Document:

Exhibit 10.6

 

STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT
LEASE - GROSS

 

1.            Basic
Provisions ("Basic Provisions").

 

1.1       Parties:
This Lease ("Lease"), dated for reference purposes only April 1, 2015, is made by and between Zoned Properties,
Inc. an Arizona Corporation ("Lessor") and Tech Group North America, Inc. an Arizona Corporation ("Lessee"),
(collectively the "Parties", or Individually a "Party").

 

1.2(a)  Premises:
That certain portion of the project (as defined below), including all improvements therein or to be provided by Lessor located
in the city of Tempe, county of Maricopa, State of Arizona, with zip code 86281, as outlined in "Exhibit A" attached
hereto ("Premises") and generally described as: 422 S. Madison Dr., Suites 1, 2, 3, 4 and 5, Tempe, AZ 85281
and consisting of approximately 22,355 rentable square feet (100% of building). In addition to Lessee's rights to use and
occupy the Premises as hereinafter specified, Lessee shall have non-exclusive rights to any utility raceways of the building containing
the Premises ("Building") and to the Common Areas (as defined in Paragraph 2.6 below), but shall not have any
rights to the roof, or exterior walls of the building or to any other buildings in the Project. The Premises, the Building, the
Common Areas, the land upon which they are located, along with any other buildings and improvements thereon, are herein collectively
referred to as the "Project."

 

1.2(b)  Parking:
N/A unreserved vehicle parking spaces.

 

1.3      Term:
sixty (60) months ("Original Term") commencing on April 1, 2015 ("Commencement Date") and expiring
on March 31, 2020 ("Expiration Date").

 

1.4      Early
Possession: N/A ("Early Possession Date").

 

1.5      Base
Rent: The Base Rent shall be $0.7159 psf per month plus CAM, property taxes, insurance and applicable rental taxes and shall
increase annually per the schedule below ("Base Rent") payable on the first day of each month.

 

	 	 	 	 	Base
    Rent	Base
    Rent/	Base
    Rent/
	Year	Mos.	From	To	PSF/Month	Month	Year
	1	12	4/1/2015	3/31/2016	$0.7159	$16,003.95	$192,047.32
	2	12	4/1/2016	3/31/2017	$0.7374	$16,484.58	$197,814.92
	3	12	4/1/2017	3/31/2018	$0.7595	$16,978.62	$203,743.46
	4	12	4/1/2018	3/31/2019	$0.7823	$17,488.32	$209,859.79
	5	12	4/1/2019	3/31/2020	$0.8058	$18,013.66	$216,163.90

 

1.6      Lessee's
Share of Common Area Operating Expenses: 27.14% ("Lessee's Share"). In the event that the size of the Premises
and/or the Project are modified during the term of this Lease, Lessor shall recalculate Lessees Share to reflect such modification.

 

1.7     Base
Rent and Other Monies Paid Upon Execution:

 

(a)        
Base Rent: $16,003.95.

 

(b)         Common Area Operating Expenses: $1,546.22.

 

(c)        
Rental Tax (2.3%): $368.09

 

(d)         Security Deposit: Tenant to pay an additional security deposit of $13,000.00. Landlord currently holding a security deposit of
$3,135.60. Total security deposit to be $16,135.60.

 

(e)         Total
Due Upon Execution of this Lease: $30,918.26

 

1.8      Agreed
Use: Warehousing of plastic resin, production parts and related uses for a plastics injection mold business.

 

1.9      Insuring
Party: Lessor is the "Insuring Party".

 

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1.10    Real
Estate Brokers: The following real estate brokerage relationships exist in this transaction (the "Brokers"):
TCT Commercial represents Lessor exclusively ("Lessor's Broker") and N/A represents Lessee exclusively ("Lessee's
Broker"). Upon execution and delivery of the Lease by both Parties, Lessor shall pay the Brokers for the brokerage services
rendered by the Brokers the fee agreed to in a separate written agreement.

 

1.11    Guarantor.
N/A.

 

1.12    Exhibits.
Attached hereto are the following, all of which constitute a part of the lease:

 

 Addendum to Lease

 Exhibit A — Premises

 Exhibit B —Work
Letter

 

2.            Premises.

 

2.1      Letting.
Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental and upon all of
the terms, covenants and conditions set forth in this Lease. While the approximate square footage of the Premises may have been
used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied to square footage and
is not subject to adjustment should the actual size be determined to be different. 

 

2.2      Condition.
Lessor shall deliver the Premises to Lessee broom clean and free of debris on the Commencement Date or the Early Possession Date,
whichever first occurs ("Start Date”), and, so long as the required service contracts described in Paragraph
6.1(b) below are obtained by Lessee and in effect within thirty days following the Start Date, warrants that the existing electrical,
plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems ("HVAC"), loading doors,
sump pumps, if any, and all other such elements in the Premises, other than those constructed by Lessee, shall be in good operating
condition on said date, that the structural elements of the roof, bearing walls and foundation of the Premises shall be free of
material defects, and that the Premises does not contain hazardous levels of any mold or fungi defined as toxic under applicable
state or federal law. If a non-compliance with such warranty exists as of the Start Date, or if one of such systems or elements
should malfunction or fall within the appropriate warranty period, Lessor shall, as Lessor's sole obligation with respect to such
matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificity
the nature and extent of such non-compliance, malfunction or failure, rectify same at Lessor's expense. The warranty periods shall
be as follows: (i) 6 months as to the HVAC systems, and (ii) 30 days as to the remaining systems and other elements of the Premises.
If Lessee does not give Lessor the required notice within the appropriate warranty period, correction of any such non-compliance,
malfunction or failure shall be the obligation of Lessee at Lessee's sole cost and expense (except for the repairs to the fire
sprinkler systems, roof, foundations, and/or bearing walls). Lessor also warrants, that unless otherwise specified in writing,
Lessor is unaware of (i) any recorded Notices of Default affecting the Premise; (ii) any delinquent amounts due under any loan
secured by the Premises; and (iii) any bankruptcy proceeding affecting the Premises.

 

2.3      Compliance.
Lessor warrants that to the best of its knowledge the improvements on the Premises and the Common Areas comply with the building
codes applicable laws, covenants or restrictions of record, regulations, and ordinances ("Applicable Requirements")
that were in effect at the time that each improvement, or portion thereof, was constructed. Said warranty does not apply to the
use to which Lessee will put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar
laws as a result of Lessee's use, or to any Alterations or Utility Installations (as defined in Paragraph 6.3(a)) made or to be
made by Lessee. If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt
of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify the same at
Lessor's expense. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction
of an addition to or an alteration of the Premises and/or Building, the remediation of any Hazardous Substance, or the reinforcement
or other physical modification of the Unit, Premises and/or Building ("Capital Expenditure"), Lessor and Lessee
shall allocate the cost of such work as follows:

 

(a)      Subject
to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result of the specific and unique use of the Premises
by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however,
that if such Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds 6 months' Base
Rent, Lessee may Instead terminate this Lease unless Lessor notifies Lessee, in writing, within 10 days after receipt of Lessee's
termination notice that Lessor has elected to pay the difference between the actual cost thereof and the amount equal to 6 months'
Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital Expenditure
and deliver to Lessor written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however,
in no event be earlier than the last day that Lessee could legally utilize the Premises without commencing such Capital Expenditure.

 

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(b)      If
such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated
seismic modifications), then Lessor shall pay for such Capital Expenditure and Lessee shall only be obligated to pay, each month
during the remainder of the term of this Lease or any extension thereof, on the date that on which the Base Rent is due, an amount
equal to 1/144th of the portion of such costs reasonably attributable to the Premises. Lessee shall pay Interest on the balance
but may prepay its obligation at any time. If, however, such Capital Expenditure is required during the last 2 years of this Lease
or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have the option
to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 days
after receipt of Lessor's termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate,
and falls to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with Interest, from
Rent until Lessor's share of such costs have been fully paid. If Lessee is unable to finance Lessor's share, or if the balance
of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee
shall have the right to terminate this Lease upon 30 days written notice to Lessor.

 

(c)      Notwithstanding
the above, the provisions concerning Capital Expenditures are intended to apply only to non-voluntary, unexpected, and new Applicable
Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use,
change in intensity of use, or modification to the Premises then, and in that event, Lessee shall either: (i) immediately cease
such changed use or intensity of use and/or take such other steps as may be necessary to eliminate the requirement for such Capital
Expenditure, or (ii) complete such Capital Expenditure at its own expense. Lessee shall not have any right to terminate this Lease.

 

2.4      Acknowledgements. Lessee
acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b)  it has been advised by
Lessor and/or Brokers to satisfy itself with respect to the size and condition of the Premises (including but not limited
to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable
Requirements and the Americans with Disabilities Act), and their suitability for Lessee's intended use, (c) Lessee has made
such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same
relate to its occupancy of the Premises, (d) it is not relying on any representation as to the size of the Premises made by
Brokers or Lessor, (e) the square footage of the Premises was not material to Lessee's decision to lease the Premises and pay
the Rent stated herein, and (f) neither Lessor, Lessor's agents, nor Brokers have made any oral or written representations or
warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i)
Brokers have made no representations, promises or warranties concerning Lessee's ability to honor the Lease or suitability to
occupy the Premises, and (ii) it is Lessor's sole responsibility to investigate the financial capability and/or suitability
of all proposed tenants.

 

2.5      Vehicle
Parking. Lessee shall be entitled to use the number of Parking Spaces specified in Paragraph 1.2(b) on those portions of the
Common Areas designated from time to time by Lessor for parking. Lessee shall not use more parking spaces than said number. Said
parking spaces shall be used for parking by vehicles no larger than full-size passenger automobiles or pick-up trucks, herein
called "Permitted Size Vehicles." Lessor may regulate the loading and unloading of vehicles by adopting Rules
and Regulations as provided in Paragraph 2.8. No vehicles other than Permitted Size Vehicles may be parked in the Common Area
without the prior written permission of Lessor. In addition:

 

(a)       Lessee
shall not permit or allow any vehicles that belong to or are controlled by Lessee or Lessee's employees, suppliers, shippers,
customers, contractors or invitees to be loaded, unloaded, or parked in areas other than those designated by Lessor for such activities.

 

(b)      Lessee
shall not service or store any vehicles in the Common Areas.

 

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(c)      If
Lessee permits or allows any of the prohibited activities described in this Paragraph 2.5, then Lessor shall have the right, without
notice, in addition to such other rights and remedies that it may have, to remove or two away the vehicle involved and charge
the cost to Lessee, which cost shall be immediately payable upon demand by Lessor.

 

2.6      Common
Areas - Definition. The term "Common Areas" is defined as all areas and facilities outside the Premises
and within the exterior boundary line of the Project and interior utility raceways and installations within the Unit that are
provided and designated by the Lessor from time to time for the general non-exclusive use of Lessor, Lessee and other tenants
of the Project and their respective employees, suppliers, shippers, customers, contractors and invitees, including parking
areas, loading and unloading areas, trash areas, roadways, walkways, driveways and landscaped areas.

 

2.7      Common
Areas - Lessee's Rights. Lessor grants to Lessee, for the benefit of Lessee and its employees, suppliers, shippers, contractors,
customers and invitees, during the term of this Lease, the non-exclusive right to use, in common with others entitled to such use,
the Common Areas as they exist from time to time, subject to any rights, powers, and privileges reserved by Lessor under the terms
hereof or under the terms of any rules and regulations or restrictions governing the use of the Project. Under no circumstances
shall the right herein granted to use the Common Areas be deemed to include the right to store any property, temporarily or permanently,
in the Common Areas. Any such storage shall be permitted only by the prior written consent of Lessor or Lessor's designated agent,
which consent may be revoked at any time. In the event that any unauthorized storage shall occur, then Lessor shall have the right,
without notice, in addition to such other rights and remedies that it may have, to remove the property and charge the cost to
Lessee, which cost shall be immediately payable upon demand by Lessor.

 

2.8      Common
Areas - Rules and Regulations. Lessor or such other person(s) as Lessor may appoint shall have the exclusive control and management
of the Common Areas and shall have the right, from time to time, to establish, modify, amend and enforce reasonable rules and
regulations ("Rules and Regulations") for the management, safety, care, and cleanliness of the grounds, the parking
and unloading of vehicles and the preservation of good order, as well as for the convenience of other occupants or tenants of
the Building and the Project and their invitees. Lessee agrees to abide by and conform to all such Rules and Regulations, and
shall use its best efforts to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform.
Lessor shall not be responsible to Lessee for the non-compliance with said Rules and Regulations by other tenants of the Project.

 

2.9      Common
Areas - Changes. Lessor shall have the right, in Lessor's sole discretion, from time to time:

 

(a)       To
make changes to the Common Areas, including, without limitation, changes in the location, size, shape and number of driveways,
entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas,
walkways and utility raceways;

 

(b)       To
close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available;

 

(c)       To
designate other land outside the boundaries of the Project to be a part of the Common Areas;

 

(d)       To
add additional buildings and improvements to the Common Areas;

 

(e)       To
use the Common Areas while engaged in making additional improvements, repairs or alterations to the Project, or any portion thereof;
and

 

(f)       To
do and perform such other acts and make such other changes in, to or with respect to the Common Areas and Project as Lessor may,
in the exercise of sound business judgment, deem to be appropriate. The foregoing common area changes shall not impair Lessee's
access to or use of the Premises.

 

3.            Term.

 

3.1      Term.
The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3.

 

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3.2      Delay
in Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises to Lessee
by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall not be subject
to any liability therefor, nor shall such failure affect the validity of this Lease or change the Expiration Date. Lessee shall
not, however, be obligated to pay Rent or perform its other obligations
until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall
run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under
the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession is not delivered within
90 days after the Commencement Date, as the same may be extended under the terms of any Work Letter executed by Parties, Lessee
may, at its option, by notice in writing within 10 days after the end of such 90 day period, cancel this Lease, in which event
the Parties shall be discharged from all obligations hereunder. If such written notice is not received by Lessor within said 10
day period, Lessee's right to cancel shall terminate. If possession of the Premises is not delivered within 120 days after the
Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing.

 

3.3      Lessee
Compliance. Lessor shall not be required to tender possession of the Premises to Lessee until Lessee complies with its obligation
to provide evidence of insurance, Pending delivery of such evidence, Lessee shall be required to perform all of its obligations
under this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor's election to withhold possession
pending receipt of such evidence of insurance.

 

4.            Rent.

 

4.1.     Rent
Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are
deemed to be rent ("Rent").

 

4.2.    Common
Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share (as
specified in Paragraph 1.6) of all Common Area Operating Expenses, as hereinafter defined, during each calendar year of the term
of this Lease, in accordance with the following provisions:

 

(a)      The
following costs relating to the ownership and operation of the Project are defined as "Common Area Operating Expenses":

 

(i)       Costs
relating to the operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see subparagraph
(e)), of the following:

 

(aa)    The
Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways,
walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators,
roofs, exterior walls of the buildings, building systems and roof drainage systems.

 

(bb)   Exterior
signs and any tenant directories.

 

(cc)   Any
fire sprinkler systems.

 

(dd)   All
other areas and improvements that are within the exterior boundaries of the Project but outside of the Premises and/or any other
space occupied by a tenant.

 

(ii)       The
cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered.

 

(iii)      The
cost of trash disposal, pest control services, property management, security services, owner's association dues and fees, the
cost to repaint the exterior of any structures and the cost of any environmental inspections.

 

(iv)     
Any increase above the Base Real Property Taxes (as defined in Paragraph 9).

 

(v)      
Any "Insurance Cost Increase" (as defined in Paragraph 7).

 

(vi)      Any
deductible portion of an insured loss concerning the Building or the Common Areas.

 

(vii)     Auditors',
accountants' and attorneys' fees and costs related to the operation, maintenance, repair and replacement of the Project.

 

(viii)    The
cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided; however,
that Lessor shall allocate the cost of any such capital improvement over a 12 year period end Lessee shall not be required to
pay more than Lessee's Share of 1/144th of the cost of such capital improvement in any given month. The cost of such improvement
shall be capitalized under GAAP and amortized over the useful life of such improvements and the annual amortization shall be deemed
an operating expense in each of the calendar years during which the cost of the improvement is amortized.

 

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(ix)       The
cost of any other services to be provided by Lessor that are stated elsewhere in this Lease to be a Common Area Operating Expense.

 

(b)      Any
Common Area Operating Expenses and Real Property Taxes that are specifically attributable to the Unit, the Building or to any
other building In the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such Premises,
Building, or other building. However, any Common Area Operating Expenses and Real Property Taxes that are not specifically attributable
to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equitably allocated by
Lessor to all buildings in the Project.

 

(c)      The
inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(a) shall not be deemed to impose an obligation
upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same,
Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of them.

 

(d)      Lessee's
Share of Common Area Operating Expenses is payable monthly on the same day as the Base Rent is due hereunder. The amount of such
payments shall be based on Lessor's estimate of the annual Common Area Operating Expenses. Within 60 days after written request
(but not more than once each year) Lessor shall deliver to Lessee a reasonably detailed statement showing Lessee's Share of the
actual Common Area Operating Expenses for the preceding year. If Lessee's payments during such year exceed Lessee's Share, Lessor
shall credit the amount of such over-payment against Lessee's future payments. If Lessee's payments during such year were less
than Lessee's Share, Lessee shall pay to Lessor the amount of the deficiency within 10 days after delivery by Lessor to Lessee
of the statement.

 

(e)      Common
Area Operating Expenses shall not include the cost of replacing equipment or capital components such as the roof, foundations,
exterior walls or Common Area capital improvements, such as the parking lot paving, elevators, fences that have a useful life
for accounting purposes of 5 years or more. In addition, Capital Improvements shall only be included in Operating Expenses if
the cost of any improvement made to the Project during any calendar year is necessary to comply with a legal requirement not existing
as of the Commencement Date or if such improvement will reduce Operating Expenses (i.e. a labor saving improvement) or enhance
services.

 

(f)       Common
Area Operating Expenses shall not include any expenses paid by any tenant directly to third parties, or as to which Lessor is
otherwise reimbursed by any third party, other tenant, or insurance proceeds.

 

(g)      Lessee
shall have the right to inspect or audit Lessor's books and records of Operating Expenses during the term of the Lease.

 

4.3      Payment.
Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States, without offset or deduction
(except as specifically permitted in this Lease), on or before the day on which it is due. In the event that any statement or
invoice prepared by Lessor is inaccurate such inaccuracy shall not constitute a waiver and Lessee shall be obligated to pay the
amount set forth in this Lease. Rent for any period during the term hereof which is for less than one full calendar month shall
be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated
herein or to such other persons or place as Lessor may from time to lime designate in writing. Acceptance of a payment which is
less than the amount then due shall not be a waiver of Lessors rights to the balance of such Rent, regardless of Lessor's endorsement
of any check so stating. In the event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored
for any reason, Lessee agrees to pay to Lessor the sum of $100.00 in addition to any Late Charge and Lessor, at its option, may
require all future Rent be paid by cashier's check. Payments will be applied first to accrued late charges and attorney's fees,
second to accrued interest, then to Base Rent and Common Area Operating Expenses, and any remaining amount to any other outstanding
charges or costs.

 

5.            Use.

 

5.1      Use.
Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably comparable thereto,
and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage,
waste or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Other than guide, signal
and seeing eye dogs, Lessee shall not keep or allow in the Premises any pets, animals, birds, fish, or reptiles. Lessor shall
not unreasonably withhold or delay its consent to any written request for a modification of the Agreed Use, so long as the same
will not impair the structural integrity of the Building or the mechanical or electrical systems therein, and/or is not significantly
more burdensome to the Project. If Lessor elects to withhold consent, Lessor shall within 7 days after such request give written
notification of same, which notice shall include an explanation of Lessor's objections to the change in the Agreed Use.

 

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5.2     Hazardous
Substances.

 

(a)     Reportable
Uses Require Consent. The term "Hazardous Substance" as used in this Lease shall mean any product, substance,
or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other
materials expected to be on the Premises, is either (i) potentially injurious to the public health, safety or welfare, the environment
or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor
to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substances shall include,
but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof.
Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without
the express prior written consent of Lessor and timely compliance (at Lessee's expense) with all Applicable Requirements. "Reportable
Use" shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report,
notice, registration or business plan is required to be filed with, any governmental authority, and/or (iii) the presence at the
Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons
entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary
materials reasonably required to be used in the normal course of the Agreed Use, ordinary office supplies (copier toner, liquid
paper, glue, etc.) and common household cleaning materials, so long as such use is in compliance with all Applicable Requirements,
is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage
or expose Lessor to any liability therefor. In addition, Lessor may condition its consent to any Reportable Use upon receiving
such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment
against damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before
Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security Deposit.

 

(b)     Duty
to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located In,
on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice
of such fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which It has concerning
the presence of such Hazardous Substance.

 

(c)     Lessee
Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the
Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee's expense, comply with all Applicable
Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required,
for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties,
that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the
Premises during the term of this Lease, by or for Lessee.

 

(d)      Lessee
Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, If any,
harmless from and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys'
and consultants' fees arising out of or Involving any Hazardous Substance brought onto the Premises by or for Lessee (provided,
however, that Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance
under the Premises from areas outside of the Project not caused or contributed to by Lessee). Lessee's obligations shall include,
but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by
Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or
termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee
from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing
at the time of such agreement.

 

    	 	7	 

    

    

 

(e)      Lessor
Indemnification. Except as otherwise provided in paragraph 7.7, Lessor and its successors and assigns shall indemnify, defend,
reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the
cost of remediation, which suffered as a direct result of Hazardous Substances on the Premises prior to Lessee taking possession
or which are caused by Lessor, its agents or employees. Lessor's obligations, as and when required by the Applicable Requirements,
shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall
survive the expiration or termination of this Lease.

 

(f)       Investigations
and Remediations. Lessor shall retain the responsibility and pay for any investigations or remediation measures required by
governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee
taking possession, unless such remediation measure is required as a result of Lessee's use (including "Alterations",
as defined in paragraph 6.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall
cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor's agents to have reasonable
access to the Premises at reasonable times in order to carry out Lessor's investigative and remedial responsibilities.

 

(g)      Lessor
Termination Option. If a Hazardous Substance Condition occurs during the term of this Lease, unless Lessee is legally responsible
therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and
this Lease shall continue in full force and effect, but subject to Lessor's rights under Paragraph 5.2(d) and Paragraph 12), Lessor
may, at Lessor's option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably
possible at Lessor's expense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost
to remediate such condition exceeds 12 times the then monthly Base Rent or $100,000, whichever is greater, give written notice
to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor's
desire to terminate this Lease as of the date 60 days following the date of such notice. In the event Lessor elects to give a
termination notice, Lessee may, within 10 days thereafter, give written notice to Lessor of Lessee's commitment to pay the amount
by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly
Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within
30 days following such commitment in such event, this Lease shall continue in full force and effect, and Lessor shall proceed
to make such remediation as soon as reasonably possible after the required funds are available. if Lessee does not give such notice
and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified
in Lessor's notice of termination.

