Document:

EX-10.17

 Exhibit 10.17 
 K2M GROUP HOLDINGS, INC. 
 2010 INDEPENDENT AGENT STOCK OPTION PLAN

 RECITALS 
  

	 	SECTION 1.	GENERAL PURPOSE OF THE PLAN; DEFINITIONS  

 The name of the plan is the K2M Group Holdings, Inc. 2010 Independent Agent Stock Option Plan (the “Plan”). The purpose of the Plan is to encourage and enable independent sales agents
(“Agents”) of K2M Group Holdings, Inc., a Delaware corporation (the “Company”), or any of its subsidiaries and/or sales associate employees of such Agents (“Sales Associates”), to acquire an equity
interest in the Company. It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests with those of the Company, thereby stimulating their efforts on the
Company’s behalf and strengthening their desire to continue in such capacity. 
 The following terms shall be defined as
set forth below: 
 “Act” means the Securities Act of 1933, as amended, and the rules and regulations
thereunder. 
 “Award” or “Awards” shall mean an award of Options granted under the Plan.

 “Award Agreement” means an agreement evidencing an Award hereunder. 

“Board” means the Board of Directors of the Company or its successor entity. 

“Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder. 

“Effective Date” means the date on which the Plan is approved by the Board and by the stockholders of the Company (to
the extent stockholder approval is required by applicable law and/or the certificate of incorporation of the Company). 

“Eligible Participant” means any Agent or Sales Associate. 

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

 “Exclusive Distribution Agreement” means a distribution agreement between an Agent, on the one hand,
and the Company or one of its Subsidiaries, on the other hand, that provides that such Agent may not sell any product that competes with any Company Product (as defined in such distribution agreement) in the Territory (as defined in such
distribution agreement) during the term thereof and for at least twelve (12) months thereafter (with such exceptions to the scope of exclusivity as may be approved by the Board or the Grant Committee and that are set forth in such distribution
agreement).  

 “Fair Market Value” of the Stock on any given date means the fair market
value of the Stock determined in good faith by the Board; provided, however, that (i) if the Stock is then listed on a national securities exchange or quoted on a national quotation system, the Fair Market Value on any given date
is the closing sale price on such date; (ii) if the Stock is not then listed on a national securities exchange or quoted on a national quotation system but is then traded on an over-the-counter market, the Fair Market Value on any given date is
the closing sale price as reported by such over-the-counter market on such date; or if no such closing sale price information is available, the average of the highest bid and lowest asked prices for the Stock reported on such date. For any date that
is not a trading day, the Fair Market Value of the Stock for such date will be determined by using the closing sale price or the average of the highest bid and lowest asked prices, as appropriate, for the immediately preceding trading day. The Board
can substitute a particular time of day or other measure of closing sale price if appropriate because of changes in exchange or market procedures. Notwithstanding the foregoing, if the date for which Fair Market Value is determined is the first day
when trading prices for the Stock are reported on NASDAQ or trading on a national securities exchange, the Fair Market Value shall be the “Price to the Public” (or equivalent) set forth on the cover page for the final prospectus relating
to the Company’s initial Public Offering. 
 “Grant Committee” has the meaning specified in
Section 2(a). 
 “Option” means any option to purchase shares of Stock granted pursuant to Section 5.

 “Preferred Terms” means a grant of an Option that includes the following terms: (i) the Person to whom
such Option is granted is an Eligible Participant, (ii) such Eligible Participant (or in the case of a Sales Associate, the Agent by whom such Sales Associate is employed) is party to an Exclusive Distribution Agreement, (iii) the vesting
criteria for such Option is based on predetermined sales revenue targets for sales of Company Products (as defined in such Exclusive Distribution Agreement) by such Eligible Participant (and/or by the Agent employer, in the case of a Sales
Associate), (iv) such Eligible Participant (and in the case of a Sales Associate, the Agent by whom such Sales Associate is employed) is required to be party to such Exclusive Distribution Agreement at all times during the applicable vesting
period of such Option and at the time of any exercise of such Option, unless otherwise provided for in the Award Agreement, (v) at the time of any exercise of such Option, such Eligible Participant (and in the case of a Sales Associate, the
Agent by whom such Sales Associate is employed) shall not then be in material breach of the terms and conditions of such Exclusive Distribution Agreement and (vi) such Option grant is made pursuant to an Award Agreement that includes terms and
conditions that are materially consistent with the form of award agreement attached as Exhibit A hereto, or that are otherwise approved by the Board. 
 “Public Offering” means the sale of shares of Stock to the public pursuant to an effective registration statement (other than a registration statement on Form S-4, Form S-8 or any similar
or successor form) filed under the Act. 
 “Sale Event” means any of the following, regardless of the form
thereof: (i) the dissolution or liquidation of the Company, (ii) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (iii) a merger, reorganization or
consolidation in which the outstanding shares of Stock are converted into or 

  
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exchanged for securities of the successor entity (or a parent thereof) and the holders of the Company’s outstanding voting power immediately prior to such transaction do not own a majority
of the outstanding voting power of the successor entity immediately upon completion of such transaction, (iv) the sale of all or a majority of the outstanding capital stock of the Company to an unrelated person or entity or (v) any other
transaction in which the owners of the Company’s outstanding voting power prior to such transaction do not own at least a majority of the outstanding voting power of the successor entity immediately upon completion of the transaction;
provided, however, that in no event shall an initial Public Offering constitute a Sale Event. 

“Stock” means the common stock, par value $0.001 per share, of the Company, subject to adjustments pursuant to
Section 3. 
 “Subsidiary” means any corporation or other entity (other than the Company) in any unbroken
chain of corporations or other entities beginning with the Company if each of the corporations or entities (other than the last corporation or entity in the unbroken chain) owns stock or other interests possessing 50% or more of the economic
interest or 50% or more of the total combined voting power of all classes of stock or other interests in one of the other corporations or entities in the chain. 
  

	 	SECTION 2.	ADMINISTRATION OF PLAN; AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS  

(a) Administration of Plan. The Plan shall be administered by the Board; provided, however, to the extent expressly
provided for in Section 2(c) below, a committee or committees of the Board, each comprised of not less than two members of the Board (each a “Grant Committee”) may from time to time be established to exercise the powers
provided for in Section 2(c) below. Determinations of the Board (or, subject to Section 2(c) below, the Grant Committee) made under this Plan will be conclusive and will bind all interested parties, including all Eligible Participants and
all successors, assigns, heirs, representatives and transferees thereof. 
 (b) Powers of the Full Board. The Board shall
have the power and authority: 
 (i) to select the Eligible Participants to whom Awards may from time to time be
granted, and to grant such Awards that are consistent with the terms of the Plan; 
 (ii) to determine the
timing of any grant of Awards; 
 (iii) to determine the number of shares of Stock to be covered by any Award;

 (iv) to determine and modify from time to time the terms and conditions, including restrictions, not
inconsistent with the terms of the Plan, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the form of written instruments evidencing the Awards; 

(v) to accelerate at any time the exercisability or vesting of all or any portion of any Award; 

  
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 (vi) to impose any limitations on Awards granted under the Plan, including
limitations on transfers, repurchase provisions and the like and to exercise repurchase rights or obligations; 

(vii) subject to the terms of Section 5(a)(ii), to extend at any time the period in which Options may be exercised;
and 
 (viii) at any time to (A) adopt, alter and repeal such rules, guidelines and practices for
administration of the Plan and for its own acts and proceedings as it shall deem advisable, (B) interpret the terms and provisions of the Plan and any Award (including related written instruments), (C) make all determinations it deems
advisable for the administration of the Plan and (D) decide all disputes arising in connection with the Plan and (E) otherwise supervise the administration of the Plan. 

(c) Powers of the Grant Committee. The Grant Committee shall have the power and authority (which shall be concurrent with the
power and authority of the Board to the extent of any duplication with the authority of the Board described in Section 2(b), except that, to the extent that any action of the Grant Committee is inconsistent with any action of the Board, the
Board’s action shall control): 
 (i) to select the Eligible Participants to whom Awards may from time to
time be granted, and to grant Awards that are consistent with the Preferred Terms and otherwise consistent with the terms of the Plan); 
 (ii) to determine the timing of any grant of Awards; 
 (iii) to
determine the number of shares of Stock to be covered by any Award; 
 (iv) to determine and modify from time to
time the terms and conditions, including restrictions, not inconsistent with the terms of the Plan and the Preferred Terms, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the form of written
instruments evidencing the Awards; 
 (v) to impose any limitations on Awards granted under the Plan, including
limitations on transfers, repurchase provisions and the like and to exercise repurchase rights or obligations; 

(vi) subject to the provisions of Section 5(a)(ii), to extend at any time the period in which Options may be
exercised; and 
 (vii) in each case, to the extent consistent with the terms of the Plan, the Preferred
Terms and all rules, guidelines and regulations from time to time adopted by the Board at any time to (A) adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts and proceedings,
(B) interpret the terms and provisions of the Plan and any Award (including related written instruments), (C) make all determinations it deems advisable for the administration of the Plan and (D) decide all disputes arising in
connection with the Plan and (E) otherwise supervise the administration of the Plan. 

  
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 (d) Final and Binding Effect. Unless otherwise expressly set forth herein, each of
the Board and the Grant Committee, with respect to any grant, may exercise its discretion hereunder at the time an Award is granted or thereafter. All decisions and interpretations of the Board or the Grant Committee (subject, in the case of the
Grant Committee, to the provisions in Section 2(c) relating to inconsistencies between Board and Grant Committee action) shall be final and binding on all persons, including the Company and Plan grantees, and shall otherwise be accorded the
maximum deference permitted by applicable law. 
 (e) Indemnification. Neither the Board nor the Grant Committee, nor any
member of either or any delegatee thereof (including any officer of the Company), shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and
the Grant Committee (and any delegatee thereof, including any officer of the Company) shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation,
reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and under any directors’ and officers’ liability insurance coverage which may be in effect from time to time. 

