Document:

Exhibit 10.3.4

 

E.DIGITAL CORPORATION

 

 

NONSTATUTORY STOCK OPTION AGREEMENT

 

November 2, 2016

 

Donald Springer

#### ####### ##

Lantana, TX #####

 

Re:Grant of
Stock Option

 

Dear Donald:

 

In consideration of
your agreement to serve on the board of directors (the “Board”) of e.Digital Corporation (the “Company”)
and for other good and valuable consideration, the parties hereto, intending to be legally bound, agree as follows:

 

1.                 
Grant of Option. Subject to the conditions set forth below, the Company hereby grants to you, effective as of November
2, 2016 (“Grant Date”), as a matter of separate inducement and not in lieu of any salary or other compensation
for your services, the right and option to purchase (the “Option”), in accordance with the terms and conditions
set forth herein, an aggregate of 250,000 shares of Stock of the Company (the “Option Shares”), at the
Exercise Price (as hereinafter defined). As used herein, the term “Exercise Price” shall mean a price equal
to $0.066 per share, subject to the adjustments and limitations set forth herein. In no event shall the exercise price be
less than the greater of (a) the par value per share of a Share of Stock or (b) the Fair Market Value of a share of Stock
as of the Grant Date. The Option granted hereunder is intended to constitute an Option which is not designed pursuant to section
422 of the Internal Revenue Code of 1986, as amended; however, you should consult with your tax advisor concerning the proper reporting
of any federal or state tax liability that may arise as a result of the grant or exercise of the Option.

 

2.                 
Exercise.

 

(a)              
For purposes of this Option Agreement, the Option Shares shall be deemed “Nonvested Shares” unless and
until they have become “Vested Shares.” The Option shall in all events terminate at the close of business on
the fourth (4th) anniversary of the date of this Option Agreement. Subject to other terms and conditions set forth herein, the
Option may be exercised in cumulative installments as follows:

 

	On or After Each of the Following Vesting Dates	Cumulative Percentage of Shares as to Which Option is Exercisable
	Upon Grant Date	25%
	Six months after Grant Date	50%
	Twelve months after Grant Date	75%
	Eighteen months after Grant Date	100%

 

  

Option Shares shall
constitute Vested Shares once they are exercisable.

 

(b)              
Subject to the relevant provisions and limitations contained herein, you may exercise the Option to purchase all or a portion
of the applicable number of Vested Shares at any time prior to the termination of the Option pursuant to this Option Agreement.
In no event shall you be entitled to exercise the Option for any Nonvested Shares or for a fraction of a Vested Share.

 

(c)              
Any exercise by you of the Option shall be in writing addressed to the Secretary of the Company at its principal place of
business (a copy of the form of exercise to be used will be available upon written request to the Secretary), and shall be accompanied
by a certified or bank check payable to the order of the Company in the full amount of the Exercise Price of the shares so purchased,
or in such other manner as approved by the Board.

 

 

 

 

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3.                 
Termination of Service. Except as provided below in this Section 3 upon the termination of your service on the Board,
any and all Options held by you that are not then exercisable will become null and void upon the date of such termination and you
may, until the earlier of (x) ninety (90) days from the date of such termination or (y) the expiration of the Option in accordance
with its terms, exercise the Option with respect to all or any part of the Vested Shares which you were entitled to purchase immediately
prior to such termination and, thereafter, the Option shall, to the extent not previously exercised, automatically terminate and
become null and void.

 

4.                 
Transferability. Any rights or interests herein will be assignable or transferable by you only by will or the laws
of descent and distribution.

 

5.                 
Withholding Taxes. The Board may, in its discretion, require you to pay to the Company (or the Company’s Subsidiary
if you are an employee of a Subsidiary of the Company), at the time of the exercise of an Option or thereafter, the amount that
the Board deems necessary to satisfy the Company’s or its Subsidiary’s current or future obligation to withhold federal,
state or local income or other taxes that you incur by exercising an Option. In connection with the exercise of an Option requiring
tax withholding, you may (a) direct the Company to withhold from the shares of Stock to be issued to you the number of shares necessary
to satisfy the Company’s obligation to withhold taxes, that determination to be based on the shares’ Fair Market Value
as of the date of exercise; (b) deliver to the Company sufficient shares of Stock (based upon the Fair Market Value as of the date
of such delivery) to satisfy the Company’s tax withholding obligation, which tax withholding obligation is based on the shares’
Fair Market Value as of the later of the date of exercise or the date as of which the shares of Stock issued in connection with
such exercise become includable in your income; or (c) deliver sufficient cash to the Company to satisfy its tax withholding obligations.
If you elect to use such a Stock withholding feature you must make the election at the time and in the manner that the Board prescribes.
The Board may, at its sole option, deny your request to satisfy withholding obligations through Stock instead of cash. In the event
the Board subsequently determines that the aggregate Fair Market Value (as determined above) of any shares of Stock withheld or
delivered as payment of any tax withholding obligation is insufficient to discharge that tax withholding obligation, then you shall
pay to the Company, immediately upon the Board’s request, the amount of that deficiency in the form of payment requested
by the Board.

