Document:

Exhibit 10.1

 

LEASE

 

DATED

 

December 15,
2017

 

by and between

 

IIP-AZ 1
LLC, 

a Delaware
limited liability company

 

and

 

SUN GROWN
SOLUTIONS, LLC,

an Arizona limited liability company

 

     

     

    

 

LEASE AGREEMENT

 

This Lease Agreement (this "Lease"),
dated December 15, 2017 (the "Execution Date"), is made between IIP-AZ 1 LLC, a Delaware limited liability company
("Landlord"), and SUN GROWN SOLUTIONS, LLC, an Arizona limited liability company ("Tenant").

 

RECITALS

 

A.           WHEREAS,
concurrent with the execution of this Lease, Landlord closed on the purchase of certain real property (the "Property")
and the improvements on the Property located at 5900 West Greenhouse Drive, Willcox, Arizona, including the building(s) located
thereon (individually and collectively, the "Building" and, together with the Property, the "Project"),
pursuant to that certain Purchase and Sale Agreement, dated November 21, 2017 (the "Purchase Agreement"), by and
between Landlord and Flying Dutchman Real Estate Holdings, LLC ("Seller"), an affiliate of Tenant; and

 

B.           WHEREAS,
Landlord wishes to lease to Tenant, and Tenant desires to lease from Landlord, the Premises (as defined below), pursuant to the
terms and conditions of this Lease, as detailed below; and

 

C.           WHEREAS,
each of Flying Dutchman Real Estate Holdings, LLC, Flying Dutchman Properties, LLC, Green Thumb Management, LLC, Pharm Ingram,
LLC and Sensible Growth, LLC (each a "Guarantor") is an affiliate of Tenant that is deriving a benefit from Landlord
and Tenant entering into this Lease, and has agreed to enter into a guaranty in the form attached as Exhibit D hereto (the
"Guaranty"), without which Landlord would not agree to enter into this Lease.

 

AGREEMENT

 

NOW, THEREFORE, Landlord
and Tenant, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally bound, agree as follows:

 

1.           Lease
of Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the premises shown on Exhibit A
attached hereto, including shafts, cable runs, mechanical spaces, rooftop areas, landscaping, parking facilities, private drives
and other improvements and appurtenances related thereto (including the Building), for use by Tenant in accordance with the Permitted
Use (as defined below) and no other uses (collectively, the "Premises").

 

2.           Basic
Lease Provisions. For convenience of the parties, certain basic provisions of this Lease are set forth herein. The provisions
set forth herein are subject to the remaining terms and conditions of this Lease and are to be interpreted in light of such remaining
terms and conditions.

 

2.1.          The
monthly Base Rent for the first twelve (12) months of the Term of the Lease shall be equal to Two Hundred Ten Thousand Dollars
($210,000), subject to subsequent adjustment under this Lease.

 

2.2.          Security
Deposit: Six Hundred Thirty Thousand Dollars ($630,000).

 

2.3.          "Permitted
Use": Tenant shall have the right to use, occupy and lease the Premises for the purpose of developing, operating and managing
a duly licensed cannabis cultivation, extraction and processing facility as described in the “Authorization for Use of
Premises” shown on Exhibit F attached hereto, agricultural growth, and processing of agricultural materials, industrial
and office space, in accordance with current zoning for the Premises and in conformity with all Applicable Laws (as defined below),
and such other related use or uses permitted under Applicable Laws.

 

    	 	2	 

     

    

 

2.4.          Address
for Rent Payment:           IIP-AZ 1 LLC

 

Bank:

Bank Address: 

ABA#:

Account#:

 

2.5.          Address
for Notices to Landlord:

 

IIP-AZ 1 LLC

11440 West Bernardo Court, Suite 220

San Diego, California 92127

Attn: General Counsel

 

2.6.          Address
for Notices and Invoices to Tenant:

 

Sun Grown Solutions, LLC

7201 E. Camelback Road, Suite 350

Scottsdale, AZ 85251

Attn: Monica Morales, Corporate Director
of Operations

 

2.7.          The
following Exhibits are attached hereto and incorporated herein by reference:

 

	Exhibit A	Premises
	Exhibit B	Tenant's Personal Property
	Exhibit C	Form of Estoppel Certificate
	Exhibit D	Form of Guaranty
	Exhibit E	Work Letter
	Exhibit E-1	Tenant Work Insurance Requirements
	Exhibit F	Authorization for Use of Premises

 

		3.	Term and Extension Options.

 

3.1.         Term.
The actual term of this Lease (as the same may be extended or earlier terminated in accordance with this Lease, the "Term")
shall commence on December 15, 2017 (the "Commencement Date") and end on December 15, 2032, subject to extension
or earlier termination of this Lease as provided herein.

 

3.2.          Options
to Extend Term. Tenant shall have two (2) options (each an "Extension Option") to extend the Term of this
Lease for a period of five (5) years each (each an "Extension Period"), on the same terms and conditions in effect
under this Lease immediately prior to the commencement of the Extension Period, except that (a) Tenant shall have no further
right to extend the Term of this Lease after the second Extension Period, (b) the Base Rent payable during the Extension Period
shall be an amount equal to One Hundred Three and One-Quarter Percent (103.25%) of the Base Rent in effect immediately prior to
the Extension Period, and such Base Rent shall thereafter be subject to an annual upward adjustment of three and one-quarter percent
(3.25%) of the then-current Base Rent commencing on the first annual anniversary of the commencement of the Extension Period and
on every successive annual anniversary for the duration of the Extension Period.

 

3.2.1.          If
Tenant exercises an Extension Option, such Extension Option shall apply to the entire Premises (and no less than the entire Premises).
Tenant may exercise an Extension Option only by giving Landlord irrevocable and unconditional written notice thereof (the "Extension
Notice") not later than six (6) months prior to the commencement date of the Extension Period. Upon delivery of the
Extension Notice, Tenant shall be irrevocably bound to lease the Premises for the Extension Period.

 

3.2.2.          Notwithstanding
the foregoing, Tenant shall not have the right to exercise an Extension Option (i) during the time commencing from the date Landlord
delivers to Tenant a written notice that Tenant is in default under any provisions of this Lease and continuing until Tenant has
cured the specified default to Landlord's reasonable satisfaction; (ii) at any time after any Default (provided, however, that,
for purposes of this Section 3.2, Landlord shall not be required to provide Tenant with notice of such Default) and continuing
until Tenant cures any such Default, if such Default is susceptible to being cured; or (iii) in the event that Tenant has defaulted
in the performance of its obligations under this Lease two (2) or more times during the six (6)-month period immediately prior
to the date that Tenant intends to exercise an Extension Option, whether or not Tenant has cured such defaults.

 

    	 	3	 

     

    

 

3.2.3.          If
Tenant shall fail to timely exercise the Extension Option in accordance with the provisions of this Section 3.2, then the
Extension Option shall terminate, and shall be null and void and of no further force and effect. If this Lease or Tenant's right
to possession of the Premises shall terminate in any manner whatsoever before Tenant shall exercise the Extension Option, or if
Tenant shall have assigned or transferred any interest in this Lease or sublet any part of the Premises (other than in the case
of a Permitted Transfer as set forth in Section 16.8 below), then immediately upon such termination, assignment, transfer or sublease,
the Extension Option shall simultaneously terminate and become null and void. Time is of the essence with regard to this Section 3.2.

 

3.2.4.          The
Extension Options are conditioned upon each Guarantor executing an amendment to such Guarantor's Guaranty that explicitly extends
such Guarantor's obligations so that each Guarantor guarantees Tenant's Lease obligations incurred pursuant to Tenant's timely
and proper exercise of an Extension Option. Notwithstanding anything in this Lease or the applicable Guaranty to the contrary,
Landlord agrees to execute a commercially reasonable form of subordination agreement that subordinates Landlord's rights under
a Guaranty to an institutional lender’s or third party financing source’s rights with respect to a contemplated financing
by the applicable Guarantor, provided that the following conditions are satisfied: 1) the subordination of the Guaranty is a requirement
of the lender or other third party financing source to provide the financing to the Guarantor; and 2) at the time of Landlord's
execution of such subordination agreement, (a) neither Tenant nor any Guarantor is then in default of its obligations under the
Lease or any Guaranty; and (b) neither Tenant nor any Guarantor has defaulted on its obligations under either the Lease or any
Guaranty more than two (2) times during the immediately prior six (6) month period.