 

	 	SECTION 3.	STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION  

 (a) Stock Issuable. The maximum number of shares of Stock reserved and available for issuance under the Plan shall be 1,420,285 shares of Stock, subject to adjustment as provided in
Section 3(b). For purposes of this limitation, the shares of Stock underlying any Awards which are forfeited, canceled, reacquired by the Company, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) shall be
added back to the shares of Stock available for issuance under the Plan. Shares of Stock that have been actually issued under the Plan shall not be returned to the share reserve for future grants under the Plan; except that shares of Stock issued
pursuant to an Award other than a Option which are repurchased by the Company at the original purchase price of such shares shall be returned to the share reserve for future grant under the Plan. The shares available for issuance under the Plan may
be authorized but unissued shares of Stock or shares of Stock reacquired by the Company and held in its treasury. 
 (b)
Changes in Stock. Subject to Section 3(c) hereof, if, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock,
the outstanding shares of Stock are increased or decreased or are exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other
non-cash assets are distributed with respect to such shares of Stock or other securities, or, if, as a result of any merger, consolidation or sale of all or substantially all of the assets of the Company, the outstanding shares of Stock are
converted into or exchanged for a different number or kind of securities of the Company or any successor entity (or a parent or subsidiary thereof), then the Board shall make an appropriate or proportionate adjustment in
(i)

  
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the maximum number or kind of shares reserved for issuance under the Plan, (ii) the number of Options that can be granted to any one individual grantee, (iii) the number and kind of
shares or other securities subject to any then outstanding Awards under the Plan, (iv) the exercise price and/or exchange price for each share subject to any then outstanding Options under the Plan, without changing the aggregate exercise price
(i.e., the exercise price multiplied by the number of Options) as to which such Options remain exercisable, and (v) to the extent consistent with an exception from the application of Section 162(m) of the Code (where the application of
such an exception is sought), any performance-based criteria established in connection with Awards. The adjustment by the Board shall be final, binding and conclusive. No fractional shares of Stock shall be issued under the Plan resulting from any
such adjustment, but the Board in its discretion may make a cash payment in lieu of fractional shares. 
 The Board may also
adjust the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding Awards to take into consideration material changes in accounting practices or principles, extraordinary dividends, acquisitions or
dispositions of stock or property or any other event if it is determined by the Board that such adjustment is appropriate to avoid distortion in the operation of the Plan. 
 (c) Treatment of Awards in Mergers and Other Sale Events. In the case of and subject to the consummation of a Sale Event, unless otherwise provided in an individual Award agreement, the Board or
the successor entity may, in its sole discretion, determine the effect of a Sale Event on outstanding Awards and take such actions as it may deem appropriate, including, without limitation, the following actions: 

(i) If the Sale Event is one in which there is an acquiring or surviving entity, making appropriate provisions in connection with such
transaction for the assumption or continuation of some or all outstanding Awards or for the grant of new awards in substitution therefor by the acquiror or an affiliate of the acquiror or survivor; 

(ii) If the Sale Event is one in which the holders of Stock will receive upon consummation a payment (whether cash, non-cash or a
combination of the foregoing), then subject to Section 3(e) below the Board may provide for payment (a “cash-out”), with respect to some or all Awards or any portion thereof, equal in the case of each affected Award or portion thereof
to the excess, if any, of (A) the Fair Market Value of one share of Stock (as determined by the Board in its reasonable discretion) times the number of shares of Stock subject to the Award or such portion, over (B) the aggregate exercise
or purchase price, if any, under the Award or such portion, in each case on such payment terms (which need not be the same as the terms of payment to holders of Stock) and other terms, and subject to such conditions, as the Board determines.

 (iii) If the Sale Event (whether or not there is an acquiring or surviving entity) is one in which there is no assumption,
continuation, substitution or cash-out, then, subject to Section 3(e), the Board may provide that each Award requiring exercise will become fully exercisable prior to the Sale Event, in each case on a basis that gives the holder of the Award a
reasonable opportunity, as determined by the Board, following exercise of the Award, to participate as a stockholder in the Sale Event. 

  
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 (d) Termination of Awards Upon Consummation of a Sale Event. Unless otherwise
provided by the Board, each Award will terminate upon consummation of the Sale Event, other than the following: (i) Awards assumed pursuant to Section 3(c)(i) and (ii) Awards converted pursuant to the proviso in Section 3(c)(iii)
into an ongoing right to receive payment other than in Stock. For the avoidance of doubt, and not in limitation of the other rights of the Board and the Grant Committee under the Plan, the Board may elect, effective upon the consummation of a Sale
Event, to terminate any unvested Options without the payment of any consideration therefor. 
 (e) Additional Limitations
Upon Consummation of a Sale Event. Any share of Stock and any cash or other property delivered pursuant to Section 3(c)(ii) or Section 3(c)(iii) with respect to an Award may, in the discretion of the Board, contain such restrictions,
if any, as the Board deems appropriate to reflect any performance or other vesting conditions to which the Award was subject and that did not lapse (and were not satisfied) in connection with the Sale Event. For purposes of the immediately preceding
sentence, a cash-out under Section 3(c)(ii) or the acceleration of exercisability of an Award under Section 3(c)(iii) shall not, in and of itself, be treated as the lapsing (or satisfaction) of a performance or other vesting condition.

  

	 	SECTION 4.	ELIGIBILITY  

Grantees in the Plan will be such Eligible Participants as are selected from time to time by the Board or the Grant Committee in its sole
discretion. 
  

	 	SECTION 5.	STOCK OPTIONS  

Any Option granted under the Plan shall be pursuant to an Award Agreement which shall be in such form as the Board or, to the extent
permitted by the Plan, the Grant Committee may from time to time approve. Option agreements need not be identical. Options granted under the Plan shall be Non-Qualified Stock Options. 

(a) Terms of Stock Options. Options granted under the Plan shall be subject to the following terms and conditions and shall
contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Board or, to the extent permitted by the terms of the Plan and the Preferred Terms, the Grant Committee shall deem desirable: 

(i) Exercise Price. The exercise price per share for the Stock covered by an Option shall be determined by the Board or, subject
to the Preferred Terms, the Grant Committee, as applicable, at the time of grant but shall not be less than 100% of the Fair Market Value on the date of grant. 
 (ii) Option Term. The term of each Option shall be fixed by the Board or, subject to the Preferred Terms, the Grant Committee, as applicable, but no Option shall be exercisable more than ten years
after the date the Option is granted. 
 (iii) Exercisability; Rights of a Stockholder. Options shall become exercisable
at such time or times, whether or not in installments, as shall be determined by the Board or, subject to the Preferred Terms, the Grant Committee, as applicable, at or after the grant date. The Board may at any time accelerate the exercisability of
all or any portion of any Option. An optionee shall have the rights of a stockholder only as to shares acquired upon the exercise of an Option and not as to unexercised Options. 

  
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 (iv) Method of Exercise. Options may be exercised in whole or in part by giving
written notice of exercise to the Company, specifying the number of shares to be purchased. Payment of the purchase price may be made in cash, by certified or bank check, or other instrument acceptable to the Board or the Grant Committee in U.S.
funds payable to the order of the Company in an amount equal to the purchase price of the shares of Stock subject to such Option, or as may otherwise permitted by the Board. 
 Payment instruments will be received subject to collection. No certificates for shares of Stock so purchased will be issued to optionee until the Company has completed all steps required by law to be
taken in connection with the issuance and sale of such shares, including, without limitation, (i) receipt of a representation from the optionee at the time of exercise of the Option that the optionee is purchasing the shares for the
optionee’s own account and not with a view to any sale or distribution thereof, (ii) the legending of any certificate representing the shares to evidence the foregoing representations and restrictions, and (iii) obtaining from
optionee payment or provision for all withholding taxes due as a result of the exercise of the Option. The delivery of certificates representing the shares of Stock to be purchased pursuant to the exercise of an Option will be contingent upon
receipt from the optionee (or a purchaser acting in his or her stead in accordance with the provisions of the Option) by the Company of the full purchase price for such shares and the fulfillment of any other requirements contained in the Award
agreement or applicable provisions of law. 
 (b) Non-transferability of Options. No Option shall be transferable by the
optionee without the prior written consent of the Company and all Options shall be exercisable only by the optionee. 
  

	 	SECTION 6.	TAX WITHHOLDING  

Except as expressly set forth below, all responsibility for taxes in connection with an Award shall be the sole responsibility of the
grantee thereof. To the extent that the Company determines that tax-withholding obligations may arise in connection with an Award, the following provisions of this Section 6 shall apply. Each grantee shall, no later than the date as of which
the value of an Award or of any Stock or other amounts received thereunder first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Board or the Grant
Committee regarding payment of, any federal, state, or local taxes of any kind required by law to be withheld with respect to such income. The Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such
taxes from any payment of any kind otherwise due to the grantee. The Company’s obligation to deliver stock certificates to any grantee is subject to and conditioned on tax obligations being satisfied by the grantee, and the applicable Award
with respect to which withholding is required shall be forfeited upon the failure of the grantee to satisfy such requirements. 

  
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	 	SECTION 7.	AMENDMENTS AND TERMINATION  

 The Board may, at any time, amend or discontinue the Plan and the Board or, subject to the Preferred Terms, the Grant Committee, as applicable, may, at any time, amend or cancel any outstanding Award (or
provide substitute Awards at the same or reduced exercise or purchase price or with no exercise or purchase price in a manner not inconsistent with the terms of the Plan and in the case of any such action by the Grant Committee, the Preferred
Terms), but such price, if any, must satisfy the requirements which would apply to the substituted or amended Award if it were then initially granted under this Plan for the purpose of satisfying changes in law or for any other lawful purpose, but
no such action shall adversely affect rights under any outstanding Award without the holder’s consent. Nothing in this Section 7 shall limit the Board’s authority to take any action permitted pursuant to Section 3(c). 

 

	 	SECTION 8.	STATUS OF PLAN  

With respect to the portion of any Award that has not been exercised and any payments in cash, Stock or other consideration not received
by a grantee, a grantee shall have no rights greater than those of a general creditor of the Company unless the Board shall otherwise expressly determine in connection with any Award or Awards. In its sole discretion, the Board may authorize the
creation of trusts or other arrangements to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such trusts or other arrangements is consistent with the foregoing
sentence. 
  

	 	SECTION 9.	GENERAL PROVISIONS  

 (a) No Distribution; Compliance with Legal Requirements. The Board or the Grant Committee may require each person acquiring Stock pursuant to an Award to represent to and agree with the Company in
writing that such person is acquiring the shares without a view to distribution thereof. No shares of Stock shall be issued pursuant to an Award until all applicable securities law and other legal and stock exchange or similar requirements have been
satisfied. The Board or the Grant Committee may require the placing of such stop-orders and restrictive legends on certificates for Stock and Awards as it deems appropriate. 
 (b) Delivery of Stock Certificates. Stock certificates to grantees under the Plan shall be deemed delivered for all purposes when the Company or a stock transfer agent of the Company shall have
sent such certificates in the United States mail or by nationally recognized overnight courier, addressed to the grantee, at the grantee’s last known address on file with the Company. 

(c) No Service Rights. The adoption of this Plan and the grant of Awards hereunder does not confer upon any Eligible Participant
any right to perform services for the Company or any of its Subsidiaries. 
 (d) Trading Policy Restrictions. Option
exercises and other Awards under the Plan shall be subject to the Company’s and its Subsidiaries’ insider-trading-policy-related restrictions, terms and conditions as may be established by the Grant Committee, or in accordance with
policies set by the Grant Committee, from time to time. 

  
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 (e) Section 409A of the Code. Each Award shall be construed and administered
such that the Award either (i) is not subject to Section 409A of the Code or (ii) satisfies the requirements thereof. 
 (f) Captions. The use of captions in the Plan is for convenience. The captions are not intended to provide substantive rights. 

 

	 	SECTION 10.	GOVERNING LAW  

THE PLAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO ANY PRINCIPLES OF
CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE. 

