Document:

Exhibit 10.1

 

Final

 

 

 

 

 

 

 

 

 

 

 

LEASE AGREEMENT

 

BETWEEN

 

BIYNAH CLEVELAND, LLC, A DELAWARE LIMITED
LIABILITY COMPANY, BIP CLEVELAND, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AND EDENVALE INVESTORS, LLC, A DELAWARE LIMITED LIABILITY
COMPANY

 

AS LANDLORD

 

AND

 

NEUROONE MEDICAL TECHNOLOGIES CORPORATION,

A DELAWARE CORPORATION

AS TENANT

 

FOR CERTAIN PREMISES LOCATED ON THE REAL
PROPERTY 

 

COMMONLY KNOWN AS:

 

7599 Anagram Drive, Eden Prairie, Minnesota

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

	SCHEDULE	 	1
	 	 	 	 
	1.	LEASE OF PREMISES.	5
	 	(a)	Demise	5
	 	(b)	Term	5
	 	(c)	Possession	5
	 	 	 	 
	2.	RENT.	 	6
	 	(a)	Rent.	6
	 	(b)	Base Rent.	6
	 	(c)	Tenant Reimbursement Amount	6
	 	(d)	Expenses	7
	 	(e)	Taxes	8
		(f)	Payment of Rent.	8
	 	 	 	 
	3.	USE.	9
	 	(a)	Limitation on Use.	9
	 	(b)	Building Fascia Signage.	9
	 	(c)	Quiet Enjoyment	9
	 	 	 	 
	4.	ENVIRONMENTAL MATTERS.	9
	 	(a)	Tenant’s Representations, Warranties and Covenants	9
	 	(b)	Landlord’s Representations, Warranties and Covenants	10
	 	(c)	Notice	10
	 	(d)	Tenant Indemnification.	10
	 	(e)	Disclosure.	11
	 	(f)	Inspection	11
	 	(h)	Definitions	11
	 	 	 	 
	5.	CONDITION OF PREMISES; LANDLORD’S WORK; TENANT’S WORK	12
	 	 	 	 
	6.	UTILITIES AND SERVICES	13
	 	(a)	Tenant’s Utilities and Services	13
	 	(b)	Interruptions in Utilities or Services.	13
	 	 	 	 
	7.	RULES AND REGULATIONS	13
	 	 	 	 
	8.	CERTAIN RIGHTS RESERVED TO LANDLORD	14
	 	 	 	 
	9.	MAINTENANCE AND REPAIRS	14
	 	(a)	Tenant’s Maintenance.	14
	 	(b)	Maintenance of HVAC Units.	15
	 	(c)	Landlord’s Maintenance	15
	 	 	 	 
	10.	ALTERATIONS.	16
	 	(a)	Requirements.	16
	 	(b)	Ownership.	16

 

     

     

    

 

	11.	LIENS.	17
	 	(a)	Lien Claims.	17
	 	(b)	Landlord’s Right to Cure.	17
	 	 	 	 
	12.	INSURANCE	17
	 	(a)	Landlord’s Insurance	17
	 	(b)	Tenant’s Insurance	17
	 	(c)	Waiver of Subrogation.	18
	 	(d)	Avoid Action Increasing Rates.	19
	 	(e)	Failure to Insure.	19
	 	(f)	Representation	19
	 	(g)	Additional Requirements	19
	 	 	 	 
	13.	INDEMNITY	19
	 	(a)	Tenant Indemnity.	19
	 	(b)	Landlord Indemnity	19
	 	 	 	 
	14.	FIRE AND CASUALTY.	20
	 	(a)	Damage	20
	 	(b)	Restoration.	20
	 	 	 	 
	15.	CONDEMNATION	20
	 	 	 	 
	16.	ASSIGNMENT AND SUBLETTING	21
	 	(a)	Transfer.	21
	 	(b)	Permitted Transfer.	21
	 	(c)	Tenant’s Request for Consent.	22
	 	(d)	Excess Rent	22
	 	(e)	Recapture.	22
	 	(f)	Assignment of Sublease Revenues	22
	 	 	 	 
	17.	SURRENDER	23
	 	(a)	Condition at Surrender	23
	 	(b)	Removal of Tenant’s Property.	23
	 	 	 	 
	18.	DEFAULTS AND REMEDIES	23
	 	(a)	Default	23
	 	(b)	Remedies	23
	 	(c)	Other Remedies	24
	 	(d)	Waiver of Trial by Jury.	24
	 	(e)	Attorney’s Fees	24
	 	(f)	Venue	24
	 	(g)	Chronic Defaults	25
	 	 	 	 
	19.	HOLDING OVER	25
	 	 	 	 
	20.	SECURITY DEPOSIT	26

 

     

     

    

 

	21.	ESTOPPEL CERTIFICATE	28
	 	 	 	 
	22.	SUBORDINATION	28
	 	 	 	 
	23.	financial statements	28
	 	 	 	 
	24.	TENANT’S BROKER	28
	 	 	 	 
	25.	NOTICES.	29
	 	 	 	 
	26.	MISCELLANEOUS	29
	 	(a)	Successors and Assigns.	29
	 	(b)	Entire Agreement	29
	 	(c)	Time.	29
	 	(d)	Execution and Delivery	29
	 	(e)	Severability.	30
	 	(f)	Governing Law.	30
	 	(g)	Joint and Several Liability	30
	 	(h)	Force Majeure.	30
	 	(i)	Parking	30
	 	(j)	Captions	30
	 	(k)	No Waiver	30
	 	(l)	No Recording	30
	 	(m)	Relation of Parties.	31
	 	(n)	Recapture Right	31
	 	(o)	Counterparts	31
	 	(p)	Limitation on Landlord’s Liability	31
	 	(q)	Mortgagee Approval	31

 

     

     

    

 

LEASE
AGREEMENT

 

This Lease Agreement
(this “Lease”) is made and entered into as of October 7, 2019, by and between Landlord and Tenant. This Lease
consists of the following Schedule, Terms and Conditions, and Exhibits referenced herein.

 

SCHEDULE

 

For purposes of this
Lease, the following terms shall have the following meanings:

 

	“Landlord:”	
        BIYNAH CLEVELAND, LLC, a Delaware limited
        liability company, BIP CLEVELAND, LLC, a Delaware limited liability company, and EDENVALE INVESTORS, LLC, a Delaware limited liability
        company

         

        c/o Biynah Industrial Partners

        222 South Ninth Street, Suite 2870

        Minneapolis, Minnesota 55402

        Attention: Jeffery M. Josephs

        E-Mail: jeff@biynahpartners.com

         
	 
	“Tenant:”	
        NEUROONE MEDICAL TECHNOLOGIES CORPORATION,
        a Delaware corporation

        10901 Red Circle Drive, Suite 150

        Minnetonka, MN 55343

        Attention: Dave Rosa

        E-Mail: daver@neurooneinc.com

         
	 
	“Building:”	
        That certain building commonly known as
        7599 Anagram Drive, Eden Prairie, Minnesota. The Building is known as “Edenvale I.” The Building consists of approximately
        16,096 square feet.

         

	“Premises:”	
        Approximately 6,993 square feet as shown
        on the plan attached hereto as Exhibit B. (The Premises consists of 6,993 square feet located within the Building.)

         

	“Property:”	The Building, together with the land upon which the Building is situated (the “Land”), all easements, licenses and rights-of-way appurtenant to said land and all other appurtenances thereto and all personal property, fixtures and equipment of Landlord which are used in the operation of the Building and improvements situated on the Land (collectively, the “Property”).  
	“Other Buildings:”	
        Those certain buildings commonly known
        as:

         

        7595 - 7599 Anagram Drive, Eden Prairie,
        Minnesota;

        7623 - 7629 Anagram Drive, Eden Prairie,
        Minnesota; and

        7651 - 7653 Anagram Drive, Eden Prairie,
        Minnesota

         

        The Building and the Other Buildings form
        the complex called “Edenvale Crossing” which consists of approximately 130,781 square feet of space in the aggregate.
        Edenvale Crossing is legally described on Exhibit A attached hereto and made a part hereof.

         

 

    1

     

    

 

	“Term:”	Sixty-Five (65) full calendar months commencing on the Commencement Date and expiring on the Expiration Date unless sooner terminated or extended in accordance with this Lease.

                                                                                 

	“Base
    Rent:”	Month

        Of
        Term
	Annual
        Base Rent

        Per

        Square
        Foot of the Premises
	Annual

        Base
        Rent
	Monthly

        Base
        Rent

	 	1 – 17***	$11.00	$76,923.00	$6,410.25
	 	18 – 29	$11.28	$78,846.08	$6,570.51
	 	30 – 41	$11.56	$80,817.23	$6,734.77
	 	42 – 53	$11.85	$82,837.66	$6,903.14
	 	54 – 65	$12.14	$84,908.60	$7,075.72
	 	 	 	 	 
	 	*** Subject to the Abated Base Rent (as defined herein) for the Abated Base Rent Period as defined herein.
	“Tenant’s Proportionate Share:”	43.45% (which has been determined by dividing the number of square feet in the Premises by the number of square feet of the Building)

                                                                                 

	“Initial Monthly Estimated Tenant Reimbursement Amount:”	$3,997.67
	“Commencement Date:”	The date upon which Landlord delivers possession of the Premises to Tenant with Landlord’s Work (as defined herein) substantially complete.  If the Commencement Date falls on a date which is not the first (1st) day of a calendar month, then the first calendar month shall mean that period from the Commencement Date to the end of the first full calendar month after the Commencement Date.

                                                                                 

	“Expiration Date:”	
        Sixty-Five (65) full months after the Commencement
        Date.

         

	“Base Rent Commencement Date:”	
        Tenant shall pay Base Rent for the period
        from the Commencement Date through the end of the month containing the Commencement Date at the rate of $11.00 per square foot
        of the Premises; then Base Rent shall abate for the first Five (5) full calendar months thereafter in the amount of $6,410.25 per
        month for a total Base Rent abatement of $32,051.25 (unless the Commencement Date is the first day of the month, in which event
        Base Rent shall abate for the first Five (5) full calendar months after the Commencement Date). As an illustration, if the Commencement
        Date is November 15, 2019, Tenant shall pay Base Rent for the period from November 15, 2019 through November 30, 2019 and Base
        Rent shall abate for the months of December 2019 through April 2020; provided however, if the Commencement Date is November 1,
        2019, then Base Rent shall abate for the months of November 2019 – March 2020. The total Base Rent as abated herein shall
        be referred to as the “Abated Base Rent.” The “Base Rent Commencement Date” shall be deemed
        to mean the date immediately after the expiration of the 5-month abatement period described herein.

         

        If Tenant Defaults at any time during the
        Term and fails to cure such Default within any applicable cure period under the Lease, all unamortized Abated Base Rent (i.e.
        based upon the amortization (based on Landlord’s amortization schedule) of the Abated Base Rent in equal monthly amounts
        from the Commencement Date through the Expiration Date) shall immediately become due and payable. The payment by Tenant of the
        Abated Base Rent in the event of a Default shall not limit or affect any of Landlord's other rights, pursuant to this Lease or
        at law or in equity.

 

    2

     

    

 

	“Tenant Reimbursement Amount Commencement Date:”	
        Tenant shall pay the Tenant Reimbursement
        Amount for the period from the Commencement Date through the end of the month containing the Commencement Date; then the Tenant
        Reimbursement Amount shall abate for the first Three (3) full calendar months thereafter (unless the Commencement Date is the first
        day of the month, in which event the Tenant Reimbursement Amount shall abate for the first Three (3) full calendar months after
        the Commencement Date). As an illustration, if the Commencement Date is November 15, 2019, Tenant shall pay the Tenant Reimbursement
        Amount for the period from November 15, 2019 through November 30, 2019 and the Tenant Reimbursement Amount shall abate for the
        months of December 2019 through February 2020; provided however, if the Commencement Date is November 1, 2019, then the Tenant
        Reimbursement Amount shall abate for the months of November 2019 – January 2020. The total Tenant Reimbursement Amount as
        abated herein shall be referred to as the “Abated Tenant Reimbursement Amount.” The “Tenant Reimbursement
        Amount Commencement Date” shall be deemed to mean the date immediately after the expiration of the 3-month abatement
        period described herein. In no event shall Utilities (as defined herein) or Services (as defined herein) abate.

         

        If Tenant Defaults at any time during the
        Term and fails to cure such Default within any applicable cure period under the Lease, all unamortized Abated Tenant Reimbursement
        Amount (i.e. based upon the amortization (based on Landlord’s amortization schedule) of the Abated Tenant Reimbursement
        Amount in equal monthly amounts from the Commencement Date through the Expiration Date) shall immediately become due and payable.
        The payment by Tenant of the Abated Tenant Reimbursement Amount in the event of a Default shall not limit or affect any of Landlord's
        other rights, pursuant to this Lease or at law or in equity.

         

        The Tenant Reimbursement Amount shall be
        subject to the limits set forth in Section 2(d) of this Lease.

         

	“Permitted Use:”	
        General office use, lab space, testing,
        operations, light assembly and any legal use incidental thereto.

         

	“Security Deposit:”	
        $0.00.

         

	“Tenant’s Broker:”	
        Newmark Knight Frank

        100 South Fifth Street, Suite 2150

        Minneapolis, Minnesota 55402

        Attention: Peter Tanis

         
	 
	“Landlord’s Broker:”	
        CBRE

        800 LaSalle Avenue

        Minneapolis, Minnesota 55402

        Attention: Tom Bennett

         
	 
	“Property Manager:”	
        BIP Management, LLC

        c/o Biynah Industrial Partners

        222 South Ninth Street, Suite 2870

        Minneapolis, Minnesota 55402

        Attention: Jeffery M. Josephs

        E-Mail: jeff@biynahpartners.com

         
	 
	EXHIBITS:	A:  Legal Description of Edenvale Crossing
	 	B: Plan of Premises
	 	C:  Rules and Regulations
	 	D:  Commencement Date Agreement
	 	E:  Estoppel Certificate
	 	F:  Landlord’s Work

 

[Signatures on following page.]

 

    3

     

    

 

IN WITNESS WHEREOF, Landlord and Tenant
have executed this Lease in multiple original counterparts as of the date written above.

 

	LANDLORD:	TENANT:
	 	 
	BIYNAH CLEVELAND, LLC, 

a Delaware limited liability company	NEUROONE MEDICAL TECHNOLOGIES, 

a Delaware corporation

 

	By:	/s/ Jeffrey M. Josephs	 	By:	/s/ Dave Rosa
	Name:  	Jeffrey M. Josephs	 	Name:  	Dave Rosa
	Its:  	Manager	 	Its:  	President and Chief Executive Officer

 

BIP CLEVELAND, LLC, a Delaware limited liability company

 

	By:	/s/ Jeffrey M. Josephs	 	 	 
	Name:  	Jeffrey M. Josephs	 	 	 
	Its:  	Manager	 	 	 

 

EDENVALE INVESTORS, LLC, a Delaware limited
liability company

 

	By:	/s/ Jeffrey M. Josephs	 	 	 
	Name:  	Jeffrey M. Josephs	 	 	 
	Its:  	Manager	 	 	 

 

END OF SCHEDULE

 

    4

     

    

 

TERMS
AND CONDITIONS

 

1. LEASE
OF PREMISES.

 

(a) Demise.

 

Subject to the covenants,
terms, provisions and conditions of this Lease, Landlord leases to Tenant the Premises, including all heating, ventilation and
cooling (“HVAC”), electrical, lighting, plumbing, fire protection (sprinkler and alarm) and other units, systems
and equipment located in or exclusively serving the Premises, together with the right in common with others to use all: (i) “Common
Areas” which shall mean those portions of the Property designated by Landlord for the non-exclusive use in common by
all tenants of the Property, including, but not limited to: (A) entrances, corridors, and restrooms; (B) parking facilities (including,
but not limited to, parking stalls, driveways, drive aisles, fire lanes and sidewalks); (C) common loading docks; (D) landscaped
areas; and (E) HVAC, electrical, lighting, plumbing, fire protection and security units, systems and equipment that serve the Common
Areas; and (ii) “Common Building Systems” which shall mean those Building and/or Property units, systems and
equipment which non-exclusively serve the Premises, including, but not limited to, HVAC, electrical, lighting, plumbing, fire protection
and security units, systems and equipment, but excepting and exclusively reserving unto Landlord the use of: (A) roofs; (B) equipment
rooms or similar areas that are used by Landlord for the provision of common Utilities and Services; (C) rights to the land and
improvements below the floor of the Premises; and (D) air rights outside of the Premises. Landlord and Tenant agree that the square
footage of the Premises described in the Schedule is correct and shall not be remeasured. Landlord shall keep and maintain the
Common Areas and the Common Building Systems consistent with the standards of a first class office building in the southwest Minneapolis,
Minnesota market.

 

(b) Term.

 

The Term shall commence
on the Commencement Date and shall expire on the Expiration Date, unless terminated earlier as otherwise provided in this Lease.
Within thirty (30) days after the actual Commencement Date has been ascertained, Landlord and Tenant will execute a Commencement
Date Agreement in the form attached as Exhibit D, which shall acknowledge said actual Commencement Date and the actual Expiration
Date.

 

(c) Possession.

 

Subject to Section 1(d),
Landlord agrees to use commercially reasonable efforts to deliver possession of the Premises to Tenant on the Commencement Date
listed in the Schedule; provided, however, in no event shall Landlord be liable to Tenant if Landlord is unable to deliver possession
of the Premises to Tenant on or before the Commencement Date. If Landlord is unable to deliver possession of the Premises to Tenant
on the Commencement Date listed in the Schedule, then the Commencement Date shall be deemed to be the date Landlord delivers possession
of the Premises to Tenant. Landlord shall be deemed to have delivered possession of the Premises to Tenant on the date Landlord’s
Work (as defined herein) is substantially complete.

 

(d) Early
Access. Provided Tenant has paid the Base Rent provided in Section 2(b), the Tenant Reimbursement Amount provided in Section
2(c) and any certificates of insurance required by this Lease, Landlord grants to Tenant and contractors of Tenant a conditional
license to enter the Premises on October 15, 2019 (the “Early Access Date”) to perform Tenant’s Work (as
defined herein) which shall be performed in accordance with Sections 10 and 11 of this Lease. Tenant shall give to Landlord not
less than five (5) days’ prior written notice of its request to have such access to the Premises, which notice shall contain
and/or shall be accompanied by: (i) a description and schedule for Tenant’s Work; (ii) the names and addresses of all contractors,
subcontractors and material suppliers for whom and which such early access is being requested and the approximate number of individuals,
itemized by trade, who will be present in the Premises; (iii) copies of all contracts pertaining to the performance of Tenant’s
Work for which such early access is being requested; (iv) copies of all plans and specifications pertaining to Tenant’s Work
for which such access is being requested; (v) copies of all licenses and permits required in connection with the performance of
any of Tenant’s Work for which such access is being requested; (vi) certificates of insurance (in amounts and with insured
parties satisfactory to Landlord). All of the foregoing shall be subject to Landlord’s approval, which shall not be unreasonably
withheld. Such early access shall be subject to scheduling by Landlord. Tenant and Tenant’s contractors shall work in harmony
and not interfere with Landlord and Landlord’s contractors in performing any tenant improvement work which Landlord is performing
in the Premises or in other premises within the Building, the Property or in the Common Areas, or with the general operation of
the Property. If at any time such entry shall cause or threaten to cause such disharmony, Landlord may withdraw such license upon
twenty-four (24) hours’ prior written notice to Tenant. Any such entry into and occupation of the Premises by Tenant or its
contractors shall be deemed to be under all of the terms, covenants, conditions and provisions of this Lease, excluding only the
covenant to pay Rent and specifically including the provisions of Sections 12 and 13 thereof. Landlord shall not be liable for
any injury, loss or damage which may occur to any of Tenant’s Work or to property of Tenant placed in the Premises or any
portion of the Premises prior to the Commencement Date, the same being at Tenant’s sole risk and liability. Tenant shall
be liable to Landlord for any damage to the Premises, to any tenant improvement work in the Premises, or the Property which is
caused by Tenant or Tenant’s contractors.

 

    5

     

    

 

2. RENT.

 

(a) Rent.