 

		4.	Possession.

 

4.1.       Possession.
Tenant hereby acknowledges that immediately prior to the Commencement Date, Tenant was in possession of the Premises, and is familiar
with the condition thereof and accepts the Premises in its "as is" condition with all faults, and Landlord makes no representation
or warranty of any kind with respect the Premises, and Landlord will have no obligation to improve, alter or repair the Premises.
It is understood and agreed that Landlord is not obligated to install any equipment, or make any repairs, improvements or alterations
to the Premises. Tenant's continued occupancy and possession of the Premises following the Closing (as defined in the Purchase
Agreement) shall conclusively establish that the Premises, the Building and the Project were at such time in good, sanitary and
satisfactory condition and repair.

 

4.2.       NOTWITHSTANDING
ANYTHING TO THE CONTRARY HEREIN, IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT LANDLORD IS LEASING THE PREMISES "AS IS"
AND "WHERE IS," AND WITH ALL FAULTS, AND THAT LANDLORD IS MAKING NO REPRESENTATIONS AND WARRANTIES WHETHER EXPRESS OR
IMPLIED, BY OPERATION OF LAW OR OTHERWISE, WITH RESPECT TO THE QUALITY OR PHYSICAL CONDITION OF THE PREMISES, THE INCOME OR EXPENSES
FROM OR OF THE PREMISES, OR THE COMPLIANCE OF THE PREMISES WITH APPLICABLE BUILDING OR FIRE CODES, ENVIRONMENTAL LAWS OR OTHER
LAWS, RULES, ORDERS OR REGULATIONS. WITHOUT LIMITING THE FOREGOING, IT IS UNDERSTOOD AND AGREED THAT LANDLORD MAKES NO WARRANTY
WITH RESPECT TO THE HABITABILITY, SUITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. TENANT AGREES THAT IT ASSUMES
FULL RESPONSIBILITY FOR, AND THAT IT HAS PERFORMED EXAMINATIONS AND INVESTIGATIONS OF THE PREMISES, INCLUDING SPECIFICALLY, WITHOUT
LIMITATION, EXAMINATIONS AND INVESTIGATIONS FOR THE PRESENCE OF ASBESTOS, PCBS AND OTHER HAZARDOUS SUBSTANCES, MATERIALS AND WASTES
(AS THOSE TERMS MAY BE DEFINED HEREIN OR BY APPLICABLE FEDERAL OR STATE LAWS, RULES OR REGULATIONS) ON OR IN THE PREMISES. WITHOUT
LIMITING THE FOREGOING, TENANT IRREVOCABLY WAIVES ALL CLAIMS AGAINST LANDLORD WITH RESPECT TO ANY ENVIRONMENTAL CONDITION, INCLUDING
CONTRIBUTION AND INDEMNITY CLAIMS, WHETHER STATUTORY OR OTHERWISE. TENANT ASSUMES FULL RESPONSIBILITY FOR ALL COSTS AND EXPENSES
REQUIRED TO CAUSE THE PREMISES TO COMPLY WITH ALL APPLICABLE BUILDING AND FIRE CODES, MUNICIPAL ORDINANCES, ENVIRONMENTAL LAWS
AND OTHER LAWS, RULES, ORDERS, AND REGULATIONS. 

 

    	 	4	 

     

    

 

4.3.          Holding
Over.

 

4.3.1.          If,
with Landlord's prior written consent, Tenant holds possession of all or any part of the Premises after the Term, Tenant shall
become a tenant from month-to-month after the expiration or earlier termination of the Term, and in such case Tenant shall continue
to pay (a) Base Rent, as adjusted in accordance with Section 6, (b) Additional Rent, and (c) any amounts for which Tenant
would otherwise be liable under this Lease if the Lease were still in effect. Any such month-to-month tenancy shall be subject
to every other term, covenant and agreement contained herein.

 

4.3.2.          If
Tenant retains possession of any portion of the Premises after the Term without Landlord's prior written consent, then (a) Tenant
shall be a tenant at sufferance subject to the terms and conditions of this Lease, except that the monthly rent shall be equal
to one hundred fifty percent (150%) of the monthly Rent in effect during the last thirty (30) days of the Term, and (b) Tenant
shall be liable to Landlord for any and all damages suffered by Landlord as a result of such holdover, including any lost rent
or consequential, special and indirect damages (in each case, regardless of whether such damages are foreseeable).

 

4.3.3.          Acceptance
by Landlord of Rent after the expiration or earlier termination of the Term shall not result in an extension, renewal or reinstatement
of this Lease. The foregoing provisions of this Section 4 are in addition to and do not affect Landlord's right of reentry
or any other rights of Landlord hereunder or as otherwise provided by Applicable Laws. The provisions of this Section 4
shall survive the expiration or earlier termination of this Lease.

 

		5.	Tenant Improvements.

 

5.1.          Tenant
shall cause appropriate improvements consistent with the Permitted Use (the "Tenant Improvements") to be constructed
in the Premises pursuant to the Work Letter attached hereto as Exhibit E (the "Work Letter") at a cost
to Landlord not to exceed Three Million Dollars ($3,000,000.00) (the "TI Allowance"). The TI Allowance may be
applied to the costs of (a) construction, (b) third-party costs incurred in project review by Landlord, which costs shall not exceed
Ten Thousand Dollars ($10,000), (c) commissioning of mechanical, electrical and plumbing systems by a licensed, qualified commissioning
agent hired by Tenant, and review of such party's commissioning report by a licensed, qualified commissioning agent hired by Landlord,
(d) space planning, architect, engineering and other related services performed by third parties unaffiliated with Tenant, (e)
building permits and other taxes, fees, charges and levies by governmental authorities for permits or for inspections of the Tenant
Improvements, and (f) costs and expenses for labor, material, equipment and fixtures. In no event shall the TI Allowance be used
for (m) the cost of work that is not authorized by the Approved Plans (as defined in the Work Letter) or otherwise approved in
writing by Landlord, (n) payments to Tenant or any affiliates of Tenant, (o) the purchase of any furniture, personal property or
other non-building system equipment, (p) costs resulting from any default by Tenant of its obligations under this Lease or (q)
costs that are recoverable by Tenant from a third party (e.g., insurers, warrantors, or tortfeasors).

 

5.2.          Tenant
shall have until December 15, 2030 to request disbursement for the final installment of the TI Allowance, and may request no more
than six (6) disbursements of the TI Allowance, with each disbursement (other than the final disbursement) being no less than Five
Hundred Thousand Dollars ($500,000.00). Landlord's obligation to disburse any of the TI Allowance shall be conditional upon Tenant's
satisfaction of the conditions precedent to funding of the TI Allowance set forth in Section 6.3 of the Work Letter. In
addition, Landlord's obligation to disburse any of the TI Allowance in excess of Two Million Five Hundred Thousand Dollars ($2,500,000.00)
shall be conditioned upon the satisfaction of the following: (a) Tenant's delivery to Landlord of a certificate of occupancy for
the Premises suitable for the Permitted Use, as applicable; (b) Tenant's delivery to Landlord of a Certificate of Substantial Completion
in the form of the American Institute of Architects document G704, executed by the project architect and the general contractor
or such other form or certification as may be reasonably acceptable to Landlord; (c) Tenant's satisfaction of the conditions precedent
to funding of the TI Allowance set forth in Section 6.3 of the Work Letter; and (d) there shall be no uncured event of default
by Tenant under this Lease.

 

    	 	5	 

     

    

 

		6.	Rent.

 

6.1.          Rent.
Base Rent and Additional Rent (as defined below) shall together be denominated "Rent." Rent shall be paid by ACH,
wire transfer or check (but in no event may Rent be payable in cash) to Landlord, without abatement, deduction or offset, in lawful
money of the United States of America to the address set forth in Section 2 or to such other person or at such other place
as Landlord may from time designate in writing. In the event the Term commences on a day other than the first day of a calendar
month or ends on a day other than the last day of a calendar month, then the Rent for such fraction of a month shall be prorated
for such period on the basis of the number of days in the month and shall be paid at the then-current rate for such fractional
month.