  
 -10-EX-10.18

 Exhibit 10.18 
 LEASE AGREEMENT 
 BETWEEN 

RIVERAIR, LC, 

as Landlord 
 AND

 K2 MEDICAL, LLC. 
 As Tenant 

 TABLE OF CONTENTS 

 

							
	Section	 	Description	  	Page Number	 
	1.	 	Definitions	  	 	3	  
	2.	 	Rent; Additional Rent	  	 	3	  
	3.	 	Additional Rent	  	 	4	  
	4.	 	Delivery and Condition of Premises	  	 	4	  
	5.	 	Operation of Building	  	 	4	  
	6.	 	Conduct of Business by Tenant	  	 	4	  
	7.	 	Alterations and Tenant’s Property	  	 	4	  
	8.	 	Repairs	  	 	5	  
	9.	 	Liens	  	 	5	  
	10.	 	Subordination and Modification	  	 	6	  
	11.	 	Inability to Perform	  	 	6	  
	12.	 	Destruction	  	 	6	  
	13.	 	Eminent Domain	  	 	7	  
	14.	 	Assignment and Subletting	  	 	7	  
	15.	 	Utilities and Service; Tenant’s Expense	  	 	8	  
	16.	 	Default; Remedies	  	 	8	  
	17.	 	Insolvency or Bankruptcy	  	 	9	  
	18.	 	Fees and Expenses; Indemnity; Liability Insurance	  	 	9	  
	19.	 	Access to Premises; Landlord’s Right to Enter	  	 	10	  
	20.	 	Waiver; Release	  	 	10	  
	21.	 	Tenant’s Certificates	  	 	11	  
	22.	 	Rules and Regulations	  	 	11	  
	23.	 	Tax on Tenant’s Personal Property	  	 	11	  
	24.	 	Authority	  	 	11	  
	25.	 	Signage	  	 	11	  
	26.	 	Parking	  	 	11	  
	27.	 	Miscellaneous	  	 	12	  

 LEASE 

THIS LEASE is made and entered into as of this 12th day of May 2004, by and between RIVERAIR, LC (herein called
“Landlord”), and K2 MEDICAL, LLC. (herein called
“Tenant”). 
 WITNESSETH: 
 Upon and subject to the terms, covenants and conditions hereinafter set forth, Landlord leases to Tenant and Tenant leases from Landlord the Property (as hereinafter defined): 

1. Definitions 
  

	 	1.1	Additional Rent: As defined in Section 2.4, below. 

  

	 	1.2	Basic Rent: As defined in Section 2.1, below. 

  

	 	1.3	Building: The building located at 751 Miller Drive, S.E., Leesburg, VA 20175, upon the Real Property. 

 

	 	1.4	Guarantor(s): K2 MEDICAL, LLC. 

  

	 	1.5	Lease: This Lease, as amended from time to time, and all Exhibits attached hereto. 

 

	 	1.6	Lease Year: Each period of twelve (12) calendar months during the Term, commencing on the Rent Commencement Date and Partial Lease Year ending on the Term
Expiration Date. 

  

	 	1.7	Premises: Approximately 10,475 square feet of rentable floor area, located within the Building, Suite F-1. 

 

	 	1.8	Real Property: The land comprising all that certain parcel of land situated in Loudoun County, Virginia, and identified as Parcel G, Tax Map 60.

  

	 	1.9	Rent Commencement Date: Approximately September 1, 2004 or as soon as Premises is finished to comply with mutually agreed upon improvements; The lease term
shall commence fourteen (14) days after the Substantial Completion Date of the Tenant Improvements. 

  

	 	1.10	Term: Five (5) years, unless the Term shall sooner terminate as hereinafter provided. 

 

	 	1.11	Term Expiration Date: August 31, 2009. 

  

	 	1.12	Landlord Consent: Whenever Landlord consent is required, consent shall not unreasonably be withheld or delayed. 

 

	 	1.13	Renewal Option: Tenant shall have one 3-year renewal option at the then escalated base rent rate or 95% of the market rate, whichever is less.

 2. Rent: Additional Rent 
 2.1 Basic Rent. Commencing on the Rent Commencement Date, Tenant shall pay to Landlord during the Term a base rental (“Basic Rent”) which shall be in the amount of $16.50 full-service but
not including utilities or janitorial cleaning per square foot. Basic Rent shall be payable by Tenant in lawful money of the United States in equal consecutive monthly installments of one-twelfth the Basic Rent on or before the first day of each
calendar month, in advance, at the address specified for Landlord below, or such other place as Landlord shall designate, without any prior demand therefor and without any deductions or setoff whatsoever. Rent for any partial month shall be pro
rated at the rate of one-thirtieth (1/30th) of the monthly Basic Rent per day. 
 2.2 Improvement Rental Rate.
Intentionally Deleted 
 2.3 Adjustment of Rent. The Basic Rent set forth in Paragraph 2.1 herein above shall be adjusted
annually on each anniversary of the Rent Commencement Date during the Term by multiplying the Basic Rent for the immediately preceding Lease Year by Three percent (3%) per annum, computed annually. 

2.4 Additional Rent. Intentionally Deleted. 
 2.5 Late Payment Charge. If Tenant shall fail to pay any Basic Rent or Additional Rent within Seven (7) days after the same is due and payable, such unpaid amounts shall be subject to a late
payment charge equal to five percent (5%) of such unpaid amounts in each instance to cover Landlord’s additional administrative costs resulting from Tenant’s failure. Such late payment charge shall be paid to Landlord together with
such unpaid amounts. Tenant shall have one (1) grace period in any twelve (12) month period. 

  
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 2.6 Returned Check Charge. A service charge of Twenty Five Dollars ($25.00) will be
automatically made for each instance in which a check is returned unpaid for any reason by the Tenant’s bank. 
 3.
Additional Rent     Intentionally Deleted. 
 4. Delivery and Condition of Premises Landlord
agrees that it will use best efforts to cause construction of the Premises to be completed in the manner and utilizing materials similar to those described in the mutually agreed space plan. If Landlord shall be unable to give possession of the
Premises on the Rent Commencement Date by reason of the fact that the construction of the Initial Improvements is not substantially completed, Landlord shall not be subject to any liability for failure to give possession on said date. Under such
circumstances, the rent payable pursuant to Paragraph 2 of this Lease shall be abated and shall not commence until Initial Improvements are substantially completed. No such failure to give possession on the Rent Commencement Date shall affect the
validity of this Lease or the obligations of Tenant extended hereunder, and in no event shall the Term be extended beyond the Lease Termination Date. Notwithstanding the foregoing, Tenant shall have fourteen (14) days prior to Lease
Commencement for installation of furniture, fixtures and equipment. 
 5. Operation of the Building and Real Property

 5.1 Maintenance of Building and Real Property. The manner in which the Building and Real Property are maintained and
operated, and the expenditures therefor shall be at the sole discretion and expense of Landlord, and consistent with other first class flex office buildings in the Northern Virginia area. 

5.2 Alterations or Additions. Landlord hereby reserves the right, at its expense, at any time and from time to time, to make
alterations or additions to the Building and Real Property. Landlord also reserves the right at any time and from time to time to construct other improvements in the Building or on the Real Property and to enlarge same and make alterations therein
or additions thereto. Understood and agreed that said alterations/additions/improvements will not substantially diminish Tenant’s occupancy of the building, premises or parking areas. 

6. Conduct of Business by Tenant 
 6.1 Permitted Use. Tenant shall use and occupy the Premises during the Term of the Lease solely for use as a Medical Device distribution facility and associated business offices, as permitted by
law, and for no other use or uses without the prior written consent of Landlord. 
 6.2 Uses not Permitted. Tenant shall
not use or occupy, or permit the use or occupancy of, the Premises or any part thereof for any use other than the use specifically set forth in Section 6.1 hereof, or in any manner that, in Landlord’s judgment, would adversely affect or
interfere with any services required to be furnished by Landlord to Tenant or to any other tenant or occupant of the Building, or with the proper and economical rendition of any such service, or with the use or enjoyment of any part of the Building
by any other tenant or occupant. 
 6.3 Tenant’s Compliance with Laws. Tenant, at Tenant’s cost and expense,
shall comply with all laws, orders and regulations of federal and municipal authorities, and with all directions, pursuant to law, of all public officers, that shall impose any duty upon Landlord or Tenant with respect to the Premises or the use or
occupancy thereof, and with the Declaration of Covenants and Restrictions for Leesburg Airpark Business Center (“Covenants”) applicable to Tenant’s use or occupancy of the Premises. A copy of the Covenants shall be available for
inspection during normal business hours at Ward Corporation, 1300 Piccard Drive, Rockville, Maryland 20850. 
 6.4
Tenant’s Compliance with Insurance Requirements, etc. Tenant shall not do anything, or permit anything to be done, in or about the Premises which shall conflict with the provisions of any insurance policies covering the Building or any
property located therein, or result in a refusal by any insurance company to insure the Building or any such property, in amounts reasonably satisfactory to Landlord, or subject Landlord to any liability or responsibility for injury to any person or
property by reason of any business operation being conducted in the Premises, or cause any increase in the insurance rates applicable to the Building or property located therein. Tenant, at Tenant’s expense, shall comply with all rules, orders,
regulations or requirements of the American Insurance Association (formerly the National Board of Fire Underwriters) and with any similar body that shall hereafter perform the function of such Association. Landlord shall give twenty day written
notice to Tenant to cure any deficiencies. 
 7. Alterations and Tenant’s Property 

7.1 Initial Improvements. Landlord is under no obligation to make structural or other alterations, decorations, additions or
improvements in or to the Premises; provided, however, Landlord shall install the Initial Improvements as set forth in the agreed space plan attached hereto. 
 7.2 Approved Alterations. Tenant shall make no non-cosmetic alterations, installations, additions or improvements in or to the Premises or any portion thereof or any alteration to the mechanical
systems of the Premises or any portion thereof, including, without limitation, the plumbing and air conditioning systems of the Premises or any portion thereof or to the apparatus of the Premises or any portion thereof of other or like nature
without Landlord’s prior written consent (any such alteration, installation, addition or improvement for which Landlord’s approval is required is hereinafter referred to as an “Approved Alteration”, and shall include Initial
Improvements). Consent will not be unreasonably withheld. Unless otherwise agreed in writing by Landlord, Tenant shall remove all such Unapproved Alterations and restore the portion of the Premises affected thereby to its former condition at its
sole cost and expense on or before the Term Expiration Date. 
 7.3 Requirements for Approved Alterations. Each
alteration, installation, addition or improvement, shall be subject to the limitations that such Alteration (a) does not adversely affect the structural strength of the Premises or any portion thereof; (b) does not adversely affect the
mechanical, plumbing, electrical and HVAC systems of the 

