Document:

Document

Exhibit 4.3

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

General
The following description summarizes the most important terms of our securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, certain securities convertible into such registered securities, and some of the provisions of our restated certificate of incorporation, restated bylaws, and relevant provisions of Delaware General Corporate Law. The descriptions herein are qualified in their entirety by our restated certificate of incorporation and restated bylaws, each of which have been previously filed with the Securities and Exchange Commission (the “SEC”) and are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.3 is a part, as well as the relevant provisions of Delaware General Corporate Law.
Our authorized capital stock consists of: 
•1,000,000,000 shares of Class A common stock, $0.00001 par value per share, 
•500,000,000 shares of Class B common stock, $0.00001 par value per share, and 
•15,000,000 shares of undesignated preferred stock, $0.00001 par value per share. 
Class A Common Stock and Class B Common Stock 
We have two classes of authorized common stock, Class A common stock and Class B common stock. Only our Class A common stock is registered under Section 12 of the Securities Exchange Act of 1934, as amended, and trades on each of the New York Stock Exchange (the “NYSE”) and the Long-Term Stock Exchange (the “LTSE”) under the ticker symbol “ASAN.”
Dividend Rights 
Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our Class A common stock and Class B common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine. 
Voting Rights 
Holders of our Class A common stock are entitled to one vote per share, and holders of our Class B common stock are entitled to 10 votes per share, on all matters submitted to a vote of stockholders. The holders of our Class A common stock and Class B common stock will generally vote together as a single class on all matters submitted to a vote of our stockholders, unless otherwise required by Delaware law or our restated certificate of incorporation. Delaware law could require either holders of our Class A common stock or Class B common stock to vote separately as a single class in the following circumstances: 
•if we were to seek to amend our restated certificate of incorporation to increase or decrease the par value of a class of our capital stock, then that class would be required to vote separately to approve the proposed amendment; and 
•if we were to seek to amend our restated certificate of incorporation in a manner that alters or changes the powers, preferences, or special rights of a class of our capital stock in a manner that affected its holders adversely, then that class would be required to vote separately to approve the proposed amendment. 
Our restated certificate of incorporation and restated bylaws established a classified board of directors that is divided into three classes with staggered three-year terms. Only the directors in one class will be subject to election by a plurality of the votes cast at each annual meeting of our stockholders, with the directors in the other classes continuing for the remainder of their respective three-year terms. Our restated certificate of incorporation does not provide for cumulative voting for the election of directors. 

Conversion 
Each outstanding share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon any transfer, whether or not for value, except for certain permitted transfers, as described below and further described in our restated certificate of incorporation. Once converted into Class A common stock, the Class B common stock will not be reissued. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon the earlier of (i) the date that is specified by the affirmative vote of the holders of two-thirds of the then-outstanding shares of Class B common stock, (ii) one year after the death or permanent disability of Mr. Moskovitz, or (iii) the later of the date that is (x) September 2030 and (y) the date that Mr. Moskovitz no longer serves as our Chief Executive Officer or as a member of our board of directors. 
A transfer of Class B common stock will not trigger an automatic conversion of such stock to Class A common stock if it is a permitted transfer. A permitted transfer is a transfer by a holder of Class B common stock to any of the persons or entities listed in clauses (i) through (v) below, each referred to herein as a Permitted Transferee, and from any such Permitted Transferee back to such holder of Class B common stock and/or any other Permitted Transferee established by or for such holder of Class B common stock: (i) to a trust for the benefit of the holder of Class B common stock and over which such holder of Class B common stock retains sole dispositive power and voting control, provided the holder of Class B common stock does not receive consideration in exchange for the transfer (other than as a settlor or beneficiary of such trust); (ii) to a trust for the benefit of persons other than the holder of Class B common stock so long as the holder of Class B common stock retains sole dispositive power and voting control, provided the holder of Class B common stock does not receive consideration in exchange for the transfer (other than as a settlor or beneficiary of such trust); (iii) to a trust under the terms of which such holder of Class B common stock has retained a “qualified interest” within the meaning of §2702(b)(1) of the Internal Revenue Code of 1986, as amended, or the Code, and/or a reversionary interest so long as the holder of Class B common stock retains sole dispositive power and exclusive voting control with respect to the shares of Class B common stock held by such trust; (iv) to an Individual Retirement Account, as defined in Section 408(a) of the Code, or a pension, profit sharing, stock bonus, or other type of plan or trust of which such holder of Class B common stock is a participant or beneficiary and which satisfies the requirements for qualification under Section 401 of the Code, so long as such holder of Class B common stock retains sole dispositive power and exclusive voting control with respect to the shares of Class B common stock held in such account, plan, or trust; (v) to a corporation, partnership, or limited liability company in which such holder of Class B common stock directly, or indirectly, retains sole dispositive power and exclusive voting control with respect to the shares of Class B common stock held by such corporation, partnership, or limited liability company; or (vi) to a trust or private non-operating organization that is tax-exempt under Section 501(c)(3) of the Code, so long as the holder of Class B common stock has shared dispositive power and shared voting control with respect to the shares of Class B common stock held by such trust or organization and the transfer to such trust does not involve any payment of cash, securities, property, or other consideration (other than an interest in such trust or organization) to the holder of Class B common stock. 
No Preemptive or Similar Rights 
Our Class A common stock and Class B common stock are not entitled to preemptive rights and are not subject to conversion (except as noted above), redemption, or sinking fund provisions. 
Right to Receive Liquidation Distributions 
If we become subject to a liquidation, dissolution, or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our Class A common stock and Class B common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock. 
Fully Paid and Non-Assessable 
All of the outstanding shares of our Class A common stock and Class B common stock are fully paid and non-assessable.

Preferred Stock 
Under the terms of our restated certificate of incorporation, our board of directors has the authority, without further action by our stockholders, to issue up to 15,000,000 shares of preferred stock in one or more series, to establish from time to time the number of shares to be included in each such series, to fix the dividend, voting, and other rights, preferences, and privileges of the shares of each series and any qualifications, limitations, or restrictions thereon, and to increase or decrease the number of shares of any such series, but not below the number of shares of such series then outstanding. 
Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of Class A common stock and Class B common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in control of our company and may adversely affect the market price of our Class A common stock and the voting and other rights of the holders of Class A and Class B common stock. No shares of preferred stock are outstanding.
Registration Rights 
We are party to an amended and restated investors’ rights agreement that provides that certain holders of our preferred stock have certain registration rights as set forth below. The registration of shares of our Class A common stock by the exercise of registration rights described below would enable the holders to sell these shares without restriction under the Securities Act when the applicable registration statement is declared effective. We will pay the registration expenses, other than underwriting discounts and commissions, of the shares registered by the demand, piggyback, and Form S-3 registrations described below. 
The registration rights set forth in the amended and restated investors’ rights agreement will expire five years following the listing of our Class A common stock on the NYSE, or, with respect to any particular stockholder, when such stockholder is able to sell all of its shares pursuant to Rule 144(b)(1)(i) of the Securities Act or holds 1% or less of our common stock and is able to sell all of its Registrable Securities, as defined in the amended and restated investors’ rights agreement, without registration pursuant to Rule 144 of the Securities Act during any three-month period. We will pay the registration expenses (other than underwriting discounts and selling commissions) of the holders of the shares registered pursuant to the registrations described below, including the reasonable fees of one counsel for the selling holders. In an underwritten offering, the underwriters have the right, subject to specified conditions, to limit the number of shares such holders may include. 
Demand Registration Rights
The holders of a majority of the registrable securities outstanding may request that we register all or a portion of their shares. We are obligated to effect only two such registrations. Such request for registration must cover shares with an anticipated aggregate offering price, net of underwriting discounts and commissions, of at least $15.0 million.
Piggyback Registration Rights
In the event that we propose to register any of our securities under the Securities Act, either for our own account or for the account of other security holders, the holders of the registrable securities will be entitled to certain piggyback registration rights allowing the holder to include their shares in such registration, subject to certain marketing and other limitations. As a result, whenever we propose to file a registration statement under the Securities Act, other than with respect to (1) a registration relating solely to the sale of securities to participants in our stock plan, (2) a registration relating to a transaction covered by Rule 145 under the Securities Act, (3) a registration in which the only stock being registered is common stock upon conversion of debt securities also being registered, or (4) any registration on any form which does not include substantially the same information as would be required to be included in a registration statement covering the sale of registrable securities, the holders of these shares are entitled to notice of the registration and have the right to include their shares in the registration, subject to limitations that the underwriters may impose on the number of shares included in the offering.
Form S-3 Registration Rights