 

As used in this Lease,
“Rent” shall mean Base Rent, Tenant Reimbursement Amount and all other fees, charges and amounts due from Tenant
under this Lease.

 

(b) Base
Rent.

 

Commencing on the Base
Rent Commencement Date, Tenant shall pay Base Rent in monthly installments in advance on or before 5:00 p.m. Central Time on the
first day of each month of the Term, except that Tenant shall pay to Landlord upon Tenant’s execution of this Lease, the
installment of Base Rent which is due for the month during which the Base Rent Commencement Date occurs which such payment is non-refundable
but shall be credited against Tenant’s Base Rent obligations first becoming due under this Lease.

 

(c) Tenant
Reimbursement Amount.

 

Commencing on the Tenant
Reimbursement Amount Commencement Date, Tenant shall pay the Tenant Reimbursement Amount in advance on or before 5:00 p.m. Central
Time on the first day of each month of the Term, except that Tenant shall pay to Landlord upon Tenant’s execution of this
Lease, the installment of the Tenant Reimbursement Amount which is due for the month during which the Tenant Reimbursement Amount
Commencement Date occurs which such payment is non-refundable but shall be credited against Tenant’s Tenant Reimbursement
Amount obligations first becoming due under this Lease. “Tenant Reimbursement Amount” shall mean an amount equal
to the sum of: (i) Tenant’s Proportionate Share of the Expenses for each calendar year during the Term; and (ii) Tenant’s
Proportionate Share of the Taxes for each calendar year during the Term. Prior to each calendar year during the Term, Landlord
shall furnish Tenant with an estimate of the amount of Tenant Reimbursement Amount owing for such year, and Tenant shall pay Landlord
one-twelfth (1/12th) of such estimate on or before 5:00 p.m. Central Time on the first day of each month during such
year. Landlord may revise such estimate whenever Landlord obtains information relevant to making such estimate more accurate. After
the end of each calendar year during the Term, Landlord shall deliver to Tenant a statement (the “Annual Reconciliation”)
setting forth the actual Expenses and Taxes for such year and the total amount of estimated Tenant Reimbursement Amount that Tenant
has paid and is payable for such year. Within thirty (30) days after receipt of such Annual Reconciliation, Tenant shall pay to
Landlord the amount of Tenant Reimbursement Amount owing for such year, minus all estimated Tenant Reimbursement Amount paid by
Tenant for such year. If the total estimated Tenant Reimbursement Amount paid by Tenant for such year exceeds the amount of Tenant
Reimbursement Amount owing for such year, then Landlord shall apply such excess as a credit against future Rent owing under this
Lease or, if the Term has already ended, Landlord shall promptly refund such excess to Tenant, provided that in each such case,
Tenant is not then in Default hereunder, and without interest to Tenant.

 

Within sixty (60) days after receiving
an Annual Reconciliation from Landlord, Tenant may give Landlord a written notice (the “Audit Notice”) that
Tenant intends to review Landlord’s records of Expenses or Property Expenses for the calendar year pertaining to such Annual
Reconciliation. Within thirty (30) days after its receipt of the Audit Notice, Landlord shall make all pertinent records available
for inspection that are reasonably necessary for Tenant to conduct its review. If any records are maintained at a location other
than the office of the Building, Tenant may either inspect the records at such other location or pay for the reasonable cost of
copying and shipping the records. If Tenant retains an agent to review Landlord’s records, such agent shall be compensated
on a non-contingent fee basis. Tenant shall be solely responsible for all costs, expenses and fees incurred in connection with
the review, except as provided below. Within thirty (30) days after the records are made available to Tenant, Tenant shall have
the right to give Landlord written notice (the “Objection Notice”) stating in reasonable detail all objections
to the applicable Annual Reconciliation. If Tenant fails to provide Landlord with either an Objection Notice or Review Notice within
the time periods set forth herein, Tenant shall be deemed to have approved Landlord’s Annual Reconciliation and shall be
barred from raising any claims regarding the Expenses or Property Expenses for the applicable calendar year. If Tenant timely provides
Landlord with an Objection Notice, Landlord and Tenant shall work together in good faith to resolve the objections set forth in
such Objection Notice. If Landlord and Tenant determine that Expenses or Property Expenses for the applicable calendar year are
less than reported, then: (AA) Landlord shall provide Tenant with a credit against the next installment of Rent in the amount of
the overpayment by Tenant; and (BB) if the Expenses or Property Expenses are more than five percent (5%) less than reported, Landlord
shall reimburse Tenant for the reasonable, documented, out-of-pocket costs and fees paid by Tenant for such review. If Landlord
and Tenant determine that Expenses or Property Expenses for the applicable calendar year are greater than reported, then Tenant
shall then pay Landlord the amount of any underpayment within thirty (30) days after such determination is made. The records obtained
by Tenant and the results of any audit shall be treated as confidential. In no event shall Tenant be permitted to examine Landlord’s
records or to dispute any Annual Reconciliation if a Default then exists.

 

    6

     

    

 

(d) Expenses.
“Expenses” shall mean all expenses, costs and disbursements (other than Taxes) incurred by Landlord in connection
with the ownership, management, operation, maintenance, repair and replacement (as provided herein) of the Property including,
but not limited to, costs of: (i) the Common Areas of the Property; (ii) the Common Building Systems; (iii) the Building’s:
(A) roof; (B) exterior walls (except doors, windows and interior portions of exterior walls); (C) foundation; and (D) structural
components; (iv) any Tenant Utility or Service provided by Landlord pursuant to Section 6(a) of this Lease; (v) premiums paid by
Landlord for policies of insurance (and deductibles paid by Landlord for repairs covered by such policies); (vi) wages, salaries,
benefits and other compensation for all persons directly engaged in the management, operation, maintenance, repair, replacement
and security of the Property, and employer’s Social Security taxes, unemployment taxes or insurance, and any other taxes
which may be levied on such wages, salaries, benefits and compensation; (vii) capital improvements made or installed for the purpose
of reducing Expenses (or the rate of increase of Expenses) or made or installed pursuant to any Law, which costs shall be amortized
by Landlord in accordance with sound accounting and management principles and only the current annual amortization of such costs,
together with interest payable by Landlord on any loan obtained to finance such capital improvement, shall be included in Expenses
for any calendar year; (viii) association dues or fees; (ix) Property Expenses (as defined herein); and (x) a property management
fee in each calendar year not to exceed five percent (5%) of the product of the annual Rent per square foot of the Premises payable
under this Lease for such year (without regard to any rental abatements otherwise in effect), multiplied by the number of square
feet in the Building). If Landlord incurs expenses for the Property together with any other property (such expenses shall be collectively
referred to herein as “Property Expenses”), whether pursuant to a reciprocal easement agreement, common area
agreement or otherwise, the shared costs and expenses shall be equitably prorated and apportioned by Landlord between the Property
and such other property. Expenses shall not include costs of: (1) tenant alterations; (2) expenses deemed to be capital improvements
for the replacement of the roof, foundation or structural components of the Property (except as set forth in clause (vii) of the
preceding paragraph); (3) capital improvements generally (except as set forth in clause (vii) of the preceding paragraph); (4)
interest and principal payments on loans (except interest on any loan obtained to finance any capital improvement for which amortization
may be included in Expenses under clause (vii) of the preceding paragraph); (5) rental payments on any ground leases (except for
rental payments which constitute reimbursement for Taxes or Expenses or any component thereof); (6) advertising expenses; (7) leasing
commissions; (8) any cost or expenditure for which Landlord is reimbursed, whether by insurance proceeds or otherwise, except through
tenant reimbursements; (9) any kind of service furnished to any other tenant in the Building which Landlord does not generally
make available to all tenants in the Building; (10) legal expenses in connection with leasing, tenant disputes or enforcement of
leases; (11) salaries and fringe benefits of employees above the grade of property manager; (12) any deduction for depreciation;
(13) the cost of Landlord's federal, state or local income taxes; (14) charges or fees for, or taxes on, the furnishing of water,
sewer service, gas, fuel, electricity or other utility services to those portions of the Property which are separately metered
to other space; (vi) the cost of providing janitorial service to those portions of the Building which are directly leased to tenants;
(15) expenses included in any other charge payable by Tenant under this Lease; (16) any increase in Landlord’s insurance
premiums to the extent that such increase is caused or attributable to the use, occupancy or act of another tenant; it being the
intent that any such tenant shall be responsible for and bear the cost of said increase; (17) any cost for which Landlord is reimbursed
by warranties, service contracts or condemnation; (18) inheritance, gift, transfer, recordation, franchise, excise, net income,
and profit taxes, capital levies imposed on Landlord and/or the Building. Landlord represents, that: (AA) except as may be otherwise
provided herein, none of the Expenses included in the Tenant Reimbursement Amount shall be included in any other charge paid by
Tenant pursuant to this Lease; and (BB) the Expenses included as part of the Tenant Reimbursement Amount shall be generally consistent
with those types of costs and expenses being imposed by landlords operating similar buildings as the Building in the southwest
Minneapolis, Minnesota market. Notwithstanding the foregoing, Tenant’s liability for payment of Tenant’s Proportionate
Share of Capped Expenses (as defined herein) shall not exceed an amount (the “Cap”) which would result from
Capped Expenses increasing more than three percent (3%) per year over the prior year’s annualized Capped Expenses on a cumulative
basis. “Capped Expenses” means all Expenses except snow and ice removal, insurance, and utilities. In addition,
calendar year 2020 shall be the first year of the Lease (as may be annualized based on the date the Term commences). Each subsequent
calendar year shall be subject to the Cap.

 

    7

     

    

 

(e) Taxes.
“Taxes” shall mean all taxes, assessments and fees levied upon and/or against the Property or the rents collected
therefrom, by any governmental entity based upon the ownership, leasing, renting or operation of the Property, including all reasonable
costs and expenses of protesting any such taxes, assessments or fees. Taxes shall not include any net income, capital stock, succession,
transfer, franchise, gift, estate or inheritance taxes; provided, however, if at any time during the Term, a tax or excise on income
is levied or assessed by any governmental entity, in lieu of or as a substitute for, in whole or in part, real estate taxes or
other ad valorem taxes, such tax shall constitute and be included in Taxes. If Taxes are assessed or imposed on the Property
together with any other property, whether pursuant to a reciprocal easement agreement, common area agreement or otherwise, such
Taxes shall be included in Taxes and shall be equitably prorated and apportioned by Landlord between the Property and such other
property. For the purpose of determining Taxes for any given calendar year, the amount to be included for such calendar year (A)
from special assessments payable in installments shall be the amount of the installment (and any interest) due and payable during
such calendar year, and (B) from all other Taxes shall be the amount due and payable for such calendar year. In no event shall
Taxes be subject to the cap set forth in Section 2(d) of this Lease.

 

(f) Payment
of Rent.

 

The following
provisions shall govern the payment of Rent: (i) Tenant shall pay Rent to “Edenvale Holdings” c/o Landlord’s
Property Manager at the address described in the Schedule, or to such other party or to such other address as Landlord may hereafter
designate by written notice to Tenant; (ii) if the Term commences or ends on a day other than the first day or last day of a calendar
month, then Base Rent and estimated monthly Tenant Reimbursement Amount for the month in which the Term so begins or ends shall
be prorated based upon the ratio that the number of days in the applicable month which fall within the Term bears to the total
number of days in such month; (iii) if the Term commences on a day other than January 1 or ends on a day other than December 31,
then Tenant Reimbursement Amount (including calculation of Capped Expenses) for the first or last partial calendar year within
the Term shall be prorated based on the ratio that the number of days of such partial calendar year which fall within the Term
bears to 365; (iv) all Rent shall be paid to Landlord without demand, offset or deduction, and the covenant to pay Rent shall be
independent of every other covenant in this Lease; (v) any Rent payment owing by Tenant to Landlord which is not paid when due:
(A) shall bear interest from the date due until the date paid at a rate (the “Default Rate”) equal to the greater
of: (1) one and one-half percent (11⁄2%) per month; or (2) four percent (4%) plus the corporate base rate (the “Prime
Rate”) of interest announced from time to time by The Wall Street Journal (or such other national publication as chosen
by Landlord), but in no event higher than the maximum rate permitted by applicable Law; and (B) Tenant shall pay Landlord a late
charge for each and every payment or installment of Rent which is paid more than five (5) days after its due date equal to One
Thousand and 00/100 Dollars ($1,000.00); (vi) if modifications are made to the Building changing the number of square feet contained
in the Building, as determined by Landlord, then Landlord shall make an appropriate adjustment to Tenant’s Proportionate
Share; (vii) Tenant’s agreement to pay any underpayment of Tenant Reimbursement Amount for the calendar year in which the
Term ends, and Landlord’s obligation to refund any overpayments of Tenant Reimbursement Amount for the calendar year in which
the Term ends (provided Tenant is not in Default) shall survive the end of the Term; (viii) each amount owed to Landlord under
this Lease for which the date of payment is not expressly fixed shall be due on the same date as the Rent listed on the statement
showing such amount is due; (ix) if Landlord fails to give Tenant an estimate of Tenant Reimbursement Amount prior to the beginning
of any calendar year during the Term, then Tenant shall continue to pay estimated Tenant Reimbursement Amount at the rate for the
previous calendar year until Landlord delivers such estimate; (x) Landlord shall have the right to apply payments received from
Tenant pursuant to this Lease (regardless of Tenant’s designation of any contrary application) to satisfy any obligations
of Tenant hereunder, in such order and amounts as Landlord in its sole discretion may elect; and (xi) all payments of Rent shall
be made by electronic money transfer in accordance with Landlord’s written instructions regarding the same or by such other
means or method of payment as Landlord may direct in writing (“Landlord’s Payment Method”). If Tenant
fails to pay Rent in accordance with Landlord’s Payment Method, Tenant shall pay Landlord an administration fee equal to
fifteen percent (15%) of the installment of Rent which was paid other than in accordance with Landlord’s Payment Method.

 

    8

     

    

 

3. USE.

 

(a) Limitation
on Use.

 

The Premises shall be
used and occupied solely for the Permitted Use. This Lease and Tenant’s use of the Premises shall be subject to all covenants,
conditions, restrictions, and encumbrances of record; provided, however, Landlord represents and warrants that, to the best of
Landlord’s knowledge, there is no covenant, condition, restriction or encumbrance of record which would prevent Tenant from
conducting the Permitted Use in accordance with this Lease. Tenant shall not cause or permit the Premises to be used in any way
which: (i) constitutes a violation of federal, state or local law, statute, ordinance, code, rule, order or decree including, without
limitation, Environmental Laws (as herein defined) and the American with Disabilities Act (42 U.S.C. § 12101 et. seq.)
(individually, a “Law” and collectively, the “Laws”); or (ii) disturbs or interferes with
the rights of other tenants or occupants of the Property; or (iii) constitutes a nuisance or waste. Tenant shall not use or install
any of Tenant’s Property in or to the Premises which would exceed the legal live load per square foot designated by the structural
engineers for the Building (and Tenant shall ascertain from Landlord such legal live load prior to installing Tenant’s Property).
Tenant shall have access to the Premises twenty-four (24) hours per day, seven (7) days per week subject to the terms and conditions
of this Lease. Landlord represents and warrants to Tenant that Landlord, as of the date of this Lease, has received no notice that
the Premises does not comply with applicable Laws.

 

(b) Building
Fascia Signage.

 

Tenant shall have the
right, at Tenant’s sole cost and expense, to design, install, operate and maintain a sign on the fascia of the Premises subject
to: (i) Landlord’s approval as to the size, design and location of such sign; and (ii) Tenant obtaining all necessary: (a)
private approvals; and (b) governmental approvals, permits and licenses.

 

(c) Quiet
Enjoyment.

 

As long as no Default
exists, Tenant shall peacefully and quietly have and enjoy the Premises for the Term, free from interference by Landlord, subject,
however, to the provisions of this Lease. The loss or reduction of Tenant’s light, air or view will not be deemed a disturbance
of Tenant’s occupancy of the Premises nor will it affect Tenant’s obligations under this Lease or create any liability
of Landlord to Tenant.

 

4. ENVIRONMENTAL
MATTERS.

 

(a) Tenant’s
Representations, Warranties and Covenants.

 

Tenant represents,
warrants and covenants to and with Landlord that:

 

(i) Tenant
has the full right, power, and authority to carry out its environmental obligations hereunder.

 

(ii) Tenant
is financially capable of performing and satisfying its environmental obligations hereunder.

 

(iii) Tenant
is not now, and never has been, in violation of any applicable Environmental Law, including, but not limited to, any Environmental
Law relating to the generation, handling, usage, transportation, treatment, storage, or disposal of Hazardous Materials, nor is
it subject to any threatened, existing, or pending action by any governmental authority in connection therewith.

 

(iv) Tenant’s
generation, handling, usage, transportation, treatment, storage, or disposal of Hazardous Materials at the Premises will: (A) at
all times comply with applicable Environmental Laws; and (B) not cause or allow any Environmental Condition to occur or exist.

 

(v) Tenant,
at its expense, shall comply with each Environmental Law pertaining to the Premises or Tenant’s use of the Premises, and
with all directions, regardless of when they become effective, of all public officers issued pursuant to any Environmental Law,
which shall impose any duty upon the owner or operator with respect to the use or occupancy of the Premises.

 

    9

     

    

 

(vi) Tenant
will not install, use or operate any underground storage tank without the express written permission of Landlord, which permission
may be withheld in Landlord’s sole and arbitrary discretion.

 

(b) Landlord’s
Representations, Warranties and Covenants.

 

Landlord represents,
warrants and covenants with Tenant that:

 

(i) Landlord
has the full right, power, and authority to carry out its environmental obligations hereunder.

 

(ii) Landlord
is financially capable of performing and satisfying its environmental obligations hereunder.

 

(iii) Landlord’s
generation, handling, usage, transportation, treatment, storage, or disposal of Hazardous Materials at the Property will: (A) at
all times comply with applicable Environmental Laws; and (B) not cause any Environmental Condition to occur or exist.

 

(iv) Landlord,
at its expense, shall comply with each Environmental Law pertaining to Landlord’s use of the Property, and with all directions,
regardless of when they become effective, of all public officers issued pursuant to any Environmental Law, which shall impose any
duty upon the owner or operator with respect to the use or occupancy of the Property, except to the same such duties are assumed
by Tenant under this Lease and by other tenants of the Property under their respective leases.

 

(c) Notice.

 

Tenant shall give immediate
written notice to Landlord of: (i) any proceeding or inquiry by any governmental authority with respect to the presence of any
Hazardous Materials on the Premises or the migration thereof from or to other areas of which Tenant has knowledge or receives notice;
(ii) all claims and potential claims made, inquired about, or threatened by any third party against Tenant or the Premises relating
to any loss or injury resulting from any Hazardous Materials of which Tenant has knowledge or receives notice; and (iii) Tenant’s
actual discovery of any occurrence or condition on any property adjoining or in the vicinity of the Premises that could cause the
Property or any part thereof to be subject to any restrictions on the ownership, occupancy, transferability or use of the Property
under any Environmental Law.

 

(d) Indemnification.

 

(i) Tenant
shall defend with counsel reasonably approved by Landlord, all actions against any Landlord Party (as defined herein) with respect
to, and pay, protect, indemnify, and hold harmless, to the extent permitted by Law, the Landlord Parties from and against any and
all Environmental Costs of any nature arising out of, or claimed to be arising out of, any Environmental Conditions caused by Tenant’s
use or occupancy of the Premises or by the acts or omissions of any Tenant Party (as defined herein). Notwithstanding anything
in this Lease to the contrary, Landlord agrees that Tenant shall not be responsible for Environmental Conditions to the extent
that such Environmental Conditions: (A) exist as of the Commencement Date; or (B) to the extent resulting from the actions or omissions
of any Landlord Party. This indemnification shall include without limitation Environmental Costs arising out of any violations
of Environmental Laws, regardless of any real or alleged fault of any person or entity. The foregoing indemnity shall survive the
end of the Term.