 

6.2.          Base
Rent. Tenant shall pay to Landlord as Base Rent for the Premises, commencing on the Commencement Date, the sums set forth in
Section 2, subject to the rental adjustments provided in Section 6.5. Base Rent shall be paid in equal monthly installments,
subject to the rental adjustments provided in Section 6.5, each in advance on, or before, the first day of each and every
calendar month during the Term; provided that, so long as Tenant is not in default of its obligations under this Lease, (a) Fifty-Eight
Thousand Three Hundred Thirty-Three and 33/100 Dollars ($58,333.33) of the monthly Base Rent shall be abated for each month, or
portion thereof, until March 31, 2018, and (b) Thirty-Five Thousand Dollars ($35,000.00) of the monthly Base Rent shall be abated
for each month, or portion thereof, until the earlier to occur of (i) the date that Landlord disburses any portion of the TI Allowance
to Tenant in accordance with Section 5 and (ii) March 14, 2018.

 

6.3.          Additional
Rent. In addition to Base Rent, Tenant shall pay to Landlord as additional rent ("Additional Rent") at times
hereinafter specified in this Lease (a) amounts related to Operating Expenses and Taxes (each as defined below), unless paid directly
by Tenant to third parties to whom such amounts are owed, (b) the Property Management Fee (as defined below) and (c) any other
amounts that Tenant assumes or agrees to pay under the provisions of this Lease that are owed to Landlord (whether or not such
amounts are referred to herein as "Additional Rent"), including any and all other sums that may become due by reason
of any default of Tenant or failure on Tenant's part to comply with the agreements, terms, covenants and conditions of this Lease
to be performed by Tenant.

 

6.3.1.          Operating
Expenses. Tenant will pay directly all Operating Expenses of the Premises in a timely manner and prior to delinquency, unless
otherwise specified herein that Landlord shall pay directly such Operating Expenses and receive reimbursement from Tenant. In the
event that Tenant fails to pay any Operating Expense within ten (10) days after written notice by Landlord to Tenant, and without
being under any obligation to do so and without hereby waiving any default by Tenant, Landlord may pay any delinquent Operating
Expenses. Any Operating Expense paid by Landlord and any expenses reasonably incurred by Landlord in connection with the payment
of the delinquent Operating Expense may be billed immediately to Tenant, or at Landlord's option and upon written notice to Tenant,
may be deducted from the Security Deposit. "Operating Expenses" means all costs and expenses incurred by Landlord
with respect to the ownership, maintenance and operation of the Premises including, but not limited to: insurance, maintenance,
repair and replacement of the foundation, roof, walls, heating, ventilation, air conditioning, plumbing, electrical, mechanical,
utility and safety systems, paving and parking areas, roads and driveways; maintenance of exterior areas such as gardening and
landscaping, snow removal and signage; maintenance and repair of roof membrane, flashings, gutters, downspouts, roof drains, skylights
and waterproofing; painting; lighting; cleaning; refuse removal; security; utilities for, or the maintenance of, outside areas;
building personnel costs; personal property taxes; rentals or lease payments paid by Landlord for rented or leased personal property
used in the operation or maintenance of the Premises; and fees for required licenses and permits.  In addition and notwithstanding
anything in this Lease to the contrary, Tenant will also assume Seller's obligation, at Tenant's sole cost and expense, and pay
directly any costs incurred relating to inspections of the Property's on-site wastewater treatment facility, to the extent such
inspections and other related actions are required by Applicable Laws in connection with the Closing (as defined in the Purchase
Agreement).

 

6.3.2.          Taxes.
Tenant will promptly pay to Landlord upon Landlord's written request the amount of all Taxes levied and assessed for any such year
upon the Premises. "Taxes" means any and all real estate taxes, fees, assessments and other charges of any kind
or nature, whether general, special, ordinary or extraordinary, that Landlord shall pay or accrue (without regard to any different
fiscal year used by such governmental authority) that are levied in respect of the Premises, or in respect of any improvement,
fixture, equipment or other property of Landlord, real or personal, located at the Premises, or used in connection with the operation
of the Premises, and all fees, expenses, and costs incurred by Landlord in investigating, protesting, contesting, or in any way
seeking to reduce or avoid increases in any assessments, levies, or the tax rate pertaining to the Taxes. Taxes shall not include
Landlord's corporate franchise taxes, estate taxes, inheritance taxes or federal or state income taxes.

 

    	 	6	 

     

    

 

6.3.3.          Estimated
Costs. If and to the extent applicable, within sixty (60) days after the Commencement Date, and within sixty (60) days
after the beginning of each calendar year, Landlord shall give Tenant a written estimate, for such calendar year, of the cost of
Taxes and Operating Expenses payable by Landlord. Tenant shall pay such estimated amount to Landlord in equal monthly installments,
in advance. Within ninety (90) days after the end of each calendar year, Landlord shall furnish to Tenant a statement showing
in reasonable detail the cost of Taxes and Operating Expenses paid or payable by Landlord (the "Annual Statement"),
and Tenant shall pay to Landlord the cost incurred by Landlord in excess of the payments made by Tenant within ten (10) days
of receipt of such Annual Statement. In the event that the payments made by Tenant to Landlord for the estimated Taxes and Operating
Expenses exceed the aggregate amount set forth in the Annual Statement, such excess amount shall be credited by Landlord to the
Rent or other charges next due and owing, provided that, if the Term has expired, Landlord shall accompany said statement with
the amount due Tenant. 

 

6.3.4.          Tenant’s
Right to Audit.  For a period of ninety (90) days following Tenant’s receipt of Landlord’s Annual Statement,
Tenant shall have the right to have an independent public accounting firm, hired by Tenant on an hourly basis and not on a contingent-fee
basis, audit, inspect and copy the books and records of Landlord with respect to any Taxes and Operating Expenses passed through
to Tenant as reflected in such Annual Statement, upon ten (10) business days advanced written notice by Tenant to Landlord. Landlord
shall reasonably cooperate with Tenant by providing Tenant reasonable access to its books and records during normal business hours,
at Landlord's offices, for this purpose. If the results of the audit show any overcharge to Tenant, Landlord shall credit or refund
to Tenant any overage of such items as discovered by the audit within thirty (30) days of completion of such audit. In addition,
if the results of the audit show an overcharge to Tenant of more than ten percent (10%) of the actual amount owed by Tenant, then,
as Tenant’s sole and exclusive remedy for such overcharge to Tenant, Landlord shall pay the reasonable costs of such audit
within thirty (30) days of completion of such audit and receipt of reasonable documentation from Tenant evidencing the cost of
such audit. In the event such audit discloses an undercharge of such items as billed to Tenant, Tenant shall pay Landlord the amount
of such undercharge within thirty (30) days of completion of such audit and Tenant shall bear the cost of such audit. Tenant shall
be solely responsible for the cost of the any such audit in all other events.

 

6.3.5.          Property
Management Fee. Tenant shall pay to Landlord on, or before, the first day of each calendar month of the Term, as Additional
Rent, the Property Management Fee. The "Property Management Fee" shall equal one and one-half percent (1.5%) of
the then-current Base Rent due from Tenant. Tenant shall pay the Property Management Fee with respect to the entire Term, including
any extensions thereof or any holdover periods, regardless of whether Tenant is obligated to pay Base Rent or any other Rent with
respect to any such period or portion thereof.

 

6.3.6.          Absolute
Net Lease. This Lease shall be deemed and construed to be an "absolute net lease" and, except as herein expressly
provided, the Landlord shall receive all payments required to be made by Tenant, free from all charges, assessments, impositions,
expenses, deductions of any and every kind or nature whatsoever. Tenant shall, at Tenant's sole cost and expense, maintain the
landscaping and parking lot, and make all additional repairs and alterations as required to maintain the Premises consistent with
industry best practices.