  
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Premises or any portion thereof; (c) does not materially affect the external appearance of value of the Premises or any portion thereof; and (d) does not diminish or impair the use of
the Building as a first class office building within reasonable estimation of Landlord. Prior to making any Approved Alteration, plans and specifications therefor in such detail as Landlord may request shall be submitted to Landlord and the
mortgagees of the Building and Real Property for approval. Landlord will respond to Tenant’s request for approval of plans within five (5) business days. 
 7.4 Standards for Approved Alterations. All Alterations made by Tenant in the Premises or any portion thereof shall be constructed and completed in a good and workmanlike manner at Tenant’s
sole cost and expense by contractors approved by Landlord. Prompt payment shall be made by Tenant and Tenant shall keep the Premises free of mechanics’ and materialmen’s liens and cause the same to be promptly discharged or bonded. Tenant
shall deliver to Landlord written and unconditional waivers of mechanics’ and materialmen’s liens upon the Real Property for all work, labor and services to be performed and material to be furnished in connection with the proposed
Alterations. Tenant shall obtain all necessary governmental permits, licenses and approvals, and shall promptly comply with all applicable laws. The Alterations shall be completed in accordance with the approved plans and specifications where such
approvals are required. 
 7.5 Tenant’s Property. All appurtenances, fixtures, improvements, additions and other
property attached to or installed in the Premises, whether by Landlord or by or on behalf of Tenant, and whether at Landlord’s expense or Tenant’s expense, or at the joint expense of Landlord and Tenant, shall be and remain the property of
Landlord except for trade fixtures and those other furniture, fixtures and equipment approved in writing by Landlord for Tenant to remove. Any furnishings and personal property placed in the Premises that are removable without material damage to the
Building or the Premises, whether the property of Tenant or leased by Tenant, are herein called “Tenant’s Property”. Any replacements of any property of Landlord, whether made at Tenant’s expense or otherwise, shall be and remain
the property of Landlord. 
 7.6 Removal of Tenant’s Property. Any of Tenant’s Property on the Premises prior
to the Term Expiration Date shall be removed by Tenant at Tenant’s cost and expense, and Tenant shall, at its cost and expense, repair any damage to the Premises or the Building caused by such removal, all on or before the Term Expiration Date,
normal wear and tear notwithstanding. Any of Tenant’s Property not removed from the Premises prior to the expiration of the Term shall, at Landlord’s option, become the property of Landlord or Landlord may remove such Tenant’s
Property, and Tenant shall pay to Landlord Landlord’s actual reasonable costs of removal and of any repairs in connection therewith within ten (10) days after the receipt of a bill therefor. Tenant’s obligation to pay any such costs
shall survive any termination of this Lease. 
 8. Repairs 

8.1 Maintenance of Premises. Tenant shall maintain the Premises, as defined in paragraph 1.7, at Tenant’s cost and expense,
and shall make all repairs and replacements to preserve the Premises in good working order and in clean, safe and sanitary condition. Landlord shall maintain the building infrastructure, Roof, Plumbing, Electrical, and HVAC to provide at all times
heating and cooling service befitting other flex complex in Leesburg, VA of similar age. 
 8.2 Repairs by Tenant.
Subject to the provision of paragraph 12.1, all repairs made by or on behalf of Tenant or any person claiming through or under Tenant shall be made and performed (a) at Tenant’s cost and expense and at such time and in such manner as
Landlord may designate, (b) by contractors or mechanics approved by Landlord, (c) so that same shall be at least equal in quality, value, and utility to the original work or installation, and (d) in accordance with the rules and
regulations for the Building and the Real Property adopted by Landlord from time to time, and in accordance with all applicable laws and regulations of governmental authorities having jurisdiction over the Premises. 

8.3 Maintenance of Common Areas. Landlord shall operate and maintain the common or public areas of the Real Property and the
Building in a manner appropriate and consistent with other first class flex office buildings in the Northern Virginia area. 

9. Liens 

9.1 Work Done on Tenant’s Behalf. Any Alterations, repairs, or other work done on the Premises shall be solely on behalf, and
for the account, of Tenant and not of Landlord. Landlord’s consent to any Alterations shall not be deemed or construed to be Landlord’s consent or agreement to subject Landlord’s interest in the Premises or the Real Property to any
mechanics’ or materialmen’s liens which may be filed on account of such Alterations. Tenant shall keep the Premises free from any liens arising out of any work performed, material furnished or obligations incurred by or for Tenant or any
person or entity claiming through or under Tenant. 
 9.2 Landlord’s Right to Release Lien. In the event that Tenant
shall not, within thirty (30) days following the imposition and notification of the lien of any lien described in Section 9.1 above, cause same to be released of record by payment or posting of a proper bond, Landlord shall have, in
addition to all other remedies provided herein and by law, the right but not the obligation to cause same to be released by such means as it shall deem proper, including payment of the claim giving rise to such lien. All such sums paid by Landlord
and all expenses incurred by it in connection therewith shall be considered Additional Rent and shall be payable to it by Tenant on demand. Any such action by Landlord shall not in any event be deemed a waiver of Tenant’s default with respect
thereto. 
 9.3 Landlord’s Right to Post Notices. Landlord shall have the right at all times to post and keep posted
on the Premises any notices permitted or required by law, or that Landlord shall deem proper, for the protection of Landlord, the Premises, the Building, and any other party having an interest therein, from mechanics’ and materialmen’s
liens, and Tenant shall give to Landlord at least ten (10) business days’ prior notice of commencement of any construction on the Premises. 

  
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 10. Subordination and Modification 

10.1 Subordination of Lease. Without the necessity of any additional document being executed by Tenant for the purpose of
effecting a subordination, Tenant agrees that this Lease and Tenant’s tenancy hereunder are and shall be automatically subject and subordinate at all times to (a) all ground leases or underlying leases that may now exist or hereafter be
executed affecting the Building or the Real Property or both, (b) the lien of any mortgage deed of trust or similar security instrument that may now exist or hereafter be executed in any amount for which the Building, the Real Property, ground
leases or underlying leases, or Landlord’s interest or estate in any of said items is specified as security, and (c) all renewals, modifications, consolidations, replacements and extensions of any of the foregoing, provided the same does
not materially alter the terms of this Lease 
 Tenant covenants and agrees to execute and deliver, upon demand by Landlord and
in the form requested by Landlord, any additional documents evidencing the subordination of this Lease with respect to any such ground lease or underlying lease, or the lien of any such mortgage or deed of trust. If Tenant fails to execute such
instruments within fifteen (15) days after written request therefor, Landlord is hereby appointed Tenant’s attorney-in-fact to execute, acknowledge and deliver any and all such instruments for and on behalf of Tenant, provided the same
does not materially alter the terms of this Lease. 
 10.2 Attornment. In the event that any ground lease or underlying
lease terminates for any reason or any mortgage or deed of trust is foreclosed or a conveyance in lieu of foreclosure is made for any reason, Tenant shall, notwithstanding any subordination of any ground lease, underlying lease or lien to this
Lease, attorn to and become the Tenant of the successor in interest to Landlord at the option of such successor in interest. 

10.3 The foregoing notwithstanding, subordination of this Lease to any mortgage and attornment by Tenant pursuant to Section 10.2
is conditioned on the holder of such mortgage executing a nondisturbance agreement in favor of Tenant. 
 11. Inability
to Perform; No Delay to Constitute Eviction. If, for any reason, Landlord or Tenant is unable to perform or make or is delayed in fulfilling any of its obligations under this Lease, and such failure arises from or through acts of God, strikes,
lockouts, labor difficulties, explosions, sabotage, accidents, riots, civil commotions, acts of war or warlike conditions in this country, fire and casualty, legal requirements, energy shortage or causes beyond the reasonable control of Landlord or
Tenant, no such inability or delay shall constitute an actual or constructive eviction, in whole or in part, or entitle Tenant to any abatement or diminution of Basic Rent or Additional Rent, or relieve Tenant from any of its obligations under this
Lease, or impose any liability upon Landlord or its agents by reason of inconvenience or annoyance to Tenant or by reason of injury to or interruption of Tenant’s business, or otherwise. 

12. Destruction 
 12.1 Damages Caused By Tenant. Subject to the provisions of section 8.1 all injury to the demised premises and other portions of the building of which it is a part, caused by Tenant, its agents,
employees, invitees and visitors, will be repaired by Landlord at the expense of Tenant except as provided in Section 8.2, or repaired by Tenant with Landlord’s approval in accordance with Section 8. Tenant shall reimburse Landlord
for such repairs within ten (10) days of receipt of invoice from Landlord of the costs. At its election, Landlord may regard the same as additional rent, in which event the cost shall become additional rent payable with the installment of rent
next becoming due after notice is received by Tenant from Landlord. This provision shall be construed as an additional remedy granted to Landlord and not limitation of any other rights and remedies, which Landlord has or may have in said
circumstances. 
 Fire or Casualty Damage. In the event of damage or destruction of the demised premises by fire or any
other casualty without the fault or neglect of Tenant, its agents, employees, invitees and visitors, this Lease shall not be terminated, but structural damage to the premises including demising partition and doors shall be promptly and fully
repaired and restored as the case may be by Landlord at its own cost and expense. Due allowance, however, shall be given for reasonable time required for adjustment and settlement of insurance claims, and for such other delays as may result from
government restrictions and controls on construction, if any and for strikes, national emergencies and other conditions beyond the control of Landlord. Restoration by Landlord shall not include replacement of furniture, equipment or other items that
do not become part of the building or any improvements to the demised premises in excess of those provided for as building standard items as of the commencement date of this Lease. Tenant shall be responsible for the repair and restoration of the
demised premises and Tenant’s property beyond Landlord’s obligation at no cost to Landlord, in accordance with the provisions of Section 8, for which it shall maintain adequate insurance pursuant to section 18.3 herein. In the event
of fire or casualty damage to the demised premises caused by the fault or neglect of Tenant, its agents, employees, invitees or visitors. Landlord shall restore structural damages as described herein at Tenant’s cost and expense. It is agreed
that in any of the aforesaid events, this Lease shall continue in full force and effect. 
 12.2 Termination of Lease in the
Event of Total Destruction. Notwithstanding the provisions of Section 12.1 hereof, if, prior to or during the Term (a) the Premises shall be totally damaged or rendered wholly untenantable by fire or other casualty, and if Landlord
shall determine, in its sole discretion, not to restore the Premises, or (b) the Building shall be so damaged by fire or other casualty that, in Landlord’s opinion, substantial alteration, demolition or reconstruction of the Building shall
be required (whether or not the Premises shall have been damaged or rendered untenantable), then, in any of such events, Landlord, at Landlord’s option, may give to Tenant within Ninety (90) days after such fire or other casualty, a thirty
(30) days’ notice of termination of this Lease and, in the event such notice is given, this Lease and the Term shall terminate upon the expiration of such thirty (30) days with the same effect as if the date of expiration of such
thirty (30) days were the Term Expiration Date; and the Basic Rent and Additional Rent shall be apportioned as of such date and any prepaid portion of Basic Rent or Additional Rent for any period after such date shall be refunded by Landlord to
Tenant-notice to Tenant as of the date of actual loss. Unless Tenant is able to conduct business in the Premises, such notice shall effect the termination of this Lease and the Basic Rent and any Additional Rent shall be apportioned as of such date
and any prepaid portion of the Basic Rent or Additional Rent for any period after such date shall be refunded by Landlord to Tenant. 