 

(ii) Landlord
shall defend with counsel reasonably approved by Tenant, all actions against any Tenant Party with respect to, and pay, protect,
indemnify, and hold harmless, to the extent permitted by Law, the Tenant Parties from and against any and all Environmental Costs
of any nature arising out of, or claimed to be arising out of, any Environmental Conditions caused by Landlord’s use or occupancy
of the Property or by the acts or omissions of any Landlord Party. Notwithstanding anything in this Lease to the contrary, Tenant
agrees that Landlord shall not be responsible for Environmental Conditions to the extent that such Environmental Conditions result
from the actions or omissions of any Tenant Party or any other tenant or occupant of the Property. This indemnification shall include
without limitation Environmental Costs arising out of any violations of Environmental Laws, regardless of any real or alleged fault
of any person or entity. The foregoing indemnity shall survive the end of the Term.

 

    10

     

    

 

(e) Disclosure.

 

Prior to the Commencement
Date, and prior to January 1 of each year of the Term, including January 1 of the year immediately following the year during which
the Term ends, Tenant shall disclose to Landlord in writing the names and amounts of all Hazardous Materials, or any combination
thereof, which were stored, used or disposed of on the Premises, or which Tenant intends to store, use or dispose of on the Premises.
Further, Tenant shall provide Landlord a copy of every document Tenant makes available to any governmental authority or to any
person under any Environmental Law.

 

(f) Inspection.

 

Landlord shall have
the right, but not the duty, to inspect the Premises at any time to determine whether Tenant is complying with the terms of this
Section 4. If Tenant is not in compliance, then Landlord shall have the right to immediately enter upon the Premises to remedy,
at Tenant’s expense, any Environmental Conditions caused by Tenant’s failure to comply, notwithstanding any other provision
of this Lease to the contrary. Such remediation measures shall be done in accordance with the recommendations of Landlord’s
geotechnical engineers and/or consultants, and/or the requirements of any governmental authority having jurisdiction over such
matters. Tenant shall pay to Landlord, as additional rent, all Environmental Costs incurred by Landlord in performing any such
remediation measures within thirty (30) days after Landlord’s written request therefor. Landlord shall use reasonable efforts
to minimize interference with Tenant’s business operations, but Landlord shall not be liable for any interference caused
thereby.

 

(g) Definitions.

 

For purposes of this
Lease, the following terms shall have the following meanings.

 

(i) “Environmental
Law or Laws” shall mean any and all federal, state or local laws, regulations, ordinances, rules, orders, directions,
requirements or court decrees pertaining to health, industrial hygiene, or the environmental conditions on, under or about the
Premises, including, without limitation, the Resource Conservation and Recovery Act, as amended (42 U.S.C. §6901, et seq.),
and regulations promulgated thereunder (“RCRA”); the Comprehensive Environmental Response, Compensation, and
Liability Act, as amended (42 U.S.C. §9601, et seq.), and regulations promulgated thereunder (“CERCLA”),
the Hazardous Materials Transportation Act, as amended (49 U.S.C. §1801, et seq.), and regulations promulgated thereunder;
the Toxic Substances Control Act, as amended (15 U.S.C. §2601, et seq.), and regulations promulgated thereunder; the
Federal Insecticide, Fungicide and Rodenticide Act, as amended (7 U.S.C. §136, et seq.), and regulations promulgated
thereunder; the Federal Water Pollution Control Act (the Clean Water Act), as amended (33 U.S.C. §1251, et seq.), and
regulations promulgated thereunder; the Safe Drinking Water Act, as amended (42 U.S.C. §300f et seq.), and regulations
promulgated thereunder; the Clean Air Act, as amended (42 U.S.C. §7401 et seq.), and regulations promulgated thereunder;
and all parallel, similar or relevant Laws.

 

(ii) “Hazardous
Materials” shall mean any: (A) hazardous waste as defined in RCRA; (B) hazardous substance as defined in CERCLA; (C)
petroleum or liquid petroleum or wastes; and (D) any other toxic or hazardous substances that may be regulated from time to time
by applicable Environmental Laws.

 

(iii) “Environmental
Conditions” shall mean any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, or disposing of Hazardous Materials other than in compliance with applicable Environmental Laws. The term “Environmental
Conditions” includes, but is not limited to, the presence of Hazardous Materials attributable to the operation of any
underground or above-ground storage tanks, oil/water separators, or in-ground hydraulic lifts or hoists, and associated equipment.

 

    11

     

    

 

(iv) “Environmental
Costs” shall mean any and all judgments, damages, penalties, fines, costs, liabilities, obligations, losses, or expenses
of whatever kind and nature (including, without limitation, diminution in value of the Property, damages for the loss or restriction
on use of leaseable space, damages arising from any adverse impact on marketing of space, sums paid in settlement of claims, attorney
fees, consultant fees and expert fees), arising from or incurred in connection with Environmental Conditions, including, but not
limited to, those relating to the presence, investigation, or remediation of Hazardous Materials.

 

5. CONDITION
OF PREMISES; LANDLORD’S WORK; TENANT’S WORK.

 

(a) Except
for the work described on Exhibit F attached hereto and made a part hereof (“Landlord’s Work”),
no agreement of Landlord to alter, remodel, decorate, clean or improve the Premises, the Building or the Property or to demolish
and/or remove any improvements, equipment or property located in the Premises (or to provide Tenant with any credit or allowance
for any of the foregoing), and no representation regarding the condition of the Premises or the Property have been made by or on
behalf of Landlord or relied upon by Tenant, it being agreed that Tenant shall accept the Premises in an “as-is” “where-is”
condition and configuration on the Commencement Date; provided, however, nothing in this sentence shall be deemed to abrogate Landlord’s
maintenance, repair and replacement obligations as set forth in, and subject to the conditions of, this Lease. Landlord agrees
that Landlord’s Work shall be performed in accordance with all applicable Laws. Subject to the terms and conditions of this
Lease, Tenant, at its expense, shall perform certain tenant improvement work and install Tenant’s trade fixtures, equipment
and property in order to make the Premises ready for Tenant’s initial use and occupancy (collectively, “Tenant’s
Work”). Tenant, at its expense, shall: (i) obtain any and all certificates of occupancy, special use permits, business
licenses and other permits and licenses which may be required by applicable Law for Tenant’s use and occupancy of the Premises;
and (ii) make any and all improvements, alterations and additions to the Premises which may be required to obtain such certificates,
permits and licenses and shall cause the Premises to comply with all Laws. The failure of Tenant to obtain any such certificate,
permit or license shall not be a condition precedent to Tenant’s obligation to pay Rent or to perform any of its other obligations
hereunder or affect the validity of this Lease. Tenant’s Work shall be installed at Tenant’s sole cost and expense
and in compliance with all Laws.

 

(b) On
or before the date five (5) days after the date of this Lease, Tenant shall prepare and furnish to Landlord, at Tenant’s
cost and expense, in compliance with applicable laws, statutes, ordinances and codes, a complete set of working drawings, plans
and specifications (“Tenant’s Drawings”) which Tenant’s Drawings shall include, without limitation,
floor plans, details of any special installation which will affect the Building or perimeter walls of the Premises, complete plans
for all mechanical, plumbing and electrical work including details of underfloor surfaces, specifications for all materials, finishes
and other work, and performance characteristics for fixtures and equipment. Tenant’s Drawings shall be full and complete
in all respects as may be necessary for construction and determination of the specific scope of Tenant’s Work. Tenant’s
Drawings shall be certified (sealed) by an architect duly registered in the State of Minnesota. After Tenant submits Tenant’s
Drawings to Landlord, Landlord shall have five (5) days to approve or disapprove Tenant’s Drawings, and in the event Landlord
does not approve the same, Landlord shall advise Tenant of Landlord’s comments to Tenant’s Drawings. Failure by Landlord
to approve or disapprove Tenant’s Drawings within the time limits prescribed herein shall constitute a disapproval by Landlord.
In the event Landlord disapproves Tenant’s Drawings, Tenant shall incorporate Landlord’s comments into Tenant’s
Drawings within ten (10) days from receipt thereof and resubmit the same to Landlord, who shall have ten (10) days to approve or
disapprove the revised Tenant’s Drawings. In the event Landlord does not approve the same, the procedures set forth herein
shall be followed until such time as Landlord has approved the revised Tenant’s Drawings. Tenant’s Drawings shall be
approved by Landlord and Tenant by affixing thereon the signature or initials of an authorized officer or employee of each of the
respective parties hereto. The signature of an authorized officer or employee shall be deemed conclusive evidence of the approval
indicated by such signature. Landlord and Tenant agree to appoint competent personnel to work with the other party in the preparation
of Tenant’s Drawings. In the event Tenant desires or is required to modify or change Tenant’s Drawings after the same
have been approved in the manner provided above, Tenant shall submit such modifications or changes to Landlord for review and consideration
and the procedures governing approval of Tenant’s Drawings shall apply to any such modifications or changes. Any approval
by Landlord of any of Tenant’s Drawings shall not in any way be construed or operate to bind Landlord or to constitute a
representation or warranty of Landlord as to the adequacy or sufficiency of Tenant’s Drawings, or the improvements to which
they relate, for any reason, purpose or condition, but such approval shall merely be the consent of Landlord, as may be required
hereunder, in connection with performance of Tenant’s Work in accordance with Tenant’s Drawings.

 

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6. UTILITIES
AND SERVICES.

 

(a) Tenant’s
Utilities and Services.

 

Tenant shall contract
in its own name and timely pay all charges for all: (i) utilities including, but not limited to, gas, electricity, water, fuel,
and sewer (individually, a “Utility” and collectively the “Utilities”); and (ii) services
including, but not limited to, telephone, security, alarm, janitorial, trash and debris removal and pest control (individually,
a “Service” and collectively the “Services”) used in, servicing or assessed against the Premises,
unless otherwise herein expressly provided. If Landlord elects to itself provide any Utility or Service to the Premises, then:
(A) Tenant shall pay to Landlord all costs of furnishing such Utility or Service to the Premises, if such Utility or Service is
separately sub-metered to the Premises (or Landlord is otherwise able to fairly allocate the cost of such Utility or Service to
the Premises); or (B) all costs for furnishing such Utility or Service to the Premises shall be included in Expenses, if such Utility
or Service is provided to the Premises together with any or all other tenant spaces located in the Building (or Landlord otherwise
elects to include the cost of such Utility or Service in Expenses). Tenant’s obligation to pay for Utilities and Services
shall commence upon the earlier to occur of the Early Access Date and the Commencement Date.

 

(b) Interruptions
in Utilities or Services.

 

Tenant agrees that
Landlord shall not be liable for damages for any failure or interruption in furnishing any Utility or Service nor shall any such
failure or interruption be considered to be an eviction or disturbance of Tenant’s use of the Premises, or relieve Tenant
from its obligation to pay any Rent when due or from any other obligations of Tenant under this Lease. Notwithstanding the foregoing,
if any such failure or interruption is caused by the negligence or willful misconduct of any Landlord Party, and such failure or
interruption continues for five (5) consecutive business days and as a result thereof Tenant is unable to and does not use all
or any significant portion of the Premises for the normal conduct of business (except storage of Tenant’s property), then
for so long as the failure or interruption continues thereafter, Base Rent and Tenant Reimbursement Amount shall be abated in the
same proportion that the leaseable area of the portion of the Premises which Tenant is unable to (and does not) use as a result
of the failure or interruption bears to the total leaseable area of the Premises, provided that in the event the condition exists
solely in the Premises, the abatement shall not commence until the sixth (6th) consecutive business day after Tenant
notified Landlord of such condition. The aforesaid abatement shall be Tenant’s sole remedy and Landlord’s sole liability
for any failure or interruption in furnishing Utilities and Services to the Premises, and in no event shall Landlord be liable
for Tenant’s loss of business or profits.

 

7. RULES
AND REGULATIONS.

 

Tenant shall observe
and comply, and shall cause the Tenant Parties to observe and comply, with the rules and regulations listed on Exhibit C
attached hereto and with such reasonable modifications and additions thereto as Landlord may make from time to time (collectively,
the “Rules and Regulations”). Landlord shall not be liable for failure of any person to obey the Rules and Regulations.
Landlord shall not be obligated to enforce the Rules and Regulations against any person, and the failure of Landlord to enforce
the Rules and Regulations shall not constitute a waiver thereof or relieve Tenant from compliance therewith.

 

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8. CERTAIN
RIGHTS RESERVED TO LANDLORD.

 

Landlord reserves the
following rights, each of which Landlord may exercise without notice to Tenant and without liability to Tenant, and the exercise
of any such rights shall not be deemed to constitute an eviction or disturbance of Tenant’s use or possession of the Premises
and shall not give rise to any claim for set-off, deduction, or abatement of rent or any other claim: (a) to change the name or
street address of the Property, the Building or the Premises; (b) to install, affix and maintain any and all signs (including “For
Lease” or “For Sale” signs) on the exterior or interior of the Building and in and about the Property; (c) to
make repairs, decorations, alterations, additions, or improvements, whether structural or otherwise, in and about the Property,
including, without limitation, expansion or contraction of the land upon which the Building is situated and/or the leaseable area
of the Building, alterations of the location or configuration of all Common Areas, and for such purposes to enter upon the Premises,
temporarily close doors, corridors and other areas in the Building and interrupt or temporarily suspend Utilities or use of Common
Areas; provided, that Landlord shall use commercially reasonable efforts to maintain reasonable accessibility to the Premises and
shall minimize disruption to Tenant’s business activities; (d) to retain at all times, and to use in appropriate instances,
keys to all doors within and into the Premises; (e) to grant to any person or to reserve unto itself the exclusive right to conduct
any business or render any service in or to the Building and/or the Property, so as long as such right does not preclude Tenant
from using the Premises for the purpose stated herein; (f) to show or inspect the Premises at reasonable times and, if vacated
or abandoned, to prepare the Premises for re-occupancy; (g) to install, use and maintain in and through the Premises pipes, conduits,
wires and ducts serving the Building, provided that such installation, use and maintenance does not unreasonably interfere with
Tenant’s use of the Premises; (h) to regulate delivery and usage of the loading docks, staging areas, drive aisles and parking
areas within the Common Areas; and (i) to take any other action which Landlord deems reasonable in connection with the operation,
maintenance or preservation of the Property.

 

9. MAINTENANCE
AND REPAIRS.

 

(a) Tenant’s
Maintenance.

 

Tenant, at its expense,
shall keep and maintain the Premises in good and sanitary condition, working order and repair (including making any necessary replacements
except for those replacements which are the responsibility of Landlord as provided in this Lease) and in compliance with all applicable
Laws including, but not limited to: (i) doors; (ii) loading docks serving the Premises; (iii) hoists and cranes; (iv) interior
and exterior windows (Tenant shall promptly replace any broken glass with glass of the same kind, size and quality); (v) interior
walls and interior portions of exterior walls; (vi) ceilings; (vii) floors (but not any subfloor); (viii) utility meters; (ix)
pipes and conduits: (A) located inside of (or exclusively serving) the Premises from and after the point of connection to the Premises;
and (B) located outside of the Premises and which are installed by or on behalf of Tenant; and (x) HVAC, electrical, lighting (including,
without limitation, all light fixtures, tubes, bulbs and ballasts), plumbing and fire protection and other units, systems and equipment
located inside or on (or exclusively serving) the Premises. Tenant shall perform all maintenance, repairs or replacements in a
good, workmanlike and lien-free manner, consistent with the quality of labor and materials used in the initial build-out of the
Premises and in accordance with all applicable Laws. If Tenant fails to make any maintenance, repairs or replacements to the Premises
which is required of Tenant and such failure continues for more than fifteen (15) days after written notice from Landlord (although
notice shall not be required if there is an emergency), then Landlord may itself make the required maintenance, repairs or replacements,
and Tenant shall pay the cost of such maintenance, repairs or replacements to Landlord, together with an administrative charge
in an amount equal to fifteen percent (15%) of the cost of such maintenance, repairs or replacements. Tenant shall permit no waste,
damage or injury to the Premises, and shall initiate and carry out a program of regular maintenance and repair of the Premises
including, but not limited to, the painting and refinishing of all areas so as to impede, to the extent possible, deterioration
by ordinary wear and tear, and to keep the same in substantially the same condition as existed on the Commencement Date. Notwithstanding
the foregoing, Tenant shall make no alteration to or adjustment of the fire protection (sprinkler and alarm) systems, if any, without
Landlord’s prior written consent. Notwithstanding anything in this Section 9(a) to the contrary, Landlord, at its sole option,
may upon prior written notice to Tenant elect to engage its own contractor(s) to perform any or all of Tenant’s maintenance,
repair and replacement obligations described in this Section 9(a), in which event: (A) Tenant’s maintenance, repair and replacement
obligations herein shall be suspended during the applicable periods with respect to those maintenance, repair and replacement obligations
performed by Landlord’s contractor; and (B) the cost of the maintenance, repair and replacement obligations performed by
Landlord’s contractor shall be directly billed by Landlord to Tenant (if Landlord is not performing such maintenance, repair
and replacement obligations for tenants of the Property generally), or shall be included in Expenses (if Landlord is performing
such maintenance, repair and replacement obligations for tenants of the Property generally). Landlord shall, at its cost and expense,
be responsible for all repair and/or replacement (the necessity of which to be reasonably determined by Landlord) to any HVAC,
electrical and plumbing equipment located inside or on (or exclusively serving) the Premises during the initial twelve (12) months
of the Term. If, however, Tenant has not satisfied its obligations pursuant to this Section 9(a) or Section 9(b) or Tenant has
otherwise defaulted in the performance of its obligations under this Lease, or the negligence or misconduct of Tenant caused the
need for such repair or replacement, then Tenant (and not Landlord) shall, at its cost and expense, be responsible for all repair
and/or replacement to any such equipment during such initial 12-month period.

 

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(b) Maintenance
of HVAC Units; Repair Cap.

 

(i) Tenant,
at its expense, shall at all times during the Term, employ contractors that shall be designated or approved by Landlord to perform
Tenant’s obligations for maintaining, repairing and replacing the following units, systems and equipment: (A) the HVAC units,
systems and equipment located inside of (or exclusively serving) the Premises subject to the terms of this Section 9(b); and (B)
the fire protection, sprinkler and alarm systems and equipment located inside of (or exclusively serving) the Premises. Tenant
shall provide Landlord with a copy of each such maintenance contract prior to the Commencement Date (and at least thirty (30) days
prior to the end of such contract, Tenant shall provide Landlord with a copy of a written extension of such contract or a replacement
contract). Such maintenance shall include at least quarterly inspections and cleaning of the applicable units, systems and equipment,
together with such adjustments and servicing as each such inspection discloses to be recommended or required, and all repairs,
testing and servicing as shall be necessary or reasonably required by Landlord, and Tenant shall send to Landlord within ten (10)
days after receipt, a copy of each such inspection report received by Tenant. Nothing contained in this Section 9(b) shall be deemed
to be a guarantee by Landlord of the performance or responsibility of any contractor designated or approved by Landlord as herein
provided, and Tenant waives all claims against the Landlord Parties for damages to person or property sustained by Tenant or any
person claiming through Tenant resulting from, or in any way concerned with, Tenant’s employment of a contractor pursuant
to the provisions of this Section 9(b).

 

(ii) Notwithstanding
Section 9(b)(i) to the contrary, Landlord, at its sole option, may upon prior written notice to Tenant elect to engage its own
contractor(s) to perform any or all of the inspections, cleaning and servicing described in this Section 9(b) during or for any
periods, in which event: (A) Tenant’s obligations herein shall be suspended during the applicable periods and with respect
to those inspections, cleaning and servicing performed by Landlord’s contractor; and (B) the cost of the inspections, cleaning
and services performed by Landlord’s contractor shall be directly billed by Landlord to Tenant (if Landlord is not providing
such inspections, cleaning and servicing to tenants of the Property generally), or shall be included in Expenses (if Landlord is
providing such inspections, cleaning and servicing to tenants of the Building or Property generally).