 

5.3      Lessee's
Compliance with Applicable Requirements. Except as otherwise provided in this Lease, Lessee shall, at Lessee's sole expense,
fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable
fire insurance underwriter or rating bureau, and the recommendations of Lessor's engineers and/or consultants which relate in
any manner to such Requirements, without regard to whether said Requirements are now in effect or become effective after the Start
Date. Lessee shall, within 10 days after receipt of Lessor's written request; provide Lessor with copies of sit permits and other
documents, and other information evidencing Lessee's compliance with any Applicable Requirements specified by Lessor, and shall
immediately upon receipt, notify Lessor in writing (with copies of any documents Involved) of any threatened or actual claim,
notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with
any Applicable Requirements. Likewise, Lessee shall immediately give written notice to Lessor of: (i) any water damage to the
Premises and any suspected seepage, pooling, dampness or other condition conducive to the production of mold; or (ii) any mustiness
or other odors that might indicate the presence of mold in the Premises.

 

5.4      Inspection;
Compliance. Lessor and Lessor's "Lender" and consultants shall have the right to enter into Premises at any
time, in the case of an emergency, and otherwise at reasonable times after reasonable notice, for the purpose of Inspecting the
condition of the Premises and for verifying compliance by Lessee with this Lease, The cost of any such inspections shall be paid
by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance Condition is found to exist or be imminent,
or the inspection is requested or ordered by a governmental authority and Lessee has caused such violation, in which case Lessee
shall pay For such inspection. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long
as such inspection is reasonably related to the violation or contamination. In addition, Lessee shall provide copies of all relevant
material safety data sheets (MSDS) to Lessor within 10 days of the receipt of written request therefore.

 

    	 	8	 

    

    

 

6.            Maintenance;
Repairs; Utility Installations; Trade Fixtures and Alterations.

 

6.1      Lessee's
Obligations.

 

(a)      In
General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 5.3 (Lessee's Compliance with Applicable
Requirements), 6.2 (Lessor's Obligations), 8 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee's sole expense,
keep the Premises, Utility Installations (intended for Lessee's exclusive use, no matter where located), and Alterations in good
order, condition and repair including, but not limited to, all equipment or facilities, such as plumbing, HVAC equipment, electrical,
lighting facilities, boilers, pressure vessels, fixtures, interior walls, interior surfaces of exterior walls, ceilings, floors,
windows, doors, plate glass, and skylights but excluding any items which are the responsibility of Lessor pursuant to Paragraph
6.2. Lessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices,
specifically including the procurement and maintenance of the service contracts required by Paragraph 6.1(b) below. Lessee's obligations
shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part
thereof in good order, condition and state of repair.

 

(b)      Service
Contracts. Lessee shall, at Lessee's sole expense, procure and maintain contracts, with copies to Lessor, in customary form
and substance for, and with contractors specializing and experienced in the maintenance of the following equipment and improvements,
if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler and pressure vessels, and (iii) clarifiers. However,
Lessor resolves the right, upon notice to Lessee after a breach by Lessee, to procure and maintain any or all of such service
contracts, and Lessee shall reimburse Lessor, upon demand, for the cost thereof.

 

(c)      Failure
to Perform. If Lessee falls to perform Lessee's obligations under this Paragraph 6.1, Lessor may enter upon the Premises after
10 days' prior written notice to Lessee (except in the case of an emergency, in which case no notice shall be required), perform
such obligations on Lessee's behalf, and put the Premises in good order, condition and repair, and Lessee shall promptly pay to
Lessor a sum equal to 125% of the cost thereof.

 

(d)      Replacement.
Subject to Lessee's indemnification of Lessor as set forth in Paragraph 7.7 below, and without relieving Lessee of liability resulting
from Lessee's failure to exercise and perform good maintenance practices, if an item described in Paragraph 6.1(b) cannot be repaired
other than at a cost which is in excess of 50% of the cost of replacing such item, then such item shall be replaced by Lessor,
and the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during the remainder
of the term of this Lease, on the date on which Base Rent is due, an amount equal to the product of multiplying the cost of such
replacement by a fraction, the numerator of which is one, and the denominator of which is 144 (le. 1/144th of the cost per month).
Lessee shall pay interest on the unamortized balance but may prepay its obligation at any time.

 

6.2      Lessor's
Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 4.2 (Common Area Operating Expenses),
6 (Use), 7.1 (Lessee's Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject to reimbursement pursuant
to Paragraph 4.2, shall keep in good order, condition and repair the foundations, exterior walls, structural condition of interior
bearing walls, exterior roof, fire sprinkler system, Common Area fire alarm and/or smoke detection systems, fire hydrants, parking
lots, walkways, parkways, driveways, landscaping, fences, signs and utility systems serving the Common Areas and all parts thereof,
as well as providing the services for which there is a Common Area Operating Expense pursuant to Paragraph 4.2. Lessor shall not
be obligated to paint the exterior or interior surfaces of exterior walls nor shall Lessor be obligated to maintain, repair or
replace windows, doors or plate glass of the Premises. Lessee expressly waives the benefit of any statute now or hereafter in
effect to the extent it is inconsistent with the terms of this Lease.

  

6.3      Utility
Installations; Trade Fixtures; Alterations.

 

(a)      Definitions.
The term "Utility Installations" refers to all floor and window coverings, air and/or vacuum lines, power panels,
electrical distribution, security and fire protection systems, communication cabling, lighting fixtures, HVAC equipment, plumbing,
and fencing in or on the Premises. The term "Trade Fixtures" shall mean Lessee's machinery and equipment that
can be removed without doing material damage to the Premises. The term "Alterations" shall mean any modification
of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. "Lessee Owned
Alterations and/or Utility Installations" are defined as Alterations and/or Utility Installations made by Lessee that
are not yet owned by Lessor pursuant to Paragraph 6.4(a).

 

    	 	9	 

    

    

 

(b)      Consent.
Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor's prior written consent. Lessee
may, however, make non-structural Alterations or Utility Installations to the interior of the Premises (excluding the roof) without
such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating
or removing the roof or any existing walls, will not affect the electrical, plumbing, FIVAC, and/or life safely systems, and the
cumulative cost thereof during this Lease as extended does not exceed a sum equal to 3 month's Base Rent in the aggregate or a
sum equal to one month's Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations
and/or install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such
approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or Utility Installations that
Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed
plans. Consent shall be deemed conditioned upon Lessee's: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor
with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with
all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility
Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion
furnish Lessor with as-built plans and specifications.

 

(c)      Liens;
Bonds. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for
Lessee et or for use on the Premises, which claims are or may be secured by any mechanic's or materialmen's lien against the Premises
or any interest therein. Lessee shall give Lessor not less than 10 days notice prior to the commencement of any work in, on or
about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the validity
of any such lien, claim or demand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against
the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor
shall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount of such contested lien, claim or demand,
indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay Lessor's
attorneys' fees and costs.

 

6.4      Ownership;
Removal; Surrender; and Restoration.

 

(a)      Ownership.
Subject to Lessor's right to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations
made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing
to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed
per paragraph 6.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of
this Lease, become the property of Lessor and be surrendered by Lessee with the Premises.

 

(b)      Removal.
By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior to the end of the term
of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration
or termination of this Lease. Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations or
Utility Installations made without the required consent.

 

(c)      Surrender;
Restoration. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, with all of the improvements,
parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary
wear and tear excepted. "Ordinary wear and tear" shall not include any damage or deterioration that would have
been prevented by good maintenance practice. Notwithstanding the foregoing, if this Lease is for 12 months or less, then Lessee
shall surrender the Premises in the same condition as delivered to Lessee on the Start Date with NO allowance for ordinary wear
and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned
Alterations and/or Utility installations, furnishings, and equipment as well as the removal of any storage tank installed by or
for Lessee. Lessee shall also remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee,
(except Hazardous Substances which were deposited via underground migration from areas outside of the Premises) to the level specified
in Applicable Requirements. Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee. Any personal property
of Lessee not removed on or before the Expiration Date or any earlier termination date shall be deemed to have been abandoned
by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises
pursuant to this Paragraph 6.4(c) without the express written consent of Lessor shall constitute a holdover under the provisions
of Paragraph 26 below.

 

    	 	10	 

    

    

 

7.            Insurance;
Indemnity.

 

7.1
    Payment of Premium Increases.

 

(a)     As
used herein, the term "Insurance Cost Increase" is defined as any increase in the actual cost of the insurance
applicable to the Building and/or the Project and required to be carried by Lessor, pursuant to Paragraphs 7.2(b), 7.3(a) and
7.3(b), over and above the Base Premium, as hereinafter defined, calculated on an annual basis. Insurance Cost Increase shall
include, but not be limited to, requirements of the holder of a mortgage or deed of trust covering the Premises, Building and/or
Project, increased valuation of the Premises, Building and/or Project, and/or a general premium rate increase. The term Insurance
Cost Increase shall not, however, include any premium increases resulting from the nature of the occupancy of any other tenant
of the Building. The "Base Premium" shall be the annual premium applicable to the 12 month period Immediately
preceding the Start Date. If, however, the Project was not insured for the entirety of such 12 month period, then the Base Premium
shall be the lowest annual premium reasonably obtainable for the Required Insurance as of the Start Date, assuming the most nominal
use possible of the Building. In no event, however, shall Lessee be responsible for any portion of the premium cost attributable
to liability Insurance coverage in excess of $2,000,000 procured under Paragraph 7.2(b).

 

(b)     Lessee
shall pay any Insurance Cost Increase to Lessor pursuant to Paragraph 4.2. Premiums for policy periods commencing prior to, or
extending beyond, the term of this Lease shall be prorated to coincide with the corresponding Start Date or Expiration Date.

 

7.2      Liability
Insurance.

 

(a)      Carried
by Lessee. Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting Lessee and
Lessor as an additional Insured against claims for bodily injury, personal injury and property damage based upon or arising out
of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on
an occurrence basis providing single limit coverage in an amount not less than $1,000,000 per occurrence with an annual aggregate
of not less than $2,000,000. Lessee shall add Lessor as an additional insured by means of an endorsement at least as broad as
the Insurance Service Organization's "Additional insured-Managers or Lessors of Premises" Endorsement. The policy
shall not contain any Intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability
assumed under this Lease as an "Insured contract" for the performance of Lessee's indemnity obligations under
this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation
hereunder. Lessee shall provide an endorsement on Its liability policy(les) which provides that Its Insurance shall be primary
to and not contributory with any similar insurance carried by Lessor, whose Insurance shall be considered excess insurance only.

 

(b)      Carried
by Lessor. Lessor shall maintain liability Insurance as described in Paragraph 7.2(a), in addition to, and not in lieu of,
the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein.

 

7.3     Property
insurance • Building, Improvements and Rental Value.

 

(a)
     Building and Improvements. Lessor shall obtain and keep in force a policy or policies of
insurance in the name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to
the Premises. The amount of such insurance shall be equal to the full insurable replacement cost of the Building and Common Areas,
as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable
and available insurable value thereof. Lessee Owned Alterations and Utility installations, Trade Fixtures, and Lessee's
personal property shall be insured by Lessee not by Lessor. If the coverage is available and commercially appropriate, such policy
or policies shall insure against all risks of direct physical loss or damage (except the perils of flood and/or earthquake unless
required by a Lender), Including coverage for debris removal and the enforcement of any Applicable Requirements requiring the
upgrading, demolition, reconstruction or replacement of any portion of the Building and Common Areas as the result of a covered
loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation,
and inflation guard protection causing an Increase in the annual property Insurance coverage amount by a factor of not less than
the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are
located. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $5,000 per occurrence.

 

    	 	11	 

    

    

 

(b)    
Adjacent Premises. Lessee shall pay for any increase in the premiums for the property insurance of the Building and for
the Common Areas or other buildings in the Project if said increase is caused by Lessee's acts, omissions, use or occupancy of
the Premises.

 

(c)      Lessee's
improvements. Since Lessor is the Insuring Party, Lessor shall not be required to insure Lessee Owned Alterations and Utility
Installations unless the item in question has become the property of Lessor under the terms of this Lease.

 

7.4     Lessee's
Property; Business Interruption Insurance; Worker's Compensation Insurance.

 

(a)     
Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee's personal property, Trade Fixtures,
and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible
of not to exceed $1,000 per occurrence. The proceeds from any such Insurance shall be used by Lessee for the replacement of personal
property, Trade Fixtures and Lessee Owned Alterations and Utility Installations.

 

(b)    
Worker's Compensation Insurance. Lessee shall obtain and maintain Worker's Compensation Insurance in such amount as may
be required by Applicable Requirements. Such policy shall include a Waiver of Subrogation' endorsement. Lessee shall provide Lessor
with a copy of such endorsement along with the certificate of Insurance or copy of the policy required by paragraph 7.5.

 

(c)     
No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance
specified herein are adequate to cover Lessee's property, business operations or obligations under this Lease.

 

7.6    Insurance
Policies. Insurance required herein shall be by companies maintaining during the policy term a "General Policyholders
Rating" of at least A-, VII, as set forth in the moat current issue of "Best's insurance Guide", or
such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which Invalidates the required
insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such Insurance or
certificates with copies of the required endorsements evidencing the existence and amounts of the required insurance. No such
policy shall be cancelable or subject to modification except after 30 days prior written notice to Lessor. Lessee shall, at least
10 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or "insurance binders"
evidencing renewal thereof, or Lessor may order such Insurance and charge the cost thereof to Lessee, which amount shall be payable
by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of
this Lease, whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it,
the other Party may, but shall not be required to, procure and maintain the same.

 

7.6  
  Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each hereby release
and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property
arising out of or Incident to the perils required to be insured against herein. The effect of such releases and waivers is not
limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their
respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee,
as the case may be, so long as the Insurance is not invalidated thereby.

 

7.7
    Indemnity. Except for gross negligence or willful misconduct, each party shall indemnify, protect,
defend and hold harmless the other party and its agents, Lessor's master or ground lessor, partners and Lenders, from and against
any and all claims, loss of rents and/or damages, liens, Judgments, penalties, attorneys' and consultants' fees, expenses and/or
liabilities arising out of, involving, or in connection with, the tens and provisions of this Lease. If any action or proceeding
is brought against a party by reason of any of the foregoing matters, the other party shall upon notice defend the same at the
other party's expense by counsel reasonably satisfactory to each party and shall cooperate with the other party in such defense.
Neither party need not have first paid any such claim in order to be defended or indemnified.

 

    	 	12	 

    

    

 

7.8     
Exemption of Lessor and its Agents from Liability. Unless caused by the negligence or willful misconduct of Lessor or Its
agents, neither Lessor nor its agents shall be liable for. (I) injury or damage to the person or goods, wares, merchandise or
other property of Lessee, Lessee's employees, contractors, invitees, customers, or any other person in or about the Premises,
whether such damage or Injury is caused by or results from fire, steam, electricity, gas, water or rain, indoor air quality, the
presence of mold or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing,
HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the
Premises or upon other portions of the Building, or from other sources or places, (II) any damages arising from any act or neglect
of any other tenant of Lessor or from the failure of Lessor or Its agents to enforce the provisions of any other lease in the
Project, or (ill) injury to Lessee's business or for any loss of Income or profit therefrom. Instead, it is intended that Lessee's
recourse in the event of such damages or injury be to file a claim on the insurance policy(ies) that Lessee is required to maintain
pursuant to the provisions of paragraph 7.

 

8.       
 Damage or Destruction.

 

8.1
     Definitions.

 

 (a)      "Premises Partial Damage" shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 3 months or less from the date of the damage or destruction, and the cost thereof does not exceed a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total.

 

 (b)      "Premises Total Destruction" shall mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 3 months or less from the date of the damage or destruction and/or the cost thereof exceeds a sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total.

 

 (c)      "Insured Loss" shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 7.3(a), Irrespective of any deductible amounts or coverage limits involved.

 

 (d)      "Replacement Cost" shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction for depredation.

 

(e)      "Hazardous
Substance Condition" shall mean the occurrence or discovery of a condition involving the presence of, or a contamination
by, a Hazardous Substance, in, on, or under the Premises which requires restoration.

 

8.2      Partial
Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at
Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations)
as soon as reasonably possible and this Lease shall continue in full force and effect;

 

8.3
    Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent
or willful act of Lessee (in which event Lessee shall make the repairs at Lessee's expense), Lessor may either. (I) repair such
damage as soon as reasonably possible at Lessor's expense (subject to reimbursement pursuant to Paragraph 4.2), in which event
this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30
days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 60 days following
the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after
receipt of the termination notice to give written notice to Lessor of Lessee's commitment to pay for the repair of such damage
without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days
after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make
such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required commitment,
this Lease shall terminate as of the date specified in the termination notice.

 

    	 	13	 

    

    

 

8.4
    Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall
terminate 80 days following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct
of Lessee, Lessor shall have the light to recover Lessor's damages from Lessee, except as provided in Paragraph 7.6.

 

8.6    
Damage Near End of Term. If at any time during the last 6 months of this Lease there is a partial Premises damage for which
the cost to repair exceeds six (6) month's Base Rent, Lessor may terminate this Lease effective 60 days following the date of
occurrence of such damage by giving a written termination notice to Lessee within 30 days after the date of occurrence of such
damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the
Premises, then Lessee may preserve this Lease by, exercising such option (I) on the date which is 10 days after Lessee's receipt
of Lessor's written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires.
If Lessee duly exercises such option during such period, Lessor shall, at Lessor's commercially reasonable expense, repair such
damage as soon as reasonably possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such
option, then this Lease shall terminate on the date specified in the termination notice and Lessee's option shall be extinguished.

 

8.6
     Abatement of Rent; Lessee's Remedies.

 

 (a)      Abatement. in the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Lessee's use of the Premises is impaired. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein.

 

(b)       Remedies.
If Lessor is obligated to repair or restore the Premises and does not commence, in a substantial and meaningful way, such
repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement of
such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee's election
to terminate this Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such notice and such
repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate as of the date specified in said
notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect. "Commence"
shall mean either the unconditional authorization of the preparation of the required plans, or the beginning of the actual work
on the Premises, whichever first occurs. Lessee shall have the right to terminate this Lease upon a casualty to the Premises rendering
fifty percent (50%) or more of the Premises untenable or upon a casualty to the Building or the Common Areas preventing the Lessee
from accessing the Premises, if the Lessor has not commenced repairs within ninety (90) days of such occurrence.

 

8.7     
Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 5.2(g) or Paragraph 9, an equitable
adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in
addition, return to Lessee so much of Lessee's Security Deposit as has not been, or is not then required to be, used by Lessor.

 

9.
           Real Property Taxes.

 

9.1
     Definitions.

 

(a)
     "Real Property Taxes." As used herein, the term "Real Property Taxes"
shall include any form of assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than
inheritance, personal income or estate taxes); Improvement bond; and/or license fee imposed upon or levied against any legal or
equitable Interest of Lessor in the Project, Lessor's right to other income therefrom, and/or Lessor's business of teasing, by
any authority having the direct or indirect power to tax and where the funds are generated with reference to the Project address
and where the proceeds so generated are to be applied by the city, county or other local taxing authority of a jurisdiction within
which the Project is located. The term "Real Property Taxes" shall also Include any tax, fee, levy, assessment
or charge, or any increase therein: (I) a change in the improvements thereon, and/or (Ii) levied or assessed on machinery or equipment
provided by Lessor to Lessee pursuant to this Lease.

 

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(b)
     "Base Real Property Taxes." As used herein, the term "Base Real Property
Taxes" shall be the amount of Real Property Taxes, which are assessed against the Premises, Building, Project or Common
Areas in the calendar year during which the Lease is executed. In calculating Real Property Taxes for any calendar year, the Real
Property Taxes for any real estate tax year shall be included in the calculation of Real Property Taxes for such calendar year
based upon the number of days which such calendar year and tax year have in common.

 

9.2      Payment of Taxes. Except as otherwise provided in Paragraph 9.3, Lessor shall pay the Real Property Taxes applicable to
the Project, and said payments shall be included in the calculation of Common Area Operating Expenses in accordance with the provisions
of Paragraph 4.2.

 

9.3     Additional
Improvements. Common Area Operating Expenses shall not include Real Property Taxes specified in the tax assessors records
and work sheets as being caused by additional improvements placed upon the Project by other tenants or by Lessor for the
exclusive enjoyment of such other Tenants. Notwithstanding Paragraph 9.2 hereof, Lessee shall, however, pay to Lessor at the
time Common Area Operating Expenses are payable under Paragraph 4.2, the entirety of any increase in Real Property Taxes if
assessed solely by reason of Alterations, Trade Fixtures or Utility Installations placed upon the Premises by Lessee or at
Lessee's request or by reason of any alterations or improvements to the Premises made by Lessor subsequent to the execution
of this Lease by the Parties.

 

9.4     Joint
Assessment. If the Building is not separately assessed, Real Property Taxes allocated to the Building shall be an equitable
proportion of the Real Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion
to be determined by Lessor from the respective valuations assigned in the assessor's work sheets or such other information as
may be reasonably available. Lessor's reasonable determination thereof, in good faith, shall be conclusive.

 

9.5     Personal
Property Taxes. Lessee shall pay prior to delinquency all taxes assessed against and levied upon Lessee Owned Alterations
and Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee contained in the Premises.
When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment
and all other personal property to be assessed and billed separately from the real property of Lessor. If any of Lessee's said
property shall be assessed with Lessor's real property, Lessee shall pay Lessor the taxes attributable to Lessee's property within
10 days after receipt of a written statement setting forth the taxes applicable to Lessee's property.

 

10.     Utilities
and Services. Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services
supplied to the Premises, together with any taxes thereon. Notwithstanding the provisions of Paragraph 4.2, if at any time in
Lessors sole judgment, Lessor determines that Lessee is using a disproportionate amount of water, electricity or other commonly
metered utilities, or that Lessee is generating such a large volume of trash as to require an increase in the size of the trash
receptacle and/or an Increase in the number of times per month that it is emptied, then Lessor may increase Lessee's Base Rent
by an amount equal to such increased costs. There shall be no abatement of Rent and Lessor shall not be liable in any respect
whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot, strike, labor dispute,
breakdown, accident. repair or other cause beyond Lessor's reasonable control or in cooperation with governmental request or directions.

 

11.          Assignment
and Subletting.

 

11.1   Lessor's
Consent Required.

 

(a)      Lessee
shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, "assign or assignment")
or sublet all or any part of Lessee's interest in this Lease or in the Premises without Lessor's prior written consent, not to
be unreasonably withheld.