 

6.4.          Security
Deposit. On or before the Execution Date of this Lease, Tenant shall deposit with Landlord the sum in cash set forth in Section
2.2 (the "Security Deposit"), which sum shall be held by Landlord as security for the faithful performance
by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. Landlord
shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord.
If Tenant defaults with respect to any provision of this Lease, then without notice to Tenant, Landlord may (but shall not be required
to) apply all or any part of the Security Deposit for the payment of any Rent or any other sum in default. If any portion of the
Security Deposit is so used or applied, then Tenant shall, upon demand therefor, restore the Security Deposit to its original amount.
If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the unapplied portion of
the Security Deposit shall be returned to Tenant, or, at Landlord's option, to the last assignee of Tenant's interest hereunder,
within sixty (60) days following the expiration of the Term. Tenant shall not be entitled to any interest on the Security Deposit.
Tenant hereby irrevocably waives and relinquishes any and all rights, benefits, or protections, if any, Tenant now has, or in the
future may have under any provision of law which (i) establishes the time frame by which a landlord must refund a security
deposit under a lease, or (ii) provides that a landlord may claim from a security deposit only those sums reasonably necessary
to remedy defaults in the payment of rent, to repair damage caused by a tenant, or to clean the subject premises. Tenant acknowledges
and agrees that (A) any statutory time frames for the return of a security deposit are superseded by the express period identified
in this Section 6.4, and (B) rather than be so limited, Landlord may claim from the Security Deposit (i) any
and all sums expressly identified in this Section 6.4, and (ii) any additional sums reasonably necessary to compensate
Landlord for any and all losses or damages caused by Tenant's default of this Lease, including, but not limited to, all damages
or rent due upon termination of this Lease. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the
Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior
to the filing of such proceedings.

 

    	 	7	 

     

    

 

6.5.          Base
Rent Adjustments. Base Rent shall be subject to an annual upward adjustment of three and one-quarter percent (3.25%) of the
then-current Base Rent. The first such adjustment shall become effective commencing on the first annual anniversary of the Commencement
Date, and subsequent adjustments shall become effective on every successive annual anniversary for so long as this Lease continues
in effect.

 

6.6.          No
Discharge of Rent Obligations. Tenant's obligation to pay Rent shall not be discharged or otherwise affected by (a) any Applicable
Laws now or hereafter applicable to the Premises, (b) any other restriction on Tenant's use, (c) except as expressly provided herein,
any casualty or taking or (d) any other occurrence; and Tenant waives all rights now or hereafter existing to terminate or cancel
this Lease or quit or surrender the Premises or any part thereof, or to assert any defense in the nature of constructive eviction
to any action seeking to recover rent. Tenant's obligation to pay Rent with respect to any period or obligations arising, existing
or pertaining to the period prior to the date of the expiration or earlier termination of the Term or this Lease shall survive
any such expiration or earlier termination; provided, however, that nothing in this sentence shall in any way affect Tenant's obligations
with respect to any other period. Except as expressly provided in this Lease, Tenant, to the extent now or hereafter permitted
by Applicable Laws, waives all rights now or hereafter conferred by statute or otherwise to quit, terminate or surrender this Lease
or to any diminution, abatement or reduction of Rent payable hereunder.

 

		7.	Use.

 

7.1.          Use.
Tenant shall use the Premises solely for the Permitted Use, and shall not use the Premises, or permit or suffer the Premises to
be used, for any other purpose without Landlord's prior written consent, which consent Landlord may withhold in its sole and absolute
discretion. Tenant shall comply, and cause Tenant Parties to comply, with all Applicable Laws, zoning ordinances and certificates
of occupancy issued for the Premises or any portion thereof. Without limiting Tenant’s right to operate the Premises for
the Permitted Use, Tenant shall not commit, or allow Tenant Parties to commit, any waste of the Premises. Without limiting Tenant’s
right to operate the Premises for the Permitted Use, Tenant shall not do, or permit any Tenant Parties to do, anything on or about
the Premises that in any way increases the rate, or invalidates or prevents the procuring, of any insurance protecting against
loss or damage to any portion of the Premises or its contents, or against liability for damage to property or injury to persons
in or about any portion of the Premises. For purposes hereof, "Tenant Parties" means Tenant's agents, contractors,
subcontractors, employees, customers, licensees, invitees, assignees and subtenants; and the term "Applicable Laws"
shall mean collectively, Title 9; Chapter 17 Department of Arizona Department of Health Services Medical Marijuana Program (the
“AZDHS Rules”) and A.R.S. § 36-2801 et seq., as amended from time to time (the “Act”)
(the AZDHS Rules and the Act collectively referred to herein as the “AMMA”), all federal (to the extent not
in direct conflict with the AMMA and any applicable state, municipal or local cannabis licensing and program laws, rules and regulations),
state, municipal and local laws, codes, ordinances, rules and regulations of governmental authorities, committees, associations,
or other regulatory committees, agencies or governing bodies having jurisdiction over the Premises or any portion thereof, Landlord
or Tenant, including both statutory and common law, hazardous waste rules and regulations, and state cannabis licensing and program
laws, rules and regulations. Tenant may only place equipment within the Premises with floor loading consistent with the Building's
structural design unless Tenant obtains Landlord's prior written approval. Tenant may place such equipment only in a location designed
to carry the weight of such equipment.

 

7.2.          Legal
Compliance. Notwithstanding any other provision herein to the contrary, Tenant shall be responsible for all improvements or
alterations required to be made and all liabilities, costs and expenses arising out of or in connection with the compliance of
the Premises with Applicable Laws, including, without limitation, the Americans with Disabilities Act, 42 U.S.C. § 12101,
et seq., and any state and local accessibility laws, codes, ordinances and rules (collectively, and together with regulations promulgated
pursuant thereto, the "ADA"), and Tenant shall indemnify, save, defend (at Landlord's option and with counsel
reasonably acceptable to Landlord) and hold the Landlord Indemnitees harmless from and against any Claims arising out of any such
failure of the Premises to comply with Applicable Laws, including, without limitation, the ADA.

 

    	 	8	 

     

    

 

7.3.          Indemnification.
Tenant shall indemnify, save, defend (at Landlord's option and with counsel reasonably acceptable to Landlord) and hold Landlord
and its affiliates, lenders, employees, agents and contractors (collectively, the "Landlord Indemnitees") harmless
from and against any and all demands, claims, liabilities, losses, costs, expenses, criminal or civil actions, forfeiture seizures,
causes of action, damages, suits or judgments, and all reasonable expenses (including reasonable attorneys' fees, charges and disbursements,
regardless of whether the applicable demand, claim, action, cause of action or suit is voluntarily withdrawn or dismissed) incurred
in investigating or resisting the same (collectively, "Claims") of any kind or nature that arise before, during
or after the Term as a result of Tenant's breach of this Section 7.

 

		8.	Hazardous Materials.

 

8.1.          Tenant
shall not cause or permit any Hazardous Materials (as defined below) to be brought upon, kept or used in or about the Premises
in violation of Applicable Laws by Tenant or any Tenant Party. If (a) Tenant breaches such obligation, (b) the presence of Hazardous
Materials as a result of such a breach results in contamination of the Premises, any portion thereof, or any adjacent property,
(c) contamination of the Premises otherwise occurs during the Term or any extension or renewal hereof or holding over hereunder
or (d) contamination of the Premises occurs as a result of Hazardous Materials that are placed on or under or are released into
the Premises by a Tenant Party, then Tenant shall indemnify, save, defend (at Landlord's option and with counsel reasonably acceptable
to Landlord) and hold the Landlord Indemnitees harmless from and against any and all Claims of any kind or nature, including (w)
diminution in value of the Premises or any portion thereof, (x) damages for the loss or restriction on use of rentable or usable
space or of any amenity of the Premises, (y) damages arising from any adverse impact on marketing of space in the Premises or any
portion thereof and (z) sums paid in settlement of Claims that arise before, during or after the Term as a result of such breach
or contamination. This indemnification by Tenant includes costs incurred in connection with any investigation of site conditions
or any clean-up, remedial, removal or restoration work required by any governmental authority because of Hazardous Materials present
in the air, soil or groundwater above, on, under or about the Premises. Without limiting the foregoing, if the presence of any
Hazardous Materials in, on, under or about the Premises, any portion thereof or any adjacent property caused or permitted by any
Tenant Party results in any contamination of the Premises, any portion thereof or any adjacent property, then Tenant shall promptly
take all actions at its sole cost and expense as are necessary to return the Premises, any portion thereof or any adjacent property
to its respective condition existing prior to the time of such contamination; provided that Landlord's written approval of such
action shall first be obtained, which approval Landlord shall not unreasonably withhold; and provided, further, that it shall be
reasonable for Landlord to withhold its consent if such actions could have a material adverse long-term or short-term effect on
the Premises, any portion thereof or any adjacent property. Tenant's obligations under this Section shall not be limited by any
limitation on the amount or type of damages, compensation or benefits payable by or for Tenant under workers' compensation acts,
disability benefit acts, employee benefit acts or similar legislation.

