Document:

Exhibit

Exhibit 10.17

COLE OFFICE & INDUSTRIAL REIT (CCIT III), INC.
2018 EQUITY INCENTIVE PLAN
1.GENERAL
1.1    Purpose.  The purpose of this Plan is to help the Company: (1) align the interests of Participants (as hereinafter defined) with the Company's stockholders; and (2) promote ownership of the Company's equity.
1.2    Definitions of Certain Terms.  For purposes of this Plan, the following terms have the meanings set forth below:
(a)    Action Effective Date shall have the meaning as provided in §4.1.
(b)    Award means an award made pursuant to the Plan, which shall be either a Restricted Stock Award or a Deferred Stock Award.
(c)    Award Agreement means the written document by which each Award is evidenced, and which is executed by a Participant as a condition to receiving an Award or the benefits under an Award, and which sets forth the terms and provisions applicable to Awards granted under the Plan to such Participant.  Any reference herein to an agreement in writing will be deemed to include an electronic writing to the extent permitted by applicable law.  
(d)    Board means the Board of Directors of the Company.
(e)    Change of Control means either of the following:  (i) any transaction or series of transactions pursuant to which the Company sells, transfers, leases, exchanges, or disposes of substantially all (i.e., at least eighty-five percent (85%)) of its assets for cash or property, or for a combination of cash and property, or for other consideration; provided, however, that with respect to any such sales, transfers, leases, exchanges, or dispositions of assets pursuant to a plan of liquidation by the Company, a Change of Control shall not have been deemed to occur until the Board has completed all required actions pursuant to such plan of liquidation and the winding up of the Company; or (ii) any transaction pursuant to which persons who are not current stockholders of the Company acquire by merger, consolidation, reorganization, division, or other business combination or transaction, or by a purchase of an interest in the Company, an interest in the Company so that after such transaction, the stockholders of the Company immediately prior to such transaction no longer have a controlling (i.e., 50% or more) voting interest in the Company.
(f)    Code means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto, and the applicable rulings and regulations thereunder.
(g)    Common Stock means the Class A and Class T common stock of the Company, par value $0.01 per share, and any other securities or property issued in exchange therefor or in lieu thereof pursuant to §1.7(b).
(h)    Company means Cole Office & Industrial REIT (CCIT III), Inc. and any Subsidiary, and any successor entity thereto.
(i)    Director means a member of the Board.
(j)    Deferred Stock Award means an Award of Deferred Stock Units, where each Deferred Stock Unit shall entitle the Participant to receive one Share at such future time and upon such terms as may be specified by the Board in the Award Agreement evidencing such Award, subject to all terms and provisions of this Plan and the Award Agreement evidencing such Award.
(k)    Deferred Stock Unit means a unit awarded pursuant to a Deferred Stock Award.
(l)    Effective Date means the date on which the Board has approved this Plan, which is August 9, 2018.
(m)    Employee means any common law employee of the Company or of any Subsidiary.
(n)    Exchange Act means the Securities Exchange Act of 1934, as the same may from time to time be amended.
(o)    Fair Market Value means, with respect to a Share, (i) the closing sales price per share on the national securities exchange on which the Shares are principally traded, for the last preceding date on which there was a sale of such Shares on such exchange; (ii) if the Shares are then traded in an over-the-counter market, the average of the closing bid and asked prices for the Shares in such over-the-counter market for the last preceding date on which there 

was a sale of such Shares in such market; or (iii) if the Shares are not then listed on a national securities exchange or traded in an over-the-counter market, the most recent value (which, unless otherwise determined by the Board, shall be the most recent net asset value) as the Board, in its sole discretion, shall determine, unless determined as otherwise specified herein or in any applicable Award Agreement.  For purposes of the grant of any Award, the applicable date will be the trading day on which the Award is granted or, if the date the Award is granted is not a trading day, the trading day immediately prior to the date the Award is granted.  
(p)    Insider means an individual who is, on the relevant date, an Officer, Director or ten percent (10%) beneficial owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, all as defined under Section 16 of the Exchange Act. 
(q)    Non-Assumed DSU shall have the meaning as provided in §4.1.
(r)    Non-Employee Director means a member of the Board who is not an Employee or Officer of the Company or who is not determined by the Board to be an independent member of the Board.
(s)    Officer means any officer of the Company, or of any Subsidiary.
(t)    Outside Director means a Director who is not an Employee or Officer of the Company and who qualifies as a “non-employee director” under Rule 16b-3(b)(3) under the Exchange Act, as amended from time to time.
(u)    Participant means a Non-Employee Director of the Company who receives an Award under the Plan.  
(v)    Restricted Stock Award means an Award of Shares granted to a Participant under this Plan whereby the Participant has immediate rights of ownership in the Shares underlying the Award, but such Shares are subject to restrictions in accordance with the terms and provisions of this Plan and the Award Agreement pertaining to the Award and may be subject to forfeiture by the Participant until the earlier of (i) the time such restrictions lapse or are satisfied, or (ii) the time such Shares are forfeited, pursuant to the terms and provisions of the Award Agreement pertaining to the Award.
(w)    Shares means shares of Common Stock.
(x)    Subsidiary means any corporation, partnership, limited liability company or other legal entity (other than the entity for whom the Participant performs services) in an unbroken chain of entities beginning with the entity for whom a Participant performs services if, at the time of the granting of the Award, each of the entities other than the last entity in the unbroken chain owns stock or other equity interests possessing fifty percent (50%) or more of the total combined voting power of all classes of the then-outstanding stock or other equity interests in one of the other entities in such chain. 
1.3    Administration.  
(a)    Authority of the Board.  The Board will administer the Plan, subject to §1.6 below.  The Board, acting in its complete and absolute discretion, shall exercise all such powers and take all such action as it deems necessary or desirable to carry out the purposes of this Plan.  In particular, the Board will have the authority in its sole discretion to:
(1)    exercise all of the powers granted to it under the Plan;
(2)    construe, interpret and implement the Plan and all Award Agreements;
(3)    prescribe, amend and rescind rules and regulations relating to the Plan, including rules governing the Board's own operations;
(4)    make all determinations necessary or advisable in administering the Plan;
(5)    amend the Plan to reflect changes in applicable law, or for other purposes; 
(6)    amend the terms and conditions of any outstanding Awards as allowed under the Plan and such Awards;
(7)    establish, amend or waive rules and regulations for the Plan’s administration;
(8)    grant Awards and determine who will receive Awards, when such Awards will be granted and the terms of such Awards; and