 

(iii) Anything
in this Section 9(b) to the contrary notwithstanding, and provided Tenant has satisfied its obligations pursuant to this Section
9(b) and so long as Tenant has not defaulted in the performance of its obligations under this Lease, if any HVAC unit which is
not a New HVAC Unit (each, an “Existing HVAC Unit”) requires total replacement (as opposed to repair) as determined
by the HVAC contractor servicing the HVAC units, systems and equipment pursuant to Section 9(b)(i), then Landlord shall be responsible
for the cost of such replacement (such replaced Existing HVAC Unit shall then be deemed a “New HVAC Unit”).
After the installation of any New HVAC Unit, Tenant shall be solely responsible for the cost of replacement, maintenance and/or
repair of such New HVAC Unit, without limitation. With respect to an Existing HVAC Unit, provided Tenant has satisfied its obligations
pursuant to this Section 9(b) and so long as Tenant has not defaulted in the performance of its obligations under this Lease, Tenant’s
liability for the cost of repairs to any Existing HVAC Unit shall not exceed an amount (each, an “Existing HVAC Repair
Cap”) equal to One Thousand Five Hundred and 00/100 Dollars ($1,500.00) per unit per occurrence, it being understood
that for each such repair to any Existing HVAC Unit, Tenant shall pay up to and including the Existing HVAC Repair Cap and Landlord
shall pay for each such repair to any Existing HVAC Unit any amount over the Existing HVAC Repair Cap. If, however, Tenant has
not satisfied its obligations pursuant to this Section 9(b) or Tenant has defaulted in the performance of its obligations under
this Lease, then Tenant shall pay the entire cost of replacement, maintenance and/or repair of such Existing HVAC Unit, without
limitation. The cost of the repairs and replacements performed by Landlord’s contractor pursuant to this Section 9(b)(iii)
shall be included in Expenses subject to the conditions and limitations set forth in Section 2(d).

 

(c) Landlord’s
Maintenance.

 

Landlord shall keep
and maintain in good and sanitary condition, working order and repair (including making any necessary replacements) and in compliance
with applicable Laws: (i) the Common Areas; (ii) the Common Building Systems; and (iii) the Building: (A) roof; (B) exterior walls
(except doors, windows and interior portions of exterior walls); (C) foundation; and (D) structural components, the cost of which
shall be included in Expenses except as limited in Section 2(d) of this Lease. Landlord shall not be in default with respect to
its obligations to make any repairs unless and until Tenant has given written notice to Landlord of the need to make such repairs,
and Landlord has failed to commence to make such repairs within a reasonable time after receipt of such notice, or fails to proceed
with reasonable diligence to complete such repairs. Tenant shall reimburse Landlord for the cost of any such repairs or replacements
to the Building or Property necessitated by the acts or omissions of any Tenant Party.

 

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10. ALTERATIONS.

 

(a) Requirements.

 

Tenant shall not make
any opening in the roof, exterior walls or demising walls of the Building or any other alteration, improvement or addition to or
removal from the Premises (individually, an “Alteration” and collectively the “Alterations”)
without the prior written consent of Landlord in each such instance. In the event Tenant proposes to make any Alteration, Tenant
shall, prior to commencing such Alteration, submit to Landlord for prior written approval: (i) detailed plans and specifications
reasonably acceptable to Landlord (and Tenant shall thereafter submit to Landlord for approval any and all proposed changes to
such plans and specifications); (ii) names and addresses of all contractors reasonably acceptable to Landlord and copies of all
contracts with said contractors; (iii) a detailed cost estimate, certified by the architect who prepared the plans and specifications;
(iv) all necessary permits evidencing compliance with all applicable governmental rules, regulations and requirements; (v) certificates
of insurance in form and amounts reasonably required by Landlord, naming the Landlord Parties as additional insureds; and (vi)
all other documents and information as Landlord may reasonably request in connection with such Alteration. Notwithstanding the
foregoing to the contrary, Landlord’s consent shall not be required (but Tenant shall give Landlord not less than ten (10)
days’ prior written notice) for any Alteration that: (A) satisfies all of the following criteria: (1) will not affect the
HVAC, electrical, lighting, plumbing, fire protection, security and structural units, systems and equipment of the Building; (2)
does not require openings on the roof or exterior walls of the Building; and (3) does not exceed Twenty Thousand and 00/100 Dollars
($20,000.00) in any one instance and Seventy-Five Thousand and 00/100 ($75,000.00) in the aggregate in any twelve (12) month period;
or (B) satisfies all of the following criteria (“Cosmetic Work”): (1) is of a cosmetic nature such as painting,
wallpapering, and carpet installation; (2) will not affect the HVAC, electrical, lighting, plumbing, fire protection, security
and structural units, systems and equipment of the Building; and (3) does not require work to be performed inside the walls or
above the ceiling of the Premises; provided, however, that the performance of Cosmetic Work shall remain subject to all of the
other provisions of this Section 10. Tenant shall pay the entire cost of any Alteration (which for all purposes of this Lease,
except as provided in the next following grammatical sentence, includes Cosmetic Work) and, if requested by Landlord, shall deposit
with Landlord prior to the commencement of any Alteration, security for the payment and completion of such Alteration in form and
amount required by Landlord. Provided that the Alteration is not Cosmetic Work, Tenant shall pay to Landlord within thirty (30)
days after billing an amount equal to the greater of: (aa) the sum of: (xx) Landlord’s actual and reasonable out-of-pocket
costs and expenses paid to third parties for the review of Tenant’s plans and specifications for such Alteration; and (yy)
a fee for Landlord’s coordination of such Alteration equal to ten percent (10%) of the cost of such Alteration; and (bb)
Five Hundred Dollars ($500.00). Landlord’s approval of any Alteration shall not constitute a representation by Landlord that
such Alteration complies with applicable Laws and insurance company requirements or will be adequate for Tenant’s use. All
Alterations: (aaa) shall be performed in a good and workmanlike manner, in accordance with the plans and specifications approved
by Landlord; (bbb) shall be performed by union contractors if required by Landlord and at times and in accordance with rules, regulations
and procedures reasonably established by Landlord to avoid disruption to Landlord’s other tenants, employees and contractors;
(ccc) shall meet or exceed the standards for construction and quality of materials established by Landlord for the Building; and
(ddd) shall be performed in compliance with all applicable Laws and insurance company requirements. Upon completion of any Alteration,
Tenant shall deliver to Landlord all contractor’s and subcontractor’s affidavits and full and final waivers of lien
for all labor, services or materials and “as-built” plans of such Alteration.

 

(b) Ownership.

 

Each Alteration, whether
temporary or permanent in character, made by Landlord or Tenant in and upon the Premises (excepting only Tenant’s Property)
shall become Landlord’s property and shall remain upon the Premises at the expiration or termination of this Lease without
compensation to Tenant; provided, however, that Landlord shall have the right to require Tenant to remove such Alteration or any
portion of such Alteration (the “Required Removables”) at Tenant’s sole cost and expense in accordance
with Section 17 below. Tenant, at the time it requests Landlord’s consent for any proposed Alteration, may request in writing
that Landlord advise Tenant if such Alteration or any portion of such Alteration will be required to be removed. Landlord shall
advise Tenant in writing as to which portions of such Alteration, if any, will be required to be removed at the same time as (but
shall be an independent determination from) Landlord’s consent to the making of such Alteration.

 

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11. LIENS.

 

(a) Lien
Claims.

 

Tenant shall not do
any act which shall in any way encumber the title of the Landlord in and to the Property nor shall any interest or estate of Landlord
in the Property be in any way subject to any claim by way of lien or encumbrance, whether by operation of law or by virtue of any
express or implied contract by Tenant, and any claim to or lien upon the Property arising from any act or omission of Tenant shall
accrue only against the leasehold estate of Tenant under this Lease and shall in all respects be subject and subordinate to the
paramount title and rights of Landlord in and to the Property. Tenant will not permit the Property to become subject to any mechanics’,
laborers’, or materialmen’s lien on account of labor or material furnished to Tenant or claimed to have been furnished
to Tenant in connection with work of any character performed or claimed to have been performed on the Premises by or at the direction
or sufferance of Tenant; provided, however that Tenant shall have the right to contest in good faith and with reasonable diligence,
the validity of any such lien or claimed lien if Tenant shall first either (x) give to Landlord an amount equal to one hundred
twenty percent (120%) of the amount of the lien or claimed lien which, together with interest thereon, shall be held by Landlord
as security to insure payment thereof and to prevent any sale, foreclosure or forfeiture of the Property by reason of non-payment
thereof: (i) bond over such lien in accordance with the statutory bonding procedures (if any) in effect in the state in which the
Property is located so that such lien is no longer an encumbrance against title to the Property; or (ii) cause a title insurance
company satisfactory to Landlord to insure over such lien in favor of Landlord, any present or future Mortgagee and any prospective
purchaser of the Property. If Tenant elects to deposit such sums with Landlord, then Landlord shall hold the amount so deposited
with Landlord in an account established at a federally insured banking institution until satisfactory removal of said lien or claim
of lien. On any final determination of the lien or claim for lien, Tenant will immediately pay any judgment rendered, with all
proper costs and charges, and will, at its own expense, have the lien released and any judgment satisfied. If Tenant fails to diligently
contest and pursue such lien contest, Landlord may, at its option, use the sums so deposited to discharge any such lien upon the
renewal of such lien or encumbrance Landlord shall pay all such sums remaining on deposit to Tenant.

 

(b) Landlord’s
Right to Cure.

 

If Tenant shall fail
to contest the validity of any lien or claimed lien or fail to either give security to Landlord to insure payment thereof or to
bond or insure over such lien, or shall fail to prosecute such contest with diligence, or shall fail to have the same released
and satisfy any judgment rendered thereon, then Landlord may, at its election (but shall not be so required) remove or discharge
such lien or claim for lien (with the right, in its discretion, to settle or compromise the same), and any amounts advanced by
Landlord, including reasonable attorneys’ fees, for such purposes shall be so much additional rent due from Tenant to Landlord
on the first day of the next calendar month after any such payment, with the interest thereon at the Default Rate from the date
so advanced until the date paid in full.

 

12. INSURANCE.

 

(a) Landlord’s
Insurance.

 

Landlord shall purchase
and maintain in effect throughout the Term, policies of insurance (the “Building Insurance”) covering the Building
and the Property, which insurance shall be for the benefit of and shall name: (i) Landlord as named insured; and (ii) each Mortgagee,
against risks or hazards which are now or may hereafter be customarily insured against under “special form” causes
of loss and loss of rent coverage for at least one (1) year and such other risks or hazards which are now or may hereafter be customarily
insured against with respect to properties similar in construction, design, general location, use and occupancy to the Building
and the Property. The Building Insurance coverage shall equal: (A) one hundred percent (100%) of the replacement cost of the Building
and the Property (excluding tenant spaces); and (B) the replacement cost of all additions, improvements and alterations to the
Premises paid for by Landlord.

 

(b) Tenant’s
Insurance.

 

Tenant, at its expense,
shall purchase and maintain in effect throughout the Term, the following policies of insurance, for the benefit of Tenant and naming
the Landlord Parties, as additional insureds, issued by companies licensed to do business in the State in which the Property is
located and which have an “A.M. Best’s” rating of “A-XII” or higher with the following coverages
in the following amounts (and with any increases in such amounts which Landlord may require upon not less than 30 days’ prior
written notice to Tenant; provided such increases are consistent with the limits then being required of tenants by other landlords
of comparable buildings in the same geographic area as the Building):

 

(i) Commercial
General Liability Insurance on a primary and non-contributory basis, insuring Tenant and naming the Landlord Parties and any other
parties designated by Landlord from time to time as additional insureds, covering, without limitation, any liability for bodily
injury, personal injury, including death, and property damage arising out of Tenant’s operations, acts, omissions, assumed
liabilities or use of the Premises, with coverage of not less than One Million Dollars ($1,000,000) per occurrence, Two Million
Dollars ($2,000,000) general aggregate and containing a deductible not in excess of Ten Thousand Dollars ($10,000).

 

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(ii) Property
Insurance including, but not limited to, fire, sprinkler leakage, vandalism, flood and earthquake coverage (y) in amounts which,
together with the amounts of insurance coverage which Landlord is required to maintain pursuant to Section 12(a) above, would cover
the full replacement cost of all additions, improvements and alterations to the Premises and providing that the Landlord Parties
and any other parties designated by Landlord from time to time are loss payees or additional insureds as their interests may appear,
and (z) covering all office furniture, trade fixtures, office equipment, machinery, movable partitions, wall and floor coverings,
inventory, merchandise and all other items of Tenant’s property on the Premises (collectively, “Tenant’s Property”).
Such insurance shall be written on an “all risks” of physical loss or damage basis, for the full replacement cost value
of the covered items and in amounts that meet any coinsurance clause of the policies of insurance. In the event of a loss, the
proceeds of such insurance shall be used for the repair or replacement of the property insured; except that if this Lease is terminated
following a casualty, the proceeds applicable to the Building and/or the Property shall be paid to Landlord and the proceeds applicable
to Tenant’s Property shall be paid to Tenant.

 

(iii) Worker’s
Compensation Insurance covering all employees of Tenant performing work in, on, or with respect to the Premises, in amounts not
less than those required by Law.

 

(iv) Employers
liability insurance covering all employees of Tenant performing work in, on or with respect to the Premises, in amounts not less
than One Million Dollars ($1,000,000) for each accident and One Million Dollars ($1,000,000) for diseases of each employee, agent
and contractor.

 

(v) Extra
expense and business interruption insurance with limits not less than twelve (12) months of Base Rent and Tenant Reimbursement
Amount, naming Landlord as loss payee, as its interest may appear.

 

(vi) Automobile
Insurance on a primary and non-contributory basis, insuring Tenant and naming the Landlord Parties and any other parties designated
by Landlord from time to time as additional insureds, covering all owned, non-owned and hired automobiles with limits of liability
of not less than One Million Dollars ($1,000,000) for bodily injury to any one person, and One Million Dollars ($1,000,000) for
property damage for each accident. Such insurance shall provide that the insurance company waives the rights of recovery or subrogation
against the Landlord Parties and their insurers.

 

(vii) Umbrella
or Excess Liability coverage on a primary and non-contributory basis, insuring Tenant and naming the Landlord Parties and any other
parties designated by Landlord from time to time as additional insureds, in amounts not less than Three Million Dollars ($3,000,000).

 

Tenant shall concurrently
with Tenant’s execution of this Lease and from time to time thereafter upon insurance renewals, furnish to Landlord certificates
of insurance evidencing such coverage and with renewal certificates no less than thirty (30) days prior to the expiration of such
policies, which certificates of insurance shall state that such insurance coverage may not be amended, changed or canceled without
at least thirty (30) days’ prior written notice to Landlord and Tenant.

 

(c) Waiver
of Subrogation.

 

Landlord and Tenant
each waives any and every claim for recovery from the other for any and all loss or damage to the Building or the Premises or to
the contents thereof, whether such loss or damage is due to the negligence of any Landlord Party or any Tenant Party, to the extent
that the amount of such loss or damage is recovered under its policies of insurance; provided, however, that the foregoing waiver
shall not be operative in any case where its effect is to invalidate any insurance coverage of the waiving party or increase the
cost of such insurance coverage; provided, further, however, that in the case of an increase in the cost of insurance coverage,
the insured shall give to the other party notice of the increase and the amount of the increase, and the other party may reinstate
such waiver by paying to the insured the amount of the increase in the cost of insurance.

 

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(d) Avoid
Action Increasing Rates.

 

Tenant shall comply
with all applicable Laws, and requirements and recommendations of insurance rating agencies with respect to the Premises, and shall
not, directly or indirectly, make any use of the Premises which may thereby be prohibited or be dangerous to person or property,
which may jeopardize any insurance coverage, increase the cost of insurance, or require additional insurance coverage. If Tenant
fails to comply with the provisions of this Section 12(d), then, Landlord, in addition to any other rights or remedies available
to Landlord, shall have the option to terminate this Lease, and may require Tenant to make immediate payment of any increase in
Landlord’s insurance costs.

 

(e) Failure
to Insure.

 

If Tenant fails to maintain
any insurance which Tenant is required to maintain pursuant to this Section 12, then Tenant shall be liable to Landlord for any
loss or costs resulting from such failure to maintain such insurance. Tenant may not self-insure against any risks required herein
to be covered by insurance.

 

(f) Representation.

 

Landlord makes no representation
that the limits of liability specified to be carried by Tenant under this Section 12 are adequate to protect Tenant. In the event
Tenant believes that any such insurance coverage called for under this Lease is insufficient, Tenant shall provide, at its own
expense, such additional insurance as Tenant deems adequate.

 

(g) Additional
Requirements.

 

Tenant shall require
each of its contractors and trades people, and their relevant subcontractors, to carry insurance in amounts and standards specified
in this Section 12 excluding coverage required in Section 12(b)(v), and Section 12(b)(vi) as it pertains to contractors personal
property, or as Landlord may from time to time require, from insurance companies licensed to do business in the State in which
the Property is located.

 

13. INDEMNITY.

 

(a) Tenant
Indemnity.

 

Tenant agrees to
indemnify, defend and hold harmless Landlord, Landlord’s members, each Mortgagee and their respective directors, officers,
shareholders, affiliates, agents, contractors, and employees (Landlord and each of said persons and entities being herein individually
called a “Landlord Party” and collectively called the “Landlord Parties”), from and against
any and all third party claims, demands, actions, liabilities, damages, costs and expenses (including reasonable attorneys’
fees), for injuries to any persons and damage to or theft or misappropriation or loss of property occurring in or about the Property
and arising from the use and occupancy of the Premises, or from any activity, work, or thing done, permitted or suffered by Tenant
in or about the Premises, including, without limitation, any Tenant’s Work performed by or on behalf of Tenant (except if
and to the extent same is caused by the negligence or willful misconduct of any Landlord Party), or, its invitees, licensees, employees,
contractors and agents and their respective directors, officers, shareholders, members, affiliates, agents, contractors, and employees
(Tenant and each of said persons and entities being hereinafter individually called a “Tenant Party” and collectively
called the “Tenant Parties”). If any such proceeding is filed against any Landlord Party, then Tenant shall
defend such Landlord Party in such proceeding at Tenant’s sole cost by legal counsel reasonably satisfactory to such Landlord
Party, if requested by such Landlord Party. The foregoing indemnity shall survive the end of the Term.

 

(b) Landlord
Indemnity.

 

Landlord agrees to indemnify,
defend and hold harmless the Tenant Parties from and against any and all third party claims, demands, actions, liabilities, damages,
costs and expenses (including reasonable attorneys’ fees), for injuries to any persons and damage to or theft or misappropriation
or loss of property occurring in or about the Property and arising from anything done, permitted or suffered by Landlord in or
about the Common Areas (except if to the extent same is caused by the negligence or willful misconduct of any Tenant Party), or
due to any negligent act or omission of the Landlord Parties, except to the extent same was caused by the negligence or willful
misconduct of the Tenant Parties. If any such proceeding is filed against any Tenant Party, then Landlord shall defend such Tenant
Party in such proceeding at Landlord’s sole cost by legal counsel reasonably satisfactory to such Tenant Party, if requested
by such Tenant Party. The foregoing indemnity shall survive the end of the Term.

 

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14. FIRE
AND CASUALTY.

 

(a) Damage.

 

If fire or other casualty
damages all or any part of the Premises, Tenant shall immediately notify Landlord in writing. During any period of time that all
or a material portion of the Premises is rendered untenantable as a result of a fire or other casualty, Base Rent and Tenant Reimbursement
Amount shall abate for the portion of the Premises that is untenantable and not used by Tenant (unless such fire or other casualty
was caused by any Tenant Party). Landlord shall have the right to terminate this Lease if: (i) the Building shall be damaged so
that, in Landlord’s reasonable judgment, substantial alteration or reconstruction of the Building shall be required (whether
or not the Premises has been damaged); (ii) Landlord is not permitted by Law to rebuild the Building in substantially the same
form as existed before the fire or casualty; (iii) the Premises have been materially damaged and there is less than two (2) years
of the Term remaining on the date of the casualty; (iv) any Mortgagee requires that the insurance proceeds be applied to the payment
of the mortgage debt; or (v) a material uninsured loss to the Building occurs. Landlord may exercise its right to terminate this
Lease by notifying Tenant in writing within ninety (90) days after the date of casualty. If Landlord does not terminate this Lease,
Landlord shall commence and proceed with reasonable diligence to repair and restore the Building and the Premises. Anything in
this Section 14 to the contrary notwithstanding, in no event shall Landlord be required to spend more than the insurance proceeds
received by Landlord. Landlord shall not be liable for any loss or damage to Tenant’s Property or to the business of Tenant
resulting in any way from the fire or other casualty or from the repair and restoration of the damage.

 

(b) Restoration.