 

6.                 
Adjustments. The terms of an Option shall be subject to adjustment from time to time, in accordance with the following
provisions:

 

(a)              
If at any time, or from time to time, the Company shall subdivide as a whole (by reclassification, by a Stock split, by
the issuance of a distribution on Stock payable in Stock or otherwise) the number of shares of Stock then outstanding into a greater
number of shares of Stock, then (i) the number of shares of Stock (or other kind of securities) that may be acquired under the
Option shall be increased proportionately and (ii) the price (including Exercise Price) for each share of Stock (or other kind
of shares or securities) subject to the then outstanding Option shall be reduced proportionately, without changing the aggregate
purchase price or value of the outstanding Option.

 

(b)              
If at any time, or from time to time, the Company shall consolidate as a whole (by reclassification, reverse Stock split
or otherwise) the number of shares of Stock then outstanding into a lesser number of shares of Stock, (i) the number of shares
of Stock (or other kind of shares or securities) that may be acquired under the Option shall be decreased proportionately; and
(ii) the price (including Exercise Price) for each share of Stock (or other kind of shares or securities) subject to the Option
shall be increased proportionately, without changing the aggregate purchase price or value of the outstanding Option.

 

(c)              
Whenever the number of shares of Stock subject to the Option and the price for each share of Stock subject to the Option
are required to be adjusted as provided in this Section 6, the Board shall promptly prepare a notice setting forth, in reasonable
detail, the event requiring adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the
change in price and the number of shares of Stock, other securities, cash, or property purchasable subject to the Option after
giving effect to the adjustments. The Board shall promptly give you such a notice.

 

(d)              
Adjustments under this Section 6 shall be made by the Board, and its determination as to what adjustments shall be made
and the extent thereof shall be final, binding, and conclusive. No fractional interest shall be issued on account of any such adjustments.

 

 

 

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7.                 
Notice. All notices required or permitted under this Option Agreement must be in writing and personally delivered
or sent by mail and shall be deemed to be delivered on the date on which it is actually received by the person to whom it is properly
addressed. A notice shall be effective when actually received by the Company in writing and in conformance with this Option Agreement.
Until changed in accordance herewith, the Company and the optionee specify their respective addresses as set forth below:

 

		Company:	e.Digital Corporation

16870 W. Bernardo
Drive, Suite 120

San Diego, CA
92127

Attention: MarDee
Haring-Layton

 

		Optionee:	Donald Springer

#### ####### ##

Lantana, TX #####

 

8.                 
Information Confidential. As partial consideration for the granting of this Option, you agree that you will keep
confidential all information and knowledge that you have relating to the manner and amount of your Option; provided, however, that
such information may be disclosed as required by law and may be given in confidence to your spouse, tax and financial advisors,
or a financial institution to the extent that such information is necessary to obtain a loan.

 

9.                 
Furnish Information. You agree to furnish to the Company all information requested by the Company to enable it to
comply with any reporting or other requirement imposed upon the Company by or under any applicable statute or regulation.

 

10.             
Company Records. Records of the Company or its Subsidiaries regarding your period of service on the Board, termination
of that service and the reason therefor, and other matters shall be conclusive for all purposes hereunder.

 

11.             
Successors. This Agreement shall be binding upon you, your legal representatives, heirs, legatees and distributees,
and upon the Company, its successors and assigns.

 

12.             
Headings. The titles and headings of paragraphs are included for convenience of reference only and are not to be
considered in construction of the provisions hereof.

 

13.             
Governing Law. All questions arising with respect to the provisions of this Agreement shall be determined by application
of the laws of the State of Delaware except to the extent Delaware law is preempted by federal law. The obligation of the Company
to sell and deliver Stock hereunder is subject to applicable laws and to the approval of any governmental authority required in
connection with the authorization, issuance, sale, or delivery of such Stock.