 

8.2.          Landlord
acknowledges that it is not the intent of this Section 8 to prohibit Tenant from operating its business for the Permitted
Use. Tenant may operate its business according to the custom of Tenant's industry so long as the use or presence of Hazardous Materials
is strictly and properly monitored in accordance with Applicable Laws. As a material inducement to Landlord to allow Tenant to
use Hazardous Materials in connection with its business, Tenant agrees to deliver to Landlord (a) a list identifying each type
of Hazardous Material to be present at the Premises that is subject to regulation under any environmental Applicable Laws in the
form of a Tier II form pursuant to Section 312 of the Emergency Planning and Community Right-to-Know Act of 1986 (or any successor
statute) or any other form reasonably requested by Landlord, (b) a list of any and all approvals or permits from governmental authorities
required in connection with the presence of such Hazardous Material at the Premises and (c) correct and complete copies of notices
of violations of Applicable Laws related to Hazardous Materials (collectively, "Hazardous Materials Documents").
Tenant shall deliver to Landlord updated Hazardous Materials Documents, within fourteen (14) days after receipt of a written request
therefor from Landlord, not more often than once per year, unless (m) there are any changes to the Hazardous Materials Documents
or (n) Tenant initiates any Tenant Improvements or Alterations or changes its business, in either case in a way that involves any
material increase in the types or amounts of Hazardous Materials. In the event that a review of the Hazardous Materials Documents
indicates non-compliance with this Lease or Applicable Laws, Tenant shall, at its expense, diligently take steps to bring its storage
and use of Hazardous Materials into compliance. Notwithstanding anything in this Lease to the contrary or Landlord's review into
Tenant's Hazardous Materials Documents or use or disposal of hazardous materials, however, Landlord shall not have and expressly
disclaims any liability related to Tenant's or other tenants' use or disposal of Hazardous Materials, it being acknowledged by
Tenant that Tenant is best suited to evaluate the safety and efficacy of its Hazardous Materials usage and procedures.

 

    	 	9	 

     

    

 

8.3.          Tenant
represents and warrants to Landlord that Tenant is not, nor has it been, in connection with the use, disposal or storage of Hazardous
Materials, (a) subject to a material enforcement order issued by any governmental authority or (b) required to take any remedial
action.

 

8.4.          At
any time, and from time to time, prior to the expiration of the Term, Landlord shall have the right to conduct appropriate tests
of the Premises or any portion thereof to demonstrate that Hazardous Materials are present or that contamination has occurred due
to the acts or omissions of a Tenant Party, the cost of which shall be an Operating Expense.

 

8.5.          If
underground or other storage tanks storing Hazardous Materials installed or utilized by Tenant are located on the Premises, or
are hereafter placed on the Premises by Tenant (or by any other party, if such storage tanks are utilized by Tenant), then Tenant
shall monitor the storage tanks, maintain appropriate records, implement reporting procedures, properly close any underground storage
tanks, and take or cause to be taken all other steps necessary or required under the Applicable Laws.

 

8.6.          Tenant
shall promptly report to Landlord any actual or suspected presence of mold or water intrusion at the Premises.

 

8.7.          Tenant's
obligations under this Section 8 shall survive the expiration or earlier termination of the Lease. During any period of
time needed by Tenant or Landlord after the termination of this Lease to complete the removal from the Premises of any such Hazardous
Materials, Tenant shall be deemed a holdover tenant and subject to the provisions of Section 4.

 

8.8.          As
used herein, the term "Hazardous Material" means any toxic, explosive, corrosive, flammable, infectious, radioactive,
carcinogenic, mutagenic or otherwise hazardous substance, material or waste that is or becomes regulated by Applicable Laws or
any governmental authority.

 

		9.	Alterations.

 

9.1.          Tenant
shall not make any alterations, additions or improvements in or to the Premises or engage in any construction, demolition, reconstruction,
renovation or other work (whether major or minor) of any kind in, at or serving the Premises ("Alterations"),
without obtaining Landlord's prior written consent (not to be unreasonably withheld, conditioned or delayed), except Tenant may
make non-structural Alterations to the interior of the Premises (excluding the roof) without such consent but upon at least ten
(10) days' prior notice to Landlord, provided that the cost thereof does not exceed One Hundred Fifty Thousand Dollars ($150,000.00)
per occurrence or an aggregate amount of Five Hundred Thousand Dollars ($500,000.00) annually. Notwithstanding the foregoing, Tenant
will not do anything that could have a material adverse effect on the Building or life safety systems, without obtaining Landlord's
prior written consent. Any such improvements, excepting movable furniture, trade fixtures and equipment, shall become part of the
realty and belong to Landlord. All alterations and improvements shall be properly permitted and installed at Tenant's sole cost,
by a licensed contractor, in a good and workmanlike manner, and in conformity with all Applicable Laws. Any alterations that Tenant
shall desire to make and which require the consent of Landlord shall be presented to Landlord in written form with detailed plans.
Tenant shall: (i) acquire all applicable governmental permits; (ii) furnish Landlord with copies of both the permits and the
plans and specifications at least thirty (30) days before the commencement of the work, and (iii) comply with all conditions
of said permits in a prompt and expeditious manner. Any alterations shall be performed in a workmanlike manner with good and sufficient
materials. Upon completion of any Alterations, Tenant shall promptly upon completion furnish Landlord with a reproducible copy
of as-built drawings and specifications for any Alterations. 

 

    	 	10	 

     

    

 

9.2.          At
least twenty (20) days prior to commencing any work relating to any Alterations requiring the approval of Landlord that have been
so approved, Tenant shall notify Landlord in writing of the expected date of commencement. Tenant shall pay, when due, all claims
for labor or materials furnished to or for Tenant for use in improving the Premises. Tenant shall not permit any mechanics' or
materialmen's liens to be levied against the Premises arising out of work or services claimed to have been performed, materials
claimed to have been furnished, or obligations claimed to have been performed on the Premises by or at the request of Tenant. Tenant
shall indemnify, save, defend (at Landlord's option and with counsel reasonably acceptable to Landlord) and hold Landlord Indemnitees
from and against any and all Claims of any kind or nature that arise before, during or after the Term on
account of claims of lien of laborers or materialmen or others for work or services performed or materials or supplies furnished
for Tenant or its contractors, agents or employees, including any administrative, court or other legal proceedings related to such
liens. If Tenant fails to discharge, bond against or undertake to defend against such
liability, upon receipt of written notice from Landlord of such failure, Tenant shall have fifteen (15) days (the "Defense
Cure Period") to cure such failure by prosecuting such a defense. If Tenant fails to do so within the Defense Cure Period,
then Landlord may settle the same and Tenant's liability to Landlord shall be conclusively established by such settlement provided
that such settlement is entered into on commercially reasonable terms and conditions, the amount of such liability to include both
the settlement consideration and the costs and expenses (including attorneys' fees) incurred by Landlord in effecting such settlement.
In the event any contractor, agent or employee notifies Tenant of its intent to file a mechanics' or materialmen's lien against
the Premises, Tenant shall immediately notify Landlord of such intention to file a lien or a lawsuit with respect to such lien.
In the event that Tenant leases or finances the acquisition of office equipment, furnishings or other personal property of a removable
nature utilized by Tenant in the operation of Tenant's business, Tenant warrants that any Uniform Commercial Code financing statement
shall, upon its face or by exhibit thereto, indicate that such financing statement is applicable only to removable personal property
of Tenant located within the Premises.

 

9.3.          Tenant
shall repair any damage to the Premises caused by Tenant's removal of any property from the Premises. During any such restoration
period, Tenant shall pay Rent to Landlord as provided herein as if such space were otherwise occupied by Tenant. The provisions
of this Section shall survive the expiration or earlier termination of this Lease.

