Document:

stim-ex44_309.htm

 

Exhibit 4.4

DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

The following description summarizes certain of the terms of the capital stock of Neuronetics, Inc. This description does not purport to be complete and is qualified in its entirety by reference to our amended and restated certificate of incorporation, as amended, and our bylaws, as amended, each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit is a part. We encourage you to read our amended and restated certificate of incorporation, bylaws and the applicable provisions of Delaware law for additional information. Unless the context requires otherwise, all references to “we”, “us,” “our” and “Company” in this section refer solely to Neuronetics, Inc. and not to any subsidiaries that we may have from time to time.

General

Under our amended and restated certificate of incorporation we are authorized to issue up to 200,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share, all of which shares of preferred stock are undesignated. Our board of directors may establish the rights and preferences of the preferred stock from time to time. 

Common Stock

Voting Rights

Each holder of our common stock is entitled to one vote for each share of common stock on all matters submitted to a vote of the stockholders, including the election of directors. Under our amended and restated certificate of incorporation and amended and restated bylaws, our stockholders do not have cumulative voting rights. Because of this, the holders of a majority of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they should so choose.

Dividends

Subject to preferences that may be applicable to any then-outstanding preferred stock, holders of common stock are entitled to receive ratably those dividends, if any, as may be declared from time to time by the board of directors out of legally available funds.

Liquidation

In the event of our liquidation, dissolution or winding up, holders of common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then-outstanding shares of preferred stock.

Rights and Preferences

Holders of common stock have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable to the common stock. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely affected by, the right of the holders of shares of any series of preferred stock that we may designate in the future.

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Preferred Stock

Pursuant to our amended and restated certificate of incorporation, our board of directors has the authority, without further action by our stockholders, to issue up to 10,000,000 shares of preferred stock in one or more series and to fix the designations, number of shares, rights, voting powers, preferences, privileges and the qualifications, limitations and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences and sinking fund terms, and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of common stock. The purpose of authorizing our board of directors to issue preferred stock and determine its rights and preferences is to eliminate delays associated with a stockholder vote on specific issuances. Our issuance of preferred stock with voting or conversion rights could adversely affect the voting power of holders of common stock and the likelihood and amount that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change of control or other corporate action, or make the removal of management more difficult. Additionally, the issuance of preferred stock may have the effect of decreasing the market price of the common stock and the voting and other rights of the holders thereof.

Our board of directors will fix the designations, number of shares, rights voting powers, preferences and privileges of each series, as well as the qualifications, limitations or restrictions thereof, of the preferred stock of each series in the certificate of designation relating to that series. 

Anti-Takeover Provisions

Provisions in our amended and restated certificate of incorporation and our amended and restated bylaws may discourage, delay or prevent a merger, acquisition or other change in control that stockholders may consider favorable, including transactions in which stockholders might otherwise receive a premium for their shares. In addition, these provisions may frustrate or prevent any attempt by our stockholders to replace or remove our current management by making it more difficult to replace or remove our board of directors. These provisions include:

	
 
	
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a prohibition on stockholder action through written consent;

	
 
	
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no cumulative voting in the election of directors;

	
 
	
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the exclusive right of our board of directors to elect a director to fill a vacancy created by the expansion of the board of directors or the resignation, death or removal of a director;

	
 
	
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a requirement that special meetings of stockholders be called only by the board of directors, the chairman of the board of directors, the chief executive officer or, in the absence of a chief executive officer, the president;

	
 
	
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an advance notice requirement for stockholder proposals and nominations;

	
 
	
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the authority of our board of directors to issue preferred stock with such terms as our board of directors may determine; and

	
 
	
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a requirement of approval of not less than 66 2/3% of all outstanding shares of our capital stock entitled to vote to amend any bylaws by stockholder action, or to amend specific provisions of our amended and restated certificate of incorporation.

The combination of these provisions will make it more difficult for our existing stockholders to replace our board of directors as well as for another party to obtain control of us by replacing our board of directors. Because our board of directors has the power to retain and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect a change in management. In addition, the authorization of undesignated preferred stock makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change our control.

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These provisions are intended to enhance the likelihood of continued stability in the composition of our board of directors and its policies and to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to reduce our vulnerability to hostile takeovers and to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our shares and may have the effect of delaying changes in our control or management. As a consequence, these provisions may also inhibit fluctuations in the market price of our stock that could result from actual or rumored takeover attempts. We believe that the benefits of these provisions, including increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure our company, outweigh the disadvantages of discouraging takeover proposals, because negotiation of takeover proposals could result in an improvement of their terms.

Choice of Forum

Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware will be the exclusive forum for:

	
 
	
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any derivative action or proceeding brought on our behalf;

	
 
	
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any action asserting a breach of fiduciary duty;

	
 
	
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any action asserting a claim against us arising pursuant to the Delaware General Corporation Law, our amended and restated certificate of incorporation, or our amended and restated bylaws; or

	
 
	
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any action asserting a claim against us that is governed by the internal affairs doctrine.

