Document:

Document

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of November 14, 2021, is by and among CV Sciences, Inc., a Delaware corporation with offices located at 10070 Barnes Canyon Rd., San Diego, California 92121 (the “Company”), and each of the investors listed on the Schedule of Buyers attached hereto (individually, a “Buyer” and collectively, the “Buyers”).

RECITALS

A.        The Company and each Buyer desire to enter into this transaction to purchase Notes (as defined below) pursuant to a currently effective shelf registration statement on Form S-3, which has sufficient availability for the issuance of the Securities (as defined below) on each Closing Date (as defined below) (Registration Number 333-237772) (the “Registration Statement”) and has been declared effective in accordance with the 1933 Act, by the SEC.

B.        The Company has authorized a new series of senior convertible notes of the Company, in the aggregate original principal amount of $5,300,000, substantially in the form attached hereto as Exhibit A-1 (the “Notes”), which Notes shall be convertible into shares of Common Stock (as defined below) (the shares of Common Stock issuable pursuant to the terms of the Notes, including, without limitation, upon conversion or otherwise, collectively, the “Conversion Shares”), in accordance with, and issued pursuant to and by, the provisions of (x) an Indenture dated as of the Initial Closing Date (as defined below), by and between the Company and Wilmington Savings Fund Society, FSB, as trustee (the “Trustee”), in substantially the form attached hereto as Exhibit A-2 (as amended and/or supplemented from time to time, including, without limitation, by any Supplemental Indenture (as defined below), the “Indenture”), and (y) one or more supplemental indentures with respect to the Notes in the form attached hereto as Exhibit A-3 (each, a “Supplemental Indenture”, and collectively, the “Supplemental Indentures”).

C.        Each Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, at the Initial Closing (as defined below) a Note in the aggregate original principal amount set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers (which aggregate principal amount for all Buyers shall not exceed $1,060,000.00) (each an “Initial Note”, and collectively, the “Initial Notes”).

D.        Subject to the terms and conditions set forth in this Agreement, the Company may require each Buyer to participate in one or more Additional Closings (as defined below) for the purchase by such Buyer, and the sale by the Company, of one or more additional Notes with an aggregate original principal amount for all Additional Closings not to exceed the maximum aggregate principal amount set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers (which aggregate principal amount for all Buyers for all Additional Closings shall not exceed $4,240,000.0) (each an “Additional Note”, and collectively, the “Additional Notes”).

E.         The Notes and the Conversion Shares are collectively referred to herein as the “Securities.”

AGREEMENT

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and each Buyer hereby agree as follows:

1.PURCHASE AND SALE OF NOTES.

(a)    Purchase of Notes 

(i)    Purchase of Initial Notes.  Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6(a) and 7(a) below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company on the Initial Closing Date (as defined below) an Initial Note in the original principal amount as is set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers (the “Initial Closing”).

(ii)    Purchase of Additional Notes.  Subject to the satisfaction (or waiver) of the conditions set forth in Sections 1(a)(ii), 6(b) and 7(b) below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, shall purchase from the Company on the applicable Additional Closing Date (as defined below), an Additional Note in the original principal amount as is set forth in the Additional Closing Notice (each, an “Additional Closing”).

(b)    Closing.  Each Initial Closing and Additional Closing (collectively, the “Closings”) of the purchase of Notes by the Buyers shall occur at the offices of Kelley Drye & Warren LLP, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007.

(i)    Initial Closing.  The date and time of the Initial Closing (the “Initial Closing Date”) shall be 10:00 a.m., New York time, on the first (1st) Business Day on which the conditions to the Closing set forth in Sections 6(a) and 7(a) below are satisfied or waived (or such other date as is mutually agreed to by the Company and each Buyer).  As used herein “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee”  or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally are open for use by customers on such day. 

(ii)    Additional Closing. 

(1)    Additional Closing Dates.  Subject to the satisfaction (or waiver) of the conditions set forth in this Section 1(a)(ii) and Sections 6(b) and 7(b) below (the “Additional Closing Conditions”), the date and time of the Additional Closing shall be 10:00 a.m., New York time on the later of (x) the proposed closing date as set forth in the applicable Additional Closing Notice (as defined below) and (y) the second (2nd) Trading Day after the Company shall have satisfied the Additional Notice Conditions for such Additional Closing (or such other date as is mutually agreed to by the Company and each Buyer) (each, an “Additional Closing Date,” and the Initial Closing Date and the Additional Closing Date, each, a “Closing Date”).   Notwithstanding anything herein to the contrary, if the last Additional Closing Date has not occurred by November 14, 2022 (or such later date as mutually agreed upon by the Company and each Buyer) (the “Additional Closing Expiration Date”), no further Additional Closings shall occur hereunder.

(2)    Additional Closing Mechanics.  Subject to the satisfaction (or waiver) of the Additional Notice Conditions (as defined below), the Company may deliver one or more written notices, at any time less than $106,000 in aggregate principal amount of Notes 

remain outstanding (each, an “Additional Closing Notice”, and the date thereof each, an “Additional Closing Notice Date”) to the Buyers, with a copy to the Trustee, executed by the chief executive officer or chief financial officer of the Company, (A) certifying that the Company has satisfied the Additional Closing Volume Condition (as defined below), the Additional Closing Price Condition (as defined below) as of such Additional Closing Notice Date and (II) no Equity Conditions Failure (as defined in the Initial Notes) exists (or detailing any such Equity Conditions Failure and specifying that no Additional Closing shall occur unless the Buyers waiver such Equity Conditions Failure) as of such Additional Closing Notice Date (the “Additional Notice Conditions”), (B) confirming the aggregate principal amount of the Additional Notes to be purchased by such Buyer and the proposed Additional Closing Date (which, individually, shall not exceed $1,060,000.00 and, together with the aggregate principal amount of any Additional Notes issued at any prior Additional Closings, shall not exceed the maximum aggregate principal amount as set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers), (C) setting forth the proposed Additional Closing Date and (D) attaching the draft applicable additional Supplemental Indenture and Prospectus Supplement (as defined below) with respect thereto.  Each Additional Closing Notice shall be irrevocable.  For the avoidance of doubt, the Buyers shall not be required to consummate any Additional Closing if on the Additional Closing Date if the Additional Closing Volume Condition, the Additional Closing Price Condition or any Additional Notice Condition or Additional Closing Condition, as applicable, has not been satisfied in full.  

(c)    Purchase Price.  The aggregate purchase price for the Notes to be purchased by each Buyer (the “Initial Purchase Price”) shall be the amount set forth opposite such Buyer’s name in column (5) on the Schedule of Buyers.  The aggregate purchase price for the Additional Notes to be purchased by each Buyer at any given Additional Closing (each, an “Additional Purchase Price”, and together with the Additional Purchase Price, each, a “Purchase Price”) shall be $940 for each $1,000 of aggregate principal amount of Additional Notes to be issued in such Additional Closing (which, together with the Additional Purchase Price of each prior Additional Closings, shall not exceed the aggregate amount set forth opposite such Buyer’s name in column (6) on the Schedule of Buyers).  

(d)    Form of Payment.  

(i)    Initial Closing.  On the Initial Closing Date, (i) each Buyer shall pay its respective Initial Purchase Price (less, in the case of any Buyer, the amounts withheld pursuant to Section 4(j)) to the Company for the Initial Notes to be issued and sold to such Buyer at the Initial Closing, by wire transfer of immediately available funds in accordance with the Initial Flow of Funds Letter (as defined below) and (ii) the Company shall deliver to each Buyer an Initial Note in the aggregate original principal amount as is set forth opposite such Buyer’s name in column (3) of the Schedule of Buyers, duly executed on behalf of the Company and registered in the name of such Buyer or its designee. 

(ii)    Additional Closing.  On each Additional Closing Date, (i) each Buyer shall pay its respective applicable Additional Purchase Price for such Additional Closing (less, in the case of any Buyer, the amounts withheld pursuant to Section 4(j)) to the Company for the Additional Notes to be issued and sold to such Buyer at such Additional Closing, by wire transfer of immediately available funds in accordance with the applicable Additional Flow of Funds Letter (as defined below) and (ii) the Company shall deliver to each Buyer an Additional Note in the aggregate original principal amount as is set forth in the Additional Closing Notice to be issued to such Buyer, duly executed on behalf of the Company and registered in the name of such Buyer or its designee.

2.    BUYER’S REPRESENTATIONS AND WARRANTIES.

Each Buyer, severally and not jointly, represents and warrants to the Company with respect to only itself that, as of the date hereof and as of each Closing Date:

(a)    Organization; Authority.  Such Buyer is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

(b)    Validity; Enforcement.  This Agreement has been duly and validly authorized, executed and delivered on behalf of such Buyer and shall constitute the legal, valid and binding obligations of such Buyer enforceable against such Buyer in accordance with its terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

(c)    No Conflicts.  The execution, delivery and performance by such Buyer of this Agreement and the consummation by such Buyer of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Buyer, or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Buyer is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which could not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Buyer to perform its obligations hereunder.

(d)    No Group.  Other than affiliates of such Buyer who are also Buyers under this Agreement, such Buyer is not under common control with or acting in concert with any other Buyer and is not part of a “group” for purposes of the 1934 Act.

3.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company represents and warrants to each of the Buyers that, as of the date hereof and as of each Closing Date:

(a)    Organization and Qualification.  Each of the Company and each of its Subsidiaries are entities duly organized and validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authority to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted.  Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect (as defined below).  As used in this Agreement, “Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or any other agreements or instruments to be entered into in connection herewith or therewith or (iii) the authority or ability of the Company or any of its Subsidiaries to perform any of their respective obligations under any of the Transaction Documents (as 

defined below).  Other than the Persons (as defined below) set forth on Schedule 3(a), the Company has no Subsidiaries.  “Subsidiaries” means any Person in which the Company, directly or indirectly, (I) owns any of the outstanding capital stock or holds any equity or similar interest of such Person or (II) controls or operates all or any part of the business, operations or administration of such Person, and each of the foregoing, is individually referred to herein as a “Subsidiary.”

(b)    Authorization; Enforcement; Validity.  The Company has the requisite power and authority to enter into and perform its obligations under this Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof.  The execution and delivery of this Agreement and the other Transaction Documents by the Company, and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Notes and the reservation for issuance and issuance of the Conversion Shares issuable upon conversion of the Notes) have been duly authorized by the Company’s board of directors (other than (i) the filing with the SEC of (A) the applicable 8-K Filing (as defined below), (B) a prospectus supplement in connection with the applicable Closing as required by the Registration Statement pursuant to Rule 424(b) under the 1933 Act (the “Prospectus Supplement”) supplementing the base prospectus forming part of the Registration Statement (the “Prospectus”), (C) the Indenture (and/or any amendment or supplement thereto), (F) a Form T-1, and (D) any other filings as may be required by any state securities agencies (collectively, the “Required Approvals”) and no further filing, consent or authorization is required by the Company, its board of directors or its stockholders or other governing body.  This Agreement has been, and the other Transaction Documents to which it is a party will be prior to such Closing, duly executed and delivered by the Company, and each constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities law.  “Transaction Documents” means, collectively, this Agreement, the Notes, the Custodian Agreements, the Indenture, the Supplemental Indentures, the Irrevocable Transfer Agent Instructions (as defined below) and each of the other agreements and instruments entered into or delivered by any of the parties hereto in connection with the transactions contemplated hereby and thereby, as may be amended from time to time.

(c)    Issuance of Securities; Registration Statement.  The issuance of the Notes are duly authorized and upon issuance in accordance with the terms of the Transaction Documents shall be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances (collectively “Liens”) with respect to the issuance thereof.  As of the applicable Closing, the Company shall have reserved from its duly authorized capital stock not less than 200% of the maximum number of Conversion Shares issuable upon conversion of the Notes (assuming for purposes hereof that (x) the Notes are convertible at the Alternate Conversion Price (as defined in the Notes) assuming an Alternate Conversion Date (as defined in the Notes) as of the date hereof, and (y) any such conversion shall not take into account any limitations on the conversion of the Notes set forth in the Notes).  Upon issuance or conversion in accordance with the Notes, the Conversion Shares, when issued, will be validly issued, fully paid and nonassessable and free from all preemptive or similar rights or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock.  The issuance by the Company of the Securities has been registered under the 1933 Act, the Securities are being issued pursuant to the Registration Statement and all of the Securities are freely transferable and freely tradable by each of the Buyers without restriction, whether by way of registration or some exemption therefrom.  The Registration Statement is effective and available for the issuance of the Securities thereunder and the Company has not received any notice that the SEC has issued or intends to issue a stop-order with respect to the Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends or 

has threatened in writing to do so.  The “Plan of Distribution” section under the Registration Statement permits the issuance and sale of the Securities hereunder and as contemplated by the other Transaction Documents.  Upon receipt of the Securities, each of the Buyers will have good and marketable title to the Securities.  The Registration Statement and any prospectus included therein, including the Prospectus and the Prospectus Supplement, complied in all material respects with the requirements of the 1933 Act and the Securities Exchange Act of 1934, as amended (the “1934 Act”) and the rules and regulations of the SEC promulgated thereunder and all other applicable laws and regulations.  At the time the Registration Statement and any amendments thereto became effective, at the date of this Agreement and at each deemed effective date thereof pursuant to Rule 430B(f)(2) of the 1933 Act, the Registration Statement and any amendments thereto complied and will comply in all material respects with the requirements of the 1933 Act and did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading.  The Prospectus and any amendments or supplements thereto (including, without limitation the Prospectus Supplement), at the time the Prospectus or any amendment or supplement thereto was issued and at the applicable Closing Date, complied, and will comply, in all material respects with the requirements of the 1933 Act and did not, and will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  The Company meets all of the requirements for the use of Form S-3 under the 1933 Act for the offering and sale of the Securities contemplated by this Agreement and the other Transaction Documents, and the SEC has not notified the Company of any objection to the use of the form of the Registration Statement pursuant to Rule 401(g)(1) under the 1933 Act. The Registration Statement meets the requirements set forth in Rule 415(a)(1)(x) under the 1933 Act. At the earliest time after the filing of the Registration Statement that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the 1933 Act) relating to any of the Securities, the Company was not and is not an “Ineligible Issuer” (as defined in Rule 405 under the 1933 Act). The Registration Statement has been filed with the SEC not earlier than three years prior to the date hereof; and no notice of objection of the SEC to the use of such registration statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the 1933 Act has been received by the Company. No order suspending the effectiveness of the Registration Statement has been issued by the SEC and no proceeding for that purpose or pursuant to Section 8A of the 1933 Act against the Company or related to the offering has been initiated or threatened by the SEC; as of the effective time of the Registration Statement, the Registration Statement complied and will comply in all material respects with the 1933 Act and the TIA (as defined below) and did not contain and will not 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 not misleading; and as of the date of the Prospectus and any amendment or supplement thereto and as of the Closing Date, the Prospectus did not and will not 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 the light of the circumstances under which they were made, not misleading; provided that the Company makes no representation and warranty with respect to (i) that part of the Registration Statement that constitutes the Statement of Eligibility and Qualification (Form T-1) of the Trustee under the TIA or (ii) any statements or omissions in the Registration Statement and the Prospectus and any amendment or supplement thereto made in reliance upon and in conformity with information relating to any underwriter or placement agent  furnished to the Company in writing by such underwriter or placement agent expressly for use therein. The Company (i) has not distributed any offering material in connection with the offer or sale of any of the Securities and (ii) until no Buyer holds any of the Securities, shall not distribute any offering material in connection with the offer or sale of any of the Securities to, or by, any of the Buyers (if required), in each case, other than the Registration Statement, the Prospectus or the Prospectus Supplement.  In accordance with Rule 5110(b)(7)(C)(i) of the Financial Industry Regulatory Authority Manual, the offering of the Securities has been registered with the SEC on Form S-3 under the 1933 Act pursuant to the standards for Form S-3 in effect prior to October 21, 1992, and the Securities are being offered pursuant to Rule 415 promulgated under the 1933 Act.

(d)    No Conflicts.  The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Notes the Conversion Shares and the reservation for issuance of the Conversion Shares) will not (i) result in a violation of the Certificate of Incorporation (as defined below) (including, without limitation, any certificate of designation contained therein), Bylaws (as defined below), certificate of formation, memorandum of association, articles of association, bylaws or other organizational documents of the Company or any of its Subsidiaries, or any capital stock or other securities of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state securities laws and regulations and the rules and regulations of the OTCQB (the “Principal Market”) and including all applicable foreign, federal and state laws, rules and regulations) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected.

(e)    Consents.  Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any filing or registration with (other than the Required Approvals), any Governmental Entity (as defined below) or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by the Transaction Documents, in each case, in accordance with the terms hereof or thereof.  All consents, authorizations, orders, filings and registrations which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been or will be obtained or effected on or prior to such Closing Date, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or filings contemplated by the Transaction Documents.  The Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of the Common Stock in the foreseeable future.  “Governmental Entity” means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal, state, local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal), multi-national organization or body; or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public international organization or any of the foregoing.

(f)    Acknowledgment Regarding Buyer’s Purchase of Securities.  The Company acknowledges and agrees that each Buyer is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule 144”)) of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “1934 Act”)).  The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Buyer’s purchase of the Securities.  The Company further represents to each Buyer that the Company’s decision to enter into the 

Transaction Documents to which it is a party has been based solely on the independent evaluation by the Company and its representatives.

(g)    Placement Agent’s Fees.  The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged by any Buyer or its investment advisor) relating to or arising out of the transactions contemplated hereby.  The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, attorney’s fees and out-of-pocket expenses) arising in connection with any such claim.  Neither the Company nor any of its Subsidiaries has engaged any placement agent or other agent in connection with the offer or sale of the Securities.

(h)    No Integrated Offering.  None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to require approval of stockholders of the Company under any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated for quotation.  None of the Company, its Subsidiaries, their affiliates nor any Person acting on their behalf will take any action or steps that would cause the offering of any of the Securities to be integrated with other offerings of securities of the Company.

(i)    Dilutive Effect.  The Company understands and acknowledges that the number of Conversion Shares will increase in certain circumstances.  The Company further acknowledges that its obligation to issue the Conversion Shares pursuant to the terms of the Notes in accordance with this Agreement and the Notes is, in each case, absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.

(j)    Application of Takeover Protections; Rights Agreement.  The Company and its board of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison pill (including, without limitation, any distribution under a rights agreement), stockholder rights plan or other similar anti-takeover provision under the Certificate of Incorporation, Bylaws or other organizational documents or the laws of the jurisdiction of its incorporation or otherwise which is or could become applicable to any Buyer as a result of the transactions contemplated by this Agreement, including, without limitation, the Company’s issuance of the Securities and any Buyer’s ownership of the Securities.  The Company and its board of directors have taken all necessary action, if any, in order to render inapplicable any stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of shares of Common Stock or a change in control of the Company or any of its Subsidiaries.

(k)    SEC Documents; Financial Statements.  During the two (2) years prior to the date hereof, the Company has timely filed all reports, schedules, forms, proxy statements, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits and appendices included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”).  The Company has delivered or has made available to the Buyers or their respective representatives true, correct and complete copies of each of the SEC Documents not available on the EDGAR system.  As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  As of their respective dates, the 

financial statements of the Company included in the SEC Documents complied in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing.  Such financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”), consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments which will not be material, either individually or in the aggregate).  The reserves, if any, established by the Company or the lack of reserves, if applicable, are reasonable based upon facts and circumstances known by the Company on the date hereof and there are no loss contingencies that are required to be accrued by the Statement of Financial Accounting Standard No. 5 of the Financial Accounting Standards Board which are not provided for by the Company in its financial statements or otherwise.  No other information provided by or on behalf of the Company to any of the Buyers which is not included in the SEC Documents (including, without limitation, information in the disclosure schedules to this Agreement) contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein not misleading, in the light of the circumstance under which they are or were made.  The Company is not currently contemplating to amend or restate any of the financial statements (including, without limitation, any notes or any letter of the independent accountants of the Company with respect thereto) included in the SEC Documents (the “Financial Statements”), nor is the Company currently aware of facts or circumstances which would require the Company to amend or restate any of the Financial Statements, in each case, in order for any of the Financials Statements to be in compliance with GAAP and the rules and regulations of the SEC.  The Company has not been informed by its independent accountants that they recommend that the Company amend or restate any of the Financial Statements or that there is any need for the Company to amend or restate any of the Financial Statements.

(l)    Absence of Certain Changes.  Since the date of the Company’s most recent audited financial statements contained in a Form 10-K, there has been no material adverse change and no material adverse development in the business, assets, liabilities, properties, operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any of its Subsidiaries.  Since the date of the Company’s most recent audited financial statements contained in a Form 10-K, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually or in the aggregate, outside of the ordinary course of business or (iii) made any capital expenditures, individually or in the aggregate, outside of the ordinary course of business.  Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so.  The Company and its Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at such Closing, will not be Insolvent (as defined below).  For purposes of this Section 3(l), “Insolvent” means, (i) with respect to the Company and its Subsidiaries, on a consolidated basis, (A) the present fair saleable value of the Company’s and its Subsidiaries’ assets is less than the amount required to pay the Company’s and its Subsidiaries’ total Indebtedness (as defined below), (B) the Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company and its Subsidiaries intend to incur or believe that they will incur debts that would be beyond their ability to pay as such debts mature; and (ii) with respect to the Company and each Subsidiary, individually, (A) the present fair saleable value of the Company’s or such Subsidiary’s (as the case may be) assets is less than the amount required to pay its respective total Indebtedness, (B) the Company or such Subsidiary (as the case may be) is unable to pay its respective debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities 

become absolute and matured or (C) the Company or such Subsidiary (as the case may be) intends to incur or believes that it will incur debts that would be beyond its respective ability to pay as such debts mature.  Neither the Company nor any of its Subsidiaries has engaged in any business or in any transaction, and is not about to engage in any business or in any transaction, for which the Company’s or such Subsidiary’s remaining assets constitute unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted.

(m)    No Undisclosed Events, Liabilities, Developments or Circumstances.  No event, liability, development or circumstance has occurred or exists, or is reasonably expected to exist or occur with respect to the Company, any of its Subsidiaries or any of their respective businesses, properties, liabilities, prospects, operations (including results thereof) or condition (financial or otherwise), that (i) would be required to be disclosed by the Company under applicable securities laws on a registration statement on Form S-1 filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced, (ii) could have a material adverse effect on any Buyer’s investment hereunder or (iii) could have a Material Adverse Effect.  

(n)    Conduct of Business; Regulatory Permits.  Neither the Company nor any of its Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation, any certificate of designation, preferences or rights of any other outstanding series of preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation, memorandum of association, articles of association, Certificate of Incorporation or certificate of incorporation or bylaws, respectively.  Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor any of its Subsidiaries will conduct its business in violation of any of the foregoing, except in all cases for possible violations which could not, individually or in the aggregate, have a Material Adverse Effect.  Without limiting the generality of the foregoing, the Company is not in violation of any of the rules, regulations or requirements of the Principal Market and has no knowledge of any facts or circumstances that could reasonably lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable future.  During the two years prior to the date hereof, (i) the Common Stock has been listed or designated for quotation on the Principal Market, (ii) trading in the Common Stock has not been suspended by the SEC or the Principal Market and (iii) the Company has received no communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock from the Principal Market.  The Company and each of its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit.  There is no agreement, commitment, judgment, injunction, order or decree binding upon the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries is a party which has or would reasonably be expected to have the effect of prohibiting or materially impairing any business practice of the Company or any of its Subsidiaries, any acquisition of property by the Company or any of its Subsidiaries or the conduct of business by the Company or any of its Subsidiaries as currently conducted other than such effects, individually or in the aggregate, which have not had and would not reasonably be expected to have a Material Adverse Effect on the Company or any of its Subsidiaries.

(o)    Foreign Corrupt Practices.  Neither the Company, the Company’s subsidiary or any director, officer, agent, employee, nor any other person acting for or on behalf of the foregoing (individually and collectively, a “Company Affiliate”) have violated the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), or any other applicable anti-bribery or anti-corruption laws, nor has any Company Affiliate offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised to give, or authorized the giving of anything of value, to any officer, employee or 

any other person acting in an official capacity for any Governmental Entity to any political party or official thereof or to any candidate for political office (individually and collectively, a “Government Official”) or to any person under circumstances where such Company Affiliate knew or was aware of a high probability that all or a portion of such money or thing of value would be offered, given or promised, directly or indirectly, to any Government Official, for the purpose of:

(ii)    (A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing such Government Official to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing such Government Official to influence or affect any act or decision of any Governmental Entity, or

(iii)    assisting the Company or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company or its Subsidiaries.

(p)    Sarbanes-Oxley Act.  The Company and each Subsidiary is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002, as amended, and any and all applicable rules and regulations promulgated by the SEC thereunder.

(q)    Transactions With Affiliates.  Except as disclosed in the SEC Documents, no current or former employee, partner, director, officer or stockholder (direct or indirect) of the Company or its Subsidiaries, or any associate, or, to the knowledge of the Company, any affiliate of any thereof, or any relative with a relationship no more remote than first cousin of any of the foregoing, is presently, or has ever been, (i) a party to any transaction with the Company or its Subsidiaries (including any contract, agreement or other arrangement providing for the furnishing of services by, or rental of real or personal property from, or otherwise requiring payments to, any such director, officer or stockholder or such associate or affiliate or relative Subsidiaries (other than for ordinary course services as employees, officers or directors of the Company or any of its Subsidiaries)) or (ii) the direct or indirect owner of an interest in any corporation, firm, association or business organization which is a competitor, supplier or customer of the Company or its Subsidiaries (except for a passive investment (direct or indirect) in less than 5% of the common stock of a company whose securities are traded on or quoted through an Eligible Market (as defined in the Notes)), nor does any such Person receive income from any source other than the Company or its Subsidiaries which relates to the business of the Company or its Subsidiaries or should properly accrue to the Company or its Subsidiaries.  No employee, officer, stockholder or director of the Company or any of its Subsidiaries or member of his or her immediate family is indebted to the Company or its Subsidiaries, as the case may be, nor is the Company or any of its Subsidiaries indebted (or committed to make loans or extend or guarantee credit) to any of them, other than (i) for payment of salary for services rendered, (ii) reimbursement for reasonable expenses incurred on behalf of the Company, and (iii) for other standard employee benefits made generally available to all employees or executives (including stock option agreements outstanding under any stock option plan approved by the Board of Directors of the Company).

(r)    Equity Capitalization.  

(i)    Definitions:  

(A)      “Common Stock” means (x) the Company’s shares of common stock, $0.0001 par value per share, and (y) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.  

(B)       “Preferred Stock” means (x) the Company’s blank check preferred stock, $0.0001 par value per share, the terms of which may be designated by the board of directors of the Company in a certificate of designations and (y) any capital stock into which such preferred stock shall have been changed or any share capital resulting from a reclassification of such preferred stock (other than a conversion of such preferred stock into Common Stock in accordance with the terms of such certificate of designations).  

(ii)    Authorized and Outstanding Capital Stock.  As of the date hereof, the authorized capital stock of the Company consists of (A) 190,000,000 shares of Common Stock, of which, 111,217,784 are issued and outstanding and 43,388,629 shares are reserved for issuance pursuant to Convertible Securities (as defined below) (other than the Notes) exercisable or exchangeable for, or convertible into, shares of Common Stock and (B) 10,000,000 shares of Preferred Stock, none of which are issued and outstanding.  0 shares of Common Stock are held in the treasury of the Company.  “Convertible Securities” means any capital stock or other security of the Company or any of its Subsidiaries that is at any time and under any circumstances directly or indirectly convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any capital stock or other security of the Company (including, without limitation, Common Stock) or any of its Subsidiaries.

(iii)    Valid Issuance; Available Shares; Affiliates.  All of such outstanding shares are duly authorized and have been, or upon issuance will be, validly issued and are fully paid and nonassessable.  Schedule 3(r)(iii) sets forth the number of shares of Common Stock that are (A) reserved for issuance pursuant to Convertible Securities (as defined below) (other than the Notes) and (B) that are, as of the date hereof, owned by Persons who are “affiliates” (as defined in Rule 405 of the 1933 Act and calculated based on the assumption that only officers, directors and holders of at least 10% of the Company’s issued and outstanding Common Stock are “affiliates” without conceding that any such Persons are “affiliates” for purposes of federal securities laws) of the Company or any of its Subsidiaries.  To the Company’s knowledge, other than Michael Mona, Jr., no Person owns 10% or more of the Company’s issued and outstanding shares of Common Stock (calculated based on the assumption that all Convertible Securities (as defined below), whether or not presently exercisable or convertible, have been fully exercised or converted (as the case may be) taking account of any limitations on exercise or conversion (including “blockers”) contained therein without conceding that such identified Person is a 10% stockholder for purposes of federal securities laws). 

(iv)    Existing Securities; Obligations.  Except as disclosed in the SEC Documents: (A) none of the Company’s or any Subsidiary’s shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens suffered or permitted by the Company or any Subsidiary; (B) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares, interests or capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of the Company or any of its Subsidiaries; (C) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except pursuant to the this Agreement); (D) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its 

Subsidiaries; (E) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; and (F) neither the Company nor any Subsidiary has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement.

(v)    Organizational Documents.  The Company has furnished to the Buyers true, correct and complete copies of the Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all Convertible Securities and the material rights of the holders thereof in respect thereto. 

(s)    Indebtedness and Other Contracts.  Neither the Company nor any of its Subsidiaries, (i) except as disclosed on Schedule 3(s), has any outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound, (ii) is a party to any contract, agreement or instrument, the violation of which, or default under which, by the other party(ies) to such contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) has any financing statements securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries; (iv) is in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, or (v) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect.  Neither the Company nor any of its Subsidiaries have any liabilities or obligations required to be disclosed in the SEC Documents which are not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company’s or its Subsidiaries’ respective businesses and which, individually or in the aggregate, do not or could not have a Material Adverse Effect.  For purposes of this Agreement:  (x) “Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation, “capital leases” in accordance with GAAP) (other than trade payables entered into in the ordinary course of business consistent with past practice), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; (y) “Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto and (z) “Person” means an individual, a limited liability 

company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any Governmental Entity or any department or agency thereof.

(t)    Litigation.  There is no action, suit, arbitration, proceeding, inquiry or investigation before or by the Principal Market, any court, public board, other Governmental Entity, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, the Common Stock or any of the Company’s or its Subsidiaries’ officers or directors, whether of a civil or criminal nature or otherwise, in their capacities as such, except as set forth in Schedule 3(t).  No director, officer or employee of the Company or any of its subsidiaries has willfully violated 18 U.S.C. §1519 or engaged in spoliation in reasonable anticipation of litigation.  Without limitation of the foregoing, there has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or any current or former director or officer of the Company or any of its Subsidiaries.  The SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the 1933 Act or the 1934 Act, including, without limitation, the Registration Statement.  After reasonable inquiry of its employees, the Company is not aware of any fact which might result in or form the basis for any such action, suit, arbitration, investigation, inquiry or other proceeding.  Neither the Company nor any of its Subsidiaries is subject to any order, writ, judgment, injunction, decree, determination or award of any Governmental Entity.

(u)    Insurance.  The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged.  Neither the Company nor any such Subsidiary has been refused any insurance coverage sought or applied for, and neither the Company nor any such Subsidiary has any reason to believe that it will be unable to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

(v)    Employee Relations.  Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any member of a union.  The Company and its Subsidiaries believe that their relations with their employees are good.  No executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company or any of its Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer’s employment with the Company or any such Subsidiary.  Except as set forth in the SEC Documents, No current (or, to the knowledge of the Company, former) executive officer or other key employee of the Company or any of its Subsidiaries is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer or other key employee (as the case may be) does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters.  The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

(w)    Title. 

(i)    Real Property.  Each of the Company and its Subsidiaries holds good title to all real property, leases in real property, facilities or other interests in real property owned or held by the Company or any of its Subsidiaries (the “Real Property”) owned by the Company or any of its 

Subsidiaries (as applicable).  The Real Property is free and clear of all Liens and is not subject to any rights of way, building use restrictions, exceptions, variances, reservations, or limitations of any nature except for (a) Liens for current taxes not yet due and (b) zoning laws and other land use restrictions that do not impair the present or anticipated use of the property subject thereto.  Any Real Property held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company or any of its Subsidiaries.  

(ii)    Fixtures and Equipment.  Each of the Company and its Subsidiaries (as applicable) has good title to, or a valid leasehold interest in, the tangible personal property, equipment, improvements, fixtures, and other personal property and appurtenances that are used by the Company or its Subsidiary in connection with the conduct of its business (the “Fixtures and Equipment”).  The Fixtures and Equipment are structurally sound, are in good operating condition and repair, are adequate for the uses to which they are being put, are not in need of maintenance or repairs except for ordinary, routine maintenance and repairs and are sufficient for the conduct of the Company’s and/or its Subsidiaries’ businesses (as applicable) in the manner as conducted prior to such Closing.  Each of the Company and its Subsidiaries owns all of its Fixtures and Equipment free and clear of all Liens except for (a) liens for current taxes not yet due and (b) zoning laws and other land use restrictions that do not impair the present or anticipated use of the property subject thereto.

(x)    Intellectual Property Rights.  The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications and registrations therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses as now conducted and presently proposed to be conducted.  Each of patents owned by the Company or any of its Subsidiaries is listed on Schedule 3(x)(i).  Except as set forth in Schedule 3(x)(ii), none of the Company’s Intellectual Property Rights have expired or terminated or have been abandoned or are expected to expire or terminate or are expected to be abandoned, within three years from the date of this Agreement.  The Company does not have any knowledge of any infringement by the Company or its Subsidiaries of Intellectual Property Rights of others.  There is no claim, action or proceeding being made or brought, or to the knowledge of the Company or any of its Subsidiaries, being threatened, against the Company or any of its Subsidiaries regarding its Intellectual Property Rights.  Neither the Company nor any of its Subsidiaries is aware of any facts or circumstances which might give rise to any of the foregoing infringements or claims, actions or proceedings.  The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their Intellectual Property Rights.

(y)    Environmental Laws.  (i) The Company and its Subsidiaries (A) are in compliance with any and all Environmental Laws (as defined below), (B) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (C) are in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (A), (B) and (C), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.  The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, 

codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

(ii)    No Hazardous Materials:
(A)    have been disposed of or otherwise released from any Real Property of the Company or any of its Subsidiaries in violation of any Environmental Laws; or

(B)    are present on, over, beneath, in or upon any Real Property or any portion thereof in quantities that would constitute a violation of any Environmental Laws.  No prior use by the Company or any of its Subsidiaries of any Real Property has occurred that violates any Environmental Laws, which violation would have a material adverse effect on the business of the Company or any of its Subsidiaries.

(iii)    Neither the Company nor any of its Subsidiaries knows of any other person who or entity which has stored, treated, recycled, disposed of or otherwise located on any Real Property any Hazardous Materials, including, without limitation, such substances as asbestos and polychlorinated biphenyls.

(iv)    None of the Real Properties are on any federal or state “Superfund” list or Liability Information System (“CERCLIS”) list or any state environmental agency list of sites under consideration for CERCLIS, nor subject to any environmental related Liens.

(z)    Subsidiary Rights.  The Company or one of its Subsidiaries has the unrestricted right to vote, and (subject to limitations imposed by applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company or such Subsidiary.