 

9.4.          The
Premises plus any Alterations, Tenant Improvements, attached equipment, decorations, fixtures and trade fixtures; movable casework
and related appliances; and other additions and improvements attached to or built into the Premises made by either of the parties
(including all floor and wall coverings; paneling; sinks and related plumbing fixtures; attached benches; production equipment;
walk-in refrigerators; ductwork; conduits; electrical panels and circuits; attached machinery and equipment; and built-in furniture
and cabinets, in each case, together with all additions and accessories thereto), shall (unless, prior to such construction or
installation, Landlord elects otherwise in writing) at all times remain the property of Landlord, shall remain in the Premises
and shall (unless, prior to construction or installation thereof, Landlord elects otherwise in writing) be surrendered to Landlord
upon the expiration or earlier termination of this Lease. For the avoidance of doubt, the items listed on Exhibit B attached
hereto (which Exhibit B may be updated by Tenant from and after the Commencement Date, subject to Landlord's written consent)
constitute Tenant's property and shall be removed by Tenant upon the expiration or earlier termination of the Lease.

 

9.5.          If
Tenant shall fail to remove any of its property from the Premises prior to the expiration of the Term, then Landlord may, at its
option, remove the same in any manner that Landlord shall choose and store such effects without liability to Tenant for loss thereof
or damage thereto, and Tenant shall pay Landlord, upon demand, any costs and expenses incurred due to such removal and storage
or Landlord may, at its sole option and without notice to Tenant, sell such property or any portion thereof at private sale and
without legal process for such price as Landlord may obtain and apply the proceeds of such sale against any (a) amounts due by
Tenant to Landlord under this Lease and (b) any expenses incident to the removal, storage and sale of such personal property.

 

9.6.          Tenant
shall pay to Landlord an amount equal to one and one-half percent (1.5%) of the cost to Tenant of all Alterations to cover Landlord's
overhead and expenses for plan review, engineering review, coordination, scheduling and supervision thereof. For purposes of payment
of such sum, Tenant shall submit to Landlord copies of all bills, invoices and statements covering the costs of such charges, accompanied
by payment to Landlord of the fee set forth in this Section. In addition, Tenant shall reimburse Landlord for all third-party
costs actually incurred by Landlord in connection with any Alterations.

 

9.7.          Tenant
shall require its contractors and subcontractors performing work on the Premises to name Landlord and its affiliates and any lender
as additional insureds on their respective insurance policies.

 

10.         Odors
and Fumes. Without otherwise limiting Tenant’s rights to conduct the Premises for the Permitted Use, Tenant
shall not cause or permit (or conduct any activities that would cause) any release of any odors or fumes of any kind from the Premises.
Tenant shall, at Tenant's sole cost and expense, provide odor eliminators and other devices (such as filters, air cleaners, scrubbers
and whatever other equipment may in Landlord's commercially reasonable judgment be necessary or appropriate from time to time)
to abate any odors, fumes or other substances in Tenant's exhaust stream that, in Landlord's reasonable judgment, emanate from
Tenant's Premises. Tenant's responsibility to abate odors, fumes and exhaust shall continue throughout the Term. If Tenant fails
to install satisfactory odor control equipment within ten (10) business days after Landlord's written demand made at any time,
then Landlord may, without limiting Landlord's other rights and remedies, require Tenant to cease and suspend any operations in
the Premises that, in Landlord's reasonable determination, cause odors, fumes or exhaust. 

 

    	 	11	 

     

    

 

		11.	Repairs and Maintenance.

 

11.1.          Care
of Premises. This Lease shall be deemed and construed to be an "absolute net lease." Tenant shall, at its sole cost
and expense, keep the Premises in a working, neat, clean, sanitary, safe condition and repair, and shall keep the Premises free
from trash. Tenant shall make all repairs or replacements thereon or thereto, whether ordinary or extraordinary. Without limiting
the foregoing, Tenant's obligations hereunder shall include the maintenance, repair and replacement of the Building foundation,
roof (including roof membrane), walls and all other structural components of the Building; all heating, ventilation, air conditioning,
plumbing, electrical, mechanical, utility and safety systems serving the Building or Premises; the parking areas, roads and driveways
located on the Premises; maintenance of exterior areas such as gardening and landscaping; snow removal and signage; maintenance
and repair of flashings, gutters, downspouts, roof drains, skylights and waterproofing; and painting. Landlord shall not be required
to furnish any services or facilities or to make any repairs, replacements or alterations of any kind in or on the Premises. Tenant
shall receive all invoices and bills relative to the Premises and, except as otherwise provided herein, shall pay for all expenses
directly to the person or company submitting a bill without first having to forward payment for the expenses to Landlord. Tenant
hereby expressly waives the right to make repairs at the expense of Landlord as provided for in any Applicable Laws in effect at
the time of execution of this Lease, or in any other Applicable Laws that may hereafter be enacted, and waives its rights under
Applicable Laws relating to a landlord's duty to maintain its premises in a tenantable condition.

 

11.2.          Service
Contracts and Invoices. Tenant shall, promptly upon Landlord's written request therefor, provide Landlord with copies of all
service contracts relating to the Tenant's maintenance of the Premises and invoices received from Tenant from such service providers.

 

11.3.          Action
by Landlord if Tenant Fails to Maintain. If Tenant refuses or neglects to repair
or maintain the Premises as required hereunder to the reasonable satisfaction of Landlord, Landlord, at any time following ten
(10) business days from the date on which Landlord shall make written demand on Tenant to affect such repair or maintenance, may,
but shall not have the obligation to, make such repair and/or maintenance (without liability to Tenant for any loss or damage which
may occur to Tenant's merchandise, fixtures or other personal property, or to Tenant's business by reason thereof) and upon completion
thereof, Tenant shall pay to Landlord as Landlord Additional Rent Landlord's costs for making such repairs, plus interest at the
Default Rate from the date of expenditure by Landlord upon demand therefor. Moreover, Tenant's failure to pay any of the charges
in connection with the performance of its maintenance and repair obligations under this Lease will constitute a material default
under the Lease.

 

11.4.          No
Rent Abatement. There shall be no abatement of Rent and no liability of Landlord by reason of any injury to or interference
with Tenant's business arising from the making of any repairs, alterations or improvements in or to any portion of the Premises,
or in or to improvements, fixtures, equipment and personal property therein.

 

11.5.          Right
of Entry. Landlord and Landlord's agents shall have the right to enter upon the Premises or any portion thereof for the purposes
of performing any repairs or maintenance Landlord is permitted to make pursuant to this Lease, and of ascertaining the condition
of the Premises or whether Tenant is observing and performing Tenant's obligations hereunder, all without unreasonable interference
from Tenant or Tenant Parties. Except for emergency maintenance or repairs, the right of entry contained in this paragraph shall
be exercisable at reasonable times, at reasonable hours and on reasonable notice, and subject to Tenant's authorized personnel
accompanying Landlord's agents in sensitive areas of the Premises.

 

		12.	Intentionally Omitted.

 

    	 	12	 

     

    

 

13.            Rules
and Regulations and CC&Rs and Parking Facilities. Tenant shall faithfully observe and comply with and shall ensure that
its contractors, subcontractors, employees, subtenants and invitees faithfully observe and comply with such reasonable and nondiscriminatory
rules and regulations as are hereafter promulgated by Landlord in its sole and absolute discretion. This Lease is subject to any
recorded covenants, conditions or restrictions on or affecting the Property or Premises, as the same may be amended, amended and
restated, supplemented or otherwise modified from time to time (collectively, the "CC&Rs"). Tenant shall,
at its sole cost and expense, comply with the CC&Rs.

 

14.            Utilities
and Services. Tenant shall make all arrangements for and pay for all water, sewer, gas,
heat, light, power, telephone service and any other service or utility Tenant requires at the Premises. Landlord shall not be liable
for any failure or interruption of any utility service being furnished to the Premises, and no such failure or interruption shall
entitle Tenant to any abatement or right to terminate this Lease. In the event that any utilities are furnished by Landlord, Tenant
shall pay to Landlord the cost thereof as an Operating Expense. 