Our amended and restated certificate of incorporation further provides that the federal district courts of the United States of America will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act of 1933, as amended (the “Securities Act”). On December 19, 2018, the Delaware Chancery Court issued an opinion in Sciabacucchi v. Salzberg, C.A. No. 2017-0931-JTL, invalidating a similar provision in the certificates of incorporation of three other Delaware corporations that each purported to limit to federal court the forum in which a stockholder could bring a claim under the Securities Act. In light of this decision, we do not currently intend to enforce the federal forum selection provision unless Sciabacucchi is reversed on appeal, which appeal has been made. If the Delaware Supreme Court affirms the Delaware Chancery Court’s decision in Sciabacucchi. In order to accommodate the timely filing of our proxy materials for the annual meeting of stockholders to be held in 2020, we would intend to continue to not enforce the federal forum selection provision and would intend to seek approval by our stockholders to amend our amended and restated certificate of incorporation to remove the federal forum selection provision for Securities Act claims at the next regularly-scheduled annual meeting of stockholders following the annual meeting of stockholders to be held in 2020 where it is reasonably practicable to do so.

Recent Amendment to the Ninth Amended and Restated Certificate of Incorporation

The Company’s Ninth Amended and Restated Certificate of Incorporation was amended on May 30, 2019, following stockholder approval at the annual meeting held on May 28, 2019, to provide that any of our directors or our entire Board of Directors may be removed, with or without cause, by the holders of a majority of our capital stock then entitled to vote on the election of directors.

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, LLC. The transfer agent’s address is 6201 15th Avenue, Brooklyn, New York 11219. 

Listing on The Nasdaq Global Market

Our common stock is listed for trading on Nasdaq under the symbol “STIM.”

3Exhibit 10.1

 

SECOND
AMENDMENT TO LEASE AGREEMENT

 

THIS
SECOND AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is entered into as of the 3rd day of March,
2020 to be effective as of the 1st day of March, 2020 (the “Amendment Effective Date”), by and between
IIP-MD 1 LLC, a Delaware limited liability company (“Landlord”), and HOLISTIC INDUSTRIES LLC, a Maryland limited
liability company (“Tenant”).

 

RECITALS

 

A.            WHEREAS,
Landlord and Tenant are parties to that certain Lease Agreement dated as of May 26, 2017 (the “Original Lease”),
as amended by that certain First Amendment to Lease Agreement dated September 25, 2017 (the “First Amendment”
and together with the Original Lease, the “Existing Lease”), whereby Tenant leases the premises from Landlord
located at 9220 Alaking Court, Capitol Heights, Maryland; and

 

B.            WHEREAS,
Landlord and Tenant desire to modify and amend the Existing Lease only in the respects and on the conditions hereinafter stated.

 

AGREEMENT

 

NOW,
THEREFORE, Landlord and Tenant, in consideration of the mutual promises contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, agree as follows:

 

1.            Definitions.
For purposes of this Amendment, capitalized terms shall have the meanings ascribed to them in the Existing Lease unless otherwise
defined herein. The Existing Lease, as amended by this Amendment, is referred to collectively herein as the “Lease.”
From and after the date hereof, the term “Lease,” as used in the Existing Lease, shall mean the Existing Lease, as
amended by this Amendment.

 

2.            Term.
Section 3.1 of the Existing Lease is hereby amended and restated in its entirety as follows:

 

“3.1.       Term.
The actual term of this Lease (as the same may be extended or earlier terminated in accordance with this Lease, the “Term”)
commenced on May 26, 2017 (the “Commencement Date”) and shall end on February 28, 2035, subject to extension
or earlier termination of this Lease as provided herein.”

 

3.            Additional
TI Allowance. Tenant has requested, and Landlord has agreed to fund, subject to the terms and conditions set forth in the
Lease, an additional tenant improvement allowance not to exceed Five Million Five Hundred Thousand Dollars ($5,500,000.00) (the
 “Additional TI Allowance”) to be used to pay or reimburse Tenant for certain costs relating to the redevelopment
of the second floor of the Building on the Premises (the “Additional Tenant Improvements”). The Additional
TI Allowance and the Additional Tenant Improvements shall be subject to the same terms and conditions in the Existing Lease that
apply to the original TI Allowance and Tenant Improvements, including the terms and conditions of Section 5 of the Existing
Lease and the Work Letter attached as Exhibit G thereto; provided, however, that (a) the TI Deadline for the Additional
TI Allowance shall be January 1, 2022, (b) Section 5.4(c) of the Existing Lease shall be deemed amended to require that
Landlord receive written confirmation of final approval of the Maryland Cannabis Commission to continue cannabis cultivation operations
at the Property, to the extent required by Applicable Laws as a result of the Additional Tenant Improvements, and (c) Section
6.3(g) of the Work Letter shall be deemed amended to require that Landlord receive the final “as-built” plans
for the interior of the Building following completion of the Additional Tenant Improvements.