 

(b)       Unless
Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control of Lessee shall
constitute an assignment requiring consent. The transfer, on a cumulative basis, of 26% or more of the voting control of Lessee
shall constitute a change in control for this purpose.

 

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(c)
      The involvement of Lessee or its assets in any transaction, or series of transactions (by
way of merger, sale, acquisition, financing, transfer, leveraged buy-out or otherwise), whether or not a formal assignment or
hypothecation of this Lease or Lessee's assets occurs, which results or will result in a reduction of the Net Worth of Lessee
by an amount greater than 26% of such Net Worth as it was represented at the time of the execution of this Lease or at the time
of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions
constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease to which Lessor may
withhold Its consent. "Net Worth of Lessee" shall mean the net worth of Lessee (excluding any guarantors) established
under generally accepted accounting principles.

 

(d)     An
assignment or subletting without consent shall, at Lessors option, be a Default curable after notice per Paragraph 12.1(c), or
a noncurable Breach without the necessity of any notice and grace period. If Lessor elects to treat such unapproved assignment
or subletting as a noncurable Breach, Lessor may either: (Ii terminate this Lease, or (ii) upon 30 days written notice, Increase
the monthly Base Rent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i)
the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to 110% of the
price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term
shall be increased to 110% of the scheduled adjusted rent.

 

(e)      Lessee's
remedy for any breach of Paragraph 11.1 by Lessor shall be limited to compensatory damages and/or injunctive relief.

 

(f)        Lessor
may reasonably withhold consent to a proposed assignment or subletting if Lessee is in Default at the lime consent is requested.

 

(g)      Notwithstanding
the foregoing, allowing a de minimis portion of the Premises, le. 20 square feet or less, to be used by a third party vendor in
connection with the installation of a vending machine or payphone shall not constitute a subletting.

 

(h)      Subject
to the terms and conditions of the paragraph 11.1, Lessee shall be permitted to transfer the Lease to an affiliated entity, so
long as the affiliates net worth is equal to or greater than the Lessee.

 

11.2   Terms
and Conditions Applicable to Assignment and Subletting.

 

(a)      Regardless
of Lessor's consent, no assignment or subletting shall: (i) be effective without the express written assumption by such assignee
or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the
primary liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee.

 

(b)      Lessor
may accept Rent or performance of Lessee's obligations from any person other than Lessee pending approval or disapproval of an
assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall
constitute a waiver or estoppel of Lessors right to exercise its remedies for Lessee's Default or Breach.

 

(c)      Lessors
consent to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting.

 

(d)      In
the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible
for the performance of Lessee's obligations under this Lease, Including any assignee or sublessee, without first exhausting Lessors
remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor.

 

(e)      Each
request for consent to an assignment or subletting shall be in writing, accompanied by Information relevant to Lessors determination
as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not
limited to the Intended use and/or required modification of the Premises, if any, together with a fee of $500 as consideration
for Lessors considering and processing said request. Lessee agrees to provide Lessor with such other or additional information
and/or documentation as may be reasonably requested.

 

 (f)       Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment, entering into such sublease, or entering into possession of the Premises or any portion thereof, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing.

 

    	 	16	 

    

    

 

(g)
     Lessors consent to any assignment or subletting shall not transfer to the assignee or sublessee any Option granted to the original
Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing.

 

11.3   Additional
Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting by Lessee
of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated
therein:

 

(a)       Lessee
hereby assigns and transfers all of Lessee's Interest in all Rent payable on any sublease, and Lessor may collect such Rent
and apply same toward Lessee's obligations under this Lease; provided, however, that until a Breach shall occur in the
performance of Lessee's obligations, Lessee may collect said Rent. In the event that the amount collected by Lessor exceeds
Lessee's then outstanding obligations any such excess shall be refunded to Lessee. Lessor shall not, by reason of the
foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for
any failure of Lessee to perform and comply with any of Lessee's obligations to such sublessee. Lessee hereby irrevocably
authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the
performance of Lessee's obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease.
Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation to right to
inquiries as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary.

 

(b)      In
the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor shall
undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration
of such sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee
to such sublessor or for any prior Defaults or Breaches of such sublessor.

 

(c)      Any
matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor.

 

(d)      No
sublessee shall further assign or sublet all or any part of the Premises without Lessor's prior written consent.

 

(e)      Lessor
shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default
of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement and offset
from and against Lessee for any such Defaults cured by the Sublessee.

 

12.         Default;
Breach; Remedies.

 

12.1   Default;
Breach. A "Default” is defined as a failure by the Lessee to comply with or perform any of the terms, convenants,
conditions or Rules and Regulations under this Lease. A "Breach" is defined as the occurrence of one or more
of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace period:

 

(a)      The
abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security, or
where the coverage of the property Insurance described in Paragraph 7.3 is Jeopardized as a result thereof, or without providing
reasonable thereof, or without providing reasonable assurances to minimize potential vandalism.

 

(b)      The
failure of Lessee to make a payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor
or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under
the Lease which endangers or threatens life or property, where such failure continues for a period of 3 business days following
written notice to Lessee. THE ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER
OF ANY OF LESSOR'S RIGHTS, INCLUDING LESSOR'S RIGHT TO RECOVER POSSESSION OF THE PREMISES.

 

(c)      The
failure of Lessee to allow Lessor and/or its agents access to the Premises or the commission of waste, act or acts constituting
public or private nuisance, and/or an Illegal activity on the Premises by Lessee, where such actions continue for a period of
3 business days following written notice to Lessee. In the event that Lessee commits waste, a nuisance or an illegal activity
a second time, then the Lessor may elect to treat such conduct as a non-curable Breach rather than a Default.

 

    	 	17	 

    

    

 

(d)      The
failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the
subordination, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate or financial
statements, (v) a requested subordination, (vi) evidence concerning any 7 guaranty and/or Guarantor, (vii) any document
requested under Paragraph 40, (viii) material data safety sheets (MSDS), or (ix) any other documentation or information which
Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10
days following written notice to Lessee.

 

(e)      A
Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph
2,8 hereof, other than those described in subparagraphs 11.1(a), (b), (c), or (d), above, where such Default continues for a period
of 30 days after written notice; provided, however, that if the nature of Lessee's Default is such that more than 30 days are
reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day
period and thereafter diligently prosecutes such cure to completion.

 

(f)      The
occurrence of any of the following events: (i) the making of any general arrangement or assignment for the benefit of creditors;
(ii) becoming a "debtor" as defined in 11 U.S. C. § 101 or any successor statute thereto (unless, in the
case of a petition filed against Lessee, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver
to take possession of substantially all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where
possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or other Judicial seizure of substantially
all of Lessee's assets located at the Premises or of Lessee's interest in this Lease, where such seizure is not discharged within
30 days; provided, however, in the event that any provision of this subparagraph is contrary to any applicable law, such provision
shall be of no force or effect, and not affect the validity of the remaining provisions.

 

(g)     The
discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false.

 

(h)      If
the performance of Lessee's obligations under this Lease is guaranteed: (i) the death of a Guarantor, (ii) the termination of
a Guarantor's liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantor's
becoming insolvent or the subject of a bankruptcy filing, (iv) a Guarantor's refusal to honor the guaranty, or (v) a Guarantor's
breach of its guaranty obligation on an anticipatory basis, and Lessee's failure, within 60 days following written notice of any
such event, to provide written alternative assurance or security, which, when coupled with the then existing resources of Lessee,
equals or exceeds the combined financial resources of Lessee and the Guarantors that exist at the time of execution of this Lease.

 

12.2    Remedies.
If Lessee fails to perform any of its affirmative duties or obligations, within 10 days after written notice (or in case of
an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee's behalf, including but not
limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. Lessee
shall pay to Lessor an amount equal to 116% of the costs and expenses Incurred by Lessor in such performance upon receipt of an
invoice therefor. In the event of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor
in the exercise of any right or remedy which Lessor may have by reason of such Breach:

 

(a)
      Terminate Lessee's right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee
shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid
Rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent
which would have been earned after termination until the time of award exceeds the amount of such rental loss that the Lessee
proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the
balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably
avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee's failure
to perform Its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including
bill not limited to the cost of recovering possession of the Premises, expenses of reletting, Including necessary renovation and
alteration of the Premises, reasonable attorneys' fees, and that portion of any leasing commission paid by Lessor in connection
with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision
(iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of the Federal Reserve
Bank of the District within which the Premises are located at the time of award plus one percent. Efforts by Lessor to mitigate
damages caused by Lessee's Breach of this Lease shall not waive Lessor's right to recover any damages to which Lessor is otherwise
entitled. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the
right to recover in such proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to
recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 12.1 was not previously
given, a notice to pay rent or quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute
the notice required by Paragraph 12.1. In such case, the applicable grace period required by Paragraph 12.1 and the unlawful detainer
statute shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two such grace periods
shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease
and/or by said statute.

 

    	 	18	 

    

    

 

 (b)       Continue the Lease and Lessee's right to possession and recover the Rent as it becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessor's Interests, shall not constitute a termination of the Lessee's right to possession.

 

 (c)      Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/or the termination of Lessee's right to possession shall not relieve Lessee from liability under any Indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessee's occupancy of the Premises.

 

12.3
  Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur
costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs Include,
but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly,
If any Rent shall not be received by Lessor within 5 days after such amount shall be due, then, without any requirement for notice
to Lessee, Lessee shall immediately pay to Lessor a late charge equal to 10% of each such overdue amount or $100, whichever is
greater plus $25.00 per day for each day late after five (6) days. The parties hereby agree that such late charge represents a
fair and reasonable estimate of the costs Lessor will incur by reason of such late payment. Acceptance of such late charge by
Lessor shall in no event constitute a waiver of Lessee's Default or Breach with respect to such overdue amount, nor prevent the
exercise of any of the other rights and remedies granted hereunder.

 

12.4   Interest.
Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due shall bear Interest from
the 31st day after it was due. The interest ("Interest") charged shall be computed at the rate of 10% per annum
but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for
in Paragraph 12.4.

 

12.6   Breach
by Lessor.

 

 (a)      Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished to Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor's obligation is such that more than 30 days are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion.

 

(b)       Performance
by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender cures said breach within 30 days after receipt
of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure
said breach at Lessee's expense and offset from Rent the actual and reasonable cost to perform such cure, provided however, that
such offset shall not exceed an amount equal to the greater of one month's Base Rent, reserving Lessee's right to reimbursement
from Lessor for any such expense in excess of such offset. Lessee shall document the cost of said cure and supply said documentation
to Lessor.

 

    	 	19	 

    

    

 

13.           Condemnation.
If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise
of said power (collectively "Condemnation"), this Lease shall terminate as to the part taken as of the date the
condemning authority takes title or possession, whichever first occurs. If more than 10% of the floor area of the Unit, or more
than 25% of the parking spaces is taken by Condemnation, Lessee may, at Lessee's option, to be exercised in writing within 10
days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within 10 days after
the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such
possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and
effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction
in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether
such award shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance
damages; provided, however, that Lessee shall be entitled to any compensation paid by the condemnor for Lessee's relocation expenses,
loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions
of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only,
shall be considered the property of the Lessee end Lessee shall be entitled to any and all compensation which is payable therefor.
In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused
by such Condemnation.

 

14.          Estoppel
Certificates.

 

(a)      Each
Party (as "Responding Party") shall within 10 days after written notice from the other Party (the "Requesting
Party") execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most
current "Estoppel Certificate" form published by the AIR Commercial Real Estate Association, plus such additional
information, confirmation and/or statements as may be reasonably requested by the Requesting Party.

 

(b)       If
the Responding Party shall fall to execute or deliver the Estoppel Certificate within such 10 day period, the Requesting Party
may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may
be represented by the Requesting Party, (ii) there are no uncured defaults in the Requesting Party's performance, and (iii) if
Lessor is the Requesting Party, not more than one month's rent has been paid in advance. Prospective purchasers and encumbrancers
may rely upon the Requesting Party's Estoppel Certificate, and the Responding Party shall be estopped from denying the truth of
the facts contained in said Certificate.

 

16.          Definition
of Lessor. The term "Lessor" as used herein shall mean the owner or owners at the time in question of the
fee title to the Premises, or, if this is a sublease, of the Lessee's interest in the prior lease. In the event of a transfer
of Lessor's title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by
credit) any unused Security Deposit held by Lessor. Upon such transfer or assignment and delivery of the Security Deposit, as
aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease
thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed
by the Lessor shall be binding only upon the Lessor as hereinabove defined.

 

16.          Severability.
The invalidity of any provision of this Lease, as determined by a court of competent Jurisdiction, shall in no way affect
the validity of any other provision hereof.

 

17.          Days.
Unless otherwise specifically Indicated to the contrary, the word "days" as used in this Lease shall mean
and refer to calendar days.

 

18.          Limitation
on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor, or its partners,
members, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the
satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor's partners, members,
directors, officers or shareholders, or any of their personal assets for such satisfaction.

 

    	 	20	 

    

    

 

19.
        Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed
by the Parties under this Lease,

 

20.
        No Prior or Other Agreements. This Lease contains all agreements between the Parties with respect to any matter mentioned
herein, and no other prior or contemporaneous agreement or understanding shell be effective. Lessor and Lessee each represents
and warrants to the other that It has made, and is relying solely upon, Its own Investigation as to the nature, quality, character
and financial responsibility of the other Party to this Loose end as to the use, nature, quality and character of the Premises.
Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party.

 

21.          Notices.

 

21.1   Notice
Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in
person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mall, with
postage prepaid, or by facsimile transmission or by email, and shall be deemed sufficiently given if served in a manner specified
in this Paragraph 21. The addresses noted adjacent to a Party's signature on this Lease shall be that Party's address for delivery
or mailing of notices, Either Party may by written notice to the other specify a different address for notice, except that upon
Lessee's taking possession of the Premises, the Premises shall constitute Lessee's address for notice. A copy of all notices to
Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time hereafter
designate in writing.

 

21.2   Date
of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of
delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mall the notice
shall be deemed given 72 hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered
by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given 24 hours after delivery
of the same to the Postal Service or courier. Notices transmitted by facsimile transmission or by email shall be deemed delivered
upon telephone confirmation of receipt (if by fax, a confirmation report from fax machine is sufficient), provided a copy is also
delivered via delivery or mall. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the
next business day.

 

22.         Waivers.

 

(a)      No
waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any
other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant
or condition hereof. Lessor's consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor's
consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the
provision or provisions of this Lease requiring such consent

 

(b)     The
acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by
Lessor on account of monies or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection
therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in
writing by Lessor at or before the time of deposit of such payment.

 

(c)     THE
PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS RELATED THERETO AND HEREBY WAIVE THE PROVISIONS
OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE.

 

    	 	21	 

    

    

 

23.
         Disclosures Regarding The Nature of a Real Estate Agency Relationship.

 

 (a)      When entering into a discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction.

 

(i)       Lessor's
Agent. A Lessor’s agent under a listing agreement with the Lessor acts as the agent for the Lessor only. A Lessor’s agent
or subagent has the following affirmative obligations: To the Lessor: A fiduciary duty of utmost care, integrity,
honesty, and loyalty in dealings with the Lessor. To the Lessee and the Lessor: a. Diligent exercise of reasonable
skills and care in performance of the agent's duties. b. A duty of honest and fair dealing and good faith. c. A duty to disclose
all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the
diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information
obtained from the other Party which does not involve the affirmative duties set forth above.

 

(ii)       Lessee’s
Agent. An agent can agree to act as agent for the Lessee’s only. In these situations, the agent is not the Lessors agent,
even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Lessor. An agent
acting only for a Lessee has the following affirmative obligations. To the Lessee: A fiduciary duty of utmost care,
Integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the Lessor: a. Diligent exercise of
reasonable skills and care in performance of the agent's duties. b. A duty of honest and fair dealing and good faith. c. A duty
to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to,
or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential
information obtained from the other Party which does not involve the affirmative duties set forth above.

 

(iii)      Agent
Representing Both Lessor end Lessee. A real estate agent, either acting directly or through one or more associate licensee,
can legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the
Lessor end the Lessee. In a dual agency situation, the agent has the following affirmative obligations to both the Lessor and
the Lessee: a. A fiduciary duty of utmost care, Integrity, honesty and loyalty in the dealings with either Lessor or the Lessee.
b. Other duties to the Lessor and the Lessee as stated above in subparagraphs (i) or (ii). In representing both Lessor and Lessee,
the agent may not without the express permission of the respective Party, disclose to the other Party that the Lessor will accept
rent in an amount less than that indicated in the listing or that the Lessee is willing to pay a higher rent than that offered.
The above duties of the agent in a real estate transaction do not relieve a Lessor or Lessee from the responsibility to protect
their own interests. Lessor and Lessee should carefully read all agreements to assure that they adequately express their understanding
of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired,
consult a competent professional.

 

24.
        No Right To Holdover. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration
or termination of this Lease. In the event that Lessee holds over, then the Base Rent shall be Increased to 150% of the Base Rent
applicable Immediately preceding the expiration or termination. Holdover Base Rent shall be calculated on monthly basis. Nothing
contained heroin shall be construed as consent by Lessor to any holding over by Lessee.

 

26.          Cumulative
Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other
remedies at law or in equity.

 

28.          Covenants
and Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by Lessee are both covenants
and conditions. In construing this Lease, all headings and titles are for the convenience of the Parties only and shall not be
considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This
Lease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if
both Parties had prepared it.

 

27.         Binding
Effect; Choice of Law. This Lease shall be binding upon the parties, their personal representatives, successors and assigns
and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning
this Lease shall be Initiated in the county in which the Premises are located.

 

    	 	22	 

    

    

 

28.          Subordination;
Attornment; Non-Disturbance. 

 

28.1   Subordination.
This Lease and any Option granted hereby shall be subject end subordinate to any ground lease, mortgage, dead of trust, or
other hypothecation or security device (collectively, "Security Device"), now or hereafter placed upon the Premises,
to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof. Lessee agrees
that the holders of any such Security Devices (in this Lease together referred to as "Lender") shall have no
liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to have this Lease
and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon
this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation
or recordation thereof.

 

28.2   Attornment.
In the event that Lessor transfers title to the Premises, or the Premises are acquired by another upon the foreclosure or
termination of a Security Device to which this Lease is subordinated (i) Lessee shall, subject to the non-disturbance provisions
of Paragraph 28, attorn to such new owner, and upon request, enter Into a new lease, containing all of the terms and provisions
of !his Lease, with such new owner for the remainder of the term hereof, or, at the election of the new owner, this Lease will
automatically become a new lease between Lessee and such new owner, and (ii) Lessor shall thereafter be relieved of any further
obligations hereunder and such new owner shall assume all of Lessor's obligations, except that such new owner shall not: (a) be
liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (b)
be subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be bound by prepayment of more than
one months rent, or (d) be liable for the return of any security deposit paid to any prior lessor which was not paid or
credited to such new owner.

 

28.3   Non-Disturbance.
With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee's subordination of this
Lease shall be subject to receiving a commercially reasonable non’-disturbance agreement (a "Non-Disturbance Agreement")
from the Lender which Non-Disturbance Agreement provides that Lessee's possession of the Premises, and this Lease, including any
options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner
of the Premises. Further, within 60 days after the execution of this Lease, Lessor shall, if requested by Lessee, use its commercially
reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing Security Device which is secured
by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement within said 60 days, then Lessee
may, at Lessee's option, directly contact Lender and attempt to negotiate for the execution and delivery or a Non-Disturbance
Agreement.

 

28.4   Self-Executing.
The agreements contained in this Paragraph 28 shall be effective without the execution of any further documents; provided,
however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises,
Lessee and Lessor shall execute such further writings as may be reasonably required to separately document any subordination,
attornment and/or Non-Disturbance Agreement provided for herein.

 

29.          Attorneys'
Fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity,
or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon,
shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether
or not such action or proceeding is pursued to decision or judgment. The term, "Prevailing Party" shall include,
without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise,
settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys' fees award shall
not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys' fees reasonably
Incurred. In addition, Lessor shall be entitled to attorneys' fees, costs and expenses incurred in the preparation and service
of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection
with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation.)

 

30.
        Lessor's Access; Showing Premises; Repairs. Showing Premises; Repairs. Lessor and Lessor's agents shall have the right
to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable prior notice
for the purpose of showing the same to prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements
or additions to the Premises as Lessor may deem necessary or desirable and the erecting, using and maintaining of utilities, services,
pipes and conduits through the Premises and/or other premises as long as there is no material adverse effect on Lessee's use of
the Premises. All such activities shall be without abatement of rent or liability to Lessee.

 

    	 	23	 

    

    

 

31.           Auctions.
Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor's prior written consent.
Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit an auction.

 

32.          Signs.
Lessor may place on the Premises ordinary "For Sale" signs at any time and ordinary "For Lease"
signs during the last 6 months of the term hereof. Except for ordinary "For Sublease" signs which may be placed
only on the Premises, Lessee shall not place any sign upon the Project without Lessor’s prior written consent. All signs
must comply with all Applicable Requirements.

 

33.          Termination;
Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee,
the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate
any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies.
Lessor’s failure within 10 days following any such event to elect to the contrary by written notice to the holder of any such lesser
interest, shall constitute Lessor’s election to have such event constitute the termination of such interest.

 

34.         Consents. Except
as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other Party,
such consent shall not be unreasonably withheld or delayed. Lessor’s actual reasonable costs and expenses (including
but not limited to architects', attorneys', engineers' and other consultants' fees) incurred in the consideration of, or
response to, a request by Lessee for any Lessor consent, including but not limited to consents to an assignment, a subletting
or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting
documentation therefor. Lessor’s consent to any act, assignment or subletting shall not constitute an acknowledgment that no
Default or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or
Breach, except as may be otherwise specifically stated in writing by Lessor at the lime of such consent. The failure to
specify herein any particular condition to Lessors consent shall not preclude the imposition by Lessor at the time of consent
of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being
given. In the event that either Party disagrees with any determination made by the other hereunder and reasonably requests
the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail
within 10 business days following such request.

 

35.          Quiet
Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on
Lessee's part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises
during the term hereof.

 

36.          Options.
If Lessee is granted any option, as defined below, then the following provisions shall apply.

 

38.1   Definition.
"Option" shall mean: (a) the right to extend or reduce the term of or renew this Lease or to extend or reduce
the term of or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease
either the Premises or other property of Lessor; (c) the right to purchase, the right of first offer to purchase or the right
of first refusal to purchase the Premises or other property of Lessor.

 

38.2   Options
Personal To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee or a permitted
affiliate, and cannot be assigned or exercised by anyone other than said original Lessee or a permitted affiliate and only
while the original Lessee is in full possession of the Premises and, if requested by Lessor, with Lessee certifying that
Lessee has no intention of thereafter assigning or subletting.