 

15.            Estoppel
Certificate. Tenant shall, within ten (10) days after receipt of written notice from Landlord, execute, acknowledge and deliver
a statement in writing substantially in the form attached to this Lease as Exhibit C, or on any other form reasonably requested
by a current or proposed lender or encumbrancer or proposed purchaser, (a) certifying that this Lease is unmodified and in full
force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified is in
full force and effect) and the dates to which rental and other charges are paid in advance, if any, (b) acknowledging that there
are not, to Tenant's knowledge, any uncured defaults on the part of Landlord hereunder, or specifying such defaults if any are
claimed, and (c) setting forth such further information with respect to this Lease or the Premises as may be requested thereon.
Each Guarantor shall, within ten (10) days after receipt of written notice from Landlord, execute, acknowledge and deliver a statement
in writing in the same form. Tenant's or any Guarantor's failure to deliver any such statement within such the prescribed time
shall, at Landlord's option, constitute a Default (as defined below) under this Lease, and, in any event, shall be binding upon
Tenant or such Guarantor (as applicable) that the Lease and such Guaranty are in full force and effect and without modification
except as may be represented by Landlord in any certificate prepared by Landlord and delivered to Tenant or such Guarantor (as
applicable) for execution.

 

		16.	Assignment or Subletting.

 

16.1.       None
of the following (each, a "Transfer"), either voluntarily or by operation of Applicable Laws, shall be directly
or indirectly performed without Landlord's prior written consent: (a) Tenant selling, hypothecating, assigning, pledging, encumbering
or otherwise transferring this Lease or subletting the Premises or (b) a controlling interest in Tenant being sold, assigned or
otherwise transferred (other than as a result of shares in Tenant being sold on a public stock exchange or a Permitted Transfer
as defined below). For purposes of the preceding sentence, "control" means (a) owning (directly or indirectly) more than
fifty percent (50%) of the stock or other equity interests of another person or (b) possessing, directly or indirectly, the power
to direct or cause the direction of the management and policies of such person.

 

16.2.       In
the event Tenant desires to effect a Transfer, then, at least thirty (30) but not more than ninety (90) days prior to the date
when Tenant desires the Transfer to be effective (the "Transfer Date"), Tenant shall provide written notice to
Landlord (the "Transfer Notice") containing information (including references) concerning the character of the
proposed transferee, assignee or sublessee; the proposed Transfer Date; the most recent unconsolidated financial statements of
Tenant and of the proposed transferee, assignee or sublessee ("Required Financials"); any ownership or commercial
relationship between Tenant and the proposed transferee, assignee or sublessee; and the consideration and all other material terms
and conditions of the proposed Transfer, all in such detail as Landlord shall reasonably require. In no event shall Landlord be
deemed to be unreasonable for declining to consent to a Transfer to a transferee, assignee or sublessee of poor reputation, lacking
financial qualifications or seeking a change in the Permitted Use, or jeopardizing directly or indirectly the status of Landlord
or any of Landlord's affiliates as a Real Estate Investment Trust under the Internal Revenue Code of 1986, as amended from time
to time.

 

16.3.       The
following are conditions precedent to a Transfer or to Landlord considering a request by Tenant to a Transfer:

 

16.3.1.          Tenant
shall remain fully liable under this Lease and each Guarantor shall continue to remain fully liable under such Guarantor's Guaranty,
including with respect to the Term after the Transfer Date. Tenant agrees that it shall not be (and shall not be deemed to be)
a guarantor or surety of this Lease, however, and waives its right to claim that it is a guarantor or surety or to raise in any
legal proceeding any guarantor or surety defenses permitted by this Lease or by Applicable Laws;

 

    	 	13	 

     

    

 

16.3.2.          Tenant
shall provide Landlord with evidence reasonably satisfactory to Landlord that the value of Landlord's interest under this Lease
shall not be diminished or reduced by the proposed Transfer. Such evidence shall include evidence respecting the relevant business
experience and financial responsibility and status of the proposed transferee, assignee or sublessee;

 

16.3.3.          Tenant
shall reimburse Landlord for Landlord's actual costs and expenses, including attorneys' fees, charges and disbursements incurred
in connection with the review, processing and documentation of such request (in no event, however, to exceed Five Thousand Dollars
($5,000));

 

16.3.4.          If
Tenant's transfer of rights or sharing of the Premises provides for the receipt by, on behalf of or on account of Tenant of any
consideration of any kind whatsoever (including a premium rental for a sublease or lump sum payment for an assignment, but excluding
Tenant's reasonable costs in marketing and subleasing the Premises) in excess of the rental and other charges due to Landlord under
this Lease, Tenant shall pay fifty percent (50%) of all of such excess to Landlord, after making deductions for any reasonable
marketing expenses, tenant improvement funds expended by Tenant, alterations, cash concessions, brokerage commissions, attorneys'
fees and free rent actually paid by Tenant. If such consideration consists of cash paid to Tenant, payment to Landlord shall be
made upon receipt by Tenant of such cash payment;

 

16.3.5.          The
proposed transferee, assignee or sublessee shall agree that, in the event Landlord gives such proposed transferee, assignee or
sublessee notice that Tenant is in default under this Lease, such proposed transferee, assignee or sublessee shall thereafter make
all payments otherwise due Tenant directly to Landlord, which payments shall be received by Landlord without any liability being
incurred by Landlord, except to credit such payment against those due by Tenant under this Lease, and any such proposed transferee,
assignee or sublessee shall agree to attorn to Landlord or its successors and assigns should this Lease be terminated for any reason;
provided, however, that in no event shall Landlord or its Lenders, successors or assigns be obligated to accept such attornment;

 

16.3.6.          Tenant
shall not then be in default hereunder in any respect;

 

16.3.7.          Such
proposed transferee, assignee or sublessee's use of the Premises shall be the same as the Permitted Use;

 

16.3.8.          Landlord
shall not be bound by any provision of any agreement pertaining to the Transfer, except for Landlord's written consent to the same;

 

16.3.9.          Tenant
shall pay all transfer and other taxes (including interest and penalties) assessed or payable for any Transfer;

 

16.3.10.         Landlord's
consent (or waiver of its rights) for any Transfer shall not waive Landlord's right to consent or refuse consent to any later Transfer;
and

 

16.3.11.         Tenant
shall deliver to Landlord a list of Hazardous Materials (as defined below), certified by the proposed transferee, assignee or sublessee
to be true and correct, that the proposed transferee, assignee or sublessee intends to use or store in the Premises. Additionally,
Tenant shall deliver to Landlord, on or before the date any proposed transferee, assignee or sublessee takes occupancy of the Premises,
all of the items relating to Hazardous Materials of such proposed transferee, assignee or sublessee as described in Section
8.

 

16.4.       Any
Transfer that is not in compliance with the provisions of this Section or with respect to which Tenant does not fulfill its obligations
pursuant to this Section shall be void and shall, at the option of Landlord, terminate this Lease.

 

16.5.       Notwithstanding
any Transfer, Tenant shall remain fully and primarily liable for the payment of all Rent and other sums due or to become due hereunder,
and for the full performance of all other terms, conditions and covenants to be kept and performed by Tenant. The acceptance of
Rent or any other sum due hereunder, or the acceptance of performance of any other term, covenant or condition thereof, from any
person or entity other than Tenant shall not be deemed a waiver of any of the provisions of this Lease or a consent to any Transfer.

 

    	 	14	 

     

    

 

16.6.        If
Tenant delivers to Landlord a Transfer Notice indicating a desire to transfer this Lease to a proposed transferee, assignee or
sublessee, then Landlord shall have the option, exercisable by giving notice to Tenant within ten (10) days after Landlord's receipt
of such Transfer Notice, to terminate this Lease as of the date specified in the Transfer Notice as the Transfer Date, except for
those provisions that, by their express terms, survive the expiration or earlier termination hereof. If Landlord exercises such
option, then Tenant shall have the right to withdraw such Transfer Notice by delivering to Landlord written notice of such election
within five (5) days after Landlord's delivery of notice electing to exercise Landlord's option to terminate this Lease. In the
event Tenant withdraws the Transfer Notice as provided in this Section, this Lease shall continue in full force and effect. No
failure of Landlord to exercise its option to terminate this Lease shall be deemed to be Landlord's consent to a proposed Transfer.