 

4.            Base
Rent; Annual Escalation. In consideration of the Additional TI Allowance, Tenant shall be obligated to pay an additional Fifty-Seven
Thousand Two Hundred Ninety One Dollars and Sixty Seven Cents ($57,291.67) of Base Rent per month (the “Additional
TI Base Rent”), subject to adjustment as set forth in the Lease; provided, however, that
the Additional TI Base Rent shall be abated for a period of six (6) months commencing on the Amendment Effective Date and continuing
through the date that is six (6) months after the Amendment Effective Date (the “Additional TI Base Rent Abatement
Period”) for a total Base Rent abatement of Three Hundred Forty Three Thousand Seven Hundred
and Fifty Dollars ($343,750) , in the aggregate. In addition to the foregoing, the annual upward adjustment to Base Rent pursuant
to Section 6.2.5 of the Existing Lease shall be adjusted to become effective on the first annual anniversary of the Amendment
Effective Date and subsequent adjustments shall become effective on every successive annual anniversary of the Amendment Effective
Date during the Term. Accordingly, notwithstanding anything contained in the Lease to the contrary, the monthly aggregate Base
Rent and Property Management Fee for the initial Term of the Lease shall be as set forth in Exhibit A attached hereto and
incorporated herein by reference. 

 

    	 	 	 

     

    

 

5.            Termination
of Limited Guaranty; Delivery of New Guaranty. Concurrently with the execution of this Amendment, Holistic Industries Inc.,
a Delaware corporation (“New Guarantor”) shall execute and deliver to Landlord a Guaranty in the form attached
as Exhibit B to this Amendment (the “New Guaranty”) confirming New Guarantor’s full and unconditional
guaranty of Tenant’s obligations under the Lease, whether accruing before, on or after the Execution Date of the Existing
Lease, including, without limitation, all of the obligations under the Existing Lease guaranteed by Limited Guarantor pursuant
to the Limited Guaranty. In consideration of New Guarantor’s execution of the New Guaranty that guarantees Tenant’s
Lease obligations incurred prior to, on and after the Execution Date of the Existing Lease, upon Landlord’s receipt of the
New Guaranty duly executed by New Guarantor, (a) the Limited Guaranty shall be deemed terminated, and the Limited Guarantor shall
be released from any and all claims of any nature (whether absolute or contingent, asserted or unasserted, known or unknown, primary
or secondary, direct or indirect, in contract or in tort, liquidated or unliquidated, accrued or unaccrued, and whether arising
under any agreement or understanding or otherwise at law or equity) that Landlord now has, has ever had or may hereafter have
against Limited Guarantor, arising out of or in any way connected with or related to the Limited Guaranty, (b) Recital E
and Section 34 of the Existing Lease shall be deemed deleted in their entirety, (c) the obligations of New Guarantor shall
be joint and several with Tenant’s obligations under the Lease; (d) all references in the Lease to “Guarantor”
shall mean and refer to the New Guarantor; and (e) all references in the Lease to a Guaranty shall mean and refer to the New Guaranty.

 

6.            Termination
of Purchase Option. The parties have agreed to delete the Purchase Option previously granted to Tenant. Accordingly, Section
33.2 of the Existing Lease is hereby terminated in its entirety. Tenant agrees to reasonably cooperate with Landlord to cause
the Termination of Purchase Option Memorandum currently held by Landlord to be recorded in the Land Records of Prince George’s
County, Maryland, and Tenant agrees to promptly execute and deliver any such further documents as may be reasonably requested
by Landlord to remove the Purchase Option Memorandum from record title to the Premises. The heading of Section 33 shall
be amended and restated as follows: “Right of First Offer; [Intentionally Omitted].” In addition, the subheading
of Section 33.2 is hereby amended and restated in its entirety as follows: “[Intentionally Omitted].”

 

7.            Reasonable
Cooperation. In the event that Tenant requires additional funding in connection with any future phase of redevelopment with
respect to the Property and requests that Landlord fund such costs or a portion of such costs as an additional tenant improvement
allowance under the Lease, Landlord agrees to consider such a request from Tenant in good faith, and in the event that Landlord
has funds available and is interested in pursuing such additional funding with Tenant, the parties shall negotiate in good faith
to try and reach mutually agreeable terms relating to such additional funding; provided, however, that in no event shall the foregoing
be deemed or implied as a binding commitment by Landlord to provide any additional funding to Tenant or to negotiate any terms
with Tenant for such additional funding if Landlord is interested in pursuing other options at the time Tenant requests such additional
funding.

 

8.            Landlord’s
Notice Address. Effective as of the Amendment Effective Date, Landlord’s address for rent payments and notices pursuant
to Sections 2.4 and 2.5, respectively, of the Existing Lease shall be as follows:

 

IIP-MD 1 LLC

c/o Innovative Industrial Properties, Inc.

11440 West Bernardo Court, Suite 100

San Diego, California 92127

Attention: General Counsel

 

    	 	2	 

     

    

 

9.            Broker.
Tenant represents and warrants that it has not dealt with any broker or agent in the negotiation for or the obtaining of this
Amendment and agrees to reimburse, indemnify, save, defend (at Landlord’s option and with counsel reasonably acceptable
to Landlord, at Tenant’s sole cost and expense) and hold harmless the Landlord Indemnitees for, from and against any and
all cost or liability for compensation claimed by any such broker or agent employed or engaged by it or claiming to have been
employed or engaged by it.