The holders of at least 30% of the registrable securities outstanding can make a request that we register their shares on Form S-3 if we are qualified to file a registration statement on Form S-3 and if the reasonably anticipated aggregate gross proceeds of the shares offered would equal or exceed $10.0 million. We will not be required to effect more than two registrations on Form S-3 within any 12-month period.
Anti-Takeover Effects of Delaware Law and Our Certificate of Incorporation and Bylaws 
Some provisions of Delaware law, our restated certificate of incorporation, and our restated bylaws contain provisions that could make the following transactions more difficult: an acquisition of us by means of a tender offer; an acquisition of us by means of a proxy contest or otherwise; or the removal of our incumbent officers and directors. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best interests, including transactions which provide for payment of a premium over the market price for our shares. 
These provisions, summarized below, are intended to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of the increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging these proposals because negotiation of these proposals could result in an improvement of their terms. 
Stockholder Meetings 
Our restated bylaws provide that a special meeting of stockholders may be called only by our chairperson of the board, chief executive officer, the lead independent director, or by a resolution adopted by a majority of our board of directors. 
Requirements for Advance Notification of Stockholder Nominations and Proposals 
Our restated bylaws establish advance notice procedures with respect to stockholder proposals to be brought before a stockholder meeting and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. 
Elimination of Stockholder Action by Written Consent 
Our restated certificate of incorporation and restated bylaws eliminate the right of stockholders to act by written consent without a meeting. 
Staggered Board 
Our board of directors is divided into three classes. The directors in each class will serve for a three-year term, one class being elected each year by our stockholders. This system of electing and removing directors may tend to discourage a third-party from making a tender offer or otherwise attempting to obtain control of us, because it generally makes it more difficult for stockholders to replace a majority of the directors. 
Removal of Directors 
Our restated certificate of incorporation provides that no member of our board of directors may be removed from office by our stockholders except for cause and, in addition to any other vote required by law, upon the approval of not less than two-thirds of the total voting power of all of our outstanding voting stock then entitled to vote in the election of directors. 

Stockholders Not Entitled to Cumulative Voting 
Our restated certificate of incorporation does not permit stockholders to cumulate their votes in the election of directors. Accordingly, the holders of a majority of the outstanding shares of our common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they choose, other than any directors that holders of our preferred stock may be entitled to elect. 

Delaware Anti-Takeover Statute 
We are subject to Section 203 of the Delaware General Corporation Law, which prohibits persons deemed to be “interested stockholders” from engaging in a “business combination” with a publicly held Delaware corporation for three years following the date these persons become interested stockholders unless the business combination is, or the transaction in which the person became an interested stockholder was, approved in a prescribed manner or another prescribed exception applies. Generally, an “interested stockholder” is a person who, together with affiliates and associates, owns, or within three years prior to the determination of interested stockholder status did own, 15% or more of a corporation’s voting stock. Generally, a “business combination” includes a merger, asset, or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. The existence of this provision may have an anti-takeover effect with respect to transactions not approved in advance by our board of directors. 
Choice of Forum 
Our restated certificate of incorporation provides that the Court of Chancery of the State of Delaware is the exclusive forum for the following types of actions or proceedings under Delaware statutory or common law: (1) any derivative action or proceeding brought on our behalf; (2) any action asserting a claim of breach of a fiduciary duty or other wrongdoing by any of our directors, officers, or employees to us or our stockholders; (3) any action asserting a claim against us or our stockholders arising pursuant to any provision of the General Corporation Law of the State of Delaware or our certificate of incorporation or bylaws; (4) any action to interpret, apply, enforce, or determine the validity of our certificate of incorporation or bylaws; (5) any action as to which the Delaware General Corporation Law confers jurisdiction to the Court of Chancery of the State of Delaware; or (6) any action asserting a claim governed by the internal affairs doctrine. The provisions would not apply to suits brought to enforce a duty or liability created by the Securities Act, the Exchange Act, or any other claim for which the U.S. federal courts have exclusive jurisdiction. Furthermore, Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all such Securities Act actions. Accordingly, both state and federal courts have jurisdiction to entertain such claims. To prevent having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts, among other considerations, our restated certificate of incorporation provides that the federal district courts of the United States of America will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act. 
While the Delaware courts have determined that such choice of forum provisions are facially valid, a stockholder may nevertheless seek to bring a claim in a venue other than those designated in the exclusive forum provisions. In such instance, we would expect to vigorously assert the validity and enforceability of the exclusive forum provisions of our restated certificate of incorporation. This may require significant additional costs associated with resolving such action in other jurisdictions and there can be no assurance that the provisions will be enforced by a court in those other jurisdictions. 
Amendment of Charter Provisions 
The amendment of any of the above provisions, except for the provision making it possible for our board of directors to issue preferred stock, would require approval by holders of at least two-thirds of the total voting power of all of our outstanding voting stock.
The provisions of Delaware law, our restated certificate of incorporation, and our restated bylaws could have the effect of discouraging others from attempting hostile takeovers and, as a consequence, they may also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile takeover attempts. These provisions may also have the effect of preventing changes in the composition of our board and management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests. 
Stock Exchange Listing 
Our Class A common stock is listed on each of the NYSE and the LTSE under the symbol “ASAN.” 
Transfer Agent and Registrar 

The transfer agent and registrar for our Class A and Class B common stock is Computershare Trust Company, N.A. The transfer agent’s address is 462 South 4th Street, Suite 1600, Louisville, KY 40202, and its telephone number is (888) 628-3499.Exhibit
10.2

 

 

THIS
LEASE AGREEMENT (this “Lease”) is entered into and effective as of this 21st day of March, 2022 (the “Effective
Date”), between VH SENIOR CARE LLC, a Delaware limited liability company (“Landlord”), and AFH SENIOR CARE C CORP,
a Washington corporation (“Tenant”). Landlord and Tenant agree as follows:

 

1.
LEASE GENERAL TERMS.

 

	a.	Leased
    Premises. All of the real property and improvements situated thereon located at 1226 160th Street SW, Lynwood, Snohomish
    County, State of Washington (the “Premises”), which real property is more particularly described in Exhibit A attached
    hereto and incorporated herein by reference.
	 	 
	b.	Term
    and Commencement Date: The term of this Lease (the “Term”) will commence on the date that the fee simple interest
    in the Premises is conveyed to Landlord as part of Landlord’s purchase of the Premises (the “Commencement Date”),
    and continue in effect through and including March 31, 2027 subject to extension or earlier termination as provided herein. The last
    day of the Term is referred to herein as the “Termination Date.” If the Commencement Date does not occur on or before
    April 17, 2022 (the “Commencement Deadline”), either party may terminate this Lease upon delivery of written notice not
    less than thirty (30) days prior to the effective date of termination; provided, however, such notice of termination shall be null
    and void if the fee simple interest in the Premises are conveyed to Landlord prior to the effective date of said notice of termination.
    Except for the right to terminate this Lease as provided above, the parties shall not have any rights, obligations or remedies with
    respect to the delivery of possession of the Premises or the commencement of this Lease.
	 	 
	c.	Base
    Rent. The base monthly rent shall be according to the Payment and Lease Addendum attached hereto (“Base Rent”). All
    Rent, including Base Rent, shall be payable at Landlord’s address shown in Section 1(e) below, or such other place designated
    in writing by Landlord. 
	 	 
	d.	Permitted
    Use. The Premises shall be used only for operation of an adult family home (the “Permitted Use”) as defined in RCW
    70.128.010 or such successor statute. Tenant shall not use the Premises for any purpose except the Permitted Use. If “adult
    family home” is not defined under the Revised Code of Washington, Landlord shall reasonably define such use based on applicable
    industry standards in the State of Washington. Tenant shall be solely responsible for compliance with all laws, rules and regulations
    regarding the operation of the Premises for the Permitted Use, including all laws, rules and regulations regarding the construction,
    installation, repair and maintenance of the improvements of the Premises. For the avoidance of doubt, Landlord shall not have any
    obligation regarding the compliance of the Premises with any laws, rules or regulations related to the Pe 
	 	 
	e.	Notice
    and Payment Addresses: All notices required or permitted under this Lease shall be in writing and served personally or by certified
    mail, return receipt requested, to the parties at the addresses specified herein. When service is made by certified mail, the notice
    shall be deemed given two (2) days after the date that it is deposited, properly addressed and postage prepaid, in the United States
    mail. Either party may change its address for notices by written notice personally delivered or forwarded by certified mail.

