tenant’s sign is subject to property manager’s review of Tenant’s specific
sign specification, rendering and mounting detail.

 

    H

     

    

 

LEASE EXHIBIT I

 

TENANT IMPROVEMENT ALLOWANCE

 

Landlord consents to (but does
not require) Tenant's completion of certain improvements in, on or to the Premises as mutually agreed to by Landlord and Tenant, subject
to the requirements of, and any changes required by local building and planning officials and authorities (collectively, the “Improvements”).
Any construction and installations shall be in locations acceptable to Landlord in its reasonable discretion. The Improvements shall
be coordinated and performed solely by Tenant on a lien free basis using new materials and contractors acceptable to Landlord, such acceptance
not to be unreasonably denied, delayed or conditioned. Tenant Improvements, and all plans and specifications therefor, shall comply with
applicable building and construction codes, zoning ordinances, ADA requirements, and other applicable laws, statutes, codes and regulations.
Tenant shall be solely responsible for obtaining all permits, variances, and approvals (including site plan approvals) related to the
Improvements. In that regard, all applications and other submissions to any government agencies or authorities must be submitted to Landlord
for its review and approvals prior to submission to the governmental agency or authority. Landlord reserves the right to revoke its consent
to all or a portion of the Improvements if after giving consent, (i) the Improvements do not materially comply with any term, condition
or requirement attached to or included as part of any site plan or (ii) if any license, permit or variance obtained by Tenant in connection
with the Improvements materially alters the nature of the Premises or diminishes its value. Tenant is also solely responsible, at its
cost, for obtaining written approval of the plans and specification for the Improvements (as well as approval for the Improvements themselves)
from any private association or board having jurisdiction over the Premises, and for ensuring full compliance with, and obtaining any
variances necessary under, the documents pursuant to which any such association or board is organized or operates. Tenant shall not commence
construction of the Improvements until all of the approvals, permits, ordinances and other requirements contemplated above have been
issued and complied with and approved by Landlord. Tenant shall also be solely responsible for obtaining a certificate of occupancy for
the Improvements, and shall observe and comply with all applicable provisions of the Illinois Construction Lien Act. THIS EXHIBIT CONSTITUTES
NOTICE TO ALL CONTRACTORS, SUBCONTRACTORS, SUPPLIERS AND LABORERS INVOLVED IN THE IMPROVEMENTS THAT ANY CONSTRUCTION LIEN ARISING FROM
OR RELATED TO THE IMPROVEMENTS WILL NOT ATTACH TO LANDLORD' S INTEREST IN THE BUILDING, PREMISES OR PROPERTY). 

 

Subject to Tenant's
completion of the Improvements on or before December 31, [***], Landlord shall make available to Tenant an allowance ("Allowance")
of up to $[***] (the “Allowance Amount”) to offset the total costs incurred by Tenant to construct and install the Improvements,
Tenant is solely liable and responsible for directly paying all costs (whether hard or soft) incurred in connection with the performance,
design, construction and installation of the improvements. For purposes of this Lease, the Improvements shall be treated as “Alterations”,
Tenant shall furnish to Landlord such information and evidence as Landlord may reasonably request from time to time to enable Landlord
to monitor completion of the Improvements and determine Tenant's compliance with the provisions of this Exhibit I. Within 20 days after
Landlord’s receipt of the following items (provided the specific Improvements is of the nature that the Tenant would normally be able
to obtain such item): (i) full and unconditional final lien waivers from all general contractors and subcontractors, (ii) a final contractor’s/subcontractor’s
sworn statement, (iii) a certificate of completion for the Improvements signed by Tenant's contactor, and (iv) a final certificate of
occupancy for the Improvements, if applicable, Landlord shall pay the Allowance to Tenant, in an amount equal to the lesser of (a) the
Allowance Amount, or (b) the total hard (but not soft) costs Incurred by Tenant to construct and Install (but not design) the Improvements,
including but not limited to the following, per Exhibit I:

 

		●	Improvements to the premises

 

     

     

    

 

ADDENDUM - OPTION TO RENEW [MARKET
RENT]

 

This Addendum (“Addendum”)
is a part of and incorporated into that certain Standard Industrial Lease (the “Lease”; the Lease together with the Addendum
shall be collectively referred to herein as the “Lease”) dated as of _______________.