 

10.          No
Default. Tenant represents, warrants and covenants that, to the best of Tenant’s knowledge, Landlord and Tenant are
not in default of any of their respective obligations under the Existing Lease and no event has occurred that, with the passage
of time or the giving of notice (or both) would constitute a default by either Landlord or Tenant thereunder.

 

11.          Effect
of Amendment. Except as modified by this Amendment, the Existing Lease and all the covenants, agreements, terms, provisions
and conditions thereof shall remain in full force and effect and are hereby ratified and affirmed. In the event of any conflict
between the terms contained in this Amendment and the Existing Lease, the terms herein contained shall supersede and control the
obligations and liabilities of the parties.

 

12.          Successors
and Assigns. Each of the covenants, conditions and agreements contained in this Amendment shall inure to the benefit of and
shall apply to and be binding upon the parties hereto and their respective heirs, legatees, devisees, executors, administrators
and permitted successors and assigns and sublessees. Nothing in this section shall in any way alter the provisions of the Lease
restricting assignment or subletting.

 

13.          Miscellaneous.
This Amendment becomes effective only upon execution and delivery hereof by Landlord and Tenant. The captions of the paragraphs
and subparagraphs in this Amendment are inserted and included solely for convenience and shall not be considered or given any
effect in construing the provisions hereof. All exhibits hereto are incorporated herein by reference. Submission of this instrument
for examination or signature by Tenant does not constitute a reservation of or option for a lease, and shall not be effective
as a lease, lease amendment or otherwise until execution by and delivery to both Landlord and Tenant.

 

14.          Authority.
Tenant guarantees, warrants and represents that the individual or individuals signing this Amendment have the power, authority
and legal capacity to sign this Amendment on behalf of and to bind all entities, corporations, partnerships, limited liability
companies, joint venturers or other organizations and entities on whose behalf such individual or individuals have signed.

 

15.          Counterparts;
Facsimile and PDF Signatures. This Amendment may be executed in one or more counterparts, each of which, when taken together,
shall constitute one and the same document. A facsimile or portable document format (PDF) signature on this Amendment shall be
equivalent to, and have the same force and effect as, an original signature.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

    	 	3	 

     

    

 

IN
WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the date and year first above written.

 

	LANDLORD:	 
	 	 	 	 
	IIP-MD 1
    LLC,	 
	a Delaware
    limited liability company	 
	 	 	 	 
	 	 	 	 
	By:	 	/s/
    Brian Wolfe	 
	Name:	 	Brian Wolfe	 
	Title:	 	Vice President, General
    Counsel and Secretary	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	TENANT:	 
	 	 	 	 
	HOLISTIC
    INDUSTRIES LLC,	 
	a Maryland
    limited liability company	 
	 	 	 	 
	 	 	 	 
	By:	 	/s/
    Barry H. Bass	 
	Name:	 	Barry H. Bass	 
	Title:	 	Chief Financial Officer	 

 

     

     

    

 

EXHIBIT
A

 

BASE RENT
AND PROPERTY MANAGEMENT FEE SCHEDULE

 

	 	 	 	 	Monthly	 	 
	 	 	Monthly	 	Property	 	 
	Period	 	Base Rent	 	Management Fee	 	Monthly Amount
	 	 	 	 	 	 	 
	03/01/20 to
    08/31/20	 	226,145.29	 	3,392.18	 	229,537.47
	09/01/20 to 02/28/21	 	283,436.96	 	4,251.55	 	287,688.51
	03/01/21 to 02/28/22	 	292,648.66	 	4,389.73	 	297,038.39
	03/01/22 to 02/28/23	 	302,159.74	 	4,532.40	 	306,692.14
	03/01/23 to 02/29/24	 	311,979.93	 	4,679.70	 	316,659.63
	03/01/24 to 02/28/25	 	322,119.28	 	4,831.79	 	326,951.07
	03/01/25 to 02/28/26	 	332,588.15	 	4,988.82	 	337,576.98
	03/01/26 to 02/28/27	 	343,397.27	 	5,150.96	 	348,548.23
	03/01/27 to 02/29/28	 	354,557.68	 	5,318.37	 	359,876.05
	03/01/28 to 02/28/29	 	366,080.81	 	5,491.21	 	371,572.02
	03/01/29 to 02/28/30	 	377,978.43	 	5,669.68	 	383,648.11
	03/01/30 to 02/28/31	 	390,262.73	 	5,853.94	 	396,116.67
	03/01/31 to 02/29/32	 	402,946.27	 	6,044.19	 	408,990.46
	03/01/32 to 02/28/33	 	416,042.02	 	6,240.63	 	422,282.65
	03/01/33 to 02/28/34	 	429,563.39	 	6,443.45	 	436,006.84
	03/01/34 to 02/28/35	 	443,524.20	 	6,652.86	 	450,177.06

 

 

     

     

    

EXHIBIT B

 

FORM OF

 

GUARANTY
OF LEASE

 

This
Guaranty of Lease (“Guaranty”) is executed effective on the 1st day of March, 2020, by Holistic
Industries Inc., a Delaware corporation (“Guarantor”), whose address for notices is 308 Massachusetts Avenue,
NW Washington, DC 20002, in favor of IIP-MD 1 LLC, a Delaware limited liability company (“Landlord”), whose
address for notices is 11440 West Bernardo Court, Suite 100, San Diego, California 92127, Attn: General Counsel.