(aa)    Tax Status.  The Company and each of its Subsidiaries (i) has timely made or filed all foreign, federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply.  There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company and its Subsidiaries know of no basis for any such claim.  The Company is not operated in such a manner as to qualify as a passive foreign investment company, as defined in Section 1297 of the Code.  The net operating loss carryforwards (“NOLs”) for United States federal income tax purposes of the consolidated group of which the Company is the common parent, if any, shall not be adversely effected by the transactions contemplated hereby.  The transactions contemplated hereby do not constitute an “ownership change” within the meaning of Section 382 of the Code, thereby preserving the Company’s ability to utilize such NOLs.

(bb)    Internal Accounting and Disclosure Controls.  The Company and each of its Subsidiaries maintains internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the 1934 Act) that is effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, including that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the 

existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference.  The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the 1934 Act) that are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated to the Company’s management, including its principal executive officer or officers and its principal financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure.  Neither the Company nor any of its Subsidiaries has received any notice or correspondence from any accountant, Governmental Entity or other Person relating to any potential material weakness or significant deficiency in any part of the internal controls over financial reporting of the Company or any of its Subsidiaries.

(cc)    Off Balance Sheet Arrangements.  There is no transaction, arrangement, or other relationship between the Company or any of its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.

(dd)    Investment Company Status.  The Company is not, and upon consummation of the sale of the Securities will not be, an “investment company,” an affiliate of an “investment company,” a company controlled by an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company” as such terms are defined in the Investment Company Act of 1940, as amended.

(ee)    Acknowledgement Regarding Buyers’ Trading Activity.  It is understood and acknowledged by the Company that (i) following the public disclosure of the transactions contemplated by the Transaction Documents, in accordance with the terms thereof, none of the Buyers have been asked by the Company or any of its Subsidiaries to agree, nor has any Buyer agreed with the Company or any of its Subsidiaries, to desist from effecting any transactions in or with respect to (including, without limitation, purchasing or selling, long and/or short) any securities of the Company, or “derivative” securities based on securities issued by the Company or to hold any of the Securities for any specified term; (ii) any Buyer, and counterparties in “derivative” transactions to which any such Buyer is a party, directly or indirectly, presently may have a “short” position in the Common Stock which was established prior to such Buyer’s knowledge of the transactions contemplated by the Transaction Documents; (iii) each Buyer shall not be deemed to have any affiliation with or control over any arm’s length counterparty in any “derivative” transaction; and (iv) each Buyer may rely on the Company’s obligation to timely deliver shares of Common Stock upon conversion or exchange, as applicable, of the Securities as and when required pursuant to the Transaction Documents for purposes of effecting trading in the Common Stock of the Company.  The Company further understands and acknowledges that following the public disclosure of the transactions contemplated by the Transaction Documents pursuant to the Press Release (as defined below) one or more Buyers may engage in hedging and/or trading activities (including, without limitation, the location and/or reservation of borrowable shares of Common Stock) at various times during the period that the Securities are outstanding, including, without limitation, during the periods that the value and/or number of the Conversion Shares deliverable with respect to the Securities are being determined and such hedging and/or trading activities (including, without limitation, the location and/or reservation of borrowable shares of Common Stock), if any, can reduce the value of the existing stockholders’ equity interest in the Company both at and after the time the hedging and/or trading activities are being conducted.  The Company acknowledges that such aforementioned hedging and/or trading activities do not constitute a breach of this Agreement, the Notes or any other Transaction Document or any of the documents executed in connection herewith or therewith.

(ff)    Manipulation of Price.  Neither the Company nor any of its Subsidiaries has, and, to the knowledge of the Company, no Person acting on their behalf has, directly or indirectly, (i) taken any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company or any of its Subsidiaries to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company or any of its Subsidiaries or (iv) paid or agreed to pay any Person for research services with respect to any securities of the Company or any of its Subsidiaries.

(gg)    U.S. Real Property Holding Corporation.  Neither the Company nor any of its Subsidiaries is, or has ever been, and so long as any of the Securities are held by any of the Buyers, shall become, a U.S. real property holding corporation within the meaning of Section 897 of the Code, and the Company and each Subsidiary shall so certify upon any Buyer’s request.

(hh)    Registration Eligibility.  The Company is eligible to register the Underlying Securities (as defined below) for resale by the Buyers using Form S-3 promulgated under the 1933 Act.

(ii)    Transfer Taxes.  On such Closing Date, all stock transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the issuance, sale and transfer of the Securities to be sold to each Buyer hereunder will be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with. 

(jj)    Bank Holding Company Act.  Neither the Company nor any of its Subsidiaries is subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”).  Neither the Company nor any of its Subsidiaries or affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.  Neither the Company nor any of its Subsidiaries or affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. 

(kk)    Shell Company Status.  The Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i).

(ll)    Illegal or Unauthorized Payments; Political Contributions.  Neither the Company nor any of its Subsidiaries nor, to the best of the Company’s knowledge (after reasonable inquiry of its officers and directors), any of the officers, directors, employees, agents or other representatives of the Company or any of its Subsidiaries or any other business entity or enterprise with which the Company or any Subsidiary is or has been affiliated or associated, has, directly or indirectly, made or authorized any payment, contribution or gift of money, property, or services, whether or not in contravention of applicable law, (i) as a kickback or bribe to any Person or (ii) to any political organization, or the holder of or any aspirant to any elective or appointive public office except for personal political contributions not involving the direct or indirect use of funds of the Company or any of its Subsidiaries.

(mm)    Money Laundering.  The Company and its Subsidiaries are in compliance with, and have not previously violated, the USA Patriot Act of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, without limitation, the laws, regulations and Executive Orders and sanctions programs administered by the U.S. Office of Foreign Assets Control, including, but not limited, to (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg. 49079 (2001)); and (ii) any regulations contained in 31 CFR, Subtitle B, Chapter V.

(nn)    Management.  Except as set forth in Schedule 3(nn) hereto, during the past five year period, no current or former officer or director or, to the knowledge of the Company, no current ten percent (10%) or greater stockholder of the Company or any of its Subsidiaries has been the subject of:
(i)    a petition under bankruptcy laws or any other insolvency or moratorium law or the appointment by a court of a receiver, fiscal agent or similar officer for such Person, or any partnership in which such person was a general partner at or within two years before the filing of such petition or such appointment, or any corporation or business association of which such person was an executive officer at or within two years before the time of the filing of such petition or such appointment;

(ii)    a conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations that do not relate to driving while intoxicated or driving under the influence);

(iii)    any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining any such person from, or otherwise limiting, the following activities:

(1)    Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the United States Commodity Futures Trading Commission or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;

(2)    Engaging in any particular type of business practice; or

(3)    Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of securities laws or commodities laws;

(iv)    any order, judgment or decree, not subsequently reversed, suspended or vacated, of any authority barring, suspending or otherwise limiting for more than sixty (60) days the right of any such person to engage in any activity described in the preceding sub paragraph, or to be associated with persons engaged in any such activity;

(v)    a finding by a court of competent jurisdiction in a civil action or by the SEC or other authority to have violated any securities law, regulation or decree and the judgment in such civil action or finding by the SEC or any other authority has not been subsequently reversed, suspended or vacated; or

(vi)    a finding by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any federal commodities law, and the judgment in such civil action or finding has not been subsequently reversed, suspended or vacated.

(oo)    Stock Option Plans.  Except as disclosed in the SEC Documents related to certain stock options granted outside of the Company’s stock option plan, each stock option granted by the Company was granted (i) in accordance with the terms of the applicable stock option plan of the Company and (ii) with an exercise price at least equal to the fair market value of the Common Stock on the date such stock 

option would be considered granted under GAAP and applicable law.  No stock option granted under the Company’s stock option plan has been backdated.  The Company has not knowingly granted, and there is no and has been no policy or practice of the Company to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

(pp)    No Disagreements with Accountants and Lawyers.  There are no material disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s ability to perform any of its obligations under any of the Transaction Documents.  In addition, on or prior to the date hereof, the Company had discussions with its accountants about its financial statements previously filed with the SEC.  Based on those discussions, the Company has no reason to believe that it will need to restate any such financial statements or any part thereof.

(qq)    No Additional Agreements.  The Company does not have any agreement or understanding with any Buyer with respect to the transactions contemplated by the Transaction Documents other than as specified in the Transaction Documents.

(rr)    Public Utility Holding Company Act.  None of the Company nor any of its Subsidiaries is a “holding company,” or an “affiliate” of a “holding company,” as such terms are defined in the Public Utility Holding Company Act of 2005.

(ss)    Federal Power Act.  None of the Company nor any of its Subsidiaries is subject to regulation as a “public utility” under the Federal Power Act, as amended.

(tt)    Ranking of Notes.  No Indebtedness of the Company, at such Closing, will be senior to, or pari passu with, the Notes in right of payment, whether with respect to payment or redemptions, interest, damages, upon liquidation or dissolution or otherwise (other than Indebtedness secured by Permitted Liens (as defined in the Notes)).

(uu)    Cybersecurity.  The Company and its Subsidiaries’ information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) are adequate for, and operate and perform in all material respects as required in connection with the operation of the business of the Company and its subsidiaries as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants that would reasonably be expected to have a Material Adverse Effect on the Company’s business.  The Company and its Subsidiaries have implemented and maintained commercially reasonable physical, technical and administrative controls, policies, procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and data, including “Personal Data,” used in connection with their businesses.  “Personal Data” means (i) a natural person’s name, street address, telephone number, e-mail address, photograph, social security number or tax identification number, driver’s license number, passport number, credit card number, bank information, or customer or account number; (ii) any information which would qualify as “personally identifying information” under the Federal Trade Commission Act, as amended; (iii) “personal data” as defined by the European Union General Data Protection Regulation (“GDPR”) (EU 2016/679); (iv) any information which would qualify as “protected health information” under the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act (collectively, “HIPAA”); and (v) any other piece of information that allows the identification of such natural person, or his or her family, or permits the collection or analysis of any data related to an identified person’s health or sexual orientation.  There have been no breaches, violations, outages or unauthorized uses of or accesses to same, except for 

those that have been remedied without material cost or liability or the duty to notify any other person or such, nor any incidents under internal review or investigations relating to the same except in each case, where such would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  The Company and its Subsidiaries are presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification except in each case, where such would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

(vv)    Compliance with Data Privacy Laws.  The Company and its Subsidiaries are, and at all prior times were, in compliance with all applicable state and federal data privacy and security laws and regulations, including without limitation HIPAA, and the Company and its Subsidiaries have taken commercially reasonable actions to prepare to comply with, and since May 25, 2018, have been and currently are in compliance with, the General Data Protection Regulation of the European Union (GDPR) (Regulation EU 2016/679) (collectively, the “Privacy Laws”) except in each case, where such would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  To ensure compliance with the Privacy Laws, the Company and its Subsidiaries have in place, comply with, and take appropriate steps reasonably designed to ensure compliance in all material respects with their policies and procedures relating to data privacy and security and the collection, storage, use, disclosure, handling, and analysis of Personal Data (the “Policies”).  The Company and its Subsidiaries have at all times made all disclosures to users or customers required by applicable laws and regulatory rules or requirements, and none of such disclosures made or contained in any Policy have, to the knowledge of the Company, been inaccurate or in violation of any applicable laws and regulatory rules or requirements in any material respect.  The Company further certifies that neither it nor any Subsidiary: (i) has received notice of any actual or potential liability under or relating to, or actual or potential violation of, any of the Privacy Laws, and has no knowledge of any event or condition that would reasonably be expected to result in any such notice; (ii) is currently conducting or paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to any Privacy Law; or (iii) is a party to any order, decree, or agreement that imposes any obligation or liability under any Privacy Law.

(ww)    Registration Rights.  Except as disclosed in the SEC Documents, no holder of securities of the Company has rights to the registration of any securities of the Company because of the filing of the Registration Statement or the issuance of the Securities hereunder that could expose the Company to material liability or any Buyer to any liability or that could impair the Company’s ability to consummate the issuance and sale of the Securities in the manner, and at the times, contemplated hereby, which rights have not been waived by the holder thereof as of the date hereof. 

(xx)    Compliance With FINRA Rule 5110.  At the time the Registration Statement was declared effective by the SEC, the Company had (i) a 1934 Act reporting history in excess of 36 months and (ii) a non-affiliate, public common float of at least $100 million and annual trading volume of at least three million shares.

(yy)    Qualification Under Trust Indenture Act.  Prior to any issuance of Notes hereunder, the Company shall qualify or cause or arrange for the Trustee to qualify the Indenture under the Trust Indenture Act of 1939, as amended (the “TIA”), and enter into any necessary supplemental indentures in connection therewith and, so long as the Notes remain outstanding, the Indenture shall be maintained in compliance with the TIA.

(zz)    Disclosure.  The Company confirms that neither it nor any other Person acting on its behalf has provided any of the Buyers or their agents or counsel with any information that constitutes or could reasonably be expected to constitute material, non-public information concerning the Company or any of 

its Subsidiaries, other than the existence of the transactions contemplated by this Agreement and the other Transaction Documents.  The Company understands and confirms that each of the Buyers will rely on the foregoing representations in effecting transactions in securities of the Company.  All disclosure provided to the Buyers regarding the Company and its Subsidiaries, their businesses and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf of the Company or any of its Subsidiaries is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.  All of the written information furnished after the date hereof by or on behalf of the Company or any of its Subsidiaries to each Buyer pursuant to or in connection with this Agreement and the other Transaction Documents, taken as a whole, will be true and correct in all material respects as of the date on which such information is so provided and will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.  Each press release issued by the Company or any of its Subsidiaries during the twelve (12) months preceding the date of this Agreement did not at the time of release 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 the light of the circumstances under which they are made, not misleading.  No event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, liabilities, prospects, operations (including results thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement by the Company but which has not been so publicly disclosed.  All financial projections and forecasts that have been prepared by or on behalf of the Company or any of its Subsidiaries and made available to you have been prepared in good faith based upon reasonable assumptions and represented, at the time each such financial projection or forecast was delivered to each Buyer, the Company’s best estimate of future financial performance (it being recognized that such financial projections or forecasts are not to be viewed as facts and that the actual results during the period or periods covered by any such financial projections or forecasts may differ from the projected or forecasted results).  The Company acknowledges and agrees that no Buyer makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 2.

4.    COVENANTS.

(a)    Best Efforts.  Each Buyer shall use its best efforts to timely satisfy each of the covenants hereunder and conditions to be satisfied by it as provided in Section 6 of this Agreement.  The Company shall use its best efforts to timely satisfy each of the covenants hereunder and conditions to be satisfied by it as provided in Section 7 of this Agreement.

(b)    Amendments to the Registration Statement; Prospectus Supplements; Free Writing Prospectuses.  

(i)    Amendments to the Registration Statement; Prospectus Supplements; Free Writing Prospectuses.  Except as provided in this Agreement and other than periodic reports required to be filed pursuant to the 1934 Act, the Company shall not file with the SEC any amendment to the Registration Statement that relates to the Buyer, this Agreement or any other Transaction Document or the transactions contemplated hereby or thereby or file with the SEC any Prospectus Supplement that relates to the Buyer, this Agreement or any other Transaction Document or the transactions contemplated hereby or thereby with respect to which (a) the Buyer shall not previously have been advised, (b) the Company shall not have given due consideration to any comments thereon received from the Buyer or its counsel, or (c) the Buyer shall reasonably object after being so advised, unless the Company reasonably has determined that it is necessary to amend the Registration Statement or make any supplement to the Prospectus to comply with the 

1933 Act or any other applicable law or regulation, in which case the Company shall promptly (but in no event later than 24 hours) so inform the Buyer, the Buyer shall be provided with a reasonable opportunity to review and comment upon any disclosure relating to the Buyer and the Company shall expeditiously furnish to the Buyer an electronic copy thereof.  In addition, for so long as, in the reasonable opinion of counsel for the Buyer, the Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the 1933 Act) is required to be delivered in connection with any acquisition or sale of Securities by the Buyer, the Company shall not file any Prospectus Supplement with respect to the Securities without delivering or making available a copy of such Prospectus Supplement, together with the Prospectus, to the Buyer promptly.

(ii)    The Company has not made, and agrees that unless it obtains the prior written consent of the Buyer it will not make, an offer relating to the Securities that would constitute an “issuer free writing prospectus” as defined in Rule 433 promulgated under the 1933 Act (an “Issuer Free Writing Prospectus”) or that would otherwise constitute a “free writing prospectus” as defined in Rule 405 promulgated under the 1933 Act (a “Free Writing Prospectus”) required to be filed by the Company or the Buyer with the SEC or retained by the Company or the Buyer under Rule 433 under the 1933 Act.  The Buyer has not made, and agrees that unless it obtains the prior written consent of the Company it will not make, an offer relating to the Securities that would constitute a Free Writing Prospectus required to be filed by the Company with the SEC or retained by the Company under Rule 433 under the 1933 Act.  Any such Issuer Free Writing Prospectus or other Free Writing Prospectus consented to by the Buyer or the Company is referred to in this Agreement as a “Permitted Free Writing Prospectus.”  The Company agrees that (x) it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus and (y) it has complied and will comply, as the case may be, with the requirements of Rules 164 and 433 under the 1933 Act applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the SEC, legending and record keeping.

(c)    Prospectus Delivery.  Immediately prior to execution of this Agreement, the Company shall have delivered to the Buyer, and as soon as practicable after execution of this Agreement the Company shall file, Prospectus Supplements with respect to the Securities to be issued on the applicable Closing Date, as required under, and in conformity with, the 1933 Act, including Rule 424(b) thereunder.  The Company shall provide the Buyer a reasonable opportunity to comment on a draft of each Prospectus Supplement and any Issuer Free Writing Prospectus, shall give due consideration to all such comments and, subject to the provisions of Section 4(b) hereof, shall deliver or make available to the Buyer, without charge, an electronic copy of each form of Prospectus Supplement, together with the Prospectus, and any Permitted Free Writing Prospectus on such Closing Date.  The Company consents to the use of the Prospectus (and of any Prospectus Supplements thereto) in accordance with the provisions of the 1933 Act and with the securities or “blue sky” laws of the jurisdictions in which the Securities may be sold by the Buyer, in connection with the offering and sale of the Securities and for such period of time thereafter as the Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the 1933 Act) is required by the 1933 Act to be delivered in connection with sales of the Securities.  If during such period of time any event shall occur that in the judgment of the Company and its counsel is required to be set forth in the Registration Statement or the Prospectus or any Permitted Free Writing Prospectus or should be set forth therein in order to make the statements made therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading, or if it is necessary to amend the Registration Statement or supplement or amend the Prospectus or any Permitted Free Writing Prospectus to comply with the 1933 Act or any other applicable law or regulation, the Company shall forthwith prepare and, subject to Section 4(b) above, file with the SEC an appropriate amendment to the Registration Statement or Prospectus Supplement to the Prospectus (or supplement to the Permitted Free Writing Prospectus) and shall expeditiously furnish or make available to the Buyer an electronic copy thereof. 

(d)    Stop Orders.  The Company shall advise the Buyer promptly (but in no event later than 24 hours) and shall confirm such advice in writing: (i) of the Company’s receipt of notice of any request by the SEC for amendment of or a supplement to the Registration Statement, the Prospectus, any Permitted Free Writing Prospectus or for any additional information; (ii) of the Company’s receipt of notice of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or prohibiting or suspending the use of the Prospectus or any Prospectus Supplement, or of the suspension of qualification of the Securities for offering or sale in any jurisdiction, or the initiation or contemplated initiation of any proceeding for such purpose; (iii) of the Company becoming aware of the happening of any event, which makes any statement of a material fact made in the Registration Statement, the Prospectus or any Permitted Free Writing Prospectus untrue or which requires the making of any additions to or changes to the statements then made in the Registration Statement, the Prospectus or any Permitted Free Writing Prospectus in order to state a material fact required by the 1933 Act to be stated therein or necessary in order to make the statements then made therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading, or of the necessity to amend the Registration Statement or supplement the Prospectus or any Permitted Free Writing Prospectus to comply with the 1933 Act or any other law or (iv) if at any time following the date hereof the Registration Statement is not effective or is not otherwise available for the issuance of the Securities or any Prospectus contained therein is not available for use for any other reason.  Thereafter, the Company shall promptly notify such holders when the Registration Statement, the Prospectus, any Permitted Free Writing Prospectus and/or any amendment or supplement thereto, as applicable, is effective and available for the issuance of the Securities.  If at any time the SEC shall issue any stop order suspending the effectiveness of the Registration Statement or prohibiting or suspending the use of the Prospectus or any Prospectus Supplement, the Company shall use best efforts to obtain the withdrawal of such order at the earliest possible time. 

(e)    Blue Sky.  The Company shall, on or before the applicable Closing Date, take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to, qualify the Securities for sale to the Buyers at such Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyers on or prior to such Closing Date. Without limiting any other obligation of the Company under this Agreement, the Company shall timely make all filings and reports relating to the offer and sale of the Securities required under all applicable securities laws (including, without limitation, all applicable federal securities laws and all applicable “Blue Sky” laws), and the Company shall comply with all applicable foreign, federal, state and local laws, statutes, rules, regulations and the like relating to the offering and sale of the Securities to the Buyers. 

(f)    Reporting Status.  Until the date on which the Buyers shall have sold all of the Securities (the “Reporting Period”), the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer require or otherwise permit such termination.

(g)    Use of Proceeds.  The Company will use the proceeds from the sale of the Securities as described in the Prospectus Supplement, but not, directly or indirectly, for (i) except as set forth on Schedule 4(g), the satisfaction of any indebtedness of the Company or any of its Subsidiaries, (ii) the redemption or repurchase of any securities of the Company or any of its Subsidiaries, or (iii) the settlement of any outstanding litigation.

(h)    Financial Information.  The Company agrees to send the following to each holder of Notes (each, an “Investor”) during the Reporting Period (i) unless the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system, within one (1) Business Day after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K and Quarterly Reports on Form 

10-Q, any interim reports or any consolidated balance sheets, income statements, stockholders’ equity statements and/or cash flow statements for any period other than annual, any Current Reports on Form 8-K and any registration statements (other than on Form S-8) or amendments filed pursuant to the 1933 Act, (ii) unless the following are either filed with the SEC through EDGAR or are otherwise widely disseminated via a recognized news release service (such as PR Newswire), on the same day as the release thereof, e-mail copies of all press releases issued by the Company or any of its Subsidiaries and (iii) unless the following are filed with the SEC through EDGAR, copies of any notices and other information made available or given to the stockholders of the Company generally, contemporaneously with the making available or giving thereof to the stockholders.

(i)    Listing.  The Company shall promptly secure the listing or designation for quotation (as the case may be) of all of the Underlying Securities (as defined below) upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed or designated for quotation (as the case may be) (subject to official notice of issuance) and shall maintain such listing or designation for quotation (as the case may be) of all Underlying Securities from time to time issuable under the terms of the Transaction Documents on such national securities exchange or automated quotation system.  The Company shall maintain the Common Stock’s listing or authorization for quotation (as the case may be) on the Principal Market, The New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market or the Nasdaq Global Select Market (each, an “Eligible Market”).  Neither the Company nor any of its Subsidiaries shall take any action which could be reasonably expected to result in the delisting or suspension of the Common Stock on an Eligible Market.  The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(i).  “Underlying Securities” means (i) the Conversion Shares, and (ii) any capital stock of the Company issued or issuable with respect to the Conversion Shares, the Indenture or the Notes respectively, including, without limitation, (1) as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise and (2) shares of capital stock of the Company into which the shares of Common Stock are converted or exchanged and shares of capital stock of a Successor Entity (as defined in the Notes) into which the shares of Common Stock are converted or exchanged, in each case, without regard to any limitations on conversion of the Notes.

(j)    Fees.  The Company shall reimburse the lead Buyer for all costs and expenses incurred by it or its affiliates in connection with the structuring, documentation, negotiation and closing of the transactions contemplated by the Transaction Documents (including, without limitation, as applicable, all reasonable legal fees of outside counsel and disbursements of Kelley Drye & Warren LLP, counsel to the lead Buyer, any other reasonable fees and expenses in connection with the structuring, documentation, negotiation and closing of the transactions contemplated by the Transaction Documents and due diligence and regulatory filings in connection therewith) (the “Transaction Expenses”) and shall be withheld by the lead Buyer from its applicable Purchase Price at the applicable Closing, less any amounts previously paid by the Company to Kelley Drye & Warren LLP; provided, that the Company shall promptly reimburse Kelley Drye & Warren LLP on demand for all Transaction Expenses not so reimbursed through such withholding at such Closing.  The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, any fees and expenses of the Trustee (including, without limitation, the fees and expenses of any legal counsel to the Trustee), transfer agent fees, DTC (as defined below) fees or broker’s commissions (other than for Persons engaged by any Buyer) relating to or arising out of the transactions contemplated hereby.  The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorneys’ fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment.  Except as otherwise set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the sale of the Securities to the Buyers.

(k)    Pledge of Securities.  Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and agrees that the Securities may be pledged by an Investor in 

connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities.  The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by a Buyer.

(l)    Disclosure of Transactions and Other Material Information.  

(i)    Disclosure of Transaction.  The Company shall, on or before 9:00 a.m., New York time, on the first (1st) Business Day after the date of this Agreement, issue a press release (the “Press Release”) reasonably acceptable to the Buyers disclosing all the material terms of the transactions contemplated by the Transaction Documents.  On or before 5:30 p.m., New York time, on the first (1st) Business Day after the date of this Agreement, the Company shall file a Current Report on Form 8-K describing all the material terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching all the material Transaction Documents (including, without limitation, this Agreement (and all schedules to this Agreement), the form of Indenture, the form of Supplemental Indentures, and the form of Notes) (including all attachments, the “Initial 8-K Filing”).  The Company shall, on or before 9:30 a.m., New York time, on the first (1st) Business Day after the Company delivers an Additional Closing Notice to any of the Buyers, file a Current Report on Form 8 K (each, an “Additional 8-K Filing”, and together with the Initial 8-K Filing, the “8-K Filings”) reasonably acceptable to the Buyers, disclosing that the Company has elected to deliver an Additional Closing Notice to the Buyers and attaching such Additional Closing Notice and all material Transaction Documents with respect to such Additional Closing (to the extent not previously included in a filing with the SEC).  From and after (I) solely with respect to the Initial Closing, the issuance of the applicable Press Release or (II) solely with respect to each Additional Closing, the filing of the Additional 8-K with respect to such Additional Closing, as applicable, the Company shall have disclosed all material, non-public information (if any) provided to any of the Buyers by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.  In addition, effective upon (I) solely with respect to the Initial Closing, the issuance of the applicable Press Release or (II) solely with respect to each Additional Closing, the filing of the Additional 8-K with respect to such Additional Closing, as applicable, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand, shall terminate.  

(ii)    Limitations on Disclosure.  Except with respect to the delivery of an Additional Closing Notice, the Company shall not, and the Company shall cause each of its Subsidiaries and each of its and their respective officers, directors, employees and agents not to, provide any Buyer with any material, non-public information regarding the Company or any of its Subsidiaries from and after the date hereof without the express prior written consent of such Buyer (which may be granted or withheld in such Buyer’s sole discretion).  In the event of a breach of any of the foregoing covenants, including, without limitation, Section 4(q) of this Agreement, or any of the covenants or agreements contained in any other Transaction Document, by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees and agents (as determined in the reasonable good faith judgment of such Buyer), in addition to any other remedy provided herein or in the Transaction Documents, such Buyer shall have the right to make a public disclosure, in the form of a press release, public advertisement or otherwise, of such breach or such material, non-public information, as applicable, without the prior approval by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees or agents.  No Buyer shall have any liability to the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees, affiliates, stockholders or agents, for any such disclosure.  To the 

extent that the Company delivers any material, non-public information to a Buyer without such Buyer’s consent, the Company hereby covenants and agrees that such Buyer shall not have any duty of confidentiality with respect to, or a duty not to trade on the basis of, such material, non-public information.  Subject to the foregoing, neither the Company, its Subsidiaries nor any Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, the Company shall be entitled, without the prior approval of any Buyer, to make the Press Release and any press release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filings and contemporaneously therewith and (ii) as is required by applicable law and regulations (provided that in the case of clause (i) each Buyer shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release).  Without the prior written consent of the applicable Buyer (which may be granted or withheld in such Buyer’s sole discretion), the Company shall not (and shall cause each of its Subsidiaries and affiliates to not) disclose the name of such Buyer in any filing, announcement, release or otherwise.  Notwithstanding anything contained in this Agreement to the contrary and without implication that the contrary would otherwise be true, the Company expressly acknowledges and agrees that no Buyer shall have (unless expressly agreed to by a particular Buyer after the date hereof in a written definitive and binding agreement executed by the Company and such particular Buyer (it being understood and agreed that no Buyer may bind any other Buyer with respect thereto)), any duty of confidentiality with respect to, or a duty not to trade on the basis of, any material, non-public information regarding the Company or any of its Subsidiaries.

(iii)    Other Confidential Information.  Disclosure Failures; Disclosure Delay Payments.  In addition to other remedies set forth in this Section 4(l), and without limiting anything set forth in any other Transaction Document, at any time after the Initial Closing Date if the Company, any of its Subsidiaries, or any of their respective officers, directors, employees or agents, provides any Buyer with material non-public information relating to the Company or any of its Subsidiaries (each, the “Confidential Information”), the Company shall, on or prior to the applicable Required Disclosure Date (as defined below), publicly disclose such Confidential Information on a Current Report on Form 8-K or otherwise (each, a “Disclosure”).  From and after such Disclosure, the Company shall have disclosed all Confidential Information provided to such Buyer by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.  In addition, effective upon such Disclosure, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their affiliates, on the other hand, shall terminate.  In the event that the Company fails to effect such Disclosure on or prior to the Required Disclosure Date and such Buyer shall have possessed Confidential Information for at least ten (10) consecutive Trading Days (as defined in the Notes) (each, a “Disclosure Failure”), then, as partial relief for the damages to such Buyer by reason of any such delay in, or reduction of, its ability to buy or sell shares of Common Stock after such Required Disclosure Date (which remedy shall not be exclusive of any other remedies available at law or in equity), the Company shall pay to such Buyer an amount in cash equal to the greater of (I) two percent (2%) of the aggregate Purchase Price and (II) the applicable Disclosure Restitution Amount, on each of the following dates (each, a “Disclosure Delay Payment Date”): (i) on the date of such Disclosure Failure and (ii) on every thirty (30) day anniversary such Disclosure Failure until the earlier of (x) the date such Disclosure Failure is cured and (y) such time as all such non-public information provided to such Buyer shall cease to be Confidential Information (as evidenced by a certificate, duly executed by an authorized officer of the Company to the foregoing effect) (such earlier date, as applicable, a “Disclosure Cure Date”).  Following the initial Disclosure Delay Payment for any particular Disclosure Failure, without limiting the foregoing, if a Disclosure Cure Date occurs prior to any thirty (30) 

day anniversary of such Disclosure Failure, then such Disclosure Delay Payment (prorated for such partial month) shall be made on the second (2nd) Business Day after such Disclosure Cure Date.  The payments to which an Investor shall be entitled pursuant to this Section 4(l)(iii) are referred to herein as “Disclosure Delay Payments.” In the event the Company fails to make Disclosure Delay Payments in a timely manner in accordance with the foregoing, such Disclosure Delay Payments shall bear interest at the rate of two percent (2%) per month (prorated for partial months) until paid in full. 

(iv)    For the purpose of this Agreement the following definitions shall apply: 

(1)    “Disclosure Failure Market Price” means, as of any Disclosure Delay Payment Date, the price computed as the quotient of (I) the sum of the five (5) highest VWAPs (as defined in the Notes) of the Common Stock during the applicable Disclosure Restitution Period (as defined below), divided by (II) five (5) (such period, the “Disclosure Failure Measuring Period”).  All such determinations to be appropriately adjusted for any share dividend, share split, share combination, reclassification or similar transaction that proportionately decreases or increases the Common Stock during such Disclosure Failure Measuring Period.

(2)    “Disclosure Restitution Amount” means, as of any Disclosure Delay Payment Date, the product of (x) difference of (I) the Disclosure Failure Market Price less (II) the lowest purchase price, per share of Common Stock, of any Common Stock issued or issuable to such Buyer pursuant to this Agreement or any other Transaction Documents, multiplied by (y) 10% of the aggregate daily dollar trading volume (as reported on Bloomberg (as defined in the Notes)) of the Common Stock on the Principal Market for each Trading Day either (1) with respect to the initial Disclosure Delay Payment Date, during the period commencing on the applicable Required Disclosure Date through and including the Trading Day immediately prior to the initial Disclosure Delay Payment Date or (2) with respect to each other Disclosure Delay Payment Date, during the period commencing the immediately preceding Disclosure Delay Payment Date through and including the Trading Day immediately prior to such applicable Disclosure Delay Payment Date (such applicable period, the “Disclosure Restitution Period”).

(3)    “Required Disclosure Date” means (x) if such Buyer authorized the delivery of such Confidential Information, either (I) if the Company and such Buyer have mutually agreed upon a date (as evidenced by an e-mail or other writing) of Disclosure of such Confidential Information, such agreed upon date or (II) otherwise, the seventh (7th) calendar day after the date such Buyer first received any Confidential Information or (y) if such Buyer did not authorize the delivery of such Confidential Information, the first (1st) Business Day after such Buyer’s receipt of such Confidential Information.

(m)    Additional Issuance of Securities.  So long as any Buyer beneficially owns any Securities, the Company will not, without the prior written consent of the Required Holders issue any Notes (other than to the Buyers as contemplated hereby) and the Company shall not issue any other securities that would cause a breach or default under the Notes.  The Company agrees that for the period commencing on the date hereof and ending on the date immediately following the 90th calendar day after the Additional Closing Expiration Date (the “Restricted Period”), neither the Company nor any of its Subsidiaries shall directly or indirectly:

(i)    file a registration statement under the 1933 Act relating to securities that are not the Underlying Securities (other than a registration statement on Form S-8 or such supplements or amendments to registration statements that are outstanding and have been declared effective by the SEC as of the date hereof (solely to the extent necessary to keep such registration statements effective and available and not with respect to any Subsequent Placement)); 

(ii)    amend or modify (whether by an amendment, waiver, exchange of securities, or otherwise) any of the Company’s warrants to purchase Common Stock that are outstanding as of the date hereof; or

(iii)    issue, offer, sell, grant any option or right to purchase, or otherwise dispose of (or announce any issuance, offer, sale, grant of any option or right to purchase or other disposition of) any equity security or any equity-linked or related security (including, without limitation, any “equity security” (as that term is defined under Rule 405 promulgated under the 1933 Act)), any Convertible Securities (as defined below), any debt, any preferred stock or any purchase rights (any such issuance, offer, sale, grant, disposition or announcement (whether occurring during the Restricted Period or at any time thereafter) is referred to as a “Subsequent Placement”).  Notwithstanding the foregoing, this Section 4(m) shall not apply in respect of the issuance of (A) shares of Common Stock or standard options to purchase Common Stock to directors, officers or employees of the Company in their capacity as such pursuant to an Approved Stock Plan (as defined below), provided that (x) all such issuances (taking into account the shares of Common Stock issuable upon exercise of such options) after the date hereof pursuant to this clause (A) do not, in the aggregate, exceed more than 5% of the Common Stock issued and outstanding immediately prior to the date hereof and (y) the exercise price of any such options is not lowered, none of such options are amended to increase the number of shares issuable thereunder and none of the terms or conditions of any such options are otherwise materially changed in any manner that adversely affects any of the Buyers; (B) shares of Common Stock issued upon the conversion or exercise of Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (A) above) issued prior to the date hereof, provided that the conversion, exercise or other method of issuance (as the case may be) of any such Convertible Security is made solely pursuant to the conversion, exercise or other method of issuance (as the case may be) provisions of such Convertible Security that were in effect on the date immediately prior to the date of this Agreement, the conversion, exercise or issuance price of any such Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (A) above) is not lowered, none of such Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (A) above) are amended to increase the number of shares issuable thereunder and none of the terms or conditions of any such Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (A) above) are otherwise materially changed in any manner that adversely affects any of the Buyers; (C) any shares of Common Stock issued or issuable in connection with any bona fide strategic or commercial alliances, acquisitions, mergers, licensing arrangements, and strategic partnerships, provided, that (x) the primary purpose of such issuance is not to raise capital as reasonably determined, and (y) the purchaser or acquirer or recipient of the securities in such issuance solely consists of either (I) the actual participants in such strategic or commercial alliance, strategic or commercial licensing arrangement or strategic or commercial partnership, (II) the actual owners of such assets or securities acquired in such acquisition or merger or (III) the stockholders, partners, employees, consultants, officers, directors or members of the foregoing Persons, in each case, which is, itself or through its subsidiaries, an operating company or an owner of an asset, in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, and (z) the number or amount of securities issued to such Persons by the Company shall not 

be disproportionate to each such Person’s actual participation in (or fair market value of the contribution to) such strategic or commercial alliance or strategic or commercial partnership or ownership of such assets or securities to be acquired by the Company, as applicable and (D) the Conversion Shares (each of the foregoing in clauses (A) through (D), collectively the “Excluded Securities”).  “Approved Stock Plan” means any employee benefit plan which has been approved by the board of directors of the Company prior to or subsequent to the date hereof pursuant to which shares of Common Stock and standard options to purchase Common Stock may be issued to any employee, officer or director for services provided to the Company in their capacity as such.  