 

Landlord:

VH
SENIOR CARE LLC

 

    	 

     

    

 

 

c/o
iCap Pacific NW Management, LLC

3535
Factoria Boulevard, Suite 500

Bellevue,
WA 98006

Attn:
Jim Christensen

Phone:
(425) 278-9030

Email:
jim@icapequity.com

 

Tenant:

AFH
Senior Care C Corp

405
SW 41st St, Suite 407

Renton,
WA 98057

Phone:
425-765-4136

Email:
chris@afhseniorcare.com

 

	f.	Homeowners
    Association. Tenant acknowledges that the Premises are subject to that certain Declaration of Covenants, Conditions and Restrictions
    for the Plat of Martha Lake Meadows recorded in the public records of Snohomish County under recording no. 200503180378, and the
    bylaws and rules and regulations (collectively the « Association Documents ») promulgated by the Martha Lake Meadows
    Homeowner’s Association (the « Association »). Tenant shall comply with the Association Documents and timely pay
    for all regular and special assessments against the Premises, including any applicable penalties, interest or late fees assessed
    against the Premises, in accordance with the Association Documents during the Term. Tenant acknowledges that it has received copies
    of the Association Documents and under the terms of the Association Documents, the Association may evict Tenant from the Premises
    if Tenant fails to comply with the Association Documents. 

 

2.
Premises.

 

	a.	Lease
of Premises. In consideration for the payment of Rent and the performance of the other obligations hereunder, Landlord hereby leases
the Premises to Tenant, and Tenant leases the Premises from Landlord, subject to, and on the terms and conditions set forth in this Lease.
Landlord and Tenant agree that, notwithstanding anything to the contrary set forth in this Lease, as the licensed operator of the Premises,
Tenant shall retain full legal authority over the operations of the Premises and shall have ultimate responsibility for the care provided
at the Premises and for the compliance of the Premises in all material respects with applicable laws and licenses for the operation of
the Premises in accordance with the Permitted Use. Tenant is an independent contractor of Landlord, and nothing in this Lease or in the
relationship of Landlord and Tenant shall constitute a partnership, joint venture, agency or any other similar relationship.
	 	 
	b. 	Acceptance of Premises. Except as specifically set forth in this Lease, Landlord shall not be obligated to provide or pay for any improvement work of the Premises. Tenant expressly acknowledges and agrees that, except as expressly set forth in this Lease, the Premises is being leased to Tenant on an “as-is” basis, and Landlord makes no warranty, guaranty or representation, express or implied, or arising by operation of law, including, but in no way limited to, any warranty of condition, habitability, merchantability or fitness for a particular purpose, all of which are, to the fullest extent permitted by all applicable federal, state and local laws, statutes, orders, ordinances, building codes, zoning rules, judgments, codes, rules and regulations (“Laws” or individually, “Law”), are expressly disclaimed. Tenant also acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty regarding the condition of the Premises. Tenant shall be solely responsible for performing any work necessary to bring the Premises into a condition satisfactory to Tenant or appropriate for the operation of the Premises for the Permitted Use. 

 

    	 

     

    

 

 

	c.	Tenant
Improvements. All improvements to the Premises (“Tenant Improvements”) shall be constructed by Tenant, and shall
be subject to the prior approval by Landlord of the plans and specifications, which approval shall not be unreasonably withheld, conditioned
or delayed, and the other terms and conditions of this Lease. Tenant shall submit a complete set of 1/8” or larger scale plans
and specifications for its initial Tenant Improvements pursuant hereto (the “Initial Improvements”) within ____ days after
the execution of this Lease, and shall complete the Initial Improvements on or before _______________, 2022 (the “Improvement Deadline”).
Landlord shall reimburse Tenant a portion of the costs incurred by Tenant in connection with the construction of the Initial Improvements
(the “Tenant Allowance”) subject to the terms set forth herein. The aggregate amount of the Tenant Allowance shall not be
more than $75,000.00. The Tenant Allowance may only be applied to the costs of labor and materials incurred in construction of the Initial
Improvements, including contractor’s fees and general conditions, sales tax, testing and inspection costs, cost of utilities, trash
removal and equipment rental. The Tenant Allowance may not be applied against furniture or other personal property. All items paid for
with the Tenant Allowance shall belong to Landlord and may not be removed from the Premises without Landlord’s prior written approval.
If the costs of the Initial Improvements exceeds the Tenant Allowance, Tenant shall be solely responsible for the payment of all costs
in excess of the Tenant Allowance. The design and construction of the Initial Improvements shall be subject to the applicable provisions
of the Lease. In addition, all Initial Improvements shall be performed by licensed and bonded contractors that are reasonably acceptable
to Landlord. Tenant shall submit to Landlord receipts, lien waivers and other reasonable documentation required by Landlord evidencing
the completion of the Initial Improvements and Landlord shall deliver the applicable reimbursement from the Tenant Allowance to Tenant
within thirty (30) days after Landlord’s receipt of such documentation. Landlord shall not have any obligation to reimburse Tenant
for the Initial Improvements if the reimbursement documentation required as aforesaid (including evidence of completion) is not delivered
to Landlord on or before the Improvement Deadline. 

 

3.
TERM. The term of this Lease is defined in Section 1(b) above.

 

	a. 	Early Possession. If Landlord permits Tenant to possess and occupy the Premises prior to the Commencement Date, then such early occupancy shall not advance or change the Commencement Date or the Termination Date set forth in Section 1, but otherwise all terms and conditions of this Lease shall nevertheless apply during the period of early occupancy before the Commencement Date, including the payment of Rent. 
	 	 
	b. 	Holdover. Any holding over by Tenant after expiration of the term hereof with Landlord’s consent shall be construed as a tenancy from month to month, subject to all the conditions of this Lease, except that, unless otherwise agreed by Landlord, Base Rent during the holdover period shall be two hundred percent (200%) of the Base Rent in effect as of the last month of the term expired. Either party may terminate such month-to-month tenancy by giving to the other thirty (30) days’ written notice of its intention to terminate. In the event Tenant holds over in the Premises without having first obtained Landlord’s prior written consent, Landlord shall have all rights of re-entry and other remedies set forth herein or as otherwise maybe provided by law. Tenant shall further and does hereby agree to indemnify and hold Landlord harmless from any loss or liability resulting from such failure, including, but not limited to, claims made by any succeeding tenant resulting from Tenant’s failure to surrender the Premises to Landlord. 

 

    	 

     

    

 

 

4.
RENT.

 

	a. 	Payment of Rent. Tenant shall pay Landlord without notice, demand, deduction, or offset, in lawful money of the United States, Base Rent in advance on or before the first day of each month during the Lease term beginning on the Commencement Date, and shall also pay any other additional payments due to Landlord (“Additional Rent”) (collectively, “rent” or “Rent”) when required under this Lease. Payments for any partial month at the beginning or end of the Lease shall be prorated. All payments due to Landlord under this Lease, including late fees and interest, shall also constitute Additional Rent, and upon failure of Tenant to pay any such costs, charges or expenses, Landlord shall have the same rights and remedies as otherwise provided in this Lease for the failure of Tenant to pay rent. 
	 	 
	b. 	Late Charges; Default Interest. If any sums payable by Tenant to Landlord under this Lease are not received within five (5) business days after their due date, Tenant shall pay Landlord an amount equal to the greater of $100 or five percent (5%) of the unpaid amount in order to compensate Landlord for the cost of collecting and handling such late payment in addition to the amount due and as Additional Rent. All delinquent sums payable by Tenant to Landlord and not paid within five (5) business days after their due date shall, at Landlord’s option, shall bear interest at the rate of twelve percent (12%) per annum, or the highest rate of interest allowable by law, whichever is less (the “Default Rate”). Interest on all delinquent amounts shall be calculated from the original due date to the date of payment. 
	 	 
	c. 	Less Than Full Payment. Landlord’s acceptance of less than the full amount of any payment due from Tenant shall not be deemed an accord and satisfaction or compromise of such payment unless Landlord specifically consents in writing to payment of such lesser sum as an accord and satisfaction or compromise of the amount which Landlord claims. Any portion that remains to be paid by Tenant shall be subject to the late charges and default interest provisions of this Section. 