(9)    take such other action in the administration and operation of the Plan as the Board may deem equitable under the circumstances.
The Board’s actions shall be final, binding and conclusive on the Company and any Subsidiary thereof, and on each affected Participant, and on each other Person directly or indirectly affected by such actions.  
(b)    Majority Rule; Unanimous Written Consent.  Actions of the Board may be taken by the vote of a majority of its members in attendance at a meeting at which a quorum is present (which may be held telephonically) or by a memorandum or other written instrument signed by all members of the Board.  
1.4    Persons Eligible for Awards.  Awards under the Plan may only be made to Non-Employee Directors of the Company.
1.5    Awards to Non-Employee Directors.  Non-Employee Directors shall be eligible to receive Awards under the Plan as determined by the Board from time to time.  Any such Award shall be subject to the terms and conditions as determined by the Board and set forth in the applicable Award Agreement.  
1.6    Delegation of Authority.  The Board may delegate its authority under the Plan, in whole or in part, to a committee appointed by the Board.  Reference to the Board in this Plan shall specifically include reference to the committee where the Board has delegated its authority to the committee, and any action by the committee pursuant to a delegation of authority by the Board shall be deemed an action by the Board under the Plan.  Notwithstanding the above, the Board may assume the powers and responsibilities granted to the committee at any time, in whole or in part.  With respect to committee appointments and composition, only a committee comprised solely of Outside Directors may grant Awards to Insiders that will be exempt from Section 16(b) of the Exchange Act.
1.7    Shares of Common Stock Available for Awards.  
(a)    Common Stock Subject to the Plan. Subject to the other provisions of this §1.7, the total number of Shares that may be granted under the Plan will be 400,000.  Shares subject to an Award that is forfeited, expires or is settled for cash (in whole or in part), to the extent of such forfeiture, expiration or cash settlement will be available for future grants of Awards under the Plan and will be added back in the same number of Shares as were deducted in respect of the grant of such Award.  
(b)    Adjustments. The Board may (i) adjust the number of Shares authorized pursuant to §1.7(a), and (ii) adjust the terms of any outstanding Awards (including, without limitation, the number of Shares covered by each outstanding Award and the type of property or securities to which the Award relates), in each case, in such manner as it deems appropriate (including, without limitation, by payment of cash) to prevent the enlargement or dilution of rights, as a result of any increase or decrease in the number of issued Shares (or issuance of shares of stock other than Shares) resulting from a recapitalization, stock split, reverse stock split, stock dividend, spinoff, split up, combination, reclassification or exchange of Shares, merger, consolidation, rights offering, separation, reorganization or liquidation or any other change in the corporate structure or Shares, including any extraordinary dividend or extraordinary distribution; provided, however, the Board shall be required to make such adjustments if such change in the capitalization of the Company constitutes an “equity restructuring” as defined in FASB ASC §718-10-20.  
		
	2.
	AWARDS UNDER THE PLAN

2.1    Agreements Evidencing Awards.  Each Award granted under the Plan will be evidenced by an Award Agreement that will contain such provisions and conditions as the Board deems appropriate.  By accepting an Award pursuant to the Plan, a Participant thereby agrees that the Award will be subject to all of the terms and provisions of the Plan and the applicable Award Agreement.  
2.2    Restricted Stock Awards.  
(a)    Grants.  The Company may retain any certificates representing Shares subject to a Restricted Stock Award in the Company’s possession until such time as all conditions and/or restrictions applicable to such Shares have been satisfied.  The Board may require a cash payment from the Participant in exchange for the grant of a Restricted Stock Award or may grant a Restricted Stock Award without the requirement of a cash payment.  Shares awarded pursuant to Restricted Stock Awards may be subject to the Participant entering into, or not entering into, any tax election under Code §83(b) that the Board may determine is appropriate or required.  