 

If all or any portion
of the Premises shall be made untenantable by fire or other casualty, Landlord shall, with reasonable promptness, cause an architect
or general contractor selected by Landlord to provide Landlord and Tenant with a written estimate of the amount of time required
to substantially complete the repair and restoration of the Premises and make the Premises tenantable again, using standard working
methods (the “Completion Estimate”). If the Completion Estimate indicates that the Premises cannot be made tenantable
within two hundred seventy (270) days after the date of such fire or other casualty, then regardless of anything in Section 14(a)
above to the contrary, either party shall have the right to terminate this Lease by giving written notice to the other of such
election within ten (10) days after receipt of the Completion Estimate. Tenant, however, shall not have the right to terminate
this Lease if any Tenant Party caused the fire or casualty. If the damage was due to an act or omission of a Tenant Party, then
Tenant shall pay to Landlord the difference between the actual cost of repair and any insurance proceeds received by Landlord.

 

15. CONDEMNATION.

 

Either party may terminate
this Lease if the whole or any material part of the Premises shall be taken or condemned for any public or quasi-public use under
any applicable Law, by eminent domain or private purchase in lieu thereof (each, a “Taking”). Landlord shall
also have the right to terminate this Lease if there is a Taking of any portion of the Building or the Property which would leave
the remainder of the Building unsuitable for use as an industrial building in a manner comparable to the use of the Building prior
to the Taking. In order to exercise its right to terminate this Lease, Landlord or Tenant, as the case may be, must provide written
notice of termination to the other within forty-five (45) days after the terminating party first receives notice of the Taking.
Any such termination shall be effective as of the date the physical taking of the Premises or the portion of the Building or the
Property occurs. If this Lease is not terminated, the leaseable area of the Premises and/or the Property and Tenant’s Proportionate
Share shall, if applicable, be appropriately adjusted. In addition, Rent for any portion of the Premises taken or condemned shall
be abated during the unexpired Term effective as of the date when the physical taking of the portion of the Premises occurs. All
compensation awarded for a Taking, or sale proceeds, shall be the property of Landlord, any right to receive compensation or proceeds
being expressly waived by Tenant; provided, however, Tenant may file a separate claim at its expense, for Tenant’s Property
and Tenant’s reasonable relocation expenses, provided the filing of the claim does not diminish the award which would otherwise
be received by Landlord.

 

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16. ASSIGNMENT
AND SUBLETTING.

 

(a) Transfer.

 

Except in connection
with a Permitted Transfer, Tenant shall not, without the prior written consent of Landlord, which consent shall not be unreasonably
withheld or delayed: (i) assign, re-assign, convey, mortgage or otherwise transfer this Lease or any interest hereunder; or (ii)
sublease the Premises, or any part thereof, whether voluntarily or by operation of Law; or (iii) permit the use of the Premises
by any person or entity other than Tenant and its employees. Any such transfer, sublease or use described in the preceding sentence
is hereinafter called a “Transfer.” Landlord’s consent to any Transfer shall not constitute a waiver of
Landlord’s right to withhold its consent to any future Transfer. Landlord’s consent to any Transfer or acceptance of
rent from any party other than Tenant shall not release Tenant from any covenant or obligation under this Lease. Landlord may require
as a condition to its consent to any assignment of this Lease that the assignee execute a commercially reasonable form of assumption
agreement. Except as provided below with respect to a Permitted Transfer, if Tenant is a corporation, limited liability company,
partnership, or similar entity, and if the person or entity which owns or controls a majority of the voting shares/rights in Tenant
at any time changes for any reason (including but not limited to a merger, consolidation or reorganization), such change of ownership
or control shall constitute a Transfer. The foregoing shall not apply so long as Tenant is an entity whose outstanding stock is
listed on a recognized security exchange, or if at least fifty-one percent (51%) of its voting stock is owned by another entity,
the voting stock of which is so listed.

 

(b) Permitted
Transfer.

 

Notwithstanding Section
16(a) above to the contrary, Tenant may assign its interest in this Lease or sublease all or any part of the Premises (each a “Permitted
Transfer”) to a Permitted Transferee without Landlord’s prior written consent; provided, that: (i) Tenant gives
Landlord a written notice of any Permitted Transfer not later than ten (10) days after the effective date of such Permitted Transfer,
together with current financial statements of Tenant and of the Permitted Transferee; (ii) Tenant is not in Default under this
Lease; (iii) with respect to a Permitted Transfer involving an assignment of this Lease, the Permitted Transferee assumes this
Lease by a written assumption agreement delivered to Landlord prior to the effective date of such Permitted Transfer; (iv) the
Permitted Transferee shall use the Premises only for the Permitted Use; (v) the use of the Premises by the Permitted Transferee
shall not violate any other agreements or leases affecting the Property; (vi) the occurrence of a Permitted Transfer shall not
waive Landlord’s rights as to any subsequent Transfer; and (vii) Tenant shall not be released from any liability under this
Lease (whether past, present or future) by reason of such Permitted Transfer). Any Permitted Transfer shall not be subject to Sections
16(c), 16(d), 16(e) and 16(f) below. As used herein: (A) “Affiliate” means any person or entity who or which
controls, is controlled by, or is under common control with Tenant provided the Tangible Net Worth of the Affiliate is not less
than the greater of the Tangible Net Worth of Tenant on the date hereof or the Tangible Net Worth of Tenant immediately preceding
the effective date of such Permitted Transfer to an Affiliate; (B) “Successor” means any business entity in
which or with which Tenant is merged or consolidated in accordance with applicable statutory provisions governing merger and consolidation
of business entities, so long as: (1) Tenant’s obligations under this Lease are assumed by the Successor; and (2) the Tangible
Net Worth of the Successor is not less than the greater of the Tangible Net Worth of Tenant on the date hereof or the Tangible
Net Worth of Tenant immediately preceding the effective date of such merger or consolidation; (C) “Purchaser”
means any person or entity who or which acquires all or substantially all of the assets of Tenant, so long as the Tangible Net
Worth of the Purchaser is not less than the greater of the Tangible Net Worth of Tenant as of the date hereof or the Tangible Net
Worth of Tenant immediately preceding such acquisition; (D) “Permitted Transferee” means an Affiliate, Successor
or Purchaser; and (E) “Tangible Net Worth” means the excess of total assets over total liabilities, in each
case as determined in accordance with generally accepted accounting principles consistently applied (“GAAP”),
excluding however, from the determination of total assets, all assets which would be classified as intangible assets under GAAP,
including, without limitation, good will, licenses, patents, trademarks, trade names, copyrights and franchises.

 

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(c) Tenant’s
Request for Consent.

 

If Tenant desires the
consent of Landlord to a Transfer, Tenant shall submit to Landlord at least sixty (60) days prior to the effective date of the
Transfer, a written notice which includes current financial statements for the transferee, a complete copy of the Transfer documents
and such other information as Landlord may reasonably request. If Landlord does not terminate this Lease, in whole or in part,
pursuant to Section 16(e) below, then Landlord shall not unreasonably withhold its consent to any assignment or sublease. Landlord
shall not be deemed to have unreasonably withheld its consent if, in the judgment of Landlord: (i) the transferee is of a character,
image or reputation which is not in keeping with the standards or criteria used by Landlord in leasing the Property; (ii) the financial
condition of the proposed transferee does not meet the criteria Landlord uses to select Property tenants having similar leasehold
obligations; (iii) the purpose for which the transferee intends to use the Premises or portion thereof differs in any way from
the Permitted Use; (iv) the transferee (or any Affiliate of the transferee) is then a tenant or occupant of the Property; (v) any
portion of the Property or the Premises would likely become subject to additional or different Laws as a result of the Transfer
or the intended use of the Premises by the transferee would, in Landlord’s reasonable judgement, more likely cause a violation
of Section 4 above or any other tenant’s lease; or (vi) any other bases which Landlord reasonably deems appropriate. If Tenant
is in Default at the time Tenant requests Landlord’s consent to a proposed Transfer, then Landlord’s consent to such
Transfer may be conditioned upon Tenant curing such Default. If Landlord wrongfully withholds its consent to any Transfer, Tenant’s
sole and exclusive remedy therefor shall be to seek specific performance of Landlord’s obligation to consent to such Transfer.
In addition, Tenant shall pay to Landlord all reasonable attorneys’ fees (in no event less than Five Hundred Dollars ($500.00)
per request) and expenses incurred by Landlord in connection with any Transfer, whether or not Landlord consents to such Transfer.

 

(d) Excess
Rent.

 

If Landlord consents
to a Transfer, then Tenant shall pay Landlord fifty percent (50%) of all rent and other consideration that Tenant receives as a
result of a Transfer that is in excess of the Base Rent and Tenant Reimbursement Amount payable to Landlord for the portion of
the Premises and Term covered by the Transfer. Tenant shall pay Landlord for Landlord’s share of any excess within thirty
(30) days after Tenant’s receipt of each such excess consideration. Tenant may deduct from the excess all reasonable and
customary expenses directly incurred by Tenant and attributable to the Transfer (other than Landlord’s review fee), including
brokerage fees, legal fees and construction costs.

 

(e) Recapture.

 

Landlord shall have
the right to terminate this Lease as to that portion of the Premises covered by a Transfer. Landlord may exercise such right to
terminate by giving notice to Tenant at any time within thirty (30) days after the date on which Tenant has furnished to Landlord
all of the items required under Section 16(c) above. If Landlord exercises such right to terminate, Landlord shall be entitled
to recover possession of, and Tenant shall surrender such portion of, the Premises (with appropriate demising partitions erected
at the expense of Tenant) on the later of (i) the effective date of the proposed Transfer, or (ii) sixty (60) days after the date
of Landlord’s notice of termination. In the event Landlord exercises such right to terminate, Landlord shall have the right
to enter into a lease with the proposed transferee without incurring any liability to Tenant on account thereof.

 

(f) Assignment
of Sublease Revenues.

 

Tenant absolutely assigns
to Landlord all of Tenant’s right, title and interest in and to all revenues from each sublease of all or any portion of
the Premises; provided, however, that Landlord grants Tenant a license, which shall remain in effect so long as no Default exists,
to collect all such revenues (subject to Tenant’s obligation to deliver certain of such revenues to Landlord under Section
16(d) above). Upon the occurrence of a Default, Landlord may revoke such license by written notice to Tenant and may, by written
notice to any subtenant of Tenant, demand that such subtenant pay all such revenues directly to Landlord. In such event Tenant
hereby irrevocably authorizes and directs any such subtenant to pay such revenues to Landlord, and further agrees: (i) that
any such subtenant shall be obligated and entitled to pay such revenues to Landlord notwithstanding any contrary contentions or
instructions later received from Tenant; and (ii) that no such subtenant shall have any liability to Tenant for any such revenues
paid to Landlord in accordance with the foregoing. Landlord shall not be entitled to use or enjoy any such revenues except for
the purpose of applying such revenues against unfulfilled obligations of Tenant hereunder, or to reimburse Landlord for costs incurred
as a result of any Default, or to compensate Landlord for other losses suffered by Landlord as a result of any Default. Any such
revenues remaining in Landlord’s possession following the cure of all Defaults and the reimbursement of all such costs and
losses shall be delivered to Tenant. No such notice to any subtenant or receipt of revenues from any subtenant shall be deemed
to constitute either: (A) Landlord’s consent to such sublease; or (B) the assumption by Landlord of any obligation
of Tenant under such sublease, nor shall any such notice or receipt create privity of contract between Landlord and the applicable
subtenant or be construed as a nondisturbance or similar agreement between Landlord and such subtenant.

 

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17. SURRENDER.

 

(a) Condition
at Surrender.

 

Upon the end of the
Term or termination of Tenant’s right to possession of the Premises, Tenant will at once surrender and deliver up the Premises
to Landlord, Broom Clean and in Good Condition, ordinary wear and damage by fire or other casualty excepted. As used herein: (i)
“Broom Clean” means free from all debris, dirt, rubbish, oil, grease, tire tracks, marking tape or other substances,
inside the Premises and, if and to the extent caused by any Tenant Party, outside of the Building; and (ii) “Good Condition”
means that the Premises (including, without limitation, all of the items described in items (i) through (x) of the first sentence
of Section 9(a) above) are in good condition and in good working order. Any damage caused by removal of Tenant from the Property,
including any damage caused by the removal of Tenant’s Property under Section 17(b) below, shall be repaired and paid for
by Tenant prior to the end of the Term.

 

(b) Removal
of Tenant’s Property.

 

Upon the end of the
Term or termination of Tenant’s right to possession of the Premises, Tenant shall remove all of the Required Removables and
all of Tenant’s Property (including, without limitation, all computer and telecommunications cabling and wiring and all signage),
which removal shall be done in a good, workmanlike and lien-free manner, and upon such removal Tenant shall repair all damage to
the Premises and the Property caused by the installation or removal of such items (including the removal of any and all floor bolts)
and restore the Premises to its condition prior to the installation of such items. If Tenant does not remove any items comprising
Tenant’s Property or the Required Removables prior to the end of the Term, then Landlord may remove such items and repair
and restore the Premises and Tenant shall pay the cost of such removal, repair and restoration to Landlord upon demand. If Tenant
does not remove any items comprising Tenant’s Property or the Required Removables, then Tenant shall be conclusively presumed
to have conveyed such items to Landlord without further payment or credit by Landlord to Tenant or, at Landlord’s sole option,
such items shall be deemed abandoned, in which event Landlord may cause such items to be stored, removed or disposed of at Tenant’s
expense, without notice to Tenant and without obligation to compensate Tenant.

 

18. DEFAULTS
AND REMEDIES.

 

(a) Default.

 

The occurrence of each
of the following shall constitute an event of default (a “Default”) by Tenant under this Lease: (i) Tenant fails
to pay any Rent within five (5) days after the date when same is due; (ii) Tenant fails to timely deliver any Estoppel Certificate
to Landlord under Section 24 below; (iii) Tenant fails to timely deliver any Subordination Agreement to Landlord under Section
25 below; (iv) Tenant fails to timely surrender and vacate the Premises in the manner described in Section 17 above; (v) Tenant
makes any Transfer (other than a Permitted Transfer) without obtaining Landlord’s prior written consent; (vi) Tenant fails
to maintain any insurance required to be maintained by Tenant under Section 12 above; (vii) the occurrence of a default by any
guarantor of this Lease under the applicable guaranty; (viii) the death or dissolution of Tenant or of any guarantor of this Lease;
(ix) Tenant (or any Affiliate) is in default beyond any applicable notice and cure period under any other lease or agreement with
Landlord (or any affiliate of Landlord); or (x) Tenant fails to observe or perform any other covenant or obligation of Tenant under
this Lease (which is not referred to in clauses (i) through (ix) above) and such failure is not cured within thirty (30) days (or
immediately if such failure involves a hazardous condition) after written notice from Landlord; provided, however, that if such
failure cannot reasonably be cured within said 30-day period, Tenant shall be allowed such additional time (not to exceed sixty
(60) days) as is reasonably necessary to cure such failure, so long as: (A) Tenant commences to cure the failure within ten (10)
days; and (B) Tenant diligently pursues a course of action that will cure the failure and bring Tenant back into compliance with
this Lease; and (C) Tenant provides Landlord with detailed weekly written status reports of Tenant’s progress in curing such
failure throughout the period of such failure.

 

(b) Remedies.

 

Upon any Default, Landlord
shall have the right without further notice or demand to pursue any of its rights and remedies at Law or in equity, including any
one or more of the following remedies:

 

(i) Terminate
this Lease, in which case Tenant shall immediately surrender the Premises to Landlord. If Tenant fails to surrender the Premises,
Landlord may, in compliance with applicable Law and without prejudice to any other right or remedy, enter upon and take possession
of the Premises and expel and remove Tenant, Tenant’s Property and all parties occupying all or any part of the Premises.
Tenant shall pay Landlord on demand the amount of all past due Rent and other losses and damages which Landlord may suffer as a
result of the Default, whether by Landlord’s inability to relet the Premises on satisfactory terms or otherwise, including,
without limitation, all Costs of Reletting and any deficiency that may arise from reletting or the failure to relet the Premises.
“Costs of Reletting” shall mean and include all costs and expenses incurred by Landlord in reletting or attempting
to relet the Premises, including, without limitation, reasonable legal fees, brokerage commissions, the cost of alterations and
the value of other concessions or allowances granted to a new tenant.

 

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(ii) Terminate
Tenant’s right to possession of the Premises and in compliance with applicable Law, expel and remove Tenant, Tenant’s
Property and all parties occupying all or any part of the Premises. Landlord may (but shall not be obligated to) relet all or any
part of the Premises, without notice to Tenant, for a term that may be greater or less than the balance of the Term and on such
conditions (which may include concessions, free rent and alterations of the Premises) and for such uses as Landlord in its absolute
discretion shall determine. Landlord may collect and receive all rents and other income from the reletting. Tenant shall pay Landlord
on demand all past due Rent, all Costs of Reletting and any deficiency arising from the reletting or failure to relet the Premises.
Landlord shall not be responsible or liable for the failure to relet all or any part of the Premises or for the failure to collect
any Rent. The re-entry or taking of possession of the Premises shall not be construed as an election by Landlord to terminate this
Lease unless and until a written notice of termination is given to Tenant.

 

Solely in the event that Tenant is in default
of this Lease due to failure to pay Rent, then in such event, in lieu of calculating damages under Sections 18(b)(i) or 18(b)(ii)
above, Landlord may elect to receive as damages the sum of (A) all Rent accrued through the date of termination of this Lease or
Tenant’s right to possession, and (B) an amount equal to the total Rent that Tenant would have been required to pay for the
remainder of the Term discounted to present value of 4%, minus the then present fair rental value of the Premises for the remainder
of the Term, similarly discounted, after deducting all anticipated Costs of Reletting.

 

(c) Other
Remedies.

 

Landlord may but shall
not be obligated to perform any obligation of Tenant under this Lease, and if Landlord so elects, Tenant shall reimburse all costs
and expenses paid by Landlord in performing such obligation, together with interest at the Default Rate, to Landlord on demand.
The exercise of any remedy by Landlord shall not be deemed an election of remedies or preclude Landlord from exercising any other
remedies in the future. In no event shall Tenant be liable to Landlord for consequential damages except as provided in Section
19 of this Lease.

 

(d) Waiver
of Trial by Jury.

 

Landlord and Tenant
waive trial by jury in the event of any action, proceeding or counterclaim brought by either Landlord or Tenant against the other
in connection with this Lease.

 

(e) Attorney’s
Fees.

 

Tenant shall reimburse
Landlord upon demand for all costs and expenses incurred by Landlord by reason of any Default (including legal fees), whether or
not Landlord institutes any legal action or proceeding against Tenant by reason of such Default. If either Landlord or Tenant brings
an action or proceeding to enforce or defend its rights under this Lease the Prevailing Party in any such action or proceeding,
or appeal thereon, shall be entitled to receive (and shall be awarded) all of its court costs and reasonable attorneys’ fees.
Such costs and 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. As used herein, “Prevailing Party” shall mean the party who substantially attains
or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other
party of its claim or defense.

 

(f) Venue.

 

If either Landlord or
Tenant desires to bring an action against the other in connection with this Lease, such action shall be brought either in the state
courts or in the federal courts located in Hennepin County, Minnesota (if such federal courts would otherwise have concurrent jurisdiction
over the case). Landlord and Tenant consent to the jurisdiction of such courts and waive any right to have such action transferred
from such courts on the grounds of improper venue or inconvenient forum.

 

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(g) Landlord
Mitigation Obligations. Landlord agrees to use commercially reasonable efforts to mitigate its damages, provided that those
efforts shall not require Landlord to relet the Premises in preference to any other space in the Property or to relet the Premises
to any party that Landlord could reasonably reject as a transferee pursuant to Section 16 of this Lease.