  
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 12.3 Landlord’s Insurance. Landlord shall obtain and maintain, throughout the
Term, in Landlord’s casualty insurance policies, provisions to the effect that such policies shall not be invalidated should the insured waive, in writing, prior to loss, any or all right, of recovery against any party for loss occurring to the
Building. In the event that at any time Landlord’s casualty insurance carriers shall exact an additional premium for the inclusion of such or similar provisions, Landlord shall give tenant notice thereof. In such event, if Tenant agrees, in
writing, to reimburse Landlord for such additional premium for the remainder of the Term, Landlord shall require the inclusion of such or similar provisions by Landlord’s casualty insurance carriers. As long as such or similar provisions are
included in Landlord’s fire insurance policies then in force, Landlord hereby waives any right of recovery against Tenant, any other permitted occupant of the Premises, and any of their servants, employees, agents or contractors, for any loss
occasioned by fire or other casualty that is an insured risk under such policies. In the event that at any time Landlord’s casualty insurance carriers shall not include such or similar provisions in Landlord’s fire insurance policies, the
waivers set forth in the foregoing sentence shall be deemed of no further force or effect. 
 12.4 Tenant not Relieved from
Liability. Except to the extent expressly provided in Section 12.3 hereof, nothing contained in this Lease shall relieve Tenant of any liability to Landlord or to its insurance carriers which Tenant may have under law or under the
provisions of this Lease in connection with any damage to the Premises or the Building by fire or other casualty. 
 12.5 No
Abatement of Rent if Damage Caused by Tenant. Notwithstanding the foregoing provisions of Section 12 hereof, if any such damage is due to the fault or neglect of Tenant, any person claiming through or under Tenant, or any of their servants,
employees, agents, contractors, visitors or licensees, then there shall be no abatement of Basic Rent or Additional Rent by reason of such damages, unless Landlord is reimbursed for such abatement of Basic Rent or Additional Rent pursuant to any
rental insurance policies that Landlord may, in its sole discretion, elect to carry. 
 13. Eminent Domain 

13.1 Total Condemnation. If all of the Premises is condemned or taken in any manner for public or quasi-public use, including but
not limited to a conveyance or assignment in lieu of a condemnation or taking, this Lease shall automatically terminate as of the date of dispossession of Tenant as a result of such condemnation or other taking. If a part of the Premises is so
condemned or taken, this Lease shall automatically terminate as to the portion so long as Tenant is able to conduct business within the remaining portion of the Premises, of the Premises so taken as of the date of dispossession of Tenant as a result
of such condemnation or taking. If such portion of the Building is condemned or otherwise taken so as to require, in the opinion of Landlord, a substantial alteration or reconstruction of the remaining portions thereof, this Lease may be terminated
by Landlord, as of the date of dispossession of Tenant as a result of such condemnation or taking, by written notice to Tenant within sixty (60) days following notice to Landlord as of the date on which said dispossession will occur.

 13.2 Landlord Entitled to Award. Landlord shall be entitled to the entire award in any condemnation proceeding or
other proceeding for taking for public or quasi-public use, including, without limitation, any award made for the value of the leasehold estate created by this Lease. No award for any partial or entire taking shall be apportioned, and Tenant hereby
assigns to Landlord any award that may be made in such condemnation or other taking, together with any and all rights of Tenant now or hereafter arising in or to same or any part thereof; provided, however, that nothing contained herein shall be
deemed to give Landlord any interest in or to require Tenant to assign to Landlord any separate award made to Tenant specifically for its relocation expenses, the taking of personal property and fixtures belonging to Tenant or the interruption of or
damage to Tenant’s business. Tenant shall be entitled to moving expenses. 
 13.3 Partial Condemnation. In the event
of a partial condemnation or other taking that does not result in a termination of this Lease as to the entire Premises, the Basic Rent and Additional Rent shall abate in proportion to the portion of the Premises taken by such condemnation or other
taking. 
 13.4 No Termination of Lease. If all or any portion of the Premises is condemned or otherwise taken for public
or quasi-public use for a limited period of time, this Lease shall remain in full force and effect and Tenant shall continue to perform all of the terms, conditions and covenants of this Lease, and Basic Rent and Additional Rent shall abate in
proportion to the portion of the Premises taken during such temporary condemnation or other taking. 
 14. Assignment and
Subletting. 
 14.1 No Assignment or Subletting Permitted. Tenant shall not directly or indirectly, voluntarily or by
operation of law, sell, assign, sublease, encumber, pledge or otherwise transfer or hypothecate all or any part of the Premises or Tenant’s leasehold estate hereunder, without first obtaining Landlord’s prior written consent, which will
not be unreasonably withheld or delayed. Notwithstanding the foregoing, a corporate reorganization within the meaning of Section 368 of the Internal Revenue Code of 1986 shall not be considered an assignment or subletting within the meaning of
this Section 14.1. Tenant agrees that any permitted assignment or subletting hereunder may be conditioned upon payment of consideration to be agreed upon by Landlord and Tenant. If Tenant allows another medical device company to share the
Premises utilizing the same common areas, this shall not be considered a sublet and Landlord’s approval or notification shall not be required. 
 14.2 Procedure for Assignment, Subletting. If Tenant desires at any time to assign, sublease or otherwise transfer the Premises or any portion thereof, it shall send a written notice to Landlord,
which notice shall contain (a) the name of the proposed occupancy or subtenant, (b) the nature of the proposed occupant’s or subtenant’s business to be carried on in the Premises, (c) the portion(s) of the Premises to be
subject to such assignment or sublease and the other terms and provisions of the proposed assignment or sublease, (d) such financial information as Landlord may reasonably request concerning the proposed occupant or subtenant, and (e) a
true copy of a proposed assignment or sublease. 

  
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 14.3 No Release of Tenant. No assignment or sublease by Tenant shall relieve Tenant
of any obligation to be performed by Tenant under this Lease, whether arising before or after the assignment or sublease. Any assignment or sublease that is not in compliance with this Section 14 shall be void and, at the option of Landlord,
shall constitute a default by Tenant under this Lease. 
 15. Utilities and Services 

15.1 Tenant’s Expense. Tenant shall at its own expense, pay to appropriate utility companies for all charges for such
utilities consumed in the Premises as and when such charges become due and payable. If any such utilities are not separately metered, Tenant shall pay to Landlord its allocable share of such utilities as are reasonably determined by Landlord. Tenant
shall arrange, at its own expense, for char service for the Premises. 
 16. Default; Remedies 

16.1 Events of Default. The following shall constitute an event of default under this Lease: 

(a) The failure to pay any amount of Basic Rent or Additional Rent in full within seven (7) days after written notice the same is
due more than once annually. 
 (b) The failure to perform or honor any other covenant or condition made under this Lease
provided Tenant shall have a grace period of ten (10) days from the date of written notice from Landlord within which to cure any such failure governed by this subparagraph (b) but not specifically by the other subparagraphs of this
Section 16.1; provided, however, that with respect to any such default that cannot reasonably be cured within the ten (10) day grace period, Tenant shall not be deemed in default if Tenant commences to cure within ten (10) days from
Landlord’s notice and continues to prosecute diligently the curing thereof to completion within a reasonable time; and provided, further, that if any such failures which would be deemed defaults hereunder upon expiration of such grace period
occur more often that twice in any twelve month period, the foregoing requirements of written notice and a grace period shall be deemed waived with respect to any such subsequent failures for the remainder of the Term. 

(c) If any representation or warranty made by Tenant, or others on behalf of Tenant, under or pursuant to the Lease shall prove to have
been false or misleading in any material respect (including by way of material omissions) as of the date on which such representation or warranty was made. 
 (d) If Tenant makes or consents to an assignment for the benefit of creditors or a common law composition or creditors, or a receivor of Tenant’s assets is appointed, or Tenant files a voluntary
petition in any bankruptcy or insolvency proceeding, or an involuntary petition in bankruptcy or insolvency proceeding is filed against Tenant and not discharged or dismissed within thirty (30) days, or Tenant is adjudicated bankrupt or admits
in writing its inability to pay its debts or that it is insolvent. 
 (e) Unless adequately covered by insurance in the
reasonable opinion of the Landlord, the entry of a final judgment for the payment of money in excess of $200,000.00 against the Tenant and the failure by the Tenant to discharge the same, or cause it to be discharged, or bonded off to the
Landlord’s satisfaction, within thirty (30) days from the date of the order, decree or process under which or pursuant to which such judgment was entered. 
 (f) If Tenant shall dissolve or liquidate, and such dissolution or liquidation is not in connection with a reorganization, merger or consolidation approved in writing by Landlord. 

16.2 Landlord’s Remedies. Upon the occurrence of an Event of Default, which is not cured by Tenant within the grace periods
specified in Section 16.1 hereof, Landlord shall have the following rights and remedies in addition to all other rights or remedies available to Landlord in law or equity: 

(a) Landlord may terminate this Lease by notice to Tenant (and Tenant hereby expressly waives any other or additional notice to quit or
notice of Landlord’s intention to re-enter), whereupon this Lease and the Term shall terminate, Tenant shall quit, vacate and surrender the Premises and all amounts accrued and unpaid Basic rent and Additional Rent shall be due and payable in
full. 
 (b) Upon any termination of this Lease pursuant to Section 16.2(a) or Section 17, Landlord may
(i) proceed to re-enter the Premises and recover possession thereof; (ii) as attorney-in-fact for Tenant, remove therefrom all persons and Tenant’s Property, store such Tenant’s Property in a public warehouse or elsewhere at the
cost, and for the account, of Tenant, sell such Tenant’s Property and apply the proceeds thereof to payment of Tenant’s obligations and liabilities under this Lease, and hold the balance of such proceeds, if any, in trust for Tenant;
(iii) restore the Premises to good order and repair or otherwise prepare the Premises for reletting by making such reasonable alterations, repairs or replacements in the Premises as Landlord, in its sole discretion deems necessary or
appropriate; and (iv) relet the Premises for such rent, for such term (which may be longer or shorter than the Term originally reserved hereunder) and upon such other terms and conditions as are not unreasonable under the circumstances. Tenant
shall be liable for all damages sustained by Landlord in connection with such termination of this Lease, including without limitation the excess of the aggregate amounts of Basic Rent and Additional Rent reserved under this Lease for the Term
originally reserved hereunder over net amounts actually realized in reletting the Premises, reasonable attorneys’ fees, brokerage commissions and the costs and expenses of recovering possession of the Premises and restoring the Premises to
first class condition for reletting. 
 Any such damages may, at Landlord’s election, be recovered in one or more actions
upon termination of the Term, at the time of any initial reletting or from time to time as such damages may become more easily ascertainable by successive relettings. In no event shall Landlord be liable for any failure to relet the Premises or for
any failure to collect any amounts due on account of relettings and in no event shall Tenant have any right to any excess of amounts received by Landlord on account of relettings over amounts which Tenant may be liable hereunder. 