(n)    Reservation of Shares.  So long as any of the Notes remain outstanding, the Company shall take all action necessary to at all times have authorized, and reserved for the purpose of issuance, no less than 200% of the maximum number of shares of Common Stock issuable upon conversion of all the Notes then outstanding (assuming for purposes hereof that (x) the Notes are convertible at the Alternate Conversion Price assuming an Alternate Conversion Date as of such applicable date of determination, and (y) any such conversion shall not take into account any limitations on the conversion of the Notes set forth in the Notes), (collectively, the “Required Reserve Amount”); provided that at no time shall the number of shares of Common Stock reserved pursuant to this Section 4(n) be reduced other than proportionally in connection with any conversion, exercise and/or redemption, as applicable of Notes.  If at any time the number of shares of Common Stock authorized and reserved for issuance is not sufficient to meet the Required Reserve Amount, the Company will promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders to authorize additional shares to meet the Company’s obligations pursuant to the Transaction Documents, in the case of an insufficient number of authorized shares, obtain stockholder approval of an increase in such authorized number of shares, and voting the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized shares is sufficient to meet the Required Reserve Amount.

(o)    Conduct of Business.  The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect.

(p)    Other Notes; Variable Securities.  So long as any Notes remain outstanding, the Company and each Subsidiary shall be prohibited from effecting or entering into an agreement to effect any Subsequent Placement involving a Variable Rate Transaction.  “Variable Rate Transaction” means a transaction in which the Company or any Subsidiary (i) issues or sells any Convertible Securities either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such Convertible Securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such Convertible Securities or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock, other than pursuant to a customary “weighted average” anti-dilution provision or (ii) enters into any agreement (including, without limitation, an equity line of credit or an “at-the-market” offering) whereby the Company or any Subsidiary may sell securities at a future determined price (other than standard and customary “preemptive” or “participation” rights).  Each Buyer shall be entitled to obtain injunctive relief against the Company and its Subsidiaries to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

(q)    Participation Right.  At any time on or prior to the second anniversary of the Closing Date, neither the Company nor any of its Subsidiaries shall, directly or indirectly, effect any Subsequent Placement unless the Company shall have first complied with this Section 4(q).  The Company 

acknowledges and agrees that the right set forth in this Section 4(q) is a right granted by the Company, separately, to each Buyer.

(i)    At least five (5) Trading Days prior to any proposed or intended Subsequent Placement, the Company shall deliver to each Buyer a written notice (each such notice, a “Pre-Notice”), which Pre-Notice shall not contain any information (including, without limitation, material, non-public information) other than:  (A) if the proposed Offer Notice (as defined below) constitutes or contains material, non-public information, a statement asking whether the Investor is willing to accept material non-public information or (B) if the proposed Offer Notice does not constitute or contain material, non-public information, (x) a statement that the Company proposes or intends to effect a Subsequent Placement, (y) a statement that the statement in clause (x) above does not constitute material, non-public information and (z) a statement informing such Buyer that it is entitled to receive an Offer Notice (as defined below) with respect to such Subsequent Placement upon its written request.  Upon the written request of a Buyer within three (3) Trading Days after the Company’s delivery to such Buyer of such Pre-Notice, and only upon a written request by such Buyer, the Company shall promptly, but no later than one (1) Trading Day after such request, deliver to such Buyer an irrevocable written notice (the “Offer Notice”) of any proposed or intended issuance or sale or exchange (the “Offer”) of the securities being offered (the “Offered Securities”) in a Subsequent Placement, which Offer Notice shall (A) identify and describe the Offered Securities, (B) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (C) identify the Persons (if known) to which or with which the Offered Securities are to be offered, issued, sold or exchanged and (D) offer to issue and sell to or exchange with such Buyer in accordance with the terms of the Offer such Buyer’s pro rata portion of 25% of the Offered Securities, provided that the number of Offered Securities which such Buyer shall have the right to subscribe for under this Section 4(q) shall be (x) based on such Buyer’s pro rata portion of the aggregate original principal amount of the Notes purchased hereunder by all Buyers (the “Basic Amount”), and (y) with respect to each Buyer that elects to purchase its Basic Amount, any additional portion of the Offered Securities attributable to the Basic Amounts of other Buyers as such Buyer shall indicate it will purchase or acquire should the other Buyers subscribe for less than their Basic Amounts (the “Undersubscription Amount”), which process shall be repeated until each Buyer shall have an opportunity to subscribe for any remaining Undersubscription Amount.

(ii)    To accept an Offer, in whole or in part, such Buyer must deliver a written notice to the Company prior to the end of the fifth (5th) Business Day after such Buyer’s receipt of the Offer Notice (the “Offer Period”), setting forth the portion of such Buyer’s Basic Amount that such Buyer elects to purchase and, if such Buyer shall elect to purchase all of its Basic Amount, the Undersubscription Amount, if any, that such Buyer elects to purchase (in either case, the “Notice of Acceptance”).  If the Basic Amounts subscribed for by all Buyers are less than the total of all of the Basic Amounts, then each Buyer who has set forth an Undersubscription Amount in its Notice of Acceptance shall be entitled to purchase, in addition to the Basic Amounts subscribed for, the Undersubscription Amount it has subscribed for; provided, however, if the Undersubscription Amounts subscribed for exceed the difference between the total of all the Basic Amounts and the Basic Amounts subscribed for (the “Available Undersubscription Amount”), each Buyer who has subscribed for any Undersubscription Amount shall be entitled to purchase only that portion of the Available Undersubscription Amount as the Basic Amount of such Buyer bears to the total Basic Amounts of all Buyers that have subscribed for Undersubscription Amounts, subject to rounding by the Company to the extent it deems reasonably necessary.  Notwithstanding the foregoing, if the Company desires to modify or amend the terms and conditions of the Offer prior to the expiration of the Offer Period, the Company may deliver to each Buyer a new Offer Notice and the Offer Period shall expire on the fifth (5th) Business Day after such Buyer’s receipt of such new Offer Notice.

(iii)    The Company shall have five (5) Business Days from the expiration of the Offer Period above (A) to offer, issue, sell or exchange all or any part of such Offered Securities as to which a Notice of Acceptance has not been given by a Buyer (the “Refused Securities”) pursuant to a definitive agreement(s) (the “Subsequent Placement Agreement”), but only to the offerees described in the Offer Notice (if so described therein) and only upon terms and conditions (including, without limitation, unit prices and interest rates) that are not more favorable to the acquiring Person or Persons or less favorable to the Company than those set forth in the Offer Notice and (B) to publicly announce (x) the execution of such Subsequent Placement Agreement, and (y) either (I) the consummation of the transactions contemplated by such Subsequent Placement Agreement or (II) the termination of such Subsequent Placement Agreement, which shall be filed with the SEC on a Current Report on Form 8-K with such Subsequent Placement Agreement and any documents contemplated therein filed as exhibits thereto.

(iv)    In the event the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and on the terms specified in Section 4(q)(iii) above), then each Buyer may, at its sole option and in its sole discretion, withdraw its Notice of Acceptance or reduce the number or amount of the Offered Securities specified in its Notice of Acceptance to an amount that shall be not less than the number or amount of the Offered Securities that such Buyer elected to purchase pursuant to Section 4(q)(ii) above multiplied by a fraction, (i) the numerator of which shall be the number or amount of Offered Securities the Company actually proposes to issue, sell or exchange (including Offered Securities to be issued or sold to Buyers pursuant to this Section 4(q) prior to such reduction) and (ii) the denominator of which shall be the original amount of the Offered Securities.  In the event that any Buyer so elects to reduce the number or amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than the reduced number or amount of the Offered Securities unless and until such securities have again been offered to the Buyers in accordance with Section 4(q)(i) above.

(v)    Upon the closing of the issuance, sale or exchange of all or less than all of the Refused Securities, such Buyer shall acquire from the Company, and the Company shall issue to such Buyer, the number or amount of Offered Securities specified in its Notice of Acceptance, as reduced pursuant to Section 4(q)(iv) above if such Buyer has so elected, upon the terms and conditions specified in the Offer.  The purchase by such Buyer of any Offered Securities is subject in all cases to the preparation, execution and delivery by the Company and such Buyer of a separate purchase agreement relating to such Offered Securities reasonably satisfactory in form and substance to such Buyer and its counsel.

(vi)    Any Offered Securities not acquired by a Buyer or other Persons in accordance with this Section 4(q) may not be issued, sold or exchanged until they are again offered to such Buyer under the procedures specified in this Agreement.

(vii)    The Company and each Buyer agree that if any Buyer elects to participate in the Offer, neither the Subsequent Placement Agreement with respect to such Offer nor any other transaction documents related thereto (collectively, the “Subsequent Placement Documents”) shall include any term or provision whereby such Buyer shall be required to agree to any restrictions on trading as to any securities of the Company or be required to consent to any amendment to or termination of, or grant any waiver, release or the like under or in connection with, any agreement previously entered into with the Company or any instrument received from the Company.

(viii)    Notwithstanding anything to the contrary in this Section 4(q) and unless otherwise agreed to by such Buyer, the Company shall either confirm in writing to such Buyer that the 

transaction with respect to the Subsequent Placement has been abandoned or shall publicly disclose its intention to issue the Offered Securities, in either case, in such a manner such that such Buyer will not be in possession of any material, non-public information, by the fifth (5th) Business Day following delivery of the Offer Notice.  If by such fifth (5th) Business Day, no public disclosure regarding a transaction with respect to the Offered Securities has been made, and no notice regarding the abandonment of such transaction has been received by such Buyer, such transaction shall be deemed to have been abandoned and such Buyer shall not be in possession of any material, non-public information with respect to the Company or any of its Subsidiaries.  Should the Company decide to pursue such transaction with respect to the Offered Securities, the Company shall provide such Buyer with another Offer Notice and such Buyer will again have the right of participation set forth in this Section 4(q).  The Company shall not be permitted to deliver more than one such Offer Notice to such Buyer in any sixty (60) day period, except as expressly contemplated by the last sentence of Section 4(q)(ii).

(ix)    The restrictions contained in this Section 4(q) shall not apply in connection with the issuance of any Excluded Securities.  The Company shall not circumvent the provisions of this Section 4(q) by providing terms or conditions to one Buyer that are not provided to all.

(r)    Dilutive Issuances.  For so long as any Notes remain outstanding, the Company shall not, in any manner, enter into or affect any Dilutive Issuance (as defined in the Notes) if the effect of such Dilutive Issuance is to cause the Company to be required to issue upon conversion of any Notes any shares of Common Stock in excess of that number of shares of Common Stock which the Company may issue upon conversion of the Notes without breaching the Company’s obligations under the rules or regulations of the Principal Market.  

(s)    Passive Foreign Investment Company.  The Company shall conduct its business, and shall cause its Subsidiaries to conduct their respective businesses, in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign investment company within the meaning of Section 1297 of the Code.

(t)    Restriction on Redemption and Cash Dividends.  So long as any Notes are outstanding, the Company shall not, directly or indirectly, redeem, or declare or pay any cash dividend or distribution on, any securities of the Company without the prior express written consent of the Buyers.

(u)    Corporate Existence.  So long as any Buyer beneficially owns any Notes, the Company shall not be party to any Fundamental Transaction (as defined in the Notes) unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Notes.

(v)    Stock Splits.  Until the Notes and all notes issued pursuant to the terms thereof are no longer outstanding, the Company shall not effect any stock combination, reverse stock split or other similar transaction (or make any public announcement or disclosure with respect to any of the foregoing) without the prior written consent of the Required Holders (as defined below), except in connection with an uplisting to an Eligible Market (other than the Principal Market).

(w)      Conversion Procedures.  Each of the form of Conversion Notice (as defined in the Notes) included in the Notes set forth the totality of the procedures required of the Buyers in order to convert the Notes.  No legal opinion, other information or instructions shall be required of the Buyers to convert their Notes.  The Company shall honor conversions of the Notes and shall deliver the Conversion Shares in accordance with the terms, conditions and time periods set forth in the Notes.  Without limiting the preceding sentences, no ink-original Conversion Notice shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Conversion Notice form be required in order to convert the Notes.

(x)    Regulation M.  The Company will not take any action prohibited by Regulation M under the 1934 Act, in connection with the distribution of the Securities contemplated hereby.

(y)    Closing Documents.  On or prior to fourteen (14) calendar days after the Closing Date, the Company agrees to deliver, or cause to be delivered, to each Buyer and Kelley Drye & Warren LLP a complete closing set of the executed Transaction Documents, Securities and any other document required to be delivered to any party pursuant to Section 7 hereof or otherwise.

5.    REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

(a)    Register.  The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by notice to each holder of Securities), a register for the Notes in which the Company shall record the name and address of the Person in whose name the Notes have been issued (including the name and address of each transferee), the principal amount of the Notes held by such Person and the number of Conversion Shares issuable pursuant to the terms of the Notes.  The Company shall keep the register open and available at all times during business hours for inspection of any Buyer or its legal representatives.

(b)    Transfer Agent Instructions.  The Company shall issue irrevocable instructions to its transfer agent and any subsequent transfer agent (as applicable, the “Transfer Agent”) in a form acceptable to each of the Buyers (the “Irrevocable Transfer Agent Instructions”) to issue certificates or credit shares to the applicable balance accounts at The Depository Trust Company (“DTC”), registered in the name of each Buyer or its respective nominee(s), for the Conversion Shares in such amounts as specified from time to time by each Buyer to the Company upon conversion of the Notes.  The Company represents and warrants that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5(b), will be given by the Company to its transfer agent with respect to the Securities, and that the Securities shall otherwise be freely transferable on the books and records of the Company, as applicable, to the extent provided in this Agreement and the other Transaction Documents.  If a Buyer effects a sale, assignment or transfer of the, the Company shall permit the transfer and shall promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by such Buyer to effect such sale, transfer or assignment.  The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to a Buyer.  Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 5(b), that a Buyer shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required.  The Company shall cause its counsel to issue the legal opinion referred to in the Irrevocable Transfer Agent Instructions to the Transfer Agent as follows: (i) upon each conversion of the Notes (unless such issuance is covered by a prior legal opinion previously delivered to the Transfer Agent) and (ii) on each date a registration statement with respect to the issuance or resale of any of the Securities is declared effective by the SEC.  Any fees (with respect to the transfer agent, counsel to the Company or otherwise) associated with the issuance of such opinion or the removal of any legends on any of the Securities shall be borne by the Company.

(c)    Legends.  Certificates and any other instruments evidencing the Securities shall not bear any restrictive or other legend.

(d)    FAST Compliance.  While any Notes remain outstanding, the Company shall maintain a transfer agent that participates in the DTC Fast Automated Securities Transfer Program.

6.    CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

(a)    The obligation of the Company hereunder to issue and sell the Initial Notes to each Buyer at the Initial Closing is subject to the satisfaction, at or before the Initial Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:

(i)    Such Buyer shall have executed each of the other Transaction Documents to which it is a party and delivered the same to the Company.

(ii)    Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less, in the case of any Buyer, the amounts withheld pursuant to Section 4(j)) for the Initial Note being purchased by such Buyer at the Initial Closing by wire transfer of immediately available funds in accordance with the Flow of Funds Letter.

(iii)    The representations and warranties of such Buyer shall be true and correct in all material respects as of the date when made and as of the Initial Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to the Initial Closing Date.

(b)    The obligation of the Company hereunder to issue and sell Additional Notes to each Buyer at the applicable Additional Closing is subject to the satisfaction, at or before such Additional Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:

(i)    Such Buyer shall have executed each of the other Transaction Documents to which it is a party and delivered the same to the Company.

(ii)    Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less, in the case of any Buyer, the amounts withheld pursuant to Section 4(j)) for the Additional Note being purchased by such Buyer at such Additional Closing by wire transfer of immediately available funds in accordance with the Flow of Funds Letter.

(iii)    The representations and warranties of such Buyer shall be true and correct in all material respects as of the date when made and as of such Additional Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to such Additional Closing Date.

7.    CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE.

(a)    The obligation of each Buyer hereunder to purchase its Initial Note at the Initial Closing is subject to the satisfaction, at or before the Initial Closing Date, of each of the following conditions, provided that these conditions are for each Buyer’s sole benefit and may be waived by such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

(i)    The Company shall have duly executed and delivered to such Buyer each of the Transaction Documents and the Company shall have duly executed and delivered to such Buyer the Initial Note (in such original principal amount as is set forth across from such Buyer’s name in column (3) of the Schedule of Buyers) being purchased by such Buyer at the Initial Closing pursuant to this Agreement.

(ii)    Such Buyer shall have received the opinion of Procopio, Cory, Hargreaves & Savitch, LLP, the Company’s counsel, dated as of the Initial Closing Date, in the form acceptable to such Buyer.

(iii)    The Company shall have delivered to such Buyer a copy of the Irrevocable Transfer Agent Instructions, in the form acceptable to such Buyer, which instructions shall have been delivered to and acknowledged in writing by the Company’s transfer agent and shall remain in full force and effect as of such Initial Closing Date.

(iv)    The Company shall have delivered to such Buyer a certificate evidencing the formation and good standing of the Company in such entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction of formation as of a date within ten (10) days of the Initial Closing Date.

(v)    The Company shall have delivered to such Buyer a certificate evidencing the Company’s qualification as a foreign corporation and good standing issued by the Secretary of State (or comparable office) of each jurisdiction in which the Company conducts business and is required to so qualify, as of a date within ten (10) days of the Initial Closing Date.

(vi)    The Company shall have delivered to such Buyer a certified copy of the Certificate of Incorporation as certified by the Delaware Secretary of State within ten (10) days of the Initial Closing Date.

(vii)    The Company shall have delivered to such Buyer a certificate, in the form acceptable to such Buyer, executed by the Secretary of the Company and dated as of the Initial Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s board of directors in a form reasonably acceptable to such Buyer, (ii) the Certificate of Incorporation of the Company and (iii) the Bylaws of the Company, each as in effect at the Initial Closing.

(viii)    Each and every representation and warranty of the Company shall be true and correct as of the date when made and as of the Initial Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specific date) and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by the Company at or prior to the Initial Closing Date.  Such Buyer shall have received a certificate, duly executed by the Chief Executive Officer of the Company, dated as of the Initial Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Buyer in the form acceptable to such Buyer.

(ix)    The Company shall have delivered to such Buyer a letter from the Company’s transfer agent certifying the number of shares of Common Stock outstanding on the Initial Closing Date immediately prior to the Initial Closing.

(x)    The Common Stock (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not have been suspended, as of the Initial Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market have been threatened, as of the Initial Closing Date, either (I) in writing by the SEC or the Principal Market or (II) by falling below the minimum maintenance requirements of the Principal Market.  

(xi)    The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Securities, including without limitation, those required by the Principal Market, if any.

(xii)    No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

(xiii)    Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or result in a Material Adverse Effect.

(xiv)    The Company shall have obtained approval of the Principal Market (as necessary) to list or designate for quotation (as the case may be) the Conversion Shares issuable upon conversion of the Initial Notes.

(xv)    Within two (2) Business Days prior to the Closing, the Company shall have delivered or caused to be delivered to each Buyer certified copies of requests for copies of information on Form UCC-11, listing all effective financing statements which name as debtor the Company or any of its Subsidiaries, together with copies of such financing statements, and the results of searches for any tax Lien and judgment Lien filed against such Person or its property, in each case, none of which shall show any Liens (other than Permitted Liens (as defined in the Notes)).

(xvi)    Such Buyer shall have received a letter on the letterhead of the Company, duly executed by the Chief Executive Officer of the Company, setting forth the wire amounts of each Buyer and the wire transfer instructions of the Company (the “Initial Flow of Funds Letter”).

(xvii)    From the date hereof to the Initial Closing Date, (i) trading in the Common Stock shall not have been suspended by the SEC or the Principal Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the Initial Closing), and, (ii) at any time prior to the Initial Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on the Principal Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of each Buyer, makes it impracticable or inadvisable to purchase the Securities at the Initial Closing

(xviii)    The Registration Statement shall be effective and available for the issuance and sale of the Initial Notes to be issued in the Initial Closing and the Conversion Shares issuable upon conversion thereof pursuant to the terms of the Indenture and the Supplemental Indenture for the 

Initial Notes and the Company shall have delivered to such Buyer the Prospectus and the Prospectus Supplement with respect thereto as required hereunder and thereunder.

(xix)    The Company shall have filed a Form T-1, in form and substance satisfactory to the Trustee, with respect to the transaction contemplated hereby in accordance with TIA 305(b)(2).

(xx)    The Trustee shall have duly executed and delivered to the Company and such Buyer the Indenture, the Supplemental Indenture for the Initial Notes to be issued in the Initial Closing and the custodian agreements in the form attached hereto as Exhibit C hereof (the “Custodian Agreements”).  The Indenture and the Supplemental Indenture for the Initial Notes shall be qualified under the TIA. 

(xxi)    The Company and its Subsidiaries shall have delivered to such Buyer such other documents, instruments or certificates relating to the transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.

(b)    The obligation of each Buyer hereunder to purchase the applicable Additional Note at the applicable Additional Closing is subject to the satisfaction, at or before such Additional Closing Date, of each of the following conditions, provided that these conditions are for each Buyer’s sole benefit and may be waived by such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

(i)    The Company shall have duly executed and delivered to such Buyer each of the Transaction Documents and the Company shall have duly executed and delivered to such Buyer such Additional Note being purchased by such Buyer at such Additional Closing pursuant to this Agreement.

(ii)    Such Buyer shall have received the opinion of Procopio, Cory, Hargreaves & Savitch, LLP, the Company’s counsel, dated as of such Additional Closing Date, in the form acceptable to such Buyer.

(iii)    The Company shall have delivered to such Buyer a copy of the Irrevocable Transfer Agent Instructions, in the form acceptable to such Buyer, which instructions shall have been delivered to and acknowledged in writing by the Company’s transfer agent and shall remain in full force and effect as of such Additional Closing Date.

(iv)    The Company shall have delivered to such Buyer a certificate evidencing the formation and good standing of the Company in such entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction of formation as of a date within ten (10) days of such Additional Closing Date.

(v)    The Company shall have delivered to such Buyer a certificate evidencing the Company’s qualification as a foreign corporation and good standing issued by the Secretary of State (or comparable office) of each jurisdiction in which the Company conducts business and is required to so qualify, as of a date within ten (10) days of such Additional Closing Date.

(vi)    The Company shall have delivered to such Buyer a certified copy of the Certificate of Incorporation as certified by the Delaware Secretary of State within ten (10) days of such Additional Closing Date.

(vii)    The Company shall have delivered to such Buyer a certificate, in the form acceptable to such Buyer, executed by the Secretary of the Company and dated as of such 

Additional Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s board of directors in a form reasonably acceptable to such Buyer, (ii) the Certificate of Incorporation of the Company and (iii) the Bylaws of the Company, each as in effect at such Additional Closing.

(viii)    Each and every representation and warranty of the Company shall be true and correct as of the date when made and as of such Additional Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specific date) and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by the Company at or prior to such Additional Closing Date.  Such Buyer shall have received a certificate, duly executed by the Chief Executive Officer of the Company, dated as of such Additional Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Buyer in the form acceptable to such Buyer.

(ix)    The Company shall have delivered to such Buyer a letter from the Company’s transfer agent certifying the number of shares of Common Stock outstanding on such Additional Closing Date immediately prior to such Additional Closing.

(x)    The Common Stock (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not have been suspended, as of such Additional Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market have been threatened, as of such Additional Closing Date, either (I) in writing by the SEC or the Principal Market or (II) by falling below the minimum maintenance requirements of the Principal Market.  

(xi)    The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Securities, including without limitation, those required by the Principal Market, if any.

(xii)    No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

(xiii)    Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or result in a Material Adverse Effect.

(xiv)    The Company shall have obtained approval of the Principal Market (as necessary)  to list or designate for quotation (as the case may be) the Conversion Shares issuable upon conversion of such Additional Notes to be sold in such Additional Closing.

(xv)    Such Buyer shall have received a letter on the letterhead of the Company, duly executed by the Chief Executive Officer of the Company, setting forth the wire amounts of each Buyer and the wire transfer instructions of the Company with respect to such Additional Closing (each, an “Additional Flow of Funds Letter”).

(xvi)    From the date hereof to such Additional Closing Date, (i) trading in the Common Stock shall not have been suspended by the SEC or the Principal Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to such Additional Closing), and, (ii) at any time prior to such Additional Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended 

or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on the Principal Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of each Buyer, makes it impracticable or inadvisable to purchase the Securities at such Additional Closing

(xvii)    The Registration Statement shall be effective and available for the issuance and sale of the Additional Notes to be issued in such Additional Closing and the Conversion Shares issuable upon conversion thereof pursuant to the terms of the Indenture and the Supplemental Indenture for such Additional Note and the Company shall have delivered to such Buyer the Prospectus and the Prospectus Supplement with respect thereto as required hereunder and thereunder.

(xviii)    The Trustee shall have duly executed and delivered to the Company and such Buyer the Indenture, the Supplemental Indenture for such Additional Notes to be issued in such Additional Closing and, if a Custodian Agreement with respect to the Additional Notes is not then in effect, a Custodian Agreement with respect thereto.  The Indenture and the Supplemental Indenture for such Additional Notes shall be qualified under the TIA. 

(xix)    The quotient of (x) the sum of the aggregate daily dollar trading volume (as reported on Bloomberg) of the Common Stock on each Trading Day over the fifteen (15) consecutive Trading Day period ending on the Trading Day immediately preceding the Additional Closing Date, divided by (y) fifteen (15) is not less than $75,000 (as adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions) (the “Additional Closing Volume Condition”).

(xx)    The volume-weighted average of the VWAP (as defined in the Notes) of the Common Stock during the fifteen (15) consecutive Trading Day period ending on the Trading Day immediately preceding the Additional Closing Date exceeds $0.15 (as adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar transactions) (the “Additional Closing Price Condition”).

(xxi)    There has been no Equity Conditions Failure (as defined in the Initial Notes).

(xxii)    No bona fide dispute shall exist, by and between (or among) any of the Buyers, any holder of Notes, the Trustee and/or the Company, which dispute is reasonably related to this Agreement, any of the Securities and/or the transactions contemplated hereby or thereby, as applicable.

(xxiii)    The Company and its Subsidiaries shall have delivered to such Buyer such other documents, instruments or certificates relating to the transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.

8.    TERMINATION.

In the event that the Closing shall not have occurred with respect to a Buyer within five (5) days of the date hereof, then such Buyer shall have the right to terminate its obligations under this Agreement with respect to itself at any time on or after the close of business on such date without liability of such Buyer to any other party; provided, however, (i) the right to terminate this Agreement under this Section 8 shall not be available to such Buyer if the failure of the transactions contemplated by this Agreement to have been 

consummated by such date is the result of such Buyer’s breach of this Agreement and (ii) the abandonment of the sale and purchase of the Notes shall be applicable only to such Buyer providing such written notice, provided further that no such termination shall affect any obligation of the Company under this Agreement to reimburse such Buyer for the expenses described in Section 4(j) above.  Nothing contained in this Section 8 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents.  

9.    MISCELLANEOUS.

(a)    Governing Law; Jurisdiction; Jury Trial.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois.  The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Chicago, Illinois, for the adjudication of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  Nothing contained herein shall be deemed or operate to preclude any Buyer from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to such Buyer or to enforce a judgment or other court ruling in favor of such Buyer.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

(b)    Counterparts.  This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.  In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

(c)    Headings; Gender.  The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.  Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof.  The terms “including,” “includes,” “include” and words of like import shall be construed broadly as if followed by the words “without limitation.”  The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found.

(d)    Severability; Maximum Payment Amounts.  If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties.  The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).  Notwithstanding anything to the contrary contained in this Agreement or any other Transaction Document (and without implication that the following is required or applicable), it is the intention of the parties that in no event shall amounts and value paid by the Company and/or any of its Subsidiaries (as the case may be), or payable to or received by any of the Buyers, under the Transaction Documents (including without limitation, any amounts that would be characterized as “interest” under applicable law) exceed amounts permitted under any applicable law.  Accordingly, if any obligation to pay, payment made to any Buyer, or collection by any Buyer pursuant the Transaction Documents is finally judicially determined to be contrary to any such applicable law, such obligation to pay, payment or collection shall be deemed to have been made by mutual mistake of such Buyer, the Company and its Subsidiaries and such amount shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by the applicable law.  Such adjustment shall be effected, to the extent necessary, by reducing or refunding, at the option of such Buyer, the amount of interest or any other amounts which would constitute unlawful amounts required to be paid or actually paid to such Buyer under the Transaction Documents.  For greater certainty, to the extent that any interest, charges, fees, expenses or other amounts required to be paid to or received by such Buyer under any of the Transaction Documents or related thereto are held to be within the meaning of “interest” or another applicable term to otherwise be violative of applicable law, such amounts shall be pro-rated over the period of time to which they relate.  

(e)    Entire Agreement; Amendments.  This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Buyers, the Company, its Subsidiaries, their affiliates and Persons acting on their behalf, including, without limitation, any transactions by any Buyer with respect to Common Stock or the Securities, and the other matters contained herein and therein, and this Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein and therein contain the entire understanding of the parties solely with respect to the matters covered herein and therein; provided, however, nothing contained in this Agreement or any other Transaction Document shall (or shall be deemed to) (i) have any effect on any agreements any Buyer has entered into with, or any instruments any Buyer has received from, the Company or any of its Subsidiaries prior to the date hereof with respect to any prior investment made by such Buyer in the Company or (ii) waive, alter, modify or amend in any respect any obligations of the Company or any of its Subsidiaries, or any rights of or benefits to any Buyer or any other Person, in any agreement entered into prior to the date hereof between or among the Company and/or any of its Subsidiaries and any Buyer, or any instruments any Buyer received from the Company and/or any of its Subsidiaries prior to the date hereof, and all such agreements and instruments shall continue in full force and effect.  Except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.  For clarification purposes, the Recitals are part of this Agreement.  No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Required Holders (as defined below), and any amendment to any provision of this Agreement made in conformity with the provisions of this Section 9(e) shall be binding on all Buyers and holders of Securities, as applicable; provided that no such 

amendment shall be effective to the extent that it (A) applies to less than all of the holders of the Securities then outstanding or (B) imposes any obligation or liability on any Buyer without such Buyer’s prior written consent (which may be granted or withheld in such Buyer’s sole discretion).  No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party, provided that the Required Holders may waive any provision of this Agreement, and any waiver of any provision of this Agreement made in conformity with the provisions of this Section 9(e) shall be binding on all Buyers and holders of Securities, as applicable, provided that no such waiver shall be effective to the extent that it (1) applies to less than all of the holders of the Securities then outstanding (unless a party gives a waiver as to itself only) or (2) imposes any obligation or liability on any Buyer without such Buyer’s prior written consent (which may be granted or withheld in such Buyer’s sole discretion).  No consideration (other than reimbursement of legal fees) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration also is offered to all of the parties to the Transaction Documents, all holders of the Notes.  From the date hereof and while any Notes are outstanding, the Company shall not be permitted to receive any consideration from a Buyer or a holder of Notes that is not otherwise contemplated by the Transaction Documents in order to, directly or indirectly, induce the Company or any Subsidiary (i) to treat such Buyer or holder of Notes in a manner that is more favorable than to other similarly situated Buyers or holders of Notes, or (ii) to treat any Buyer(s) or holder(s) of Notes in a manner that is less favorable than the Buyer or holder of Notes that is paying such consideration; provided, however, that the determination of whether a Buyer has been treated more or less favorably than another Buyer shall disregard any securities of the Company purchased or sold by any Buyer.  The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents.  Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment or promise or has any other obligation to provide any financing to the Company, any Subsidiary or otherwise.  As a material inducement for each Buyer to enter into this Agreement, the Company expressly acknowledges and agrees that (x) no due diligence or other investigation or inquiry conducted by a Buyer, any of its advisors or any of its representatives shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement or any other Transaction Document and (y) unless a provision of this Agreement or any other Transaction Document is expressly preceded by the phrase “except as disclosed in the SEC Documents,” nothing contained in any of the SEC Documents shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement or any other Transaction Document.  “Required Holders” means (I) prior to the Closing Date, each Buyer entitled to purchase Notes at the Closing and (II) on or after the Closing Date, holders of a majority of the Underlying Securities as of such time (excluding any Underlying Securities held by the Company or any of its Subsidiaries as of such time and excluding any purchasers of Underlying Securities, unless pursuant to a written assignment by such Buyer) issued or issuable hereunder or pursuant to the Notes (or the Buyers, with respect to any waiver or amendment of Section 4(o)); provided, that such majority must include each holder of at least $500,000 in aggregate principal amount of Notes.

(f)    Notices.  Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by electronic mail (provided that such sent email is kept on file (whether electronically or otherwise) by the sending party and the sending party does not receive an automatically generated message from the recipient’s email server that such e-mail could not be delivered to such recipient); or (iii) one (1) Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive the same.  The mailing addresses and e-mail addresses for such communications shall be:

If to the Company:

CV Sciences, Inc. 
10070 Barnes Canyon Road
San Diego, CA 92121 
Telephone:  (866) 290-2157 
Attention:  Chief Executive Officer 
E-Mail:  joseph.dowling@cvsciences.com

With a copy (for informational purposes only) to:

Procopio, Cory, Hargreaves & Savitch LLP
12544 High Bluff Drive, Suite 400 
San Diego, CA 92130 
Telephone:  (858) 720-6320 
Attention:  Christopher L. Tinen, Esq. 
E-Mail: christopher.tinen@procopio.com 

If to the Transfer Agent:

Issuer Direct Corporation 
1981 Murray Holladay Road, Suite 100 
Salt Lake City, UT, 84117 
Telephone:  (801)272-9294 
Attention:  Julie Felix 
E-Mail:  julie.felix@issuerdirect.com

If to a Buyer, to its mailing address and e-mail address set forth on the Schedule of Buyers, with copies to such Buyer’s representatives as set forth on the Schedule of Buyers,

with a copy (for informational purposes only) to:

Kelley Drye & Warren LLP 
3 World Trade Center 
175 Greenwich Street 
New York, NY 10007 
Telephone:  (212) 808-7540 
Attention:  Michael A. Adelstein, Esq. 
E-mail:  madelstein@kelleydrye.com

or to such other mailing address and/or e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change, provided that Kelley Drye & Warren LLP shall only be provided copies of notices sent to the lead Buyer.  Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s e-mail containing the time, date and recipient’s e-mail or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by e-mail or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

(g)    Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including any purchasers of any of the Notes (but excluding any purchasers of Underlying Securities, unless pursuant to a written assignment by such 

Buyer).  The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Required Holders, including, without limitation, by way of a Fundamental Transaction (as defined in the Notes) (unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Notes).  A Buyer may assign some or all of its rights hereunder in connection with any transfer of any of its Securities without the consent of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such assigned rights.