 

14.             
Word Usage. Words used in the masculine shall apply to the feminine where applicable, and wherever the context of
this Agreement dictates, the plural shall be read as the singular and the singular as the plural.

 

15.             
No Other Agreements. This Option Agreement is not a contract of employment and the terms of your service on the Board
shall not be affected by, or construed to be affected by, this Option Agreement, except to the extent specifically provided herein.
Nothing herein shall impose, or be construed as imposing, any obligation (i) on the part of the Company or any Subsidiary to continue
your service on the Board, or (ii) on your part to remain in as a director of the Company or any Subsidiary.

 

Please indicate your
acceptance of all the terms and conditions of the Option by signing and returning a copy of this Option Agreement.

 

e.Digital Corporation

 

 

By:       /s/
Alfred Falk

Name:       Alfred
Falk

Title:       President & CEO

 

ACCEPTED:

 

/s/ Donald Springer

Signature of Optionee

 

Donald Springer

Name of Optionee (Please Print)

 

Date: November 2, 2016

 

    	 	3Exhibit 10.12

 

FIRST CHOICE EXECUTIVE SUITES,

(A SUB LEASE)

 

1.       PARTIES

 

This Lease, dated December 22, 2016 for reference purposes only,
is made by and between LJMG, Inc. d.b.a. First Choice Executive Suites hereinafter called "LJMG" and E-DIGITAL CORPORATION,
a Delaware corporation, hereinafter called "Tenant".

 

2.       PREMISES

 

LJMG does hereby Lease to Tenant and Tenant hereby leases from
LJMG that certain office space known as #419 (herein called "premises") as delineated on the attached floor plan
as Exhibit A on the 4th floor of the Bluffs Building, 16870 West Bernardo Drive, Suite 400, San Diego, CA 92127. This Lease is
subject to the terms, covenants and conditions set forth herein and Tenant covenants, as a material part of the consideration for
this Lease, to keep and perform each and all of these terms, covenants and conditions by it to be kept and performed and that this
Lease is made upon the condition of such performance.

 

3.       TERM

 

The term of this Lease shall be Twelve ( 12 ) months
commencing on the 2nd day of January, 2017. Tenant shall renew at maturity as specifically specified in 9. Option to
extend, unless one party serves unto the other, a required sixty-day written notice to terminate. Such term and any extension given
with the express written consent of LJMG, is herein called term.

 

4.       ENTRY
BY LANDLORD

 

LJMG has the right at any time, and upon reasonable notice,
to enter the premises to inspect them, to provide services to be furnished by LJMG, to make repairs and alterations to the premises
or other adjacent property of LJMG and to show the premises to prospective tenants of the premises or prospective purchasers of
LJMG.

 

5.       POSSESSION

 

If LJMG, for any reason whatsoever, cannot deliver possession
of the premises to the Tenant at the commencement of the term, LJMG will not be liable for any resulting damage, nor will this
Lease be affected, except that Tenant will not have to pay the rent (as hereafter defined) until LJMG can deliver possession. No
such failure of LJMG to deliver possession shall in any way affect or extend the expiration date of the term of this Lease. In
the event that LJMG should permit Tenant to occupy the premises prior to the commencement date of the term, such occupancy will
be subject to all of the provisions of this Lease, including, but not limited to, payment of rent at the rate provided in section
6, but shall not advance the termination date of the term.

 

6.       RENT

 

Tenant agrees to pay to LJMG a base rent of One Thousand
One Hundred and 00/100 Dollars ($1100.00)*, for the premises. Rent shall be payable monthly in lawful money of the United
States, and shall be DUE AND PAYABLE IN ADVANCE ON THE FIRST DAY OF THE MONTH BEFORE 5:00 PM. Your rent is critical!
No excuses will be accepted for non-payment. Rent can be paid by check unless any check is returned unpaid for any reason. Afterwards,
money order or cash can only pay rent.

 

*Rent is due on the first of the month and is considered late
if not paid by 4:00 p.m. on the 5th of the month. After which late charges as below will be incurred.