(b)    Acceleration of Award.  The Board shall have the power to permit, in its complete and absolute discretion, an acceleration of the expiration of the applicable restrictions or the applicable period of such restrictions with respect to any part or all of the Shares awarded to a Participant as part of a Restricted Stock Award.  
(c)    Restrictions on Shares Awarded.  Shares awarded pursuant to Restricted Stock Awards shall be subject to such restrictions (if any) as determined by the Board for such periods as may be determined by the Board, including no restrictions if the Board so determines.  The Board may impose such restrictions on any Shares acquired pursuant to a Restricted Stock Award as it may deem advisable.  The Board shall also require, as a condition for the acquisition of any Shares pursuant to a Restricted Stock Award held by a Participant, that the Participant execute an agreement by which the Participant agrees to be bound by, and subject to, any agreement(s) among the Company’s stockholders then in effect.  Shares awarded pursuant to a Restricted Stock Award may be forfeited to the extent that a Participant fails to satisfy the applicable conditions or restrictions during the period of restriction.
(d)    Right to Vote and Receive Dividends on Restricted Shares.  Each Participant of a Restricted Stock Award will, during the period of restriction, be the beneficial and record owner of such restricted shares and will have full voting rights with respect thereto.  Unless the Board determines otherwise in an Award Agreement, so long as the restrictions placed upon the Shares pursuant to the Restricted Stock Award constitute a “substantial risk of forfeiture” for purposes of Treas. Reg. §1.409A-1(d), then, during the period of restriction, all dividends (whether ordinary or extraordinary and whether paid in cash, additional Shares or other property) or other distributions paid upon any Restricted Stock Award Shares will be retained by the Company for the account of the relevant Participant.  Such dividends or other distributions will revert back to the Company if for any reason the restricted share upon which such dividends or other distributions were paid reverts back to the Company.  Upon the expiration of the period of restriction, all such dividends or other distributions made on such restricted share and retained by the Company will be paid to the relevant Participant (without interest).  If the restrictions placed upon the Shares pursuant to the Restricted Stock Award do not constitute a “substantial risk of forfeiture” for purposes of Treas. Reg. §1.409A-1(d), then such dividends or other distributions will not be paid to the Participant unless the Award Agreement specifies the terms and conditions that will be applicable to such payment.
(e)    Transferability of Restricted Stock Awards.  A Restricted Stock Award may not be transferred by the Participant, unless, subject to applicable law and other applicable restrictions, the Board expressly authorizes such transfer in writing.  A Restricted Stock Award may be transferred at any time following the lapse of all restrictions on transferability of the Restricted Stock Award.  Notwithstanding the foregoing, an Award Agreement may provide for more limited transferability than is described above.
2.3    Deferred Stock Awards.  
(a)    Grants.  The Board may grant Deferred Stock Awards through the grant of Deferred Stock Units to a Participant in such amounts and subject to such terms and conditions as the Board may determine.  Each Deferred Stock Unit shall entitle the Participant to receive one Share at such future time and upon such terms as specified by the Board in the Award Agreement evidencing such award.  Deferred Stock Units issued under the Plan may have restrictions which lapse based upon the service of a Participant, or based upon other criteria that the Board may determine appropriate.  The Board may require a cash payment from the Participant in exchange for the grant of Deferred Stock Units or may grant Deferred Stock Units without the requirement of a cash payment.  A Participant’s right to Shares based upon Deferred Stock Units shall be an unfunded, unsecured obligation of the Company until such time as Shares are actually issued to the Participant pursuant to the terms and provisions of the Award Agreement evidencing such Deferred Stock Units, and such Participant shall have no right to any specific assets of the Company prior thereto.  
(b)    Vesting of Deferred Stock Units.  The Board may establish a vesting schedule applicable to a Deferred Stock Unit and may specify the times, vesting and/or performance goal requirements that may be applicable to a Deferred Stock Unit.  Until the end of the period(s) of time specified in any such vesting schedule and/or the satisfaction of any such performance criteria, the Deferred Stock Units subject to such Award Agreement shall remain subject to forfeiture.  
(c)    Acceleration of Award.  The Board shall have the power to permit, in its complete and absolute discretion, an acceleration of the applicable restrictions or the applicable period of such restrictions with respect to any part or all of the Deferred Stock Units awarded to a Participant.  

(d)    Restrictions on Shares Awarded.  Shares awarded pursuant to Deferred Stock Units shall be subject to such restrictions as determined by the Board for periods determined by the Board.  The Board may impose such restrictions on any Shares acquired pursuant to a Deferred Stock Unit as it may deem advisable.  The Board shall also require, as a condition for the grant of any Shares to a Participant pursuant to Deferred Stock Units, that the Participant execute an agreement by which the Participant agrees to be bound by, and subject to, any agreement(s) among the Company’s stockholders then in effect.  
(e)    Voting, Dividend & Other Rights.  Unless the applicable Award Agreement expressly provides otherwise, holders of Deferred Stock Units shall not be entitled to vote or to receive dividends until they become owners of the Shares pursuant to their Deferred Stock Units.  
(f)    Transferability of Deferred Stock Units.  Except as otherwise provided in a Participant's Award Agreement, no Deferred Stock Unit granted under the Plan may be sold, transferred, pledged, assigned or otherwise alienated or hypothecated by the holder Participant, except upon the death of the holder Participant by will or by the laws of descent and distribution.  Notwithstanding the foregoing, an Award Agreement may provide for more limited transferability than is described above.  
(g)    Code §409A Requirements.  A Deferred Stock Unit must be exempt from Code §409A or meet certain restrictions contained in Code §409A if it is to avoid taxation under Code §409A as a “nonqualified deferred compensation plan.”  Grants of Deferred Stock Units under this Plan should be made with consideration of the impact of Code §409A with respect to such grant upon both the Company and the Participant of the Deferred Stock Unit.  
2.4    Dividend Equivalent Rights.  The Board may include in the Award Agreement with respect to any Award a dividend equivalent right entitling the Participant to receive amounts equal to all or any portion of the regular cash dividends that would be paid on the Shares covered by such Award if such Shares had been delivered pursuant to such Award.  The Participant holding a dividend equivalent right will have only the rights of a general unsecured creditor of the Company until payment of such amounts is made as specified in the applicable Award Agreement.  In the event such a provision is included in an Award Agreement, the Board will determine whether such payments will be made in cash, in Shares or in another form, whether they will be conditioned upon the vesting of the Award to which they relate, the time or times at which they will be made, and such other terms and conditions as the Board will deem appropriate.  Notwithstanding the foregoing, a dividend equivalent right must be exempt from Code §409A or meet certain restrictions contained in Code §409A if it is to avoid taxation under Code §409A as a “nonqualified deferred compensation plan.”  Grants of dividend equivalent rights under this Plan should be made with consideration of the impact of Code §409A with respect to such grant upon both the Company and the Participant of the dividend equivalent right.
3.    MISCELLANEOUS
3.1    Amendments.  
(a)    Amendment of Plan.  Unless otherwise provided in the Plan or in an Award Agreement, the Board may at any time and from time to time revise or amend the Plan in any respect whatsoever and, subject to §1.7(b), any such revision or amendment of the Plan shall be applicable to all Awards, except to the extent that such revision or amendment may materially adversely impair the rights of a Participant under an Award which has been granted prior to the date of such amendment (provided, however, that a revision or amendment that results solely in a change in the tax consequences with respect to an Award shall not be deemed to materially adversely impair rights of the Participant receiving such Award), and, to such extent, the revision or amendment shall not be applicable to such Award without the Participant's consent unless (A) this Plan and/or the Award Agreement evidencing such Award expressly allow such to occur, or (B) the Company would otherwise have the right to make such revision or amendment by applicable law.  
(b)    Amendment of Outstanding Award.  Subject to §1.7(b), an outstanding Award Agreement issued to a Participant may not be amended to materially adversely impair the rights of such Participant without the Participant's consent unless (A) this Plan and/or the Award Agreement evidencing such Award expressly allow such to occur, or (B) the Company would otherwise have the right to make such revision or amendment by applicable law.  
(c)    Suspension of Awards; Termination of Plan.  The Board may suspend the granting of Awards under this Plan at any time and may terminate this Plan at any time.