 

For
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor covenants and agrees
as follows:

 

1.            Recitals.
This Guaranty is made with reference to the following recitals of facts which constitute a material part of this Guaranty:

 

(a)          Landlord,
as Landlord, and Holistic Industries LLC, a Maryland limited liability company, as Tenant (“Tenant”), entered
into that certain Lease dated as of May 26, 2017 (the “Original Lease”), as amended by that certain First Amendment
to Lease dated September 25, 2017 (the “First Amendment”), and as further amended by that certain Second Amendment
to Lease dated March 1, 2020 (the “Second Amendment”) (the Original Lease, as amended by the First Amendment,
the Second Amendment and as otherwise modified and amended and restated from time to time is hereinafter referred to as the “Lease”),
with respect to the real property located at 9220 Alaking Court, Capital Heights, Maryland 20743, as more particularly described
in the Lease (the “Leased Premises”).

 

(b)          Guarantor
is the parent company of Tenant and is therefore receiving a substantial benefit for executing this Guaranty.

 

(c)          Landlord
would not have entered into the Second Amendment with Tenant, which includes the termination of the Limited Guaranty of Lease
executed by Richard Cohen, individually, and dated effective on June 7, 2017 (as amended, the “Limited Guaranty”),
without having received this Guaranty executed by Guarantor as an inducement to Landlord.

 

(d)          By
this Guaranty, effective retroactively to the commencement of the Lease, Guarantor intends to absolutely, unconditionally and
irrevocably guarantee the full, timely, and complete (i) payment of all rent and other sums required to be paid by Tenant under
the Lease and any other indebtedness of Tenant, (ii) performance of all other terms, covenants, conditions and obligations of
Tenant arising out of the Lease and all foreseeable and unforeseeable damages that may arise as a foreseeable or unforeseeable
consequence of any non-payment, non-performance or non-observance of, or non-compliance with, any of the terms, covenants, conditions
or other obligations described in the Lease (including, without limitation, all attorneys' fees and disbursements and all litigation
costs and expenses incurred or payable by Landlord or for which Landlord may be responsible or liable, or caused by any such default),
and (iii) payment of any and all expenses (including reasonable attorneys' fees and expenses and litigation expenses) incurred
by Landlord in enforcing any of the rights under the Lease or this Guaranty within five (5) business days after Landlord's demand
thereafter (collectively, the “Guaranteed Obligations”). For the avoidance of doubt, the Guaranteed Obligations expressly
include all of the “Guaranteed Obligations” (as defined in the Limited Guaranty) of Richard Cohen under the Limited
Guaranty being terminated concurrently herewith, provided that Guarantor’s obligations under this Guaranty shall in no way
be deemed, by implication or otherwise, to be subject to the limitations set forth in the Limited Guaranty, including any cap
on liability as set forth in Section 3 therein.

 

     

     

    

 

2.            Guaranty.
Effective for Guaranteed Obligations accruing before, on and after the Execution Date (as such term is defined under the Lease),
Guarantor absolutely, unconditionally and irrevocably guarantees, as principal obligor and not merely as surety, to Landlord,
the full, timely and unconditional payment and performance, of the Guaranteed Obligations strictly in accordance with the terms
of the Lease, as such Guaranteed Obligations may be modified, amended, extended or renewed from time to time. This is a Guaranty
of payment and performance and not merely of collection. Guarantor agrees that Guarantor is primarily liable for and responsible
for the payment and performance of the Guaranteed Obligations. Guarantor shall be bound by all of the provisions, terms, conditions,
restrictions and limitations contained in the Lease which are to be observed or performed by Tenant, the same as if Guarantor
was named therein as Tenant with joint and several liability with Tenant, and any remedies that Landlord has under the Lease against
Tenant shall apply to Guarantor as well. If Tenant defaults in any Guaranteed Obligation under the Lease, Guarantor shall in lawful
money of the United States, pay to Landlord on demand the amount due and owing under the Lease. Guarantor waives any rights to
notices of acceptance, modifications, amendment, extension or breach of the Lease. If Guarantor is a natural person, it is expressly
agreed that this guaranty shall survive the death of such guarantor and shall continue in effect. The obligations of Guarantor
under this Guaranty are independent of the obligations of Tenant or any other guarantor. Guarantor acknowledges that this Guaranty
and Guarantor's obligations and liabilities under this Guaranty are and shall at all times continue to be absolute and unconditional
in all respects and shall be the separate and independent undertaking of Guarantor without regard to the genuineness, validity,
legality or enforceability of the Lease, and shall at all times be valid and enforceable irrespective of any other agreements
or circumstances of any nature whatsoever which might otherwise constitute a defense to this Guaranty and the obligations and
liabilities of Guarantor under this Guaranty or the obligations or liabilities of any other person or entity (including, without
limitation, Tenant) relating to this Guaranty or the obligations or liabilities of Guarantor hereunder or otherwise with respect
to the Lease or to Tenant. Guarantor hereby absolutely, unconditionally and irrevocably waives any and all rights it may have
to assert any defense, set-off, counterclaim or cross-claim of any nature whatsoever with respect to this Guaranty or the obligations
or liabilities of Guarantor under this Guaranty or the obligations or liabilities of any other person or entity (including, without
limitation, Tenant) relating to this Guaranty or the obligations or liabilities of Guarantor under this Guaranty or otherwise
with respect to the Lease, in any action or proceeding brought by the holder hereof to enforce the obligations or liabilities
of Guarantor under this Guaranty. This Guaranty sets forth the entire agreement and understanding of Landlord and Guarantor, and
Guarantor acknowledges that no oral or other agreements, understandings, representations or warranties exist with respect to this
Guaranty or with respect to the obligations or liabilities of Guarantor under this Guaranty. The obligations of Guarantor under
this Guaranty shall be continuing and irrevocable (a) during any period of time when the liability of Tenant under the Lease continues,
and (b) until all of the Guaranteed Obligations have been fully discharged by payment, performance or compliance. If at any time
all or any part of any payment received by Landlord from Tenant or Guarantor or any other person under or with respect to the
Lease or this Guaranty has been refunded or rescinded pursuant to any court order, or declared to be fraudulent or preferential,
or are set aside or otherwise are required to be repaid to Tenant, its estate, trustee, receiver or any other party, including
as a result of the insolvency, bankruptcy or reorganization of Tenant or any other party (an “Invalidated Payment”),
then Guarantor's obligations under the Guaranty shall, to the extent of such Invalidated Payment be reinstated and deemed to have
continued in existence as of the date that the original payment occurred. This Guaranty shall not be affected or limited in any
manner by whether Tenant may be liable, with respect to the Guaranteed Obligations individually, jointly with other primarily,
or secondarily.