 

 

 

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The rent for the first month of this Lease shall be paid upon
execution of this Lease. If the term does not commence on the first day of the month, rental for the first fraction of the month
shall be prorated and shall be payable together with the next full month's rent. The rent shall be payable to LJMG and shall be
paid to the manager's office or to any agent designated in writing by LJMG to Tenant on the first day of the month for which such
rent is due, without any deduction or offset and without any notice or demand. A 3-day Notice to Pay or Quit will be served on
the 6th of the month if payment is not received by the 5th. A fee of $150.00 will be charged to Tenant after
the 1st initial Notice has been served. Tenant shall pay a late charge of five percent (5%) of any amount that is due
hereunder, provided that said late charge shall not be less than $5.00. LJMG and Tenant agree that such late charges are fair and
reasonable compensation for costs incurred by LJMG where there is default in payment under this Lease. Such costs are extremely
difficult to estimate and ascertain, but such costs include processing and accounting charges. Notwithstanding payment of such
late charge, Tenant shall not be excused from any default nor shall there be any waiver of any default by LJMG under this Lease.
There is a $50.00 fee for any returned check, plus applicable late charges. There is a $195.00 reinstatement fee if service has
been discontinued due to non-payment or late payment of rent or charges.

 

7.       SECURITY
DEPOSIT

 

Upon the execution of this Lease, Tenant shall deposit with
LJMG, ONE THOUSAND THREE HUNDRED FIFTY AND NO/100 DOLLARS ($1350.00), as security for the full and faithful performance
of each and every term, condition, covenant and provision of this Lease on Tenant's part to be performed. In the event Tenant defaults
in the performance of any of the terms hereof, or abandons the premises, LJMG may use, apply or retain the whole or any part of
such security for the payment of any rent or any other payment to be made by Tenant hereunder if is in default or of any other
sum which LJMG may spend or be required to spend by reason of Tenant's default. If Tenant, at the end of the term hereof, has fully
and faithfully complied with all of the terms and provisions of this Lease, the security or any balance thereof, shall then be
returned to Tenant within sixty (60) days after the end of the Term. Tenant shall not be entitled to interest on any such security
deposit. Should LJMG be required to resort to the security deposit as a result of default by Tenant hereunder and should Tenant
continue to occupy the premises after such default, Tenant agrees to deposit such funds as are necessary to replenish the security
deposit to the amount herein contained within ten (10) days of receipt from LJMG of written notice of the amount required to so
replenish such deposit.

 

8.       USE

Tenant shall use the premises for general office purposes and
to house Tenants’ phone systems and for no other purpose without the prior written consent of LJMG. Tenant agrees that Tenant
will not offer or use the premises to provide to others services provided by LJMG to LJMG's tenants, or make or permit any use
of the premises which is forbidden by law or regulation, may be hazardous or unsafe, may invalidate or increase the premium of
any policy of insurance carried by LJMG or may tend to impair the character, reputation, appearance or operation of the premises.
Tenant shall not do or permit anything to be done in or about the premises which will in any way obstruct or interfere with the
rights of other tenants or occupants of the building or injure or annoy them or use or allow the premises to be used for any improper,
immoral, unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or about the premises.
Tenant shall not commit or suffer to be committed any waste in or about the premises.

 

9.       OPTIONS
TO EXTEND

 

Tenant shall have the option to rent Suite(s) # 419 for
an additional Twelve (12) months. Tenant will inform Landlord on or before November 2, 2017 whether Tenant will exercise
this option otherwise this Agreement will automatically renew for an additional Twelve (12) Months at the current base rent plus
a Five percent 5% increase with any additional renewal periods at the then current base rent plus a Five percent (5%) increase.

 

 

 

 

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10. SERVICES

 

For the time the lease is in effect and, provided there are
no defaults thereof, LJMG agrees to make available access to the following services, at the stated monthly fixed charge. All services
not contracted for monthly shall be charged at the then published rates schedule on a pay as needed basis.

 

	PHONE LINE & EQUIPMENT RENTAL (2)	$150.00
	Voicemail (2)	INCLUDED
	Fax/Modem Line (0)	$0.00
	Executive Lounge	INCLUDED
	Telephone Answering (unlimited in-coming calls)	INCLUDED
	Conference Room Rental ( 8 ) Hours per month)	INCLUDED
	 (Each additional hour is $25.00. billed in 15 minutes increments)	 
	Other Operating Expenses under Master Lease	INCLUDED
	Internet connection (1)	$100.00
	Janitorial Services, Security, Utilities	INCLUDED
	TOTAL MONTHLY CONTRACT.	$250.00

 

Tenant contracts for the above services for the duration of
this lease. All other services are excluded from the service contract and shall be charged at the then published price schedule.
Total Service Contract charges for purpose of this lease will be considered additional rent, and are due on the first day of the
month before 4:00 p.m. (refer to Article 6., Rent).