3.2    Tax Withholding.  Participants will be solely responsible for any applicable taxes (including, without limitation, income and excise taxes) and penalties, and any interest that accrues thereon, that they incur in connection with the receipt, vesting or disposition of any Award or Shares.  However, notwithstanding the foregoing, the Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, or any Subsidiary thereof, as a condition precedent for the fulfillment of any Award, an amount sufficient to satisfy Federal, state and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan and/or any action taken by a Participant with respect to an Award.  Whenever Shares are to be issued to a Participant upon satisfaction of conditions to the fulfillment of a Deferred Stock Unit, or grant of (if a Code §83(b) election is properly made, if required) or substantial vesting of a Restricted Stock Award, the Company, or any Subsidiary thereof, shall have the right to require the Participant to remit to the Company, or any Subsidiary thereof, as a condition to the fulfillment of the Deferred Stock Unit, or as a condition to the grant (if a Code §83(b) election is properly made, if required) or substantial vesting of the Restricted Stock Award, an amount in cash (or, unless the Award Agreement provides otherwise, in Shares) sufficient to satisfy federal, state and local withholding tax requirements at the time of such satisfaction of conditions, or grant (if a Code §83(b) election is properly made, if required) or substantial vesting.  However, notwithstanding the foregoing, to the extent that a Participant is an Insider, satisfaction of withholding requirements by having the Company, or any Subsidiary thereof, withhold Shares may only be made to the extent that such withholding of Shares (1) has met the requirements of an exemption under Rule 16b-3 promulgated under the Exchange Act, or (2) is a subsequent transaction the terms of which were provided for in a transaction initially meeting the requirements of an exemption under Rule 16b-3 promulgated under the Exchange Act.  Unless the Award Agreement provides otherwise, the withholding of shares to satisfy federal, state and local withholding tax requirements shall be a subsequent transaction approved by the original grant of all Awards.  Notwithstanding the foregoing, in no event shall payment of withholding taxes be made by a retention of Shares by the Company, or any Subsidiary thereof, unless the Company, or any Subsidiary thereof, retains only Shares with a Fair Market Value equal to or less than the minimum amount of taxes required to be withheld.
3.3    No Continued Engagement; Right of Discharge Reserved.  Neither the adoption of the Plan nor the grant of any Award (or any provision in the Plan or Award Agreement) will confer upon any Participant any right to continued engagement with the Company, nor will it interfere in any way with the right of the Company to terminate, or alter the terms and conditions of, such engagement at any time.
3.4    Nature of Payments.  Any and all grants of Awards and deliveries of Common Stock, cash, securities or other property under the Plan will be in consideration of services performed, or to be performed, for the Company by the Participant.
3.5    Plan Headings.  The headings in the Plan are for the purpose of convenience only and are not intended to define or limit the construction of the provisions hereof.
3.6    Termination of Plan.  The Board reserves the right to terminate the Plan at any time; provided, however, that in any case, the Plan will terminate on the day before the tenth (10th) anniversary of the Effective Date, and provided further, that all Awards made under the Plan before its termination will remain in effect until such Awards have been satisfied or terminated in accordance with the terms and provisions of the Plan and the applicable Award Agreements.  
3.7    Clawback/Recapture Policy.  Awards under the Plan will be subject to any clawback or recapture policy that the Company may adopt from time to time to the extent provided in such policy and, in accordance with such policy, may be subject to the requirement that the Awards be repaid to the Company after they have been distributed to the Participant.  
3.8    Code §409A.  An Award granted under this Plan shall be interpreted and administered in a manner so that any payment payable thereunder shall be paid or provided in a manner that is exempt from Code §409A if at all possible.  However, to the extent that an Award granted under this Plan constitutes deferred compensation subject to Code §409A, the Award Agreement shall be interpreted to be compliant with the requirements of Code §409A and applicable guidance and Treasury Regulations issued thereunder.  The term “payment” as used in this §3.8 shall refer to any lapse of a substantial risk of forfeiture with respect to a transfer of property which was subject to such substantial risk of forfeiture, or any other transfer of cash or other consideration pursuant to the disposition of an Award granted hereunder subject to federal income taxation.