 

5.
USES. The Premises shall be used only for the Permitted Use, and for no other business or purpose without the prior written consent
of Landlord. No act shall be done on or around the Premises that is unlawful or that will increase the existing rate of insurance on
the Premises, or cause the cancellation of any insurance on the Premises. Tenant shall not commit or allow to be committed any waste
upon the Premises, or any public or private nuisance.

 

6.
COMPLIANCE WITH LAWS. Tenant shall not cause or permit the Premises to be used in any way which violates any law, ordinance, or governmental
regulation or order. Tenant shall be solely responsible for complying with all Laws related to operation of the Premises for the Permitted
Use, and Tenant shall be responsible for making any improvements changes or alterations to the Premises as may be required by Law, rule,
regulation, or order for Tenant’s Permitted Use at its sole cost and expense, subject to Landlord’s consent as provided herein.
For the avoidance of doubt, Landlord shall not have any obligation under this Lease to make any improvements, changes or alterations
to the Premises except as expressly provided herein.

 

7.
UTILITIES. Landlord shall not be responsible for providing any utilities to the Premises and shall not be liable for any loss, injury
or damage to person or property caused by or resulting from any variation, interruption, or failure of utilities due to any cause whatsoever,
and rent shall not abate as a result thereof, except to the extent due to the intentional misconduct or gross negligence of Landlord.
Tenant shall be solely responsible for determining whether available utilities and their capacities will meet Tenant’s needs. Tenant
shall be solely responsible for all costs and expenses related to water, sewer, gas, janitorial, electricity, garbage removal, heat,
telephone, Internet, cable services, and any other utilities or services used by Tenant on the Premises during the Term, whether or not
such services are billed directly to Tenant. Tenant will also procure, or cause to be procured, without cost to Landlord, all necessary
permits, licenses or other authorizations required for the lawful and proper installation, maintenance, replacement, and removal on or
from the Premises of wires, pipes, conduits, tubes, and other equipment and appliances for use in supplying all utilities or services
to the Premises. Landlord, upon request of Tenant, and at the sole expense and liability of Tenant, shall join with Tenant in any reasonable
applications required for obtaining or continuing such utilities or services.

 

    	 

     

    

 

 

8.
TAXES. Landlord shall be responsible for timely payment of all real estate taxes which may be levied or assessed against the Premises
during the Term (collectively “Taxes”); provided, however, Tenant shall reimburse Landlord an amount equal to the difference
(the “Tax Increase”) between the aggregate amount of Taxes for a particular calendar year, less an amount equal to 103% of
the aggregate amount of Taxes for the immediately preceding calendar year. Tenant shall reimburse Landlord for any Tax Increase within
ten (10) business days after written notice thereof. Real estate taxes shall include all assessments (special or otherwise), and all
other taxes, governmental levies and charges that may during the term be levied, assessed, imposed, or become a lien upon or payable
with respect to (a) the land and building constituting the Premises, (b) the rents receivable by Landlord, including gross receipts taxes,
and (c) the ownership, leasing, operation, maintenance, alteration or repair of the Premises. Landlord shall timely pay any and all taxes
assessed on personal property of Tenant or otherwise used in connection with the operation of the Premises.

 

9.
ALTERATIONS. Tenant may make alterations, additions, or improvements to the Premises (the “Alterations”), only with the
prior written consent of Landlord, which shall not be unreasonably withheld, conditioned, or delayed. Landlord shall have forty-five
(45) days in which to respond to Tenant’s request for any Alterations so long as such request includes the name of Tenant’s
contractors and reasonably detailed plans and specifications therefor. The term “Alterations” shall not include the installation
of shelves, movable partitions, Tenant’s equipment, and trade fixtures that may be performed without damaging existing improvements
or the structural integrity of the Premises, and Landlord’s consent shall not be required for Tenant’s installation or removal
of those items. Tenant shall perform all work within the Premises at Tenant’s expense in compliance with all applicable laws and
shall complete all Alterations in accordance with plans and specifications approved by Landlord, using contractors approved by Landlord.
Tenant shall pay, when due, or furnish a bond for payment (as set forth in Section 18) all claims for labor or materials furnished to
or for Tenant at or for use in the Premises, which claims are or may be secured by any mechanics’ or materialmens’ liens
against the Premises or any interest therein. For the avoidance of doubt, Tenant shall be solely responsible for payment of all costs
and expenses related to any Alteration or other work performed by, or at the direction of, Tenant at the Premises. Landlord shall have
the right to post or deliver any notices Tenant shall remove all Alterations at the end of the Lease term unless Landlord conditioned
its consent upon Tenant leaving a specified Alteration at the Premises, in which case Tenant shall not remove such Alteration and it
shall become Landlord’s property. Tenant shall immediately repair any damage to the Premises caused by removal of Alterations.
Tenant agrees to and shall indemnify and hold Landlord harmless against all liability, loss, damage, costs, attorneys’ fees and
other expenses arising from claims of lien of laborers or materialmen for work performed or materials or supplies furnished for Tenant
at the Premises.

 

    	 

     

    

 

 

10.
REPAIRS AND MAINTENANCE; SURRENDER. Tenant shall, at its sole expense, maintain the entire Premises including without limitation
the roof surface and repairs, maintenance and replacement of all heating, ventilation, and air conditioning (“HVAC”) equipment
at the Premises, in good condition and promptly make all repairs and replacements, whether structural or non-structural, necessary to
keep the Premises in safe operating condition, including all utilities and other systems serving the Premises, but excluding the roof
structure, subfloor, foundation, exterior walls of the Premises (collectively, “Landlord’s Repair Items”). Landlord
shall maintain Landlord’s Repair Items in good condition and repair at Landlord’s expense. Tenant shall not damage any Landlord’s
Repair Items and shall promptly repair any damage or injury done thereto caused by Tenant or its employees, officers, agents, servants,
contractors, customers, clients, visitors, guests, or other licensees or invitees. Notwithstanding anything in this Section to the contrary,
Tenant shall not be responsible for any repairs to the Premises made necessary by the gross negligence or willful misconduct of Landlord
or its employees, officers, agents, servants, or contractors. If Tenant fails to perform Tenant’s obligations under this Section,
Landlord may at Landlord’s option enter upon the Premises after ten (10) days’ prior notice to Tenant and put the same in
good order, condition and repair and the cost thereof together with interest thereon at the default rate set forth in Section 4 shall
be due and payable as Additional Rent to Landlord together with Tenant’s next installment of Base Rent. Upon expiration of the
Lease term, whether by lapse of time or otherwise, Tenant shall promptly and peacefully surrender the Premises, together with all keys,
to Landlord in as good condition as when received by Tenant from Landlord or as thereafter improved, reasonable wear and tear and insured
casualty excepted, broom clean and free of all trash and personal property of Tenant. Any personal property remaining at the Premises
shall be deemed abandoned and Landlord may dispose of the same at the sole cost and expense of Tenant.

 

11.
ACCESS AND RIGHT OF ENTRY. After twenty-four (24) hours’ notice from Landlord (except in cases of emergency, when no notice
shall be required), Tenant shall permit Landlord and its agents, employees and contractors to enter the Premises at all reasonable times
to make repairs, inspections, alterations or improvements, provided that Landlord shall use reasonable efforts to minimize interference
with Tenant’s use and enjoyment of the Premises. This Section shall not impose any repair or other obligation upon Landlord not
expressly stated elsewhere in this Lease. After reasonable notice to Tenant, Landlord shall have the right to enter the Premises for
the purpose of (a) showing the Premises to prospective purchasers or lenders at any time, and to prospective tenants within one hundred
eighty (180) days prior to the expiration or sooner termination of the Lease term; and, (b) for posting “for lease” signs
within one hundred eighty (180) days prior to the expiration or sooner termination of the Lease term.