 

10a. SETUP & INSTALLATION

 

Tenant will pay a one-time Setup & Installation fee in the
amount of $ 100.00, as well as all other charges noted on the accompanying Opening Invoice, to LJMG upon execution of this
Lease Agreement.

 

Setup & Installation fee is non-refundable and includes,
but is not limited to telephone installation, messaging system setup, credit verification and administrative functions as required
to process Lease Agreement and related paperwork.

 

11.       ALTERATIONS,
ADDITIONS AND REPAIRS

 

Except as may be otherwise expressly provided in this Lease,
LJMG has made no promise to alter or improve the premises nor has any representation been made concerning the condition thereof.
By taking possession of the premises, Tenant acknowledges that they are in good, sanitary order, condition and repair and 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. Tenant shall not mark, or drive nails, screw or drill into, the partitions, woodwork or plaster or
in any way deface such premises or any part thereof except as may be reasonably required to install or hang decorative items. Tenant
shall make no alterations or additions to the premises without LJMG's prior written consent. Tenant shall return the premises at
the end of the term in as good condition and repair as when Tenant received the premises, reasonable wear and tear and damage by
fire or other casualty excepted. LJMG may, but is not required to, make repairs or replacement required due to Tenant's misuse
of facility and Tenant shall pay to LJMG all costs and expenses thereof upon demand. Upon termination of this Lease, whether upon
expiration of the term hereof or sooner, Tenant agrees to pay Company reasonable costs not to exceed Two Hundred Dollars ($200.00)
per leased office within the premises to cover painting and cleaning costs for each office, plus $50.00 per non-returned key.

 

12.       ASSIGNMENT
AND SUBLETTING

 

Neither Tenant nor anyone claiming by, through or under Tenant
shall mortgage or assign this Lease or sublet the premises or any part thereof or permit the use of the premises by any person
other than Tenant or employees or independent contractor hired by Tenant, without the prior written consent of LJMG, which consent
shall not be unreasonably withheld. Consent to one assignment, subletting, occupation or use by any person other than Tenant shall
not be deemed to be consent to any subsequent assignment, subletting, occupation or use by another person.

 

 

 

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13.        HOLD HARMLESS

 

Tenant shall indemnify and hold LJMG harmless against and from
any and all claims arising from Tenant’s use of the premises for the conduct of business or from any activity, work or other
thing done, permitted or suffered by Tenant in or about the building, and shall further indemnify and hold harmless LJMG against
and from any and all claims arising from any breach or default in the performance of any obligation on Tenant's part to be performed
under the terms of this Lease, or arising from any act or negligence of Tenant, or any officer, agent, employee, guest, or invitee
of Tenant, and from all and against all costs, attorney's fees, expense and liabilities incurred in or about any such claim or
any action or proceeding brought thereon, and, if any case, action or proceeding be brought against LJMG by reason of any such
claim, Tenant upon notice from LJMG shall defend the same at Tenant's expense.

 

LJMG shall indemnify and hold Tenant harmless against and from
any and all claims arising from LJMG conduct of business or from any activity, work or other thing done, permitted or suffered
by LJMG in or about the building, and shall further indemnify and hold harmless Tenant against and from any and all claims arising
from any act or negligence of LJMG, or any officer, agent, employee, guest, or invitee of LJMG, and from all and against all costs,
attorney's fees, expense and liabilities incurred in or about any such claim or action or proceeding brought thereon, and, if in
any case, action or proceeding be brought against Tenant by reason of any such claim, LJMG upon notice from Tenant shall defend
the same at LJMG's expense.

 

The Tenant hereby assumes all risk of damage to property or
injury to persons, in, upon or about the premises (refer to Article 2), from any cause other than LJMG's negligence, and Tenant
hereby waives all claims in respect thereof against LJMG. LJMG or its agents shall not be liable for any damage to property entrusted
to employees of the building, nor for loss or damage to any property by theft or otherwise, nor for any injury to or damage to
persons or property resulting from fire, explosion, falling plaster, steam, gas, building or from the pipes, appliances or plumbing
works therein or from the roof, street, or subsurface or from any other place resulting from dampness or from any other cause whatsoever,
unless caused by or due to the act or negligence of LJMG, its agents, servants, or employees. Further, LJMG shall not be liable
for loss of business by Tenant, nor shall LJMG be liable for any latent defect in the premises or in the building. Tenant shall
give prompt notice to LJMG in case of fire or accidents in the premises or in the building or of defects therein or in the fixtures
or equipment.