 

(h) Landlord
Default. If Landlord fails to perform any of Landlord’s obligations under this Lease, which failure continues for more
than thirty (30) days after Tenant’s delivery of written notice to Landlord specifying such failure (except in the case of
an emergency where no notice shall be required), or if such failure is of a nature to require more than thirty (30) days for remedy
and continues beyond the time reasonably necessary to cure (and Landlord has not undertaken procedures to cure the failure within
such thirty (30) day period and diligently pursued such efforts to complete such cure), Tenant may, at its option, with or without
further notice or demand of any kind to Landlord, and as Tenant’s sole and exclusive remedy (except as provided in this Section
18(h)), remedy such default and Landlord shall reimburse Tenant for the actual out-of-pocket costs incurred by Tenant for such
performance within thirty (30) days from receipt by Landlord of bills and invoices, in detail reasonably satisfactory to Landlord,
covering all labor and materials expended and used by Tenant in so performing Landlord’s obligations. “Emergency”
for the purpose of this Section 18(h) only, means a situation which could be reasonably expected to cause damage to Tenant’s
property or injury to persons. In the event Landlord has not reimbursed Tenant within thirty (30) days from receipt of bills and
invoices as prescribed above, then Tenant shall notify Landlord in writing of Landlord’s failure to timely pay and Landlord
shall pay such cost within ten (10) days following Landlord’s receipt of Tenant’s second written notice. If all or
part of the such cost is not paid to Tenant within the 10-day period following Tenant’s second notice to Landlord, subject
to satisfaction of the conditions set forth herein, then Tenant may, as its sole and exclusive remedy, deduct the cost from Tenant’s
Base Rent obligations hereunder (as evidenced by the bills and invoices furnished to Landlord) until the date the same is reimbursed
or deducted as aforesaid. Any amounts expended by Tenant and reimbursed by Landlord or expended and deducted by Tenant pursuant
to this Section 18(h) may be included in Expenses if, as and to the extent such costs would constitute an Expense if the same had
been performed by Landlord. In no event shall Landlord by liable to Tenant for consequential damages.

 

19. HOLDING
OVER.

 

If Tenant retains possession
of the Premises or any part thereof after the end of the Term or termination of Tenant’s right to possession of the Premises
(it being agreed that Tenant’s failure to timely remove all Tenant’s Property and all the Required Removables from
the Premises shall also be considered a retention of the Premises by Tenant), then such retention of possession shall be considered
a tenancy “at will” or “sufferance” (and not a month-to-month tenancy), and Tenant shall pay Rent for such
holding over in an amount equal to the sum of: (a) one hundred twenty-five percent (125%) of the monthly Rent in effect immediately
preceding such holding over computed on a monthly basis for each of the first two (2) months or partial months that Tenant remains
in possession; plus (b) one hundred fifty percent (150%) of the monthly Rent in effect immediately preceding such holding over
computed on a monthly basis for each month or partial month that Tenant remains in possession after such first two (2) months or
partial months. In addition to the payment of the amounts provided above, if Landlord is unable to timely deliver possession of
the Premises to a third party as a result of Tenant’s holdover then, provided Landlord has provided written notice to Tenant
that Landlord may be subject to damages or penalties imposed by such third party because Landlord is unable to timely deliver possession
of the Premises to such third party on or before a date that is not more than 60 days after the date of such notice, Tenant shall
be liable to Landlord for all damages including, but not limited to, consequential damages that Landlord suffers from the holdover;
provided, however, Tenant shall only be liable to Landlord for consequential damages if Tenant retains possession of the Premises
or any part thereof after the end of the Term or termination of Tenant’s right to possession of the Premises (it being agreed
that Tenant’s failure to timely remove all Tenant’s Property and all the Required Removables from the Premises shall
also be considered a retention of the Premises by Tenant) for ninety (90) or more days after the expiration or termination (as
applicable) of the Term. The provisions of this Section do not waive Landlord’s right of re-entry or right to regain possession
by actions at Law or in equity or any other rights hereunder, and any receipt of payment by Landlord shall not be deemed a consent
by Landlord to Tenant’s remaining in possession or be construed as creating or renewing any lease or right of tenancy between
Landlord and Tenant.

 

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20. SECURITY
DEPOSIT.

 

Upon execution of this
Lease, Tenant shall deposit the Security Deposit with Landlord as security for the performance of Tenant’s obligations under
this Lease. Upon the occurrence of a Default, Landlord may use all or any part of the Security Deposit for the payment of any Rent
or for the payment of any amount which Landlord may pay or become obligated to pay by reason of such Default, or to compensate
Landlord for any losses or damages which Landlord may suffer by reason of such Default. If any portion of the Security Deposit
is used, Tenant shall within five (5) days after written demand therefor deposit cash with Landlord in an amount sufficient to
restore the Security Deposit to its original amount. Landlord shall not be required to keep the Security Deposit separate from
its general funds, and Tenant shall not be entitled to interest on the Security Deposit. In no event shall the Security Deposit
be considered an advanced payment of Rent, and in no event shall Tenant be entitled to use the Security Deposit for the payment
of Rent. If no Default by Tenant exists hereunder, Landlord shall return the Security Deposit or any balance thereof to Tenant
within thirty (30) days after the end of the Term and vacation of the Premises by Tenant. Landlord shall have the right to transfer
the Security Deposit to any purchaser of the Building or the Property (as the case may be). Upon such transfer, Tenant shall look
solely to such purchaser for return of the Security Deposit, and Landlord shall be relieved of any liability with respect to the
Security Deposit.

 

21. RIGHT
OF FIRST OFFER.

 

(a) So
long as NEUROONE MEDICAL TECHNOLOGIES, a Delaware corporation, and any Permitted Transferee (collectively, “NOM”),
is the Tenant under this Lease, and subject to the rights of existing tenants (i.e., tenants under an executed lease with
Landlord) in the Building, in the event that any space in the Building which is contiguous to the Premises (the “First
Offer Space”) becomes or will become available for leasing by third parties during the Term, and in the event Landlord
desires to lease any such First Offer Space to third parties, Landlord shall, prior to offering such First Offer Space to lease
to any third party, notify Tenant, in writing (“First Offer Notice”), that such First Offer Space is or will
become available, the anticipated delivery date of such First Offer Space to Tenant, and the terms upon which such First Offer
Space will be offered which terms shall be established by Landlord in its sole discretion.

 

(b) Tenant
shall have five (5) days from the date of the First Offer Notice to notify Landlord, in writing, that Tenant desires to lease such
First Offer Space on the terms and conditions set forth in the First Offer Notice. In the event Tenant does not notify Landlord
that it desires to lease such First Offer Space on the terms and conditions set forth in the First Offer Notice within the 5-day
period prescribed herein (whether because Tenant fails to timely do so or because Tenant is ineligible because of a Default), and
within ten (10) days after Landlord's request enter into a lease amendment prepared by Landlord which adds the First Offer Space
to the Premises upon the terms and conditions set forth in Landlord's First Offer Notice and in this Lease and incorporating the
provisions of Section 21(c) and (d), Landlord may lease all or any part of such First Offer Space to any other party and Tenant
shall have no further right or option to lease such First Offer Space whether or not such First Offer Space becomes available for
lease during the Term. Anything herein to the contrary notwithstanding, Landlord shall not be required to offer the First Offer
Space to any third party for leasing.

 

(c) In
the event Tenant exercises its right to lease the First Offer Space subject to and in accordance with the conditions and limitations
herein contained, Tenant shall, within ten (10) days after request by Landlord, execute an amendment to this Lease prepared by
Landlord, for the purpose of adding such First Offer Space to the Premises effective as of the date on which Landlord delivers
possession of such First Offer Space to Tenant, by amending the Site Plan attached hereto as Exhibit B to include such First
Offer Space, adjusting the Base Rent and Tenant's Proportionate Share to reflect the additional square feet of First Offer Space,
and otherwise subjecting the First Offer Space to the terms and conditions of this Lease.

 

(d) If:
(i) Tenant exercises its right to lease the First Offer Space subject to and in accordance with the conditions and limitations
herein contained; and (ii) the term of such First Offer Space extends beyond the remaining Term (exclusive of the Extension Terms),
then Tenant shall, as a condition to exercising its right to the First Offer Space, exercise its right to the Extension Term or
Extension Terms (as necessary), in which event the Base Rent rate for the Premises originally demised hereunder during the initial
Term and the Extension Terms shall be as set forth in this Lease, and the base rent rate for such First Offer Space shall be the
base rent rate set forth in the First Offer Notice; provided, however, if the term of such First Offer Space extends beyond the
expiration of the Extension Terms, then the Extension Terms shall be extended co-terminus with the term of such First Offer Space,
and the base rent rate applicable to the Premises originally demised hereunder for such extended period shall be the then current
base rent rate for new leases for similar space in the Building according to Landlord's then current rental rate schedule for new
leases for prospective tenants as then in effect and the base rent rate for such First Offer Space shall be the base rent rate
set forth in the First Offer Notice. If: (A) Tenant exercises its right to lease the First Offer Space subject to and in accordance
with the conditions and limitations herein contained; and (B) the term of such First Offer Space does not extend beyond the remaining
Term (inclusive of any exercised Extension Terms), then the term of such First Offer Space shall be extended co-terminus with the
remaining Term (inclusive of any exercised Extension Terms), and the base rent rate applicable to such First Offer Space for such
extended period shall be the then current base rent rate for new leases for similar space in the Building according to Landlord's
then current rental rate schedule for new leases for prospective tenants as then in effect.

 

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(e) It
shall be a condition of Tenant 's right to lease the First Offer Space that no Default has occurred and is continuing under this
Lease at the time such First Offer Space becomes available for lease and upon the date such First Offer Space is to be added to
the Premises.

 

(f) The
rights granted under this Section 21 are personal to NOM and shall not be assigned nor inure to the benefit of any other party.

 

22. Extension
option. Tenant shall have two (2) options (each, an “Extension Option”) to extend the Term for all
(but not less than all) of the Premises which are demised under the Lease as of the expiration of the Term for two (2) consecutive
periods of period of three (3) years each (each, an “Extension Term”), subject to the following terms and conditions:

 

(a) No
Default. The Lease is in full force and effect and Tenant is neither in Default at the time Tenant exercises the applicable Extension
Option nor at the commencement of the applicable Extension Term, but Landlord shall have the right at its sole discretion to waive
the non-default condition herein.

 

(b) Base
Rent. Each Extension Term shall be upon all of the same terms, covenants and conditions as provided in the Lease, except that:
(i) Tenant may not again exercise the Extension Option during the second Extension Term so as to further extend the Term beyond
the expiration of the second Extension Term; and (ii) the Base Rent payable for each Extension Term (the “Market Extension
Rent”) shall be equal to ninety-five percent (95%) of the then current Base Rent (including all fixed or indexed increases
to said Base Rent), as reasonably determined by Landlord, for lease extensions of similar space in the Property, taking into account
tenant incentives or inducements, if any, such as tenant improvement allowances and free rent, according to Landlord’s current
rental rate schedule together with annual increases as reasonably determined by Landlord; provided, however, that the initial annual
rate of Base Rent per square foot payable for each Extension Term shall in no event be less than the annual rate of Base Rent per
square foot payable under this Lease immediately prior to the commencement of the applicable Extension Term. Base Rent for each
Extension Term shall be subject to annual increases as reasonably determined by Landlord. Upon Landlord’s receipt of a written
request therefor from Tenant given not earlier than the date which is twelve (12) months and not later than the date which is ten
(10) months prior to the commencement of each Extension Term (each, a “Market Rent Request”), Landlord shall
give Tenant a written notice designating the actual Market Extension Rent for the applicable Extension Term not later than the
date which is ten (10) business days after Landlord’s receipt of a Market Rent Request.

 

(c) Tenant
Reimbursement Amount. Tenant shall continue to pay Tenant Reimbursement Amount for each Extension Term.

 

(d) Condition
of Premises. Tenant shall accept the Premises on the commencement date of each Extension Term in an “as-is” condition,
without any representation, allowance or retrofit from Landlord with respect to the condition or improvement thereof.

 

(e) Exercise
of Option. Tenant shall exercise each Extension Option by giving Landlord a written notice thereof on or before the date that is
nine (9) months prior to the commencement of each Extension Term. Failure by Tenant to timely exercise an Extension Option (whether
because Tenant fails to timely do so or because Tenant is ineligible because of a Default) shall be deemed a waiver by Tenant of
its right to exercise such Extension Option and any future Extension Options.

 

(f) Lease
Amendment. The parties shall execute an amendment to the Lease to reflect Tenant’s exercise of the applicable Extension Option
upon the terms provided herein, which amendment shall be executed within thirty (30) days after Tenant exercises such Extension
Option.

 

(g) Personal
Option. Each Extension Option is a personal option in favor of NOM and shall automatically terminate upon any Transfer by NOM.

 

    27

     

    

 

23. ESTOPPEL
CERTIFICATE.

 

Tenant agrees from time
to time upon written request from Landlord, to execute and deliver to Landlord or to any third party designated by Landlord in
such request, a written estoppel certificate (an “Estoppel Certificate”) in the form attached hereto as Exhibit
E, including such additional statements as may be requested by Landlord, it being agreed that each Estoppel Certificate may
be relied upon by any prospective purchaser, Mortgagee, prospective Mortgagee, or other person having or acquiring an interest
in the Building or the Property. Tenant’s failure to execute and deliver any Estoppel Certificate to Landlord (or to any
such designated third party) within ten (10) days after written request from Landlord shall automatically constitute Tenant’s
approval of the requested Estoppel Certificate as though such Estoppel Certificate had been executed and delivered by Tenant to
Landlord or such designated third party in form identical to the form submitted by Landlord to Tenant.

 

24. SUBORDINATION.

 

This Lease is and shall
be expressly subject and subordinate at all times to: (a) any ground or underlying lease of the Property, now or hereafter existing,
and all amendments, renewals and modifications to any such lease; and (b) the lien of any mortgage or trust deed now or hereafter
encumbering fee title to the Property and/or the leasehold estate under any such lease. If any such mortgage or trust deed is foreclosed,
or if any such lease is terminated, upon request of the mortgagee, holder or lessor, as the case may be (each, a “Mortgagee”),
Tenant will attorn to the purchaser at the foreclosure sale or to the lessor under such lease, as the case may be. Notwithstanding
anything to the contrary contained herein, any Mortgagee may subordinate, in whole or in part, its mortgage, trust deed or lease
(as the case may be) to this Lease by sending Tenant notice in writing subordinating such mortgage, trust deed or lease to this
Lease. The foregoing provisions are declared to be self-operative and no further instruments shall be required to effect such subordination
and/or attornment. Landlord agrees to use commercially reasonable efforts to obtain a non-disturbance agreement from Landlord’s
current Mortgagee within sixty (60) days after the execution of this Lease (which non-disturbance agreement may or may not be part
of the Subordination Agreement (as defined herein)). Tenant agrees upon request at any time by any such Mortgagee or prospective
Mortgagee, Landlord or any prospective purchaser (or by any purchaser at foreclosure), to execute and deliver any instrument (a
“Subordination Agreement”) as may be required by such entity to confirm such subordination and/or attornment
(although not required to effect such subordination and/or attornment). Tenant’s failure to execute and deliver any Subordination
Agreement within twenty-one (21) days after written request from Landlord shall automatically constitute Tenant’s acknowledgement
and agreement that this Lease is subordinate (or superior as the case may be) to the mortgage, trust deed or lease, as the case
may be, identified in the Subordination Agreement submitted by Landlord to Tenant. Notwithstanding the foregoing, as a condition
to Tenant’s subordination and attornment, any mortgagee (including the current mortgagee), or successor to any mortgagee’s
interest, shall provide Tenant with a non-disturbance agreement that indicates that Tenant’s rights under this Lease, including
Tenant’s possession of the Premises, will not be disturbed by reason of the foreclosure of its mortgage or trust deed, or
the termination of its ground lease, as the case may be, so long as Tenant is not in default under this Lease. Tenant agrees to
execute the form non-disturbance agreement utilized by such Mortgagee; provided that it contains the foregoing agreement.

 

25. financial
statements.

 

Within ten (10) days
after Landlord’s request, Tenant will deliver to Landlord, the most recent audited financial statements (including all notes
to such statements) of Tenant, or, if no such audited statements have been prepared, then unaudited financial statements (including
all notes to such statements) prepared in each case by an independent certified public accountant in accordance with GAAP (the
“Financial Statements”). Landlord will not disclose any aspect of Financial Statements that Tenant designates
to Landlord as confidential except (a) to any Mortgagee, prospective Mortgagee, or prospective purchaser of the Building or the
Property, and (b) if required by court order or subpoena. Tenant represents and warrants to Landlord that all financial information
of Tenant delivered or to be delivered to Landlord by or on behalf of Tenant is and shall be true and correct and that no material
misstatements or omissions exist therein.

 

26. TENANT’S
BROKER.

 

Tenant represents to
Landlord that Tenant has dealt only with Tenant’s Broker in connection with this Lease and that, insofar as Tenant knows,
no other broker negotiated this Lease on Tenant’s behalf or is entitled to any commission by reason of its representation
of Tenant. Tenant agrees to indemnify, defend and hold the Landlord Parties harmless from and against any claims for a fee or commission
made by any broker, other than Tenant’s Broker, claiming to have acted by or on behalf of Tenant in connection with this
Lease. Landlord agrees to pay Tenant’s Broker a commission subject to the terms and conditions of a separate agreement between
Landlord and Tenant’s Broker.

 

    28

     

    

 

27. NOTICES.

 

All notices and demands
to be given by one party to the other party under this Lease shall be given in writing, mailed or delivered to Landlord or Tenant,
as the case may be, at the address for such party described in the Schedule above or at such other address as either party may
hereafter designate. Notices shall be delivered by hand or by United States certified or registered mail, postage prepaid, return
receipt requested, or by a nationally recognized overnight air courier service or by a locally recognized courier service. Notices
shall be considered to have been given upon: (a) with respect to certified mail, the earlier to occur of actual receipt or two
(2) business days after depositing in the United States mail; (b) with respect to a nationally recognized overnight air courier
service, one (1) business day after delivery to the nationally recognized overnight air courier service; and (c) with respect to
a locally recognized courier service, upon receipt. Any notice to Landlord must also include a copy to Christina Brotto, BrottoFreel,
LLC, 32 South Adams Street, Hinsdale, Illinois 60521. Either party may change its notice address by giving the other party notice
of the new address as provided in this Section.

 

28. MISCELLANEOUS.

 

(a) Successors
and Assigns.

 

Subject to Section 16
of this Lease, each provision of this Lease shall extend to, bind and inure to the benefit of Landlord and Tenant and their respective
legal representatives, successors and assigns; and all references herein to Landlord and Tenant shall be deemed to include all
such parties.

 

(b) Entire
Agreement.

 

This Lease, and the
riders and exhibits, if any, attached hereto which are hereby made a part of this Lease, represent the complete agreement between
Landlord and Tenant; and Landlord has made no representations or warranties except as expressly set forth in this Lease. No modification
or amendment of or waiver under this Lease shall be binding upon Landlord or Tenant unless in writing signed by Landlord and Tenant.

 

(c) Time.

 

If the date for payment
of any sum or the performance of any obligation under this Lease by either party falls on a Saturday, Sunday or national holiday,
then the date for such payment or performance shall be extended to 5:00 p.m. Central Time on the first business day following such
Saturday, Sunday or national holiday. Time is of the essence of this Lease and each and all of its provisions, specifically including,
without limitation, the payment of Rent and the exercise of any option or right in favor of Tenant under this Lease.

 

(d) Execution
and Delivery.

 

Submission of this Lease
for examination or signature by Tenant does not constitute a reservation of space or an option for lease, and it is not effective
until execution and delivery by both Landlord and Tenant. Execution and delivery of this Lease by Tenant to Landlord shall constitute
an irrevocable offer by Tenant to lease the Premises on the terms and conditions set forth herein, which offer may not be revoked
for ten (10) business days after such delivery. Tenant covenants, warrants and represents that: (i) each individual executing,
attesting and/or delivering this Lease on behalf of Tenant is authorized to do so on behalf of Tenant, (ii) this Lease is binding
upon Tenant, and (iii) Tenant is duly organized and legally existing in the state of its organization and is qualified to do business
in the state in which the Property is located. Landlord covenants, warrants and represents that: (i) each individual executing,
attesting and/or delivering this Lease on behalf of Landlord is authorized to do so on behalf of Landlord, (ii) this Lease is binding
upon Landlord, and (iii) Landlord is duly organized and legally existing in the state of its organization and is qualified to do
business in the state in which the Property is located.

 

    29

     

    

 

(e) Severability.