(h)    No Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than the Indemnitees referred to in Section 9(k).

(i)    Survival.  The representations, warranties, agreements and covenants shall survive the Closing.  Each Buyer shall be responsible only for its own representations, warranties, agreements and covenants hereunder.

(j)    Further Assurances.  Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

(k)    Indemnification.

(i)    In consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless each Buyer and each holder of any Securities and all of their stockholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (i) any misrepresentation or breach of any representation or warranty made by the Company or any Subsidiary in any of the Transaction Documents, (ii) any breach of any covenant, agreement or obligation of the Company or any Subsidiary contained in any of the Transaction Documents or (iii) any cause of action, suit, proceeding or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company or any Subsidiary) or which otherwise involves such Indemnitee that arises out of or results from (A) the execution, delivery, performance or enforcement of any of the Transaction Documents, (B) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (C) any disclosure properly made by such Buyer pursuant to Section 4(l), or (D) the status of such Buyer or holder of the Securities either as an investor in the Company pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement (including, without limitation, as a party in interest or otherwise in any action or proceeding for injunctive or other equitable relief).  To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. 

(ii)    Promptly after receipt by an Indemnitee under this Section 9(k) of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof is to be made against the Company under this Section 9(k), deliver to the Company a written notice of the commencement thereof, and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense thereof with counsel mutually satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee shall have the right to retain its own counsel with the fees and expenses of such counsel to be paid by the Company if: (A) the Company has agreed in writing to pay such fees and expenses; (B) the Company shall have failed promptly to assume the defense of such Indemnified Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified Liability; or (C) the named parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnitee and the Company (in which case, if such Indemnitee notifies the Company in writing that it elects to employ separate counsel at the expense of the Company, then the Company shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Company), provided further, that in the case of clause (C) above the Company shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for the Indemnitees.  The Indemnitee shall reasonably cooperate with the Company in connection with any negotiation or defense of any such action or Indemnified Liability by the Company and shall furnish to the Company all information reasonably available to the Indemnitee which relates to such action or Indemnified Liability.  The Company shall keep the Indemnitee reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.  The Company shall not be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the Company shall not unreasonably withhold, delay or condition its consent.  The Company shall not, without the prior written consent of the Indemnitee, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release from all liability in respect to such Indemnified Liability or litigation, and such settlement shall not include any admission as to fault on the part of the Indemnitee.  Following indemnification as provided for hereunder, the Company shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made.  The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action shall not relieve the Company of any liability to the Indemnitee under this Section 9(k), except to the extent that the Company is materially and adversely prejudiced in its ability to defend such action.

(iii)    The indemnification required by this Section 9(k) shall be made by periodic payments of the amount thereof during the course of the investigation or defense, within ten (10) days after bills are received or Indemnified Liabilities are incurred.

(iv)    The indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnitee against the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law.

(l)    Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.  No specific representation or warranty shall limit the generality or applicability of a more general representation or warranty.  Each and every reference to share prices, shares of Common Stock and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar 

transactions that occur with respect to the Common Stock after the date of this Agreement.  Notwithstanding anything in this Agreement to the contrary, for the avoidance of doubt, nothing contained herein shall constitute a representation or warranty against, or a prohibition of, any actions with respect to the borrowing of, arrangement to borrow, identification of the availability of, and/or securing of, securities of the Company in order for such Buyer (or its broker or other financial representative) to effect short sales or similar transactions in the future.

(m)    Remedies.  Each Buyer and in the event of assignment by Buyer of its rights and obligations hereunder, each holder of Securities, shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which such holders have under any law.  Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law.  Furthermore, the Company recognizes that in the event that it or any Subsidiary fails to perform, observe, or discharge any or all of its or such Subsidiary’s (as the case may be) obligations under the Transaction Documents, any remedy at law would inadequate relief to the Buyers.  The Company therefore agrees that the Buyers shall be entitled to specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security.  The remedies provided in this Agreement and the other Transaction Documents shall be cumulative and in addition to all other remedies available under this Agreement and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief).

(n)    Withdrawal Right.  Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any Buyer exercises a right, election, demand or option under a Transaction Document and the Company or any Subsidiary does not timely perform its related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company or such Subsidiary (as the case may be), any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights.

(o)    Payment Set Aside; Currency.  To the extent that the Company makes a payment or payments to any Buyer hereunder or pursuant to any of the other Transaction Documents or any of the Buyers enforce or exercise their rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.  Unless otherwise expressly indicated, all dollar amounts referred to in this Agreement and the other Transaction Documents are in United States Dollars (“U.S. Dollars”), and all amounts owing under this Agreement and all other Transaction Documents shall be paid in U.S. Dollars.  All amounts denominated in other currencies (if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation.  “Exchange Rate” means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Agreement, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation.

(p)    Judgment Currency.

(i)    If for the purpose of obtaining or enforcing judgment against the Company in connection with this Agreement or any other Transaction Document in any court in any jurisdiction it becomes necessary to convert into any other currency (such other currency being hereinafter in this Section 9(p) referred to as the “Judgment Currency”) an amount due in U.S. Dollars under this Agreement, the conversion shall be made at the Exchange Rate prevailing on the Trading Day immediately preceding:

(1)    the date actual payment of the amount due, in the case of any proceeding in the courts of Illinois or in the courts of any other jurisdiction that will give effect to such conversion being made on such date:  or

(2)    the date on which the foreign court determines, in the case of any proceeding in the courts of any other jurisdiction (the date as of which such conversion is made pursuant to this Section 9(p)(i)(2) being hereinafter referred to as the “Judgment Conversion Date”).

(ii)    If in the case of any proceeding in the court of any jurisdiction referred to in Section 9(p)(i)(2)  above, there is a change in the Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable party shall pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted at the Exchange Rate prevailing on the date of payment, will produce the amount of US Dollars which could have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial order at the Exchange Rate prevailing on the Judgment Conversion Date.

(iii)    Any amount due from the Company under this provision shall be due as a separate debt and shall not be affected by judgment being obtained for any other amounts due under or in respect of this Agreement or any other Transaction Document.

(q)    Independent Nature of Buyers’ Obligations and Rights.  The obligations of each Buyer under the Transaction Documents are several and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations of any other Buyer under any Transaction Document.  Nothing contained herein or in any other Transaction Document, and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges that the Buyers do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Buyers are in any way acting in concert or as a group or entity, and the Company shall not assert any such claim with respect to such obligations or the transactions contemplated by the Transaction Documents or any matters, and the Company acknowledges that the Buyers are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or the transactions contemplated by the Transaction Documents.  The decision of each Buyer to purchase Securities pursuant to the Transaction Documents has been made by such Buyer independently of any other Buyer.  Each Buyer acknowledges that no other Buyer has acted as agent for such Buyer in connection with such Buyer making its investment hereunder and that no other Buyer will be acting as agent of such Buyer in connection with monitoring such Buyer’s investment in the Securities or enforcing its rights under the Transaction Documents.  The Company and each Buyer confirms that each Buyer has independently participated with the Company and its Subsidiaries in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors.  Each Buyer shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for such purpose.  The use of a single agreement to effectuate the purchase and sale of the Securities contemplated hereby was solely in the control of the Company, not the action or decision of any Buyer, 

and was done solely for the convenience of the Company and its Subsidiaries and not because it was required or requested to do so by any Buyer.  It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company, each Subsidiary and a Buyer, solely, and not between the Company, its Subsidiaries and the Buyers collectively and not between and among the Buyers.

[signature pages follow]

IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Agreement to be duly executed as of the date first written above.

						
		COMPANY:
		CV SCIENCES, INC.

By: Name: Joseph Dowlin
Title: Chief Executive Officer

									
		By:	 /s/ Joseph Dowling
			Name: Joseph Dowling
			Title: Chief Executive Officer

IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this Agreement to be duly executed as of the date first written above.

						
		BUYER:

		

									
		By:	
			Name: 
			Title:Exhibit 10.11

 

 

 

1815 BUILDING COMPANY, LLC

 

Landlord,

 

VERITAS FARMS

 

Tenant.

 

 

 

 

 

LEASE

 

 

 

	Premises:	Rooms 401B and 402 on the 4th floor
	 	Design Center Office Building
	 	1815 Griffin Road
	 	Dania Beach, Florida 33004

 

    

    

    

 

TABLE OF CONTENTS

 

 

	ARTICLE	 	PAGE
	Article 1	Definitions: Basic Provisions	1
	Article 2 	Term: Possession	2
	Article 3 	Rent	3
	Article 4	Additional Rent - Taxes	4
	Article 5	Additional Rent - Operating Expenses	6
	Article 6	Late Charge - Interest	13
	Article 7	Security Deposit	13
	Article 8	Use of Premises and Building	15
	Article 9	Services and Utilities	20
	Article 10	Electricity	22
	Article 11	Alterations	24
	Article 12	Liens	26
	Article 13	Indemnification	27
	Article 14	Insurance	28
	Article 15	Assignment and Subletting	29
	Article 16	Landlord: Rights and Limitations	33
	Article 17	Casualty	35
	Article 18	Eminent Domain	36
	Article 19	Surrender of Premises	37
	Article 20	Holdover	37
	Article 21	Insolvency or Bankruptcy	38
	Article 22	Default	39
	Article 23	Remedies	39
	Article 24	Estoppel Certificate	42
	Article 25	Subordination and Attornment: Lease Modifications	42
	Article 26	Waiver of Jury Trial	43
	Article 27	Legal Limitations	43
	Article 28	Excavation	45
	Article 29	Broker	45
	Article 30	Covenant of Quiet Enjoyment	46
	Article 31	Waiver	46
	Article 32	Substitution of Premises	46
	Article 33	Miscellaneous	46
	Article 34	Confidentiality	49
	 	Testimonium and Signatures	53
	 	Acknowledgments	54

	 	Schedule A	Floor Plan	 
	 	Schedule B-1	Initial Improvements (Tenant’s Initial Work)	 
	 	Schedule B-2	Construction Procedures	 
	 	Schedule C	Rules and Regulations	 
	 	Schedule D	Janitorial Cleaning Specifications	 

 

    i

    

    

 

INDENTURE OF LEASE made
as of this ___ day of ___________, 2021, between 1815 BUILDING COMPANY, LLC, a Delaware limited liability company (“Landlord”),
having an office at 750 Lexington Avenue, 28th Floor, New York, New York 10022, as landlord, and VERITAS FARMS, a _____________
____________ (“Tenant”), having an office at _______________________________________, as tenant.

 

Article
1

Definitions: Basic Provisions

 

Section 1.01.   The term
“Premises” shall mean Rooms 401B and 402 on part of the fourth (4th) floor of the Building (as hereinafter defined),
as more particularly shown on floor plan attached hereto as Schedule A, which floor plan is provided for reference purposes only.

 

Section 1.02.  The term
“Building” shall mean the building located at 1815 Griffin Road, Dania Beach, Florida, and other structures, situated on the
land (the “Land”), in which the Premises are located (such Land and Building collectively called the “Building Project”).

 

Section 1.03.   The term
“Building Project” shall mean the Building and all other structures situated on the Land.

 

Section 1.04.   The term
“rentable” lease space shall mean the aggregate of the net square feet of the Premises occupied by Tenant plus the product
obtained by multiplying the net square feet of the Common Area (as hereinafter defined) by a fraction, the numerator of which is the net
square feet of Tenant’s Premises and the denominator of which is the net square feet of all premises in the Building reserved for
lease to tenants.

 

Section 1.05.  By taking
possession of the Premises, Tenant accepts the Premises as being in the condition in which Landlord is obligated to deliver them. Tenant
acknowledges that it has thoroughly inspected the Premises with the assistance of such experts as it deems necessary and accepts the Premises
on the Commencement Date in its then “As Is” condition. Tenant also acknowledges that neither the Landlord nor any agent or
representative of Landlord has made any representation or warranty whatsoever with respect to the condition of the Premises or Building,
or that any utility services provided to the Premises are in a form or amount suitable for Tenant’s use.

 

Section 1.06.  Tenant
acknowledges that any plan of the Building or the Land which may have been displayed or furnished to Tenant is tentative. Landlord may,
in its sole discretion, change the shape, size, location, number, and extent of the improvements shown on any such plans, and eliminate
from or add to the Land any buildings or other improvements and eliminate from or add to the Building any improvements or floors.

 

    1

     

    

 

Article
2

Term: Possession

 

Section 2.01. (a)  The
term of this Lease (the “Term”) shall be for a period beginning on the date hereof (the “Commencement Date”) and
ending on the date (the “Expiration Date”) that is three (3) Years (hereinafter defined) and three (3) months after the Rent
Commencement Date (hereinafter defined). The “Rent Commencement Date” shall be the earlier of: (i) the date that is two (2)
full calendar months after the date hereof and (ii) the date that Tenant occupies the Premises to conduct Tenant’s business. A “Year”
is the first twelve full calendar months of the Term commencing on the Rent Commencement Date and each subsequent twelve calendar month
period. If the Rent Commencement Date is not the first day of a calendar month, the period from the Rent Commencement Date through the
last day of the calendar month in which the Rent Commencement Date occurs is the “Partial Month”, and the first Year shall
begin on the first day of the month immediately after the Partial Month. Tenant shall pay minimum rent for the Partial Month on a per
diem basis (based on the annual rate for Year 1) for the number of days in the Partial Month. Minimum rent for such Partial Month shall
be paid on first day of the first (1st) full month following the month in which occurs the Rent Commencement Date.

 

The Term may terminate prior
to the Expiration Date as provided pursuant to this Lease and pursuant to law. If the Term ends earlier than the Expiration Date as a
result of Tenant’s default (subject to applicable notice and cure periods), Tenant’s liability for the payment of all amounts
due pursuant to this Lease through the Expiration Date and any other damages arising from Tenant’s default shall nevertheless survive
the early termination.

 

Tenant may enter any part
of the Premises prior to the Rent Commencement Date; provided, however, Tenant shall comply with all of the covenants and conditions of
this Lease from the date of such entry (including without limitation, the maintenance of the insurance required pursuant to this Lease
and the payment of additional rent, if any, such as electricity (if separately metered), and such items for which Tenant is separately
billed hereunder, including without limitation, overtime use of freight elevator supplemental air conditioning or overtime HVAC service
and extraordinary services), except that Tenant shall not be obligated to pay Base Rent for the period prior to the Rent Commencement
Date.

 

(b) Landlord
shall have no obligation to perform any work in connection with preparing the Premises for Tenant’s occupancy.

 

Section 2.02. Intentionally
omitted.

 

Section 2.03. Tenant shall
have the right to enter the Premises as of the Commencement Date for purposes of installing furniture systems, telephone equipment and
similar functions to facilitate Tenant’s move-in and start-up, subject to the provisions of this Lease, including the provisions
of Article 11, and provided Tenant delivers to Landlord the insurance policies set forth in Article 14, and further provided that such
earlier entry shall not affect the Rent Commencement Date nor shall Tenant be liable for the payment of any rent prior to the Rent Commencement
Date. Landlord shall have no liability or obligation for the care or preservation of Tenant’s property. If Landlord cannot deliver possession
of the Premises to Tenant on the Commencement Date, this Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for
any loss or damage resulting therefrom.

 

    2

     

    

 

Section 2.04. Promptly after
the Rent Commencement Date, upon the request of Landlord, Landlord and Tenant will execute a statement confirming the Rent Commencement
Date and the Expiration Date of this Lease, in accordance with the foregoing provisions, provided, however, that the execution of such
statement shall not be necessary for the Rent Commencement Date to occur.

 

Article
3

Rent

 

Section 3.01.   Tenant
shall pay, as base rent (“Base Rent”) for the Premises from and after the Rent Commencement Date, the following:

 

	Period
	 	
Annual
                                            Base Rent
	 	 	
Monthly
                                            Base Rent
	 
	Year 1	 	$	105,810.00	 	 	$	8,817.50	 
	Year 2	 	$	107,926.20	 	 	$	8,993.85	 
	Year 3	 	$	110,084.72	 	 	$	9,173.73	 
	First 3 months of Year 4	 	$	112,286.42	 	 	$	9,357.20	 

 

Section 3.02.   Provided
that Tenant is not in default under any of the provisions of this Lease on Tenant’s part to be performed, Tenant shall be entitled
to an abatement of the Base Rent only in the amount of (i) $8,817.50 for the 2nd month of Year 1; (ii) 8,993.85 for the 1st
month of Year 2; and (iii) 9,173.73 for the 1st month of Year 3. Tenant acknowledges that the consideration for the aforesaid
abatement of Base Rent is Tenant’s agreement to perform all of the terms, covenants and conditions of this Lease on its part to
be performed. Therefore, if Tenant shall default under any such terms, covenants and conditions of this Lease, beyond all applicable notice
and cure periods, the aggregate amount of all Base Rent that was abated shall become immediately due and payable by Tenant to Landlord.
In the event of Tenant’s failure to pay such aggregate amount of the abatement of the Base Rent to Landlord, Landlord shall be entitled
to the same rights and remedies as in the event of Tenant’s default in the payment of the Base Rent. Tenant shall be required to
pay all additional rent (including the escalations under Articles 4 and 5) and all other sums and charges from and after the Rent Commencement
Date.

 

    3

     

    

 

Section 3.03.   Tenant
shall pay the amount of $8,817.50 upon Tenant’s execution of this Lease, which payment shall be applied to the first (1st)
month’s Base Rent hereunder following the Rent Commencement Date. Thereafter, and provided that the Rent Commencement Date has occurred,
Tenant shall pay Base Rent in advance on or before the first day of each and every calendar month during the Term. In the event the Term
ends on a day other than the last day of a calendar month, then the monthly rental for the last fractional month of the Term shall be
appropriately prorated.

 

Section 3.04.   All payments
of any kind (other than Base Rent) payable by Tenant to Landlord under the terms of this Lease shall be collectively referred to in this
Lease as “Additional Rent”. Base Rent and Additional Rent are collectively referred to in this Lease as “Rent”
and may be designated as such in any statutory notice to pay rent or quit the Premises. RENT SHALL BE PAID TO LANDLORD WITHOUT DEDUCTION,
OFFSET, PRIOR NOTICE OR DEMAND, in lawful money of the United States of America at the Building office, or to such other person or at
such other place as Landlord may, from time to time, designate in writing.

 

Landlord and Tenant agree that Tenant shall pay all
Rent and other amounts now due or hereafter to become due to Landlord or its agents as provided for in this Lease, (as and when due) directly
to the following lock-box account via wire or electronic funds transfer:

 

	 	Bank: 	PNC Bank NA
	 	Bank Address: 	249 5th Ave, Pittsburgh, PA 15222
	 	ABA Number: 	043000096
	 	Swift Code: 	PNCCUS33
	 	Account Number: 	86-1172-3378
	 	Account Title: 	1815 Building Co LLC
	 	 	750 Lexington Avenue FL 28 
	 	 	New York, New York 10022

 

Landlord may change, from time
to time on not less than thirty (30) days’ notice to Tenant, any ABA routing information and account number for payments (which
may be provided by a written notice transmitted to Tenant as an attachment to an email Notice).

 

Section 3.05.   Failure
by Landlord to collect Rent due under this Lease during any portion of the Term shall not preclude Landlord from commencing the collection
of such Rent at any subsequent time. If this Lease shall terminate on a day other than the last day of a calendar year, such termination
shall not affect the obligations of Tenant under this Lease with respect to Rent attributable to the period prior to such termination.

 

Article
4

Additional Rent - Taxes

 

Section 4.01.   The term
“Base Year” as used in the Lease shall mean the calendar tax year from January 1, 2021 to December 31, 2021.

 

    4

     

    

 

Section 4.02.   The term
“Comparative Tax Year” as used in this Lease shall mean the calendar tax year from January 1, 2022 to December 31, 2022 and
each subsequent calendar tax year.

 

Section 4.03.   The term
“Tenant’s Tax Increase Participation” shall mean 6.3%.

 

Section 4.04.   Tenant
shall pay to Landlord, as Additional Rent, an amount equal to Tenant’s Tax Increase Participation of any increase in Property Taxes
paid or incurred by Landlord for any Comparative Tax Year in excess of Property Taxes paid or incurred by Landlord for the Base Year.

 

Section 4.05.   Prior
to the commencement of each Comparative Tax Year during the Term, Landlord shall provide to Tenant an estimate of Tenant’s share
of Property Taxes for such Comparative Tax Year and Tenant shall pay to Landlord, in equal advance monthly payments, its share of Property
Tax increases as estimated by Landlord. Tenant’s share of any increase in Property Taxes during any partial Comparative Tax Year
within the Term shall be prorated according to the ratio which the number of days within the Term bears to 365.

 

Section 4.06.   Should
the advance monthly payments by Tenant be insufficient to pay Tenant’s share of Property Tax increases then due, Tenant shall pay
the deficiency upon demand. Any excess paid by Tenant shall be credited to Tenant’s account after the Comparative Tax Year.

 

Section 4.07.   The term
“Property Taxes” as used in this Lease shall mean all real property taxes and personal property taxes, licenses, charges and
assessments which are levied, assessed or imposed by any governmental or quasi-governmental authority or improvement or assessment district
with respect to the Building, the Land on which the Building is situated, the various estates in the Building, or any fixtures, improvements,
equipment or other property of Landlord, real or personal, located in the Building and used in connection with the operation of the Building,
whether or not now customary or within the contemplation of the parties, including without limitation, all taxes payable by Landlord by
reason of its ownership of the Building or the rent receivable therefrom (other than income taxes), any charge upon Landlord’s business
of leasing of the Building (unless payable directly by Tenant), any taxes, charges or assessments for public improvements, services or
benefits, irrespective of when commenced or completed, transit fees, housing funds, education funds, street, highway or traffic fees as
well as taxes which shall be in lieu of such taxes and whether or not any of the foregoing shall be designated “real estate tax,
“property tax”, “sales tax”, “rental tax”, “excise tax”, “business tax”, or
designated in any other manner. In the event that it is not lawful for Tenant to reimburse Landlord for Tenant’s Participation of
any Property Tax, the Rent payable to Landlord under this Lease shall be revised to yield to Landlord the same net Rent from the Premises
after imposition of any such prohibition. If at any time during the Term of this Lease, the laws concerning the methods of real property
taxation prevailing at the commencement of the Term are changed so that a tax or excise on rents or any other such tax, however described,
is levied or assessed against Landlord as a direct substitution of or addition to in whole or in part for any real property taxes, Tenant
shall pay before delinquency its participation share of such substitute tax or excise on rents. The term “Property Taxes”
shall include the cost to Landlord of contesting the amount or validity or applicability of any of the above-mentioned taxes. Net recoveries
through protest, appeals or other actions taken by Landlord in its discretion, after deduction of all costs and expenses, including attorneys
and other fees, shall be deducted from Property Taxes in the year of receipt.

 

    5

     

    

 

Section 4.08.   Intentionally
deleted.

 

Section 4.09.   Any delay
or failure of Landlord in billing any Property Tax increases hereinabove provided shall not constitute a waiver of or in any way impair
the continuing obligation of Tenant to pay such Property Tax increases hereunder.

 

Section 4.10.   In addition
to “Property Taxes” (as hereinabove defined) Tenant shall pay to Landlord each month a sum equal to any sales tax, tax on
Rent and any other similar charges now existing or hereafter imposed, based upon the privilege of leasing the space leased hereunder or
based upon the amount of rent collected therefore, which shall constitute Additional Rent under this Lease.

 

Article
5

Additional Rent - Operating Expenses

 

Section 5.01.   Operating
Expenses. Tenant shall pay to Landlord, as Additional Rent, an operating expense escalation in accordance with this Section:

 

(a)  Definitions:
For the purpose of this Section, the following definitions shall apply:

 

(i) The
term “Expense Base Factor” shall mean the Expenses for the calendar year 2021.

 

(ii) The
term “Comparative Year” shall mean the calendar year following the Expense Base Factor and each subsequent calendar year.

 

(iii) The
term “Percentage” shall mean 6.3%.

 

(iv) The
term “Controllable Expenses” shall mean the expenses described in paragraphs (v) a, d, h, and n below (each a “Controllable
Expense”).

 

    6

     

    

 

(v) The
term “Expenses” shall mean the total of all costs and expenses directly incurred or borne by Landlord with respect to the operation
and maintenance of the Building Project whether performed by Landlord or by contractors for or on behalf of Landlord, including, but not
limited to, the costs and expenses incurred for and with respect to all of the following:

 

a. Wages,
salaries, fees and all related expenses (including, without limitation, vacation pay and other compensation, social security, unemployment
and other similar taxes, worker’s compensation insurance, disability benefits, pensions, hospitalization, retirement plans and group insurance,
uniforms and working clothes and cleaning thereof) of all personnel engaged in and reasonably necessary for the operation, maintenance,
repair and access control of the Building Project and personnel who may provide traffic control relating to ingress and egress to and
from the Building and parking areas serving the Building Project (collectively, the “Parking Area”) to the adjacent public
streets (excluding, however, executive personnel of Landlord [but including the senior property manager and other on-site (i.e., located
within the Building Project) employees, even if an executive of Landlord], and employees senior to the senior property manager, senior
controller, senior accountant and senior engineer [i.e., the property manager, controller, accountant or engineer with the highest level
of seniority irrespective of title]).

 

b. Common
Area Costs (as hereinafter defined).

 

c. Cost
of materials, supplies, tools and equipment for the Building Project.

 

d. Amounts
paid for accounting services in preparing the statements required to be delivered by Landlord under the provisions of this Article.

 

e. Cost
of all maintenance and service agreements for the Building Project and the equipment therein, including but not limited to, access control,
service, window cleaning, elevator maintenance, janitorial services and cleaning.

 

f. Premiums
paid by Landlord for insurance for the Building Project.

 

    7

     

    

 

g. Cost
of painting or otherwise decorating any part of the Building, excluding, however, any space contained therein which is leased to tenants.

 

h. Holiday
decorations for the public portions and the exterior of the Building and the Common Areas.

 

i. Sales,
use and excise taxes paid by Landlord on goods and services purchased or provided by Landlord to manage, operate and maintain the Building
Project.

 

j. License,
permit and inspection fees solely related to the Building Project.

 

k. Reasonable
legal fees and disbursements incurred in connection with routine management and operation of the Building Project.

 

l. Cost
of fuel, gas, water, power, electricity, lighting or other utilities required in connection with the operation and maintenance of the
Building Project, including all tenant space.

 

m. Air
conditioning, ventilation and heating (including, without limitation, repairs, maintenance and replacement of heating, ventilating and
air conditioning equipment) for the Building.

 

n. An
annual fee for management of the Building Project, not to exceed an amount equal to five percent (5%) of the revenues of the Buildings.

 

o. Such
other expenses and costs whether or not herein mentioned which would be construed as an operating expense by an operator of first class
building complexes.

 

The inclusion of any item in
the definition of “Expenses” shall not be construed as requiring Landlord to perform any action or expend any sum unless Landlord
is otherwise required to do so under any other provisions of the Lease.

 

(vi) Expenses
shall not include the following:

 

a. Taxes
which are separately covered in Article 4.

 

    8

     

    

 

b. The
cost of repairing any damage caused by hazards or casualty described in Landlord’s policies of fire insurance and extended coverage endorsements
covering the Buildings or caused by condemnation.

 

c. Renovating
or leasing space for tenants.

 

d. Expenses
of painting and decorating the Premises and the premises of other tenants.

 

e. Depreciation
of the Buildings.

 

f. Cost
of capital improvements, except those which under generally accepted accounting principles are expensed or regarded as deferred expenses
and except for capital expenditures required by law, in either of which cases the cost thereof shall be included in Expenses for the Comparative
Year in which the costs are incurred and subsequent Comparative Years, on a straight line basis, to the extent that such items are amortized
over their useful lives as determined by generally accepted accounting principles, with an interest factor equal to the prime rate of
J.P. Morgan Chase Bank at the time of Landlord’s having incurred said expenditure.

 

g. Interest
on debt and/or amortization payments or any other payments under any mortgage and rental under any ground or underlying lease.

 

h. Real
estate brokerage commissions, advertising costs and other leasing related expenses.

 

i. Landlord’s
income or franchise taxes.

 

j. Any
expense reimbursable to Landlord by a tenant or by insurance.

 

    9

     

    

 

If Landlord shall purchase any
item of capital equipment or make any capital expenditure which actually result in savings or reductions in Expenses, or which is incurred
in connection with Landlord’s obligation to comply with Governmental Requirements not in effect on the Commencement Date, then the
costs for same shall be included in Expenses. The cost of capital equipment or capital expenditures are so to be included in Expenses
for the Comparative Year in which the costs are incurred and subsequent Comparative Years, on a straight line basis, to the extent that
such items are amortized over their useful lives as determined by generally accepted accounting principles, with an interest factor equal
to the prime rate of J.P. Morgan Chase Bank If Landlord shall lease any such item of capital equipment which actually result in savings
or reductions in Expenses, then the Rent and other costs paid pursuant to such leasing shall be included in Expenses for the Comparative
Year in which they were incurred.

 

With regard to each of the Controllable
Expenses, for each calendar year after 2021, Expenses shall include the lower of the Controllable Expense for the calendar year or 105%
of the Controllable Expense for the preceding calendar year.

 

(b) (i)  If the Expenses
for any Comparative Year shall be greater than the Expense Base Factor, Tenant shall pay to Landlord, as additional rent for such Comparative
Year, in the manner hereinafter provided, an amount equal to the Percentage of the excess of the Expenses for such Comparative Year over
the Expense Base Factor (such amount being hereinafter called the “Expense Payment”).

 

Following the expiration of each Comparative
Year, Landlord shall submit to Tenant a statement, certified by Landlord, setting forth the Expense Payment, if any, due to Landlord from
Tenant for such Comparative Year. If such statement shows an Expense Payment due from Tenant to Landlord with respect to the preceding
Comparative Year then Tenant shall pay to Landlord, as additional rent, (a) any unpaid portion of the Expense Payment within ten (10)
days after receipt of such statement; and (b) within ten (10) days after receipt of such statement, an amount equal to one-twelfth (1/12)
of the Expense Payment for the preceding Comparative Year multiplied by the number of months of the current Comparative Year which shall
have elapsed prior to payment of such amount, less any portion thereof already paid; and (c) commencing as of the first day of the month
immediately following the rendition of such statement and on the first day of each month thereafter until a new statement is rendered,
an amount equal to one-twelfth (1/12th) of the Expense Payment. The aforesaid monthly payments based on the total Expense Payment
for the preceding Comparative Year shall be adjusted to reflect, if Landlord can reasonably so estimate, known increases in rates, for
the current Comparative Year, applicable to the categories involved in computing Expenses, whenever such increases become known prior
to or during such current Comparative Year. Notwithstanding the foregoing, Landlord’s estimated Expenses for the current Comparative Year
may be in an amount equal to 110% of the Expenses for the preceding calendar year. The payments required to be made under (b) and (c)
above shall be credited toward the Expense Payment due from Tenant for the then current Comparative Year, subject to adjustment as and
when the statement for such current Comparative Year is rendered by Landlord.

 

    10

     

    

 

(ii) In
no event shall the Base Rent under this Lease be reduced by virtue of this Article.

 

(iii) Upon
the date of any expiration or termination of this Lease (except termination because of Tenant’s default) whether the same be the date
hereinabove set forth for the expiration of the term or any prior or subsequent date, a proportionate share of said Expense Payment for
the Comparative Year during which such expiration or termination occurs shall immediately become due and payable by Tenant to Landlord,
if it was not theretofore already billed and paid.

 

(iv) Landlord’s
and Tenant’s obligation to make the adjustments referred to in subdivision (i) above shall survive any expiration or termination of this
Lease.

 

(v) Any
delay or failure of Landlord in billing any expense escalation hereinabove provided shall not constitute a waiver of or in any way impair
the continuing obligation of Tenant to pay such expense escalation hereunder.

 

(vi) Tenant
shall have no obligation to make any Expense Payment for any time period prior to the Rent Commencement Date.

 

Section 5.02.   (a) “Common
Areas” shall mean all areas, space, facilities, equipment and signs, to the extent made available for the common and joint use and
benefit of Landlord, Tenant and other tenants and occupants of the Building Project and their respective employees, agents, subtenants,
concessionaires, licensees, customers, and other invitees, including but not limited to the parking facilities, driveways, exterior and
interior ramps, truckways, delivery facilities, truck loading areas, roads, walkways, atriums, entranceways, landscaped and planted areas,
all amenities provided to tenants, their employees and visitors, as Landlord shall deem appropriate. Tenant agrees that Landlord may,
at any time and from time to time, increase, reduce or change the number, type, size, location, elevation, nature and use of any of the
Common Areas, relocate entrances and exits, make installations therein, move and remove the same and erect buildings anywhere in the Building
Project.