3.9    Governing Law.  THE PLAN AND ALL AWARDS MADE AND ACTIONS TAKEN THEREUNDER WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MARYLAND, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS.  IF THE STATE OF MARYLAND’S CONFLICT OF LAW RULES WOULD APPLY ANOTHER STATE’S LAWS, THE LAWS OF THE STATE OF MARYLAND SHALL STILL GOVERN.
3.10    No Third-Party Beneficiaries.  Except as expressly provided in an Award Agreement, neither the Plan nor any Award Agreement will confer on any person other than the Company and the Participant of any Award any rights or remedies thereunder.
3.11    Successors and Assigns of the Company.  The terms of the Plan will be binding upon and inure to the benefit of the Company and any successor entity.
4.    CHANGE OF CONTROL OF COMPANY
4.1    General Rule for Deferred Stock Units.  Except as otherwise provided in an Award Agreement, if a Change of Control occurs, and if the agreements effectuating the Change of Control do not provide for the assumption or substitution of all Deferred Stock Units granted under this Plan, with respect to any Deferred Stock Unit granted under this Plan that is not so assumed or substituted (a “Non-Assumed DSU”), the Board, in its complete and absolute discretion, may, with respect to any or all of such Non-Assumed DSUs (including the possibility of different treatment with respect to different Participants), take any or all of the following actions to be effective as of the date of the Change of Control (or as of any other date fixed by the Board occurring within the twenty-five (25) day period ending on the date of the Change of Control, but only if such action remains contingent upon the effectuation of the Change of Control) (such date referred to as the “Action Effective Date”) and only if such action does not cause the affected Non-Assumed DSU to fail to comply with Code §409A or to fail to be exempt from Code §409A, notwithstanding any provision of §3.1(b) of this Plan:
(a)    Accelerate (in whole or in part) the vesting of such Non-Assumed DSU on or before a specified Action Effective Date; and/or
(b)    Unilaterally cancel all or any portion of any such Non-Assumed DSU which has not vested as of a specified Action Effective Date (regardless of whether such Non-Assumed DSU has any intrinsic value); and/or
(c)    Unilaterally cancel all or any portion of such Non-Assumed DSU as of a specified Action Effective Date and notify the holder of such Non-Assumed DSU of such action, but only if the Fair Market Value of the Shares that were subject to all or the portion of such Non-Assumed DSU being cancelled determined as of the Action Effective Date (taking into account vesting) is zero.
However, notwithstanding the foregoing, to the extent that the Participant holding a Non-Assumed DSU is an Insider, payment of cash in lieu of whole or fractional Shares or shares of a successor may only be made to the extent that such payment (1) has met the requirements of an exemption under Rule 16b-3 promulgated under the Exchange Act, or (2) is a subsequent transaction the terms of which were provided for in a transaction initially meeting the requirements of an exemption under Rule 16b-3 promulgated under the Exchange Act.  Unless an Award Agreement provides otherwise, the payment of cash in lieu of whole or fractional Shares or in lieu of whole or fractional shares of a successor shall be considered a subsequent transaction approved by the original grant of a Deferred Stock Unit.
4.2    General Rule for Other Awards.  If a Change of Control occurs, then, except to the extent otherwise provided in the Award Agreement pertaining to a particular Award or as otherwise provided in this Plan, each Award shall be governed by applicable law and the documents effectuating the Change of Control.Exhibit
10.1

 

SUBSCRIPTION
AGREEMENT

 

This
Subscription Agreement (this “Agreement”) is dated as of September 19, 2018, between One Horizon Group, Inc.,
a Delaware corporation (the “Company”), and the person and/or entity identified on the signature page hereto
(“Purchaser”).

 

The
Company is offering (the “Offering”) up to Four Million Five Hundred Thousand (4,500,000) shares of the Company’s
common stock, par value $0.0001 per share (“Common Stock”), for a purchase price of Three Hundred Sixty Thousand
Dollars ($360,000).

 

The
Offering will commence September 19, 2018, and terminate on the close of business on September 21, 2018 (“Initial Offering
Period”), which period may be extended by the Company for up to an additional ten (10) days (this additional period
and the Initial Offering Period shall be referred to as the “Offering Period”). The Company may hold one or
more subsequent closings (“Further Closings”) until the termination or expiration of the Offering Period until
such time as the Offering is filled. There is no requirement that the entire Offering be filled for the Company to accept proceeds
from the sale of the Common Stock that is the subject of this Offering and to issue such Common Stock to one or more Purchasers.

  

Purchaser
desires to purchase, and the Company is willing to sell to the Purchaser, upon the terms and conditions stated in this Agreement,
the number of Shares set forth on the signature page hereof (“Purchased Shares”), for the purchase price set
forth on the signature page hereof (“Purchase Price”).

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration
the receipt and adequacy of which are hereby acknowledged, the Company and Purchaser agree as follows:

 

ARTICLE
I

PURCHASE
AND SALE

 

1.1        Purchase
of the Securities. Subject to the terms and conditions of this Agreement, the Purchaser, intending to be legally bound, hereby
irrevocably subscribes for and agrees to purchase the Purchased Shares, and the Company agrees to issue the Purchased Shares against
its receipt of the Purchase Price.

 

1.2        Deliveries.
The Purchaser will deposit the Purchase Price for the Securities to an account designated by the Company by wire transfer of immediately
available funds. The Company will deliver to the Purchaser the Securities against the Company’s receipt of the Purchase
Price.

 

ARTICLE
II

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

The
Company represents and warrants to Purchaser as follows:

 

2.1
       Organization; Good Standing; and Power. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware. The shares of the Company’s common stock
are currently traded on NASDAQ.

 

2.2
       Authorization. The Company possesses the legal right and capacity to execute,
deliver and perform this Agreement. The execution and delivery of this Agreement does not, and the consummation of the transactions
contemplated hereby will not, violate any provision of the Company’s certificate of incorporation or bylaws. The Company
has taken all action required by law, its certificate of incorporation, its bylaws, or otherwise to authorize the execution and
delivery of this Agreement and the issuance of the Shares, and the Company has full power, authority, and legal right and has
taken all action required by law, its certificate of incorporation, bylaws, or otherwise to consummate the transactions herein
contemplated. This Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms, except to the extent such enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium, receivership, fraudulent conveyance or similar laws affecting
or relating to the enforcement of creditors’ rights generally, and by equitable principles (regardless of whether enforcement
is sought in a proceeding in equity or at law).

 

     1

     

    

 

2.3        Issuance
of the Shares. The Shares have been duly authorized, and when issued in accordance with the terms set forth in this Agreement,
will be duly authorized, and duly and validly issued, fully paid and non-assessable, free and clear of all liens imposed by the
Company.

 

2.4
       SEC Filings; Financial Statements.

 

(a)
There has been available on the SEC EDGAR website, copies of each report, registration statement and definitive proxy statement
filed by Company with the SEC since at least January 1, 2017 (the “Company SEC Reports”), which are all the
forms, reports and documents filed by Company with the SEC from January 1, 2017 to the date of this Agreement. As of their respective
dates, the Company SEC Reports: (i) were prepared in accordance and complied in all material respects with the requirements of
the Securities Act or the Securities Exchange Act of 1934 (“Exchange Act”), as the case may be, and the rules
and regulations of the SEC thereunder applicable to such Company SEC Reports; and (ii) did not at the time they were filed (and
if amended or superseded by a filing prior to the date of this Agreement then on the date of such filing and as so amended or
superseded) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(b)        Each
set of financial statements (including, in each case, any related notes thereto) contained in the Company SEC Reports comply as
to form in all material respects with the published rules and regulations of the SEC with respect thereto, were prepared in accordance
with U.S. Generally Accepted Accounting Principles (“GAAP”) applied on a consistent basis throughout the periods
involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, do not contain footnotes as
permitted by Form 10-Q promulgated under the Exchange Act) and each fairly presents in all material respects the financial position
of Company at the respective dates thereof and the results of its operations and cash flows for the periods indicated.