 

3.            No
Impairment of Guaranteed Obligations. Guarantor further agrees that Guarantor's liability for the Guaranteed Obligations shall
in no way be released, discharged, impaired or affected or subject to any counterclaim, setoff or deduction by (a) any waiver,
consent, extension, indulgence, compromise, release, departure from or other action or inaction of Landlord under or in respect
of the Lease or this Guaranty, or any obligation or liability of Tenant, or any exercise or non-exercise of any right, remedy,
power or privilege under or in respect to the Lease or this Guaranty, (b) any change in the time, manner or place of payment or
performance of the Guaranteed Obligations, (c) the acceptance by Landlord of any additional security or any increase, substitution
or change therein, (d) the release by Landlord of any security or any withdrawal thereof or decrease therein, (e) any assignment
of the Lease or any subletting of all or any portion of the Leased Premises (with or without Landlord's consent), (f) any holdover
by Tenant beyond the term of the Lease, (g) any termination of the Lease, (h) any release or discharge of Tenant in any bankruptcy,
receivership or other similar proceedings, (i) the impairment, limitation or modification of the liability of Tenant or the estate
of Tenant in bankruptcy or of any remedy for the enforcement of Tenant's liability under the Lease resulting from the operation
of any present or future provisions of any bankruptcy code or other statute or from the decision in any court, or the rejection
or disaffirmance of the Lease in any such proceedings, (j) any merger, consolidation, reorganization or similar transaction involving
Tenant, even if Tenant ceases to exist as a result of such transaction, (k) the change in the corporate relationship between Tenant
and Guarantor or any termination of such relationship, (l) any change in the direct or indirect ownership of all or any part of
the shares in Tenant, or (m) to the extent permitted under applicable law, any other occurrence or circumstance whatsoever, whether
similar or dissimilar to the foregoing, which might otherwise constitute a legal or equitable defense or discharge of the liabilities
of Guarantor or which might otherwise limit recourse against Guarantor. Guarantor further understands and agrees that Landlord
may at any time enter into agreements with Tenant to amend and modify the Lease, and may waive or release any provision or provisions
of the Lease, and, with reference to such instruments, may make and enter into any such agreement or agreements as Landlord and
Tenant may deem proper and desirable, without in any manner impairing or affecting this Guaranty or any of Landlord's rights hereunder
or Guarantor's obligations hereunder, unless otherwise agreed in writing thereunder or under the Lease.

 

     

     

    

 

4.            Remedies.

 

(a)          If
Tenant defaults with respect to the Guaranteed Obligations, and if Guarantor does not promptly fulfill Tenant's obligations after
receipt of written notice of such default from Landlord or within any applicable cure period for Tenant as set forth in the Lease,
Landlord may at its election proceed immediately against Guarantor, Tenant, or any combination of Tenant, Guarantor, and/or any
other guarantor. It is not necessary for Landlord, in order to enforce payment and performance by Guarantor under this Guaranty,
first or contemporaneously to institute suit or exhaust remedies against Tenant or other liable for any of the Guaranteed Obligations
or to enforce rights against any collateral securing any of it. Guarantor hereby waives any right to require Landlord to join
Tenant in any action brought hereunder or to commence any action against or obtain any judgment against Tenant or to pursue any
other remedy or enforce any other right. If any portion of the Guaranteed Obligations terminates and Landlord continues to have
any rights that it may enforce against Tenant under the Lease after such termination, then Landlord may at its election enforce
such rights against Guarantor. Unless and until all Guaranteed Obligations have been fully satisfied, Guarantor shall not be released
from its obligations under this Guaranty irrespective of: (i) the exercise (or failure to exercise) by Landlord of any of Landlord's
rights or remedies (including, without limitation, compromise or adjustment of the Guaranteed Obligations or any part thereof);
or (ii) any release by Landlord in favor of Tenant regarding the fulfillment by Tenant of any obligation under the Lease.