 

(b) Tenant
and its officers, employees, agents, customers and invitees shall have the nonexclusive right, in common with Landlord and all others
to whom Landlord has granted or may hereafter grant rights, to use the Common Areas, subject to such reasonable rules and regulations
as Landlord may from time to time impose, including the designation of specific areas in which vehicles owned or operated by Tenant, its
officers, employees and agents must be parked and the prohibition of the parking of any such vehicles in any other part of the Common
Areas and in the parking facilities. In the event Tenant, its officers, employees and agents park in other than such designated areas,
Tenant agrees to pay Landlord a parking fee of $50.00 per car per occurrence. Landlord may cause to be towed away, at Tenant’s expense,
any such vehicles which are parked in Common Areas in violation of such rules and regulations, and Tenant waives liability of Landlord
to Tenant in the event that such towing is done. Tenant further agrees, after notice thereof, to abide by such reasonable rules and regulations
and to use its best efforts to cause its officers, employees, agents, customers and invitees to conform thereto. During the Term hereof,
provided Tenant is not then in default hereunder Tenant shall have the use of fourteen (14) unreserved surface parking spaces located
in the parking area of the Building, free of charge, for use by Tenant’s employees and Tenant’s invitees and contractors for
parking while using the Premises. The parking spaces shall be in the vicinity of the Building designated by Landlord and approved by Tenant,
approval not to be unreasonably withheld. Landlord may at any time close temporarily any Common Area to make repairs or changes therein
or to effect construction, repairs or changes within the Building Project, to prevent the acquisition of public rights in such area, or
to discourage unauthorized parking, and may do such other acts in and to the Common Areas as in its judgment may be desirable to improve
the convenience thereof. Tenant shall upon request promptly furnish to Landlord the license numbers of the cars operated by Tenant and
its officers, directors and employees. Notwithstanding the foregoing, it is agreed that (i) Landlord has made no representations or warranties
with respect to the parking area, the number of spaces located therein or access thereto; (ii) Landlord reserves the right to reduce the
number of spaces in the parking area (garage and non-garage) by not more than ten percent (10%) of the then number of parking area spaces
in the parking area and/or change access thereto; and none of the foregoing shall entitle Tenant to any claim against Landlord or to any
abatement of Rent (or any part thereof); and (iii) Landlord has no obligation to provide a parking lot attendant and Landlord shall have
no liability on account of any loss or damage to any vehicle or the contents thereof, Tenant hereby agreeing to bear the risk of loss
for same. Notwithstanding the aforesaid, Tenant’s visitors shall have the right to use short-term unreserved parking spaces, at
no charge, but subject to availability

 

    11

     

    

 

(c) “Common
Area Costs” shall mean all sums incurred in a manner deemed by Landlord to be appropriate and in the best interests of the Building
Project in connection with the operation, maintenance and repair of the Common Areas, including but not limited to, the costs and expenses
of:

 

(i) Operating,
repairing, maintaining, replacing, lighting (including the cost of electricity therefor), cleaning, painting, repaving, striping, and
removal of debris from the Common Areas; removing garbage and trash from the Building Project; installing, maintaining, repairing and
replacing curbs, paving, walkways, utility systems, security systems including policing and guards, lighting systems, (including poles,
bulbs and fixtures) and any Building Project signs and traffic control devices;

 

(ii) Interior
and exterior planting, replanting and replacing of flowers, shrubbery, plants, trees and other landscaping, and all water used to irrigate
flowers, shrubbery, plants, trees and other landscaping, located in or on the Common Areas;

 

(iii) Maintenance,
replacement, repair, inspection and depreciation of all machinery and equipment used in the operation and maintenance of the Common Areas
and all personal property taxes and other charges incurred in connection with such equipment;

 

(iv) All
license and permit fees and any and all parking surcharges that may result from any environmental or other laws, rules, regulations, guidelines
or orders; the cost of obtaining and operating public transportation, if the same are required by any environmental or other law, rule,
regulation, guideline or order; and federal, state or local governmental air and environmental standards, and all costs and expenses incurred
in connection with obtaining any of the foregoing;

 

(v) Music
program services and loudspeaker systems (whether rented or purchased), including the electricity therefor;

 

(vi) On-site
personnel, including without limitation the Building Project manager, manager’s staff, bookkeepers, accountants, security, traffic
and maintenance people to implement the operation, maintenance and repair of the Common Areas (including without limitation, uniforms
and replacements thereof, the payroll taxes and employee benefits of such personnel).

 

    12

     

    

 

Article
6

Late Charge - Interest

 

Section 6.01.  If Rent
is not paid within five (5) days from the date due, Tenant shall pay to Landlord a late charge of four (4%) percent of the amount delinquent.
Landlord and Tenant recognize that the expenses and damages which Landlord would suffer as a result of Tenant’s failure to pay Rent
to Landlord promptly when due are difficult to ascertain and that said late charge represents a fair and reasonable estimate of the expenses
and damages which Landlord would suffer or incur in the event of Tenant’s late payment. The provisions of this Section 6.01 shall
not relieve Tenant from payment of Rent at a time and in the manner specified in this Lease, nor shall this Section 6.01 affect the rights
of Landlord under Section 6.02 (Interest) or Article 23 (Remedies).

 

Section 6.02.  If Tenant
fails to pay any Rent within five (5) days after its due date, Tenant shall pay interest thereon from the date due until the date paid
at the rate of 11⁄2% per month or the highest rate allowed, whichever is less. If any check of Tenant in payment of any sum due under
this lease, including but not limited to Rent, fails to clear the bank, Tenant shall pay a charge of $300.00.

 

Article
7

Security Deposit

 

Section 7.01.   Concurrently
with the execution of this Lease, Tenant shall deposit with Landlord the sum of $32,730.00 (the “Security Amount”) by cash
or Letter of Credit as provided in Section 7.02, as security for the faithful performance and observance by Tenant of the terms, provisions
and conditions of this Lease. Tenant agrees that, in the event that Tenant defaults in respect of any of the terms, provisions and conditions
of this Lease (including the payment of Base Rent and Additional Rent) beyond applicable notice and cure periods, Landlord may notify
the “Issuing Bank” (as such term is defined in Section 7.02) and thereupon receive all or a portion of the monies represented
by the Letter of Credit. Landlord may use, apply, or retain the whole or any part of such Security Amount, to the extent required for
the payment of any rent, additional rent, or any other sum as to which Tenant is in default beyond applicable notice and cure periods,
or for any sum that Landlord may expend or may be required to expend by reason of Tenant’s default, in respect of any of the terms, covenants
and conditions of this Lease (including any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord).
In the event that Landlord applies or retains any portion or all of the proceeds of such Security Amount, Tenant shall, within five (5)
days after demand by Landlord which may be via email, restore the amount so applied or retained. If Tenant shall fail or refuse to make
such additional deposit, Landlord shall have the same rights in law and in equity and under this Lease as it has with respect to a default
by Tenant in the payment of Base Rent. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants
and conditions of this Lease, the Letter of Credit shall be returned to Tenant within thirty (30) days after the expiration date of the
Term and after delivery of possession of the entire Premises to Landlord in the condition provided in this Lease for such delivery of
possession.

 

Section 7.02.   Such letter
of credit (the “Letter of Credit”) shall be a clean, irrevocable and unconditional Letter of Credit issued by any commercial
bank (the “Issuing Bank”) with offices for banking purposes in the City of New York and having a net worth of not less than
$50 billion, which may be drawn upon by a clean sight draft, and which Letter of Credit shall have an initial term of not less than one
year and thereafter having a final expiry date of not earlier than ninety (90) days following the expiration of the Term, shall permit
multiple drawings, shall be transferable by the beneficiary at one or more occasions at no charge to the beneficiary and otherwise be
in form and content satisfactory to Landlord, be for the account of Landlord and be in the amount of the Security Amount. Notwithstanding
the foregoing, if at any time the net worth of the Issuing Bank is less than $50 billion or its rating is downgraded from its current
rating and Landlord delivers notice to Tenant (which may be via email) of either of the foregoing events, Tenant shall replace the existing
Letter of Credit with a Letter of Credit meeting the criteria of Section 7.02 within fifteen (15) days after receipt of such notice. If
Tenant fails to replace the existing Letter of Credit in the manner described in the preceding sentence, Landlord shall have the right
to draw down the entire proceeds and hold the same as cash security pending the replacement of such Letter of Credit.

 

    13

     

    

 

The Letter of Credit shall provide
that:

 

(a) the
Issuing Bank shall pay to Landlord or its duly authorized representative an amount, which may be in multiple or partial drawings of up
to the face amount of the Letter of Credit upon presentation of the Letter of Credit with a sight draft in the amount to be drawn;

 

(b) it
will automatically renew, without amendment, for consecutive periods of one (1) year each thereafter during the Term, unless the Issuing
Bank sends written notice (hereinafter referred to as the “Non-Renewal Notice”) to Landlord by certified or registered mail,
return receipt requested or by nationally recognized overnight courier, not less than ninety (90) days preceding the next expiration date
of the Letter of Credit that it elects not to have the Letter of Credit renewed, and it being agreed that the giving of such Non-Renewal
Notice shall for the purpose of this Article 7 be deemed a default under this Lease, permitting Landlord, if Tenant does not replace the
Letter of Credit with a substitute Letter of Credit meeting the criteria of this Section 7.02 within fifteen (15) days after receipt of
such Non-Renewal Notice, to draw down the entire proceeds pursuant to the terms of Section 7.01 and hold the same as cash security pending
Tenant replacing the Letter of Credit with a substitute Letter of Credit meeting the criteria of this Section 7.02;

 

(c) In
addition to being permitted to draw upon the Letter of Credit pursuant to this Article, Landlord shall be permitted to draw the Letter
of Credit by means of a sight draft and to hold the proceeds as cash security pursuant to Section 7.01 of the Lease in the event one or
more of the following occurs:

 

(i) at
any time the net worth of the Issuing Bank is less than $50 billion or the Issuing Bank’s rating is downgraded from its current
rating and Tenant does not replace the Letter of Credit with one conforming to the requirements of this Section pursuant to Section 7.02;
or

 

(ii) the
Issuing Bank gives a Non-Renewal Notice and Tenant fails to replace the Letter of Credit with a substitute Letter of Credit conforming
to this Section, at least fifteen (15) days after receipt of such Non-renewal Notice; or

 

(iii) the
Letter of Credit will expire in sixty (60) days or less (other than because the expiry date occurs on or after the ninetieth (90th)
day after the end of the Term in accordance with this Section) and Landlord has not then received either a new original Letter of Credit
executed by an Issuing Bank conforming to the requirements of this Article or an original amendment to the Letter of Credit executed by
the Issuing Bank which causes the existing Letter of Credit to conform to the requirements of this Article;

 

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(d) upon
Landlord’s sale of the fee as fee owner or assignment of its estate, as tenant under any ground or underlying lease, the Letter of Credit
shall be transferable by Landlord, as provided in Section 7.03, without charge to Landlord;

 

(e) if
the original Letter of Credit is lost, stolen, mutilated or destroyed, the Issuing Bank will issue a duplicate original Letter of Credit
upon receipt from Landlord of an executed lost Letter of Credit affidavit and indemnity agreement satisfactory to Landlord and without
charge to Landlord;

 

(f) a
sight draft may also be made by facsimile or email transmission; and

 

(g) if
the Tenant, as applicant for the Letter of Credit, fails to pay any imposed fees for any of 7.02 (a) through (f), that the Issuing Bank
shall not delay any of the obligations set forth herein.

 

Section 7.03.   In the
event Landlord’s estate, whether as fee owner or as tenant under any ground or underlying Lease is transferred, or a transfer occurs by
or through a transfer between/among a Landlord entity, Landlord shall have the right to transfer the Security Amount then held by Landlord
to the transferee, and upon delivery to Tenant of an acknowledgment from the new landlord of its receipt of such Security Amount, Landlord
shall thereupon be released by Tenant from all liability for the return of such Security Amount and Tenant shall look solely to the new
Landlord for the return of said Security Amount. It is agreed that the provisions hereof shall apply to every transfer made of the Security
Amount to a new Landlord.

 

Section 7.04.   Tenant
covenants that it will not assign or encumber, or attempt to assign or encumber, the Letter of Credit deposited hereunder as security,
and that neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment, or attempted
encumbrance.

 

Section 7.05.   The use
of the security, as provided in this Article, shall not be deemed or construed as a waiver of Tenant’s default or as a waiver of any other
rights and remedies to which Landlord may be entitled under the provisions of this Lease by reason of such default, it being intended
that Landlord’s rights to use the whole or any part of the security shall be in addition to but not in limitation of any such other rights
and remedies; and Landlord may exercise any of such other rights and remedies independent of or in conjunction with its rights under this
Article.

 

Section 7.06.   Intentionally
deleted.

 

Article
8

Use of Premises and Building

 

Section 8.01.   Tenant
shall use and occupy the Premises only for general, executive and administrative offices in compliance with all applicable laws, rules
and regulations and for uses incidental thereto, and for no other purpose. Access to the Premises shall be permitted by Tenant only to
Tenant and its employees, agents and invitees. Landlord hereby reserves the right to exclude from the Building any person whom it may
consider an improper person or whose presence it considers detrimental to the Building or to Landlord or to any tenants or occupants of
the Building. Landlord may (but is not obligated to) establish such reasonable guard services, control desks or other controls throughout
the Building as necessary to enforce these provisions.

 

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Section 8.02.   Notwithstanding
the provisions of Section 8.01, Tenant shall not use or allow the use of the Premises or any part thereof (1) for the cooking and/or sale
of food; (2) for storage or sale of any alcoholic beverage in the Premises; (3) for the storage and/or sale of any product or material
from the Premises; (4) for manufacturing or printing purposes (other than such incidental printing as Tenant may perform in connection
with the conduct of its usual operation); (5) for the conduct of a school or training facility or similar type of business which results
in the presence of the general public in the Premises; (6) for the conduct of the business of an employment agency or personnel agency;
(7) for the conduct of any public auction or public exhibition; (8) for occupancy by a foreign, United States, state, municipal or other
governmental or quasi-governmental body, agency or department or any authority or other entity which is affiliated therewith or controlled
thereby and which has diplomatic or sovereign immunity or the like with respect to a commercial lease; (9) for messenger or delivery service
(excluding Tenant’s own employees or outside services); (10) as a public stenographer or typist; (11) as a telephone or cellular telephone
company; (12) as a company engaged in the business of renting office(s) or desk space in the Premises; (13) as medical offices or a laboratory;
(14) as a travel agency; (15) as a dating service; (16) as a restaurant; (17) as a night club, discotheque, arcade or like kind establishments;
(18) as a public or quasi-public health facility, radiation treatment facility, methadone clinic or other drug related clinic, abortion
clinic, or for any practice conducted in or through the format of a clinic; (19) as a pawn shop; (20) as an off-track betting parlor;
(21) as a homeless shelter, soup kitchen or similar use; (22) for the sale or display or pornographic products or services; (23) for the
use or storage of flammable liquids or chemicals (unless incidental to a permitted use); (24) as a funeral parlor; (25) for the sale or
grooming of pets; (26) for any form of spiritualist services, such a fortune telling or reading; (27) as a real estate brokerage company,
leasing office or rental agency. Furthermore, the Premises shall not be used for any purpose that would, in Landlord’s reasonable judgment,
tend to lower the first-class character of the Building, create unreasonable or excessive elevator or floor loads, impair or interfere
with any of the Building operations or the proper and economic heating, air-conditioning, cleaning or any other services of the Building,
interfere with the use of the other areas of the Building by any other tenants, or impair the appearance of the Building. Neither Tenant
nor any person within Tenant’s control shall use, generate, store, treat and/or dispose of any Hazardous Materials (as hereinafter defined)
in, on, under or about the Premises.

 

Section 8.03.   If any
governmental license or permit, other than a Certificate of Occupancy or any license or permit is required for the proper and lawful conduct
of Tenant’s business in the Premises, or any part thereof, and if failure to secure such license or permit would in any way affect Landlord,
Tenant, at its expense, shall duly procure and thereafter maintain such license or permit and submit the same for inspection by Landlord.
Tenant shall at all times comply with the terms and conditions of each such license or permit.

 

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Section 8.04.   Tenant
shall not place a load upon any floor of the Premises which exceeds the load per square foot which such floor was designed to carry and
which is allowed by law.

 

Section 8.05.   (a) Business
machines and mechanical equipment belonging to Tenant which cause noise, vibration or any other nuisance that may be transmitted to the
structure or other portions of the Building or to the Premises, to such a degree as to be objectionable to Landlord or which interferes
with the use or enjoyment by other tenants of their premises or the public portions of the Building, shall be placed and maintained by
Tenant, at Tenant’s expense, in settings of cork, rubber or spring type vibration eliminators sufficient to eliminate such objectionable
or interfering noise or vibration.

 

(b) Tenant
acknowledges that the normal operation of the Building of other tenants in the Building may result in ambient noise and vibrations within
the Premises and that the level of ambient noise and vibration will increase if Tenant elects not to have an acoustical ceiling system
in the Premises and/or if Tenant elects not to have carpeting or another similar floor treatment in the Premises. Accordingly, in such
event, and notwithstanding anything to the contrary contained in this Lease, Tenant (rather than Landlord) shall be responsible for the
installation of any soundproofing or other materials in the Premises that may be required in order to reduce such ambient noise and/or
vibration to a level satisfactory to Tenant.

 

Section 8.06. Section 8.06. Tenant
shall not paint or install any signs on the interior or exterior doors or windows of the Premises or any other surface visible to a common
or public area, or install anything inside the exterior windows of the Premises that is visible from the outside of the Building, or otherwise
install any electrically lighted signs in the Premises, without the prior written consent of Landlord, which may be granted or withheld
in Landlord’s sole and absolute discretion. Subject to Landlord’s approval, which shall not be unreasonably withheld or delayed,
Tenant shall have the right to one (1) Building standard sign in the elevator lobby on the floor of the Building on which the Premises
is located, at Tenant’s expense. No fixtures or objects shall be placed in any location other than within the Premises.

 

Section 8.07.   Upon request
of Landlord, Tenant shall immediately remove any sign, advertising material or lettering which Tenant has placed or permitted to be placed
in or about the Premises or Building contrary to the provisions of this Section and, if Tenant fails to do so, Landlord may enter the
Premises and remove the same at Tenant’s expense.

 

Section 8.08.   All approved
signs and lettering on the Premises shall be printed, painted, inscribed, lighted, or affixed at Tenant’s expense or by a person
selected or approved by Landlord, in the quantity, size, style, location, content, color, and material acceptable to Landlord.

 

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Section 8.09.   Furniture,
merchandise, and other bulky objects shall be brought into and removed from the Building only through the freight entrance loading docks
and freight elevators, and the time and manner of movement of such objects shall be subject to the reasonable regulations of Landlord.
No such objects shall be brought into or removed from the Building during any major market exhibition period without the prior written
consent of Landlord. Tenant shall immediately remove all packing materials from all common areas, including freight elevators, lobbies
and loading docks, or be subject to Additional Rent in connection with Landlord’s removal of same. All packing materials left for
removal from the Premises by the janitorial service shall be broken down into pieces that are an easily disposable size. Tenant hereby
assumes all risks and waives all claims against Landlord for any damage to any property or any injury to or death of any person arising
in connection with Tenant’s use of the freight elevator and loading docks, and acknowledges and agrees the provisions of Article
12 (Indemnification) below shall apply in connection with all such use.

 

Section 8.10.   The Premises
shall be used solely for the purposes set forth in this Article and for no other use or purpose. Tenant shall not do or permit anything
to be done in or about the Premises, nor shall Tenant bring or allow anything to be brought into the Premises, which will in any way increase
the rate of any fire insurance or other insurance in any manner. Tenant also shall not do or suffer anything to be done in or about the
Premises which will in any way obstruct or interfere with the rights of other occupants of the Building or injure or annoy said occupants,
nor shall Tenant use or suffer the Premises to be used for any immoral, unlawful or objectionable purposes. In no event shall Tenant cause
or suffer to be caused any nuisance in or about the Premises, and no loudspeakers or similar devices shall be used without the prior written
approval of Landlord. Tenant further agrees not to commit or suffer to be committed any waste in or upon the Premises. Tenant shall not
vacate or abandon the Premises. The provisions of this paragraph are for the benefit of Landlord only and shall not be construed to be
for the benefit of any other tenant or occupant of the Building.

 

Section 8.11.   Tenant
shall not do or permit to be done in or about the Premises, nor bring or keep or permit to be brought or kept in or about the Premises,
anything which is prohibited by or will in any way conflict with any law, statute, ordinance or other governmental rule, regulation or
requirement now in force or which may hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense, promptly comply
with all of said governmental measures and also with the requirements of any building codes, health and safety codes, and board of fire
underwriters, or other similar body now or hereafter constituted, insofar as any of the aforesaid requirements relate to or affect the
condition, use or occupancy of the Premises, excluding structural changes not related to or affected by Tenant’s alterations, additions
or improvements. Without limiting the generality of the foregoing, Tenant shall be responsible for making any alterations or improvements
to the Premises and for providing any auxiliary aids or services that may be required pursuant to the terms of the Americans with Disabilities
Act of 1990, 42 U.S.C. Section 12101-12213, all regulations issued thereunder and the Accessibility Guidelines for Buildings and Facilities
issued pursuant thereto, together with similar Federal, state and local laws, as the same are in effect on the date hereof and may be
hereafter modified, amended or supplemented (collectively referred to as “Disability Laws” and “ADA”). The judgment
of any court of competent jurisdiction or the admission of Tenant in any judicial action, regardless of whether Landlord is a party to
such action, that Tenant has violated any governmental measures or requirements shall be conclusive of that fact as between Landlord and
Tenant. Tenant shall indemnify, defend and hold Landlord harmless from any and all demands, claims, losses, costs or damages, including,
without limitation, reasonable attorneys’ fees, suffered or incurred by Landlord as a result of Tenant’s failure to perform
the covenants contained in this Section. Tenant’s failure to comply with any applicable law, order, ordinance, rule or regulation
shall be a material event of default under this Lease if such failure continues beyond a reasonable time after Tenant has Notice thereof.
The provisions of this Section shall survive the Expiration Date or earlier termination of this Lease with respect to any noncompliance
occurring prior to such Expiration Date or such earlier termination of this Lease. If any lender or governmental agency shall ever require
testing to ascertain whether or not there has been any release of Hazardous Materials, then the reasonable costs thereof shall be reimbursed
by Tenant to Landlord upon demand as additional charges if such requirement applies to the Premises.

 

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Section 8.12.   Tenant
agrees that during the Term, Tenant shall not use, dispose, store, generate, leak, treat, manufacture, import, handle, process, or release
any Hazardous Materials (as defined below) on, from or under the Premises or the Building or Land (individually and collectively, “Hazardous
Use”) except to the extent that, and in accordance with such conditions as, Landlord may have previously approved in writing in
its sole and absolute discretion and in compliance with Environmental Laws (as defined below). It is further agreed that Tenant shall
be entitled to use and store only those Hazardous Materials which are (i) set forth in a list prepared by Tenant and approved in writing
by Landlord, (ii) necessary for Tenant’s business, but then only in the amounts and for the purposes previously disclosed in writing
to and approved in writing by Landlord, and (iii) in full compliance with all Environmental Laws and all judicial and administrative decisions
pertaining to such Environmental Laws. For the purposes of this Article, the term Hazardous Use shall include Hazardous Use(s) on, from
or under the Premises by any of the Tenant Parties described in Article 13, whether known or unknown to Tenant. “Environmental Laws”
means 33 U.S.C. Section 1251 et seq., 42 U.S.C. Section 6901 et seq., 42 U.S.C. Section 7401 et seq., 42 U.S.C. Section 9601 et seq.,
or any successor(s) thereto, and all other local, state and federal laws, judgments, ordinances, orders, rules, regulations, codes and
other governmental restrictions, guidelines and requirements, any amendments and successors thereto, replacements thereof and publications
promulgated pursuant thereto, which deal with or otherwise in any manner relate to, air or water quality, air emissions soil or ground
conditions or other environmental matters of any kind. Tenant, at its expense, shall comply with all such Environmental Laws solely with
respect to the Premises and its business and operations. Tenant shall inform Landlord of any actual, suspected or threatened violation
of any Environmental Law with respect to the Premises or any actual, suspected, or threatened Hazardous Material activity on, at, in,
under or above the Premises and any litigation, claim, demand, proceeding, enforcement action, regulatory action or investigation arising
from any actual, suspected or threatened condition arising from any other environmental matter, or any such litigation, claim, proceeding
or investigation that is suspected or threatened. “Hazardous Materials” means any wastes, materials or substances (whether
in the form of liquids, solids or gas, and whether or not air-borne), which are or are deemed to be (1) pollutants or contaminants, or
which are or are deemed to be hazardous, toxic, ignitable, reactive, corrosive, dangerous, harmful, injurious, noxious or a nuisance,
or which present a risk to public health or to the environment, or which are or may become regulated by or under the authority of any
applicable local, state or federal laws, judgments, ordinances, orders, rules, regulations, codes or other governmental restrictions,
guidelines or requirements, any amendments or successor(s) thereto, replacements thereof or publications promulgated pursuant thereto,
including, without limitation, any such items or substances which are or may become regulated by any of the Environmental Laws; or (2)
a pesticide, petroleum (including crude oil or any fraction thereof), asbestos or any asbestos-containing material, a polychlorinated
biphenyl, radioactive material, or urea formaldehyde. If any lender or governmental agency shall ever require testing to ascertain whether
or not there has been any release of Hazardous Materials, then the reasonable costs thereof shall be reimbursed by Tenant to Landlord
upon demand as additional charges if such requirement applies to the Premises. In addition, Tenant shall execute affidavits, representations
and the like from time to time at Landlord’s request concerning Tenant’s best knowledge and belief regarding the presence
of Hazardous Substances or Materials on the Premises. In all events, Tenant shall indemnify Landlord in the manner elsewhere provided
in this Lease from any release of Hazardous Materials on the Premises occurring while Tenant is in possession, or elsewhere if caused
by Tenant or persons acting under Tenant. Tenant’s obligations and liabilities under this Section shall survive the Expiration Date
or earlier termination of this Lease. In no event shall Tenant be liable for any costs, losses or claims due to the presence of hazardous
materials in the Premises (i) which were placed in the Premises prior to Tenant’s occupancy (other than as a result of Tenant’s
acts or omissions), or (ii) placed in the Premises due to the acts or omissions of Landlord or Landlord’s contractors, or any persons
or parties other than Tenant and persons acting under Tenant.

 

Section 8.13.   Tenant
shall faithfully comply with the reasonable rules and regulations for the Building, a current copy of which is attached to this Lease
as Schedule C (“Rules and Regulations”), together with all modifications and additions to such Rules and Regulations as may
be adopted by Landlord from time to time in writing. Landlord shall not be responsible for the non-performance by any other tenant or
occupant of the Building of any of said Rules and Regulations. Landlord agrees to enforce the Rules and Regulations in a reasonably non-discriminatory
manner.

 

Section 8.14.   During
the term of this Lease, Tenant shall have access to the Premises twenty-four (24) hours a day, seven (7) days a week, subject to emergencies,
security and governmental requirements.

 

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Article
9

Services and Utilities

 

Section 9.01.  Provided Tenant
is not in default under any of the terms, covenants and conditions of this Lease, the Rules and Regulations of the Building, and subject
to all applicable provisions contained elsewhere in this Lease, Landlord shall furnish to the Premises, the following services:

 

(a)
Normal ventilation and air conditioning during the periods from 7:00 A.M. to 6:00 P.M. each business day and from 8:00 A.M. to
1:00 P.M. on Saturdays (excepting Sundays and holidays), as required in the reasonable judgment of Landlord, for comfortable use and occupancy
of the Premises, subject to any Rules and Regulations of any local, state or any other government authority.

 

(b)
 Passenger and freight elevator service through use of existing facilities.

 

(c)
Landlord shall cause the Premises to be cleaned in a Building Standard manner. Tenant shall pay to Landlord on demand the costs
incurred by Landlord for (a) extra cleaning work in the Premises required because of (i) misuse or neglect on the part of Tenant or its
employees or visitors, (ii) use of portions of the Premises for preparation, serving or consumption of food or beverages, data processing
or reproducing operations, private lavatories or toilets or other special purposes requiring greater or more difficult cleaning work than
office areas, (iii) unusual quantity of interior glass surfaces, (iv) non-building standard materials or finishes installed by Tenant
or at its request, and (b) removal from the Premises and the Building of so much of any refuse and rubbish of Tenant as shall exceed that
ordinarily accumulated daily in the routine of business office occupancy. Landlord, its cleaning contractor and their employees shall
have after-hours access to the Premises as reasonably required for the purpose of cleaning the Premises in accordance with Landlord obligations
hereunder. If, however, any additional cleaning of the Premises is to be done by Tenant, it shall be done at Tenant’s expense, in
a manner reasonably satisfactory to Landlord and no one other than persons approved by Landlord shall be permitted to enter the Premises
or the Building for such purpose. Tenant, at its own cost, may utilize its own employees or award a contract to outside contractors approved
by Landlord to perform cleaning services in the Premises, provided such employees or outside contractors do not cause any labor disruption
or dispute. However, prior to making such award, Tenant shall inform Landlord of the terms upon which such contractor shall provide such
cleaning services and, in the event that Landlord’s designated contractor can provided such cleaning services on equal or better
terms, Tenant shall award such contract to Landlord’s designated contractor. Tenant shall pay for the cost of the services performed
by such designated contractor with ten (10) days after being billed.

 

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Section 9.02.  In the event
any Building services are used in excess of the days and hours set forth in Section 9.01 above by reason of Tenant’s longer hours,
additional business days, or use different than other tenants of the Building, Tenant shall pay Landlord monthly for such additional usage
as Additional Rent upon Landlord’s presentation of invoices. In addition, Tenant shall pay the cost of any power usage by Tenant
that is in excess of the wattage allowance. For purposes of this Article, the term “wattage allowance” shall mean the product
obtained by multiplying the Premises usable lease space by five (5) watts per usable square foot. Tenant shall also pay the cost of any
transformers, additional risers, panel boards and other facilities, if and to the extent required to furnish power for lighting and office
equipment with a combined connected load in excess of the wattage allowance. Tenant shall pay to Landlord the cost of any meters and their
installation and maintenance, any additional cost incurred by Landlord in accounting for the resources consumed, and for the amount of
the additional resources consumed at the rates charged by the public utility or agency furnishing the same. Tenant shall also pay any
additional costs, including without limitation, administrative costs and the cost of security and other personnel, incurred by Landlord
in connection with such excess usage.

 

Section 9.03.  If Tenant
shall request Landlord to provide any additional services or perform any work not required under this Lease, inclusive of, but not limited
to: (a) providing after hours air conditioning or ventilation; or (b) providing after hours elevator service; and Landlord agrees to provide
or perform the same, then Tenant shall pay the Landlord the agreed upon charges therefor at the Building’s standard rate then being
charged to tenants in the Building prior to Landlord’s providing such additional services or performing additional work. Such charges
shall be deemed Additional Rent.

 

Section 9.04.  Landlord
shall not be liable for any failure to provide or for any reduction in any of the above services or utilities if such failure or reduction
is caused by the making of repairs or improvements to the Premises or to the Building, the installation of equipment, Acts of God or
the elements, labor disturbances of any character, or any other accidents or conditions whatsoever beyond the reasonable control of Landlord,
or rationing or restrictions on the use of said services and utilities due to energy shortages or other causes, whether or not any of
the above result from acts or omissions of Landlord. Furthermore, Landlord shall be entitled to cooperate voluntarily in a reasonable
manner with the efforts of national, state or local governmental bodies or utilities suppliers in reducing energy or other resources
consumption, other than as may be expressly set forth in this Lease.

 

Section 9.05.  Initially,
Landlord shall provide to Tenant, without charge, five (5) listings on the lobby Building directory and, thereafter, edits to such listings. 
Subject to Landlord’s consent which shall not be unreasonably withheld, Tenant, at its expense, may place a sign on its entry door
(or, if Building-wide standard, on the wall next to the entry door).

 

Section 9.06.  Additional
services requested by Tenant (which may be made by email and authorized by Tenant’s officers, principals, employees, and contractors)
may be provided to Tenant by an affiliate of Landlord on terms and conditions as may be agreed to between Tenant and such affiliate. 
The charges for such services may be invoiced either by Landlord or such affiliate and, if required by Landlord, shall be paid in advance.
Regardless of the invoicing party, Tenant acknowledges that Landlord is authorized as the affiliate’s agent (for the account of
the affiliate) to collect such charges, and enforce the collection of such the charges, as additional rent, and in the event of any late
payment or nonpayment of the same, Landlord shall have, with respect thereto, all the rights and remedies under the Lease afforded to
Landlord with respect to a late payment or nonpayment of additional rent.

 

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Article
10

Electricity

 

Section 10.01.

 

(a)
Landlord shall furnish electric energy on a rent inclusion basis to the Premises, the charges therefor being included in the Base
Rent. The amount included in the Base Rent is based upon the normal use of such electric energy between the hours of 7:00 A.M. to 6:00
P.M. on Mondays through Fridays and 8:00 A.M. to 1:00 P.M. on Saturdays, excepting Sundays and holidays, for lighting and for the normal
use of lamps, typewriters, personal computers and similar customary office machines. Landlord shall not be liable in any way for any loss,
damage or expense that Tenant may sustain or incur by reason of any failure, change, interruption or defect in the supply or character
of electric energy furnished to the Premises by reason of any requirement, act or omission of the Electric Service Provider or Alternate
Service Provider (as said terms are hereinafter defined) serving the Building with electricity and no such failure, change, interruption
or defect shall constitute an actual or constructive eviction, in whole or in part, or entitle Tenant to any abatement of Base Rent or
additional rent or relieve Tenant of its obligations under this Lease, unless any such failure, change, interruption or defect shall be
caused by Landlord’s gross negligence or willful misconduct. Tenant shall furnish and install, at its sole cost and expense, all
lighting fixtures, tubes, lamps, bulbs, ballasts and outlets relating to Tenant’s electrical equipment.

 

(b)
Landlord has advised Tenant that presently Florida Power & Light (“Electric Service Provider”) is the utility company
selected by Landlord to provide electricity service for the Building. Notwithstanding the foregoing, if permitted by law, Landlord shall
have the right at any time and from time to time during the term of this Lease to either contract for service from a different company
or companies providing electricity service (each such company shall hereinafter be referred to as an “Alternate Service Provider”)
or continue to contract for service from the Electric Service Provider.

 

(c)
Tenant shall cooperate with Landlord, the Electric Service Provider, and any Alternate Service Provider at all times and, as reasonably
necessary, shall allow Landlord, Electric Service Provider, and any Alternate Service Provider reasonable access to the Building’s electric
lines, feeders, risers, wiring, and any other machinery within the Premises.

 

Section 10.02. Tenant’s connected electrical load in the Premises, including lighting, shall not at any time exceed the capacity of any of the
electrical conductors and equipment in or servicing the Premises. In order to insure that such capacity is not exceeded and to avert possible
adverse effect upon the Building electric service, Tenant shall not, without Landlord’s prior consent in each instance, which consent
shall not be unreasonably withheld, connect any additional fixtures, appliances or equipment (other than as set forth in Section 10.01)
or make any alteration or addition to the electric system of the Premises existing on the Commencement Date. Should Landlord grant such
consent, all additional risers, transformers, panel boards and other equipment required therefor, shall be provided by Landlord and the
cost thereof shall be paid by Tenant upon Landlord’s demand. As a condition to granting such consent, Landlord may require Tenant to agree
to an increase in the annual Base Rent by an amount which will reflect the value to Tenant of the additional service to be furnished by
Landlord, that is the potential additional electrical energy to be made available to Tenant based upon the estimated additional capacity
of such additional risers or other equipment. If Landlord and Tenant cannot agree thereon, the amount of such increase shall be determined
by a reputable, independent electrical engineer or consultant, to be selected by Landlord whose fees or charges shall be paid by Tenant.

 

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Section 10.03. If, during the term of this Lease, the public utility rate for the supply of electric current to the Building shall be increased
or if there shall be an increase in taxes or if additional taxes shall be imposed upon the sale or furnishing of such electric energy
(hereafter collectively as the “cost”) the annual Base Rent shall be increased by an amount arrived at by multiplying $12,344.50
(or the sum to which said sum may have been increased pursuant to the provisions of Section 10.02 and Section 10.03 prior to the effective
date of the cost increases; such sum being referred to herein as the “Rent Inclusion Factor”) by the percentage of the increase
of such cost. When the amount of such increase is so determined, Landlord and Tenant shall execute an agreement supplementary hereto to
reflect such increase in the amount of the Base Rent payable and effective from the effective date of such increase, but such increase
shall be effective from such date whether or not such a supplementary agreement is executed. The Rent Inclusion Factor as of the date
of this Lease has been incorporated into the annual Base Rent for each Year of the Term. Accordingly, if the Rent Inclusion Factor is
increased pursuant to the provision of this Section, the Base Rent payable for the remainder of the Term shall be increased accordingly
and shall reflect such increase and any prior increases pursuant to this Section.

 

Section 10.04. If and so long as Landlord provides electricity to the Premises on a submetering basis as provided in Section 10.05 below, Tenant
shall purchase the same from Landlord or Landlord’s designated agent at charges, and under terms and rates, set from time to time during
the term by Landlord, but not more than what Tenant would pay for such consumption of electricity if it purchase such connected load and
usage of electricity from the public utility servicing the Building pursuant to which Landlord purchases electric current for the Building
plus all taxes and a fee equal to ten (10%) percent of such charges representing agreed upon administrative and overhead costs to Landlord.
Where more than one meter measures the service of Tenant in the Building, the service rendered through each meter may be computed and
billed separately in accordance with the rates herein. Bills therefor shall be rendered at such times as Landlord may elect and the amount,
as computed from a meter, shall be deemed to be, and be paid as, additional rent within ten (10) days after the same are rendered.