 

12.
SIGNAGE. Tenant shall obtain Landlord’s written consent as to size, location, materials, method of attachment, and appearance,
before installing any signs upon the Premises. Tenant shall install any approved signage at Tenant’s sole expense and in compliance
with all applicable laws. Tenant shall not damage or deface the Premises in installing or removing signage and shall repair any injury
or damage to the Premises caused by such installation or removal.

 

13.
DESTRUCTION OR CONDEMNATION.

 

	a.	Damage
    and Repair. If the Premises are partially damaged but not rendered untenantable, by fire or other insured casualty, then Landlord
    shall diligently restore the Premises to the extent required below and this Lease shall not terminate. Tenant may, however, terminate
    the Lease if Landlord does not restore the Premises within six (6) months after the casualty event by giving twenty (20) days’
    notice of termination. 
	 	 
	 	The
    Premises shall not be deemed untenantable if twenty-five percent (25%) or less of the Premises are damaged. If insurance proceeds
    are not available or are not sufficient to pay the entire cost of restoring the Premises, or if Landlord’s lender does not
    permit all or any part of the insurance proceeds to be applied toward restoration, then Landlord may elect to terminate this Lease
    by notifying Tenant within six (6) months after the date of such casualty.

 

    	 

     

    

 

 

	 	If
    fifty (50) percent or more of the rentable area of the Premises are destroyed or damaged and rendered untenantable, by fire or other
    casualty, Landlord may, at its option: (a) terminate this Lease as provided herein, or (b) restore the Premises to their previous
    condition to the extent required below; provided, however, if such casualty event occurs during the last six (6) months of the Lease
    term (after considering any option to extend the term timely exercised by Tenant) then either Tenant or Landlord may elect to terminate
    the Lease. If, within sixty (60) days after receipt by Landlord from Tenant of written notice that Tenant deems the Premises untenantable,
    Landlord fails to notify Tenant of its election to restore the Premises, then Tenant may elect to terminate the Lease upon twenty
    (20) days’ written notice to Landlord unless Landlord, within such twenty (20) day period, notifies Tenant that it will restore
    the Premises.
	 	 
	 	If
    Landlord restores the Premises under this Section, Landlord shall proceed with reasonable diligence to complete the work, and the
    Base Rent shall be abated in the same proportion as the untenantable portion of the Premises bears to the whole Premises, provided
    that there shall be a Base Rent abatement only if the damage or destruction of the Premises did not result from, or was not contributed
    to directly or indirectly by the act, fault or neglect of Tenant, or Tenant’s employees, officers, agents, servants, contractors,
    customers, clients, visitors, guests, or other licensees or invitees. Except for the abatement or Base Rent as provided above, all
    other obligations of Tenant under this Lease shall continue during the restoration of the Premises. No damages, compensation or claim
    shall be payable by Landlord for inconvenience, loss of business or annoyance directly, incidentally or consequentially arising from
    any repair or restoration of any portion of the Premises. Landlord shall have no obligation to carry insurance of any kind for the
    protection of Tenant; any alterations or improvements paid for by Tenant; Tenant’s furniture; or on any fixtures, equipment,
    improvements or appurtenances of Tenant under this Lease, and Landlord’s restoration obligations hereunder shall not include
    any obligation to repair any damage thereto or replace any of the foregoing.
	 	 
	 	Notwithstanding
    any conflicting provision of this Lease, all insurance proceeds related to damage to the Premises shall be the sole property of Landlord.
	 	 
	b.	Condemnation.
    If the Premises are made untenantable by eminent domain, or conveyed under a threat of condemnation, this Lease shall automatically
    terminate as of the earlier of the date title vests in the condemning authority or the condemning authority first has possession
    of the Premises and all Rents and other payments shall be paid to that date. If the condemning authority takes a portion of the Premises
    that does not render the Premises untenantable, then this Lease shall continue in full force and effect and the base monthly rent
    shall be equitably reduced based on the proportion by which the floor area of any structures is reduced. The reduction in Rent shall
    be effective on the earlier of the date the condemning authority first has possession of such portion or title vests in the condemning
    authority. Landlord shall be entitled to the entire award from the condemning authority attributable to the value of the Premises
    and Tenant shall make no claim for the value of its leasehold. Tenant shall be permitted to make a separate claim against the condemning
    authority for moving expenses if Tenant may terminate this Lease pursuant to this Section, provided that in no event shall Tenant’s
    claim reduce Landlord’s award. 

 

    	 

     

    

 

 

14.
INSURANCE.

 

	a. 	Tenant’s Liability Insurance. During the Lease term, Tenant shall pay for and maintain commercial general liability insurance with broad form property damage and contractual liability endorsements. This policy shall name Landlord, its property manager (if any), and other parties designated by Landlord as additional insureds using an endorsement form acceptable to Landlord, and shall insure Tenant’s activities and those of Tenant’s employees, officers, agents, servants, contractors, customers, clients, visitors, guests, or other licensees or invitees with respect to the Premises against loss, damage or liability for personal injury or bodily injury (including death) or loss or damage to property with a combined single limit of not less than $1,000,000, and a deductible of not more than $10,000. Tenant’s insurance will be primary and noncontributory with any liability insurance carried by Landlord. Landlord may also require Tenant to obtain and maintain business income coverage for at least six (6) months, business auto liability coverage, and, if applicable to Tenant’s Permitted Use, liquor liability insurance and/or warehouseman’s coverage. 
	 	 
	b.	 Miscellaneous. Tenant’s insurance required under this Section shall be with companies rated A-/VII or better in Best’s Insurance Guide, and which are admitted in the State in which the Premises are located. No insurance policy shall be cancelled or reduced in coverage and each such policy shall provide that it is not subject to cancellation or a reduction in coverage except after thirty (30) days prior written notice to Landlord. Tenant shall deliver to Landlord upon commencement of the Lease and from time to time thereafter, copies of the insurance policies or evidence of insurance and copies of endorsements required by this Section. In no event shall the limits of such policies be considered as limiting the liability of Tenant under this Lease. If Tenant fails to acquire or maintain any insurance or provide any policy or evidence of insurance required by this Section, and such failure continues for three (3) days after written notice from Landlord, Landlord may, but shall not be required to, obtain such insurance for Landlord’s benefit and Tenant shall reimburse Landlord for the costs of such insurance upon demand. Such amounts shall be Additional Rent payable by Tenant hereunder and in the event of non-payment thereof, Landlord shall have the same rights and remedies with respect to such non-payment as it has with respect to any other non-payment of Rent hereunder. 
	 	 
	c.	 Landlord’s Insurance. Landlord shall carry such insurance on the Premises as Landlord deems appropriate in its sole discretion. Tenant shall reimburse Landlord for the costs and expenses incurred by Landlord for any insurance maintained by Landlord in connection with the Premises within five (5) business days after written notice thereof and such reimbursement shall constitute Additional Rent.
	 	 
	d. 	Waiver of Subrogation. Landlord and Tenant hereby release each other and any other tenant, their agents or employees, from responsibility for, and waive their entire claim of recovery for any loss or damage arising from any cause covered by property insurance required to be carried or otherwise carried by each of them. Each party shall provide notice to the property insurance carrier or carriers of this mutual waiver of subrogation, and shall cause its respective property insurance carriers to waive all rights of subrogation against the other. This waiver shall not apply to the extent of the deductible amounts to any such property policies or to the extent of liabilities exceeding the limits of such policies. 

 

    	 

     

    

 

 

15.
INDEMNIFICATION.

 

	a. 	Indemnification by Tenant. Tenant shall and does hereby agree to defend indemnify and hold Landlord harmless from any liabilities, claims, demands, actions, damages, and expenses, including reasonable attorney’s fees and expenses of litigation, arising from Tenant’s use of the Premises or its business operations therein, from any breach or default of Tenant of its obligations under this Lease, or from the negligence or willful misconduct of Tenant, its agents, employees, contractors or invitees; provided, however, Tenant’s obligations hereunder shall not apply to the extent such liabilities, claims, demands, actions, damages or expenses arise solely from the gross negligence or willful misconduct of Landlord. Landlord shall not be liable for injury or damage which may be sustained by the person, goods, merchandise or other personal property of Tenant or any other person in or about the Premises resulting from fire, steam, electricity, gas, water or rain which may leak or flow from or into the Premises, or from the breakage, leakage, obstruction or other defects in the pipes, sprinklers, wires, appliances, plumbing air conditioning or lighting fixtures of the same, whether such damage or injury results from conditions arising on the Premises or other sources. Tenant hereby assumes all risk of damage to property or injury to persons in or about the Premises from any cause except for the Landlord’s breach of its obligations under this Lease and Landlord’s gross negligence or willful misconduct. Tenant shall give Landlord prompt notice of any casualty or accident in the Premises.
	 	 
	b. 	Indemnification by Landlord. INTENTIONALLY OMITTED.
	 	 
	c.	Waiver of Immunity. Tenant specifically and expressly waives any immunity that each may be granted under the Washington State Industrial Insurance Act, Title 51 RCW. Tenant’s indemnity obligations under this Lease shall not be limited by any limitation on the amount or type of damages, compensation, or benefits payable to or for any third party under the Worker Compensation Acts, Disability Benefit Acts or other employee benefit acts. 
	 	 
	d.	Survival.
    The provisions of this Section 15 shall survive expiration or termination of this Lease.