 

(b)          Notwithstanding
anything in the foregoing to the contrary, Guarantor hereby covenants and agrees to and with Landlord that Guarantor may be joined
in any action by or against Tenant in connection with the Lease. Guarantor also agrees that, in any jurisdiction, it will be conclusively
bound by the judgment in any such action by or against Tenant (wherever brought) as if Guarantor were a party to such action even
though Guarantor is not joined as a party in such action.

 

5.            Waivers.
With the exception of the defense of prior payment, performance or compliance by Tenant or Guarantor of or with the Guaranteed
Obligations which Guarantor is called upon to pay or perform, or the defense that Landlord's claim against Guarantor is barred
by the applicable statute of limitations, Guarantor hereby waives and releases all defenses of the law of guaranty or suretyship
to the extent permitted by law.

 

6.            Rights
Cumulative. All rights, powers and remedies of Landlord under this Guaranty shall be cumulative and in addition to all rights,
powers and remedies given to Landlord by law.

 

7.            Representations
and Warranties. Guarantor hereby represents and warrants that (a) Guarantor has goods and net worth that are sufficient to
enable Guarantor to promptly perform all of the Guaranteed Obligations as and when they are due; (b) Landlord has made no representation
to Guarantor as to the creditworthiness or financial condition of Tenant; (c) Guarantor has full power to execute, deliver and
carry out the terms and provisions of this Guaranty and has taken all necessary action to authorize the execution, delivery and
performance of this Guaranty; (d) Guarantor's execution and delivery of, and the performance of its obligations under, this Guaranty
does not conflict with or violate any of Guarantor's organizational documents, or any contract, agreement or decree which Guarantor
is a party to or which is binding on Guarantor; (e) the individual executing this Guaranty on behalf of Guarantor has the authority
to bind Guarantor to the terms and conditions of this Guaranty; (f) Guarantor has been represented by counsel of its choice in
connection with this Guaranty; (g) this Guaranty when executed and delivered shall constitute the legal, valid and binding obligations
of Guarantor enforceable against Guarantor in accordance with its terms; and (h) there is no action, suit, or proceeding pending
or, to the knowledge of Guarantor, threatened against Guarantor before or by any governmental authority which questions the validity
or enforceability of, or Guarantor's ability to perform under, this Guaranty.

 

     

     

    

 

8.            Subordination.
In the event of Tenant's insolvency or the disposition of the assets of Tenant, through bankruptcy, by an assignment for the
benefit of creditors, by voluntary liquidation, or otherwise, the assets of Tenant applicable to the payment of all claims of
Landlord and/or Guarantor shall be paid to Landlord and shall be first applied by Landlord to the Guaranteed Obligations. Any
indebtedness of Tenant now or hereafter held by Guarantor, whether as original creditor or assignee or by way of subrogation,
restitution, reimbursement, indemnification or otherwise, is hereby subordinated in right of payment to the Guaranteed Obligations.
So long as an uncured event of default exists under the Lease, (a) at Landlord's written request, Guarantor shall cause Tenant
to pay to Landlord all or any part of any funds invested in or loaned to Tenant by Guarantor which Guarantor is entitled to withdraw
or collect and (b) any such indebtedness or other amount collected or received by Guarantor shall be held in trust for Landlord
and shall forthwith be paid over to Landlord to be credited and applied against the Guaranteed Obligations. Subject to the foregoing,
Guarantor shall be entitled to receive from Landlord any amounts that are, from time to time, due to Guarantor in the ordinary
course of business. Until all of Tenant's obligations under the Lease are fully performed, Guarantor shall have no right of subrogation
against Tenant by reason of any payments, acts or performance by Guarantor under this Guaranty.

 

9.            Governing
Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of Maryland, United States
of America, without regard to principles of conflicts of laws. TO THE FULLEST EXTENT PERMITTED BY LAW, GUARANTOR HEREBY UNCONDITIONALLY
AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS GUARANTY.

 

10.          Attorneys'
Fees. In the event any litigation or other proceeding (“Proceeding”) is initiated by any party against
any other party to enforce this Guaranty, the prevailing party in such Proceeding shall be entitled to recover from the unsuccessful
party all costs, expenses, and actual reasonable attorneys' fees relating to or arising out of such Proceeding.

 

11.          Modification.
This Guaranty may be modified only by a contract in writing executed by Guarantor and Landlord.

 

12.          Invalidity.
If any provision of the Guaranty shall be invalid or unenforceable, the remainder of this Guaranty shall not be affected by
such invalidity or unenforceability. In the event, and to the extent, that this Guaranty shall be held ineffective or unenforceable
by any court of competent jurisdiction, then Guarantor shall be deemed to be a tenant under the Lease with the same force and
effect as if Guarantor were expressly named as a co-tenant therein with joint and several liability.