 

14.       LIABILITY
INSURANCE

 

Tenant shall, at Tenant's sole expense, obtain and keep in force
during the term of this Lease a policy of comprehensive public liability insurance, with bodily injury and property damage aggregate
limits in an amount not less than three hundred thousand dollars ($300,000), insuring. Tenant and naming LJMG as an additional
insured against any liability arising out of the use, occupancy or maintenance of the premises and all areas that are appurtenant
thereto. The limit of said insurance shall not, however, limit the liability of Tenant hereunder.

 

15.       UTILITIES

 

Provided Tenant shall not be in default as set forth in articles
18 hereunder, LJMG agrees to furnish in reasonable quantities based on recognized normal business hours of 7:30 a.m. to 5:30 p.m.,
on generally recognized business days and subject to the rules and regulations of the building, electric current for lighting and
normal office use only, common restroom facilities with hot and cold water, heating and/or air conditioning. LJMG will provide
the aforementioned utilities as provided in its master lease agreement at no additional cost to tenant if use does not exceed the
provisions discussed in this paragraph above. LJMG shall not be liable to Tenant for any damage or failure to furnish such services,
as specified above, when such failure is caused by breakage, repairs, strikes, lockouts, or by any other cause, similar or dissimilar,
beyond the reasonable control of LJMG.

 

If, at any time during the term of this lease, Tenant decides
with LJMG's approval, to bring in his/her own copier requiring a dedicated power line, Tenant will be charged $50.00 per month
for additional SDG&E charges, to be included in the services as outlined in paragraph 10. 

 

* Janitorial service is included as part of the tenancy &
Monday-Friday.

 

 

 

 

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16.       USE
OF ADDRESS

 

Subject to the provisions of this section (16), Tenant is hereby
authorized to use the address of LJMG as Tenant's business address. In the event that this Lease terminates or any or all charges
are not kept current, LJMG may terminate Tenant's right to use the address. LJMG agrees that for a period of thirty (30) days after
notification to Tenant or termination of this Lease, LJMG will, at no charge to Tenant at Tenant’s option, either (i) hold
Tenant's mail at the premises or (ii) return all mail to sender. LJMG further agrees to hold all such mail beyond the thirty (30)
day period, and for such period as Tenant elects, provided that Tenant pays to LJMG a service fee of $75.00 per month. Landlord
permits Tenant use of address in Yellow Page Advertising.

 

17.         EMPLOYEE

 

Tenant recognizes that LJMG, in order to provide services to
Tenant and other lessees similar to Tenant, must expend significant time and money in training LJMG employees. Tenant, therefore,
agrees that during the term of this Lease and for six (6) months after its termination, Tenant will not offer employment to or
hire any employee currently employed with LJMG, or any former employee at the building where the premises are located that has
previously terminated their relationship with LJMG for a period of not less than 120 days. Unless Tenant obtains an express written
waiver from LJMG of the provisions of this section, Tenant shall be liable to LJMG for damages in the sum of twenty-five percent
(25%) of the annual compensation of any employee, or former employee hired by Tenant in violation of this paragraph. LJMG will
provide a list of current and former employees at the building where the premises are located to Tenant prior to Lease signature
and thereafter when changes in LJMG employees occur. Tenant and LJMG agree that this provision for liquidated damages is reasonable
and the actual damage that would be sustained by LJMG as the result of failure to honor this paragraph would be, from the nature
of the case, impracticable or extremely difficult to fix.

 

18.       DEFAULT

 

The occurrence of any one or more of the following events shall
constitute a default and breach of this Lease by Tenant.

 

		(i)	The failure of Tenant to comply with all laws, and other requirements regulating the conduct of Tenant's business;

 

		(ii)	The failure by Tenant to make any payment of rent or any other payment required to be made by Tenant hereunder as and when
due, where such failure shall continue for a period of five (5) days after written notice thereof by LJMG to Tenant; or

 

		(iii)	The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or
performed by Tenant, where such failure shall continue for a period of thirty (30) days after written notice thereof by LJMG to
Tenant or;

 

(iv)       The
abandonment of the premises by Tenant with failure to pay monthly charges in connection with this agreement. So long as Tenant
is paying its monthly charges, the premises shall not be deemed abandoned by LJMG.