 

2.5
       Information. The information concerning the Company set forth in this Agreement
and the Company SEC Reports is complete and accurate in all material respects and does not contain any untrue statements of a
material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which
they were made, not misleading.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF PURCHASER

Purchaser
hereby represents and warrants to the Company as follows:

3.1        Incorporation;
Authority. Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise
to carry out its or his obligations hereunder. The execution and delivery of this Agreement and performance by Purchaser of the
transactions contemplated by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability
company or similar action, as applicable, on the part of Purchaser. This Agreement, when delivered by Purchaser in accordance
with the terms hereof, will constitute the valid and legally binding obligation of Purchaser, enforceable against it or him in
accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally; (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies; and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

 

     2

     

    

 

3.2       
Own Account. Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account
and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons
to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities
law. Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

  

3.3       
Purchaser Status. At the time Purchaser was offered the Shares, it was, and as of the date hereof it is an “accredited
investor” as defined in SEC Regulation D, Rule 501(a).

 

3.4        Experience
of Purchaser. Purchaser, either alone or together with its or his representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Purchased Shares. Purchaser is able to bear the economic risk of an investment in the Purchased Shares and, at the present
time, is able to afford a complete loss of such investment.

 

3.5
       General Solicitation. Purchaser is not purchasing the Purchased Shares as a result
of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar
media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

 

3.6
       Access to Information. Purchaser acknowledges that it or he has had the opportunity
to review this Agreement (including all exhibits and schedules thereto) and the SEC Reports and has been afforded (i) the opportunity
to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the
terms and conditions of the Shares and the merits and risks of investing in the securities of the Company; (ii) access to information
about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient
to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company owns
or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to
the investment. 

 

ARTICLE
IV

OTHER
AGREEMENTS OF THE PARTIES 

 

4.1        Transfer
Restrictions.

 

(a)         The
Purchased Shares only may be disposed of in compliance with state and federal securities laws. In connection with any transfer
of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an “affiliate”
(as defined in Rule 405 of the Securities Act) of a Purchaser, the Company may require the transferor thereof to provide to the
Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which
opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such
transferred Purchased Shares under the Securities Act. As a condition of transfer, any such transferee shall agree in writing
to be bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under this Agreement.

  

(b)         The
Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Purchased Shares in
the following form:

 

“THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.”

 

     3

     

    

 

4.2        Use
of Proceeds. The Company shall use the net proceeds from the sale of the Purchased Shares hereunder for working capital purposes.

4.3
       Registration. The Company hereby agrees to file a registration statement under
the Securities Act for the resale of the Purchased Shares and any other securities issued upon conversion or exchange or otherwise
in respect thereof, including without limitation pursuant to any stock dividend, stock split, merger, consolidation or other recapitalization
transaction (collectively, the “Registrable Securities”), in accordance with Appendix A annexed hereto
not more than fifteen (15) days after the date of the First Closing.

4.4
       Indemnification.

		(a)	The
                                         Company agrees to indemnify and hold harmless Purchaser and each of the other Indemnified
                                         Parties (as hereinafter defined) from and against any and all losses, claims, damages,
                                         obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements,
                                         and any and all actions, suits, proceedings and investigations in respect thereof and
                                         any and all legal and other costs, expenses and disbursements in giving testimony or
                                         furnishing documents in response to a subpoena or otherwise (including, without limitation,
                                         the costs, expenses and disbursements, as and when incurred, of investigating, preparing,
                                         pursing or defending any such action, suit, proceeding or investigation (whether or not
                                         in connection with litigation in which any Indemnified Party is a party) (collectively,
                                         “Losses”), directly or indirectly, caused by, relating to, based upon,
                                         arising out of, or in connection with, Purchaser’s purchase of the Purchased Shares
                                         pursuant to the terms of this Agreement, any breach by the Company of any representation,
                                         warranty, covenant or agreement contained in this Agreement, or the enforcement by Purchaser
                                         of its rights under this Agreement, except to the extent that any such Losses are found
                                         in a final judgment by a court of competent jurisdiction (not subject to further appeal)
                                         to have resulted primarily and directly from the willful misconduct of the Indemnified
                                         Party seeking indemnification hereunder.

 

		(b)	These
                                         indemnification provisions shall extend to the following persons (collectively, the “Indemnified
                                         Parties”): Purchaser, its present and former affiliated entities, partners,
                                         employees, legal counsel, agents, advisors and controlling persons (within the meaning
                                         of the federal securities laws), and the officers, directors, partners, stockholders,
                                         members, managers, employees, legal counsel, agents, advisors and controlling persons
                                         of any of them. These indemnification provisions shall be in addition to any liability
                                         that the Company may otherwise have to any Indemnified Party.

 

		(c)	If
                                         any action, suit, proceeding or investigation is commenced, as to which an Indemnified
                                         Party proposes to demand indemnification, it shall notify the Company with reasonable
                                         promptness; provided, however, that any failure by an Indemnified Party
                                         to notify the Company shall not relieve the Company from its obligations hereunder. An
                                         Indemnified Party shall have the right to retain counsel of its own choice to represent
                                         it, and the fees, expenses and disbursements of such counsel shall be borne by the Company.
                                         Any such counsel shall, to the extent consistent with its professional responsibilities,
                                         cooperate with the Company and any counsel designated by them. The Company shall be liable
                                         for any settlement of any claim against any Indemnified Party made with the written consent
                                         of the Company. The Company shall not, without the prior written consent of Purchaser,
                                         settle or compromise any claim, or permit a default or consent to the entry of any judgment
                                         in respect thereof, unless such settlement, compromise or consent (i) includes, as an
                                         unconditional term thereof, the giving by the claimant to all of the Indemnified Parties
                                         of an unconditional release from all liability in respect of such claim; and (ii) does
                                         not contain any factual or legal admission by or with respect to an Indemnified Party
                                         or an adverse statement with respect to the character, professionalism, expertise or
                                         reputation of any Indemnified Party or any action or inaction of any Indemnified Party.