 

Section 10.05. Landlord reserves the right, at any time upon thirty (30) days’ notice, to change its furnishing of electricity to Tenant
from a rent inclusion basis to a submetering basis, or vice versa. Landlord reserves the right to discontinue furnishing electric energy
on a rent inclusion basis, submetering or any other basis at any time, whether or not Tenant is in default under this Lease, upon not
less than thirty (30) days’ notice to Tenant. If Landlord exercises such right of discontinuance, this Lease shall continue in full force
and effect and shall be unaffected thereby, except only that, from and after the effective date of such discontinuance, Landlord shall
not be obligated to furnish electric energy to Tenant, and the Base Rent payable under this Lease shall be reduced by an amount per annum
equal to the then prevailing Rent Inclusion Factor. If Landlord so elects to discontinue furnishing electric energy to Tenant, Tenant
shall arrange to obtain electric energy directly from the public utility company furnishing electric service to the Building or the Alternate
Service Provider. Notwithstanding the foregoing, Landlord shall not discontinue furnishing electric energy until Tenant is able to obtain
such electric energy directly from said public utility or the Alternate Service Provider. Such electric energy may be furnished to Tenant
by means of the then existing Building system feeders, risers and wiring to the extent that they are available, suitable and safe for
such purposes. Unless required by reason of Landlord’s voluntary act, in which event the same shall be installed by Landlord at
its expense, but maintained by Tenant at its expense. All meters and additional panel boards, feeders, risers, wiring and other conductors
and equipment which may be required to obtain electric energy directly from such public utility company, and which are to be located within
the Premises, shall be installed and maintained by Tenant at its expense.

 

Section 10.06. If any additional charge or tax is imposed upon Landlord with respect to electric energy furnished to Tenant by any federal, state
or municipal authority, Tenant, unless prohibited by law or by any governmental authority having jurisdiction thereover, shall pay to
Landlord, within ten (10) days following Landlord’s demand, accompanied by copies of all relevant bills or back-up documentation, Tenant’s
pro rata share of such additional charge or tax, without mark-up to Landlord.

 

Section 10.07. At no time shall Tenant’s connected electrical load in the Premises, including lighting, exceed five (5) watts per usable square
foot.

 

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Article
11

Alterations

 

Section 11.01.
Tenant shall not make or suffer to be made any alterations, additions or improvements to the Premises or any part thereof, including
the attachment of any fixtures or equipment, without obtaining Landlord’s prior written consent. When applying for such consent,
Tenant shall furnish complete plans and specifications for such alterations, additions or improvements.

 

Section 11.02.
All alterations, additions, fixtures and improvements, whether temporary or permanent in character and regardless of whether made
or installed pursuant to this Article or otherwise, that are made in or upon the Premises either by Landlord or Tenant, shall at once
become part of the Premises and belong to Landlord and, at the end of the Term, shall remain on the Premises without compensation of any
kind to Tenant except as otherwise provided in this Lease. Movable furniture, equipment, and fixtures that can be removed without substantial
damage to the Premises, shall remain the property of Tenant. Notwithstanding any other provision contained in this Lease, Tenant agrees
that it shall, upon Landlord’s request, at its sole cost and expense, promptly remove any Specialty Alterations (hereinafter defined)
designated by Landlord to be removed and repair any damage to the Premises resulting from such removal prior to the Expiration Date. For
purposes hereof, the term “Specialty Alterations” means any items identified by Landlord at the time it approves Tenant’s
Work which are non-standard office space installation/improvement, including, without limitation, bathrooms, transportation systems (e.g.
elevators and escalators), and internal stairwells, structural reinforcement for high density storage cabinets, editing suites, screening
rooms, insert stages, gyms, vaults, raised floors, UPS equipment, other structural alterations or specialty mechanical, electrical and
plumbing work not generally found in office space in a Class A office building in the vicinity of the Building Project. Notwithstanding
the foregoing, Tenant, at its expense, shall cause all wiring and cabling (except such wiring and cabling referred to in the previous
sentence) installed in the Premises by Tenant’s contractor to be removed on or before the Expiration Date of this Lease and shall
repair any damage to the Premises caused by such removal. Upon the Expiration Date or earlier termination of this Lease, Tenant shall
surrender the Premises to Landlord, together with all alterations, additions, fixtures, improvements and repairs which have been made
thereto, in the same condition as delivered, ordinary wear and tear (other than that which could have been avoided by Tenant’s proper
maintenance and repair of the Premises) and damage by fire, earthquake, Act of God or the elements excepted.

 

Section 11.03.
Tenant shall provide to the Premises, at its sole cost and expense, all interior partitions, lighting fixtures, wall and floor
coverings, painting and other interior improvements suitable for a first class Building, all of which shall be of the highest quality
and design consistent with the standards generally observed by Landlord and the other tenants in the Building. All such improvements shall
be made by a licensed and insured general contractor approved in writing by Landlord pursuant to plans and specifications, not to exceed
24” x 36” in size, approved in writing by Landlord in the manner set forth in Schedule B-1 and Schedule B-2 prior to the commencement
of any work. In connection with any request by Tenant of Landlord that Landlord approve a contractor or subcontractor, Tenant shall cause
the proposed contractor or subcontractor to complete and submit to Landlord such reasonable questionnaire, if any, as Landlord shall require
as part of Landlord’s contractor integrity program. Thereafter, Tenant agrees to cooperate with Landlord in connection with the
implementation of such program and to cause its contractors to comply therewith. Landlord reserves the right to engage its own engineer
or architect to review the Tenant’s plans and specifications, and the cost of such professional fees shall be payable as Additional
Rent by Tenant to Landlord within fifteen (15) days of Landlord’s written demand. Landlord’s approval of such plans and specifications
shall not constitute an opinion or warranty that same are suitable, practical or in conformity with applicable building codes. All change
orders must be approved in writing by Landlord. Tenant shall pay to Landlord an amount equal to ten (10%) percent of the cost of all Tenant’s
work, excluding Tenant’s Initial Work (hereinafter defined) and Cosmetic Work (hereinafter defined), for supervision, coordination
and other expenses incurred by Landlord in connection therewith. All work undertaken by or on behalf of Tenant shall comply with the terms
set forth in Schedule B-1 and Schedule B-2, as the same may be amended by Landlord from time to time. Tenant shall, at its sole cost and
expense, obtain all necessary governmental or quasi-governmental permits, licenses and approvals associated with the alterations to be
performed by or on behalf of Tenant. Landlord agrees, without cost to Landlord, to cooperate reasonably with Tenant in Tenant’s
efforts in obtaining all necessary Building permits with respect to any work to be performed by Tenant in the Premises. Upon completion
of any improvements, Tenant agrees to provide Landlord with a Final General Contractor’s Affidavit, pursuant to the Florida Construction’s
Lien Law, Chapter 713 of the Florida Statutes, confirming that the general contractor and all subcontractors have been paid in full, and
Tenant shall deliver to the Building management office a reproducible copy of the “as built” drawings of the improvements
in both paper and electronic CAD (either DWF or DWG) formats. Notwithstanding the provisions of the Lease to the contrary, Tenant shall
not be required to obtain Landlord’s consent for (x) those alterations which (i) do not require a building permit to meet any Governmental
Requirements, (ii) do not affect the structure of the Building or the Building’s mechanical and electrical systems and (iii) the cost
of which does not exceed $25,000.00 during any twelve (12) month period or (y) any painting, carpeting, or the installation of any cabling
by Tenant (clauses (x) and (y) are hereinafter collectively referred to as “Cosmetic Work”).

 

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Section 11.04.
Except as may be otherwise provided in this Lease, all cost of construction shall be borne by Tenant. Construction costs shall
include all direct and indirect costs of construction including, without limitation, costs of obtaining necessary permits, contractors’
fees, costs of materials, architects’ fees, utilities fees and charges, the costs associated with any additional heating, ventilating
or air conditioning capacity required by Tenant, costs of complying with applicable building codes, including without limitation, compliance
with ADA as more particularly described in Section 8.10, and all other costs associated with improving the Premises from their present
state or making any other change or improvement to the Building or its services required by Tenant’s use or improvements. Without
limiting the generality of the foregoing, in the event that, because the Premises and/or the Building as initially constructed do not
comply with current building codes or other laws, including, without limitation, laws in connection with life-fire safety, physical handicap
(including without limitation ADA), and/or hurricane safety, and Tenant incurs increased design or construction costs that it would not
have incurred had the Premises and/or the Building been in compliance with such laws applicable to new construction as of the Commencement
Date, such additional costs shall nonetheless be borne by Tenant.

 

Section 11.05.
Landlord may enter upon the Premises from time to time to make those repairs or alterations to the Premises or the Building which
it is obligated or wishes to make which shall include without limitation, the right to erect, use and maintain pipes and conduits in and
through the walls, plenum or below the floors of the Premises. Landlord may place columns, shafts, vertical penetrations, electrical closets,
mechanical closets or ducts in the Premises and Tenant’s Rental shall be reduced proportionately on a per square foot basis for
any space in the Premises taken by Landlord. In any area in which there is a drop ceiling, the space between the upper face of the drop
ceiling tile and the lower face of the floor slab immediately above the drop ceiling is referred to as the “plenum”. In any
area in which there is no drop ceiling, all of the space that is below and within four feet of the lower face of the horizontal slab immediately
above the floor of the area is referred to as the “plenum”. Notwithstanding the foregoing, Landlord may not take more than
a total of ten (10%) percent of the Premises nor make any such improvements if such would substantially interfere with Tenant’s
use of the Premises after their construction. Any such improvements shall be made by Landlord in a manner that is reasonably calculated
not to disturb Tenant’s use and occupancy of the Premises the least, provided, however, that Landlord shall not be required to incur
any additional cost or expense (such as overtime charges for work to be performed after hours or premium labor) in order to minimize the
disruption to Tenant’s business. Landlord shall have the right, from time to time throughout the Term, in Landlord’s sole
discretion and without incurring any liability to Tenant, and without it constituting an eviction, to change the appearance, size and/or
arrangement of common areas and entrances to and exists from common areas, to expand, reduce or alter parking areas, and/or to temporarily
block common areas for the purposes of maintenance, remodeling or expansion.

 

Section 11.06.
Landlord has no obligation to alter, add to, improve, repair, remodel or paint the Premises except as specifically set forth in
this Lease. Tenant shall, at all times during the Term of this Lease, at its sole cost and expense, keep the Premises and every part thereof,
in good and sanitary order, condition and repair, ordinary wear and tear and damage thereto by fire, earthquake, Act of God or the elements
excepted. Without limiting the generality of the foregoing, Tenant shall, at Tenant’s sole expense, keep, maintain and replace as
necessary, all floor coverings, interior exposed plumbing, exposed electrical wiring, fixtures and equipment and any other items located
in the Premises, and shall procure any necessary service maintenance contracts for same, regardless of whether any of said items were
installed or paid for by Landlord or Tenant. Tenant hereby waives all benefits of and rights under Florida Statute § 83.201 and under
any similar law, statute, or ordinance now or hereafter in effect. All repairs shall include replacement or substitution where necessary
and shall be at least equal to quality, class and value of the property repaired, replaced, or substituted and shall be done in a good
and workmanlike manner. Notwithstanding the aforesaid, Tenant shall not be responsible for any maintenance or repair obligations to the
extent same is an obligation of Landlord under Section 11.08 below.

 

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Section 11.07.
To the fullest extent permitted by law, Tenant waives all claims it may have against Landlord, and against the other Landlord Parties
(as defined in Article 12), for injury or damage to person or property sustained by Tenant or by any occupant of the Premises, or by any
other person, resulting from any part of the Building or any equipment or appurtenances being out of repair, or resulting, directly or
indirectly, from any accident in or about the Building or from any act or neglect of any tenant or occupant of any part of the Building
or of any other person, unless such damage is a result of the gross negligence or intentional tortious act of one or more of the Landlord
Parties. All personal property belonging to Tenant or any occupant of the Premises that is located in or on any part of the Building shall
be the sole risk and responsibility of Tenant or of such other person, and Landlord and the other Landlord Parties shall not be liable
for any damage to such property or from the theft or misappropriation of such property, unless such damage, theft or misappropriation
is a result of the gross negligence or intentional tortious act of one or more of the Landlord Parties. Without limiting the generality
of the foregoing, Landlord shall not be liable for any damage to any property, or person, at any time in the Premises or the Building,
from gas or electricity, or from water or rain, whether they may leak into, issue or flow from, any part of the Building, or from the
pipes or heating or air conditioning apparatus of the same, if any, or from any other place.

 

Section 11.08.
Landlord, at Landlord’s sole cost and expense, agrees to keep in good condition and repair all Common Areas, the foundations,
exterior walls and windows, structural portions of the Building Project (including, without limitation, load-bearing walls, the floor
slab, roof, roof membrane, gutters and downspouts), the elevators and the HVAC, mechanical, electrical, plumbing, fire protection, sprinkler,
and life safety systems installed in and/or servicing the Building Project (excluding, however, any plumbing inside the Premises or any
heating, air conditioning or lighting equipment in the Premises exclusively serving the Premises, which repair shall be Tenant’s
sole responsibility), unless required to repair any damage or injury to the Building or any Building system or equipment caused by Tenant
moving property in and out of the Building, or by installation or removal of personalty or resulting in damage from negligence of Tenant
or contractors, customers, invitees, and visitors of Tenant, in which event, such repairs shall be made by Tenant at Tenant’s expense
to the reasonable satisfaction of Landlord. Landlord shall undertake and perform necessary repairs or maintenance commencing as soon as
practicable after receiving written notice of necessary repairs or maintenance from Tenant, and Landlord shall diligently and continuously
pursue such maintenance or repair until completion.

 

Article
12

Liens

 

Section 12.01.
Tenant shall not permit any mechanics’, materialmen’s or other liens to be filed against the real property of which
the Premises form a part, nor against the Tenant’s leasehold interest in the Premises, arising out of any work performed, materials
furnished or obligations incurred by Tenant. Without limiting the generality of the foregoing, Tenant shall, timely after Tenant’s
receipt of any bills, invoices or statements from Tenant’s contractors or subcontractors, pay the same in full directly to the contractor(s)
or subcontractor(s) to whom payment is due. Tenant shall also take all steps reasonably necessary to obtain appropriate mechanic’s
lien releases when making such payments; provided, however, that Tenant shall have the right to reasonably contest the accuracy or legitimacy
of such bills, invoices and statements by refusing to make payment when Tenant in good faith determines that payment is not due in whole
or in part. In the event that Tenant does dispute or contest such bills, Tenant shall, promptly upon the written request of Landlord,
record at Tenant’s sole cost and expense, a Mechanic’s Lien Release Bond to free the Premises from the applicable mechanic’s
lien. If, because of any act or omission (or alleged act or omission) of Tenant any mechanic’s or other lien, charge or order for
the payment of money shall be filed against the Premises or the Building or Landlord’s estate in the Building Project (whether or
not such lien, charge or order is valid or enforceable as such), for work claimed to have been for, or materials furnished to, Tenant,
Tenant, at Tenant’s expense, shall cause it to be canceled or discharged of record by bonding or otherwise within twenty-five (25)
days after such filing, and Tenant shall indemnify Landlord against and save Landlord harmless from and shall pay all reasonable costs,
expenses, losses, fines and penalties, including, without limitation, reasonable attorneys’ fees, resulting therefrom. Any bond
posted by Tenant shall comply with the requirements set forth in Florida Statute § 713.24, as amended from time to time. If Tenant
fails to do so, Landlord may, without waiving its rights and remedies based on such breach by Tenant and without releasing Tenant from
any obligations, cause such liens to be released by any means it deems proper, including payment in satisfaction of the claim giving rise
to such lien. Tenant shall pay to Landlord, upon demand, any sum paid by Landlord to remove such liens together with Landlord’s
costs and attorneys’ fees and interest on said sums at the rate set forth in Section 6.02.

 

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Section 12.02.
Subject to Section 12.01, Tenant may contest any claim of lien provided, however, that Tenant’s right to contest shall apply
only until a final judgment is rendered in any proceeding brought to enforce or foreclose the lien. If any judgment is obtained for a
foreclosure of the lien, Landlord shall have the right to apply the bond or funds furnished by Tenant in satisfaction of the judgment.

 

Article
13

Indemnification

 

Section 13.01.
For purposes of this Article, the term “Tenant Parties” refers singularly and collectively to Tenant and Tenant’s
officers, directors, shareholders, members, managers, partners, agents, employees and independent contractors, as well as to all persons
and entities claiming through any of these persons or entities. The term “Landlord Parties” refers singularly and collectively
to Landlord, its mortgagees, and the partners, venturers, trustees, officers, directors, shareholders, members, managers, parents, subsidiaries
and any other affiliated entities, representatives, assigns, licensees, beneficiaries, agents and employees of Landlord and its mortgagees.

 

Section 13.02.
To the fullest extent permitted by law, Tenant shall, at Tenant’s sole expense and with counsel reasonably acceptable to
Landlord, indemnify, defend and hold harmless the Landlord Parties from and against all claims, demands, costs, losses, liabilities and
damages, including without limitation, reasonable attorneys’ fees (individually, a “Claim” and collectively, “Claims”),
from any cause arising out of or relating, directly or indirectly, to this Lease, the tenancy created under this Lease, or the Premises,
including without limitation:

 

(a)
The use or occupancy, or manner of use or occupancy, of the Premises or Building by the Tenant Parties:

 

(b)
Any act, error, omission or negligence of any of the Tenant Parties or of any invitee, guest or licensee of Tenant in, on or about
the Premises, the Building or the real property underlying same;

 

(c)
Tenant’s conduct of its business;

 

(d)
Any alterations, activities, work or things done, omitted, permitted, allowed or suffered by any of the Tenant Parties in, at or
about the Premises or Building, including the violation of or failure to comply with any applicable laws, statutes, ordinances, standards,
rules, regulations, orders, decrees or judgments in existence on the date of this Lease or enacted, promulgated or issued after the date
of this Lease; and

 

(e)
Any breach or default in performance of any obligation on Tenant’s part to be performed under this Lease, whether before
or during the Lease Term or after the Expiration Date or earlier termination, including without limitation the provisions of Section 8.08.

 

Section 13.03.
This indemnification shall extend to and include Claims for:

 

(a)
Injury to any persons, including without limitation, death at any time resulting from such injury; and

 

(b)
Loss of, injury or damage to, or destruction of, tangible property, including without limitation all loss of use resulting from
such loss, injury damage or destruction.

 

Section 13.04.
Notwithstanding the foregoing, the indemnification provided in this Article shall not apply to any of the Landlord Parties to the
extent that a final judgment of a court of competent jurisdiction establishes that a Claim against any such Landlord Party was proximately
caused by the gross negligence or willful misconduct of such Landlord Party.

 

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Section 13.05.
Tenant’s agreement to indemnify Landlord is not intended to and shall not:

(a)
Restrict, limit or modify Tenant’s insurance and other obligations under this Lease, such indemnity covenants being independent
of Tenant’s insurance and other obligations;

 

(b)
Be restricted, limited or modified by Tenant’s compliance with the insurance requirements and other obligations under this
Lease; or

 

(c)
Relieve any insurance carrier of its obligations under policies required to be carried under this Lease, to the extent that such
policies cover, or if carried would have covered, the matters subject to Tenant’s indemnification obligations.

 

Section 13.06.
Landlord Parties shall not be liable for any damage to property of Tenant or of others entrusted to employees of the Building,
nor for the loss of or damage to any property of Tenant by theft or otherwise, except if due to the negligence or willful act of Landlord
Parties. Landlord Parties shall not be liable for any injury or damage to persons or property resulting from fire, explosion, falling
plaster, gas, electricity, water, rain or leaks from any part of the Building or from the pipes, appliances or plumbing works or from
the roof, street or sub-surface or from any other place or by dampness or by another cause of whatsoever nature, except if due to the
negligence or willful act of Landlord Parties; nor shall Landlord Parties be liable for any such damage caused by other tenants or persons
in the Building or caused by operations in construction of any public or quasi-public work; nor shall Landlord parties be liable for any
latent defect in the Premises or in the Building. If, at any time any windows of the Premises are permanently closed, darkened or bricked
up by reason of the requirements of law or temporarily closed or darkened by reason of repairs, alterations or maintenance by Landlord
Parties, Landlord Parties shall not be liable for any damage Tenant Parties may sustain thereby and Tenant Parties shall not be entitled
to any compensation therefor nor abatement of Rent nor shall the same release Tenant Parties from its obligations hereunder nor constitute
an eviction.

 

Section 13.07.
The provisions of this Article shall survive the Expiration Date or earlier termination of this Lease until all claims against
the Landlord Parties involving any of the indemnified matters are fully, finally and absolutely barred by the applicable statutes of limitations.

 

Article
14

Insurance

 

Section 14.01.
Tenant shall purchase at its own expense and keep in force during the Term of this Lease (i) a policy of commercial general liability
insurance, including blanket contractual liability, naming Landlord (and Landlord’s designees) as additional insureds, protecting
and indemnifying Landlord and Tenant against any and all claims for public liability, bodily injury, personal injury, death, bodily injury
and property damage occurring upon, in or about the Premises, and the public portions of the Building in connection with any act of Tenant,
its employees, agents, contractors, customers, invitees and visitors, including, without limitation, personal injury, death and property
damage resulting from any work performed by or on behalf of Tenant, in the amount of not less than $3,000,000.00 combined single limit
for personal injury, death, bodily injury and property damage arising out of one occurrence or accident, such coverage may be provided
through any combination of primary and excess insurance, (ii) all risk property insurance utilizing the special form including sprinkler
damage, vandalism and malicious mischief and theft insurance, insuring of Tenant’s work, and the personal property, furniture, furnishings
and fixtures belonging to Tenant located on the Premises for not less than one hundred (100%) of their full replacement value and including
business income (business interruption) insurance which does not include an exclusion that would disable coverage for an incident triggered
by an epidemic or pandemic; and (iii) workers’ compensation insurance, with coverage as required by the State of Florida. The aforesaid
policies of insurance shall: (a) be issued by an insurance company which is reasonably acceptable to Landlord, licensed to do business
in the State of Florida and rated not less than an A.M. Best Rating of “A-IX”; (b) provide that said insurance shall not be
canceled unless thirty (30) days’ prior written notice shall have been given to Landlord; and (c) be primary with respect to Landlord
and provide that any other insurance maintained by Landlord is excess and non-contributing with such insurance. All deductibles and self-insured
retentions under Tenant’s policies are subject to Landlord’s prior written approval. A duplicate of said policy or a certificate
thereof, together with a copy of the additional insured endorsement, shall be delivered to Landlord by Tenant by the Commencement Date
and upon each renewal of said insurance. The coverage afforded to Landlord must be at least as broad as that afforded to Tenant and may
not contain any terms, conditions, exclusions or limitations applicable to Landlord that do not apply to Tenant. Landlord may require
Tenant to increase the amount of such coverage if, in Landlord’s reasonable opinion, the amount of such coverage is no longer equal
to prevailing standards. Tenant’s failure to procure and maintain the insurance required by this Article shall constitute a material
default by Tenant under this Lease. Tenant may procure the required coverages under blanket or master policies, provided that the coverage
afforded thereby otherwise complies in all respects with the requirements set forth in this Section. Tenant’s insurance shall name
1815 Building Company, LLC as the certificate holder and name each of the following as additional insureds: 1815 Building Company, LLC,
Cohen Brothers Development Corporation of Florida LLC, Cohen Brother Realty Corporation of Florida LLC, Cohen Brothers Realty Corporation,
Cohen Brothers Equities Ltd., Cohen Cleaning and Service Company LLC, Fortress Credit Corp. Landlord may change Landlord’s additional
insureds from time to time on thirty (30) days’ notice to Tenant.

 

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Section 14.02.
Landlord and Tenant hereby waive any right that each may have against the other on account of any loss or damage arising in any
manner which is covered by all risk property insurance utilizing a special form, including sprinkler damage, vandalism and malicious mischief
and theft. The parties each agree to have their respective insurance companies waive any rights of subrogation that such companies may
have against Landlord or Tenant, as the case may be, and to provide written evidence of such agreement to the other party upon request.
If and to the extent that such waiver or permission can be obtained only upon payment of an additional charge, then, the party benefiting
from the waiver or permission shall pay such charge upon demand, or shall be deemed to have agreed that the party obtaining the insurance
coverage in question shall be free of any further obligations under the provisions hereof relating to such waiver or permission.

 

Section 14.03.
Tenant shall not do or permit to be done any act or thing in or upon the Premises which will invalidate or be in conflict with
the certificate of occupancy for the Building or the Premises or the terms of the insurance policies covering the Building and the property
and equipment therein; and Tenant, at its expense, shall comply with all rules, orders, regulations and requirements of any underwriting
body having jurisdiction, and of the insurance carriers, and shall not knowingly do or permit anything to be done in or upon the Premises
in a manner which increases the rate of insurance for the building or any property or equipment therein over the rate in effect on the
Commencement Date. Landlord represents that Tenant’s permitted uses as set forth in this lease will not violate provisions of this
Section.

 

Section 14.04.
If, by reason of Tenant’s failure to comply with the provisions of Section14.03 or any of the other provisions of this Lease,
the rate of insurance for the Building or the property and equipment of Landlord shall be increased to an amount higher than on the Commencement
Date, Tenant shall pay to Landlord any additional or increased insurance premiums to the extent resulting therefrom thereafter paid by
Landlord, and Tenant shall make such payment within ten (10) days after demand of Landlord.

 

Article
15

Assignment and Subletting

 

Section 15.01.
Tenant shall not sell, assign, encumber or otherwise transfer by operation of law or otherwise, this Lease or any interest herein,
sublet the Premises or any part thereof, or permit any other person to occupy or use the Premises or any portion thereof, without the
prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed, subject to the requirements hereinafter
set forth in this Section 15.01.  In the event Tenant seeks Landlord’s consent to an assignment or subletting, Tenant shall
give Landlord written notice of such request.  In connection with each consent requested by Tenant, Tenant shall submit to Landlord
a conformed signed photocopy of the proposed assignment or sublease together with an abstract of the material terms of the assignment
or sublease, the identity of the parties to the transaction, the proposed documentation for the transaction, the sum of Three Thousand
Five Hundred ($3,500.00) dollars on account of Landlord’s legal and administrative costs in connection with the assignment or subletting
and all other information reasonably requested by Landlord concerning the proposed transaction and the parties involved.  Subject
to the provisions of Section 15.04 following receipt of such notice, Landlord may, upon written notice to Tenant, elect to terminate this
Lease if an assignment or if a sublease of more than fifty percent (50%) of the Premises for the remainder of the Term, terminate as to
the space so affected.  If Landlord so terminates this Lease if an assignment or a sublease terminates with respect to such space,
Landlord may, if it elects, enter into a new lease with the intended assignee or subtenant or any other person on such terms as Landlord
and such person may agree.  Tenant shall not be entitled to any portion of the profit, if any, which Landlord may realize on account
of such termination and reletting.  Landlord’s exercise of its aforesaid rights shall not be construed to impose any liability
upon Landlord with respect to any real estate brokerage commission(s) or any other costs or expenses incurred by Tenant in connection
with its proposed subletting or assignment.  Without limiting the other instances in which it would be reasonable for Landlord to
withhold its consent to a proposed assignment or subletting, Tenant acknowledges and agrees that it would be reasonable for Landlord to
withhold its consent if, in Landlord’s opinion, the proposed assignee or subtenant: (i) would adversely affect the tenant mix in
the Building and/or the other buildings in the vicinity owned by Landlord; (ii) does not have a reputation at least comparable to that
of other tenants in the Building showing similar types of merchandise; (iii) would put the Premises to a use that would violate any exclusive
use rights granted by Landlord to any other tenant; (iv) does not have, in Landlord reasonable business judgment, sufficient net worth,
operating income or creditworthiness to fulfill the obligations of Tenant under this Lease; (v) is the occupant of other space located
in the Building Project; or (vi) is a person with whom Landlord is currently negotiating to lease in space in the Building, as identified
by Landlord upon prior written request of Tenant.

 

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Section 15.02.
Any subletting or assignment by Tenant shall not result in Tenant being released or discharged from any liability under this Lease.
The acceptance of rental by Landlord from any other person shall not be deemed to be a waiver by Landlord of any provision of this Lease.
In the event of default by any assignee of Tenant or any successor of Tenant in the performance of any of the terms of this Lease, Landlord
may proceed directly against Tenant without the necessity of exhausting remedies against such assignee or successor. Landlord may consent
to subsequent assignments or sublettings or to amendments of or modifications to this Lease with assignees of Tenant without notifying
Tenant, or any successor of Tenant, and without obtaining its or their consent to such amendments or modifications, and such action shall
not relieve Tenant of liability under this Lease. As a condition to Landlord’s prior written consent as provided for in this Article,
assignee shall agree in writing to comply with and be bound by all of the terms, covenants, conditions, provisions and agreements of this
Lease, and Tenant shall deliver to Landlord, within ten (10) days prior to its effective date, an executed copy of each sublease or assignment,
as the case may be, and in the case of an assignment, an agreement by the assignee to perform and be bound by all of the terms and provisions
of this Lease. Said documents shall be in form reasonably satisfactory to Landlord. Landlord’s consent to any one sale, assignment,
encumbrance, subletting, occupation or other transfer shall not be deemed to be a consent to any subsequent such occurrence and any such
transaction which does not comply with the provisions of this Article shall be void and shall constitute a material event of default under
this Lease.

 

Section 15.03.
Intentionally deleted.

 

Section 15.04.
If Tenant or any subtenant is a corporation, partnership, limited liability company or other entity, the provisions of Section 15.01
and Section 15.06 shall apply to a transfer (by one or more transfers) of a majority of the stock, partnership, membership or other ownership
interests in Tenant or the subtenant, as the case may be, as if such transfer of a majority of the stock, partnership, membership or ownership
interests of Tenant or the subtenant were an assignment of this Lease, provided, however, that if Tenant is not in default under this
Lease then Landlord shall not unreasonably withhold Landlord’s consent to a bona fide transaction (i.e. – the transaction
is for a good business purpose and not principally for the purpose of transferring this Lease) by the named Tenant with (a) a corporation
into or with which the named Tenant is merged or consolidated, or (b) the parent entity that owns all of the shares or membership interests
of the named Tenant or a wholly owned subsidiary of the named Tenant (so long as such parent entity remains the parent of the named Tenant
or such subsidiary remains a wholly owned subsidiary of the named Tenant), provided, further, that in any of such events, after such merger,
consolidation, assignment or transaction (i) the assignee or successor to Tenant has a net worth computed in accordance with generally
accepted accounting principles at least equal to the greater of (a) the net worth of Tenant immediately prior to such merger, consolidation,
assignment or transaction, or (b) the net worth of Tenant herein named on the date of this Lease, and (ii) proof satisfactory
to Landlord of such net worth shall have been delivered to Landlord at least ten (10) business days prior to the effective date of any
such transaction, including the most recent audited financial statements, including a balance sheet, an income statement and a cash flow
statement for the current year and the prior year.

 

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Section 15.05.
With respect to each and every sublease or subletting authorized by Landlord under the provisions of this Lease, it is further
agreed:

 

(a)
No subletting shall be for a term ending later than one day prior to the expiration date of this Lease;

 

(b)
No sublease shall be valid, and no subtenant shall take possession of the Premises or any part thereof, until an executed counterpart
of such sublease has been delivered to Landlord;

 

(c)
Each sublease shall provide that it is subject and subordinate to this Lease and to the matters to which this Lease is or shall
be subordinate, and that in the event of termination, re-entry or dispossess by Landlord under this Lease Landlord may, at its option,
take over all of the right, title and interest of Tenant, as sublessor, under such sublease, and such subtenant shall, at Landlord’s
option, attorn to Landlord pursuant to the then executory provisions of such sublease, except that landlord shall not (i) be liable for
any previous act or omission of Tenant under such sublease, (ii) be subject to any offset, not expressly provided in such sublease, which
theretofore accrued to such subtenant against Tenant, or (iii) be bound by any previous modification of such sublease or by any previous
prepayment of more than one month’s rent.

 

Section 15.06.
If Landlord shall give its consent to any assignment of this Lease or to any sublease, Tenant shall in consideration therefor,
pay to Landlord, as additional rent:

 

(a)
in the case of an assignment, or an assignment by any sublessee of any sublease, an amount equal to all sums and other considerations
paid to Tenant by the assignee for or by reason of such assignment or paid to Tenant by any sublessee or other person claiming through
or under Tenant for such assignment (including, but not limited to, sums paid for the sale of Tenant’s or sublessee’s fixtures,
leasehold improvements, equipment, furniture, furnishings or other personal property). The sums payable under this Section 15.06(a) shall
be paid to Landlord as and when paid by the assignee to Tenant; and

 

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(b)
in the case of a sublease by Tenant or by any sublessee or other person claiming through or under Tenant, an amount equal to any
rents, additional charge or other consideration payable under the sublease to Tenant by the subtenant or paid to Tenant by any such sublessee
or other person claiming through or under Tenant in connection with such subletting, which is in excess of the Base Rent and additional
rent accruing during the term of the sublease in respect of the subleased space (at the rate per square foot payable by Tenant hereunder
or such sublease) pursuant to the terms of this Lease or such sublessee (including, but not limited to, sums paid for the sale or rental
of Tenant’s or such sublessee’s fixtures, leasehold improvements, equipment, furniture or other personal property). The sums payable
under this Section 15.06(b) shall be paid to Landlord as and when paid by the subtenant to Tenant.

 

Section 15.07.
In the event that (a) Landlord fails to exercise any of its options under this Article and consents to a proposed assignment or
sublease, and (b) Tenant fails to execute and deliver the assignment or sublease to which Landlord consented within sixty (60) days after
the giving of such consent, then, Tenant shall again comply with all of the provisions and conditions of this Article before assigning
this Lease or subletting all or part of the Premises.

 

Section 15.08.
The listing of any name other than that of Tenant, whether on the doors of the Premises or the Building directory, if any, or otherwise,
shall not operate to vest any right or interest in this Lease or in the Premises, nor shall it be deemed to be the consent of Landlord
to any assignment or transfer of this Lease or to any sublease of the Premises or to the use or occupancy thereof by others. Tenant may
have its name listed on the Building lobby directory.

 

Section 15.09.
.(a) If this Lease is assigned, or if the Premises or any part thereof be underlet or occupied by anybody other than Tenant,
Landlord may, after default by Tenant, collect rent from the assignee, undertenant or occupant, and apply the net amount collected to
the rent herein reserved, but no assignment, underletting, occupancy or collection shall be deemed a waiver of the provisions hereof,
the acceptance of the assignee, undertenant or occupant as tenant, or a release of Tenant from the further performance by Tenant of covenants
on the part of Tenant herein contained. The consent by Landlord to an assignment or underletting shall not in any way be construed to
relieve Tenant from obtaining the express consent in writing of Landlord to any further assignment or underletting other than pursuant
to the provisions of Section 15.04 hereof.

 

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(b)
The joint and several liability of Tenant and any immediate or remote successor in interest of Tenant and the due performance of
the obligations of this Lease on Tenant’s part to be performed or observed shall not be discharged, released or impaired in any respect
by any agreement or stipulation made by Landlord extending the time of, or modifying any of the obligations of, this Lease, or by any
waiver or failure of Landlord to enforce any of the obligations of this Lease.