  
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 (c) Landlord may elect not to terminate this Lease but to recover the Basic Rent and
Additional Rent accruing hereunder in one or more actions as the same become due or, in advance, the present value of Basic rent and Additional Rent to become due hereunder, discounted by a factor of eight percent (8%) per annum; or, as for
Tenant, Landlord may from time to time sublet the Premises or any part thereof for such term or terms and at such rent and such other terms as Landlord in its sole discretion may deem advisable, with the right to make alterations and repairs to the
Premises. Upon each such subletting (i) Tenant shall be immediately liable for payment to Landlord of, in addition to Basic Rent and Additional Rent due hereunder, the cost of such subletting and such alterations and repairs incurred by
landlord and the amount, if any, by which the Basic Rent and Additional Rent for the period of such subletting (to the extent such period does not exceed the Term) exceeds the amount to be paid as Basic Rent and Additional Rent for the Premises for
such period, or (ii) at the option of Landlord, rents received from such subletting shall be applied, first, to payment of any indebtedness other than Basic Rent and Additional Rent due hereunder from Tenant to Landlord; second, to the payment
of any costs of such subletting and of such alterations and repairs; third, to payment of Basic Rent and Additional Rent due and unpaid hereunder; and the residue, if any, shall be held by Landlord and applied in payment of future Basic Rent and
Additional Rent as the same become due hereunder. 
 If Tenant has been credited with any rent to be received by such
subletting under clause (i) and such rent shall not be promptly paid to Landlord by the subtenant(s), or if such rentals received from such subletting under clause (ii) during any month are less than those to be paid during that month by
Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. No subletting of the Premises by Landlord, as attorney-in-fact for Tenant, shall be construed as an election on its part to
terminate this Lease unless a notice of such termination is given to Tenant. Notwithstanding any such subletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach; and 

(d) Landlord may have a receiver appointed for Tenant, upon application by Landlord, to take possession of the Premises and to apply any
rental collected from the Premises and to exercise all other rights and remedies granted to Landlord as attorney-in-fact for Tenant pursuant to Section 16.2(b) hereof. 
 (e) Tenant hereby expressly and unconditionally waives, in connection with any suit, action or proceeding brought by Landlord under this Lease, any and every right it may have to (i) injunctive
relief, (ii) a trial by jury, (iii) interpose any counterclaim therein and (iv) have the same consolidated with any other or separate suit, action or proceeding. Nothing herein contained shall prevent or prohibit Tenant from instituting or
maintaining a separate action against Landlord with respect to any asserted claim. 
 17. Insolvency or Bankruptcy. Upon
the appointment of a receiver to take possession of all or substantially all of the assets of Tenant, or an assignment by Tenant for the benefit of creditors, or any action taken or suffered by Tenant under any insolvency, bankruptcy,
reorganization, moratorium or other debtor relief act or statute, whether now existing or hereafter amended or enacted, this Lease shall automatically terminate without notice or other action by Landlord or Tenant; provided further, that Landlord
shall have the right, within thirty (30) days after Landlord has actual knowledge of the events effecting such termination, to revoke such termination and reinstate this Lease retroactively to the date of such termination. Upon, and at any time
after, such termination, Landlord shall have the right to exercise the remedies reserved under Section 16.2(b). In no event shall this Lease or any rights or privileges hereunder be an asset of Tenant under any bankruptcy, insolvency,
reorganization or other debtor relief proceedings. 
 18. Fees and Expenses; Indemnity; Liability Insurance 

18.1 Performance by Landlord. If Tenant shall default in the performance of its obligations under this Lease, Landlord, at any
time thereafter and without notice, may remedy such default for Tenant’s account and at Tenant’s expense, without thereby waiving any other rights or remedies of Landlord with respect to such default. 

18.2 Indemnification by Tenant. 
 (a) Tenant agrees to indemnify Landlord, its employees, agents, contractors, mortgagees and successors in interest against and save Landlord, its employees, agents, contractors, mortgagees and successors
in interest harmless from any and all loss, cost, liability, damage and expense including, without limitation, penalties, fines and reasonable counsel fees, incurred in connection with or arising from any cause whatsoever in, on or about the
Premises, including, without limiting the generality of the foregoing (i) any default by Tenant in the observance or performance of any of the terms, covenants or conditions of this Lease on Tenant’s part to be observed or performed, or
(ii) the use or occupancy or manner of use or occupancy of the Premises by Tenant or any person or entity claiming through or under Tenant, (iii) any acts, omissions or negligence of Tenant or any person or entity claiming through or under
Tenant, or of the contractors, agents, servants, employees, visitors or licensees of Tenant or any such person or entity, in, on or about the Premises or the Building, during, the Term, including without limitation, any acts, omissions or negligence
in the making or performing of any Alterations. 
 (b) Landlord shall indemnify, defend and hold harmless Tenant, its
employees, shareholders, agents and contractors, from and against all loss, liability, damages, claims, liabilities and costs (including, but not limited to attorney” fees) incurred in connection with or arising from (I) the negligence or
willful misconduct of Landlord, its agents, employees or contractors, (ii) Landlord’s operation and management of the Premises; (iii) latent defects in the Premises, (iv) any breach of Landlord’s obligation sunder this
Lease; and (v) the presence of any hazardous materials in the or contamination in the Building or on the Real Property resulting from Landlord’s acts or omissions. This section 18.2 shall survive termination or expiration of this Lease.

 18.3 Liability Insurance. (A) PROPERTY INSURANCE. Tenant shall maintain during their term of this Lease and any
extensions thereof, appropriate insurance (or self insurance) on all equipment and personal property of Tenant Located in Premises. All property Insurance obtained by Landlord and Tenant in accordance with this Article 18.3 of the Lease shall be
written by a financially responsible company or companies. (B) LIABILITY INSURANCE. Both Landlord and Tenant shall maintain during the term of this Lease and any extensions thereof, commercial general liability insurance policies, with a
minimum coverage of 1,000,000 per occurrence for property damage, bodily injuries or deaths of persons occurring in or about the Building and Premises. Said insurance shall be 

  
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written by a financially responsible company or companies. Upon written request, each party shall provide the other party with certificates of insurance, evidencing the liability coverage
required by this Article 18.3 of the Lease. (C) WAIVER OF SUBROGATION. Anything in this Lease to the contrary notwithstanding, Landlord and Tenant each waive any and all rights of recovery, claims, actions or causes of action, against the
other, its agents, officers, or employees, for any loss or damage that may occur to the Premises or Building, regardless of cause or origin, including the negligence of Landlord or Tenant, their agents, officers or employees, if:
(i) any such loss or damage is covered by insurance benefiting the party suffering such loss or damage or (ii) is required to be covered by insurance pursuant to this Lease. (D) INDEMNITY. Unless due to Landlord’s negligence or
willful misconduct, Tenant shall protect, indemnify, defend and hold Landlord harmless from any and all cost, loss, damage, liability or expense arising out of or connected with injury or damage, including death, to persons or property occurring on
the Premises, or arising out of any act or omission of Tenant, its agents, officers, employees or invitees. Unless due to Tenant’s negligence or willful misconduct, Landlord shall protect, indemnify, defend and hold Tenant harmless from any and
all cost, loss, damage, liability or expense arising out of, or connected with injury or damage, including death, to persons or property occurring in or around the Building, common areas or parking lot, or arising out of any act or omission of
Landlord, its agents, officers, employees or invitees. 
 18.4 Delivery of Policies. Tenant shall deliver policies of all
required insurance, or certificates thereof, to Landlord on or before the Rent Commencement Date, and thereafter at least thirty (30) days before the expiration dates of expiring policies. In the event Tenant shall fail to procure such
insurance, or to deliver such policies or certificates, Landlord may, at its option, procure same for the account of Tenant, and the cost thereof shall be paid to Landlord as Additional Rent within five (5) days after delivery to Tenant of
bills therefor. Landlord shall give Tenant opportunity to cure. Tenant’s compliance with the provisions of this Section 18.4 shall in no way limit Tenant’s liability under any of the other provisions of this Section. 

18.5 Landlord Not Liable. Landlord shall not be responsible for or liable to Tenant for any loss or damage that may be occasioned
by or through the acts or omissions of persons occupying adjoining premises or any part of the premises adjacent to or connection with the Premises or any part of the Building or of third parties either legally or illegally within the Premises or
the Building or for any loss or damage resulting to Tenant or its property from burst, stopped or leaking water, gas, sewer or steam pipes or for any damage or loss or property within the Premises from any causes whatsoever, including theft or
vandalism. 
 18.6 Payment by Tenant. Except as specifically provided to the contrary in this Lease, Tenant shall pay to
Landlord, within thirty (30) days after notice by Landlord to tenant of the amount thereof: (a) sums equal to all expenditures made and monetary obligations incurred by Landlord including, without limitation, expenditures made and
obligations incurred for reasonable counsel fees, in connection with the remedying by Landlord for Tenant’s account pursuant to the provisions of Section 18.1 hereof; (b) sums equal to all losses, costs, liabilities, damages and
expenses referred to in Section 18.2 hereof; and (c) sums equal to all expenditures made and monetary obligations incurred by Landlord, including, without limitation, expenditures made and obligations incurred for reasonable counsel fees,
in collecting or attempting to collect the Basic Rent, Additional Rent or any other sum of money accruing under this Lease or in enforcing or attempting to enforce any rights of Landlord under this Lease or pursuant to law. Any sum of money (other
than Basic Rent) accruing from Tenant to Landlord pursuant to any provision of this Lease, whether prior to or after the Rent Commencement Date, may, at Landlord’s option, be deemed Additional Rent. Tenant’s obligations under this 18.6
shall survive the expiration or earlier termination of the Term. 
 19. Access to Premises 

19.1 Landlord’s Right to Enter. Landlord reserves and shall have the right with prior notice, excepting emergencies, to enter
the Premises at all reasonable times to inspect same, to show the Premises to prospective purchasers, mortgagees or tenants, to post notices of nonresponsibility, and to alter, improve or repair the Premises, adjacent premises and any other portion
of the Building or any systems serving any of the same, without abatement of Basic Rent or Additional Rent, and may for that purpose erect, use and maintain scaffolding, pipes, conduits and other necessary structures in and through the Premises
where reasonably required by the character of the work to be performed; provided that the entrance to the Premises shall not be blocked thereby. Landlord shall use best efforts to minimize disruption to Tenant, and where reasonable, shall perform
work “after hours.” Landlord and its agents shall also have unrestricted access to the Premises at any time in the event of an emergency, without abatement of Basic Rent or Additional Rent. Tenant hereby waives any claim for damages for
any injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises or any other loss occasioned thereby. For each of the aforesaid purposes, Landlord shall at all times have and
retain a key with which to unlock all of the doors in, upon and about the Premises, excluding Tenant’s vaults and safes, or special security areas (designated as such by Tenant in advance), and Landlord shall have the right to use any and all
means that Landlord may deem necessary or proper to open said doors in an emergency, in order to obtain entry to any portion of the Premises, and any entry to the Premises or portions thereof obtained by Landlord by any of said means, or otherwise,
shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction, actual or constructive, of Tenant from the Premises or any portion thereof. Landlord shall also have
the right at any time, without same constituting an actual or constructive eviction and without incurring any liability to Tenant therefor, to change the arrangement and/or location of entrances or passageways, doors and doorways, and corridors,
elevators, stairs, toilets and other public parts of the Building. Landlord will not show prospective tenants the Premises earlier than six (6) months prior to the lease termination date. Notwithstanding the foregoing, any work done by Landlord
shall not interfere with Tenant’s business and shall not prevent access to the Premises by Tenant or Tenant’s patients. 
 20. Waiver; Release 
 20.1 No Waiver. No failure by Landlord to
insist upon the strict performance of any obligation of Tenant under this Lease or to exercise any right, power or remedy consequent upon a breach thereof, no acceptance of full or partial Basic rent or Additional Rent during the continuance of any
such breach, and no acceptance of the keys to or possession of the Premises prior to the termination of the Term by any employee of Landlord shall constitute a waiver of 

  
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any such breach or of such term, covenant or condition or operate as a surrender of this Lease. No payment by Tenant or receipt by Landlord or a lesser amount than the aggregate of all Basic Rent
and Additional Rent then due under this Lease shall be deemed to be other than on account of the first items of such Basic Rent and Additional Rent then accruing or becoming due, unless Landlord elects otherwise; and no endorsement or statement on
any check and no letter accompanying any check or other payment of Basic Rent or Additional Rent in any such lesser amount and no acceptance of any such check or other such payment by Landlord shall constitute an accord and satisfaction, and
Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such Basic Rent or Additional Rent or to pursue any other legal remedy. 