 

1.       Tenant
shall have the option(s) (“Renewal Option”) to renew this Lease for three additional term(s) of 60 months (“Renewal
Term”), on all the same terms and conditions set forth in this Lease, except that Base Rent during the Renewal Term shall be
equal to Fair Market Rent or [***]% of the final year's rent with [***]% annual bumps thereafter, whichever is greater (as
defined in subparagraph 2 below). Tenant shall deliver written notice to Landlord of Tenant’s election to exercise the Renewal Option
(“Renewal Notice”) not less than 6 months, nor more than 60 months, prior to the expiry date of the original Term or
the first Renewal Term, as applicable; and if Tenant fails to timely deliver the Renewal Notice to Landlord, then Tenant shall automatically
be deemed to have irrevocably waived and relinquished all remaining Renewal Option(s).

 

2.       “Fair
Market Rent” shall be determined by Landlord, in its sole, but good faith, discretion based upon the annual base rental rates
then being charged in the industrial market sector of the geographic area where the Building is situated for comparable space and for
a lease term commencing on or about the commencement date of the applicable Renewal Term and equal in duration to the applicable Renewal
Term, taking into consideration:  the geographic location, quality and age of the building; the location and configuration of the
relevant space within the applicable building; the extent of service to be provided to the proposed tenant thereunder; applicable distinctions
between “gross” lease and “net” leases; the creditworthiness and quality of Tenant; leasing commissions; and any
other relevant term or condition in making such evaluation, as reasonably determined by Landlord.  In no event, however, shall the
Fair Market Rent be less than the rate of Base Rent in effect as of the expiration date of the original Term or the first Renewal Term,
as applicable.  Landlord shall notify Tenant of Landlord’s determination of Fair Market Rent for the Renewal Term, by providing
a proposed amendment (“Amendment”) in writing within 15 days after receiving the applicable Renewal Notice.

 

3.       Tenant
shall then have 10 days after Landlord’s delivery of the Amendment in which to: (i) accept the Amendment, which acceptance shall
be evidenced by a duly authorized signature delivered to Landlord; or (ii) instead elect to withdraw and revoke its Renewal Notice
in writing, whereupon the Renewal Option shall automatically be rendered null and void.  In the event that Tenant fails to timely
return the Amendment or revoke the Renewal Notice then Tenant shall automatically be deemed to have elected (i) above.  If, however,
Tenant timely elects (ii), then this Lease shall expire on the original expiry date of the initial Term or the expiration of the current
Renewal Term, as applicable.

 

4.       The
Renewal Option is granted subject to all of the following conditions:

(a)     As of the date on which Tenant delivers its applicable Renewal Notice and continuing through the commencement date of the applicable Renewal
Term, this Lease shall be in full force and effect and no act or omission shall occur which, with the giving of notice or the passage
of time, or both, shall constitute a breach or default by Tenant under this Lease.

(b)     There shall be no further right of renewal after the expiration of the third Renewal Term.

(c)     The Renewal Option is personal to Tenant. In the event that Tenant assigns its interest under this Lease or subleases all or any portion
of the Premises, whether or not in accordance with the requirements of Section 8 of the Lease above, and whether directly or indirectly,
the provisions of this Addendum shall not be available to, or run to the benefit of, and may not be exercised by, any assignee or sublessee.

(d)     Tenant covenants, warrants and represents that if a broker was used to represent Tenant in the negotiation of this Renewal Option then,
the Tenant is solely responsible for all costs and all fees associated with such.  Each party agrees to and hereby does defend, indemnify
and hold the other harmless against and from any brokerage commissions or finder’s fees or claims therefore by a party claiming
to have dealt with the indemnifying party and all costs, expenses and liabilities in connection therewith, including, without limitation,
reasonable attorneys’ fees and expenses, for any breach of the foregoing.  The foregoing indemnification shall survive the
termination or expiration of the Lease or extension of Lease.

 

    1

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