 

16.
ASSIGNMENT AND SUBLETTING. Tenant shall not voluntarily, involuntarily, or by operation of law assign, transfer, hypothecate or otherwise
encumber this Lease or Tenant’s interest therein, and shall not sublet or permit the use by others of the Premises or any part
thereof without first obtaining Landlord’s written consent, which consent shall not be unreasonably withheld or delayed. A merger,
consolidation, reorganization or acquisition of all of the assets or stock of Tenant in which the surviving entity (a) acquires all of
the assets of Tenant as a going concern and continues the business of Tenant at the Premises, and (b) assumes, or is deemed by law to
be liable for, all of the liabilities of Tenant under the Lease, shall be considered an assignment for purposes of this Lease, but shall
not require Landlord’s consent. Consent once given shall not operate as a waiver of the necessity for obtaining Landlord’s
consent to any subsequent assignment, transfer, hypothecation or sublease. Any such assignment or transfer without Landlord’s consent
shall be void and shall, at Landlord’s option, constitute a material breach of this Lease. No interest in this Lease shall be assignable
by operation of law. Landlord’s approval of any assignment or subletting shall not eliminate Tenant’s liability for all obligations
contained herein during the remainder of the Lease Term.

 

If
Tenant is a partnership, limited liability company, corporation, or other entity, any transfer of this Lease by merger, consolidation,
redemption or liquidation, or any change in the ownership of, or power to vote, which singularly or collectively represents a majority
of the beneficial interest in Tenant, shall constitute an assignment of this Lease under this Section.

 

As
a condition to Landlord’s approval, if given, any potential assignee or sublessee otherwise approved by Landlord shall assume all
obligations of Tenant under this Lease and shall be jointly and severally liable with Tenant and any guarantor, if required, for the
payment of Rent and performance of all terms of this Lease. In connection with any Transfer, Tenant shall provide Landlord with copies
of all assignments, subleases and assumption agreements or documents.

 

    	 

     

    

 

 

17.
LIENS. Tenant shall not subject the Landlord’s assets to any liens or claims of lien. Tenant shall keep the Premises free from
any liens created by or through Tenant. Tenant shall indemnify and hold Landlord harmless from liability for any such liens including,
without limitation, liens arising from any Alterations. If a lien is filed against the Premises by any person claiming by, through or
under Tenant, Tenant shall, within ten (10) days after Landlord’s demand, at Tenant’s expense, either remove the lien or
furnish to Landlord a bond in form and amount and issued by a surety satisfactory to Landlord, indemnifying Landlord and the Premises
against all liabilities, costs and expenses, including attorneys’ fees, which Landlord could reasonably incur as a result of such
lien.

 

18.
DEFAULT. The following occurrences shall each constitute a default by Tenant (an “Event of Default”).

 

	a. 	Failure To Pay. Failure by Tenant to pay any sum, including Rent, due under this Lease following three (3) days’ notice from Landlord of the failure to pay. 
	 	 
	b. 	Vacation/Abandonment. Vacation by Tenant of the Premises (defined as an absence for at least fifteen (15) consecutive days without prior notice to Landlord), or abandonment by Tenant of the Premises (defined as an absence of five (5) days or more while Tenant is in breach of some other term of this Lease). Tenant’s vacation or abandonment of the Premises shall not be subject to any notice or right to cure. 
	 	 
	c. 	Insolvency. Tenant’s insolvency or bankruptcy (whether voluntary or involuntary); or appointment of a receiver, assignee or other liquidating officer for Tenant’s business; provided, however, that in the event of any involuntary bankruptcy or other insolvency proceeding, the existence of such proceeding shall constitute an Event of Default only if such proceeding is not dismissed or vacated within sixty (60) days after its institution or commencement. 
	 	 
	d.	Levy
or Execution. The taking of Tenant’s interest in this Lease or the Premises, or any part thereof, is taken by execution or
other process of law directed against Tenant, or attachment of Tenant’s interest in this Lease by any creditor of Tenant, if such
attachment is not discharged within fifteen (15) days after being levied. 
	 	 
	e. 	Other Non-Monetary Defaults. The breach by Tenant of any agreement, term or covenant of this Lease other than one requiring the payment of money and not otherwise enumerated in this Section or elsewhere in this Lease, which breach continues for a period of thirty (30) days after notice by Landlord to Tenant of the breach. 
	 	 
	e.	Failure to Take Possession. Failure by Tenant to take possession of the Premises on the Commencement Date or failure by Tenant to commence any Tenant Improvement in a timely fashion. 
	 	 
	 	Landlord shall not be in default unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event less than thirty (30) days after notice by Tenant to Landlord. If Landlord fails to cure any such default within the allotted time, Tenant’s sole remedy shall be to seek actual money damages (but not consequential or punitive damages) for loss arising from Landlord’s failure to discharge its obligations under this Lease. Nothing herein contained shall relieve Landlord from its duty to perform of any of its obligations to the standard prescribed in this Lease.

 

    	 

     

    

 

 

Any
notice periods granted herein shall be deemed to run concurrently with and not in addition to any default notice periods required by
law.

 

19.
REMEDIES. Landlord shall have all rights and remedies provided under applicable law, including the following remedies upon an Event
of Default. Landlord’s rights and remedies under this Lease shall be cumulative, and none shall exclude any other right or remedy
allowed by law.

 

	a. 	Termination of Lease. Landlord may terminate Tenant’s interest under the Lease, but no act by Landlord other than notice of termination from Landlord to Tenant shall terminate this Lease. The Lease shall terminate on the date specified in the notice of termination. Upon termination of this Lease, Tenant will remain liable to Landlord for damages in an amount equal to the rent and other sums that would have been owing by Tenant under this Lease for the balance of the Lease term, less the net proceeds, if any, of any re-letting of the Premises by Landlord subsequent to the termination, after deducting all of Landlord’s Reletting Expenses (as defined below). Landlord shall be entitled to either collect damages from Tenant monthly on the days on which rent or other amounts would have been payable under the Lease, or alternatively, Landlord may accelerate Tenant’s obligations under the Lease and recover from Tenant: (i) unpaid rent which had been earned at the time of termination; (ii) the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of rent loss that Tenant proves could reasonably have been avoided; (iii) the amount by which the unpaid rent for the balance of the term of the Lease after the time of award exceeds the amount of rent loss that Tenant proves could reasonably be avoided (discounting such amount by the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus 1%); and (iv) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under the Lease, or which in the ordinary course would be likely to result from the Event of Default, including without limitation Reletting Expenses described below. 
	 	 
	b.	Waiver
of Redemption Rights and Landlord’s Right to Perform. Tenant, for itself, and on behalf of any and all persons claiming through
or under Tenant, including creditors of all kinds, hereby waives and surrenders all rights and privileges which they may have under any
present or future law, to redeem the Premises or to have a continuance of this Lease for the Lease term or any extension thereof. If
Tenant is in default of any of its obligations under this Lease, Landlord may, but shall not be required to (in addition to or in lieu
of all other rights and remedies of Landlord available under this Lease and at law), undertake to perform any of such obligations on
Tenant’s behalf, and Tenant shall reimburse Landlord for any and all expenses incurred by Landlord as a result thereof. Any amounts
not reimbursed from Tenant to Landlord within fifteen (15) days after notice thereof from Landlord shall bear interest as set forth in
this Lease.
	 	 
	c.	Nonpayment
of Additional Rent. All costs which Tenant is obligated to pay to Landlord pursuant to this Lease shall in the event of nonpayment
be treated as if they were payments of Rent, and Landlord shall have the same rights it has with respect to nonpayment of Rent. 