 

Article
16

Landlord: Rights and Limitations

 

Section 16.01.
Upon reasonable advance notice to Tenant, which notice may be oral, written or email, and shall not be required in an emergency,
Landlord shall have the right to enter the Premises to: (a) inspect them, (b) supply any service to be provided to Tenant under this Lease,
(c) show the Premises to prospective purchasers, lenders or tenants, and, during the last one hundred eighty (180) days of the Term, show
the Premises to prospective tenants and post “for lease” signs at the Premises, (d) post notices of non-responsibility, (e)
alter, improve or repair the Premises and any portion of the Building, (f) determine whether Tenant is complying with all of its obligations
under this lease; and (g) erect scaffolding and other necessary structures, where required by the work to be performed, all without reduction
of Rent. Landlord shall at all times have a key to unlock all of the doors in and about the Premises, excluding Tenant’s vaults
and safes, and Landlord shall have the right to use any means which Landlord deems proper to open said doors in an emergency, and any
such entry to the Premises shall not, under any circumstances, be construed or deemed to be a forcible or unlawful entry into the Premises,
a detainer of the Premises or an eviction of Tenant from any portion of the Premises. Tenant shall not change any entry locks to the Premises
without Landlord’s prior written consent, which shall not be unreasonably withheld so long as Landlord can continue to gain entry
to the Premises using one of Landlord’s pass keys subsequent to such change.

 

Section 16.02.
All covenants and agreements to be kept or performed by Tenant under the terms of this Lease shall be kept or performed by Tenant
at Tenant’s sole cost and expense and without any reduction of Rent. If Tenant shall be in default on its obligations under this
Lease to pay any sum of money other than payment of Rent or perform any other act under this Lease, and if such default is not cured within
any applicable grace period, Landlord may, but shall not be obligated to, make such payment or perform any such act on Tenant’s
part without waiving its right based upon default of Tenant and without releasing Tenant from any obligations under this Lease. All sums
so paid by Landlord and all incidental costs, together with interest thereon at the rate set forth in Article 5 of this Lease, from the
date of such payment or the incurring of such cost by Landlord, whichever occurs first, shall be deemed Additional Rent and paid to Landlord
on demand. In the event of nonpayment by Tenant, Landlord shall have, in addition to any other rights or remedies under this Lease, the
same rights and remedies as in the case of default.

 

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Section 16.03.
In the event that Landlord sells or conveys the Building, Landlord shall be released from any liability arising thereafter based
upon any of the terms, covenants or conditions, express or implied, which are contained in this Lease and the purchaser at such sale or
any subsequent sale of the Building, or any successor-in-interest to Landlord (such purchaser or successor-in-interest being referred
to hereafter as the “Purchaser”), shall be deemed without any further agreement between the parties or their successors in
interest or between the parties and any such Purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations
of the Landlord under this Lease arising after the date of such sale. In addition, provided the Purchaser expressly assumes, in writing,
all of Landlord’s obligations under this Lease existing prior to the date of such sale, Landlord shall be entirely freed and relieved
of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrence
or omission occurring prior to the consummation of such sale or otherwise based upon any of the terms, covenants or conditions, express
or implied, which are contained in this Lease. In such event, Tenant agrees to look solely to the Purchaser for any liability existing
on the part of Landlord under this Lease prior to the date of such sale. Except as set forth in this Section, this Lease shall not be
affected by any sale or conveyance of the Building by Landlord, and Tenant agrees to attorn to the Purchaser.

 

Section 16.04.
Anything contained in this Lease to the contrary notwithstanding, Tenant agrees that it shall look solely to the estate and property
of Landlord in the Building and the real property on which it is located, subject to any and all Underlying Leases and Encumbrances, for
the collection, satisfaction or enforcement of any judgment (or other judicial, administrative or arbitration proceeding) requiring the
payment of money, or the performance or non-performance of any acts by Landlord, in the event of any default or breach by Landlord with
respect to any of the terms, covenants and conditions of this Lease to be observed or performed by Landlord. No other assets of the Landlord
or of any general partner, limited partner, shareholder, director, officer, member, manager, affiliate or agent of Landlord will be subject
to levy, execution or other procedures for the satisfaction of any remedy, judgment or order of Tenant. Tenant agrees that the foregoing
limitations shall be applicable to any obligation or liability of Landlord, whether expressly contained in this Lease or imposed by statute
or at common law.

 

Section 16.05.
Landlord may, without abatement of Rent, enter the Premises for alteration, renovation, or decoration during the last thirty (30)
days of the Lease Term if Tenant has removed substantially all of Tenant’s property. Any such entry or work by Landlord shall not
be deemed an eviction or disturbance of Tenant’s use and occupancy.

 

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Article
17

Casualty

 

Section 17.01.
In the event the Building or Premises are damaged by any casualty which is covered under fire and extended coverage insurance carried
by Landlord, then Landlord shall repair such damage, provided insurance proceeds are available to pay the cost of repair and provided
such repair in Landlord’s opinion can be completed within one hundred twenty (120) days after the commencement of the work. In such
event, this Lease shall continue in full force and effect, except that Tenant shall be entitled to an abatement of Rent for that portion
of the Premises that is rendered unusable by Tenant in the conduct of its business (the “Untenable Space”) during the Abatement
Period, as defined below, unless the damage or destruction is due to the fault or neglect of Tenant. Notwithstanding the foregoing, Landlord
shall have the right to terminate this Lease in the event that twenty five (25%) percent or more of the Premises are damaged during the
last two (2) years of the Term of this Lease, or if the Building or Premises cannot be repaired as required by this Section under applicable
laws and regulations, notwithstanding the availability of insurance proceeds, or if the Building shall be so damaged that Landlord shall
decide to demolish it or to rebuild it (whether or not the Premises shall have been damaged). For purposes of this Section, the “Abatement
Period” shall mean the period from the date of the casualty until the earlier of (i) the date on which Landlord, in its reasonable
discretion, determines that the Untenantable Space is usable for the ordinary conduct of Tenant’s business, other than details or
adjustments that do not materially interfere with Tenant’s ability to use and occupy such Untenantable Space for such purpose, and
(ii) the date that Tenant or any other occupant of the Premises takes possession of all or any portion of the Untenantable Space. Notwithstanding
the foregoing provisions of this Section 19.01, if Landlord does not substantially complete such repairs within nine (9) months from the
date of such casualty, Tenant may elect to terminate this Lease by notice to Landlord within ten (10) days following the expiration of
such time period, and thereupon the term of this Lease shall expire on the thirtieth (30th) day after such notice is given,
and Tenant shall vacate and surrender the Premises to Landlord, unless within such thirty (30) day period, Landlord substantially completes
such restoration or rebuilding in which event this Lease shall remain in full force and effect.

 

Section 17.02.
In the event that sufficient insurance proceeds are not available, or if the restoration in Landlord’s opinion cannot be
completed within one hundred twenty (120) days after the commencement of the work, then Landlord shall have the option either to (1) repair
or restore such damage, this Lease continuing in full force and effect, but the Rent to be proportionately abated as provided in this
Article, or (2) give notice to Tenant at any time within thirty (30) days after the event giving rise to such damage terminating this
Lease as of a date to be specified in such notice, which date shall be not less than thirty (30) nor more than sixty (60) days after giving
such notice. In the event of the giving of such notice, this Lease shall expire and all interest of Tenant in the Premises shall terminate
on the date specified in Landlord’s notice and the Rent, reduced by any proportionate abatement as provided in this Article, shall
be paid through the date of such termination. Landlord shall refund to Tenant any Rent previously paid in advance for any period of time
subsequent to the date of termination.

 

Section 17.03.
In the event the building is totally destroyed or is so damaged that Landlord decides not to repair or rebuild the same, this Lease
shall be terminated effective as of the date of the damage.

 

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Section 17.04.
Landlord shall not be required to repair any injury or damage by fire or other cause or to make any restoration or replacement
of any property of Tenant or any alterations, additions, fixtures or improvements installed on the Premises by or at the expense of Tenant,
or any paneling, decorations, partitions, railings, floor coverings, fixtures or any other improvements or property installed in the Premises
by Tenant or at the direct or indirect expense of Tenant. Tenant shall be required to restore or replace all of such items in the event
of damage. Except for abatement of Rent, if any, Tenant shall have no claim against Landlord for any damage suffered by reason of any
such damage, destruction, repair or restoration, nor shall Tenant have the right to terminate this Lease pursuant to any statutory provision
now or hereafter in effect pertaining to the damage and destruction of the Premises or the building, all of which provisions are hereby
expressly waived by Tenant.

 

Section 17.05.
If Lease is terminated by Landlord pursuant to this Article, any unused balance of security deposited by Tenant and any prepaid
Rent unearned as of the Effective Date of Termination shall be refunded to Tenant.

 

Article
18

Eminent Domain

 

If the whole of the Building
or the Premises shall be taken or appropriated under the power of eminent domain or conveyed in lieu thereof, Landlord shall have the
right to terminate this Lease. If any part of the Building or the Premises shall be taken or appropriated under power of eminent domain
or conveyed in lieu thereof, Landlord may terminate this Lease at its option. In either of such events, Landlord shall receive any and
all compensation, damages, income, rent, awards, or any interest therein whatsoever which may be paid or made in connection with such
taking, and Tenant shall have no claim against Landlord for the value of the unexpired portion of the Term or otherwise. If a part of
the Premises shall be so taken or appropriated or conveyed and Landlord shall not elect to terminate this Lease and the Premises have
been damaged as a consequence of such partial taking or appropriation or conveyance, the Landlord shall restore the Premises continuing
under this Lease at the Landlord’s cost and expense; provided, however, that Landlord shall not be required to repair
or restore any injury or damage to the property of Tenant or to make any repairs or restoration of any alterations, additions, fixtures
or improvements installed on the Premises, regardless of whether any of such items were initially installed or paid for by Landlord or
Tenant. Thereafter, the Rent to be paid under this Lease for the remainder of its Term shall be proportionately reduced, such reduction
to be based upon the extent to which the partial taking or appropriation or conveyance shall interfere with the business carried on by
Tenant on the Premises.

 

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Article
19

Surrender of Premises

 

Section 19.01.
Tenant shall, upon the termination of this Lease or on the expiration of the Term, surrender the Premises broom clean, trash free,
and in good condition, reasonable wear and tear excepted.

 

Section 19.02.
Tenant shall remove all trade fixtures and furniture upon the termination of this Lease or the expiration of the Term, and shall
immediately repair all damage to the Premises and the Building caused by such removal, ordinary wear and tear and casualty damage excepted.
Any trade fixtures or furniture remaining after termination or expiration may be packed, transported, and stored at a public warehouse
at Tenant’s expense. If, within ten (10) days after written demand by Landlord, Tenant fails to remove the trade fixtures or furniture
or, if removed by Landlord, fails to pay the removal expenses, the trade fixtures or furniture may be deemed abandoned property by Landlord
and may be disposed of as Landlord deems appropriate.

 

Article
20

Holdover

 

Section 20.01.
Any holding over after the Expiration Date with the written consent of Landlord shall be a tenancy from month-to-month upon the
same terms, covenants and conditions contained in this Lease, except that the monthly Base Rent shall be determined by Landlord and contained
in the written consent. Landlord or Tenant may thereafter terminate such tenancy on thirty (30) days written notice. Acceptance by Landlord
of Rent after the Expiration Date shall not result in any other tenancy or any renewal of the Term of this Lease, and the provisions of
this Article shall be in addition to and shall not affect Landlord’s right of re-entry or other rights provided under this Lease
or by applicable law.

 

Section 20.02.
In the event of any holding over after the Expiration Date without Landlord’s written consent, then Tenant shall pay to Landlord
for each day of such holding over two hundred percent (200%) of the amount of the daily Base Rent in effect for the last month prior to
the Expiration Date or earlier date of termination and the Additional Rent. Tenant shall also indemnify, defend and hold Landlord harmless
from any loss, cost, damage, claim, demand or liability resulting from Tenant’s delay in surrendering the Premises, including, without
limitation, any claims made by any succeeding tenant based on such delay.

 

Section 20.03.
Tenant’s obligation to pay Additional Rent shall continue in accordance with Articles 4 and 5 with the Base Year unchanged,
during the period of any holding over with or without Landlord’s consent.

 

Section 20.04.
Any tenancy pursuant to this Article shall be subject to all terms and provisions of the Lease as were applicable when the Term
was in effect excepting only the amount of Base Rent determined pursuant to the provisions of this Article.

 

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Article
21

Insolvency or Bankruptcy

 

Section 21.01.
At Landlord’s option, Landlord may declare a breach of this Lease:

 

(a)
if Tenant shall (i) make a general assignment for the benefit of creditors, (ii) become insolvent or admit in writing its inability
to pay its debts as they become due, (iii) file a petition in bankruptcy, (iv) be adjudicated as bankrupt or insolvent, (v) file a petition
in any proceeding seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under
any present or future statute, law or regulation, (vi) file an answer admitting or failing timely to contest the material allegations
of a petition filed against it in any such proceeding, or (vii) seek or consent to or acquiesce in the appointment of any trustee, receiver
or liquidator of Tenant or any material part of its properties; or

 

(b)
if (i) within ninety (90) days after the commencement of any proceeding against Tenant seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such proceeding
shall not have been dismissed, or (ii) within ninety (90) days after the appointment without the consent or acquiescence of Tenant, of
any trustee, receiver or liquidator of Tenant or of any material part of its properties, such appointment shall not have been vacated;
or

 

(c)
if this Lease or any estate of Tenant under this Lease shall be levied upon under any attachment or execution and such attachment
or execution is not vacated within five (5) days.

 

Section 21.02.
Notwithstanding any cure periods otherwise set forth in this Lease on the happening of any such event or at any time thereafter,
this Lease shall terminate five (5) days after written notice of termination from Landlord to Tenant (which five (5) day period shall
include the three (3) day notice period provided in Florida Statute §83.20 et seq. In no event shall this Lease be assigned
or assignable by operation of law or by voluntary or involuntary bankruptcy proceedings or otherwise and in no event shall this Lease
or any rights or privileges under this Lease be an asset of Tenant under any bankruptcy, insolvency, or reorganization proceedings. Nothing
contained in this Article shall be construed as altering or waiving Landlord’s rights under Article 14 above (Assignment and Subletting)
in the event that any provisions of this Article are not enforceable as a matter of law.

 

Section 21.03.
Tenant agrees that if Tenant files a petition for reorganization under the provisions of 11 U.S.C. §101 et. seq. (the “Bankruptcy
Code”), as may be amended from time to time, and if Tenant does not within one hundred twenty (120) days from the entry of an order
for relief by the Bankruptcy Court assume or reject the Lease pursuant to the terms of §365 of the Bankruptcy Code, then, effective
immediately, the Base Rent due under the Lease shall increase at a rate of ten percent (10%) per month. Tenant may subsequently reduce
the amount of Base Rent due to the amount of the Base Rent in effect prior to any such escalation under this Section 21.03 by either:
(i) assuming the Lease pursuant to §365 (if such right exists), or (ii) by assuming and assigning Tenant’s interest in the
Lease to a third party pursuant to §365.

 

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Article
22

Default

 

The failure by Tenant to perform
or honor each term, covenant, condition, representation and/or warranty made under this Lease shall constitute a default under this Lease
by Tenant upon expiration of the appropriate grace period hereinafter provided. Tenant shall have a period of five (5) days from the date
of written notice from Landlord within which to cure any default in the payment of Rent or any other sums due under this Lease. Tenant
shall have a period of fifteen (15) days from the date of written notice from Landlord within which to cure any other default under this
Lease; provided, however, that with respect to defaults which cannot be reasonably cured within fifteen (15) days, the default shall not
be deemed to be uncured if Tenant commences to cure such default within fifteen (15) days from the date of Landlord’s notice and
continues to prosecute diligently the curing thereof within forty-five (45) days. The written notices referred to in this Article shall
constitute those required under Florida Statute §83.20.

 

Article
23

Remedies

Section 23.01.
Landlord’s Remedies. If any one or more events of default set forth in Article 21 occurs, then Landlord has the right, in addition
to all other rights and remedies available to Landlord in law or equity or under any other provisions of this Lease, at its election,
to:

 

(a)
Without further demand or notice, through summary proceedings or any other lawful method, to re-enter and retake possession of
the Premises or any part of the Premises, expel Tenant and those claiming through or under Tenant, and remove the effects (or foreclose
its lien on said property or retain said property) or both or either, without being liable for trespass, forcible entry, detainer, or
damages, and Tenant hereby waives any right to claim damages for such entry and expulsion. No such re-entry or taking possession of the
Premises by Landlord shall be construed as a waiver of any right to recover damages for Tenant’s default or a termination of this
Lease; or

 

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(b)   To
give Tenant written notice of Landlord’s intention to terminate this lease on or at any time after the earliest date permitted by law,
in which case Tenant’s right to possession of the Premises will cease and this lease will be terminated, and Tenant shall vacate and surrender
the Premises as of the termination date. If Tenant fails to vacate the Premises as of such termination date, then Landlord may, at its
option, exercise its rights available under Article 19 of this Lease, or such other rights and remedies permitted by law.

 

Section 23.02. Damages.

 

(a)   Should
Landlord elect to take possession of the Premises pursuant to Section 23.01(a) above, Landlord may, but need not, relet the Premises or
any part thereof for such rent and upon such terms as Landlord, in its sole discretion, shall determine (including the right to relet
the Premises for a greater or lesser term than that remaining under this Lease, the right to relet the Premises as a part of a larger
area, and the right to change the character or use made of the Premises). In connection with or in preparation for any reletting, Landlord
may, but shall not be required to, make repairs, alterations and additions in or to the Premises and redecorate the same to the extent
Landlord deems necessary or desirable, and Tenant shall, upon demand, pay the cost thereof, together with Landlord’s expenses of reletting,
including, without limitation, any commission incurred by Landlord. If Landlord decides to relet the Premises or a duty to relet is imposed
upon Landlord by law, Landlord and Tenant agree that nevertheless Landlord shall at most be required to use only the same efforts Landlord
then uses to lease Premises in the Building generally and that in any case that Landlord shall not be required to give any preference
or priority to the showing or leasing of the Premises over any other space that Landlord may be leasing or have available and may place
a suitable prospective tenant in any such other space regardless of when such other space becomes available. Landlord shall not be required
to observe any instruction given by Tenant about any reletting or accept any tenant offered by Tenant unless such offered tenant has a
credit-worthiness acceptable to Landlord and leases the entire Premises upon terms and conditions including a rate of rent (after giving
effect to all expenditures by Landlord for tenant improvements, broker’s commissions and other leasing costs) all no less favorable to
Landlord than as called for in this Lease, nor shall Landlord be required to make or permit any assignment or sublease for more than the
current term or which Landlord would not be required to permit under the provisions of Article 14.

 

(b)   Should
Landlord elect to take possession of the Premises pursuant to Section 23.01(a) above, Tenant will pay to Landlord monthly rent and other
sums as provided in this lease that would be payable under this lease if such repossession had not occurred, less the net proceeds, if
any, of any reletting of the Premises after deducting all of Landlord’s reasonable expenses in connection with such reletting, including
without limitation all repossession costs, brokerage commissions, attorneys’ fees, expenses of employees, alteration and repair costs,
and expenses of preparation for such reletting. If, in connection with any reletting, the new lease term extends beyond the existing term,
or the Premises covered by such new lease include other Premises not part of the Premises, a fair apportionment of the rent received from
such reletting and the expenses incurred in connection with such reletting as provided in this Section will be made in determining the
net proceeds from such reletting. Tenant will pay such rent and other sums to Landlord on the day on which such rent would have been payable
under this lease if possession had not been retaken, and Landlord will be entitled to receive such rent and other sums from Tenant on
each such day.

 

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(c)   Notwithstanding
any of the foregoing, in the event of default, and without regard to whether or not possession shall have been surrendered to or taken
by Landlord, Landlord shall have the right, at its option, to declare the rent for the entire remaining term immediately due and payable,
and may commence action immediately thereupon and recover judgment therefor. If such accelerated sums are required by law to be reduced
to present value, then the present value shall be calculated using a discount rate equal to the current interest rate in effect as of
the date of default established pursuant to Section 55.03 Florida Statutes for judgments.

 

(d)   Notwithstanding
any of the foregoing, in the event of default, Landlord shall have the right, at its option, without further demand or notice, to cure
any event of default and to charge Tenant for the cost of effecting such cure, including without limitation reasonable attorneys’ fees
and interest on the amount so advanced, provided that Landlord will have no obligation to cure any such event of default of Tenant.

 

(e)   If
this lease is terminated by Landlord on account of the occurrence of an event of default pursuant to Article 22 above, Tenant will remain
liable to Landlord for all damages which have accrued under the Lease until the date of termination.

 

Section 23.03. Cumulative
Remedies. Any suit or suits for the recovery of the amounts and damages set forth in Section 23.02 may be brought by Landlord, from time
to time, at Landlord’s election, and nothing in this Lease will be deemed to require Landlord to await the date upon which this lease
or the term would have expired had there occurred no event of default. Each right and remedy provided for in this Lease is cumulative
and is in addition to every other right or remedy provided for in this Lease or now or after the lease date existing at law or in equity
or by statute or otherwise, and the exercise or beginning of the exercise by Landlord of any one or more of the rights or remedies provided
for in this lease or now or after the lease date existing at law or in equity or by statute or otherwise will not preclude the simultaneous
or later exercise by Landlord of any or all other rights or remedies provided for in this Lease or now or after the lease date existing
at law or in equity or by statute or otherwise. All costs incurred by Landlord in collecting any amounts and damages owing by Tenant pursuant
to the provisions of this Lease or to enforce any provision of this Lease, including reasonable attorneys’ fees from the date any such
matter is turned over to an attorney, whether or not one or more actions are commenced by Landlord, will also be recoverable by Landlord
from Tenant.

 

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Section 23.04. Waiver of
Redemption. Tenant waives any right of redemption arising as a result of Landlord’s exercise of its remedies under this Article 22.

 

Article
24

 

Estoppel Certificate

 

Within ten (10) days after notice
from Landlord, Tenant shall execute and deliver to Landlord a certificate stating that this Lease is unmodified and in full force and
effect, or in full force and effect as modified, and stating the modifications. The certificate also shall state the amount of Base Rent
and Additional Rent, the dates to which the Rent has been paid in advance, the amount of any security deposit or prepaid Rent, the fact
that there are no current defaults under the Lease by either Landlord or Tenant, except as specified in such statement, and all such other
matters as may reasonably be requested by Landlord or any purchaser or lender of Landlord. Tenant acknowledges that any statement delivered
pursuant to this paragraph may be relied upon by any mortgagee, beneficiary, Purchaser or prospective Purchaser of the Building or any
interest therein. Failure to deliver the certificate within said ten (10) day period shall be deemed a conclusive admission by Tenant
that this lease is in full force and effect and has not been modified except as may be represented by Landlord.

 

Article
25

 

Subordination and Attornment: Lease Modifications

 

Section 25.01. This Lease
is and shall be subject and subordinate at all times to all ground or underlying leases which now exist or may hereafter be executed or
amended affecting the Building or the Land upon which the Building is situated, or both (collectively, “Underlying Leases”),
and to the lien of any mortgages or deeds of trust or other encumbrances in any amount or amounts whatsoever which now exist or may hereafter
be executed or amended on or against the underlying leases or Land and Building or either of them, of which the Premises are a part, or
on or against Landlord’s interest or estate therein (collectively, “Encumbrances”), including, without limitation all
advances made on the security of any of the Encumbrances, without the necessity of the execution and delivery of any further instruments
on the part of Tenant to effectuate such subordination. Tenant covenants and agrees to execute and deliver upon demand to Landlord such
further instruments in recordable form evidencing such subordination of this Lease to such Underlying Leases and to the lien of any such
Encumbrances as may be reasonably required by Landlord, including a statement from Tenant as to any claimed offsets of Tenant. In the
event of the failure of Tenant to supply such writing within ten (10) days after request by Landlord, Tenant irrevocably appoints Landlord
as its special attorney-in-fact to execute such instruments and record same for the benefit of any third party.

 

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Section 25.02. Upon the written
request of the Landlord or any mortgagee or beneficiary of Landlord, Tenant will in writing attorn to any such mortgagee or beneficiary.
Said agreement of attornment shall provide, among other things, (a) that this Lease shall remain in full force and effect, (b) that Tenant
shall pay Rent to said mortgagee or beneficiary from the date of said attornment, (c) that mortgagee or beneficiary shall not be responsible
to Tenant under the Lease except for obligations accruing subsequent to the date of such attornment, and (d) that Tenant, in the event
of foreclosure or deed in lieu thereof, will enter into a new lease with the mortgagee or beneficiary acquiring title on the same terms
and conditions as the existing Lease and for the balance of the Term hereof.

 

Section 25.03. The provisions
of this Lease may require approval by the holders of any Underlying Leases or Encumbrances. If any such party should require as a condition
of financing any modification of the provisions of this Lease, Tenant will approve and execute any such modifications, provided such modifications
shall not alter the Rent payable under this Lease or the length of the Term, nor materially change the rights or obligations of Landlord
or Tenant under this Lease.

 

Article
26

 

Waiver of Jury Trial

 

LANDLORD AND TENANT HEREBY WAIVE
THEIR RESPECTIVE RIGHT TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, COUNTERCLAIM, OR CROSS-COMPLAINT IN ANY ACTION, PROCEEDING, AND/OR
HEARING BROUGHT BY EITHER LANDLORD AGAINST TENANT OR TENANT AGAINST LANDLORD ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED
WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF THE PREMISES, OR ANY CLAIM OF INJURY OR DAMAGE,
OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY LAW, STATUTE OR REGULATION, EMERGENCY OR OTHERWISE, NOW OF HEREAFTER IN EFFECT.

 

Article
27

 

Legal Limitations

 

Section 27.01. The voluntary
or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Landlord,
terminate all or any existing subleases or subtenancies, or may, at the option of Landlord, operate as an assignment to it of any or all
such subleases or subtenancies.

 

Section 27.02. If legal action
is brought by either party to enforce this Lease or to interpret any provision of this Lease, the prevailing party shall receive, in addition
to court costs (including but not limited to taxable costs), an amount determined by the Court for attorneys’ fees, which may be
part of the judgment and which shall be considered as an item of costs. In addition, the prevailing party shall be entitled to recover
all reasonable attorneys’ fees and costs incurred by the prevailing party in enforcing any judgment against the other party in such
action. The foregoing provision relating to post-judgment attorneys’ fees and costs is intended to be severable from all other provisions
of this Lease, and shall survive and not be deemed merged into any judgment obtained.

 

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Section 27.03. No party other
than Landlord and Tenant and their successors and assigns shall be entitled to the benefits of this Lease. There are no third party beneficiaries
to this Lease. Tenant is not a third party beneficiary of any other lease to which Landlord is a party. It is expressly understood that
Landlord is not, in any way or for any purpose, a partner of Tenant in the conduct of its business or otherwise, or a joint venturer or
a member of a joint enterprise with Tenant.

 

Section 27.04. Time is of
the essence of this Lease and all of its provisions. This Lease shall in all respects be governed by the laws of the State of Florida.

 

Section 27.05. Venue for
all legal proceedings concerning this Lease shall be in Broward County, Florida.

 

Section 27.06. No diminution
of light, air or view by any structure which may hereafter be erected (whether or not by Landlord) shall entitle Tenant to any reduction
of Rent under this Lease, result in any liability of Landlord to Tenant, or in any other way affect this Lease or Tenant’s obligations
under this Lease.

 

Section 27.07. Tenant shall
not vacate or abandon the Premises at any time during the Term of this Lease. If Tenant shall abandon or surrender the Premises, or be
dispossessed by process of law or otherwise, any personal property belonging to Tenant and left on the Premises shall, at the option of
Landlord, be deemed to be abandoned, in which event Landlord may retain, sell or otherwise dispose of such property at Tenant’s
expense. If Landlord does not elect to treat such property as being abandoned, Landlord may, at Landlord’s option, store such property
at Tenant’s expense.

 

Section 27.08. In the event
any claim is made by Landlord or Tenant relating to any conflict, omission or ambiguity in this Lease, no presumption or burden of proof
or persuasion shall be implied in favor of or against either party by virtue of the fact that this Lease was drafted by or on behalf of
Landlord. Tenant acknowledges that it has conferred, or has been provided an opportunity to confer, with counsel of Tenant’s choosing.
Accordingly, the language of this Lease shall be construed as a whole according to its fair meaning, and not strictly for or against either
party.

 

Section 27.09. In the event
Tenant shall in any manner be involved in or be the object of a labor dispute which subjects the Premises or any part of the Building
or the Land to any picketing, work stoppage, or other concerted activity which in the sole opinion of Landlord is in any manner detrimental
to the operation of the Land or the Building or its tenants or exhibitors, Landlord shall have the right to either direct Tenant, at its
own expense, to immediately resolve such labor dispute to the sole satisfaction of Landlord or terminate this Lease immediately upon written
notice to Tenant. In the event Landlord first directs Tenant to resolve the dispute, Landlord shall have the right to specify a time limit
within which Tenant must resolve the dispute, and if not so resolved in the specified time limit, Landlord shall have the right to terminate
this Lease. Nothing contained in this Section shall be construed as placing Landlord in an employer-employee relationship with any of
Tenant’s employees or with any other employees who may be involved in such labor dispute.

 

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Section 27.10. Any claim,
demand, right or defense of any kind by Tenant which is based upon or arises in connection with this Lease or the negotiations prior to
its execution, shall be barred unless Tenant commences an action thereon, or interposes in a legal proceeding a defense by reason thereof,
within one (1) year after the date of the inaction or omission or the date of the occurrence of the event or of the action to which the
claim, demand, right or defense relates, whichever applies. Tenant acknowledges that the provisions of this Section shorten the time provided
by applicable statutes of limitation for commencing certain actions.

 

Section 27.11. Should Tenant
consist of two or more persons or entities, then each person or entity signing below as Tenant shall be jointly and severally liable for
all of Tenant’s obligations under this Lease.

 

Article
28

 

Excavation

 

In the event that construction
is to be commenced or an excavation is made or authorized for building or other purposes upon land adjacent to the Building, Tenant shall,
if necessary, afford to the person or persons causing or authorized to commence construction or cause such excavation or to engage in
such other purpose, license to enter upon Premises for the purpose of doing such work as shall reasonably be necessary to protect or preserve
the Building, from injury or damage and to support the Building and any new structure to be built by proper foundations, pinning and/or
underpinning, or otherwise.

 

Article
29

 

Broker

 

Tenant covenants and represents
that the sole brokers who negotiated and brought about this transaction were Cohen Brothers Realty Services of Florida, Inc. and Cushman
and Wakefield, and Landlord agrees to pay a commission therefor as per separate agreements. Tenant agrees to indemnify and hold Landlord
harmless against any claims of any broker, other than the above named broker, for a brokerage commission arising out of any conversations
or negotiations had by Tenant with any other broker.

 

    45

     

    

 

Article
30

 

Covenant of Quiet Enjoyment

 

Landlord covenants that upon
Tenant paying the Base Rent and Additional Rent and observing and performing all the terms, covenants and conditions of this Lease on
Tenant’s part to be observed and performed, Tenant may peaceably and quietly enjoy the Premises, subject nevertheless to the terms
and conditions of this Lease, and provided, however, that no eviction of Tenant by reason of paramount title, the foreclosure of any mortgage
nor or hereafter affecting the Premises or by reason of any termination of any ground or underlying lease to which this Lease is subject
and subordinate, whether such determination is by operation of law, by agreement or otherwise, shall be construed as a breach of this
covenant nor shall any action be brought against Landlord by reason thereof.

 

Article
31

 

Waiver

 

Failure by Landlord to enforce
any of the terms, covenants or conditions of this Lease for any length of time shall not be deemed to waive or to decrease the right of
Landlord to insist thereafter upon strict performance by Tenant of each of the terms, covenants and conditions of this Lease. Waiver by
Landlord of any term, covenant or condition contained in this Lease must be in writing and signed by Landlord. If Landlord waives the
performance of any term, covenant or condition contained in this Lease in the aforesaid manner, such waiver shall not be deemed to be
a waiver of any subsequent breach of the same or any other term, covenant or condition contained in this Lease. Furthermore, the acceptance
of Rent by Landlord shall not constitute a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease,
regardless of Landlord’s knowledge of such preceding breach at the time Landlord accepted such Rent.

 

Article
32

 

Intentionally Deleted

 

Article
33

 

Miscellaneous

 

Section 33.01. Tenant shall
not, without the written consent of Landlord, or as otherwise provided for in this Lease, use the words “Design Center of The Americas”
or “DCOTA” or any trademarks, logos, pictures, or other depictions associated or in connection with the foregoing names, nor
shall Tenant use the name of the Building for any business other than for the business to be conducted by Tenant in the Premises.

 

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Section 33.02. This Lease,
together with its Schedules and Riders, if any, contains all the agreements of the parties hereto and supersedes any previous negotiations
or discussions between the parties. There have been no representations or covenants made by Landlord, any agent of Landlord, or any employee
of either, with respect to the subject matter addressed in this Lease other than those set forth in this Lease and its Schedules and Riders,
and Tenant agrees that Tenant has not relied on any such representations or covenants not set forth in this Lease. Tenant may not assert
a claim or defense of fraud to negate this Lease or for damages or other relief in connection with any representation, inducement, promise,
understanding, condition or warranty made or allegedly made by Landlord, its agent or the employees of either prior to the execution of
this Lease relating to subject matter addressed in this Lease and not set forth in this Lease, and if fraud is found to have been committed,
such fraud shall not vitiate this Lease. This Lease may not be modified except by a written instrument duly executed by both Landlord
and Tenant.

 

Section 33.03. If any provision
of this Lease or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder
of this lease and the application of such provision to other persons or circumstances shall not be affected thereby and shall be enforced
to the greatest extent permitted by law. If any payments under this Lease shall at any time be in violation of any Florida or other usury
laws, they shall be reduced to an amount equal to the maximum permitted under applicable law.

 

Section 33.04. Preparation
of this Lease by Landlord or Landlord’s agent and submission of same to Tenant shall not be deemed an offer to lease. This Lease
shall become binding upon Landlord and Tenant only when fully executed by Landlord and Tenant.

 

Section 33.05. Except for
Tenant’s obligations to pay Rent and other charges, performance by either party hereunder shall be excused for any period of delay
in performance if such delay is due to force majeure, including without limitation strikes, lockouts, labor disputes, acts of God, inability
to obtain labor or materials (or reasonable substitutes), governmental regulations or controls, enemy or hostile governmental action,
riot, civil commotion, fire or other casualty, and other causes beyond the reasonable control of the obligated party.

 

Section 33.06. Tenant shall
not record this Lease nor any short form memorandums hereof.

 

Section 33.07. Tenant hereby
warrants that all financial statements delivered by Tenant to Landlord prior to (or in accordance with) the execution of this Lease by
Tenant are true, correct, and complete, and have been prepared in accordance with generally accepted accounting principles. Tenant acknowledges
and agrees that Landlord is relying on such financial statements in accepting this Lease, and that a breach of Tenant’s warranty
as to such financial statements shall constitute a Default by Tenant pursuant to this Article.

 

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Section 33.08. Tenant acknowledges
and agrees that the terms of this Lease are confidential and constitute propriety information of Landlord. Tenant agrees that it and its
partners, officers, directors, employees, brokers, and attorneys, if any, shall not disclose the terms and conditions of this Lease to
any other person or entity without the prior written consent of Landlord which may be given or withheld by Landlord, in Landlord’s
sole discretion.