 

The invalidity or unenforceability
of any provision of this Lease shall not affect or impair any other provisions.

 

(f) Governing
Law.

 

This Lease shall be
governed by and construed in accordance with the laws of the State in which the Property is located.

 

(g) Joint
and Several Liability.

 

If Tenant is comprised
of more than one party, each such party shall be jointly and severally liable for Tenant’s obligations under this Lease.
Notices, payments and agreements given or made by, with or to any one person or entity shall be deemed to have been given or made
by, with and to all of them.

 

(h) Force
Majeure.

 

Landlord shall not be
in default hereunder and Tenant shall not be excused from performing any of its obligations hereunder if Landlord is prevented
from performing any of its obligations hereunder due to any accident, breakage, strike, delay in obtaining any governmental permit
or license, including any building permit, shortage of materials, act of God or other causes beyond Landlord’s reasonable
control.

 

(i) Parking.

 

Tenant shall have
the right in common with other tenants and occupants of the Property, during the Term and without additional charge, to have the
use of the common parking facilities at the Property for its employees and invitees. Landlord reserves the right to designate and
redesignate areas of the common parking facilities where Tenant, its agents, employees and invitees may park and/or may exclude
Tenant, its agents, employees and invitees from parking in other areas as designated and redesignated by Landlord; provided, however,
that Landlord shall not be liable to Tenant for the failure of any tenant, its invitees, employees, agents and customers to abide
by Landlord’s designations or restrictions. Landlord shall designate ten (10) parking spaces in the location depicted in
red on Exhibit B-1 attached hereto and made a part hereof (“Tenant’s Designated Parking”) for Tenant’s
use; provided however, Landlord shall not be deemed to be in default hereunder or otherwise liable in damages to Tenant, nor shall
the terms of this Lease be affected, if any tenant or occupant of the Building, Edenvale Crossing, or their respective invitees,
employees, agents and customers, or any other party, fails to abide by such designation.

 

(j) Captions.

 

The headings and titles
in this Lease are for convenience only and shall have no effect upon the construction or interpretation of this Lease.

 

(k) No
Waiver.

 

No receipt of money
by Landlord from Tenant after termination of this Lease or after the service of any notice or after the commencing of any suit
or after final judgment for possession of the Premises shall renew, reinstate, continue or extend the Term or affect any such notice
or suit. No waiver of any default of Tenant shall be implied from any omission by Landlord to take any action on account of such
default if such default persists or be repeated, and no express waiver shall affect any default other than the default specified
in the express waiver and then only for the time and to the extent therein stated.

 

(l) No
Recording.

 

Neither Tenant (nor
anyone acting through, under or on behalf of Tenant) shall record this Lease nor a memorandum thereof.

 

    30

     

    

 

(m) Relation
of Parties.

 

It is the intention
of this Lease to create the relation between the parties hereto of landlord and tenant and no other relation whatsoever, and nothing
contained in this Lease (including, without limitation, the method of determining Rent) shall be construed to make the parties
hereto partners or joint venturers or to render either party hereto liable for any of the debts or obligations of the other party.

 

(n) Landlord’s
Representations. Landlord represents and warrants to Tenant that: (i) Landlord is seized in fee simple title to the Property
subject to all covenants, conditions, restrictions, and encumbrances of record; (ii) subject to Section 28(q), Landlord has the
authority to enter into this Lease; (c) the person executing this Lease is duly authorized to execute and deliver this Lease on
behalf of Landlord; (d) Landlord will deliver the Premises in compliance with all applicable governmental rules, laws and regulations;
(e) all utility and mechanical systems, including plumbing, electrical and HVAC systems, are established, connected to the Premises
and are in good working condition and repair; (f) Landlord, during its period of ownership, has received no notice that the Premises
does not comply with Laws; (g) the Building has access to a public road, either directly or as benefited by easements; and (h)
the parking spaces serving the Building are sufficient in number to meet local building codes.

 

(o) Counterparts.
This Lease (and any alterations, amendments or modifications thereto) may be executed in any number of counterparts, each of which
shall be deemed to be an original, and all of such counterparts shall constitute one Lease. To facilitate execution of this Lease
(or any alteration, amendment or modification thereto), the parties may execute and exchange by electronic mail PDF counterparts
of the signature pages. Signature pages may be detached from the counterparts and attached to a single copy of this Lease (or any
alteration, amendment or modification thereto) to physically form one document.

 

(p) Limitation
on Landlord’s Liability.

 

It is expressly understood
and agreed by Tenant that none of Landlord’s covenants, undertakings or agreements are made or intended as personal covenants,
undertakings or agreements by Landlord or the members in Landlord, and any liability of Landlord or the members in Landlord for
damages or breach or nonperformance by Landlord or otherwise arising under or in connection with this Lease or the relationship
of Landlord and Tenant hereunder, shall be collectible only out of Landlord’s interest in the Property, as the same may then
be encumbered, and no personal liability is assumed by, nor at any time may be asserted against any of the Landlord Parties, all
such liability, if any, being expressly waived and released by Tenant. Tenant further expressly understands and agrees that Landlord’s
agent executes this Lease, not in its own right but solely as Landlord’s agent and that nothing in this Lease shall be construed
as creating any liability whatsoever against such Landlord’s agent, its members or their respective shareholders, directors,
officers or employees and in particular, without limiting the generality of the foregoing, there shall be no liability to pay any
indebtedness or sum accruing hereunder, or to perform any covenant or agreement whether express or implied herein contained, it
being agreed that Landlord shall have sole responsibility therefor. Landlord shall have the right to sell or convey and/or master
lease the Building or the Property, and in connection therewith, to transfer and assign its rights under this Lease, and upon any
such transfer and assignment Landlord shall be released from all obligations of the landlord under this Lease accruing after the
effective date of such transfer or assignment, and Tenant agrees to look solely to the successor in interest of Landlord for the
performance of such obligations.

 

(q) Mortgagee
Approval. This Lease is expressly subject to and conditioned upon its approval by the current Mortgagee (the "Current
Mortgagee"). Landlord will give Tenant a written notice of the approval or disapproval of this Lease by the Current Mortgagee
upon Landlord's receipt of same. If this Lease is not approved by the Current Mortgagee within thirty (30) days after the full
execution of this Lease, then Landlord may terminate this Lease by giving a written notice of termination to Tenant at any time
after the expiration of said 30-day period but prior to the date (if ever) that the Current Mortgagee approves this Lease. If this
Lease is terminated under this Section 28(q), then neither party shall have any further rights or obligations under this Lease.

 

END OF TERMS AND CONDITIONS

 

 

31Exhibit
10.1

 

PROPOSAL
FOR SURRENDER OF COLLATERAL AND STRICT FORECLOSURE

 

This
PROPOSAL FOR SURRENDER OF COLLATERAL AND STRICT FORECLOSURE (the “Proposal”), dated as of October 10,
2019, to FTE Networks, Inc., a Nevada corporation (“FTE”), and the other Credit Parties listed on the signature
page hereto, from Lateral Juscom Feeder LLC, a Delaware limited liability company, as the administrative agent (in such capacity,
the “Agent”) under the Credit Agreement referenced below, and the lenders party hereto and their respective
successors and assigns.

 

R
E C I T A L S:

 

WHEREAS,
the Agent, the lenders from time to time party thereto (including their respective successors and assigns, the “Lenders”)
and FTE, Benchmark Builders, Inc. (as used herein, the term “Benchmark” refers to Benchmark Builders, Inc.
and its successors, including by merger) and Jus-Com, Inc. (“Jus-Com”, and together with FTE and Benchmark,
the “Borrower”) have entered into that certain Amended and Restated Credit Agreement, dated as of July 2, 2019
(as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”;
capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the Credit Agreement),
pursuant to which, among other things, (i) the Credit Agreement amended and restated that certain Credit Agreement dated as of
October 28, 2015 (as amended, restated, supplemented or otherwise modified prior to the Credit Agreement, the “Original
Credit Agreement”) and (ii) the Lenders agreed, subject to the terms and conditions set forth in the Credit Agreement,
to make certain financial accommodations to the Credit Parties;

 

WHEREAS,
to induce the Lenders to enter into the Original Credit Agreement, and as consideration therefor, FTE and the other Credit Parties
executed that certain Guaranty and Security Agreement, dated as of October 28, 2015 (the “Guaranty and Security Agreement”),
under which, as security for FTE’s obligations under the Original Credit Agreement and, subsequently, the Credit Agreement,
FTE granted to the Agent, for the benefit of the Lenders, a security interest in substantially all of FTE’s assets (the
“Collateral”), including its equity interests in all of its domestic subsidiaries, all deposit accounts and
all commercial tort claims;

 

WHEREAS,
the Agent perfected the security interests granted to the Lenders (i) by filing Uniform Commercial Code (“UCC”)
financing statements in the applicable jurisdiction of each Credit Party, including the filing of a UCC financing statement with
the Secretary of State of the State of Nevada on or about December 28, 2015, assigned file number 2015035591-5, identifying FTE
as a debtor, and (ii) with respect to deposit accounts pursuant to which perfection is established through control, by entering
into account control agreements with the various banking institutions with which the Credit Parties maintained their accounts,
including that certain Deposit Account Control Agreement, entered into as of February 4, 2019 (the “Bank of America DACA”),
by and among FTE, certain other subsidiaries party thereto, the Agent, and Bank of America, N.A., pursuant to which the Agent,
for the benefit of the Lenders, obtained control over all of FTE’s deposit accounts;

 

WHEREAS,
in connection with FTE’s acquisition of Benchmark on or about April 20, 2017, Benchmark executed a Joinder Agreement, dated
as of April 20, 2017, pursuant to which Benchmark become a party to the Guaranty and Security Agreement and pledged substantially
all of its assets as Collateral to secure the obligations under the Original Credit Agreement (as amended) and, subsequently,
the Credit Agreement;

 

    	 	 	 

    	 

    

 

WHEREAS,
the Agent perfected the security interests granted to the Lenders by Benchmark (i) by filing a UCC financing statement with the
Department of State of the State of New York on or about April 27, 2017, assigned file number 201704270203152, identifying Benchmark
as a debtor, and (ii) with respect to deposit accounts pursuant to which perfection is established through control, by entering
into, among other documents, (x) the Bank of America DACA and (y) that certain Blocked Account Control Agreement, dated as of
June 27, 2018, among Benchmark, JPMorgan Chase Bank, N.A., and the Agent, in each case pursuant to which the Agent, for the benefit
of the Lenders, obtained control over all of Benchmark’s deposit accounts;

 

WHEREAS,
the Agent is in possession of the stock of Benchmark;

 

WHEREAS,
certain Credit Parties hold certain commercial tort litigation claims, fraud claims, and insurance claims against (a) various
lenders under various merchant cash advance or other agreements for Indebtedness that was incurred but not permitted under the
Credit Agreement, including but not limited to claims against those entities set forth on Schedule 1 hereto, and (b) FTE’s
former management arising from the actions of certain officers and directors (i) in breach of their respective employment agreements,
(ii) taken in violation of their fiduciary duties, and/or (iii) taken in contravention of the Credit Agreement resulting in a
default thereunder (collectively, the “Litigation Claims”);

 

WHEREAS,
the Agent properly perfected its security interest granted to the Lenders in the Litigation Claims under the Guaranty and Security
Agreement by filing a UCC financing statement with the Secretary of State of the State of Nevada on or about February 12, 2019,
assigned file number 2019005397-5, identifying FTE as a debtor and identifying the Litigation Claims as the collateral, and filed
similar UCC financing statements in each applicable jurisdiction with respect to the other Credit Parties;

 

WHEREAS,
on or around July 31, 2019, certain judgments in the aggregate amount of approximately $4.2 million were entered against FTE in
favor of six holders of convertible notes of FTE, and FTE failed to satisfy, vacate or stay the first such judgment entered within
30 days, thereby triggering an Event of Default under the Credit Agreement (the “Existing Default”);

 

WHEREAS,
based upon the Credit Parties’ current liquidity needs and the distressed circumstances in which they are operating, and
the historical and projected earnings of the Credit Parties’ businesses, the Lenders believe there is not enough value to
repay the Obligations in full and, therefore, insufficient asset value for any recovery for any junior priority or subordinated
obligations, any unsecured creditors and the equity owners of FTE;

 

WHEREAS,
the Lenders have proposed to transfer (i) to Benchmark Holdings LLC (“Benchmark Holdings”), all of FTE’s
(a) equity interests in Benchmark (the “Benchmark Equity”) and (b) cash on hand at FTE in excess of specified
levels, as more particularly provided herein (“FTE Cash” and, together with the Benchmark Equity, the “Benchmark
Subject Collateral”) and (ii) to Lateral Recovery LLC (“Lateral Holdings” and, together with Benchmark
Holdings, the “Foreclosing Lenders”), all of the Credit Parties’ interests in the Litigation Claims (the
“Lateral Subject Collateral” and, together with the Benchmark Subject Collateral, the “Subject Collateral”),
in each case free and clear of all liens, claims, interests and encumbrances to the full extent provided under applicable law,
in full satisfaction of the Obligations, pursuant to Article 9-620 of the UCC, as adopted in the State of New York (the “New
York UCC”);

 

    	 	-2-	 

    	 

    

 

WHEREAS,
subject to the terms hereof, the Agent and the Foreclosing Lenders have agreed to accept the Subject Collateral in full satisfaction
of the Obligations, by surrender (i) of the Benchmark Subject Collateral to Benchmark Holdings and (ii) of the Lateral Subject
Collateral to Lateral Holdings.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Agent and the
Foreclosing Lenders propose as follows:

 

Section
1. Recitals Incorporated. The recitals and prefatory phrases and paragraphs
set forth above are hereby incorporated in full, and made a part of, this Proposal.

 

Section
2. ACKNOWLEDGMENTS

 

2.1.
Acknowledgment of Obligations. By consenting to this Proposal, each Credit Party acknowledges, confirms and agrees that
as of the close of business on October 9, 2019, (a) the Borrower is indebted to the Lenders in respect of (i) the Existing
Term Loans in the aggregate principal amount of not less than $40,907,224 plus accrued but unpaid interest in the aggregate
amount of not less than $1,363,574, and (ii) the Super Senior Term Loans in the aggregate principal amount of $13,365,595
plus accrued but unpaid interest in the aggregate amount of not less than $178,208. By consenting to this Proposal,
each Credit Party further acknowledges, confirms and agrees that all such Term Loans, together with interest accrued and accruing
thereon (including any interest at the default rate), and all fees, costs, expenses and other charges now or hereafter payable
by any Credit Party to the Agent and the Lenders, are unconditionally owing by such Credit Party to the Agent and the Lenders,
without offset, defense or counterclaim of any kind, nature or description whatsoever.

 

2.2.
Acknowledgment of Security Interests. By consenting to this Proposal, each Credit Party acknowledges, confirms and agrees
that the Agent has a valid, enforceable and perfected first-priority lien upon and security interest in the Collateral (including
the Subject Collateral) heretofore granted to the Agent (on behalf of the Lenders) pursuant to the Credit Agreement and the Loan
Documents or otherwise granted to or held by the Agent.

 

2.3.
Binding Effect of Documents. By consenting to this Proposal, each Credit Party acknowledges, confirms and agrees that:
(a) the agreements and obligations of each Credit Party contained in each of the Credit Agreement and the other Loan Documents
and in this Proposal constitute the legal, valid and binding Obligations of such Credit Party, enforceable against it in accordance
with its respective terms, and such Credit Party has no valid defense to the enforcement of such Obligations, and (b) the Agent
and the Lenders are and shall be entitled to the rights, remedies and benefits provided for under the Credit Agreement, the other
Loan Documents and applicable law.

 

    	 	-3-	 

    	 

    

 

2.4.
Acknowledgement of Defaults. By consenting to this Proposal, each Credit Party acknowledges and agrees that the Existing
Default has occurred and is continuing and constitutes an “Event of Default,” as defined under the Credit Agreement,
and entitle the Foreclosing Lenders (constituting all Lenders under the Credit Agreement) and the Agent on behalf of the Foreclosing
Lenders to exercise their respective rights and remedies under the Loan Documents, applicable law, or otherwise.

 

2.5.
All Lenders are Parties to the Proposal. The Agent and undersigned Lenders represent and warrant that the undersigned Lenders
(i) constitute Required Lenders under the Credit Agreement, (ii) constitute all Lenders under the Credit Agreement, (iii) own
in the aggregate 100% of the Loans outstanding under the Credit Agreement, and (iv) shall provide this Proposal in advance of
any assignment to, and shall be binding on, their respective assignees.

 

Section
3. SURRENDER OF COLLATERAL AND STRICT FORECLOSURE.

 

3.1.
Strict Foreclosure. Pursuant to Articles 9-620 and 9-621 of the New York UCC, and solely to the extent applicable to the
transactions contemplated hereby, as adopted in other states, the Foreclosing Lenders agree as of the Effective Date to accept
FTE’s and the other Credit Parties’ interests in the Subject Collateral in full satisfaction of the Obligations (the
“Strict Foreclosure”). Upon the effectiveness of the Strict Foreclosure on the Effective Date (as defined below),
(i) Benchmark Holdings, in respect of the Benchmark Subject Collateral, and (ii) Lateral Holdings, in respect of the Lateral Subject
Collateral, shall own all of the Credit Parties’ rights, titles and interests in and to the applicable Subject Collateral
free and clear of all liens, claims, interests and encumbrances to the full extent provided under applicable law. Each Credit
Party irrevocably consents to and unconditionally accepts the Foreclosing Lenders’ and the Agent’s acceptance of the
Subject Collateral as set forth above in satisfaction of the Obligations in accordance with and as required by Articles 9-620(a)(1)
and 9-620(c)(2) of the New York UCC. Each Credit Party agrees the Strict Foreclosure shall constitute an “acceptance”
of collateral in satisfaction of the Obligations in accordance with and to the extent required by Articles 9-620(a)(1) and 9-620(c)(2)
of the New York UCC. The Credit Parties shall execute and deliver to the Foreclosing Lenders and the Agent such additional documents
and take such further action as may be necessary or reasonably desirable to effectuate the Strict Foreclosure. By consenting to
this Proposal, the Credit Parties (a) covenant and agree that they will not challenge, object to or otherwise contest the effectiveness
of the Strict Foreclosure; and (b) waive any right to redeem the Subject Collateral under Article 9-623 of the New York UCC. In
accordance with Articles 9-620 through 9-622 of the New York UCC, subject to the terms and conditions set forth in this Proposal,
on the Effective Date, the Foreclosing Lenders hereby direct the Agent to convey, and based on that direction, the Agent hereby
conveys all of its right, title and interest in and to (i) the Benchmark Subject Collateral to Benchmark Holdings and (ii) the
Lateral Subject Collateral to Lateral Holdings.

 

3.2.
Acceptance of Subject Collateral in Full Satisfaction. The Agent, at the direction of the Foreclosing Lenders, hereby accepts
the transfers pursuant to Article 9-620 of the New York UCC and other applicable laws, of all of each Credit Party’s right,
title and interest in and to the Subject Collateral in full satisfaction of the Obligations.

 

    	 	-4-	 

    	 

    

 

3.3.
Effect of Acceptance of Subject Collateral. By consenting to this Proposal, each Credit Party: (a) agrees that it has received
notice sufficient for compliance with Articles 9-620 and 9-621 of the New York UCC and, in the alternative, expressly waives (i)
any requirement for receipt of such notice and any right to notification of sale, transfer, conveyance or surrender of the Subject
Collateral pursuant to Articles 9-620 and 9-621 of the New York UCC, and (ii) any remedies, rights, defenses or actions such Credit
Party might have as a result of failure to have received such notice; (b) waives the right, if any, to redeem the Subject Collateral
under Article 9-623 of the New York UCC or otherwise; (c) waives any right to object to the sale, transfer, conveyance or surrender
of the Subject Collateral pursuant to Article 9-620 of the New York UCC or otherwise; (d) waives any obligation of the Agent to
dispose of the Subject Collateral; (e) waives any other right, whether legal or equitable, that such Credit Party may have in
and to the Subject Collateral; and (f) agrees that the transactions contemplated herein are commercially reasonable.