 

19.       REMEDIES
IN DEFAULT

 

In the event of any default and breaches provided in paragraph
18 above, LJMG may at any time thereafter, with or without any further notice or demand and without limiting LJMG in the exercise
of a right or remedy, which LJMG may have by reason of such default or breach:

 

		19(a).	Terminate Tenant's right to possession of the premises by any lawful means, in which case this Lease shall terminate and Tenant
shall immediately surrender possession of the premises to LJMG. In such an event, LJMG shall be entitled to recover from Tenant
all damages incurred by LJMG by reason of Tenant's default including, but not limited to, the cost of recovering possession of
the premises; expenses of reletting, including necessary renovation and alteration of the premises; reasonable attorney's fees;
the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent for the balance
of the term after the time of such award exceeds the amount of such rental loss for the same period that Tenant proves could be
reasonably avoided. Unpaid installments of rent or other sums shall bear interest from the date due at the allowable maximum rate
provided by law. In the event Tenant shall have abandoned the premises, LJMG shall have the option of (a) taking possession of
the premises and recovering from Tenant the amount specified in this paragraph, or (b) proceeding under the provisions of the following
subsection 19(b).

 

 

 

 

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		19(b).	Maintain Tenant's right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned
the premises. In such an event, LJMG shall be entitled to enforce all of LJMG's rights and remedies under this Lease, including
the right to recover the rent as it becomes due hereunder.

 

		19(c).	Pursue any other remedy now or hereafter available to LJMG under the laws or judicial decisions of the State of California.

 

20.       HOLDING
OVER

 

Should Tenant continue in possession of the premises after expiration
or any other termination of the term and without LJMG’s written consent, such possession shall be under the provisions of
this Lease, except that such occupancy shall be a tenancy from month to month at a rent in an amount equal to 150% of the last
monthly rent, plus all other charges payable hereunder, shall continue at such rate until possession is surrendered, and shall
be governed by all other terms herein applicable to a month to month tenancy. LJMG shall be entitled to exercise all remedies available
to LJMG on account of such continued possession, and Tenant's obligation to pay rent and all other charges payable hereunder shall
be in addition, and without prejudice, to such remedies.

 

21.       BUILDING
MASTER LEASE

 

Tenant hereby acknowledges that LJMG is a Tenant pursuant to
a ten (10) year Master Lease with POI – Rancho Bernardo Bluffs Trust, a Maryland Real Estate Investment Trust, dated August
7, 2003 and commencing February 1, 2004 with respect to the premises herein leased. A copy of the building rules and regulations
are contained in Exhibit B. Tenant understands the occupancy of the premises is subject to, in addition to this Lease, the provisions
of the Master Lease. Tenant will comply with all rules, regulations and requirements of the building in which the premises are
located and with other reasonable rules and regulations established by LJMG and relating to the premises and Tenant's use thereof;
provided, however, that in all cases Tenant will be obligated to comply with only those rules, regulations, and requirements of
which Tenant has been given written notice. LJMG will have no responsibility to Tenant for violation of any Lease provisions or
rules and regulations by any other Tenant of LJMG. Termination of the Master Lease will terminate this Lease and all of LJMG's
obligations hereunder.

 

22.       ATTORNEY'S
FEES

 

In the event of any legal action or proceeding by Tenant or
LJMG against the other under the terms of this Lease, the prevailing party shall be entitled to recover all expenses and costs,
including reasonable attorneys' fees and costs of appeal, if any.

 

23.       NOTICE

 

All notices by Tenant or LJMG to the other must be in writing.
Notices to Tenant will be considered given if delivered personally to Tenant or one of Tenant's officers or mailed by registered
or certified mail, postage prepaid, addressed to Tenant at the address appearing below Tenant's signature herein. Notices to LJMG
will be considered given if personally delivered to the Owner or Leasing Manager, or mailed by registered or certified mail, postage
prepaid, to LJMG at LJMG's address set forth below signature herein. Either party may change the address to which it is to receive
notice hereunder by designating such new address in writing pursuant to the provisions of this section 23.

 

24.       SUCCESSORS
AND ASSIGNS

 

All the terms, covenants and conditions of this Lease shall
inure to the benefit of and be binding upon the successors and assigns of LJMG and, subject to the restrictions on assignment herein
contained, the successors and assigns of Tenant to the same extent that said terms, covenants and conditions inure to the benefit
of and are binding upon LJMG and Tenant respectively.