20.2 Modifications in Writing. Neither this Lease nor any term or provision hereof may be changed, waived, discharged or
terminated orally, and no breach thereof shall be waived, altered or modified, except by a written instrument signed by the party against which the enforcement of the change, waiver, discharge or termination is sought. No waiver of any breach shall
affect or alter this Lease, but each and every term, covenant and condition of this Lease shall continue in full force and effect with respect to any other then existing or subsequent breach thereof. 

21. Tenant’s Certificates Tenant, at any time and from time to time not to exceed twice annually upon not less than fifteen
(15) days’ prior written notice from Landlord, will execute, acknowledge and deliver to Landlord and, at Landlord’s request, to any prospective purchaser, or mortgagee of any part of the Building and Real Property, a certificate of
Tenant stating: (a) that Tenant has accepted the Premises (or, if Tenant has not done so, that Tenant has not accepted the Premises and specifying the reasons therefor), (b) the Commencement and Term Expiration Dates of this Lease,
(c) that this Lease is unmodified and in full force and effect (or, if there have been modifications, that same is in full force and effect as modified and stating the modifications), (d) whether or not there are then existing any defenses
against the enforcement of any of the obligations of Tenant under this Lease (and, if so, specifying same), (f) the dates, if any, to which the Basic Rent and Additional Rent and other charges under this Lease have been paid. It is intended
that any such certificate of Tenant delivered pursuant to this Section 21 may be relied upon by Landlord and any prospective purchaser, ground or underlying lessor or mortgagee of any part of the Real Property. 

22. Rules and Regulations Tenant, its agents, employees, invitees, licensees, customers, clients and guests shall at all times
faithfully observe and comply with the rules and regulations attached hereto as Exhibit C, and such other rules and regulations as may be promulgated from time to time by Landlord, and all modifications thereof and additions thereto, from
time to time, put into effect by Landlord. Landlord shall not be responsible for the nonperformance by any other tenant or occupant of the Building of any said rules and regulations. In the event of an express and direct conflict between the terms,
covenants, agreements and conditions of this Lease and the terms, covenants, agreements and conditions of such rules and regulations, as modified and amended from time to time by Landlord, this Lease shall control. All rules shall be applied
uniformly and without discrimination. 
 23. Tax on Tenant’s Personal Property Prior to delinquency, Tenant shall
pay all taxes levied or assessed upon Tenant’s equipment, furniture, fixtures and other personal property located in or about the Premises. If the assessed value of Landlord’s property is increased by the inclusion therein of a value
placed upon Tenant’s equipment, furniture, fixtures or other personal property, Tenant shall pay to Landlord, upon demand, the taxes so levied against Landlord, or the portion thereof resulting from said increase in assessment. 

24. Authority The persons executing this Lease on behalf of Tenant hereby covenant and warrant that Tenant is a duly authorized
and existing entity, that Tenant has and is qualified to do business in the Commonwealth of Virginia, that Tenant has full right and authority to enter into this Lease, and each person signing on behalf of Tenant is authorized to do so. Upon
Landlord’s request, Tenant shall provide Landlord with evidence reasonably satisfactory to Landlord confirming the foregoing covenants and warranties. Landlord warrants that it has fee simple ownership of the Building and the Premises, subject
to encumbrances of record. Landlord covenants that it has full right, power and authority to enter into this Lease. 
 25.
Signage Tenant shall be allowed signage rights in accordance with applicable local zoning ordinances and the Covenants, provided, however, that no sign, advertising or notice shall be inscribed, affixed or displayed on any part of the outside
or inside or the Building, unless such sign specifications and location are approved in writing in advance by Landlord not to be unreasonably withheld or delayed. If any sign, advertisement or notice is improperly exhibited Landlord shall have the
right to remove the same, and Tenant shall be liable for any and all expenses incurred by Landlord in such removal. Landlord shall have the right to prohibit any advertising by Tenant, which, in Landlord’s opinion, tends to impair the
reputation of the Building or its desirability as a high quality retail, commercial or office building. Tenant shall be allowed to install signage on the glass entry door for the Premises and a directional sign at the entrance to the building
parking lot indicating the location of Tenant’s Premises. Exact location and design of signage shall be subject to all laws and ordinances of the Town of Leesburg and prior approval of Landlord which shall not be unreasonably withheld or
delayed. 
 26. Parking Tenant shall have the right to use the parking facilities of the Building. Tenants use of such
facilities shall be in common with other tenants or occupants of the Building and their respective licensees and permitees and Tenant shall not be entitled to assigned parking spaces. In any event, Tenant’s use of the parking facilities shall
be in accordance with the rules and regulations of Landlord or any perator of such facilities in effect from time to time. The parking facilities shall be lighted during evening hours. Tenant shall be allowed the use of three (3) parking spaces
per 1,000 SF leased. Landlord has the right to restrict the use of the parking area to this number. Tenants parking ratio shall remain consistent in the event of expansion within the park. 

  
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 27. Miscellaneous 

27.1 Notices. Except as otherwise expressly provided in this Lease, any bills, statements, notices, demands, requests or other
communications given or required to be given under this Lease shall be effective only if rendered or given in writing, sent by mail or delivered personally as follows: 
  

			
	to Tenant:	  	K2 Medical LLC
	    Contact:	  	Eric Major
	    Address:	  	751 Miller Drive SE
		  	Suite            
		  	Leesburg, VA 20175
	    Telephone Number:	  	
	    Fax Number:	  	
		
	    to Landlord:	  	Riverair, LC
		  	c/o Ward Corporation
	    Attention:	  	Richard E. Ward
		  	        1300 Piccard Drive
		  	Rockville, MD 20850
	    Phone #:	  	301/948-0333
	    Fax #:	  	301/926-6881

 or to such other address as either Landlord or Tenant may designate as its new address for such purpose by notice to the
other in accordance with the provisions of this Section. Any such bill, statement notice, demand, request or other communication shall be deemed to have been rendered or given two (2) days after the date when it shall have been mailed as
provided in this Section if sent by registered or certified mail, or upon the date personal delivery is made. If Tenant is notified of the identity and address of Landlord’s mortgagee or ground or underlying lessor, Tenant shall give to such
mortgagee or ground or underlying lessor notice of any default by Landlord under the terms of this Lease in writing sent by registered or certified mail, and such mortgagee or ground or underlying lessor shall be given a reasonable opportunity to
cure such default prior to Tenant’s exercising any remedy available to it. 
 27.2 Interpretation. The words
“Landlord” and “Tenant” as used herein shall include the plural as well as the singular. The words used in the neuter gender include the masculine and the feminine. The captions preceding the articles of this Lease have been
inserted solely as a matter of convenience and such captions in no way define or limit the scope or intent of any provision of this Lease. 
 27.3 Successors and Assigns. All rights, remedies and liabilities herein given to or imposed upon either of the parties hereto, shall extend to their respective heirs, executors, administrators,
successors, and assigns. This provision shall not be deemed to grant Tenant any right to assign this Lease or to sublet the premises. 
 27.4 Severability. If any provision of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the
application of such provisions to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Lease shall be valid and be enforced to the full extent permitted by
law. 
 27.5 Applicable Law. This Lease shall be construed and enforced in accordance with the laws of the Commonwealth
of Virginia. 
 27.6 No Option to Lease. Submission of this instrument for examination or signature by Tenant does not
constitute a reservation of or an option for lease, and it is not effective as a lease or otherwise until execution and delivery by both Landlord and Tenant. 
 27.7 Entire Agreement. This instrument, including the Exhibits hereto, which are made a part of this Lease, contains the entire agreement between the parties and all prior negotiations and
agreements are merged herein. Neither Landlord nor Landlord’s agents have made any representations or warranties with respect to the Premises, the Building, the Real Property or this Lease except as expressly set forth herein, and no rights,
easements or licenses are or shall be acquired by Tenant by implication or otherwise unless expressly set forth herein. 
 27.8
Inspection by Landlord. The review, approval, inspection or examination by Landlord of any item to be reviewed, approved, inspected or examined by Landlord under the terms of this Lease or the Exhibits attached hereto shall not constitute the
assumption of any responsibility by Landlord for either the accuracy or sufficiency of any such item or the quality or suitability of such item for its intended use. Any such review, approval, inspection or examination by Landlord is for the sole
purpose of protecting Landlord’s interests in the Building and under this Lease, and no third parties, including, without limitation, Tenant or any person or entity claiming through or under Tenant, or the contractors, agents, servants,
employees, visitors or licensees of Tenant or any such person or entity, shall have any rights hereunder. 
 27.9 Legal Fees
Paid by Prevailing Party. In the event that either Landlord or Tenant fails to perform any of its obligations under this Lease or in the event a dispute arises concerning the meaning or interpretation of any provision of this Lease, the
defaulting party or the party not prevailing in such dispute, as the case may be, shall pay any and all costs and expenses incurred by the other party in enforcing or establishing its rights hereunder, including, without limitation, court costs and
reasonable counsel fees. 

  
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 27.10 Surrender of Premises. Upon the expiration or sooner termination of the Term,
Tenant will quietly and peacefully surrender to Landlord the Premises in the condition in which they are required to be kept as provided hereunder, ordinary wear and tear excepted. 

27.11 Quiet Enjoyment. Upon Tenant paying the Basic Rent and Additional Rent and performing all of Tenant’s obligations under
this Lease, Tenant may peacefully and quietly enjoy the Premises during the Term as against all persons or entities lawfully claiming by or through Landlord; subject, however, to the provisions of this Lease and to any mortgages, ground or
underlying lease referred to herein. 
 27.12 No Reduction in Rent. Tenant covenants and agrees that no diminution of
light, air or view by any structure that may hereafter be erected (whether or not by Landlord) shall entitle Tenant to any reduction of Basic Rent or Additional Rent under this Lease, result in any liability of Landlord to Tenant, or in any other
way affect this Lease or Tenant’s obligations hereunder. 
 27.13 Holding Over by Tenant. Any holding over after the
Term Expiration Date or the termination of the Term if sooner with the consent of Landlord shall be construed to be a tenancy from month to month at a rental equal to one and one quarter (1.25) times the Basic Rent herein specified unless
Landlord shall specify a different rent in its sole discretion, together with an amount estimated by Landlord for the monthly Additional Rent payable under this Lease, and shall otherwise be on the terms and conditions herein specified so far as
applicable. Any holding over without Landlord’s consent shall constitute a default by Tenant and entitle Landlord to reenter the Premises as provided in Section 16 hereof. 