 

38.3   Multiple
Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised
unless the prior Options have been validly exercised.

 

    	 	24	 

    

    

 

36.4   Effect
of Default on Options.

 

(a)     Lessee
shall have no right to exercise an Option: (i) during the period commencing with the giving of any notice of Default and
continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice
thereof is given Lessee), (iii) during the time Lessee  is in Breach of this Lease, or (iv) in the event that Lessee has been
given 3 or more notices of separate Default, whether or not the Defaults are cured, during the 12 month period immediately
preceding the exercise of the Option.

 

(b)     The
period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee's inability to exercise
an Option because of the provisions of Paragraph 37.4(a).

 

(c)     An
Option shall terminate and be of no further force or effect, notwithstanding Lessee's due and timely exercise of the Option, if,
after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee falls to pay
Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof), or (ii) if
Lessee commits a Breach of this Lease.

 

37.         Security
Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the cost of guard service
or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility
for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties.

 

38.          Reservations.
Lessor reserves the right: (i) to grant, without the consent or joinder of Lessee, such easements, rights and dedications
that Lessor deems necessary, (ii) to cause the recordation of parcel maps and restrictions, and (iii) to create and/or install
new utility raceways, so long as such easements, rights, dedications, maps, restrictions, and utility raceways do not unreasonably
Interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate
such rights.

 

39.          Performance
Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other
under the provisions hereof, the Party against whom the obligation to pay the money is assorted shall have the right to make payment
"under protest" and such payment shall not be regarded as a voluntary payment and there shall survive the right
on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation
on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof
as it was not legally required to pay. A Party who does not initiate suit for the recovery of sums paid "under protest"
within 6 months shall be deemed to have waived its right to protest such payment.

 

40.          Authority.;
Multiple Parties; Execution.

 

(a)       If
either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing
this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease
on its behalf. Each Party shall, within 30 days after request, deliver to the other Party satisfactory evidence of such authority.

 

(b)      If
this Lease is executed by more than one person or entity as "Lessee", each such person or entity shall be jointly
and severally liable hereunder. It is agreed that any one of the named Lessees shall be empowered to execute any amendment to
this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as if all of
the named Lessees had executed such document.

 

(c)      This
Lease may be executed by the Parties in counterparts, each of which shall be deemed an original and all of which together shall
constitute one and the same instrument.

 

41.         Conflict.
Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled
by the typewritten or handwritten provisions.

 

42.         Offer.
Preparation of this Lease by either party or their agent and submission of same to the other Party shall not be deemed an
offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto.

 

    	 	25	 

    

    

 

43.          Amendments.
This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. As long as
they do not materially change Lessee's obligations hereunder, Lessee agrees to make such reasonable non-monetary modifications
to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of
the Premises.

 

44.          Waiver
of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY
OR ARISING OUT OF THIS AGREEMENT.

 

45.          Accessibility;
Americans with Disabilities Act. Since compliance with the Americans with Disabilities Act (ADA) is dependent upon Lessee's
specific use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or
any similar legislation. In the event that Lessee's use of the Premises requires modifications or additions to the Premises in
order to be in ADA compliance, Lessee agrees to make any such necessary modifications and/or additions at Lessee's expense.

 

LESSOR
AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS
LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE
TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE
PREMISES

 

The
parties hereto have executed this Lease at the place and on the dates specified above their respective signatures.

 

	OWNER:	 	TENANT:
	Zoned
Properties Inc., an Arizona Corporation 	  
	Tech
Group North America Inc., an Arizona Corporation
	 	 	 
	By:	/s/
    Bryan McLaren	 	By:	/s/
    Michael Treadaway
	Name	Bryan
    McLaren	 	Name:	Michael
    Treadaway
	Title:	President	 	Title:	President
	Date:	7/1/2015	 	Date:	29
    JUN 2015

 

    	 	26	 

    

    

 

EXHIBIT
A

PREMISES

 

 

 

    	 	27	 

    

    

 

EXHIBIT
B

WORK LETTER

 

Landlord
to convey and Tenant to accept the Premises in an “as-is” condition.

 

 

 28Exhibit 10.7

  

  

 

 

 

LICENSED
CULTIVATION PROJECT

ZONED
PROPERTIES, INC. NNN LEASE AGREEMENT

 

 

 

 

CHINO VALLEY PROPERTIES, LLC

(Landlord)

 

 

 

&

 

 

 

CCC
HOLDINGS, LLC

(Tenant)

 

 

 

 

 

 

DATED:
August 6, 2015

    	 		 

     

    

TABLE
OF CONTENTS

 

	LICENSED MARIJUANA CULTIVATION FACILITY	5
	 	 
	LICENSED MARIJUANA PROJECT COMPLIANCE AGREEMENT	6
	 	 
	ARTICLE 1: RECITALS	7
	1.01 Defined Lease Agreement Terms	7
	 	 
	ARTICLE 2: PREMISES AND COMMON AREAS LEASED	8
	2.01 Premises	8
	 	 
	ARTICLE 3: COMPLIANCE WITH LAW; AS IS	8
	3.01 Compliance with Law; AS IS	8
	 	 
	ARTICLE 4: LEASE TERM	9
	4.01 Lease Commencement.	9
	 	 
	ARTICLE 5: RENTAL PAYMENTS	9
	5.01 Base Rent	9
	5.02 Additional Rent	10
	5.03 Late Payment	10
	5.04 Prepaid Rent	10
	5.05 Security Deposit	11
	 	 
	ARTICLE 6: ADDITIONAL RENT AND CHARGES	11
	6.01 Real Property Taxes	11
	6.02 Tenant's Personal Property Taxes	12
	6.03 Rental Taxes	12
	 	 
	ARTICLE 7: INSURANCE	13
	7.01 Tenant's Insurance	13
	7.02 Form of Insurance Certificates	14
	7.03 Tenant's Failure	14
	7.04 Waiver of Subrogation	14
	7.05 Tenant's Properties and Fixtures	15
	7.06 Indemnification	15
	7.07 Damage to Tenant's Property	16
	 	 
	ARTICLE 8: REPAIRS AND MAINTENANCE	17
	8.01 Landlord Repairs and Maintenance	17
	8.02 Utilities and Services	17
	8.03 Tenant Repairs and Maintenance	18
	8.04 Non-liability of Landlord	18
	8.05 Inspection of Premises	18

 

    	 	2	 

     

    

 

	ARTICLE 9:  FIXTURES, PERSONAL PROPERTY ALTERATIONS	19
	9.01 Fixtures and Personal Property	19
	9.02 Alterations	20
	9.03 Liens	21
	 	 
	ARTICLE 10: USE AND CONFLUENCE WITH APPLICABLE LAW	21
	10.01 Premises Use and Confluence with Applicable Law	21
	10.02 Hazardous Materials	22
	10.03 Signs	24
	 	 
	ARTICLE 11: DAMAGE AND DESTRUCTION	24
	11.01 Reconstruction	24
	11.02 Excessive Damage or Destruction	24
	11.03 Uninsured Casualty	25
	11.04 Waiver	25
	11.05 Mortgagee's Right	25
	11.06 Damage Near End of Term	25
	 	 
	ARTICLE 12: EMINENT DOMAIN	26
	12.01 Condemnation & Eminent Domain	26
	 	 
	ARTICLE 13:  DEFAULT	26
	13.01 Events of Default	26
	13.02 Remedies	27
	13.03 Landlord's Default	29
	 	 
	ARTICLE 14:  FILING OF PETITION	29
	14.01 Tenant's Bankruptcy	29
	 	 
	ARTICLE 15: ASSIGNMENT AND SUBLETTING	31
	15.01 Prohibition	31
	15.02 Excess Rental	31
	15.03 Scope	31
	15.04 Waiver	32
	15.05 Change in Control	32
	 	 
	ARTICLE 16:  ESTOPPEL CERTIFICATE, ATTORNMENT AND SUBORDINATION	32
	16.01 Estoppel Certificate	32
	16.02 Attornment	33
	16.03 Subordination	33
	16.04 Recording	33
	 	 
	ARTICLE 17: MISCELLANEOUS	34
	17.01 Notices	34
	17.02 Successors Bound	34
	17.03 Waiver	34
	17.04 Subdivision and Easements	34
	17.05 Landlord's Reserved Rights in Common Areas	35
	17.06 Accord and Satisfaction	35
	17.07 Limitation of Landlord's and Tenant's personal liabilities	35
	17.08 Survival	35
	17.09 Attorneys' Fees	36

  

    	 	3	 

     

    

 

	17.10 Captions and Article Numbers	36
	17.11 Severability	36
	17.12 Governing Law, Dispute Resolution and Venue	36
	17.13 Submission of Lease	37
	17.14 Holding Over	37
	17.15 Parking	38
	17.16 Quiet Enjoyment	38
	17.17 Broker; Agency Disclosure	38
	17.18 Landlord's Right to Perform	38
	17.19 Assignment by landlord	39
	17.20 Entire Agreement	39
	17.21 Guarantor	40
	17.22 Exhibits	40
	17.23 Time	40
	17.24 Prior Agreement or Amendment	40
	17.25 Excused Delays	40
	17.26 Authority to Bind Tenant	41
	17.27 Interpretation	41
	17.28 Patriot Act Compliance	41
	 	 
	EXHIBIT A: LEASE COMMENCEMENT	45
	 	 
	EXHIBIT B: RENTAL PAYMENT SCHEDULE	46
	 	 
	EXHIBIT C: PROPERTY SITE AND LEGAL DESCRIPTION	47
	 	 
	EXHIBIT D: TENANT OPTION TO EXTEND LEASE TERM AND FIRST RIGHT	48
	 	 
	EXHIBIT E: GUARANTY OF PAYMENT AND PERFORMANCE	49

 

    	 	4	 

     

    

LICENSED
MARIJUANA CULTIVATION FACILITY

 

TRIPLE
NET (NNN) LEASE AGREEMENT 

 

This LEASE ("Lease"
or “Lease Agreement”) dated, August 1, 2015, is made by and between Chino Valley Properties, LLC, an Arizona
limited liability company ("Landlord" or “Lessor”), and CCC Holdings, LLC ("Tenant"
or “Lessee”).

 

Net,
Net, Net Lease. Tenant understands and agrees that this Lease is what is commonly referred to as a “Net, Net, Net”
Lease, NNN, or triple net lease. Tenant recognizes and acknowledges, without limiting the generality of any other terms or provisions
of this lease, that it is the intent of the parties hereto that any and all rentals in this lease provided to be paid be Tenant
to Landlord, shall be net to the Landlord, and any and all expenses incurred in connection with the Common Areas, the Premises,
and the Center or in connection with the operations thereon, including any and all taxes, assessments, general or special, license
fees, insurance premiums, public utility bills, management and administrative fees and costs of repair, maintenance and operation
of the Common Areas, the Premises, and the Center and all buildings, structures, permanent textures and other improvements comprised
therein, together with the appurtenance thereto, shall be paid by Tenant. 

 

In the event that the Landlord is specifically
advised in writing by any federal, state or local government that Landlord is subject to seizure of its property, if it does not
terminate Tenant’s right to cultivate marijuana upon the Leased Premises, or if the Arizona Medical Marijuana Act (AMMA)
is declared to be unenforceable or is modified to prohibit the sale or cultivation of medical marijuana upon the Leased Premises,
or if any other zoning regulation, rule or regulation is modified to prohibit sale, cultivation or possession of marijuana upon
the Leased Premises, Landlord may terminate this Lease at its sole discretion.

 

    	 	5	 

     

    

 

LICENSED
MARIJUANA PROJECT COMPLIANCE AGREEMENT 

 

1.
Lessee acknowledges that neither the lessor nor lessor’s representatives have made any oral or written representations or
warranties whatsoever concerning the suitability or zoning of the property with respect to its potential use as a medical marijuana
facility, and that it is the sole responsibility of the Lessee to investigate and to satisfy itself concerning the suitability
of the property for such use.

 

2.
Lessee understands and agrees that Lessee, and not Lessor, shall be solely responsible at the Lessee’s own expense for full
compliance with all state and local laws, rules, regulations and ordinances pertaining to the maintenance and/or operation of
a medical marijuana cultivation facility.

 

3.
Lessee warrants and represents that it is eligible and qualified to operate a medical marijuana facility in the property under
all applicable state and local laws rules, regulations and ordinances, and that Lessee has obtained all legally required licenses,
permits, and approvals to do so before commencing operations on the property.

 

4.
Lessee shall indemnify, defend and hold harmless Lessor, its trustees, agents, employees, and lenders from and against all damages,
liabilities, judgments, claims, expenses, penalties, and attorney and consultant fees arising out of or connected in any way to
Lessee’s violation or alleged violation of any federal, state, or local law, rule, regulation or ordinance, whether or not
litigation or prosecution is actually commences against Lessor, its trustees, agents, employees or lenders. 

 

5. Lessee shall provide notice to Lessor
immediately in the event of the revocation, suspension, expiration, transfer, or surrender of Lessee’s lawful authority
to operate a medical marijuana facility. Such revocation, suspension, expiration, transfer or surrender, or Lessee’s failure
to provide immediate notice thereof to Lessor, shall constitute an incurable Breach of the Lease entitling Lessor at its sole
discretion to terminate the lease agreement.

 

	LANDLORD:	 	TENANT:
	 	 	 	 	 
	Chino Valley Properties, LLC

	 	CCC Holdings, LLC
	 	 	 	 	 
	By	/s/ Bryan McLaren	 	By	/s/ Alan Abrams

	Its	

Duly Authorized Agent

	 	Its	Its Duly Authorized Agent 

 

    	 	6	 

     

    

  

ARTICLE
1: RECITALS

 

1.01
Defined Lease Agreement Terms

 

WHEREAS,
The following terms shall have the meanings specified in this Section, unless otherwise specifically provided. Other terms may
be defined in other parts of the Lease. 

 

	(A) Landlord	Chino
    Valley Properties, LLC
	 	 
	(B) Landlord’s Address	Chino
                                         Valley Properties, LLC

        c/o
        Zoned Properties, Inc.

        14300
        N. Northsight Blvd #208

        Scottsdale,
        Arizona 85260

	 	 
	(C) Tenant	CCC Holdings, LLC
	 	 
	(D) Tenants Address	CCC Holdings, LLC

        c/o
        AC Management Group, LLC

        7950
        E. Acoma Dr. #204

        Scottsdale,
        Arizona 85260

	 	 
	(E) Tenant Use	Marijuana
    cultivation and processing in accordance with the laws of the State of Arizona, applicable licensure requirements, and the
    regulations and uses incidental thereto
	 	 
	(F) Building & Premises	Chino
    Valley Cultivation Site; approximately 10,000 square feet of completed Greenhouse and approximately 5,000 square feet of office
    & garage space as described in Exhibit C
	 	 
	(G) Property	Real
    Property described in Exhibit C
	 	 
	(H) Term	Two
    Hundred Forty (240) Months commencing as of the Commencement Date described in the attached Exhibit A
	 	 
	(I) Commencement Date	Exhibit
    A
	 	 
	(J) Base Rent	Exhibit
    B
	 	 
	(K) Prepaid Rent	None
	 	 
	(L) Security Deposit	$40,000
	 	 
	(M) Landlord Broker	None
	 	 
	(N) Tenant Broker	None

 

    	 	7	 

     

    

 

ARTICLE
2: PREMISES AND COMMON AREAS LEASED

 

2.01
Premises

 

		(a)	Lease
                                         of Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from landlord,
                                         subject to the provisions of this Lease, certain premises described in Exhibit
                                         C (the "Buildings" or the “Premises”) owned by Landlord.
                                         The Site Plan for the Project attached to this Lease as Exhibit C is attached
                                         for general reference purposes only and shall not constitute a representation or warranty
                                         by Landlord to be the final plan of the Project or Building, location of the Building,
                                         or to require Landlord to build any improvements, or to otherwise comply with the site
                                         plan or require Landlord to lease space to a particular tenant or type of tenant.

 

		(b)	Measurement
                                         of Premises. The terms "Rentable Area of the Premises," "rentable
                                         square feet," "actual square footage" and words of similar
                                         importance (whether or not spelled with initial capitals) as used in this Lease will
                                         be defined as the total floor area constituting the Premises as measured from the unfinished
                                         outside of the exterior Building walls to the unfinished outside of like exterior Building
                                         walls. "Rentable Area of the Premises" shall also include any mezzanine
                                         space as measured from the outside of the exterior Building walls to like outside exterior
                                         Building walls and from outside exterior Building walls to the termination of the mezzanine
                                         deck. Tenant acknowledges that, except as otherwise expressly set forth in this Lease
                                         Agreement, neither Landlord nor any agent, property manager or broker of Landlord has
                                         made any representation or warranty with respect to the Premises, the Building, the Common
                                         Areas or the Project or their suitability for the conduct of Tenants business.

  

ARTICLE
3: COMPLIANCE WITH LAW; AS IS 

 

3.01
Compliance with Law; AS IS

 

Tenant
accepts the Premises strictly on an “AS IS” basis, without any representations or warranties from Landlord. Tenant
agrees to be compliant with all applicable rules/laws/regulations in effect, or subsequently passed into effect, as of and after
the Commencement Date.

 

    	 	8	 

     

    

 

Tenant,
at its sole cost and expense, shall promptly observe and materially comply with all present and future laws, orders, regulations,
rules, ordinances and requirements of any governmental agency with respect to the use, care and control of the Premises. Without
limiting the generality of the foregoing, Tenant shall make any structural changes or additions to the Premises that are required,
in order to comply with the requirements of its business operations. Landlord makes no representations or warranties to Tenant,
and hereby disclaims any and all representations or warranties to Tenant, concerning the Premises, including without limitation,
that as of the Commencement Date the Premises are (a) in compliance with all federal, state and local laws, regulations and directives
for Tenant's intended use of the Premises, including without limitation the Environmental Laws, but excluding the Americans With
Disabilities Act; and (b) free from and of all hazardous materials, including without limitation asbestos, lead paint and polychlorinated
biphenyl; provided that Landlord represents and warrants to Tenant that Landlord has no actual knowledge, without having made
any investigation or inquiry, of any present violation by the Premises of any of the Environmental Laws. "Environmental Laws"
shall include, but not be limited to, the Resource, Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901, et seq.;
the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Section 9601, et seq.; the
Clean Water Act, 33 U.S.C. Section 1251, et seq.; the Toxic Substance Control Act, 15 U.S.C. Section 2601, et seq.;
the Safe Drinking Water Act, 42 U.S.C. Section 201,300f to j-9 and any and all environmental laws of the State of Arizona and
any and all amendments to such Environmental Laws. Tenant agrees to hold harmless Landlord, and hereby waives all rights and claims
of contribution against Landlord, with respect to any violations or alleged violations of Environmental Laws or any other federal,
state and local laws, regulations and directives concerning the Premises which arise as a result of Tenant’s activities
at the Premises. 

 

ARTICLE
4: LEASE TERM

 

4.01
Lease Commencement.

 

The
duration of the period of this Lease (the “Term”) shall commence on the date of delivery of possession of the
Premises (the "Lease Commencement Date") as outlined in Exhibit A and shall, subject to the right
of the Tenant reserved hereunder to extend that duration, run for a period of two hundred forty (240) months therefrom. Notwithstanding
the foregoing, in the event the Landlord is delayed in the delivery of the Premises to Tenant due to a Tenant Delay, the Commencement
Date shall be deemed to have occurred on the date on which the Landlord would have been able to deliver the Premises to the Tenant
absent the Tenant caused delay. 

 

ARTICLE
5: RENTAL PAYMENTS

 

5.01
Base Rent

 

The
Base Rent ("Base Rent") shall be as set forth in Exhibit B and is adjusted annually as of each
Anniversary Date as defined and as set forth in Exhibit B. The Base Rent shall be paid in advance on the first day
of each and every month during the Term to Landlord at the address set forth in Section 1.01 hereof or at such other
place as Landlord may direct in writing, without any prior notice or demand therefor and without any abatement, deduction, offset
or setoff whatsoever unless permitted by law or otherwise permitted in this lease. If the Term commences on any day other than
the first day of a calendar month and/or ends on any day other than the last day of a calendar month, Base Rent for the fraction(s)
of a month at the commencement and/or upon the expiration of the Term shall be prorated based upon the actual number of days in
such fractional month(s). 

 

    	 	9	 

     

    

 

5.02
Additional Rent

 

In
addition to Base Rent, Tenant shall pay to Landlord all sums of money or other charges required to be paid by the Tenant under
this Lease (other than Base Rent and the Prepaid Rent), including but not limited to Tenant's Share of Operating Expenses (as
defined in Article 6 hereof) (all such sums being herein deemed "Additional Rent''), and whether or
not the same are designated "Additional Rent" the same shall be payable in lawful money of the United States of America
without deduction, set-off or abatement whatsoever unless permitted by law or otherwise permitted in this lease. Any Additional
Rent provided for in this Lease shall become due with the next monthly installment of Base Rent unless otherwise provided. The
term "Rent" as used in this Lease, shall refer collectively to "Base Rent" and "Additional
Rent."

 

5.03
Late Payment

 

Lessee
hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the exact
amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting
charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor
within 5 days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall immediately pay
to Lessor a one-time late charge equal to 12% of each such overdue amount plus $25 per day for each day late after five
(5) days. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur
by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee's Default
or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder.
In the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then
notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor's option, become due and payable quarterly
in advance.

 

Any
monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due shall bear interest from the
31st day after it was due. The interest ("Interest") charged shall be computed at the rate of 12% per
annum but shall not exceed the maximum rate allowed by law.

 

5.04
Prepaid Rent

 

There
will be no Prepaid Rent.

 

    	 	10	 

     

    

 

5.05
Security Deposit 

 

As of the parties’ execution of
this Lease, Tenant shall deliver the Security Deposit in the amount of $40,000 to Landlord paid over twelve months beginning September
1, 2015 as $3,333.33 consistent with Section 1.01 as partial security for the performance by Tenant of the provisions
of this Lease. In the event of any Default by Tenant under this Lease, Landlord shall have the right to apply all or any portion
of the Security Deposit to cure the Default and reinstate this Lease, or to otherwise compensate Landlord for all damages sustained
by Landlord resulting from or in connection with such Default. In the event of any such application of the Security Deposit by
Landlord, Tenant shall upon demand deliver to Landlord the sum required to restore the Security Deposit to the amount set forth
in Section 1.01. Provided that Tenant is not in Default at the expiration or termination of this Lease, Landlord
shall return any remaining portion of the Security Deposit to Tenant within thirty (30) days after the date of such expiration
or termination. Landlord's rights with respect to the Security Deposit are those of a trustee. Landlord shall be entitled to commingle
the Security Deposit with Landlord's general funds and shall have no obligation to pay Tenant interest on the Security Deposit.
In the event of a transfer of Landlord's interest in this Lease during the Term hereof, provided Landlord transfers the then unapplied
Security Deposit to the transferee and the transferee agrees and actually does deposit the check to a trust account held for the
sole use of this provision, Landlord shall be discharged from any further liability with respect to the Security Deposit.