 

    	 

     

    

 

 

	d.	Failure to Remove Property. If Tenant fails to remove
any of its property from the Premises at Landlord’s request following an uncured Event of Default, Landlord may, at its option,
remove and store the property at Tenant’s expense and risk. If Tenant does not pay the storage cost within five (5) days of Landlord’s
request, Landlord may, at its option, have any or all of such property sold at public or private sale (and Landlord may become a purchaser
at such sale), in such manner as Landlord deems proper, without notice to Tenant. Landlord shall apply the proceeds of such sale: (i)
to the expense of such sale, including reasonable attorneys’ fees actually incurred; (ii) to the payment of the costs or charges
for storing such property; (iii) to the payment of any other sums of money which may then be or thereafter become due Landlord from Tenant
under any of the terms hereof; and (iv) the balance, if any, to Tenant. Nothing in this Section shall limit Landlord’s right to
sell Tenant’s personal property as permitted by law or to foreclose Landlord’s lien for unpaid rent.

 

20.
MORTGAGE SUBORDINATION AND ATTORNMENT. This Lease shall automatically be subordinate to any mortgage or deed of trust created by
Landlord which is now existing or hereafter placed upon the Premises including any advances, interest, modifications, renewals, replacements
or extensions (“Landlord’s Mortgage”). Tenant shall attorn to the holder of any Landlord’s Mortgage or any party
acquiring the Premises at any sale or other proceeding under any Landlord’s Mortgage provided the acquiring party assumes the obligations
of Landlord under this Lease. Tenant shall promptly, and in no event later than fifteen (15) days after request, execute, acknowledge
and deliver documents which the holder of any Landlord’s Mortgage may reasonably require as further evidence of this subordination
and attornment. Notwithstanding the foregoing, Tenant’s obligations under this Section to subordinate in the future are conditioned
on the holder of each Landlord’s Mortgage and each party acquiring the Premises at any sale or other proceeding under any such
Landlord’s Mortgage not disturbing Tenant’s occupancy and other rights under this Lease, so long as no uncured Event of Default
by Tenant exists.

 

21.
NON-WAIVER. Landlord’s waiver of any breach of any provision contained in this Lease shall not be deemed to be a waiver of
the same provision for subsequent acts of Tenant. The acceptance by Landlord of Rent or other amounts due by Tenant hereunder shall not
be deemed to be a waiver of any previous breach by Tenant.

 

22.
HOLDOVER. If Tenant shall, without the written consent of Landlord, remain in possession of the Premises and fail to return them
to Landlord after the expiration or termination of the Lease, the tenancy shall be a holdover tenancy and shall be on a month-to-month
basis, which may be terminated according to Washington law. During such tenancy, Tenant agrees to pay to Landlord 150% of the rate of
rental last payable under this Lease, unless a different rate is agreed upon by Landlord. All other terms of the Lease shall remain in
effect. Tenant acknowledges and agrees that this Section does not grant any right to Tenant to holdover, and that Tenant may also be
liable to Landlord for any and all damages or expenses which Landlord may have to incur as a result of Tenant’s holdover.

 

23.
NOTICES. All notices under this Lease shall be in writing and effective (i) when delivered in person or via overnight courier to
the other party, (ii) three (3) days after being sent by registered or certified mail to the other party at the address set forth in
Section 1; or (iii) upon confirmed transmission by facsimile to the other party at the facsimile numbers set forth in Section 1. The
addresses for notices and payment of rent set forth in Section 1 may be modified by either party only by written notice delivered in
conformance with this Section.

 

24.
COSTS AND ATTORNEYS’ FEES. If Tenant or Landlord engage the services of an attorney to collect monies due or to bring any action
for any relief against the other, declaratory or otherwise, arising out of this Lease, including any suit by Landlord for the recovery
of Rent or other payments or possession of the Premises, the losing party shall pay the prevailing party a reasonable sum for attorneys’
fees in such action, whether in mediation or arbitration, at trial, on appeal, or in any bankruptcy proceeding.

 

    	 

     

    

 

 

25.
ESTOPPEL CERTIFICATES. Tenant shall, from time to time, upon written request of Landlord, execute, acknowledge and deliver to Landlord
or its designee a written statement specifying the following, subject to any modifications necessary to make such statements true and
complete: (i) the total rentable square footage of the Premises; (ii) the date the Lease term commenced and the date it expires; (iii)
the amount of minimum monthly Rent and the date to which such Rent has been paid; (iv) that this Lease is in full force and effect and
has not been assigned, modified, supplemented or amended in any way; (v) that this Lease represents the entire agreement between the
parties; (vi) that all obligations under this Lease to be performed by either party have been satisfied; (vii) that there are no existing
claims, defenses or offsets which the Tenant has against the enforcement of this Lease by Landlord; (viii) the amount of Rent, if any,
that Tenant paid in advance; (ix) the amount of security that Tenant deposited with Landlord; (x) if Tenant has sublet all or a portion
of the Premises or assigned its interest in the Lease and to whom; (xi) if Tenant has any option to extend the Lease or option to purchase
the Premises; and (xii) such other factual matters concerning the Lease or the Premises as Landlord may reasonably request. Tenant acknowledges
and agrees that any statement delivered pursuant to this Section may be relied upon by a prospective purchaser of Landlord’s interest
or assignee of any mortgage or new mortgagee of Landlord’s interest in the Premises. If Tenant shall fail to respond within ten
(10) days to Landlord’s request for the statement required by this Section, Landlord may provide the statement and Tenant shall
be deemed to have admitted the accuracy of the information provided by Landlord.

 

26.
TRANSFER OF LANDLORD’S INTEREST. This Lease shall be assignable by Landlord without the consent of Tenant. In the event of
any transfer or transfers of Landlord’s interest in the Premises, other than a transfer for collateral purposes only, upon the
assumption of this Lease by the transferee, Landlord shall be automatically relieved of obligations and liabilities accruing from and
after the date of such transfer, including any liability for any retained security deposit or prepaid rent, for which the transferee
shall be liable, and Tenant shall attorn to the transferee.

 

27.
LANDLORD’S LIABILITY. Anything in this Lease to the contrary notwithstanding, covenants, undertakings and agreements herein
made on the part of Landlord are made and intended not as personal covenants, undertakings and agreements for the purpose of binding
Landlord personally or the assets of Landlord but are made and intended for the purpose of binding only the Landlord’s interest
in the Premises, as the same may from time to time be encumbered. In no event shall Landlord or its partners, shareholders, or members,
as the case may be, ever be personally liable hereunder. In the event Tenant shall obtain a money judgment against Landlord hereunder,
such judgment shall be satisfied solely out of the proceeds of sale received from execution of such judgment against Landlord’s
right, title, and interest in the Premises, but Landlord shall not be personally liable for such judgment or any deficiency.

 

28.
RIGHT TO PERFORM. If Tenant shall fail to timely pay any sum or perform any other act on its part to be performed hereunder, Landlord
may make any such payment or perform any act on Tenant’s behalf. Tenant shall, within ten (10) days of demand, reimburse Landlord
for its expenses incurred in making such payment or performance. Landlord shall (in addition to any other right or remedy of Landlord
provided by law) have the same rights and remedies in the event of the nonpayment of sums due under this Section as in the case of default
by Tenant in the payment of Rent.

 

    	 

     

    

 

 

29.
HAZARDOUS MATERIAL. As used herein, the term “Hazardous Material” means any hazardous, dangerous, toxic or harmful substance,
material or waste including biomedical waste which is or becomes regulated by any local governmental authority, the State of Washington
or the United States Government, due to its potential harm to the health, safety or welfare of humans or the environment.