 

25.       TIME

 

Time is of the essence of this Lease and each and all of its
provisions in which performance is a factor.

 

26.       SEPARABILITY

 

The invalidity or unenforceability of any provision hereof shall
not affect or impair the validity of any other provision. No waiver of any default of tenant shall be implied by any failure of
LJMG to take action with respect to such default.

 

 

    	 	6	 

     

    

 

 

27.       TELEPHONE
SYSTEM

 

Landlord shall provide Tenant access to a telephone
system and telephone devices. Landlord shall determine the number and nature of telephone devices to be installed upon the
demised premises. It shall be Landlord's responsibility to obtain and install such telephone devices and provide access to
the telephone system servicing the building. In consideration therefore, Tenant shall pay to Landlord an installation, set-up
and programming fee as delineated in 10a. Tenant shall pay to Landlord monthly rental and service charges unless specifically
included in the rent. Such sums shall be paid by Tenant to Landlord on the first day of the month before 4:00 p.m., after
Landlord submits to Tenant a statement, in writing, setting forth the amount of such fees and charges. Subject to the
provisions of this section (27), Tenant is hereby authorized to use the telephone number of LJMG as Tenant's telephone
number. In the event that this Lease terminates or any or all charges are not kept current, LJMG may terminate Tenant's right
to use the telephone number. LJMG agrees that for a period of thirty (30) days after notification to Tenant or termination of
this Lease, LJMG will, at no charge to Tenant, refer Tenant's new telephone and fax number. LJMG further agrees to continue
referring Tenants telephone and fax number beyond the thirty
(30) day period, and for such period as Tenant elects, provided that Tenant pays to LJMG a service fee of $75.00 per
month.

 

28.       SALE,
LEASE OR ASSIGNMENT OF LJMG

 

The term "Landlord" as used in this Lease, means only
the owner for the time being of the right to possession of the 4th Floor of the Bluffs Building, so that in the event of any sale
or transfer or transfers of the 4th Floor or the making of any lease or leases thereof, or the sale or the transfer or transfers
or the assignment or assignments of any such lease or leases, previous landlords shall be and hereby are relieved of all covenants
and obligations of Landlord hereunder provided that the transferee, acquiror or lessee has assumed and agreed to carry out any
and all of the covenants and obligations of the Landlord hereunder to Landlord's exoneration, and Tenant shall thereafter be bound
to and shall attorn to such transferee, acquiror or lessee, as the case may be, as Landlord under this Lease.

 

29.       PRIOR AGREEMENTS

 

This agreement supersedes any prior agreement, and embodies
the entire agreement between Tenant and LJMG relative to its subject matter, and may not be modified, changed or altered in any
way except in writing signed by each of the parties. This Lease shall be interpreted and enforced in accordance with the Laws of
the State of California.

 

30.       RECOVERING
COSTS BEYOND LANDLORD’S CONTROL

 

If services included in the rent determined by third parties
increase (for example parking or utilities), Landlord reserves the right to pass the increase through to Tenant by Notifying Tenant
with a written 30-day notice.

 

31.       SPECIAL PROVISIONS

 

By insertion of Exhibit listings in the following space provided
in this section, Landlord and Tenant acknowledge that Exhibits listed are attached hereto and made a part hereof. If nothing is
set forth in the following space provided in this section, it is conclusive that no additional provisions or Exhibits are part
of this Lease.

 

The following listing of Exhibits are considered a part of this
Lease Agreement: Exhibit A, Floor plan; Exhibit B,
Rules and Regulations; Exhibit C, Payment Terms; Exhibit D, Price List. INITIAL TO ACKNOWLEDGE
RECEIPT ____________

 

	LANDLORD	 	TENANT
	LJMG, INC.,	 	E-DIGITAL CORPORATION
	a California corporation	 	a Delaware corporation
	 	 	 
	Address: Headquarters	 	Address: 16870 West Bernardo Drive
	7825 Fay Avenue	 	Suite 400
	Suite 200	 	San Diego, CA 92127
	La Jolla, CA 92037	 	 
	 	 	 
	BY: /s/ Thomas J. Martindale	 	BY: /s/ Fred Falk
	Thomas J. Martindale	 	
	TITLE: Its President/CEO	 	 
	 	 	TITLE: President & CEO
	 	 	NAME: Fred Falk
	 	 	(Please Print)
	 	 	 
	DATE: January 15, 2017	 	DATE: December 23, 2016

 

 

    	 	7

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