 

ARTICLE
6: ADDITIONAL RENT AND CHARGES

 

6.01
Real Property Taxes

 

For
purposes of this Lease, "Real Property Taxes" shall consist of all real estate taxes, leasehold excise taxes
and all other taxes relating to the Building, the Common Areas and/or the Project, as applicable, all other taxes which may be
levied in lieu of real estate taxes, all assessments, local improvement districts, assessment bonds, levies, fees and other governmental
charges, including, but not limited to, charges for traffic facilities and improvements, water service studies, and improvements
or amounts necessary to be expended because of governmental orders, whether general or special, ordinary or extraordinary, unforeseen
as well as foreseen, of any kind and nature for public improvements, services, benefits, or any other purpose, which are assessed,
levied, confirmed, imposed or become a lien upon the Building or any portion of the Project, the Property and/or the Common Areas,
or become payable during the Term (or which become payable after the expiration or earlier termination hereof and are attributable
in whole or in part to any period during the Term hereof), together with all costs and expenses incurred by Landlord in successfully
contesting, resisting or appealing any such taxes, rates, duties, levies or assessments, "Real Property Taxes" shall
exclude any franchise, estate, inheritance or succession transfer tax of Landlord, or any federal or state income, profits or
revenue tax or charge upon the net income of Landlord from all sources; provided, however, that if at any time during the
Term there is levied or assessed against Landlord a federal, state or local tax or excise tax on rent, or any other tax however
described on account of rent or gross receipts or any portion thereof, Tenant shall pay one hundred percent (100%) of the Tenant's
Share of any said tax or excise applicable to Tenant's Rent as Additional Rent. 

    	 	11	 

     

    

 

Together
with each payment of Rent to Landlord commencing and prorated as of the Commencement Date through the balance of the Term, Tenant
shall pay to Landlord one-twelfth (1/12th) of the prior calendar year’s real property taxes and assessments with
respect to the Premises and one-twelfth (1/12th) of the then current calendar’s year’s association assessments
and fees (if any) with respect to the Premises each month. Subject to such payment, Landlord shall pay such taxes, assessments
and fees to the respective taxing authority and office association. In addition, Tenant shall pay all personal property taxes
with respect to any property of Tenant or any subtenant in or upon the Premises prior to delinquency and directly to the respective
taxing authority on or before the last day upon which the same may be paid without interest or penalty, and Tenant shall deliver
to Landlord reasonable documentation evidencing Tenant’s compliance with the foregoing payment obligations.

 

6.02
Tenant's Personal Property Taxes

 

Tenant
shall pay or cause to be paid, prior to delinquency, any and all taxes and assessments levied upon all trade fixtures, inventories
and other real or personal property placed or installed in and upon the Premises by Tenant. If any such taxes on Tenant's personal
property or trade fixtures are levied against Landlord or Landlord's property or if the assessed value of the Building is increased
by the inclusion therein of a value placed upon such real or personal property or trade fixtures of Tenant, and if Landlord pays
the taxes based upon such increased assessment, Tenant shall, upon demand, repay to Landlord the taxes so levied or the portion
of such taxes reusing from such increase in the assessment.

 

6.03
Rental Taxes

 

In
addition to the Rent which Tenant is required to pay Landlord herein, Tenant shall pay Landlord all transaction privilege, sales,
rental and/or other taxes or licenses (but excluding income or estate taxes charged against Landlord) levied upon or assessed
against Landlord by any governmental authority having jurisdiction, which are measured by the Rent or other charges in any form
paid by Tenant to Landlord hereunder. The amount required to be paid by Tenant to Landlord pursuant to the immediately preceding
sentence shall be paid at the time the applicable Rent is due or other charges are due and shall be considered as payment of taxes
or licenses, as the case may be, and not for the payment of Rent.

 

    	 	12	 

     

    

 

ARTICLE
7: INSURANCE

 

7.01
Tenant's Insurance

 

Tenant
shall, at its own cost and expense, keep and maintain in full force during the Term and any other period of occupancy of the Premises
by Tenant, the following types of insurance with insurance companies approved to engage in business in the State of Arizona, and
reasonably approved by Landlord, in the amounts specified and in the form hereinafter provided for:

 

		(a)	Fire,
                                         casualty and extended coverage insurance on Tenant's fixtures, improvements and other
                                         property for not less than the full replacement value, together with business interruption
                                         coverage, as Landlord may reasonably require. Such policy shall contain an agreed amount
                                         endorsement in lieu of a coinsurance clause.

		(b)	Commercial liability insurance insuring Tenant against any liability arising out of the lease, use, occupancy
or maintenance of the Premises and all areas appurtenant thereto or business operated by Tenant pursuant to the Lease, including
that from personal injury or property damage in or about the Premises, insuring Landlord, and any designated mortgagee of Landlord,
and Tenant, and naming Landlord and any designated mortgagee of Landlord as an additional insured therein. Such insurance shall
be in the minimum amounts of not less than $3,000,000 per occurrence against liability for bodily injury including death and personal
injury for any single (1) occurrence and not less than $1,000,000 per occurrence for property damage, or combined single limit
insurance insuring for bodily injury, death and property damage in an amount of not less than $5,000,000. The policy shall insure
the hazards of the Premises and Tenant's operations therein, shall include independent contractor and contractual liability coverage
(covering the indemnity contained in Section 7.06 hereof) and shall (a) name Landlord, Landlord's managing agent
and the Landlord's mortgagee under a mortgage or beneficiary under a deed of trust either having a first lien against the Building
or Project (the "Lender") as an additional insured; (b) contain a cross-liability provision; and (c) contain a
provision that the insurance provided hereunder shall be primary and non-contributing with any other insurance available to Landlord.

		(c)	Workers'
                                         compensation insurance for the benefit of all employees entering upon the Premises as
                                         a result of or in connection with the employment by Tenant;

		(d)	Such
                                         other forms of insurance as may be reasonably required to cover future risks against
                                         which a reasonably prudent Landlord or Tenant would protect itself.

 

Landlord
may from time to time amend this Lease Agreement to require increased insurance coverage by the Tenant if in the Landlord's reasonable
discretion, the same is necessary to adequately insure Tenant's activities in the Premises or as any Mortgagee may reasonably
require. 

    	 	13	 

     

    

 

7.02
Form of Insurance Certificates

 

All
policies shall be written in a form satisfactory to Landlord and shall be written by insurance companies licensed with a Best’s
rating and Financial Size Category Rating of "A++" and authorized to do business in the state in which the Building
is situated. Tenant shall furnish to Landlord, prior to Tenant's entry into the Premises and thereafter within thirty (30) days
prior to the expiration of each such policy (or renewal thereof), a certificate of insurance issued by the insurance carrier
of each policy of insurance carried by Tenant pursuant hereto, together with a copy of the policy declaration page(s), certifying
that such policy(ies) has been issued, provides coverage required by this Article 7 (including name of additional
insured entities as required by this Article 7 and a statement that no deductible or self-insurance retention applies
to such policy and upon request by Landlord, a copy of each such policy of insurance.

 

7.03
Tenant's Failure

 

If
Tenant fails to maintain any insurance required in the Lease, Tenant shall be liable for any loss or cost resulting from said
failure, and Landlord shall have the right to obtain such insurance on Tenant's behalf and at Tenant's sole expense, the cost
of which, plus a fifteen percent (15%) administrative fee, shall be deemed Additional Rent and shall be payable upon Landlord’s
demand. This Section 7.03 shall not be deemed to be a waiver of any of Landlord's rights and remedies under any
other Section of this Lease. If Landlord obtains any insurance, which is the responsibility of Tenant to obtain under this Article
7, Landlord agrees to deliver to Tenant a written statement setting forth the cost of any such insurance and any administrative
fee charged as provided for under this Section of this Lease.

 

7.04
Waiver of Subrogation

 

Each
policy evidencing insurance required to be carried by Tenant pursuant to this Article 7 shall contain the following clauses and
provisions: (i) that such policy and the coverage evidenced thereby shall be primary and non-contributing with respect to any
policies carried by Landlord and that any coverage carried by Landlord be excess insurance; (ii) including Landlord and the parties
set forth in Article 7 of this Lease and any other parties designated by Landlord from time to time as additional
insured entities; (iii) a waiver by the insurer of any right to subrogation against Landlord and other additional insured entities,
its or their agents, employees and representatives which arises or might arise by reason of any payment under such policy(ies)
or by reason of any act or omission of Landlord, its agents, employees or representatives; (iv) a severability of interest clause
or endorsement; and (v) that the insurer will not cancel or change the coverage provided by such policy without giving Landlord
thirty (30) days' prior written notice. Any policy of insurance required to be carried by Tenant that names the parties set forth
in this Article 7 as additional insured entities shall not be subject to a deductible or self-insured retention,
it being the intent of the parties that such insurance shall fully and completely insure such additional insured entitles for
all loss or expense.

 

    	 	14	 

     

    

 

7.05
Tenant's Properties and Fixtures

 

Tenant
assumes the risk of damage to any furniture, equipment, machinery, goods, supplies or fixtures which are or remain the property
of Tenant or as to which Tenant retains the right of removal from the Premises, except to the extent due to the negligent act
or omission, or willful misconduct of Landlord. Tenant shall not do or keep anything in or about the Premises, which will in any
way tend to increase insurance rates paid by Landlord and maintained with respect to the Premises and/or the Project unless Tenant
pays directly to Landlord the increase cost of the premiums. In no event shall Tenant carry on any activities, which would invalidate
any insurance coverage maintained by Landlord. If Tenant's occupancy or business in, or on, the Premises, whether or not Landlord
has consented to the same, results in any increase in premiums for the insurance carried by Landlord with respect to the Building
and/or the Project, Tenant shall pay any such increase in premiums as Additional Rent within ten (10) days after being billed
therefore by Landlord. In determining whether increased premiums are a result of Tenant’s use of the Building, a schedule
issued by the organization computing the insurance rate on the Building and/or the Project showing the various components of such
rate shall be conclusive evidence of the several items and charges which make up such rate. Tenant shall promptly comply with
all reasonable requirements of the insurance underwriters and/or any governmental authority having jurisdiction there over, necessary
for the maintenance of reasonable fire and extended insurance for the Building and/or the Project.

 

7.06
Indemnification

 

		(a)	Tenant,
                                         as a material part of the consideration to be rendered to Landlord, hereby indemnifies
                                         and agrees to defend and hold Landlord, Landlord's managing agent and Lender, the Premises
                                         and the Project harmless for, from and against (i) any and all liability, penalties,
                                         losses, damages, costs and expenses, demands, causes of action, claims, judgments or
                                         appeals arising from any injury to any person or persons or any damage to any property
                                         resulting from Tenant's or Tenants' officers, employees, agents, assignees, subtenants,
                                         concessionaires, licensees, contractors or invitees' use, maintenance, occupation, operation,
                                         control of, or entry upon the Premises or into the Building during the Term, or resulting
                                         from any breach or default in the performance of any obligation to be performed by Tenant
                                         hereunder or for which Tenant is responsible under the terms of this Lease or pursuant
                                         to any governmental or insurance requirement, or to the extent arising from any act,
                                         neglect, fault or omission of Tenant or any of Tenant's officers, employees, agents,
                                         servants, subtenants, concessionaires, licensees, contractors or invitees, and (ii) from
                                         and against all costs and charges, including reasonable attorneys' and other reasonable
                                         professional fees, incurred in and about any of such matters and the defense of any action
                                         arising out of the same or in discharging the Project, the Property, the Building and/or
                                         Premises, or any part or any thereof, from any and all liens, charges or judgments which
                                         may accrue or be placed thereon by reason of any act or omission of the Tenant.

  

    	 	15	 

     

    

 

		(b)	In
                                         the event of the concurrent negligence of Tenant, its sublessees, assignees, invitees,
                                         agents, employees, contractors, or licensees on the one hand, and the negligence of Landlord,
                                         its agents, employees or contractors on the other hand, which concurrent negligence results
                                         in injury or damage to persons or property of any nature and howsoever caused, and relates
                                         to the construction, alteration, repair, addition to, subtraction from, improvement to
                                         or maintenance of the Project, Building, Common Areas or Premises such that Section 4.24.115
                                         Revised Code of Arizona (“RCI”) is applicable, then Tenant's obligation to
                                         indemnify Landlord shall be limited to the extent of Tenant's negligence and that of
                                         Tenant’s officers, sublessees, assignees, invitees, agents, employees, contractors
                                         or licensees, including Tenant's proportional share of costs, reasonable attorneys' fees
                                         and expenses incurred in connection with any claim, action or proceeding brought with
                                         respect to such injury or damage. If Tenant elects to assert its industrial insurance
                                         immunity under title 51 of the RCI, and such assertion is inconsistent with the right
                                         of the Landlord to indemnification pursuant to this Lease, Landlord shall retain its
                                         right to indemnity hereunder and, correspondingly, Tenant shall remain liable to Landlord
                                         as indemnitor. This Section of this Lease has been mutually negotiated by Landlord and
                                         Tenant and relates only to Tenant’s waiver of immunity with under industrial insurance,
                                         Title 51 RCI, and not to any third party, including any injured employee of Tenant.

		(c)	In
                                         no event shall Landlord, its agents, employees and/or contractors are liable for any
                                         personal injury or death or property damage caused by other lessees or their agents,
                                         as the case may be, or caused by public or quasi-public work, or for consequential damages
                                         arising out of any loss of the use of the Premises or any equipment or facilities therein
                                         by Tenant or any person claiming through or under Tenant except if such tenant and/or
                                         employee, agent and/or contractor was directed or instructed by landlord, its agents,
                                         employees and/or contactors, to act in a manner that results in damages to Tenant.

 

7.07
Damage to Tenant's Property

 

Notwithstanding
the provisions of Section 7.06 to the contrary, except to the extent due to the gross negligence or willful misconduct of Landlord,
Landlord, its agents, employees and/or contractors shall not be liable for (i) any damage to property entrusted to employees or
security officers of the Project, Building or the Property, (ii) loss or damage to any property by theft or otherwise, or (iii)
any injury or damage to persons or property resulting from fire, explosion, falling substances or materials, steam, gas, electricity,
water or rain which may leak from any part of the Building, the Common Areas, Project or the Property or from the pipes, appliances
or plumbing work therein or from the roof, street, or subsurface or from any other place or resulting from dampness or any other
cause, except to the extent Landlord receives consideration for such damage or injury from a third party. Neither Landlord nor
its agents, employees or contractors shall be liable for interference with light. Tenant shall give prompt notice to Landlord
and appropriate emergency response officials if Tenant is or becomes aware of fire or accidents in the Building, the Common Areas
or any other portion of the Project or of defects therein in the fixtures or equipment.

 

    	 	16	 

     

    

 

ARTICLE
8: REPAIRS AND MAINTENANCE

 

8.01
Landlord Repairs and Maintenance

 

Subject
to Landlord's right to reimbursement from Tenant pursuant to Sections 6 and Section 8, to the extent
applicable, Landlord shall at its expense maintain in good condition and repair the structural portions of the Building including
without limitation the foundation, roof and membrane and shall maintain in good condition the exterior of the Building, utilities
to their point of connection to the Premises and the Common Areas of the Project. Landlord shall not be liable for any failure
to make any repairs or to perform any maintenance unless such failure shall persist and no action is taken to repair failure for
ten (10) days after written notice of the need for such repairs or maintenance is given to Landlord by Tenant or a shorter reasonable
time if such repair is of an urgent nature. There shall be no abatement of Rent and, except for the negligence or willful misconduct
of Landlord or its employees, no liability of Landlord by reason of any injury to or interference with Tenant's business arising
from the making of any repairs, alterations or improvement in or to any portion of the Premises or in or to fixtures, appurtenances
and equipment therein; provided, that Landlord, its employees, agents and contractors use reasonable efforts not to unreasonably
interfere with Tenant's business in exercise of Landlord's rights or obligations hereunder. Except as may otherwise be expressly
set forth herein, Tenant affirms that (a) neither Landlord nor any agent, employee or officer of Landlord has made any representation
regarding the condition of the Premises, the Building, the Common Areas or the Project, and (b) Landlord shall not be obligated
to undertake any repair, alteration, remodel, improvement, painting or decorating.

 

8.02
Utilities and Services

 

Subject
to reimbursement pursuant to Sections 8.03 hereof, to the extent applicable, Landlord shall furnish or cause to
be furnished to the Premises lines for water, electricity, sewage and telephone. Tenant shall pay before delinquency, at its sole
cost and expense, all charges for water, heat, electricity, power, telephone service, sewer service charges and other utilities
or services charged or attributable to the Premises; provided, however, that if any such services or utilities shall be
billed to Landlord and are not separately billed to the Premises, Tenant shall pay to Landlord as Additional Rent, an amount equal
to that proportion of the total charges therefor which the Rentable Area of the Premises bears to the rentable area of leased
area covered by such charges.

 

    	 	17	 

     

    

 

8.03
Tenant Repairs and Maintenance

 

Except
as otherwise set forth in Sections 8.01 and Section 8.02 above, Tenant shall, at Tenant's sole cost
and expense, keep, maintain and, to the extent reasonably required, replace the entire Premises, including but not by way of limitation,
all interior walls, doors, ceiling, fixtures, furnishings, drapes, specialty lamps, light bulbs used for lighting, starters and
ballasts for lighting, subfloors, carpets and floor coverings, elevators and heating, ventilation, air conditioning, and other
utility and mechanical systems except dehumidifiers within the Premises to the extent serving the Premises exclusively, in good
repair and in a clean and safe condition; provided that Landlord shall have the right to perform such work on behalf of
Tenant in which event Tenant shall reimburse Landlord for the cost thereof promptly upon demand therefor. Tenant shall have the
right to make routine repairs that are reasonably necessary for the day-to-day operation of the project without requiring prior
approval from Landlord. In addition, if any repair or maintenance is necessary or prudent under Sections 8.01 and
Section 8.02 as a result of an act or omission of Tenant or its agents, employees or contractors, Tenant shall reimburse
Landlord for the entire cost of any such repair or maintenance immediately upon written demand therefor. Upon expiration or earlier
termination of the Term, Tenant shall surrender the Premises to Landlord in the same condition as when leased, reasonable wear
and tear and damage by fire or other casualty not required to be repaired by Tenant pursuant to this Lease excepted. Notwithstanding
the preceding, Landlord may elect to contract with an HVAC service provider for periodic filter changes and inspections of the
HVAC equipment located in the Premises ("Periodic Inspections"). The cost of such Periodic Inspections are to
be paid by Landlord. HVAC related costs necessary to maintain the HVAC system in top operating condition (repairs, replacements,
coil cleaning, etc.) shall be the responsibility of Tenant. All costs due by Tenant to Landlord in this article shall be considered
Additional Rent due within ten (10) days after receipt of billing.

 

8.04
Non-liability of Landlord

 

Notwithstanding
anything to the contrary contained in Sections 8.01 and Section 8.02 above or elsewhere in this Lease,
Landlord shall not be in default hereunder or be liable for any damages directly or indirectly resulting from, nor shall the Rent
herein reserved be abated or rebated by reason of (a) the interruption or curtailment of the use of the Premises as a result of
the installation of any equipment in connection with the Building or Project; or (b) any failure to furnish or delay in furnishing
any services required to be provided by Landlord, unless and to the extent such failure or delay is caused by accident or any
condition created by Landlord's active negligence; or (c) the limitation, curtailment, rationing or restriction of the use of
water or electricity, gas or any other form of energy or any other service or utility whatsoever serving the Premises or Project.

  

8.05
Inspection of Premises

 

Landlord
may enter the Premises to complete construction undertaken by Landlord on the Premises, to inspect, clean, improve or repair the
same, to inspect the performance by Tenant of the terms and conditions hereof, show the Premises to prospective purchasers, tenants
and lenders and for all other purposes as Landlord shall reasonably deem necessary or appropriate; provided, that Landlord shall
use reasonable efforts not to interfere with Tenant's business in exercise of Landlord's rights hereunder. Tenant hereby waives
any claim for damages for any injury or inconvenience to or interference with Tenant's business, any loss of occupancy or quiet
enjoyment of the Premises and any other loss in, upon or about the Premises, arising from exercise by Landlord of its rights hereunder. 

 

    	 	18	 

     

    

 

ARTICLE
9: FIXTURES, PERSONAL PROPERTY ALTERATIONS

 

9.01
Fixtures and Personal Property

 

Tenant,
at Tenant's expense, may install any necessary trade fixtures, equipment and furniture in the Premises, provided that such items
are installed and are removable without damage to the structure of the Premises, including, but not limited to, damage to drywall,
doors, door frames and floors. Landlord reserves the right to approve or disapprove of any interior improvements, which are visible
from outside the Premises. Such improvements must be submitted for Landlord's written approval prior to installation, or Landlord
may remove or replace such items at Tenant's sole expense. Said trade fixtures, equipment, furniture, cabling and personal property
shall remain Tenant's property and shall be maintained in good condition while on the Premises and removed by Tenant upon the
expiration or earlier termination of the Lease. As a covenant which shall survive the expiration or earlier termination of the
Lease by 30 days, Tenant shall repair, at Tenant's sole expense, or at Landlord's election, reimburse Landlord for the cost to
repair all damage caused by the installation or removal of said trade fixtures, equipment, cabling, furniture, personal property
or temporary improvements. All installations and fixtures shale become the property of Landlord after completion of installation
by Tenant. If Tenant fails to remove any items required by Landlord prior to or upon the expiration or earlier termination of
this Lease, Landlord, at its option and without liability to Tenant for loss thereof, may keep and use them or remove any
or all of them and cause them to be stored or sold in accordance with applicable law, and Tenant shall, upon demand of Landlord,
pay to Landlord as Additional Rent hereunder all costs and expenses incurred by Landlord in so storing and/or selling said items.
In the event any such fixtures, equipment, and/or furniture of Tenant are sold by Landlord, the proceeds of such sale shall be
applied, first, to all expenses of Landlord incurred in connection with storage and sale; second, to any amounts owed by Tenant
to Landlord under this Lease or otherwise, and, third, the remainder, if any, shall be paid to Tenant.