 

13.          Successors
and Assigns. Unless otherwise agreed in writing or under the Lease, this Guaranty shall be binding upon and shall inure to
the benefit of the successors-in-interest and assigns of each party to this Guaranty.

 

14.          Notices.
Any notice, consent, demand, invoice, statement or other communication required or permitted to be given hereunder shall be
in writing and shall be given by (a) personal delivery, (b) overnight delivery with a reputable international overnight delivery
service, such as FedEx, or (c) facsimile or email transmission, so long as such transmission is followed within one (1) business
day by delivery utilizing one of the methods described in subsections (a) or (b). Any such notice, consent, demand, invoice, statement
or other communication shall be deemed delivered (x) upon receipt, if given in accordance with subsection (a); (y) one business
(1) day after deposit with a reputable international overnight delivery service, if given if given in accordance with subsection
(b); or (z) upon transmission, if given in accordance with subsection (c). Except as otherwise stated in this Guaranty, any notice,
consent, demand, invoice, statement or other communication required or permitted to be given pursuant to this Guaranty shall be
addressed to Guarantor or Landlord at the address set forth above in the introductory paragraph of this Guaranty. Either party
may, by notice to the other given pursuant to this Section, specify additional or different addresses for notice purposes.

 

15.          Waiver.
Any waiver of a breach or default under this Guaranty must be in a writing that is duly executed by Landlord and shall not
be a waiver of any other default concerning the same or any other provision of this Guaranty. No delay or omission in the exercise
of any right or remedy shall impair such right or remedy or be construed as a waiver.

 

     

     

    

 

16.          Withholding.
Unless otherwise agreed in the Lease, any and all payments by Guarantor to Landlord under this Guaranty shall be made free and
clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and all liabilities with respect thereto (collectively, “Taxes”). If Guarantor
shall be required by any applicable laws to deduct any Taxes from or in respect of any sum payable under this Guaranty to Landlord:
(a) the sum payable shall be increased as necessary so that after making all required deductions, the Landlord receives an amount
equal to the sum it would have received had no such deductions been made; (b) Guarantor shall make such deductions; and (c) Guarantor
shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable laws.

  

17.          Financial
Condition of Tenant. Landlord shall have no obligation to disclose or discuss with Guarantor Landlord's assessment of the
financial condition of Tenant. Guarantor has adequate means to obtain information from Tenant on a continuing basis concerning
the financial condition of Tenant and its ability to perform its Guaranteed Obligations, and Guarantor assumes responsibility
for being and keeping informed of Tenant's financial condition and of all circumstances bearing upon the risk of Tenant's failure
to perform the Guaranteed Obligations.

 

18.          Bankruptcy.
So long as the Guaranteed Obligations remain outstanding, Guarantor shall not, without Landlord's prior written consent, commence
or join with any other person in commencing any bankruptcy or similar proceeding of or against Tenant. Guarantor's obligations
hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended or terminated by any bankruptcy or similar
proceeding (voluntary or involuntary) involving Tenant or by any defense that Tenant may have by reason of an order, decree or
decision of any court or administrative body resulting from any such proceeding. To the fullest extent permitted by law, Guarantor
will permit any trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar person
to pay to Landlord or allow the claim of Landlord in respect of any interest, fees, costs, expenses or other Guaranteed Obligations
accruing or arising after the date on which such case or proceeding is commenced.

 

19.          Conveyance
or Transfer. Without Landlord's written consent, Guarantor shall not convey, sell, lease or transfer any of its properties
or assets to any person or entity to the extent that such conveyance, sale, lease or transfer could have a material adverse effect
on Guarantor's ability to fulfill any of the Guaranteed Obligations.

 

20.          Intentionally
Omitted. 

 

21.          Financials.
To induce Landlord to enter into the Lease, and as requested by the Landlord, Guarantor shall, within ninety (90) days after
the end of Guarantor's financial year, furnish Landlord with a certified copy of Guarantor's year-end unconsolidated financial
statements for the previous year, audited by a nationally recognized accounting firm. If audited financial statements are not
otherwise prepared, then Guarantor may satisfy the requirement to provide audited financial statements by providing in lieu thereof
unaudited financial statements prepared in accordance with GAAP and certified by the chief financial officer of Guarantor as correct
and complete copies of such financial statements, fairly presenting Guarantor's financial condition as of the time set forth therein
and having been prepared in accordance with GAAP.

 

22.          Joint
and Several Liability. Guarantor's liability under this Guaranty shall be joint and several with any and all other Guarantors
in accordance with the terms and conditions of the Lease.

 

[REMAINDER
OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

     

     

    

 

IN
WITNESS WHEREOF, Guarantor has caused this Guaranty to be signed by its respective officer thereunto duly authorized, all as of
the date first written above.

 

	GUARANTOR
	 	 	 	 
	HOLISTIC
    INDUSTRIES INC.,
	a Delaware
    corporation	 
	 	 	 	 
	By:	 	 	 
	Name:	 	 	 
	Title:

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