  

     4

     

    

 

		(d)	In
                                         order to provide for just and equitable contribution, if a claim for indemnification
                                         pursuant to these indemnification provisions is made but it is found in a final judgment
                                         by a court of competent jurisdiction (not subject to further appeal) that such indemnification
                                         may not be enforced in such case, even though the express provisions hereof provide for
                                         indemnification in such case, then the Company shall contribute to the Losses to which
                                         any Indemnified Party may be subject: (i) in accordance with the relative benefits received
                                         by the Company and its stockholders, subsidiaries and affiliates, on the one hand, and
                                         the Indemnified Party, on the other hand; and (ii) if (and only if) the allocation provided
                                         in clause (i) of this sentence is not permitted by applicable law, in such proportion
                                         as to reflect not only the relative benefits, but also the relative fault of the Company,
                                         on the one hand, and the Indemnified Party, on the other hand, in connection with the
                                         statements, acts or omissions that resulted in such Losses as well as any relevant equitable
                                         considerations. No person found liable for a fraudulent misrepresentation shall be entitled
                                         to contribution from any person who is not also found liable for fraudulent misrepresentation.
                                         The relative benefits received (or anticipated to be received) by the Company and its
                                         stockholders, subsidiaries and affiliates shall be deemed to be equal to the purchase
                                         price for the Purchased Shares.

 

		(e)	The
                                         indemnification provisions shall be binding upon the Company and its successors and assigns
                                         and shall inure to the benefit of the Indemnified Parties and their respective successors,
                                         assigns, heirs and personal representatives and shall remain operative and in full force
                                         and effect after the Closing and for the maximum time period allowable under applicable
                                         law.

 

ARTICLE
V

MISCELLANEOUS

5.1
       Waivers. No action taken pursuant to this Agreement, including any investigation
by or on behalf of any party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representation,
warranty, covenant or agreement contained herein or in any other documents. The waiver by any party hereto of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach. Any party hereto may, at or
before the Closing, waive any conditions to its obligations that are unfulfilled.

5.2
       Binding Effect; Benefits. This Agreement shall inure to the benefit of the parties
hereto and shall be binding upon them and their respective their heirs, executors, administrators, successors, legal representatives
and assigns. Except as otherwise set forth herein, nothing in this Agreement, expressed or implied, is intended to confer upon
any person other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations, or liabilities
under or by reason of this Agreement.

5.3
       Assignment; Delegation. No party to this Agreement may assign its rights or delegate
its obligations hereunder without the prior written consent of all of the other parties. Any assignment or delegation in violation
of this Section 5.3 shall be null and void.

5.4
       Entire Agreement. This Agreement constitutes the entire agreement and supersedes
all prior agreements, statements, representations or promises, oral and written, among the parties hereto with respect to the
subject matter hereof. No party hereto shall be bound by or charged with any written or oral arguments, representations, warranties,
statements, promises or understandings not specifically set forth in this Agreement.

5.5        Notices.
Any notice, demand or other communication which any party hereto may be required, or may elect, to give to anyone interested hereunder
shall be sufficiently given if sent prepaid, with a recognized international courier service.

 

5.6        Governing
Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New York,
without giving effect to conflicts of law principles. If there is any litigation relating to this Agreement or the transaction
contemplated hereby, the parties hereto irrevocably consent to the jurisdiction of the courts of the State of New York and of
any court located in such State in connection with any action or proceeding arising out of or relating to this Agreement, any
document or instrument delivered pursuant to, in connection with or simultaneously with this Agreement, or a breach of this Agreement
or any such document or instrument.

 

5.7
       Severability. If any term or provision of this Agreement shall to any extent
be finally determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall
not be affected thereby, and each term and provision of the agreement shall be valid and enforced to the fullest extent permitted
by law, provided that as so enforced, each of the parties receives substantially all of the benefits contemplated hereby.

     5

     

    

 

5.8        Counterparts.
This Agreement may be executed through the use of separate signature pages or in any number of counterparts and by e-mail, and
each of such counterparts shall, for all purposes, constitute a single agreement binding on all parties, notwithstanding that
all parties are not signatories to the same counterpart.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year this subscription has been accepted
by the Company as set forth below.

 

Name
of Purchaser: Bespoke Growth Partners, Inc.

  

	Signature
    of Individual or Authorized Signatory: 	 	 

 

Email
Address of Authorized Signatory: mhp@123bgp.com

 

Address
for Notices to Purchaser: 

 

Legal
& Compliance, LLC

c/o
Bespoke Growth Partners, Inc.

330
Clematis Street, Ste. 217

West
Palm Beach, FL 33401

 

Address
for Delivery of Securities to Purchaser (if not same as address for notice):

 

Social
Security (Individual) or EIN Number (Entity): 26-4498468

 

Number
of Shares Purchased: 4,500,000

 

Purchase
Price: $360,000

 

ACCEPTANCE
OF SUBSCRIPTION

	 	 	 	 
	 	ONE HORIZON GROUP, INC.	 
	 	 	 	 
	 	By:	 	 
	 	 	Martin Ward	 
	 	 	Chief Financial Officer	 
	 	 	Duly Authorized	 
	Date: September 19, 2018	 	 	 

 

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Appendix
A

REGISTRATION
RIGHTS

(a) 
As used in this Appendix A the following capitalized terms used without definition shall have the meanings assigned to
them below:

 

	 	1.	“Damages”
    means any loss, damage, or liability (joint or several) to which a party hereto may become subject under the Securities Act,
    the Exchange Act, or other federal or state law, insofar as such loss, damage, or liability (or any action in respect thereof)
    arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any registration
    statement of the Company filed pursuant hereto, including any preliminary prospectus or final prospectus contained therein
    or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required
    to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation
    by the indemnifying party (or any of its agents or affiliates) of the Securities Act, the Exchange Act, any state securities
    law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law based upon,
    or arising out of, any of such party’s obligations arising hereunder.