 

    	 	19	 

     

    

 

9.02
Alterations

 

Tenant
shall not make or allow to be made any material alterations, additions or improvements to the Premises (defined as alterations,
additions or improvements costing in excess of $5,000.00 individually or in the aggregate with respect to separate items relating
to the same improvement or alteration, or alterations, additions or improvements which affect the structure or exterior of the
Building or any building, mechanical, electrical or life safety system), either at the inception of the Lease or subsequently
during the Term, without obtaining the prior written consent of Landlord, which consent may be withheld in Landlord's sole discretion
with respect to any alteration, addition or improvement that (i) affects the structure or exterior of the Building or any building,
mechanical, electrical or life safety systems or (ii) potentially causes the Premises or Building to fail to comply with Arizona
State Marijuana rules and regulations pertaining to facilities producing or processing cannabis, but shall not be unreasonably
withheld. Tenant shall deliver to Landlord the contractor's name, state license number, a certificate of liability insurance naming
Landlord and Landlord's manager and lender(s) as an additional insured, as well as full and complete plans and specifications
of all such alterations, additions or improvements, and any subsequent modifications or additions to such plans and specifications,
and no proposed work shall be commenced or continued by Tenant until Landlord has received and given its written approval of each
of the foregoing. Landlord shall either approve or disapprove any proposed alteration, addition or improvement within thirty (30)
days following receipt of all of the foregoing items, and if Landlord fails to deliver notice of disapproval within 30 days following
receipt of all the foregoing items, Landlord's consent is deemed granted. Landlord shall not expressly or implicitly covenant
or warrant that any plans or specifications submitted by Tenant are accurate, safe or sufficient or that the same comply with
any applicable laws, ordinances, building codes, or the like. Further, Tenant shall indemnify, protect, defend and hold Landlord
and Landlord's agents, employees and contractors and the Building harmless for, from and against any loss, damage, liability,
claims, cost or expense, including attorneys' fees and costs, incurred as a result of any defects in design, materials or workmanship
resulting from Tenant's alterations, additions or improvements to the Premises. All alterations, telephone or telecommunications
lines, cables, conduits and equipment and all other additions or improvements to the Premises made by Tenant shall remain the
property of Tenant until termination of the Lease, at which time they shall, unless otherwise elected by Landlord by written notice
to Tenant, be and become the property of Landlord. Landlord may, as a condition to approval of any such alterations, additions
or improvements, require Tenant to remove any partitions, counters, railings, telephone and telecommunications lines, cables,
conduits and equipment and/or other improvements installed by Tenant during the Term, and Tenant shall repair all damage resulting
from such removal or shall pay to Landlord all costs arising from such removal if Landlord shall demand the removal of such alterations,
additions and improvements prior to lease expiration or earlier termination of the Lease and Tenant fails to remove and repair
the Premises prior to Tenant’s vacation thereof. All repairs, alterations, additions and restorations by Tenant hereinafter
required or permitted shall be done in a good and workmanlike manner and in compliance with the plans and specifications approved
by Landlord and in compliance with all applicable laws and ordinances, building codes, bylaws, regulations and orders of any federal,
state, county, municipal or other public authority and of the insurers of the Premises and as-built plans and specifications shall
be provided to Landlord by Tenant upon completion of the work. If required by Landlord, Tenant shall secure at Tenant's own cost
and expense a completion and lien indemnity bond or other adequate security, in form and substance reasonably satisfactory to
Landlord. Tenant shall reimburse Landlord for Landlord's reasonable charges (including any professional fees incurred by Landlord
and a reasonable administrative fee as established by Landlord from time to time) for reviewing and approving or disapproving
plans and specifications for any proposed alterations.

 

    	 	20	 

     

    

 

9.03
Liens

 

Tenant
shall promptly file and/or record, as applicable, all notices of completion provided for by law, and shall pay and discharge all
claims for work or labor done, supplies furnished or services rendered at the request of Tenant or at the request of Landlord
on behalf of Tenant, and shall keep the Premises, the Property and the Project free and clear of all contractor’s, mechanics',
materialmen's and worker’s liens in connection therewith. Landlord shall have the right, and shall be given ten (10) business
days written notice by Tenant prior to commencement of the work, to post or keep posted on the Premises, or in the immediate vicinity
thereof, any notices of non-responsibility for any construction, alteration, or repair of the Premises by Tenant. If any such
lien or notice preceding the filing of any lien is filed, Tenant shall cause same to be discharged of record within ten (10) days
thereof, or if Tenant disputes the correctness or validity of any claim of lien, Landlord may, in its reasonable discretion, permit
Tenant to post or provide security in a form and amount acceptable to Landlord to insure that title to the Building and the Project
remains free from any such actual or potential encumbrance. If said lien or potential encumbrance is not timely discharged by
Tenant as aforesaid, Landlord may, but shall not be required to, take such action or pay such amount as may be necessary to remove
such lien and Tenant shall pay to Landlord as Additional Rent any such amounts expended by Landlord, together with interest thereon
at the Default Rate of 12% within five (5) days after notice is received from Landlord of the amount expended by Landlord. 

 

ARTICLE
10: USE AND CONFLUENCE WITH APPLICABLE LAW

 

10.01
Premises Use and Confluence with Applicable Law

 

State
and Federal Law Confluence. Tenant shall only use the Premises for the purposes described in Section 1.01 above,
and uses customarily incidental thereto, and for no other use without the prior written consent of Landlord. Tenant shall, at
Tenant's sole cost and expense, comply with applicable requirements of municipal, county, state and, except as to certain applicable
federal law, other applicable governmental authorities now or hereafter in force pertaining to Tenant's business operations, alterations
and/or specific use of the Premises, the Building and/or the Project, and shall secure any necessary permits therefore and shall
faithfully observe in the use of the Premises, Building and the Project, applicable municipal, county, state and, except as to
certain applicable federal law, other applicable governmental entities' requirements which are now or which may hereafter be in
force. In connection with the immediately preceding sentence, Tenant and Landlord acknowledge their belief that the Lease of the
Premises for the intended use relates to activities that they have been advised are lawful under the laws of the State of Arizona,
yet perhaps not lawful under the laws of the United States. The parties acknowledge that both are benefited by the exchanged considerations
under this Lease and owing to their mutual understanding that the intended Premises use is lawful under the laws of the State
of Arizona, hereby agree that present status of federal law rendering the intended use of the Premises as unlawful shall not serve
as a basis for Tenant to claim a breach of the terms hereof for any reason.

 

    	 	21	 

     

    

 

10.02
Hazardous Materials

 

		(a)	Defined
                                         terms. "Hazardous Materials" means, among other things, any of the following,
                                         in any amount: (a) any petroleum or petroleum derived or derivative product, asbestos
                                         in any form, urea formaldehyde and polychlorinated biphenyls and medical wastes; (b)
                                         any radioactive substance; (c) any toxic, infectious, reactive, corrosive, ignitable
                                         or flammable chemical or chemical compound; and (d) any chemicals, materials or substances,
                                         whether solid, liquid or gas, defined as or included in the definitions of "hazardous
                                         substances," "hazardous wastes," "hazardous materials," "extremely
                                         hazardous wastes," "restricted hazardous wastes," ''toxic substances,"
                                         "toxic pollutants," "solid waste," or words of similar import in
                                         any federal, state or local statute, law, ordinance or regulation or court decisions
                                         now existing or hereafter existing as the same may be interpreted by government offices
                                         and agencies. "Hazardous Materials Laws" means any federal, state or local
                                         statutes, laws, ordinances or regulations or court decisions now existing or hereafter
                                         existing that control, classify, regulate, list or define Hazardous Materials or require
                                         remediation of Hazardous Materials contamination.

		(b)	Compliance
                                         with Hazardous Materials Laws. Tenant will not cause any Hazardous Material to be brought
                                         upon, kept, generated or used on the Project in a manner or for a purpose prohibited
                                         by or that could result in liability under any Hazardous Materials Law; provided,
                                         however, in no event shall Tenant allow any Hazardous Material to be brought upon,
                                         kept, generated or used in the Premises or on the Project other than those Hazardous
                                         Materials for which Tenant has received Landlord's prior written consent to bring on
                                         (other than small quantities of cleaning or other/industrial supplies as are customarily
                                         used by a Tenant in the ordinary course of business in a general industrial business
                                         park facility). Tenant, at its sole cost and expense, will comply with (and obtain all
                                         permits required under) all Hazardous Materials Laws, groundwater wellhead protection
                                         laws, storm water management laws, fire protection provisions, and prudent industry practice
                                         relating to the presence, storage, transportation, disposal, release or management of
                                         Hazardous Materials in, on, under or about the Premises or the Project that Tenant brings
                                         upon, keeps, generates or uses in the Premises or on the Project (including, without
                                         limitation, but subject to this Section 10.02, immediate remediation of
                                         any Hazardous Materials in, on, under or about the Project that Tenant brings upon, keeps,
                                         generates or uses on the Project in compliance with Hazardous Materials Laws) and in
                                         no event shall Tenant allow any liens or encumbrances pertaining to Tenant's use of Hazardous
                                         Materials to attach to any portion of the Project. On or before the expiration or earlier
                                         termination of this Lease, Tenant, at its sole cost and expense, will completely remove
                                         from the Premises or, as applicable, the Project (regardless whether any Hazardous Materials
                                         Law requires removal), in compliance with all Hazardous Materials Laws, all Hazardous
                                         Materials Tenant causes to be present in, on, under or about the Premises or the Project.
                                         Tenant will not take any remedial action in response to the presence of any Hazardous
                                         Materials in on, under or about the Premises or the Project, nor enter into (or commence
                                         negotiations with respect to) any settlement agreement, consent decree or other compromise
                                         with respect to any claims relating to or in any way connected with Hazardous Materials
                                         in, on, under or about the Premises or the Project, without first notifying Landlord
                                         of Tenant's intention to do so and affording Landlord reasonable opportunity to investigate,
                                         appear, intervene and otherwise assert and protect Landlord's interest in the Premises
                                         and/or the Project. Landlord shall have the right from time to time to inspect the Premises
                                         to determine if Tenant is in compliance with this Section 10.02.

 

    	 	22	 

     

    

 

		(c)	Notice
                                         of Actions. Tenant will notify Landlord of any of the following actions affecting Landlord,
                                         Tenant or the Premises or the Project that result from or in any way relate to Tenant's
                                         use of the Premises or the Project immediately after receiving notice of the same: (i)
                                         any enforcement, cleanup, removal or other governmental or regulatory action instituted,
                                         completed or threatened under any Hazardous Materials Law; (ii) any claim made or threatened
                                         by any person relating to damage, contribution, liability, cost recovery, compensation,
                                         loss or injury resulting from or claimed to result from any Hazardous Material; and (iii)
                                         any reports made by any person, including Tenant, to any environmental agency relating
                                         to any Hazardous Material, including any complaints, notices, warnings or asserted violations.
                                         Tenant will also deliver to Landlord, as promptly as possible and in any event within
                                         five (5) business days after Tenant first receives or sends the same, copies of all claims,
                                         reports, complaints, notices, warnings or asserted violations relating in any way to
                                         the Premises or the Project or Tenant's use of the Premises or the Project. Upon Landlord's
                                         written request, Tenant will promptly deliver to Landlord documentation acceptable to
                                         Landlord reflecting the legal and proper disposal of all Hazardous Materials removed
                                         or to be removed from the Premises. All such documentation will list Tenant or its agent
                                         as a responsible party and the generator of such Hazardous Materials and will not attribute
                                         responsibility for any such Hazardous Materials to Landlord or Landlord's property manager.

		(d)	Disclosure
                                         and Warning Obligations. Tenant acknowledges and agrees that all reporting and warning
                                         obligations required under Hazardous Materials Laws resulting from or in any way relating
                                         to Tenant's use of the Premises or Project are Tenant's sole responsibility, regardless
                                         whether the Hazardous Materials Laws permit or require Landlord to report or warn.

		(e)	Indemnification.
                                         Tenant releases and will indemnify, defend (with counsel reasonably acceptable to Landlord),
                                         protect and hold harmless the Landlord and Landlord's agents, employees and contractors
                                         for, from and against any and all claims, liabilities, damages, losses, costs and expenses
                                         whatsoever arising or resulting, in whole or in part, directly or indirectly, from the
                                         presence, treatment, storage, transportation, disposal, release or management of Hazardous
                                         Materials in, on, under, upon or from the Premises or the Project (including water tables
                                         and atmosphere) that Tenant brings upon, keeps, generates or uses on the Premises or
                                         the Project. Tenant's obligations under this Section include, without limitation and
                                         whether foreseeable or unforeseeable, (i) the costs of any required or necessary repair,
                                         cleanup, detoxification or decontamination of the Premises or the Project; (ii) the costs
                                         of implementing any closure, remediation or other required action in connection therewith
                                         as stated above; (iii) the value of any loss of use and any diminution in value of the
                                         Premises or the Project, and (iv) consultants' fees, experts' fees and response costs.
                                         The Tenant's obligations under this section survive the expiration or earlier termination
                                         of this Lease.

 

    	 	23	 

     

    

 

		(f)	Hazardous
                                         Materials Representation by Landlord. Landlord represents to Tenant that, to its actual
                                         knowledge and except as Landlord has previously disclosed to Tenant, Landlord has not
                                         caused the generation, storage or release of Hazardous Materials upon the Premises, except
                                         in accordance with Hazardous Materials Laws and prudent industry practices regarding
                                         construction of the Premises.

		(g)	Environmental
                                         Site Assessments. Upon request by Landlord during the Term of this Lease, prior to the
                                         exercise of any renewal Term and/or prior to vacating the Premises, Tenant will obtain
                                         and submit to Landlord an environmental site assessment from an environmental consulting
                                         company reasonably acceptable to Landlord.

 

10.03
Signs

 

The
Tenant shall not paint, display, inscribe, place or affix any sign, picture, advertisement, notice, lettering, or direction on
any part of the outside of the Building or the Project or visible from the outside of the Premises, the Building or the Project,
except as first approved by Landlord in writing or as may be set forth in the Outline Plans and Specifications. All signage shall
comply with the Project sign criteria as adopted and promulgated by Landlord from time to time.

 

ARTICLE
11: DAMAGE AND DESTRUCTION

 

11.01
Reconstruction

 

If
the Building is damaged or destroyed during the Term other than by reason of the negligence or act of Tenant, Landlord shall,
except as hereinafter provided, diligently repair or rebuild it to substantially the condition in which it existed immediately
prior to such damage or destruction. If Landlord is obligated or elects to repair or restore as herein provided, Landlord shall
be obligated to make repair or restoration of only those portions of the Premises which were initially provided at Landlord's
expense or as part of the original installation by Landlord for Tenant and the repair and/or restoration of other items within
the Premises shall be the obligation of the Tenant.

 

11.02
Excessive Damage or Destruction

 

If
the Building or the Premises is damaged or destroyed by reason arising other than through the neglect or act of Tenant to the
extent that it cannot within Landlord's reasonable discretion, with reasonable diligence, be fully repaired or restored by Landlord
within the earlier of (i) one hundred twenty (120) days after the date of the damage or destruction, or (ii) the expiration of
the Term hereof, Landlord may terminate this Lease by written notice to Tenant within thirty (30) days of the date of the damage
or destruction. If Landlord does not terminate the Lease, this Lease shall remain in full force and effect and Landlord shall
diligently repair and restore the damage as soon as reasonably possible.

 

    	 	24	 

     

    

 

11.03
Uninsured Casualty

 

Notwithstanding
anything contained herein to the contrary, in the event of damage to or destruction of all or any portion of the Building, which
damage or destruction is not fully covered by the insurance proceeds received by Landlord under the insurance policies described
in Article 7 hereinabove, Landlord may terminate this Lease by written notice to Tenant given within sixty (60)
days after the date of notice to the Landlord that said damage or destruction is not so covered. If Landlord does not elect to
terminate this Lease, the Lease shall remain in full force and effect and the Building shall be repaired and rebuilt in accordance
with the provisions for repair set forth in Section 11.01 hereinabove.

 

11.04
Waiver

 

With
respect to any damage or destruction which Landlord is obligated to repair or may elect to repair under the terms of this Article
11, and to the extent permitted by law, Tenant hereby waives any rights to terminate this Lease pursuant to rights otherwise
accorded by law to tenants, except as expressly otherwise provided herein.

 

11.05
Mortgagee's Right

 

Notwithstanding
anything herein to the contrary, if the holder of any indebtedness secured by a mortgage or deed of trust covering the Property,
the Building and/or the Project requires that the insurance proceeds be applied to such indebtedness, then Landlord shall have
the right to terminate this Lease by delivering written notice of termination to Tenant within fifteen (15) days after such requirement
is made. Upon any termination of this Lease under the provisions hereof, the parties shall be released without further obligation
to the other from date possession of the Premises is surrendered to Landlord, except for items which are theretofore accrued and
are then unpaid.

 

11.06
Damage Near End of Term

 

Notwithstanding
anything to the contrary contained in this Article 11, in the event the Premises or the Building are subject to
excessive damage (as defined in Section 11.03 during the last twenty-four (24) months of the Term or any applicable
extension periods, Landlord may elect to terminate this Lease by written notice to Tenant within thirty (30) days after the date
of such damage. 

 

    	 	25	 

     

    

 

ARTICLE
12: EMINENT DOMAIN

 

12.01
Condemnation & Eminent Domain

 

In
the event the whole of the Premises, Building, Project and/or Common Areas, as the case may be, and/or such part thereof as shall
substantially interfere with Tenant's use and occupation thereof, shall be taken for any public or quasi-public purpose by any
lawful power or authority by exercise of the right of appropriation, condemnation or eminent domain, or is sold in lieu of or
to prevent such taking, then Tenant shall have the right to terminate this Lease effective as of the date possession is required
to be surrendered to said authority. In the event the whole of the Premises, Building, Project and/or Common Areas, as the case
may be, or such part thereof as shall substantially interfere with Landlord's use and occupation thereof, or if any access points
to adjoining streets, shall be taken for any public or quasi-public purpose by any lawful power or authority by exercise of the
right of appropriation, condemnation or eminent domain, or is sold in lieu of or to prevent such taking, then Landlord shall have
the right to terminate this Lease effective as of the date possession is required to be surrendered to said authority. Except
as provided below, Tenant shall not assert any claim against Landlord or the taking authority for any compensation because of
such taking, and Landlord shall be entitled to receive the entire amount of any award without deduction for any estate or interest
of Tenant in the Premises. Nothing contained in this Article 12 shall be deemed to give Landlord any interest in
any separate award made to Tenant for the taking of personal property and fixtures belonging to Tenant or for Tenant's moving
expenses. In the event the amount of property or the type of estate taken shall not substantially interfere with the conduct of
Tenant's business, Landlord shall be entitled to the entire amount of the award without deduction for any estate or interest of
Tenant, Landlord shall promptly proceed to restore the Building to substantially their same condition prior to such partial taking
less the portion thereof lost in such condemnation, and the Base Rent shall be proportionately reduced by the time during which,
and the portion of the Premises which, Tenant shall have been deprived of possession on account of said taking and restoration. 

 

ARTICLE
13: DEFAULT

 

13.01
Events of Default

 

The
occurrence of any of the following events shall constitute an "Event of Default" on the part of the Tenant with
or without notice from Landlord:

 

		(a)	Tenant
                                         shall fail to pay on or before the due date any installment of Rent or other payment
                                         required pursuant to this Lease;

		(b)	Tenant
                                         shall abandon the Premises, whether or not Tenant is in default of the Rent payments
                                         due under this Lease;

		(c)	Tenant
                                         shall fail to comply with any Term, provision, or covenant of this Lease, and such failure
                                         is not cured within ten (10) days after written notice thereof to Tenant (said notice
                                         being in lieu of, and not in addition to, any notice required as a prerequisite to a
                                         forcible entry and detainer or similar action for possession of the Premises); provided
                                         that if the nature of such cure is such that a longer cure period is necessary, Tenant
                                         shall only be in default if Tenant shall have failed to commence such cure within said
                                         ten (10) day period and thereafter to have diligently prosecuted such cure to completion;

		(d)	Tenant
                                         shall file a petition or be adjudged a debtor or bankrupt or insolvent under the United
                                         States Bankruptcy Code, as amended, or any similar law or statute of the United States
                                         or any State; or a receiver or trustee shall be appointed for all or substantially all
                                         of the assets of Tenant and such appointment or petition, if involuntary, is not dismissed
                                         within sixty (60) days of filing; or

		(e)	Tenant
                                         shall make an assignment for the benefit of creditors.

		(f)	Tenant
                                         does not fully comply with the terms listed in the “LICENSED MARIJUANA COMPLIANCE
                                         AGREEMENT,” which will be considered an incurable default.

 

    	 	26	 

     

    

 

13.02
Remedies

 

		(a)	Upon
                                         the occurrence of any Event of Default set forth in this Lease, in addition to any other
                                         remedies available to Landlord at law or in equity, Landlord shall have the immediate
                                         option to terminate this Lease and all rights of Tenant hereunder, in the event that
                                         Landlord shall elect to so terminate this Lease, then Landlord may recover from Tenant:
                                         (i) any unpaid Rent which has been earned at the time of such termination plus interest
                                         at the rates contemplated by this Lease; plus (ii) the amount by which the unpaid Rent
                                         which would have been earned after termination until the time of award exceeds the amount
                                         of such rental loss that Tenant proves could have been reasonably avoided plus interest
                                         at the rates contemplated by this Lease; plus (iii) the worth at the time of award of
                                         the amount by which the unpaid Rent for the balance of the Term after the time of award
                                         exceeds the amount of such rental loss that Tenant proves could be reasonably avoided;
                                         plus (iv) the unamortized balance of the value of any free rent, tenant improvement costs,
                                         commissions and any other monetary concessions provided to Tenant pursuant to this Lease,
                                         as amortized over the initial Term of this Lease; plus (v) any other amount necessary
                                         to compensate Landlord for all the damage proximately caused by Tenant's failure to perform
                                         Tenant's obligation under this Lease or which in the ordinary course of things would
                                         be likely to result therefrom, including, but not limited to, costs to restore the Premises
                                         to good condition, costs to remodel, renovate or otherwise prepare the Premises, or portions
                                         thereof, for a new tenant, leasing commissions, marketing expenses, reasonable attorneys'
                                         fees, and free rent, moving allowances and other types of leasing concessions. As used
                                         in Subsections 13.02(a) (iii) above, the "worth at the time of award"
                                         is computed by discounting such amount at the discount rate of the Federal Reserve Bank
                                         of San Francisco at the time of award plus one percent (1%).

 

		(b)	In
                                         the event of any such default by Tenant, Landlord shall also have the right with or without
                                         terminating this Lease, to re-enter the Premises and remove all persons and property
                                         from the Premises if the tenant fails to comply within the ten day period described above;
                                         such property may be removed and stored in a public warehouse or elsewhere at the cost
                                         of and for the account of the Tenant No re-entry or taking possession of the Premises
                                         by Landlord pursuant to this Section 13.02(b) shall be construed as an
                                         acceptance of a surrender of the Premises or an election to terminate this Lease unless
                                         a written notice of such intention is given to Tenant or unless the termination thereof
                                         is decreed by a court of competent jurisdiction.