27.14 Broker; Indemnification Therefore. Landlord warrants that they have engaged Vaaler Real Estate Company,
Inc., (the “Landlord’s Broker”) and Tenant warrants that they have engaged Spaulding & Slye (Bob Shue, the “Tenant’s Broker”), respectively, as their exclusive brokers in connection with negotiating and
entering into the Lease and Landlord hereby agrees to pay the Broker(s) a commission under the terms of a separate agreement. Tenant and Landlord shall indemnify each other and hold each other harmless respectively from and against any and all
claims, demands, losses, liabilities, actions, judgments, costs and expenses (including reasonable attorneys’ fees) suffered or incurred by the other and arising out of any claims for commissions or other compensation alleged to be owing on
account of Tenant and Landlord, respectively, dealing with any other broker, agent or finder. The commission paid to the brokers shall be 2.5% of the gross lease rent for the first five years of the lease to Spaulding & Slye Colliers and
2.5% of the gross lease rent for the first five years of the lease to Vaaler Real Estate Company, Inc. In the event the Tenant is not in Default and elects the 3 year Renewal Option, at the commencement of the sixth (6th) lease year, Landlord shall pay a commission to the brokers
equal to 3% of the gross rent for years 6—8 of the lease to Spaulding & Slye Colliers and 2% of the gross rent for years 6—10 of the lease to Vaaler Real Estate Company, Inc. 

27.15 No Recordation of Lease by Tenant. Tenant will not record this Lease or any memorandum or short form hereof, but at the
request of Landlord, Tenant shall execute, acknowledge and deliver to Landlord in proper form for recordation a memorandum of this Lease, setting forth the terms and provisions hereof in summary form. 

27.16 No Merger of Estates. The fee title of Landlord and the leasehold estate of Tenant shall at all times be separate and apart,
and shall in no event be merged, notwithstanding the fact that this Lease or the leasehold estate created hereby, or any interest in either thereof, may be held directly or indirectly by or for the account of any person who shall own the fee estate
in the Premises or any portion thereof; and no such merger of estates shall occur by operation of law, or otherwise, unless and until all persons at the time having any interest in the fee estate and all persons having any interest in the Lease or
the leasehold estate, including any mortgagee or leasehold mortgagee, shall join in the execution of a written instrument affecting such merger of estates. 
 27.17 Security Deposit. Simultaneously with the execution of this Lease, Tenant shall deposit with Landlord cash or the cash equivalent equal to One Month’s Rent, as a security deposit for the
performance by Tenant of the provisions of this Lease. The Security Deposit shall be one (1) month Basic Rent. Such deposit shall be considered as security for the payment and performance by Tenant of all Tenant’s obligations, covenants,
conditions and agreements under this Lease. In the event of any default by Tenant hereunder, landlord shall have the right, but shall not be obligated to apply all or any portion of the deposit to cure such default, in which event Tenant shall be
obligated to promptly deposit with Landlord the amount necessary to restore the deposit to its original amount. If Tenant is not in default at the expiration of the Term, Landlord shall return the security deposit to Tenant plus simple interest
accrued at the then current passbook rate. 
 27.18 Right to Expand. Tenant shall have the First Right of Offer to lease
any adjacent space within the building. Options and times of space availability will be communicated when opportunity to expand is apparent. 

  
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 27.19 Additional Documents. This Lease includes and incorporates the Exhibits listed
in the Table of Contents and the following additional documents, all of which are attached hereto and made a part hereof (check if applicable): 

(X)   Rules & Regulations 

(   )   First Addendum to Lease 
 (   )   Guarantee of Lease 
 (   )   Rent
Schedule 
 (   )   Floor Plan 
 (   )   Other:                     

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

 

									
	LANDLORD:     RIVERAIR, LC	 		 	TENANT: K2 MEDICAL, LLC.
					
	By:	 	/s/ Richard E, Ward	 		 	By:	 	/s/ Eric Major
		 	Richard E. Ward, Managing Member	 		 	 Eric Major - President

		 		 		 	Print Name and Title
					
	Date:	 	5/12/04	 		 	Date:	 	5/12/04
			
	WITNESS:	 		 	WITNESS:
					
	By:	 	 	 		 	By:	 	 

  
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 RULES AND REGULATIONS 

Reference is made to a certain Lease
dated                     to which these Rules and Regulations are attached. Definition of terms is set forth in the Lease. 

1. The sidewalks, entrances, passages, courts, elevators, vestibules, stairways, corridors, halls or other parts of the Building not
occupied by any tenant shall not be obstructed or encumbered by any tenant or used for any purpose other than ingress and egress to and from the Lease Premises. Landlord shall have the right to control and operate the public portions of the
Building, and the facilities furnished for the common use of the tenants, in such manner as Landlord deems best for the benefit of the tenants generally. No tenant shall permit the visit to the Leased Premises of persons in such numbers or under
such conditions as to interfere with the use and enjoyment by other tenants of the entrances, passages, courts, elevators, vestibules, stairways, corridors, halls and other public portions or facilities of the Building. 

2. No awnings or other projections shall be attached to the outside walls of the Building without the prior written consent of the
Landlord. No drapes, blinds, shades or screens shall be attached to, hung in, or used in connection with any window or door of the Leased Premises, without the prior written consent of the Landlord. Such awnings, projections, curtains, blinds,
shades, screens or other fixtures must be of a quality, type, design and color, and attached in the manner approved by Landlord. 
 3. No sign, advertisement, notice or other lettering shall be exhibited, inscribed, painted or affixed by any tenant on any part of the outside or inside of the Leased Premises or the Building without the
prior written consent of the Landlord. In the event of the violation of the foregoing by any tenant, Landlord may remove same without incurring any liability, and may charge the expense incurred by such removal to the tenant or tenants violating
this rule. Interior signs on doors and directory tablets shall be inscribed, painted or affixed for each tenant by the Landlord at the expense of such tenant, and shall be of a size, color and style acceptable to the Landlord. 

4. No showcases or other articles shall be put in front of or affixed to any part of the exterior of the Building, not placed in the
halls, corridors or vestibules without the prior written consent of the Landlord. 
 5. The water, wash closets and other
plumbing fixtures shall not be used for any purposes other than those for which they were constructed, and no sweepings, rubbish, rags, or other substances shall be thrown therein. All damages resulting from any misuse of the fixtures shall be borne
by the tenant who, or whose servants, employees, agents, visitors or licensees, shall have caused the same. 
 6. Except for the
improvements required for a medical device company, there shall be no marking, painting, drilling into or in any way defacing any part of the Leased Premises or the Building. No boring, cutting or stringing of wires, notwithstanding premises
telecommunications, shall be permitted. Tenant shall not construct, maintain, use or operate within the Leased Premises or elsewhere within or on the outside of the Building, any electric device, wiring or apparatus in connection with a loud speaker
system or other sound system, 
 7. No, vehicles or animals, birds or pets of any kind shall be brought into or kept in or about
the Leased Premises, and no cooking shall be done or permitted by any tenant on said Leased Premises. No tenant shall cause or permit any unusual or objectionable odors to be produced upon or permeate from the Leased Premises, except for those odors
normally found in a dental office. 
 8. No space in the Building shall be used for the sale of merchandise, goods or property
of any kind at auction. 

  
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 9. No tenant shall make, or permit to be made, any unseemly or disturbing noises or disturb
or interfere with occupants of this or neighboring buildings or premises of those having business with them, whether by the use of any musical instrument, radio, talking machine, unmusical noise, whistling, singing, or in any other way. No tenant
shall throw anything out of the doors or windows or down the corridors or stairs. 
 10. Except for those substances normally
found in a medical device company, No inflammable, combustible or explosive fluid, chemical or substance inconsistent with flex/office use shall be brought or kept upon the Lease Premises. 

11. No additional locks or bolts of any kind shall be placed upon any of the doors, or windows by any tenant, nor shall any changes be
made in existing locks or the mechanisms thereof. The doors leading to the corridors or main halls shall be kept closed except as they may be used for ingress or egress. Each tenant shall, upon the termination of his tenancy, restore to Landlord all
keys of stores, offices, storage and toilet rooms either furnished to, or otherwise procured by such tenant, and in the event of the loss of any keys, so furnished, such tenant shall pay to the Landlord the cost thereof. 

12. All removals, or the carrying in or out of any safes, freight, furniture or bulky matter or any description must take place only at
the loading dock at the Premises. There shall be no loading or unloading at the main entrance of the Building. The Landlord reserves the right to inspect all freight to be brought into the Building and to exclude from the Building all freight which
violates any of these Rules and Regulations are a part. 
 13. Any person employed by any tenant to do janitor work within the
Leased Premises must obtain Landlord’s consent and such person shall, while in the Building and outside of said Leased Premises, comply with all instructions issued by the Landlord, its agents or employees. No tenant shall engage or pay any
employees on the Leased Premises, except those actually working for such tenant on said Leased Premises. 
 14. Landlord shall
have the right to prohibit any advertising by any tenant which, in Landlord’s opinion, tends to impair the reputation of the Building or its desirability as a building for offices, and upon written notice from Landlord, tenant shall refrain
from or discontinue such advertising. 
 15. The Landlord reserves the right to exclude from the Building at all times any
person who is not known or does not properly identify himself to any building management or watchman on duty. Each tenant shall be responsible for all persons from whom he authorizes entry into or exit out of the Building, and shall be liable to the
Landlord for all acts of such persons. 
 16. The Leased Premises shall not be used for lodging or sleeping or for any immoral
or illegal purpose. 
 17. Each tenant, before closing and leaving the Leased Premises at any time, shall see that all windows
are closed and all lights turned off. 
 18. Canvassing, soliciting and peddling in the Building is prohibited and each tenant
shall cooperate to prevent the same. 
 19. There shall not be used in any space, or in the public halls of the Building, either
by any tenant or by jobbers or others, in the delivery or receipt of merchandise, any hand trucks, except those equipped with rubber tires and sideguards. 
 20. Access plates to underfloor conduits shall be left exposed. Where carpet is installed, carpet shall be cut around access plates. 

21. Mats, trash or other objects shall not be placed in the public corridors. 

22. Drapes installed by the Landlord for the use of the tenant or drapes installed by the tenant, which are visible from the exterior of
the Building must be cleaned by the tenant at least once a year, without notice, at said tenant’s own expense. 

  
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 23. The tenant shall refer to the Building only by the name from time to time designated by
the Landlord, and shall use such name only for the business address of the Leased Premises and not for any promotional or other purposes. 
 24. Violation of these rules and regulations, or any amendments thereto, shall be sufficient cause for termination of this Lease at the option of the Landlord provided Tenant has been provided written
notice and allowed to cure as per the Lease. 
 25. Landlord may, upon request by any tenant, waive the compliance by such
tenant of any of the foregoing rules and regulations, provided that (i) no waiver shall be effective unless signed by Landlord or Landlord’s authorized agent, (ii) any such waiver shall not relieve such tenant from the obligation to
comply with such rule or regulation in the future unless expressly consented to by Landlord, (iii) no waiver granted to any tenant shall relieve any other tenant from the obligation of complying with the foregoing rules and regulations unless
such other tenant has received a similar waiver in writing from Landlord, and (iv) any such waiver by Landlord shall not relieve tenant from any obligation or liability of tenant to Landlord pursuant to the Lease for any loss or damage
occasioned as a result of tenant’s failure to comply with any such rule or regulation. 
 26. Prior to commencing and
construction, improvements or work in the Premises, Tenant shall notify Landlord and obtain Landlord’s approval, which shall not be unreasonably delayed or withheld. 
 27. Notwithstanding the initial move-in period, Tenant shall only move furniture, fixtures and equipment into and out of the Premises during non-business hours unless Landlord gives approval otherwise.
Tenant shall only use the loading dock for load or unload of furniture, fixtures, and equipment if Tenant elects to move-in during normal business hours. 

  
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