 

Tenant
shall not cause or permit any Hazardous Material to be brought upon, kept, or used in or about, or disposed of on the Premises by Tenant,
its employees, officers, agents, servants, contractors, customers, clients, visitors, guests, or other licensees or invitees, except
with Landlord’s prior consent and then only upon strict compliance with all applicable federal, state and local laws, regulations,
codes and ordinances. If Tenant breaches the obligations stated in the preceding sentence, then Tenant shall indemnify, defend and hold
Landlord harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities or losses including, without limitation,
diminution in the value of the Premises; damages for the loss or restriction on use of rentable or usable space or of any amenity of
the Premises, or elsewhere; damages arising from any adverse impact on marketing of space at the Premises; and sums paid in settlement
of claims, attorneys’ fees, consultant fees and expert fees incurred or suffered by Landlord either during or after the Lease term.
These indemnifications by Tenant include, without limitation, costs incurred in connection with any investigation of site conditions
or any clean-up, remedial, removal or restoration work, whether or not required by any federal, state or local governmental agency or
political subdivision, because of Hazardous Material present in the Premises, or in soil or ground water on or under the Premises. Tenant
shall immediately notify Landlord of any inquiry, investigation or notice that Tenant may receive from any third party regarding the
actual or suspected presence of Hazardous Material on the Premises.

 

Without
limiting the foregoing, if the presence of any Hazardous Material brought upon, kept or used in or about the Premises by Tenant, its
employees, officers, agents, servants, contractors, customers, clients, visitors, guests, or other licensees or invitees, results in
any unlawful release of any Hazardous Material on the Premises, Tenant shall promptly take all actions, at its sole expense, as are necessary
to return the Premises or any other property, to the condition existing prior to the release of any such Hazardous Material; provided
that Landlord’s approval of such actions shall first be obtained, which approval may be withheld at Landlord’s sole discretion.
The provisions of this Section shall survive expiration or termination of this Lease.

 

30.
QUIET ENJOYMENT. So long as Tenant pays the Rent and performs all of its obligations in this Lease, Tenant’s possession of
the Premises will not be disturbed by Landlord or anyone claiming by, through or under Landlord.

 

31.
MERGER. The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not work a merger and shall,
at the option of Landlord, terminate all or any existing subtenancies or may, at the option of Landlord, operate as an assignment to
Landlord of any or all of such subtenancies.

 

    	 

     

    

 

 

32.
RIGHT OF FIRST REFUSAL.

 

	a.	Notice
    Requirements. If Landlord desires to sell the Premises during the term of this Lease, Landlord shall first offer the Premises
    to Tenant for purchase by delivering written notice to Tenant of the terms of sale that are acceptable to Landlord (the “Sale
    Notice”). Tenant shall have thirty (30) days following delivery of the Sale Notice to Tenant in order to accept such terms
    set forth therein, whereupon the parties shall negotiate the terms of a definitive agreement for the sale of the Premises (the “PSA”).
    If the parties do not finalize such negotiations and mutually execute the PSA within ninety (90) days after delivery of the Sale
    Notice to Tenant, Tenant’s right to purchase the Premises under this Section 32 shall terminate and Landlord may sell the Premises
    to any third party. Upon such sale of the Premises to a third party, Tenant shall not have any right to purchase the Premises under
    this Section 32.
	 	 
	b.	Expiration.
    If Landlord does not enter into a written agreement with a third party for sale of the Premises within two hundred seventy (270)
    days after delivery of the Sale Notice to Tenant, Tenant’s rights under this Section 32 shall be reinstated. Notwithstanding
    any conflicting provision of this Lease, the right granted Tenant under this Section 32 shall terminate upon termination of this
    Lease.

 

33.
GENERAL. 

 

	a.	 Heirs and Assigns. This Lease shall apply to and be binding upon Landlord and Tenant and their respective heirs, executors, administrators, successors and assigns. 
	 	 
	b. 	Brokers’ Fees. Tenant represents and warrants to Landlord that except for Tenant’s Broker, if any, it has not engaged any firm, finder or other person who would be entitled to any commission or fees for the negotiation, execution or delivery of this Lease and shall indemnify and hold harmless Landlord against any loss, cost, liability or expense incurred by Landlord as a result of any claim asserted by any such firm, finder or other person on the basis of any arrangements or agreements made or alleged to have been made by or on behalf of Tenant. Landlord represents and warrants to Tenant that except for Landlord’s Broker, if any, it has not engaged any firm, finder or other person who would be entitled to any commission or fees for the negotiation, execution or delivery of this Lease and shall indemnify and hold harmless Tenant against any loss, cost, liability or expense incurred by Tenant as a result of any claim asserted by any such firm, finder or other person on the basis of any arrangements or agreements made or alleged to have been made by or on behalf of Landlord. 
	 	 
	c. 	Entire Agreement. This Lease contains all of the covenants and agreements between Landlord and Tenant relating to the Premises. No prior or contemporaneous agreements or understanding pertaining to the Lease shall be valid or of any force or effect and the covenants and agreements of this Lease shall not be altered, modified, or amended to except in writing signed by Landlord and Tenant. 
	 	 
	d. 	Severability. Any provision of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any other provision of this Lease. 
	 	 
	e. 	Force Majeure. Time periods for either party’s performance under any provisions of this Lease (excluding payment of Rent) shall be extended for periods of time during which the party’s performance is prevented due to circumstances beyond such party’s control, including without limitation, fires, floods, earthquakes, lockouts, strikes, embargoes, governmental regulations, acts of God, public enemy, war or other strife. 
	 	 
	f. 	Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of Washington. 

 

    	 

     

    

 

 

	g. 	Memorandum of Lease. Neither this Lease nor any memorandum or “short form” thereof shall be recorded without Landlord’s prior consent. 
	 	 
	h. 	Submission of Lease Form Not an Offer. One party’s submission of this Lease to the other for review shall not constitute an offer to lease the Premises. This Lease shall not become effective and binding upon Landlord and Tenant until it has been fully signed by both of them. 
	 	 
	i. 	Authority of Parties. Each party signing this Lease represents and warrants to the other that it has the authority to enter into this Lease, that the execution and delivery of this Lease has been duly authorized, and that upon such execution and delivery this Lease shall be binding upon and enforceable against the party on signing. 
	 	 
	j. 	Time. “Day” as used herein means a calendar day and “business day” means any day on which commercial banks are generally open for business in the state where the Premises are situated. Any period of time which would otherwise end on a non-business day shall be extended to the next following business day. Time is of the essence of this Lease.
	 	 
	k. 	Survival. Any and all indemnification obligations under this Lease shall survive the termination of this Lease. 

 

34.
EXHIBITS AND RIDERS. The following exhibits and riders are made a part of this Lease, and the terms thereof shall control over any
inconsistent provision in the sections of this Lease:

 

Exhibit
A: Legal Description of the Premises

 

CHECK
THE BOX FOR ANY OF THE FOLLOWING THAT WILL APPLY. CAPITALIZED TERMS USED IN THE RIDERS SHALL HAVE THE MEANING GIVEN TO THEM IN THE LEASE.

 

X
    Payment and Lease Addendum

		☐	Arbitration
                                            Rider 
		☐	Letter
                                            of Credit Rider 
		☐	Guaranty
                                            of Tenant’s Lease Obligations Rider

X

    Option to Extend Rider

 

    	 

     

    

 

 

IN
WITNESS WHEREOF this Lease has been executed the date and year first above written.

 

	Landlord:

 

 

	 	Tenant:

 

	VH SENIOR CARE LLC	 	AFH SENIOR CARE C CORP
	By: 	Vault Holding LLC	 	 	 
	Its:	Manager	 	 	 

 

	 	By:	iCap Vault Management, LLC	 	 	 
	 	Its:	Manager	 	 	 

 

	 	 	By: 	iCap Enterprises, Inc.	 	 	 
	 	 	Its:	Manager	 	 	 

 

	 	/s/
    Jim Christensen	 	 	/s/ Christian Potra
	By:	Jim Christensen	 	By:	Christian Potra
	Its:	Chief Operating Officer	 	Its:	President

 

    	 

     

    

 

 

PAYMENT
AND LEASE ADDENDUM

 

The
terms of this Payment and Lease Addendum are incorporated into the attached Lease Agreement:

 

		1.	The
                                            Base Rent shall be $11,717.00 per month during the first twelve (12) months after the Commencement
                                            Date.
		2.	Effective
                                            as of each anniversary of the Commencement Date (each an “Adjustment Date”),
                                            the Base Rent shall increase to an amount equal to 103% of the Base Rent in effect immediately
                                            prior to such Adjustment Date.

 

All
other terms and conditions of said Agreement remain unchanged.

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