 

		(c)	In
                                         the event of the vacation or abandonment of the Premises by Tenant or in the event that
                                         Landlord shall elect to re-enter as provided above or shall take possession of the Premises
                                         pursuant to legal proceedings or pursuant to any notice provided by law, then if Landlord
                                         does not elect to terminate this Lease as provided above, Landlord may from time to time,
                                         without terminating this Lease, either recover all Rent as it becomes due or re-let the
                                         Premises or any part thereof for the Term of this Lease on terms and conditions as Landlord
                                         at its sole discretion may deem advisable with the right to make alterations and repairs
                                         to the Premises.

  

    	 	27	 

     

    

 

		(d)	In
                                         the event that Landlord shall elect to so re-let, the rents received by Landlord from
                                         such relating shall be applied: first to the payment of any indebtedness other than Rent
                                         due hereunder from Tenant to Landlord second to the payment of any costs of such re-letting;
                                         third, to the payment of the cost of any alterations and repairs to the Premises; fourth,
                                         to the payment of Rent due and unpaid hereunder; and the residual, if any, shall be held
                                         by Landlord and applied to payment of future Rent as the same shall become due and payable
                                         hereunder. Should that portion of such rents received from such re-letting during the
                                         month, which is applied to the payment of Rent, be less than the Rent payable during
                                         that month by Tenant hereunder, then Tenant shall pay any such deficiency to Landlord
                                         immediately upon demand therefor by Landlord. Such deficiency shall be calculated and
                                         paid monthly. Tenant shall also pay to Landlord, as soon as is certain, any of the costs
                                         and expenses incurred by Landlord in such re-letting or in making such alterations and
                                         repairs not covered by the rents received from such re-letting.

 

		(e)	All
                                         rights, options and remedies of Landlord contained in this Lease shall be construed and
                                         held to be cumulative, and no one of them shall be exclusive of the other, and Landlord
                                         shall have the right to pursue any one or all of such remedies or any other remedy or
                                         relief which may be provided by law, whether or not stated in this Lease. No waiver of
                                         any default of Tenant hereunder shall be implied from any acceptance by Landlord of any
                                         Rent or other payments due hereunder or any omission by Landlord to take any action on
                                         account of such default if such default persists or is repeated, and no express waiver
                                         shall affect defaults other than as specified in said waiver. The consent or approval
                                         of Landlord to or of any act by Tenant requiring Landlord's consent or approval shall
                                         not be deemed to waive or render unnecessary Landlord's consent or approval to or of
                                         any subsequent similar acts by Tenant.

 

		(f)	In
                                         the event that during any twelve month period of this Lease, Tenant commits more than
                                         two (2) acts or omissions of default for which default notices are given by Landlord
                                         pursuant to this Article 13 (whether or not such defaults are cured by
                                         Tenant), Landlord may, at its option, elect to terminate this Lease. Landlord's election
                                         to exercise its early termination rights shall be effective only upon written notice
                                         delivered to Tenant specifying Landlord's election to cause an early termination of this
                                         Lease. Such early termination shall be in effect when such written notice is provided
                                         to Tenant. Landlord's right of early termination shall be in addition to all other rights
                                         and remedies available to Landlord at law or in equity, however, if Landlord makes this
                                         election in spite of Tenant having cured every breach within the described period, Landlord
                                         shall have no right to collect any additional future rent.

 

    	 	28	 

     

    

 

13.03
Landlord's Default

 

Landlord
shall not be in default unless Landlord fails to perform its obligations under this Lease within thirty (30) days after written
notice by Tenant, or if such failure is not reasonably capable of being cured within such thirty (30) day period, Landlord shall
not be in default unless Landlord has failed to commence the cure and diligently pursue the cure to completion. In no event shall
Landlord be liable to Tenant or any person claiming through or under Tenant for consequential, exemplary or punitive damages. 

 

ARTICLE
14: FILING OF PETITION

 

14.01
Tenant's Bankruptcy

 

Landlord
and Tenant (as either debtor or debtor-in-possession) agree that if a petition ("Petition") is filed by or against
Tenant under any Chapter of Title 11 of the United States Code (the "Bankruptcy Code"), the following provisions
shall apply:

 

		(a)	Adequate
                                         protection for Tenant's obligations accruing after filing of the Petition and before
                                         this Lease is rejected or assumed shall be provided within 15 days after filing in the
                                         form of a security deposit equal to three months' Base Rent and Additional Rent and other
                                         Lease charges, to be held by the court or an escrow agent approved by Landlord and the
                                         court.

 

		(b)	The
                                         sum of all amounts payable by Tenant to Landlord under this Lease constitutes reasonable
                                         compensation for the occupancy of the Premises by Tenant.

 

		(c)	Tenant
                                         or Trustee shall give Landlord at least 30 days written notice of any abandonment of
                                         the Premises or any proceeding relating to administrative claims. If Tenant abandons
                                         without notice, Tenant or Trustee shall stipulate to entry of an order for relief from
                                         stay to permit Landlord to reenter and re-let the Premises.

 

		(d)	If
                                         Tenant failed to timely and fully perform any of its obligations under this Lease before
                                         the filing of the Petition, whether or not Landlord has given Tenant written notice of
                                         that failure and whether or not any time period for cure expired before the filing of
                                         the Petition, Tenant shall be deemed to have been in default on the date the Petition
                                         was filed for all purposes under the Bankruptcy Code.

 

		(e)	For
                                         the purposes of Section 365(b)(1) of the Bankruptcy Code, prompt cure of defaults shall
                                         mean cure within 30 days after assumption.

 

    	 	29	 

     

    

 

		(f)	For
                                         the purposes of Section 365(b)(1) and 365(f)(2) of the Bankruptcy Code, adequate assurance
                                         of future performance of this Lease by Tenant, Trustee or any proposed assignee will
                                         require that Tenant, Trustee or the proposed assignee deposit three months of Base Rent
                                         and Additional Rent into an escrow fund (to be held by the court or an escrow agent approved
                                         by Landlord and the court) as security for such future performance. In addition, if this
                                         Lease is to be assigned, adequate assurance of future performance by the proposed assignee
                                         shall require that: (i) the assignee have a tangible net worth not less than the net
                                         worth of Tenant as of the Commencement Date or that such assignee's performance be unconditionally
                                         guaranteed by a person or entity that has a tangible net worth not less than the net
                                         worth of Tenant as of the Commencement Date; (ii) the assignee demonstrate that it possesses
                                         a history of success in operating a business of similar size and complexity in a similar
                                         market as Tenant's business; and (iii) assignee assume in writing all of Tenant's obligations
                                         relating to the Premises or this Lease.

 

		(g)	If
                                         Tenant or Trustee intends to assume and/or assign this Lease, Tenant or Trustee shall
                                         provide Landlord with 30 days written notice of the proposed action, separate from and
                                         in addition to any notice provided to all creditors. Notice of a proposed assumption
                                         shall state the assurance of prompt cure, compensation for loss and assurance of future
                                         performance to be provided to Landlord. Notice of a proposed assignment shall state:
                                         (i) the name, address, and federal tax identification and registration numbers of the
                                         proposed assignee; (ii) all of the terms and conditions of the proposed assignment, and
                                         (iii) the assignee's proposed adequate assurance of future performance to be provided
                                         to Landlord.

 

		(h)	If
                                         Tenant is in default under this Lease when the Petition is filed, Landlord shall not
                                         be required to provide Tenant or Trustee with services or supplies under this Lease or
                                         otherwise before Tenant assumes this Lease, unless Tenant compensates Landlord for such
                                         services and supplies in advance.

 

    	 	30	 

     

    

  

ARTICLE
15: ASSIGNMENT AND SUBLETTING

 

15.01
Prohibition

 

Tenant
shall not assign, mortgage, pledge or otherwise transfer or encumber this Lease, in whole or in part, nor sublet, assign, or permit
occupancy by any party other than Tenant of all or any part of the Premises, without the prior written consent of Landlord, which
may not be unreasonably withheld. Tenant shall at the time the Tenant requests the consent of Landlord, deliver to Landlord such
information in writing as Landlord may reasonably require respecting the proposed assignee or subtenant including, without limitation,
the name, address, nature of business, ownership, financial responsibility and standing of such proposed assignee or subtenant
and Landlord shall have not less than twenty (20) business days after receipt of all required information to elect one of the
following: (a) consent to such proposed assignment, encumbrance or sublease, or (b) refuse such consent. In addition, as a condition
to Landlord's consent to any assignment, sublease or encumbrance of this Lease shall be the delivery to Landlord of a true copy
of the fully executed instrument of assignment, transfer or encumbrance and an agreement executed by the assignee, sublessee or
other transferee in form and substance satisfactory to Landlord and expressly enforceable by Landlord, whereby the assignee assumes
and agrees to be bound by the terms and provisions of this Lease and perform all the obligations of Tenant hereunder with respect
to the assigned or subleased portion of the Premises. No assignment or subletting by Tenant shall relieve Tenant or Guarantor
of any obligation under this Lease, including Tenant’s obligation to pay Base Rent and Additional Rent hereunder. Any purported
assignment or subletting contrary to the provisions hereof without consent shall be void. The consent by Landlord to any assignment
or subletting shall not constitute a waiver of the necessity for such consent to any subsequent assignment of subletting. Tenant's
sole remedy for Landlord's refusal to consent to a proposed assignee or sublessee of Tenant will be an action or proceeding for
specific performance, injunction or declaratory relief. Tenant shall pay Landlord's reasonable processing costs and attorneys'
fees incurred in reviewing any proposed assignment or sublease.

 

15.02
Excess Rental

 

If
pursuant to any assignment or sublease, Tenant receives rent, either initially or over the Term of the assignment or sublease,
in excess of the Rent called for hereunder, or in the case of this sublease of a portion of the Premises in excess of such Rent
fairly allocable to such portion, after appropriate adjustments to assure that all other payments called for hereunder are appropriately
taken into account, Tenant shall pay to Landlord, as Additional Rent hereunder, fifty percent (50%) of the excess of each such
payment of rent received by Tenant after its receipt.

 

15.03
Scope

 

The
prohibition against assigning or subletting contained in this Article 15 shall be construed to include a prohibition
against any assignment or subletting by operation of law. If this Lease be assigned, or if the underlying beneficial interest
of Tenant is transferred, or if the Premises or any part thereof be sublet or occupied by anybody other than Tenant, Landlord
may collect Rent from the assignee, subtenant or occupant and apply the net amount collected to the Rent herein reserved and apportion
any excess Rent so collected in accordance with the terms of the immediately preceding paragraph, but no such assignment, subletting,
occupancy or collection shall be deemed a waiver of this covenant, or the acceptance of the assignee, subtenant or occupant as
tenant, or a release of Tenant from the further performance by Tenant of covenants on the part of Tenant herein contained. No
assignment or subletting shall affect the continuing primary liability of Tenant (which, following assignment, shall be joint
and several with the assignee), and Tenant shall not be released from performing any of the terms, covenants and conditions of
this Lease. 

    	 	31	 

     

    

 

15.04
Waiver

 

Notwithstanding
any assignment or sublease, or any indulgences, waivers or extensions of time granted by Landlord to any assignee or sublessee
or failure of Landlord to take action against any assignee or sublease, Tenant hereby agrees that Landlord may, at its option,
and upon not less than ten (10) days' notice to Tenant, proceed against Tenant without having taken action against or joined such
assignee or sublessee, except that Tenant shall have the benefit of any indulgences, waivers and extensions of time granted to
any such assignee or sublessee.

 

15.05
Change in Control

 

Tenant
is a limited liability company, a withdrawal of or change in general partners or members, in one or more transfers, owning more
than a fifty one percent (51%) interest and less than a one hundred percent interest (100%) in the LLC to a single party and/or
its affiliates, shall constitute a voluntary assignment and shall be subject to the provisions of this Article 15.
If the Tenant is a corporation, a transfer of fifty one percent (51%) or more and less than one hundred percent (100%) of
the corporation's stock or assets in one or more transfers to a single party and/or its affiliates, or a change in the control
of such company pursuant to a merger, consolidation, sale of assets or otherwise of more than fifty one percent and less than
one hundred percent to a single party and/or its affiliates, shall be deemed for the purposes hereof to be an assignment of this
Lease, and shall be subject to the provisions of this Article 15.

 

ARTICLE
16: ESTOPPEL CERTIFICATE, ATTORNMENT AND SUBORDINATION

 

16.01
Estoppel Certificate

 

Within
ten (10) business days after request therefor by Landlord, or if on any sale, assignment or hypothecation by Landlord of Landlord's
interest in the Property, the Project and/or the Premises, or any part thereof, an estoppel certificate shall be required from
Tenant, Tenant shall deliver to the requesting party a statement in writing: (a) certifying that the Lease is unmodified and in
full force and effect or, if modified, stating the nature of such modification and certifying that the Lease, as so modified,
is in full force and effect; (b) certifying the dates to which the Rent and other charges are paid in advance, if any; and (c)
acknowledging that there are not, to such party's knowledge, any uncured defaults on the part of the requesting party hereunder,
or specifying such defaults if they are claimed. Any such statement may be relied upon by any prospective purchaser or lender
of all or any portion of the Premises or any leasehold interest therein. The failure to deliver such statement within such time
shall, at Landlord’s option be an Event of Default hereunder and shall be conclusive and binding upon the party upon whom
the request is made that: (i) the Lease is in full force and effect, without modification except as may be represented by the
requesting party; (ii) there are no uncured defaults on the requesting party's performance; and (iii) no Rent has been paid in
advance. If Tenant is required or requested to execute more than one estoppel certificate or similar document in any twelve (12)
month period, Landlord shall reimburse Tenant for its legal fees incurred in having such documents reviewed, up to a total charge
of five hundred dollars ($500.00). 

    	 	32	 

     

    

 

16.02
Attornment

 

Tenant
shall, in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the power of sale under,
any mortgage or deed of trust made by Landlord, its successors or assigns, encumbering the Premises or the Building, or any part
thereof or in the event of termination of a ground lease, if any, and if so requested, attorn to the purchaser upon such foreclosure
or sale or upon any grant of a deed in lieu of foreclosure and recognize such purchaser as Landlord under this Lease; provided,
that such purchaser recognizes Tenant's rights under this Lease and agrees not to disturb Tenant's quiet possession of the Premises
for so long as Tenant is not in default hereunder.

 

16.03
Subordination

 

The
rights of Tenant hereunder are and shall be, at the election of any mortgagee or the beneficiary of a deed of trust encumbering
the Project (or the portion thereof on which the Building is located) and/or Building, subject and subordinate to the lien of
such mortgage or deed of trust, or the lien resulting from any other method of financing or refinancing, now or hereafter in force
against the Project (or the portion thereof on which the Building is located) and/or the Building, and to all advances made or
hereafter to be made upon the security thereof. If requested, Tenant agrees to execute such documentation as may be required by
Landlord or its lender to further effect the provisions of this Article 16 in such form as reasonably requested
by Landlord or its Lender.

 

16.04
Recording

 

Tenant
covenants and agrees with Landlord that Tenant shall not record this Lease or any memorandum thereof without Landlord's prior
written consent. Notwithstanding the provisions of Section 16.04, in the event that Landlord or its lender requires
this Lease or a memorandum thereof to be recorded in priority to any mortgage, deed of trust or other encumbrance which may now
or at any time hereafter affect in whole or in part the Building, the Project (or the portion thereof on which the Building is
located), and whether or not any such mortgage, deed of trust or other encumbrance shall affect only the Building, the Project
(or the portion thereof on which the Building is located), or shall be a blanket mortgage, deed of trust or encumbrance affecting
other premises as well, the Tenant covenants and agrees with Landlord that the Tenant shall execute promptly upon request from
Landlord any certificate, priority agreement or other instrument which may from time to time be requested to give effect thereto.

 

    	 	33	 

     

    

 

ARTICLE
17: MISCELLANEOUS

 

17.01
Notices

 

Any
and all notices, consents or other communications provided for herein shall be given in writing and delivered by hand or registered
or certified mail addressed to the Landlord at the address provided in Section 1.01. Any and all notices, consents
or other communications provided for herein shall be given in writing and delivered by hand or registered or certified mail addressed
to the Tenant at the address provided in Section 1.01, or to such other address as Tenant or Landlord may designate
by written notice to the other. Notices shall be deemed sufficiently served upon the earlier of actual receipt or the expiration
of three (3) days after the date of mailing thereof, or if a party can conclusively show that actual receipt occurred by others
means such as an email that was replied to with the original email text retained or by other method that conclusively demonstrates
actual receipt, then notice shall be deemed properly delivered.

 

17.02
Successors Bound

 

This
Lease and each of its covenants and conditions shall be binding upon and shall inure to the benefit of the parties hereto and
their respective assignees, subject to the provisions hereof. Whenever in this Lease a reference is made to Landlord, such reference
shall be deemed to refer to the person in whom the interest of Landlord shall be vested, and Landlord shall have no obligation
hereunder as to any claim arising after the transfer of its interest in the Building. Any successor or assignee of the Tenant
who accepts an assignment of the benefit of this Lease and enters into possession or enjoyment hereunder shall thereby assume
and agree to perform and be bound by the covenants and conditions thereof. Nothing herein contained shall be deemed in any manner
to give a right of assignment without the prior written consent of Landlord pursuant to, or otherwise as provided in, Article
15 hereof.

 

17.03
Waiver

 

No
waiver of any default or breach of any covenant by either party hereunder shall be implied from any omission by either party to
take action on account of such default if such default persists or is repeated, and no express waiver shall affect any default
other than the default specified in the waiver and said waiver shall be operative only for the time and to the extent therein
stated. Waivers of any covenant, term or condition contained herein by either party shall not be construed as a waiver of any
subsequent breach of the same covenant, term or condition. The consent or approval by either party to or of any act by either
party requiring further consent or approval shall not be deemed to waive or render unnecessary their consent or approval to or
of any subsequent similar acts.

 

17.04
Subdivision and Easements

 

Landlord
reserves the right to: (a) subdivide the Project; (b) alter the boundaries of the Project; and (c) grant easements on the Project
and dedicate for public use portions thereof; provided, however, that no such grant or dedication shall materially interfere with
Tenant's use of the Premises. Tenant hereby consents to such subdivision, boundary revision, and/or grant or dedication of easements
and agrees from time to time, at Landlord's request, to execute, acknowledge and deliver to Landlord, in accordance with Landlord's
instructions, any and all documents, instruments, maps or plats necessary to effectuate Tenant's consent thereto.

 

    	 	34	 

     

    

  

17.05
Landlord's Reserved Rights in Common Areas

 

Landlord
reserves the right from time to time, provided that Tenant's use and enjoyment of the Premises is not materially and adversely
affected thereby, to: (a) install, use, maintain, repair and replace pipes, ducts, conduits, wires and appurtenant meters and
equipment for service to the Premises or other parts of the Building above the ceiling surfaces, below the floor surfaces, within
the walls and in the central core areas, and to relocate any pipes, ducts, conduit, wires and appurtenant meters in the Building
which are located or located elsewhere outside the Building; (b) make changes to the Common Areas and/or the parking facilities
located thereon, including, without limitation, changes in the location, size, shape and number of driveways, entrances, parking
spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas and walkways; (c)
close temporarily all or any portion of the Common Areas and/or the Building in order to perform any of the foregoing or any of
Landlord's obligations under this Lease, so long as reasonable access to the Building remains available during normal business
hours; and (d) alter, relocate or expand, and/or to add additional structures and improvements to, or remove same from, all or
any portion of the Common Areas or other portions of the Project.

 

17.06
Accord and Satisfaction

 

No
payment by Tenant or receipt by Landlord of a lesser amount than the Rent herein stipulated shall be deemed to be other than on
account of the Rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Rent
be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover
the balance of such Rent or pursue any other remedy provided in this Lease unless agreed upon in writing or electronic writing
between the parties.

 

17.07
Limitation of Landlord's and Tenant's personal liabilities

 

The
obligations of Landlord and Tenant under this Lease do not constitute personal obligations of the individual partners, directors,
officers, members, employees or shareholders of each respective party or their partners, and each party shall look solely to the
named entities on this lease, and the rents and profits therefrom, for satisfaction of any liability in respect to this Lease
and will not seek recourse against the individual partners, directors, officers, members, employees or shareholders of either
party, or their partners or any of their personal assets for such satisfaction unless otherwise expressly provided or committed
to by either party. Nothing herein shall abrogate the rights of any party to pursue any other party for a tort action committed
that party him or herself.

 

17.08
Survival

 

The
obligations and liabilities of each party which are incurred or accrue prior to the expiration of this Lease or the termination
of this Lease or of Tenant's right of possession shall survive such expiration or termination, as shall all provisions by which
a party is to provide defense and indemnity to the other party, all provisions waiving or limiting the liability of Landlord,
and all attorneys' fees provisions.

  

    	 	35	 

     

    

  

17.09
Attorneys' Fees

 

In
the event either party requires the services of an attorney in connection with enforcing the terms of this Lease or in the event
suit is brought for the recovery of any Rent due under this Lease or the breach of any covenant or condition of this Lease, or
for the restitution of the Premises to Landlord and/or eviction of Tenant during the Term of this Lease, or after the expiration
thereof, the substantially prevailing party will be entitled to a reasonable sum for attorneys' fees, witness fees and other court
costs, both at trial and on appeal.

 

17.10
Captions and Article Numbers

 

The
captions, article, paragraph and Section numbers and table of contents appearing in this Lease are inserted only as a matter of
convenience and in no way define, limit, construe or describe the scope or intent or such Sections or articles of this Lease nor
in any way affect this Lease.

 

17.11
Severability

 

If
any Term, covenant, condition or provision of this Lease, or the application thereof to any person or circumstance, shall to any
extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants,
conditions or provisions of this Lease, or the application thereof to any person or circumstance, shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.

 

17.12
Governing Law, Dispute Resolution and Venue

 

This
Lease shall be construed in accordance with the laws of the State of Arizona. In the event of any dispute, venue shall be the
state court located in Arizona.

 

In
the event a party is in breach of this Agreement and the failure of a party to cure said breach in a timely manner, pursuant to
this Agreement, to the other party’s satisfaction within the period set forth herein, the other party or parties, in addition
to and not in limitation of any other rights and remedies available to such other party or parties at law or in equity, shall
have the right to seek injunctive relief and/or the appointment of a receiver. 

 

The
forgoing notwithstanding, the parties hereby agree to attempt to resolve all differences among themselves by non-binding mediation.
In the event of a dispute, either party may demand mediation (a settlement conference). If the parties fail to agree upon a mediator
within five (5) business days of demand for mediation, either party may petition the Maricopa County Superior Court in Arizona
for the appointment of a mediator. If the dispute is not resolved by agreement of all parties within thirty (30) calendar days
of the appointment of a mediator, or within forty-five (45) days after the written request for mediation is transmitted to the
other party, either party may commence arbitration. The parties shall split the mediator’s fee.