 

	 	2.	“Exchange
    Act” means the Securities Exchange Act of 1934, as amended from time-to-time, and the rules and regulations promulgated
    thereunder.

 

	 	3.	“Person”
    means any individual, corporation, partnership, trust, limited liability company, association or other entity.

 

	 	4.	“Registrable
    Securities” means the Shares and or other securities issued upon conversion or exchange or otherwise in respect
    thereof, including without limitation pursuant to any stock dividend, stock split, merger, consolidation or other recapitalization
    transaction.

 

	 	5.	“SEC”
    means the Securities and Exchange Commission.

 

	 	6.	“SEC
    Rule 144” means Rule 144 promulgated by the SEC under the Securities Act, as in effect from time-to-time.

 

	 	7.	“Securities
    Act” means the Securities Act of 1933, as amended from time-to-time, and the rules and regulations promulgated thereunder.

  

	 	8.	“Selling
    Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale
    of Registrable Securities, and the fees and expenses of counsel to the Buyer.

 

     7

     

    

 

(b)
Not later than fifteen (15) days after the date of the First Closing, the Company will file a registration statement under the
Securities Act for the resale of the Registrable Securities by the Purchaser on Form S-3, or if the Company does not then qualify
to use Form S-3, Form S-1 or such other form as it is then eligible to use for the resale of the Registrable Securities (the “Registration
Statement”) and shall use its reasonable commercial efforts to have the Registration Statement declared effective by
the SEC and maintain the effectiveness of the Registration Statement until all of the Registrable Securities have been sold or
are eligible for sale pursuant to Rule 144 without restriction. The Company shall furnish the Purchaser with a copy of the prospectus
included in the Registration Statement at the time it is declared effective and any amendments or supplements thereto. The Company
shall notify Purchaser of the happening of any event of which the Company has knowledge as a result of which the prospectus contained
in such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then
existing, and promptly prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers
of the Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein not misleading; provided that the Company may postpone for up to ninety (90) days
the delivery of any such supplement or amendment if the Company’s Board of Directors determines in good faith that disclosure
of the new information to be contained therein would reasonably be expected to have a material adverse effect on: (i) any proposal
or plan by the Company or any of its affiliates to engage in any acquisition of assets (other than in the ordinary course of business)
or any merger, consolidation, tender offer, reorganization or similar transaction; or (ii) any pending or threatened litigation
to which the Company is, or is threatened to be made, a party.

As
a condition to the registration of the Registrable Securities, the Purchaser shall furnish the Company and its counsel with such
information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such Registrable
Securities as is reasonably required to file the Registration Statement and cause the timely registration of the Registrable Securities.

The
Company shall pay all expenses (other than Selling Expenses), and stock transfer taxes applicable to the sale of the Registrable
Securities, and the fees and expenses of counsel to the Purchaser) incurred in connection with the registration of the Registrable
Securities, including all registration, filing and accounting fees, and fees and disbursements of counsel for the Company.

(c)(1)
To the extent permitted by law, the Company will indemnify and hold harmless the Purchaser, and the partners, members, officers,
directors, and shareholders of the Purchaser, and each Person, if any, who controls the Purchaser, against any Damages, and the
Company will pay to the Purchaser, controlling Person, or other aforementioned Person any legal fees and other expenses reasonably
incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such
expenses are incurred; provided, however, that such indemnity shall not apply to amounts paid in settlement of any such claim
or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld,
nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made
in reliance upon and in conformity with written information furnished by or on behalf of the Purchaser, controlling Person, or
other aforementioned Person expressly for use in connection with such registration.

(c)(2)
To the extent permitted by law, the Purchaser will indemnify and hold harmless the Company, and each of its directors, each of
its officers who has signed the Registration Statement, each Person (if any), who controls the Company within the meaning of the
Securities Act, legal counsel for the Company, against any Damages, in each case only to the extent that such Damages arise out
of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on
behalf of the Purchaser expressly for use in connection with such registration; and the Purchaser will pay to the Company and
each other aforementioned Person any legal fees and other expenses reasonably incurred thereby in connection with investigating
or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that such
indemnity shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without
the consent of the Purchaser, which consent shall not be unreasonably withheld; and provided further that in no event shall the
aggregate amounts payable by the Purchaser by way of such indemnity exceed the Purchase Price.

     8

     

    

 

(c)(3)
Promptly after receipt by an indemnified party of notice of the commencement of any action (including any governmental action)
for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is
to be made against any indemnifying party, give the indemnifying party notice of the commencement thereof. The indemnifying party
shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with
any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel reasonably mutually
satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties that may
be represented without conflict by counsel) shall have the right to retain separate counsel, with the reasonable fees and expenses
to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying
party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party
represented by such counsel in such action. The failure to give notice to the indemnifying party within a reasonable time of the
commencement of any such action will not relieve such indemnifying party of any liability to the indemnified party, except to
the extent, and only to the extent, that such failure actually and materially prejudices the indemnifying party’s ability
to defend such action. The failure to give notice to the indemnifying party will not relieve it of any liability that it may have
to any indemnified party otherwise than as provided herein.

(c)(4)
To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any
party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Appendix A but
it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration
of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding
the fact that this Appendix A provides for indemnification in such case; or (ii) contribution under the Securities Act
may be required on the part of any party hereto for which indemnification is provided under this Appendix A, then, and
in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they
may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of
the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted
in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations. The relative
fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether
the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to
information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case,
no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled
to contribution from any Person who was not guilty of such fraudulent misrepresentation; and provided further that in no event
shall the aggregate amounts payable by the Purchaser by way of indemnity or contribution exceed the Purchase Price.

(d)
The obligations of the Company and the Purchaser under this Appendix A shall survive the completion of any offering of
the Registrable Securities in a registration under this Appendix A, and otherwise shall survive the termination of this
Agreement for the maximum time period allowable under applicable law.

     9

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