 

3.4.
Transfer of Ownership in Satisfaction of Liens and Claims. Upon the occurrence of the Effective Date, the Agent and Lenders
conclusively are deemed to have released their liens and security interests in all Collateral other than the Subject Collateral.
With respect to the Subject Collateral, ownership of the Subject Collateral shall be vested with Benchmark Holdings, in respect
of the Benchmark Subject Collateral, and Lateral Holdings, in respect of the Lateral Subject Collateral. Upon the occurrence of
the Effective Date, the Credit Parties are released from any and all continuing Obligations to and claims of the Agent and Lenders
under the Credit Agreement, the Guaranty and Security Agreement, or any other Loan Documents. The Agent and Lenders undertake
to execute, deliver and/or file any and all termination statements and other instruments as may be necessary or appropriate, in
each applicable governmental agency or UCC filing office, promptly following the Effective Date so as to properly reflect the
release of all liens and security interests in all Collateral other than the Subject Collateral.

 

Section
4. representations and warranties

 

4.1.
Credit Party Representations and Warranties. By consenting to this Proposal, each Credit Party hereby represents, warrants
and covenants as follows:

 

(a)
Each Credit Party (i) is a corporation, limited liability company or limited partnership, as applicable, duly organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation, organization or formation, as applicable;
and (ii) has the power and authority to execute, deliver, and perform its obligations under, this Proposal.

 

(b)
The execution, delivery and performance by each of the Credit Parties of this Proposal have been duly authorized by all necessary
action, and do not and will not (i) contravene the terms of any of that Person’s Organization Documents or (ii) conflict
with or result in any material breach or contravention of, or result in the creation of any Lien under, any order, injunction,
writ or decree of any governmental authority to which such Person or its Property is subject.

 

    	 	-5-	 

    	 

    

 

(c)
No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any governmental authority is
necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Credit Party or
any Subsidiary of any Credit Party of this Proposal.

 

(d)
The acceptance of and consent to this Proposal constitutes the legal, valid and binding obligation of the Credit Parties, enforceable
against such Person in accordance with its respective terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating
to enforceability.

 

Section
5. CONDITIONS TO EFFECTIVENESS OF THIS PROPOSAL

 

5.1.
Conditions to Effectiveness. This Proposal shall become effective at the time (the “Effective Date”)
that all of the following conditions precedent have been met (or waived) as determined by the Agent and the Forbearing Lenders
in their sole discretion:

 

(a)
the Agent shall have received duly executed signature pages for this Proposal signed by the Agent, the Foreclosing Lenders, FTE
and the other Credit Parties;

 

(b)
the following debt shall have been contributed to Benchmark Holdings: (i) the CFGMS Debt, and (ii) the LeoGroup Debt (and the
Credit Parties, by consenting to this Proposal, consent to any transfer of the LeoGroup Debt to effectuate the contribution);

 

(c)
Benchmark shall have converted to a limited liability company;

 

(d)
FTE shall receive one or more documents, in form and substance reasonably acceptable to FTE and the Administrative Agent, providing
for (i) the transfer of the Series H stock and (ii) the release of all obligations under the Amended Sacramone Note, the Amended
Series A Benchmark Notes and the Amended Series B Benchmark Notes, in each case on terms and conditions set forth therein; and

 

(e)
FTE, Benchmark Holdings, and Benchmark shall enter into and execute a transition services agreement (the “Transition
Services Agreement”), in the form attached hereto as Exhibit A.

 

Section
6. ASSIGNMENT OF CLAIMS

 

6.1.
Ownership of Claims. In consenting to this Proposal, the Credit Parties acknowledge that, as of the Effective Date, they
own and have all rights in the Litigation Claims and have not sold, assigned, pledged, encumbered or in any way transferred or
granted any rights or interests with respect to the Litigation Claims, other than the grant of a security interest in the Litigation
Claims under the Loan Documents.

 

    	 	-6-	 

    	 

    

 

6.2.
Effect of Foreclosure. By consenting to this Proposal, the Credit Parties acknowledge and agree that (a) as a result of
the Strict Foreclosure on the Litigation Claims and the acceptance of the Litigation Claims by Lateral Holdings, effective on
the Effective Date the Credit Parties shall have no further interest, right, title or ownership in the Litigation Claims or right
to initiate, advance or otherwise prosecute any or all of the Litigation Claims, and (b) from and after the Effective Date, Lateral
Holdings shall have succeeded to all rights, titles and interests of the Credit Parties in and to the Litigation Claims, ownership
of the Litigation Claims shall vest in Lateral Holdings, Lateral Holdings shall be the sole owner of the Litigation Claims and
may take any and all actions in accordance with such rights, including without limitation to (i) initiate legal proceedings against
any party related to the Litigation Claims and (ii) collect and keep for its own benefit all damages or other payments (including,
without limitation, settlement payments) that it may collect from any party based on the Litigation Claims; provided, however,
that any payments received after Lateral Holdings has received payments in an aggregate amount of $25.0 million (net of all costs
and expenses, including attorneys’ fees and other professional fees, incurred in pursuing the Litigation Claims) shall be
turned over to FTE by Lateral Holdings for FTE’s benefit.

 

Section
7. MISCELLANEOUS

 

7.1.
Transition Services Agreement. On the Effective Date, FTE, Benchmark and Benchmark Holdings shall enter into the Transition
Services Agreement, in the form attached hereto as Exhibit A, to allow FTE to utilize certain facilities and equipment
of Benchmark for a limited period of time.

 

7.2.
Working Capital Cash Payments to FTE.

 

(a)
Schedule 2 to this Proposal sets forth a list of all accounts payable, Indebtedness for borrowed money, convertible note
obligations, back rent (and accelerated rent, if any), under capital or operating leases, judgments, guarantees of subsidiary
Indebtedness or obligations, and any other monetary obligation that potentially may be due and owing to a creditor of FTE as of
the Effective Date (the “Remainder Obligations”). By consenting to this Proposal, FTE certifies to Agent that
Schedule 2 is a complete, true and accurate list of all Remainder Obligations as of the date hereof.

 

(b)
Beginning on the first Business Day of each month following the Effective Date and thereafter until the earlier of (i) October
10, 2021, (ii) the repayment in full of the Remainder Obligations, and (iii) the occurrence of a Working Capital Termination
Event (as defined below) (such period, the “Working Capital Period”), Benchmark shall remit $300,000 (the “Working
Capital Cash Payment”) to FTE. A “Working Capital Termination Event” means any of the following:
(i) the certification set forth in Section 7.2(a) is not true as of the date made; (ii) FTE shall have breached the covenant
in Section 7.2(d); (iii) FTE and its subsidiaries shall, for three consecutive months during the Working Capital Period,
have positive cash flow (as determined in accordance with the accounting principles, policies and procedures FTE applies to the
preparation of its financial statements, in excess of $100,000; (iv) FTE shall merge, consolidate, amalgamate or enter into any
similar combination with (including by division) any other Person or complete the liquidation, wind-up or dissolution of itself
(or suffer any liquidation or dissolution to be completed); (v) any of the Credit Parties commences an Insolvency Proceeding;
or (vi) an involuntary Insolvency Proceeding is commenced against any Credit Party and is not dismissed within sixty days thereof.
At Benchmark’s election, if FTE fails to make a timely payment of any Remainder Obligation, and such payment default has
not been remedied within the applicable cure period under the relevant governing document (if any), Benchmark may make such payment
directly to the obligee of such Remainder Obligation and deduct the amount of such payment from the next Working Capital Cash
Payment(s).

 

    	 	-7-	 

    	 

    

 

(c)
Benchmark shall transfer $3 million of cash to FTE on the Effective Date; provided that in order to satisfy the foregoing
obligation, Benchmark may elect to foreclose on all of FTE’s cash on hand except for $3 million.

 

(d)
FTE shall use the Working Capital Cash Payment to fund the Remainder Obligations set forth on Schedule 2 hereto as well
as for any reasonable premium or other reasonable payments required to maintain director and officer insurance covering FTE’s
directors.

 

(e)
The Remainder Obligations are not being assumed by Benchmark, Benchmark Holdings, Lateral Holdings, the Agent, the Foreclosing
Lenders, or any other party, and no party other than FTE and the Credit Parties (other than Benchmark) shall be liable for such
obligations. In consenting to this Proposal, and subject to the timely payment to FTE of all required Working Capital Cash Payments,
FTE and the Credit Parties (other than Benchmark) agree to indemnify (which such indemnity may take the form of offset against
future Working Capital Cash Payments) and hold harmless Benchmark, Benchmark Holdings, Lateral Holdings, the Agent, the Foreclosing
Lenders, Brian McMahon and Fred Sacramone, and each of their respective affiliates and each of their respective directors, officers,
employees, partners, representatives, investors, advisors and agents and each of their respective successors and assigns (each,
a “Working Capital Indemnified Party”) from and against any and all Claims (as defined below) brought after
the Effective Date against a Working Capital Indemnified Party that relate to FTE’s failure to pay any of the Remainder
Obligations owed by it.

 

7.3.
Reaffirmation. By consenting to this Proposal, each Credit Party confirms that until the occurrence of the Effective Date,
the Obligations are and continue to be secured by the security interests granted by such Credit Party in favor of the Agent for
the benefit of the Lenders under the Guaranty and Security Agreement.

 

7.4.
Further Assurances. The parties hereto shall execute and deliver such additional documents and take such further action
as may be necessary or desirable to effectuate the provisions and purposes of this Proposal, including to ensure the Benchmark
Subject Collateral is vested in Benchmark Holdings and the Lateral Subject Collateral is vested in Lateral Holdings.

 

7.5.
Successors and Assigns. This Proposal shall be binding upon and inure to the benefit of each of the parties hereto and
their respective successors and assigns.

 

7.6.
Severability. Any provision of this Proposal held by a court of competent jurisdiction to be invalid or unenforceable shall
not impair or invalidate the remainder of this Proposal.

 

    	 	-8-	 

    	 

    

 

7.7.
Reviewed by Attorneys. Each party has been afforded an opportunity to discuss this Proposal with, and have this Proposal
reviewed by, such attorneys and other persons as such party may wish, and has entered into this Proposal and executed and delivered
all documents in connection herewith, of its own free will and accord and without threat, duress or other coercion of any kind
by any Person. The parties hereto acknowledge and agree that neither this Proposal nor the other documents executed pursuant hereto
shall be construed more favorably in favor of one than the other based upon which party drafted the same, it being acknowledged
that all parties hereto contributed substantially to the negotiation and preparation of this Proposal and the other documents
executed pursuant hereto or in connection herewith.

 

7.8.
Release by Credit Parties. By consenting to this Proposal, except for Claims (as defined below) expressly arising under
this Proposal, FTE and the other Credit Parties each hereby absolutely and unconditionally releases and forever discharges the
Agent and the Lenders, and, solely in their respective capacities as such, any and all participants, parent corporations, subsidiary
corporations, affiliated corporations, insurers, indemnitors, successors and assigns of the Agent and the Forbearing Lenders,
together with all of the present and former directors, officers, agents, attorneys, and employees of any of the foregoing, each
solely in its respective capacity as such (collectively, the “Releasees”), from any and all any and all actions,
causes of action, counterclaims, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants,
contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, extents, executions, rights, claims,
demands, liabilities, losses, rights to reimbursement, subrogation, indemnification or other payment, costs or expenses, and reasonable
attorneys’ fees, whether at law or in equity, of any kind, nature or description whatsoever, known or unknown, suspected
or unsuspected, fixed or contingent, and whether representing a past, present or future obligation (“Claims”),
whether arising in law or equity or upon contract or tort or under any provincial, state, local or federal law or otherwise, which
the Borrower or the other Credit Parties have had, now have or have made claim to have against any such person for or by reason
of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Proposal,
whether such claims, demands and causes of action are matured or unmatured or known or unknown (the “Release”).
It is the intention of the Borrower and the other Credit Parties in consenting to this Proposal that the Release shall be effective
as a bar to each and every Claim except for any Claims expressly arising under this Proposal. By consenting to this Proposal,
FTE and the other Credit Parties acknowledge that each may hereafter discover facts different from or in addition to those now
known or believed to be true with respect to such Claims and agree that this instrument shall be and remain effective in all respects
notwithstanding any such differences or additional facts.

 

7.9.
Release of Other Indebtedness. On the Effective Date, Benchmark Holdings hereby absolutely and unconditionally releases
and forever discharges FTE and the other Credit Parties from (i) the CFGMS Debt, and (ii) the LeoGroup Debt (the foregoing, collectively,
the “Released Debt Obligations”).

 

7.10.
Relationship. The relationship between the Agent and the Foreclosing Lenders, on the one hand, and Credit Parties, on the
other hand, is that of creditor and debtor and not that of partners or joint venturers. This Proposal does not constitute a partnership
agreement, or any other association between the Agent and Forbearing Lenders, on the one hand, and Credit Parties, on the other
hand. In consenting to this Proposal, each Credit Party acknowledges that the Agent and the Foreclosing Lenders have acted at
all times only as a creditor to the Credit Parties within the normal and usual scope of the activities normally undertaken by
a creditor and in no event have the Agent or the Foreclosing Lenders attempted to exercise any control over the Credit Parties
or their business or affairs.

 

    	 	-9-	 

    	 

    

 

7.11.
Indemnification. Each Credit Party (other than Benchmark) agrees to indemnify (which such indemnity may take the form of
offset against future Working Capital Cash Payments) and hold harmless Benchmark, Benchmark Holdings, and each of their respective
affiliates and each of their respective directors, officers, employees, partners, representatives, investors, advisors and agents
and each of their respective successors and assigns from and against (i) any and all Claims brought after the Strict Foreclosure
that relate to FTE and that (A) are not claims brought by or on behalf of existing stockholders or creditors of FTE (including
derivative claims brought by one or more stockholders on behalf of FTE) concerning the validity or legality of the foreclosure
and related transactions contemplated by this Proposal and (B) do not primarily relate to or arise from Benchmark’s business
or operations prior to the Effective Date, and (ii) any liability of any Credit Party (other than Benchmark) for taxes (including
any interest, penalties or other additions thereto), and (iii) without duplication, any liability for taxes (including any interest,
penalties or other additions thereto) of the “affiliated group” (within the meaning of Section 1504 of the Internal
Revenue Code) of which FTE is the common parent or any consolidated, combined, unitary or similar group under state or local tax
law that includes Benchmark, on the one hand, and any Credit Party (other than Benchmark), on the other hand, including any liability
arising from the several liability for taxes of such affiliated group under Treasury Regulations Section 1.1502-6 or any
analogous provisions of state or local tax law.

 

7.12.
Final Agreement. This Proposal represents the final agreement between the parties hereto with respect to its subject matter
and may not be contradicted by evidence of prior or contemporaneous oral agreements among the parties. There are no oral agreements
between the parties hereto with respect to the subject matter of this Proposal.

 

7.13.
Revival of Obligations. Notwithstanding any other provision of this Proposal, and in the event FTE or any other Credit
Party becomes a debtor in a case under Title 11 of the United States Code (the “Bankruptcy Code”), in the event
that the foreclosure on and resulting transfer of the Subject Collateral, or any part thereof, is subsequently invalidated, declared
to be a fraudulent or preferential transfer, set aside, avoided and/or required to be repaid to a trustee, receiver or any other
party, whether under any bankruptcy law, state or federal law, common law or equitable cause, or otherwise, then the Obligations
and the Released Debt Obligations, together with all defenses, claims, counterclaims, rights and remedies, both legal and equitable,
that FTE or any Credit Party has or may have under the Credit Agreement, the applicable governing document or applicable law in
respect of the Released Debt Obligations, shall be revived and reinstated and shall continue in full force and effect until (i)
the Lenders have received payment in full in respect of the Obligations and (ii) Benchmark Holdings has received payment in full
in respect of the Released Debt Obligations.

 

    	 	-10-	 

    	 

    

 

7.14.
Governing Law and Jurisdiction.

 

(a)
Governing Law. The laws of the State of New York shall govern all matters arising out of, in connection with or relating
to this Proposal and all transactions and agreements contemplated hereby, including its validity, interpretation, construction,
performance and enforcement (including any claims sounding in contract or tort law arising out of the subject matter hereof and
any determinations with respect to post-judgment interest).

 

(b)
Submission to Jurisdiction. Any legal action or proceeding with respect to this Proposal shall be brought exclusively in
the courts of the State of New York located in the City of New York, Borough of Manhattan, or of the United States of America
sitting in the Southern District of New York and each Credit Party consenting to this Proposal hereby accepts for itself and in
respect of its Property, generally and unconditionally, the jurisdiction of the aforesaid courts; provided that nothing in this
Proposal shall limit the right of the Agent to commence any proceeding in the federal or state courts of any other jurisdiction
to the extent the Agent determines that such action is necessary or appropriate to exercise its rights or remedies under this
Proposal. The parties hereto irrevocably waive any objection, including an objection to the laying of venue or based on the grounds
of forum non conveniens, that any of them may now or hereafter have to the brining of any such action or proceeding in
such jurisdictions.

 

(c)
Service of Process. By consenting to this Proposal, each Credit Party (i) irrevocably waives personal service of any and
all legal process, summons, notices and other documents and other service of process of any kind and consents to such service
in any suit, action or proceeding brought in the Unites States with respect to or otherwise arising out of or in connection with
this Proposal by any means permitted by applicable Requirements of Law, including by the mailing thereof (by registered or certified
mail, postage prepaid) to the address of the Borrower specified in the Credit Agreement (and shall be effective when such mailing
shall be effective, as provided therein), and (ii) agrees that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

7.15.
Waiver of Jury Trial. THE PARTIES HERETO, TO THE EXTENT PERMITTED BY LAW, WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS PROPOSAL, THE OTHER LOAN DOCUMENTS AND ANY OTHER TRANSACTION
CONTEMPLATED HEREBY AND THEREBY. THIS WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE.

 

7.16.
Headings. The captions and headings of this Proposal are for convenience of reference only and shall not affect the interpretation
of this Proposal.

 

7.17.
Counterparts. This Proposal and consents hereto may be executed in any number of counterparts, but all of such counterparts
shall together constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Proposal
by facsimile or electronic mail shall be effective as delivery of a manually executed counterpart hereof.

 

IN
WITNESS WHEREOF, this Proposal is executed and delivered as of the day and year first above written.

 

[Signature
Pages Follow]

 

    	 	-11-	 

    	 

    

 

	 	AGENT:
	 	 	 
	 	LATERAL JUSCOM FEEDER LLC, as Agent
	 	 	 
	 	By:	Lateral Investment Management, LLC, its Manager
	 	 	 
	 	By:	/s/
    Richard de Silva
	 	Name:	Richard de Silva
	 	Title:	Manager
	 	 	 
	 	FORECLOSING LENDER:
	 	 
	 	LATERAL RECOVERY LLC, as a Lender
    and a Foreclosing Lender
	 	 	 
	 	By:	 
	 	 	 
	 	By:	/s/
    Richard de Silva
	 	Name:	Richard
    de Silva
	 	Title:	Manager
	 	 	 
	 	BENCHMARK HOLDINGS LLC, as a Lender
    and a Foreclosing Lender
	 	 	 
	 	By:	 
	 	 	 
	 	By:	/s/
    Richard de Silva
	 	Name:	Richard
    de Silva
	 	Title:	Manager

 

[Signature
Page to Surrender of Collateral and Consent to Strict Foreclosure]

 

    	 	 	 

    	 

    

 

Schedule
1

 

ACCEPTED
AND CONSENTED TO:

 

FTE:

 

FTE
NETWORKS, INC.

 

	By	/s/
    Fred Sacramone	 
	Name	Fred
    Sacramone	 
	Title	Interim
    CEO	 
	 	 	 

 

CREDIT
PARTIES:

 

JUS-COM,
INC.

BENCHMARK
BUILDERS, INC.

FOCUS
VENTURE PARTNERS, INC.

FTE
HOLDINGS, LLC

OPTOS
CAPITAL PARTNERS, LLC

FOCUS
FIBER SOLUTIONS, LLC

CROSSLAYER,
INC.

UBIQ
COMMUNICATIONS, LLC

FOCUS
WIRELESS, LLC

 

	By	/s/
    Fred Sacramone	 
	Name	Fred
    Sacramone	 
	Title	Interim
    CEO	 

 

[Signature
Page to Surrender of Collateral and Consent to Strict Foreclosure]

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