    	 	36	 

     

    

 

If
mediation is not timely commenced or fails, all disputes among the parties to this Agreement shall be settled by binding arbitration,
by one arbitrator, according to the Arizona Revised Statutes and the Arizona Rules of Civil Procedure. If the parties cannot unanimously
agree upon an arbitrator, any person or entity involved in the dispute may petition the Maricopa County Superior Court for the
appointment of an arbitrator. The parties to the arbitration shall split the arbitrator’s fees equally. The arbitrator’s
decision shall be final and binding and may be enforced according to the Uniform Arbitration Act and/or enforced in any court
of competent jurisdiction. The arbitrator may award injunctive relief and may award attorney fees and/or costs to the prevailing
party or parties.

 

17.13
Submission of Lease

 

The
submission of this document for examination and negotiation does not constitute an offer to lease, or a reservation of or option
for leasing the Premises. This document shall become effective and binding only upon execution and delivery hereof by Landlord
and Tenant. No act or omission of any officer, employee or agent of Landlord or Tenant shall alter, change or modify any of the
provisions hereof.

 

17.14
Holding Over

 

Should
Tenant, or any of its successors in interest, hold over the Premises or any part thereof after the expiration or earlier termination
of this Lease without Landlord's prior written consent, such holding over shall constitute and be construed as tenancy at sufferance
only, at a monthly rent equal to two hundred percent (200%) of the Base Rent payable for the final month of the Term of this Lease
and otherwise upon the terms and conditions in the Lease, so far as applicable. Should Tenant, or any of its successors in interest,
hold over the Premises or any part thereof after the expiration or earlier termination of this Lease with Landlord's prior written
consent, such holding over shall constitute and be construed as a tenancy from month to month only, at a fair market monthly rent
as agreed by Landlord and Tenant and otherwise upon the terms and conditions of this Lease, so far as applicable. The acceptance
by Landlord of Rent after such expiration or early termination shall not result in a renewal or extension of this Lease. The foregoing
provisions of this Section 17.14 are in addition to and do not affect Landlord's right of re-entry or any other rights of Landlord
hereunder or as otherwise provided by law. If Tenant fails to surrender the Premises on the expiration of this Lease and/or to
remove all Tenant's fixture and/or personal property pursuant to Section 9.01 hereof, Tenant shall indemnify and hold Landlord
harmless for, from and against all claims, damages, loss or liability, including without limitation, any claim made by any succeeding
tenant resulting from such failure to surrender by Tenant and any attorneys' fees and costs incurred by Landlord with respect
to any such claim.

 

    	 	37	 

     

    

 

17.15
Parking

 

Tenant
shall have the right to use parking spaces or parking areas near or adjacent to the Building that are from time to time designated
by Landlord for the use of Tenant and its employees. All such parking shall be on a nonexclusive, non-assigned basis. Tenant shall
not use or permit its employees or invitees to use any spaces which have been specifically reserved by Landlord to other tenants
or for such other uses as have been designated by appropriate governmental entities as being restricted to certain uses. Tenant
shall at all times comply and cause its employees and invitees to comply with any parking rules and regulations as Landlord may
from time to time reasonably adopt. At no time will Tenant use any parking spaces for storage or containers of any type or description.
Landlord assumes no liability or risk for any damage that may occur to the automobile or other property of Tenant, its employees,
customers or others in any parking area or Common Area of the Project.

 

17.16
Quiet Enjoyment

 

Tenant,
on performing the covenants and observing the conditions of this Lease, at all times during the term shall have the peaceable
enjoyment of the Premises without hindrance or disturbance by Landlord or any person claiming through or under it or any person
having or claiming paramount title; provided that during the Term Landlord shall be permitted to store at the Premises, in an
area of the Premises mutually agreed upon by Landlord and Tenant prior to the Commencement Date exclusively reserved to and freely
accessed by Landlord without prior notice to Tenant, motors and related equipment.

 

17.17
Broker; Agency Disclosure

 

Each
of Tenant and Landlord warrant that it has had no discussions, negotiations and/or other dealings with any real estate broker
or agent in connection with the negotiation of this Lease other than the Broker(s) identified in Section 1.01 ("Brokers"),
and that it knows of no other real estate broker or agent who is or may be entitled to any commission or finder's fee in connection
with this Lease. Each of Tenant and Landlord agrees to indemnify the other and hold the other harmless from and against any and
all claims, demands, losses, liabilities, lawsuits, judgments, costs and expenses (including without limitation, attorneys' fees
and costs) with respect to any leasing commission or equivalent compensation alleged to be owing on account of such party's discussions,
negotiations and/or dealings with any real estate broker or agent. This Section 17.17 is not intended to benefit
any third parties and shall not be deemed to give any rights to brokers or finders. No commission(s) or finders fee(s) shall be
paid to Tenant, employee(s) of Tenant or any unlicensed representative of Tenant.

 

17.18
Landlord's Right to Perform

 

Upon
Tenant's failure to perform any obligation of Tenant hereunder after notice from Landlord pursuant to Article 13
above (if notice is required pursuant to Article 13 above), including without limitation, the Tenant's failure to
pay Tenant's insurance premiums, charges of contractors who have supplied materials or labor to the Premises, etc. Landlord shall
have the right to perform such obligation of Tenant on behalf of Tenant and/or to make payment on behalf of Tenant to such parties.
Tenant shall reimburse Landlord the reasonable cost of Landlord's performing such obligation on Tenant's behalf, including reimbursement
of any amounts that may be expended by Landlord, plus interest at the Default Rate, as Additional Rent.

 

    	 	38	 

     

    

  

17.19
Assignment by landlord

 

Landlord
may freely sell, assign or otherwise transfer all or any portion of its interest under this Lease or in the Premises or in the
building or the land that comprise the Premises, and in the event of any such transfer, the party originally executing this Lease
as Landlord, and any successor or affiliate of such party, shall be relieved of any and all of its obligations under this Lease
from and after the date of such transfer, provided that Landlord is not in default of this Lease at the time of transfer. Tenant
shall thereafter be bound to the transferee with the same effect as though the latter had been the original Landlord hereunder,
provided that the transferee assumes and agrees to carry out all the obligations of Landlord hereunder. In the event of a sale,
conveyance, or other transfer by Landlord of the Building, the Project, or portion thereof on which the Building is located, or
the Project or in the event of an assignment of this Lease by Landlord, the same shall operate to release Landlord from any further
liability upon any of the covenants or conditions, express or implied, herein contained on the part of Landlord, and from any
and all further liability, obligations, costs and expenses, demands, causes of action, claims or judgments arising out of this
Lease from and after the effective date of said release, except in regards to any prepaid rent and/or security deposit held by
the landlord, which, without tenant's consent, Landlord shall remain liable to Tenant unless the new landlord has actually deposited
such funds in a trust account for Tenant's benefit. In such event, Tenant agrees to look solely to the successor in interest of
transferor. If any Security Deposit is given by Tenant to secure performance of Tenant's covenants hereunder, Landlord may transfer
such Security Deposit to any purchaser and thereupon Landlord shall be discharged from any further liability in reference thereto.
Notwithstanding anything in this Lease to the contrary, however, (i) in no event shall Landlord's lender, who may have succeeded
to the interest of Landlord by foreclosure, deed in lieu of foreclosure, or any other means, have any liability for any obligation
of Landlord to protect, defend, indemnify or hold harmless Tenant or any other person or entity except for those matters arising
from the lender's breach of the terms of this Lease after the date of such foreclosure, deed in lieu of foreclosure or any other
means, and (ii) such succeeding lender shall have no liability for any representations or warranties of the Landlord contained
herein except for those matters arising from the lender's breach of the terms of this Lease after the date of such foreclosure,
deed in lieu of foreclosure or any other means.

 

17.20
Entire Agreement

 

This
Lease sets forth all covenants, promises, agreements, conditions and understandings between Landlord and Tenant concerning the
Building and the Project, and there are no covenants, promises, agreements, conditions or understandings, either oral or written,
between Landlord and Tenant other than as are herein set forth. No subsequent alteration, amendment, change or addition to the
Lease shall be binding upon Landlord or Tenant unless reduced to writing and signed by Landlord and Tenant. 

 

    	 	39	 

     

    

 

17.21
Guarantor

 

Tenant's
obligations under this Lease are guaranteed by the Guarantor(s) identified in Exhibit E of this lease ("Guarantor"),
to be evidenced by an instrument of guaranty. This Lease is not effective until such instrument has been executed and delivered
by Guarantor(s) to Landlord.

 

17.22
Exhibits

 

Exhibits
A through Exhibits E and any additional Exhibits added and attached to this Lease are by this reference
incorporated herein.

 

17.23
Time

 

Time
is of the essence with respect to the performance of every provision of this Lease in which time of performance is a factor.

 

17.24
Prior Agreement or Amendment

 

This
Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in the Lease, and no
prior agreement or understanding pertaining to any such matter shall be effective for any purpose. No provisions of this Lease
may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors-in-interest.

 

17.25
Excused Delays

 

Except
as otherwise set forth in this Section 17.26, neither party shall have liability to the other on account of the
following acts (each of which is an "Excused Delay" and jointly all of which are "Excused Delays")" which
shall include: (a) the inability to fulfill, or delay in fulfilling, any obligations under this Lease by reason of strike, lockout,
other labor trouble, dispute or disturbance; (b) governmental regulation, moratorium, action, preemption or priorities or other
controls of general application; (c) shortages of fuel, supplies or labor; (d) any failure or defect in the supply, quantity or
character of electricity or water furnished to the Premises by reason of any requirement, act or omission of the public utility
or others furnishing the Building with electricity or water; or (e) for any other reason, whether similar or dissimilar to the
above, or for act of God beyond a party's reasonable control. If this Lease specifies a time period for performance of an obligation
of a party, that time period shall be extended by the period of any delay in the party's performance caused by any of the events
of Excused Delay described herein; provided, that notwithstanding anything to the contrary above, no payment of money (whether
as Base Rent, Additional Rent, or any other payment due under this Lease) shall be postponed, delayed or forgiven by reason of
any of the foregoing events of Excused Delay.

 

    	 	40	 

     

    

 

17.26
Authority to Bind Tenant

 

The
individuals signing this Lease on behalf of Tenant hereby represent and warrant that they are empowered and duly authorized to
bind Tenant to this Lease. If Tenant is a corporation, limited liability company or limited or general partnership, each individual
executing this Lease on behalf of Tenant represents and warrants that he or she is duly authorized to execute and deliver this
Lease on behalf of Tenant, in accordance with a duly adopted resolution or consents of all appropriate persons or entities required
therefor and in accordance with the formation documents of tenant, and that this Lease is binding upon Tenant in accordance whit
its terms. Simultaneously with execution of this Lease, Tenant shall deliver to Landlord a copy of the appropriate resolution
or consent, certified by an appropriate officer, partner or manager of Tenant, authorizing or ratifying the execution of this
Lease.

 

17.27
Interpretation

 

The
parties hereto specifically acknowledge and agree that the terms of this Lease have been mutually negotiated and the parties hereby
specifically waive the rule or principle of contract construction which provides that any ambiguity in any term or provision of
a contract will be interpreted or resolved against the party which drafted such term or provision.

 

17.28
Patriot Act Compliance

 

		(a)	Tenant
                                         represents and warrants to, and covenants with Landlord that neither Tenant nor any of
                                         its respective constituent owners or affiliates currently are, or shall be at any time
                                         during the Term hereof, in violation of any laws relating to terrorism or money laundering
                                         (collectively, the "Anti-Terrorism laws"), including without limitation, Executive
                                         Order No. 13224 on Terrorist Financing, effective September 24, 2001,and relating to
                                         Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit,
                                         or Support Terrorism (the "Executive Order") and/or the Uniting and Strengthening
                                         America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
                                         of 2001 (Public Law 107-56) (the "IJSA Patriot Act"). Because of the nature
                                         of the project, both parties agree that if tenant is in compliance with Arizona State
                                         Law regarding the growing, processing and sale of marijuana, then Tenant will not be
                                         considered in breach of the above mentioned laws with regards to this lease agreement
                                         as long as the purported breach was an act wholly compliant with Arizona State Law and
                                         in no way related to furthering criminal enterprises/terrorism as originally intended
                                         by the acts described.

  

    	 	41	 

     

    

 

		(b)	Tenant
                                         covenants with Landlord that neither Tenant nor any of its respective constituent owners
                                         or affiliates is or shall be during the Term hereof a "Prohibited Person,"
                                         which is defined as follows: (i) a person or entity that is listed in the Annex to, or
                                         is otherwise subject to, the provisions of the Executive Order; (ii) a person or entity
                                         owned or controlled by, or acting for or on behalf of, any person or entity that is listed
                                         in the Annex to, or is otherwise subject to the provisions of, the Executive Order; (iii)
                                         a person or entity with whom Landlord is prohibited from dealing with or otherwise engaging
                                         in any transaction by any Anti-Terrorism Law, including without limitation the Executive
                                         Order and the USA Patriot Act; (iv) a person or entity who commits, threatens or conspires
                                         to commit or support "terrorism" as defined in Section 3(d) of the Executive
                                         Order; (v) a person or entity that is named as a "specially designated national
                                         and blocked person" on the then-most current list published by the U.S. Treasury
                                         Department Office of Foreign Assets Control at its official website, http://www.treas.gov/offices/eotffc/ofac/sdn/tllsdn.pdf,
                                         or at any replacement website or other replacement official publication of such list;
                                         and (vi) a person or entity who is affiliated with a person or entity listed in items
                                         (i) through (v), above.
	 	 	 

		(c)	At
                                         any time and from time-to-time during the Term, Tenant shall deliver to Landlord, within
                                         ten (10) days after receipt of a written request therefor, a written certification or
                                         such other evidence reasonably acceptable to Landlord evidencing and confirming Tenant's
                                         compliance with this Section 17.28 at Landlord's expense, including legal
                                         costs for obtaining said documentation that is satisfactory to the request.

 

IN WITNESS
WHEREOF, the parties have executed this Lease as of the date first above written.

 

	LANDLORD:	 	TENANT:
	 	 	 	 	 
	Chino Valley Properties, LLC

	 	CCC Holdings, LLC
	 	 	 	 	 
	By	/s/ Bryan McLaren	 	By	/s/ Alan Abrams

	Its	

Duly Authorized Agent

	 	Its	Its Duly Authorized Agent 

 

    	 	42	 

     

    

TENANT'S
ACKNOWLEDGMENT

 

	STATE
OF ARIZONA	     )
	 	     ) SS.
	COUNTY
OF MARICOPA	 

 

I certify that I know or have satisfactory evidence that the person
appearing before me and making this acknowledgement is the person whose true signature appears on this document.

 

On this Date: August 6, 2015, before me personally appeared
Bryan McLaren, to me known to be the officer of Chino Valley Properties, the Corporation that executed the within
and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said limited liability
company, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument.

 

WITNESS my hand and official
seal hereto affixed the day and year first above written.

 

/s/ Brandon Baenke

  

[Type
or Print Notary Name]

 

/s/ Brandon Baenke

 

(Use
This Space for Notarial Seal Stamp)

 

[SEAL]

 

    	 	43	 

     

    

LANDLORD'S
ACKNOWLEDGEMENT  

 

	STATE
OF ARIZONA	 )
	 	 ) SS.
	COUNTY
OF MARICOPA	 

 

I certify that I know or have satisfactory evidence that the person
appearing before me and making this acknowledgement is the person whose true signature appears on this document.

 

On this Date: August 6, 2015, before me
personally appeared Alan Abrams, to me known to be the Authorized Agent of CCC
Holdings, LLC, the Corporation that executed the within and foregoing instrument, and acknowledged the said instrument to be
the free and voluntary act and deed of said limited liability company, for the uses and purposes therein mentioned, and on
oath stated that he was authorized to execute said instrument.

 

WITNESS
my hand and official seal hereto affixed the day and year first above written.

 

  

 /s/
Brandon Baenke

 

[Type
or Print Notary Name]

  

 /s/ Brandon Baenke

  

(Use
This Space for Notarial Seal Stamp)

 

[SEAL]

 

    	 	44	 

     

    

 

EXHIBIT
A: LEASE COMMENCEMENT 

 

Lease Agreement will commence as of August
1, 2015. The Landlord will waive the first month’s rent. The first rental payment and security deposit will be made on September
1, 2015.

 

    	 	45	 

     

    

 

EXHIBIT
B: RENTAL PAYMENT SCHEDULE  

 

 

    	 	46	 

     

    

 

EXHIBIT
C: PROPERTY SITE AND LEGAL DESCRIPTION  

 

	Parcel ID:	
        306-14-008-M

         

	Property Address:	
        2144 & 2148 N. Road 1 East

        Chino Valley, AZ 83462

         

	Building and Premises:	
        Chino Valley Cultivation Site; approximately
        10,000 square feet of completed Greenhouse and approximately 5,000 square feet of existing office & garage space existing within
        the currently fenced in area. Approximately 11 acres.

         

	Legal Description:	An irregular portion of the SE4 the SE parcel corner lying approximately 686'N and 50'W from the SE corner of said section 19

 

    	 	47	 

     

    

 

EXHIBIT
D: TENANT OPTION TO EXTEND LEASE TERM AND FIRST RIGHT 

 

OPTION
TO EXTEND. Tenant shall, provided the Lease is in full force and effect and Tenant is not in default under any of the terms and
conditions of the Lease at the time of notification or commencement, have two (2) options to extend this Lease for a term of five
(5) years as of the date the extension term is to commence, on the same terms and conditions set forth in the Lease, except as
modified by the terms, covenants and conditions as set forth below:

 

		(a)	If
                                         Tenant elects to exercise said option, then Tenant shall provide Landlord with written
                                         notice no earlier than the date which is 12 months (12) months prior to the expiration
                                         of the term of the Lease but no later than the date which is six (6) months prior to
                                         the expiration of the term of the Lease. If Tenant fails to provide such notice, Tenant
                                         shall have no further or additional right to extend or renew the term of the Lease.

		(b)	The
                                         Annual Rent in effect at the expiration of the term of the Lease shall be adjusted to
                                         reflect the current Base Rent plus 5% increase annually. 

		(c)	This
                                         option is not transferable; the parties hereto acknowledge and agree that they intend
                                         that the aforesaid option to extend this Lease shall be “personal” to Tenant
                                         as set forth above and that in no event will any assignee or sublessee have any rights
                                         to exercise the aforesaid option to extend. 

 

FIRST RIGHT. Landlord may not sell or
transfer the Property, except to an Affiliate of Landlord, unless Landlord has received a bona fide offer to purchase the Property
(whether solicited or not) and Landlord provides Tenant a right of first refusal to purchase the Property pursuant to the following
provisions of this Agreement.

 

		(a)	Landlord shall give Tenant at least thirty (30) days’ prior
written notice of any proposed sale of the Property. Such notice shall be accompanied by a copy of an executed, legally binding
purchase agreement (the “Third Party Purchase Agreement”) between Landlord and the proposed purchaser setting forth
the terms and conditions of such proposed sale. 

		(b)	Tenant shall have the right, but not the obligation, to cause Landlord
to sell the Property to it on the same terms as are described in the Purchase Agreement by notifying Landlord, within thirty (30)
days of the receipt of such notice, of its intention to purchase the Property and by executing and delivering to Landlord a purchase
contract for the purchase of the Property on the same terms and conditions as the Third Party Purchase Agreement, except that the
date for settlement of the purchase of the Property shall be either the settlement date set forth in the Third Party Purchase Agreement
or a date which is not less than ninety (90) days from the date of Landlord’s notice to Tenant of the Third Party Purchase
Agreement, whichever is later. 

		(c)	If Tenant does not give timely notice of its intention to purchase
the Property or, having given such notice, does not purchase the Property, Landlord may then sell the Property to the proposed
purchaser named in the Purchase Agreement on the terms set forth in the Purchase Agreement. If Landlord does not then sell and
convey the Property as provided for in the Purchase Agreement, any further transaction shall be deemed a new determination by Landlord
to sell and convey the Property and the provisions of this Article I shall be applicable thereto. 

		(d)	If Tenant purchases the Property pursuant to this Article I, this
Lease shall terminate on the date title vests in Tenant, and Landlord shall remit to Tenant all prepaid and unearned rent, and
any security deposit paid by Tenant pursuant to the Lease. 

		(e)	This right of first refusal shall remain in effect
for the entire term of this Lease and shall be applicable to any sale of the Property by the Landlord, its successors, or its assigns.

 

    	 	48	 

     

    

 

EXHIBIT
E: GUARANTY OF PAYMENT AND PERFORMANCE

 

The undersigned Guarantors
hereby unconditionally guaranty the full payment and performance of each and every term, covenant and condition of that certain
Commercial Lease Agreement by and between Chino Valley Properties, LLC, as Landlord, and CCC Holdings, LLC, as Tenant, to be performed
by Tenant including, but not limited to the payment of the monthly rent to Landlord and the performance of all obligations of Tenant
with regard to the “Premises” described in the Lease. The undersigned further agree that this Guaranty shall not be
released, diminished or otherwise affected by any assignment, subletting or transfer of the business at issue or the leased premises
or by the bankruptcy, reorganization or insolvency of Tenant or of any successor(s) or assignee(s) of Tenant or by the granting
of extensions of time by the owner(s) of the Premises at issue for performance of any of the terms and provisions of said Lease.

 

The
liability of the undersigned under this Guaranty shall be primary and, in any right of action which shall accrue to Landlord and/or
to its successors and/or assigns under said lease, Landlord and/or its successors and/or assigns, Landlord, its successors and/or
assigns may, at their option, proceed against the undersigned without having commenced any action against Tenant or against any
successors or assigns of Tenant. The undersigned agree to pay Landlord’s reasonable attorney fees, all reasonable costs
and all other reasonable expenses incurred in enforcing this Guaranty, regardless of whether a lawsuit is filed or contested.

 

The undersigned hereby
waive notice of any demand by Landlord, its successor and/or assigns, as well as any notice of default given to Tenant or to any
successor(s) or assign(s) of Tenant. The undersigned waive any right, statutory or otherwise, to be discharged from liability hereunder
by reason of Landlord=s failure, after demand from the undersigned, to bring suit against Tenant. The undersigned Guarantors or
assignee(s) of Tenant waive Landlord’s written acceptance of this Guaranty.

 

	________________________________	_____________________
	Alan Abrams, Individually	Date
	 	 
	SUBSCRIBED AND SWORN to before me this ____ day of.
	 	 
	 	______________________________
	 	Notary Public

 

	My commission expires:	 	 
	 	 	
	STATE OF ARIZONA	)	 
	 	) ss.	 
	County of Maricopa	)	 
	 	 	 

  

 

49

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