 

Section 33.09. (a) Bills,
invoices and statements of amounts due sent in the ordinary course of business are referred to as “Ordinary Bills”. Ordinary
Bills may be sent to a party at the party’s usual address for delivery thereof, or may be sent via email Notice, or may be sent
via both email Notice and in hard copy. An Ordinary Bill shall be deemed effective on the date that it is sent regardless of how it is
sent. Ordinary Bills sent by Landlord need not bear Landlord’s signature. Ordinary Bills for Base Rent and/or additional rent payable
monthly, if sent by Landlord, are sent as a courtesy, and the amount due described in the bill for a calendar month shall be due on the
first day of the calendar month or as otherwise set forth in this Lease regardless of whether or when the bill is sent. If an Ordinary
Bill is sent for additional rent that is not payable monthly, the amount shall be due on the twentieth (20th) day after the
Ordinary Bill has been sent unless this Lease provides otherwise.

 

(b)   Except
as provided in Section 33.09 A above, all notices and demand which may or are required to be given by either party to the other under
this Lease shall be deemed to have been delivered upon the sooner of personal delivery or forty-eight (48) hours after they have been
deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested, or overnight or second-day,
receipted courier, addressed to the Tenant prior to the Rent Commencement Date at ______________________________________, and after the
Rent Commencement Date at the Premises and to Landlord at 750 Lexington Avenue, 28th Floor, New York, New York 10022, with
a copy to Cohen Brothers Realty Corporation, 750 Lexington Avenue, 28th Floor, New York, New York 10022, Attention: General
Counsel, and to either of them at such other places as they may from time to time designate by written notice.

 

(c)   If
and to the extent that this Lease provides that a notice, bill, invoice, statement, certificate request, approval, consent or demand required
or permitted to be given under this Lease may be sent to Tenant by email Notice, such notice shall be delivered by email to: __________________________,
and an email Notice so sent shall be effective on the next business day after Landlord’s transmission thereof. Attachments to email
Notices shall be deemed to be part of the email Notice.

 

Section 33.10. Landlord and
Tenant may change their address for notices (including any notice, statement, certificate, request, approval, consent or demand and/or
email Notices) by a notice given to the other in accordance with the foregoing provisions.

 

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Section 33.11. Intentionally
deleted.

 

Section 33.12. Radon is naturally
occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who
are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional
information regarding radon and radon testing may be obtained from the county public health unit.

 

Section 33.13. Notwithstanding
anything in this Lease to the contrary, in no event shall Landlord be responsible or liable to Tenant for consequential or punitive damages.

 

Section 33.14. Tenant shall
have the right to use during the Term the nine (9) desks in Room 402 (the “Desks”) at no additional cost or expense to Tenant.
Tenant agrees to (a) accept the Desks in their “As-Is” condition on the Rent Commencement Date without any warranty of fitness
therefor, (b) waive any liability on the part of Landlord as to the Desk’s use by Tenant,  and (c) take good care of the Desks
during the Term, including the obligation to repair and/or replace, as necessary.  Tenant shall not remove the Desks from the Premises
during the Term (except in the event of such repair or replacement) without Landlord’s prior written consent, which consent shall
not be unreasonably withheld or delayed.  Tenant shall be responsible for any damage to the Desks (except for any damage caused by
ordinary wear and tear and casualty). 

 

Article
34

 

Confidentiality

 

Section 34.01. Tenant acknowledges
that Tenant will have access to certain confidential information during the Term of this Lease. The term “Confidential Information”
shall mean the terms, covenants, conditions and provisions of this Lease, including the amount of the Base Rent and the additional rent,
and the plans, designs, and other documentation, used in connection with this Lease, the Premises and the Building. Tenant (including
any guarantor of this Lease and Tenant’s affiliates) shall not use the Confidential Information for any purpose other than the use
of the Premises by Tenant in accordance with the terms of this Lease and shall not disclose any Confidential Information without the prior
written approval of Landlord.

 

Section 34.02. Tenant acknowledges
that any use or disclosure of the Confidential Information will cause irreparable harm to Landlord. As a consequence, Tenant agrees that
if Tenant fails to abide by the terms of this Article, Landlord shall be entitled to specific performance, including the immediate issuance
of a temporary restraining order or preliminary injunction enforcing the terms of this Article, and to a judgment for any damages resulting
from such breach, and to any other remedies available under applicable law.

 

Section 34.03. Tenant shall
indemnify and hold Landlord harmless from and against any costs, expenses, claims and liabilities (including attorneys’ fees) relating
to any and all matters concerning the use or disclosure of the Confidential Information by Tenant or any breach of the terms of this Article.

 

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Section 34.04. The terms
of this Article shall continue during the Term and shall survive for a period of five (5) years after the expiration or termination of
this Lease. The expiration or termination of this Lease shall not release Tenant from Tenant’s obligations under this Article. Upon
the expiration or termination of this Lease, Tenant shall surrender and return to Landlord all Confidential Information. No Confidential
Information shall be retained by Tenant after the expiration or termination of this Lease without Landlord’s prior written approval.

 

Article
35

 

Patriot Act Compliance

 

Section 35.01. For the purposes
of this Article, the Office of Foreign Asset Control of the Department of the Treasury is referred to as “OFAC”; Executive
Order 13,224, dated September 23, 2001 and effective September 24, 2001 is referred to as “Executive Order 13,224”; those
persons or entities with whom U.S. persons or entities are restricted from doing business pursuant to any law, rule or regulation, including
those administered by OFAC and/or those listed to date as blocked persons pursuant to Executive Order 13,224, are referred to as “Blocked
Persons”; and the lists of Blocked Persons, including without limitation the lists administered by OFAC in connection with Executive
Order 13,224 are referred to collectively as the “SDN List.”

 

(a)   Tenant
represents, warrants and certifies that neither Tenant nor, to its knowledge, any of its affiliates, nor any of their respective partners,
members, shareholders or other equity owners, and none of their respective employees, officers, directors, representatives or agents is,
and none is acting, directly or indirectly, for or on behalf of any person, group, entity or nation that is a Blocked Person or is listed
on any SDN List.

 

(b)   Tenant
represents and warrants to Landlord that:

 

(i)   it
has taken, and shall continue to take at all times following the execution of the Lease, commercially reasonable actions to ensure that
the funds used in connection with this Lease are derived (1) from transactions that do not violate U.S. law or, to the extent such funds
originate outside the United States, do not violate the laws of the jurisdiction in which they originated; and (2) from permissible sources
under U.S. law or to the extent such funds originate outside the United States, under the laws of the jurisdiction in which they originated;
and

 

    50

     

    

 

(ii)   neither
Tenant nor, to its knowledge, any of its affiliates, nor any of their respective partners, members, shareholders or other equity owners,
and none of their respective employees, officers, directors, representatives or agents (1) is under investigation for, has been charged
with, or has been convicted of, money laundering, drug trafficking, terrorist-related activities, any crimes which in the United
States would be predicate crimes to money laundering, or any violation of any Anti-Money Laundering Laws; (2) has been assessed civil
or criminal penalties under any Anti-Money Laundering Laws; or (3) has had any of its funds seized or forfeited in any action under any
Anti-Money Laundering Laws.

 

For purposes hereof, “Anti-Money Laundering
Laws” means those laws, rules, regulations, orders and sanctions, state and federal, criminal and civil, that (1) limit the use
of and/or seek the forfeiture of proceeds from illegal transactions; (2) limit commercial transactions with designated countries or individuals
believed to be terrorists, narcotic dealers or otherwise engaged in activities contrary to the interests of the United States; (3) require
identification and documentation of the parties with whom a financial institution conducts business; or (4) are designed to disrupt the
flow of funds to terrorist organizations.  Anti-Money Laundering Laws specifically include, without limitation, the USA
Patriot Act of 2001.

 

(c)   Tenant
hereby agrees to defend, indemnify and hold harmless Landlord from and against any and all claims, damages, losses, risks, liabilities
and expenses (including attorney’s fees and costs) arising from or related to any breach of any of the foregoing representations,
warranties or certifications.

 

(d)   Tenant
acknowledges and agrees that Landlord is obligated (i) not to do business with Blocked Persons, and (ii) to freeze any assets of Blocked
Persons which may come into Landlord’s possession. Tenant releases Landlord from any liability to Tenant for any actions taken by
Landlord in good faith efforts to comply with the foregoing obligations.

 

(e)   Notwithstanding
anything to the contrary in this Lease, Landlord and Tenant immediately shall comply with any request or demand for information by any
federal law enforcement agency with respect to any violation or suspected violation of the USA Patriot Act of 2001.

 

Article
36

 

Landlord’s Contribution

 

Section 36.01. Provided that
Tenant is not in default in the performance of any of its monetary or material nonmonetary obligations under this Lease beyond any applicable
notice and cure periods, Landlord agrees to reimburse Tenant up to the sum of $26,452.50 (“Landlord’s Contribution”) toward
the cost of Tenant’s Initial Work (which may include architectural, engineering, acoustical and lighting specialist, permitting
and expeditor fees) to prepare the Premises for Tenant’s occupancy (“Tenant’s Initial Work”). Tenant shall be
responsible for the cost of all phone, data, IT, low voltage wiring, furniture fixtures and equipment and other costs above Landlord’s
Contribution.

 

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Section 36.02. Landlord shall
pay to Tenant, from time to time, but not more often than once a month, ninety (90%) percent of the cost of Tenant’s Initial Work
(excluding costs paid by Landlord on previous requisitions), requested by Tenant (in writing and delivered to Landlord in accordance with
the notice provisions of this Lease, by the 25th day of the month, to the attention of SVP-Director of Management and with
a copy to the Chief Operating Officer) theretofore performed by its contractor(s), which shall include any general contractor and all
subcontractors hired by the general contractor, provided that Tenant delivers to Landlord concurrently with its request, paid bills of
the contractors, including any general contractor and subcontractor, involved and a certificate by Tenant’s architect or engineer that
such paid bills have been approved by Tenant and the work or materials evidenced by such bills have been satisfactorily performed or delivered
and a waiver of mechanic’s lien signed by the contractors, including any general contractor and subcontractor, with respect to the amounts
theretofore paid as evidenced by paid bills, such payment to be made to Tenant within approximately forty-five (45) days after receipt
of Tenant’s request together with the aforesaid documentation.

 

Section 36.03. Within approximately
forty-five (45) days after Landlord receives a final certificate from Tenant’s architect or engineer on AIA form G702, stating that all
of Tenant’s Initial Work performed by any contractors, general contractor or subcontractor, has been substantially completed, that the
same has been performed in compliance with all applicable Governmental Requirements and the approved plans and specifications, and delivery
to Landlord of the final “sign-off” letters, including, without limitation, the Broward County Buildings Department for all
work performed from the applicable municipal authorities, Landlord shall pay to Tenant the aggregate of the ten (10%) percent sums retained
by Landlord on account thereof. Landlord shall have no obligation or responsibility to pay any cost exceeding the amount of the Landlord’s
Contribution on account of Tenant’s Initial Work, or any portion of a request for any portion of the Landlord’s Contribution
submitted to Landlord after December 31, 2021. If the amount Tenant expends for the cost of Tenant’s Initial Work exceeds the amount
of Landlord’s Contribution, Tenant shall be responsible for the payment to the contractors of the excess. If the respective amounts
are less than the amount of the Landlord’s Contribution, as the case may be, Landlord shall not be obligated to pay such difference
to Tenant.

 

Section 36.04. Tenant shall
indemnify and hold Landlord harmless from and against any and all claims, costs and expenses, including but not limited to reasonable
attorneys’ fees, caused by Tenant’s Initial Work performed pursuant to this Lease.

 

[Remainder of Page Left Blank Intentionally
– Signature Page Follows]

 

    52

     

    

 

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

 

	 	LANDLORD:
	 	 	 	 
	 	1815 BUILDING COMPANY, LLC
	 	 	 	 
	 	By:
    	/s/ Charles Steven Cohen
	 	 	Charles Steven Cohen, Manager
	 	 	 
	 	TENANT:
    	 
	 	 	 	 
	 	VERITAS FARMS
  
	 	 	 	 
	 	By:	/s/ Stephen E. Johnson
	 	 	Name:	Stephen E. Johnson
	 	 	Title:	President and CEO
	 	 	 	 
	 	90-1254190
	 	Federal I.D. No.:

 

    53

     

    

 

CERTIFICATE OF ACKNOWLEDGMENT

 

	STATE OF NEW YORK	)	 
	 	)	ss:
	COUNTY OF NEW YORK	)	 

 

On the day of _________________
in the year 2021, before me, the undersigned, a Notary Public in and said State, personally appeared Charles Steven Cohen, personally
known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the instrument.

 

________________________________

Notary Public

 

STATE OF FLORIDA

 

COUNTY OF ______________________

 

The foregoing instrument was acknowledged before
me this ______________, 2021, by ___________________________ of _____________________________. He/she is personally known to me or has
produced __________________________________ (type of identification) as identification.

 

______________________________

Notary Public

 

Printed Name: _________________

 

My Commission Expires:

____________________

 

Commission # ________

 

    54

     

    

 

SCHEDULE A

 

Floor Plan

 

    A-1

     

    

 

SCHEDULE B-1

 

Initial Improvements

(Tenant’s Initial Work)

 

1.   Tenant
accepts the Premises in their “As Is” condition on the Rent Commencement Date hereof.

 

2.   Tenant
shall perform any other work besides Landlord’s Work required to make the Premises fit for Tenant’s occupancy (the “Tenant’s
Initial Work”) at Tenant’s sole cost and expense. With respect to Tenant’s Initial Work, Tenant shall provide to Landlord
for its approval three (3) complete sets of architectural and mechanical plans and specifications in form for filing with and acceptance
by the applicable governmental authority, prepared by an architect that has been approved by Landlord, showing all improvements that Tenant
proposes to install in addition to Landlord’s Work to ready the Premises for its initial occupancy. Landlord’s approval of such
plans and specifications shall not be unreasonably withheld, provided (a) they comply with requirements of all applicable governmental
authorities, (b) such plans and specifications are sufficiently detailed to allow construction of the improvements in a good and workmanlike
manner, (c) the improvements depicted thereon conform to the rules and regulations promulgated from time to time by Landlord for the construction
of improvements, and (d) the improvements are non-structural, do not affect the exterior of the Premises or the Building, do not affect
other tenants, do not affect the HVAC, electrical, mechanical, plumbing or any other system serving the Building or the Premises, and
do not violate the provisions of any mortgage covering the Building. Landlord shall notify Tenant within fourteen (14) days after its
receipt of said plans whether it approves or disapproves the same. If Landlord shall not approve any plans and specifications, it shall
notify the Tenant of the revisions it requires. Within fourteen (14) days after being so informed by Landlord, Tenant shall submit revised
plans and specifications incorporating such revisions. At such time as Landlord approves the plans and specifications, same shall constitute
the “Final Plans.” Tenant shall, at Landlord’s request, sign the Final Plans to evidence its review and approval thereof. All
changes in the Final Plans must receive the prior approval of Landlord. Tenant shall, upon completion of the improvements, furnish Landlord
with an accurate, reproducible “as-built” plan of the improvements as constructed in both paper and electronic CAD (either in
DWF or DWG) formats.

 

3.   Upon
approval of the Final Plans, Tenant shall cause the initial improvements to be constructed in accordance with the Final Plans, as approved
by Landlord, with all diligence and shall be performed in accordance with Article 11. Tenant shall nevertheless not interfere with the
performance of any Landlord’s Work.

 

4.   Tenant
shall bear the entire cost of performing the improvements including, without limitation, preparation of plans and specifications, costs
of construction labor and materials, additional janitorial services, general tenant signage, related taxes and insurance costs, and the
costs of all filings required by governmental requirements.

 

    B-1

     

    

 

SCHEDULE B-2

 

Construction Procedures 

 

IN CONNECTION WITH ANY ALTERATIONS REQUIRING
A GOVERNMENTAL PERMIT, TENANT SHALL NOT USE THE VOLUNTARY REQUEST FOR BUILDING DEPARTMENT APPROVAL OF PLANS AND APPLICATIONS AS ALLOWED
UNDER BUILDING DEPARTMENT DIRECTIVE 14 OF 1975 (i.e. self-certification), AND TENANT SHALL REQUEST FULL BUILDING DEPARTMENT REVIEW AND
APPROVAL OF PLANS, APPLICATIONS AND SIGN-OFFS AND WILL EMPLOY COMPETENT PROFESSIONAL ENGINEERS OR ARCHITECTS SELECTED BY THE LANDLORD
AND, IF NOT SELECTED BY THE LANDLORD, PROFICIENT WITH THE BROWARD COUNTY BUILDING CODE AND APPROVED BY THE LANDLORD. REQUESTS FOR LANDLORD’S
APPROVAL TO USE PROFESSIONAL CERTIFICATION (ONE-DAY FILING) APPLICATIONS WILL BE DENIED. 

 

1.   Obtaining
Landlord Consent to Improvements/Alterations. Except as otherwise may be expressly permitted in this Lease, Tenant, without Landlord’s
prior consent, shall not make any alterations, installations, additions, or improvements, structural or nonstructural, in or to the Premises
(“Improvements”). In order to obtain Landlord’s consent, Tenant must:

 

		(A)	obtain approval of Tenant’s plans;

		(B)	deliver to Landlord a statement detailing the estimated costs and construction period and a check for
the estimated supervisory fee, if applicable;

		(C)	deliver to Landlord a contractor’s affidavit, construction contracts and a true-up of the supervisory
fee, if any;

		(D)	deliver to Landlord a bond or other security to secure payment for the cost of the Work;

		(E)	deliver to Landlord proof of contractor insurance satisfactory to Landlord;

		(F)	obtain Landlord approval of Tenant’s contractors and design professionals; and

		(G)	sign Landlord’s consent letter, obtain Landlord’s countersignature, and deliver to Landlord
copies of all permits required to construct the Improvements.

 

The requirements of items (A)
through (G) are more particularly described below, and the more detailed descriptions below shall be binding on Tenant as if set forth
above. Landlord shall not be required to review any drawings and specifications submitted by Tenant if Tenant is then in default in the
performance of any of its obligations under this Lease or if Tenant has failed to satisfy the requirements of parts (A) and (B) below. 

 

    B-2/1

     

    

 

A.   Plans.
Tenant shall submit three full sets of architectural and mechanical drawings and specifications for the Improvements to be constructed.
Each set of plans shall comply with the following: (a) (i) if permits are required to legally construct the Improvements, they shall be
signed by an architect and/or engineer licensed in the state in which the premises leased are located who has been approved by Landlord,
and the drawings and specifications shall be in such form as is required to obtain the issuance of permits for the construction of the
Improvements, or (ii) if permits are not required to construct the Improvements, the drawings and specifications shall be in such form
as Landlord reasonably requires and shall be signed by such architects and/or engineers as Landlord reasonably requires; (b) the 
drawings and specifications shall fully describe the Improvements to be constructed; (c) the drawings and specifications shall be provided
in paper which are easily readable and, upon request, in electronic  CAD (either DWF or DWG) format; (d) the drawings and specifications
shall conform to the requirements of this Lease, all Governmental Requirements, and all of Landlord’s rules and regulations pertaining
to construction in the Building. Tenant shall deliver three full sets of the plans to Landlord: two (2) of the sets shall be delivered
to the property manager of the Building, and one (1) set shall be delivered to the delivered to 750 Lexington Avenue – 28th
Floor attn.: John Coleman (or such other person who is then designated by Landlord for plan review).  Tenant shall submit and resubmit
the drawings and specifications until Landlord has approved them. The full set of drawings and specifications that Landlord has approved
are referred to as the “Final Plans” for the Improvements. Landlord’s review and approval of any drawings and specifications
are solely for Landlord’s benefit and shall not be deemed a representation that the plans or the Improvements when completed or
their use will comply with any Governmental Requirements or are fit for the purposes intended by Tenant.

 

B.   Estimated
Supervision Payment and Construction Period. Tenant shall deliver to Landlord a statement detailing Tenant’s total estimated
hard costs and soft costs in connection with the Improvements (the “Estimated Costs”), obtaining permits for the same, and
their construction and completion and the estimated period required from Landlord’s approval of the Final Plans through the substantial
completion of the Improvements (the “Estimated Period”), assuming Tenant diligently obtains permits and commences and completes
their construction. If the Lease requires Tenant to pay a charge in connection with Landlord’s supervision, coordination and other
expenses incurred by Landlord in connection with the Improvements, Tenant shall deliver payment to Landlord for the charge based on the
Estimated Costs (the “Estimated Payment”). 

 

C.   Contractor’s
Affidavit; Copies of Signed Contracts; True-Up of Supervision Payment, if any. Tenant shall submit a notarized affidavit from Tenant,
its general contractor, architect, engineer or construction manager which states the total hard and soft costs of the Improvements (the
“Costs”) including, without limitation, the costs of:

 

(i)   Architectural;

(ii)   Engineering;

(iii)   Controlled
Inspections;

(iv)   Other
Designers/Consultants;

(v)   General
Contractor;

(vi)   Any
contractors not included in GC scope; and

(vii)   Any
materials purchased directly by Tenant not part of GC scope.

 

    B-2/2

     

    

 

The affidavit shall additionally
list each person or entity supplying services and/or materials to or for the Improvements which could result in a mechanics’ lien
of $3,500 or more including without limitation each contractor, subcontractor, and sub-subcontractor; each architect, engineer, and other
designer expediter; each construction manager; and each material supplier; and the amount of the hard and/or soft costs payable to each.
Tenant also shall submit a copy of the signed contract (or if there is no contract signed by both parties, the purchase order) of each
person listed. If the Costs are more or less than the Estimated Costs, the parties shall make an appropriate adjustment to the Estimated
Payment, if any. Tenant shall receive a credit for any overpayment, and Tenant shall promptly pay any deficiency.

 

D.   Bond
or other Security. If expressly required by the provisions of Article 5 of the Lease, Tenant shall submit the bond required by this
Lease to secure payment for the Costs and the completion of the Improvements in accordance with this Lease. The amount of bond shall be
calculated pursuant to this Lease after considering the Costs. In lieu of the bond, Tenant shall submit such alternate form of security
as shall have been agreed to between Landlord and Tenant.

 

E.   Insurance.
Tenant shall submit evidence of insurance satisfactory to Landlord that each contractor, subcontractor and sub-subcontractor performing
any portion of the Improvements is maintaining the insurance required by Landlord pursuant to this Lease.

 

F.   Contractor
and Design Professional Approval. Tenant must obtain Landlord approval for each architect and engineer used by Tenant in connection
with the Improvements and for each contractor, subcontractor and sub-subcontractor who is to perform any portion of the Improvements.

 

G.   Landlord
Consent Letter; Permits. Upon satisfaction of all of the above, Landlord shall issue a consent letter for Tenant’s signature
containing, among other things, Landlord’s construction rules and regulations. If, and only if, Landlord (i) countersigns the consent
letter, (ii) releases to Tenant or its representative any building department applications which Landlord is required to execute before
permits can be issued to construct the Improvements, and (iii) Tenant delivers to Landlord copies of any permits required to construct
the Improvements, then Landlord shall be deemed to have consented to the construction of the Improvements.

 

2.   Waivers
of Lien, Return of Bond, Completion of Improvements. Tenant shall obtain and deliver to Landlord:

 

(A)   original,
notarized final waivers and releases of mechanics liens from, and proof of payment to, each person or entity listed in the affidavit in
the preceding Section 1C as well as any other person or entity performing any portion of the Improvements hired after the submission of
the affidavit. The waivers and releases of mechanics liens shall be in form and substance reasonably acceptable to Landlord.

 

(B)   “As
Built” drawings as are required pursuant to the Lease.

 

(C)   copies
of operating permits as are required to operate any equipment installed by Tenant.

 

After the completion of the Improvements, the delivery of the items
described in (A), (B) and (C) of this Section 2, Landlord shall release the bond or other security delivered pursuant to Section 1D above.

 

    B-2/3

     

    

 

SCHEDULE C

 

Rules and Regulations

 

1.   The
rights of tenants in the entrances, corridors, elevators and escalators of the Building are limited to ingress to and egress from the
tenants’ premises for the tenants and their employees, licensees, guests, customers and invitees, and no tenant shall use, or permit the
use of, the entrances, corridors, escalators or elevators for any other purpose. No tenant shall invite to the tenant’s premises, or permit
the visit of, persons in such numbers or under such conditions as to interfere with the use and enjoyment of any of the plazas, entrances,
corridors, escalators, elevators and other facilities of the Building by other tenants. Fire exits and stairways are for emergency use
only, and they shall not be used for any other purposes by the tenants, their employees, licensees or invitees. No tenant shall encumber
or obstruct, or permit the encumbrance or obstruction of any of the sidewalks, plazas, entrances, corridors, escalators, elevators, fire
exits or stairways of the Building. The Landlord reserves the right to control and operate the public portions of the Building and the
public facilities, as well as facilities, furnished for the common use of the tenants, in such manner as it deems best for the benefit
of the tenants generally.

 

2.   The
reasonable cost of repairing any damage to the public portions of the Building or the public facilities or to any facilities used in common
with other tenants, caused by a tenant or the employees, licensees or invitees of the tenant, shall be paid by such tenant.

 

3.   The
Landlord may require all persons requesting admission to the Building at any time to have a pass issued by the Landlord or to have Landlord
approved identification, and may require all persons admitted to or leaving the Building at any time to register. Tenant’s employees,
agents and visitors shall be permitted to enter and leave the building during and after ordinary business hours, subject to the reasonable
requirements of Landlord. Each tenant shall be responsible for all persons for whom he requests such permission and shall be liable to
the Landlord for all acts of such persons. Any person whose presence in the Building at any time shall, in the judgment of the Landlord,
be prejudicial to the safety, character, reputation and interests of the Building or its tenants may be denied access to the Building
or may be rejected therefrom. In case of invasion, riot, public excitement or other commotion the Landlord may prevent all access to the
Building during the continuance of the same, by closing the doors or otherwise, for the safety of the tenants and protection of property
in the Building. The Landlord may require any person leaving the Building with any package or other object to exhibit a pass from the
tenant from whose premises the package or object is being removed, but the establishment and enforcement of such requirement shall not
impose any responsibility on the Landlord for the protection of any tenant against the removal of property from the premises of the tenant.
The Landlord shall, in no way, be liable to any tenant for damages or loss arising from the admission, exclusion or ejection of any person
to or from the tenant’s premises or the Building under the provisions of this rule.

 

    C-1

     

    

 

4.   No
tenant shall obtain or accept for use in its premises towel, barbering, boot blacking, floor polishing, lighting maintenance, cleaning
or other similar services from any persons not authorized by the Landlord in writing to furnish such services, provided always that the
charges for such services by persons authorized by the Landlord are comparable to the industry charge. Such services shall be furnished
only at such hours, in such places within the tenant’s premises and under such reasonable regulations as may be fixed by the Landlord.

 

5.   No
projections over or around the windows shall be installed by any tenant, and only such window blinds as are supplied or permitted by the
Landlord shall be used in a tenant’s premises.

 

6.   There
shall not be used in any space, or in the public halls of the Building, either by the Tenant or by jobbers or others, in the delivery
or receipt of merchandise, any hand trucks, except those equipped with rubber tires and side guards which have been approved by the Landlord.

 

7.   All
entrance doors in each tenant’s premises shall be left locked when the tenant’s premises are not in use. All blinds therein above the
ground floor shall be lowered when and as reasonably required because of the position of the sun, during the operation of the Building
air conditioning system to cool or ventilate the tenant’s premises.

 

8.   No
noise, including the playing of any musical instruments, radio or television, which, in the judgment of the Landlord, might disturb other
tenants in the Building shall be made or permitted by any tenant. Nothing shall be done or permitted in any tenant’s premises, and nothing
shall be brought into or kept in any tenant’s premises, which would impair or interfere with any of the Building services or the proper
and economic heating, cleaning or other servicing of the Building or the premises, or the use or enjoyment by any other tenant of any
other premises, nor shall there be installed by any tenant any ventilating, air conditioning, electrical or other equipment of any kind
which, in the judgment of the Landlord, might cause any such impairment or interference. No dangerous, flammable, combustible or explosive
object or material shall be brought into the Building by any tenant by any person doing business with the tenant.

 

9.   Tenant
shall not permit any cooking or food odors emanating within the Premises to seep into other portions of the Building.

 

10.   No
acids, vapor or other materials shall be discharged or permitted to be discharged into the waste lines, vents or flues of the Building
which may damage them. the water and wash closets and other plumbing fixtures in or serving any tenant’s premises shall not be used for
any purpose other than the purpose for which they were designed or constructed, and no sweepings, rubbish, rags, acids or other foreign
substances shall be deposited therein. All damages resulting from any misuse of the fixtures shall be borne by the tenant who, or whose
servants, employees, agents, visitors or licensees, shall have caused the same.

 

    C-2

     

    

 

11.   No
signs, advertisement, notice or other lettering shall be exhibited, inscribed, painted or affixed by any tenant on any part of the outside
or inside of the premises or the Building without the prior written consent of the Landlord.  Tenant shall not affix or permit to
be affixed anything to any interior or exterior surface of any window, such as a logo, sign, film, sticker, poster, photo or post-it.
Neither shall Tenant allow to be displayed in its premises, where visible from outside its premises, any sign, display, poster, or logo
that in the reasonable judgment of Landlord is inconsistent with the Class A character of the Building. In the event of the violation
of the foregoing by any tenant, Landlord may remove the same without any liability, and may charge the expense incurred by such removal
to the tenant or tenants violating this rule.  Signs and lettering on doors and elevators shall be inscribed, painted, or affixed
for each tenant by Landlord at the expense of such tenant, (the charge not to exceed that which a reputable outside contractor would charge),
and shall be of a size, color and style reasonably acceptable to Landlord.  Landlord shall have the right to prohibit any advertising
by any tenant which impairs the reputation of the building or its desirability as a building for offices, and upon written notice from
Landlord, Tenant shall refrain from or discontinue such advertising.

 

12.   No
additional locks or belts of any kind shall be placed upon any of the doors or windows in any tenant’s premises and no lock on any door
therein shall be changed or altered in any respect. All tenant spaces shall be keyed to the Building’s grand master system and the
Building. The tenant shall provide the Building manager with keys to all locks on any doors of the premises. Upon the termination of a
tenant’s lease, all keys of the tenant’s premises shall be delivered to the Landlord, together with the tenant’s explanation of
the combination of all locks on safes or vault doors in the premises,

 

13.   No
tenant shall mark, paint, drill into or in any way deface any part of the Building or the premises demised to such tenant. No boring,
cutting or stringing of wires shall be permitted, except with the prior written consent of Landlord, which will not be unreasonably withheld
or delayed, and as Landlord may reasonably direct. No tenant shall install any resilient tile or similar floor covering in the premises
demised to such tenant except in a manner approved by Landlord.

 

14.   No
tenant or occupant shall engage or pay any employees in the Building, except those actually working for such tenant or occupant in the
Building, nor advertise for laborers giving an address at the Building.

 

15.   No
premises shall be used, or permitted to be used, at any time, as a store for the sale or display of goods, wares or merchandise of any
kind, or as a restaurant, shop, booth, bootblack or other stand, or for the conduct of any business or occupation which predominantly
involves direct patronage of the general public in the premises demised to such tenant, or for manufacturing or for other similar purposes.

 

16.   The
requirements of tenants will be attended only upon application at the office of the Building. Employees of Landlord shall not perform
any work or do anything outside of the regular duties, unless under special instructions from the office of the Landlord.

 

    C-3

     

    

 

17.   The
tenant’s employees shall not loiter around the hallways, stairways, elevators, front, roof or any other part of the Building used in common
by the occupants thereof.

 

18.   If
the premises demised to any tenant become infested with vermin, such tenant, at its sole cost and expense, shall cause its premises to
be exterminated, from time to time, to the satisfaction of Landlord and shall employ such exterminators therefor as shall be approved
by Landlord.

 

19.   No
bicycle or other vehicle, and no animals or pets shall be allowed in the showrooms, offices, halls, corridors or any other parts of the
Building.

 

20.   Tenant
shall not, hire any person(s) for the purpose of cleaning the Premises other than the Building’s janitorial service. Landlord shall
not be responsible to Tenant for any loss of Tenant’s property on or in the Premises, the Building or the Building Project, however occurring,
or for any damage done to the property or effects of Tenant by Landlord’s agents, including without limitation, Landlord’s janitorial
service. Janitorial services may not be furnished on nights when the Premises are occupied after 9:30 P.M. Landlord, at its expense, shall
clean the exterior of the Building windows.

 

21.   Tenant
shall not, without Landlord’s prior written consent, install or operate any heating device, refrigerating or air conditioning equipment,
steam or internal combustion engine, boiler, stove, machinery or mechanical devices upon the premises or carry on any mechanical or manufacturing
business thereon, or use or permit to be brought into the Building flammable fluids such as gasoline, kerosene, benzene or naphtha or
use any illumination other than electric lights. No explosives, firearms, radioactive or toxic or hazardous substances or materials, or
other articles deemed hazardous to life, limb or property shall be brought into the Building or the Premises.

 

22.   Tenant
shall at its expense provide artificial light for employees of Landlord while doing service or other work and making repairs or alterations
in the premises.

 

23.   Landlord
may require Tenant to list all furniture and fixtures to be taken from the Building upon a form approved by Landlord. Such list shall
be presented at the office of the Building for approval before acceptance by the security officer or elevator operator.

 

24.   Tenant,
its customers, invitees, licensees, agents, servants, employees and guests shall not encumber or obstruct sidewalks, entrances, passages,
courts, vestibules, halls, elevators, stairways or other common areas in or about the Building.

 

    C-4

     

    

 

25.   Tenant
shall not allow anything to be placed against or near the glass in the partitions between the premises and the halls or corridors of the
Building which shall diminish the light in the halls or corridors, or detract from its upscale image.

 

26.   The
Building Manager shall be allowed admittance to the premises in the event of any emergency, fire or other casualty that may arise in other
appropriate instances.

 

27.   Unless
otherwise advised by Landlord, neither Tenant nor its employees shall undertake to regulate the radiator controls or thermostats. Tenant
shall report to the office of the Building whenever such thermostats or radiator controls are not working properly or satisfactorily.

 

28.   All
window treatments shall be subject to Landlord’s approval.

 

29.   Tenant
assumes full responsibility for protecting its space from weather, theft, robbery and pilferage, which includes keeping doors locked and
other means of entry into the premises closed and secured.

 

30.   Tenant
may provide complimentary foods to its guests provided that it shall first comply with all Legal Requirements.

 

31.   Landlord
may require all messengers to sign in and obtain a pass. Contractors and other workmen shall use only the freight elevators for all movement
within the Building.

 

32.
Landlord reserves the right at any time, to install a message/package center in an area in the Building designated by Landlord and reasonably
accessible to and for the common use of the tenants, and tenants shall comply with the procedures for the same set forth by the Landlord.

 

33.   .No
tenant shall allow or suffer any person whom it invites onto its premises to “Solicit” in any other premises in the Building
unless such person has been expressly invited onto such other premises by its tenant for such purpose prior to the person’s entry
into the Building. To “Solicit” means to enter any other premises in the Building for the purpose of soliciting business,
advertising its goods or services or the goods or services of others, handing out cards, flyers or other materials, or selling or otherwise
providing any goods or services. Tenant shall be deemed to have invited the person onto its premises for the purposes of this rule if
the tenant has authorized the entry of such person into the Building.  If any person whom a tenant invites onto its premises Solicits
in any other premises, the tenant shall be deemed in breach of this rule.

 

    C-5

     

    

 

SCHEDULE D

 

Janitorial Cleaning Specifications

 

    D-1

     

    

 

 

D-2

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