 

16.7.        If
Tenant sublets the Premises or any portion thereof, Tenant hereby immediately and irrevocably assigns to Landlord, as security
for Tenant's obligations under this Lease, all rent from any such subletting, and appoints Landlord as assignee and attorney-in-fact
for Tenant, and Landlord (or a receiver for Tenant appointed on Landlord's application) may collect such rent and apply it toward
Tenant's obligations under this Lease; provided that, until the occurrence of a Default (as defined below) by Tenant, Tenant shall
have the right to collect such rent.

 

16.8.        Permitted
Transfers. Notwithstanding anything to the contrary contained in this Section 16 and provided that (a) no default by
Tenant under this Lease has occurred and is continuing and (b) any such assignee agrees to assume all of Tenant's obligations under
this Lease, Tenant shall have the right to assign and transfer all, but not less than all, of its interest in, to and under this
Lease without Landlord's consent in accordance with Sections 16.8.1. or 16.8.2. below (each such assignee, a “Permitted
Transferee” and each such assignment, a "Permitted Transfer").

 

16.8.1.     Tenant
may make a Permitted Transfer to (i) an affiliate of Tenant, or (ii) any entity which purchases or otherwise acquires all or substantially
all of the assets or equity interest of Tenant in a bona fide sale for fair market value, provided that (a) Tenant notifies Landlord
at least twenty (20) days prior to the effective date of any such Permitted Transfer, (b) such assignment is not a subterfuge by
Tenant to avoid its obligations under this Lease, (c) Tenant remains fully liable under this Lease, and (d) the liability of such
Permitted Transferee under such Permitted Transfer shall be joint and several with Tenant and each Guarantor. Tenant's notice to
Landlord of such Permitted Transfer shall include information and documentation showing that each of the above conditions has been
satisfied, which documentation shall be reasonably acceptable to Landlord.

 

16.8.2.     Tenant
may make a Permitted Transfer to a Qualified Operator, provided that (a) Tenant notifies Landlord at least twenty (20) days prior
to the effective date of any such Permitted Transfer, and (b) such assignment is not a subterfuge by Tenant to avoid its obligations
under this Lease. Furthermore, in the event the Permitted Transferee does not qualify as a Qualified Operator, Tenant may still
effectuate a Permitted Transfer to the proposed assignee in accordance with this Section by providing, or causing to be provided,
a guaranty agreement in favor of Landlord from an entity that meets all of the requirements of a Qualified Operator, which guaranty
agreement shall guaranty the performance of all obligations to be assumed by such assignee under the Lease and otherwise be in
form and substance reasonably acceptable to and approved by Landlord in writing. Tenant's notice to Landlord of any Permitted Transfer
pursuant to this Section shall include information and documentation showing that the Permitted Transferee or guarantor, as applicable,
satisfies the requirements for a Qualified Operator and shall also include a certification by the principal financial officer of
the Permitted Transferee or guarantor, as applicable, that such Permitted Transferee or guarantor, as applicable, satisfies such
requirements of a Qualified Operator. In the event that Tenant satisfies the requirements to effect a Permitted Transfer pursuant
to this Section 16.8.2., Tenant shall be released from any liability arising under this Lease from and after the date of
such assignment.

 

16.8.3.     For
purposes of this Section 16.8, capitalized terms are defined as follows:

 

"Capital Lease"
shall mean all leases of any property, whether real, personal or mixed, by a Person, which leases would, in conformity with GAAP,
be required to be accounted for as a capital lease on the balance sheet of such Person. The term "Capital Lease" shall
not include any operating lease.

 

"CFCCR"
means with respect to the twelve (12) month period of time immediately preceding the date of determination, the ratio calculated
for such period of time, each as determined in accordance with GAAP, of (1) the sum of Net Income (excluding non-cash income),
Depreciation and Amortization, Interest Expense, Operating Lease Expense and non-cash expenses to (2) the sum of Operating Lease
Expense, scheduled principal payments of long term Debt, scheduled maturities of all Capital Leases, dividends and Interest Expense
(excluding non-cash interest expense and amortization of non-cash financing expenses).

 

    	 	15	 

     

    

 

"Debt"
shall mean with respect to a Person, and for the period of determination (i) indebtedness for borrowed money, (ii) subject to the
limitation set forth in sub-item (iv) below, obligations evidenced by bonds, indentures, notes or similar instruments, (iii) obligations
under leases which should be, in accordance with GAAP, recorded as Capital Leases, and (iv) obligations under direct or indirect
guarantees in respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a
creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to in clauses (i) through (iv)
above, except for guaranty obligations of such Person, which, in conformity with GAAP, are not included on the balance sheet of
such Person.

 

"Depreciation and
Amortization" shall mean the depreciation and amortization accruing during any period of determination with respect to
a Person, as determined in accordance with GAAP.

 

"EBITDA"
means for the twelve (12) month period ending on the date of determination, the sum of a Person's net income (loss) for such period
plus, in each case to the extent previously deducted in calculating net income (loss): (1) income taxes, (2) principal and interest
payments on all of its debt obligations (including any borrowings under short term credit facilities), (3) all non-cash charges
including depreciation and amortization, and (4) Non-Recurring Items.

 

"EBITDAR"
means the sum of a Person's EBITDA and its total land and building rent for the twelve (12) month period ending on the date of
determination.

 

"Interest Expense"
shall mean for any period of determination, the sum of all interest accrued or which should be accrued in respect of all Debt of
a Person, as determined in accordance with GAAP.

 

"Lease Adjusted
Leverage" means with respect to a Person, as of any applicable date, the sum of (1) eight (8) times such Person's total
land and building rent for the twelve (12) month period ending on the date of determination, and (2) the total current balance
of such Person's total debt obligations (including any borrowings under short term credit facilities) on such date, divided by
EBITDAR.

 

"Net Income"
shall mean with respect to the period of determination, the net income or net loss of a Person. In determining the amount of Net
Income, (i) adjustments shall be made for nonrecurring gains and losses or non-cash items allocable to the period of determination,
(ii) deductions shall be made for, among other things, Depreciation and Amortization, Interest Expense, Operating Lease Expense,
and (iii) no deductions shall be made for income taxes or charges equivalent to income taxes allocable to the period of determination,
as determined in accordance with GAAP.

 

"Non-Recurring
Items" shall mean with respect to a Person, items of the sum (whether positive or negative) of revenue minus expenses
that, in the judgment of Landlord, are unusual in nature, occur infrequently and are not representative of the ongoing or future
earnings or expenses of such Person.

 

"Operating Lease
Expense" shall mean the sum of all payments and expenses incurred by a Person under any operating leases during the period
of determination, as determined in accordance with GAAP.

 

"Qualified Operator"
shall mean a Person who, following the consummation of the assignment contemplated in the Lease, (A) has a CFCCR of at least 2.5x,
(B) generates EBITDA of at least $20,000,000 during a trailing twelve (12) month period, and (C) has a Lease Adjusted Leverage
of no more than 6.0x.

 

"Person"
shall mean any corporation, partnership, limited liability company or other entity.

 

    	 	16	 

     

    

 

		17.	Indemnification and Exculpation.

 

17.1.          Tenant
agrees to indemnify, save, defend (at Landlord's option and with counsel reasonably acceptable to Landlord) and hold the Landlord
Indemnitees harmless from and against any and all Claims of any kind or nature, real or alleged, arising from (a) injury to or
death of any person or damage to any property occurring within or about the Premises arising directly or indirectly out of the
presence at or use or occupancy of the Premises or Project by a Tenant Party, (b) an act or omission on the part of any Tenant
Party, (c) a breach or default by Tenant in the performance of any of its obligations hereunder or (d) injury to or death of persons
or damage to or loss of any property, real or alleged, arising from the serving of any intoxicating substances at the Premises
or Project, except to the extent any of the foregoing are directly caused by Landlord's gross negligence or willful misconduct.
Tenant's obligations under this Section shall not be affected, reduced or limited by any limitation on the amount or type of damages,
compensation or benefits payable by or for Tenant under workers' compensation acts, disability benefit acts, employee benefit acts
or similar legislation. Tenant's obligations under this Section shall survive the expiration or earlier termination of this Lease.

 

17.2.          Notwithstanding
anything in this Lease to the contrary, Landlord shall not be liable to Tenant for and Tenant assumes all risk of (a) damage or
losses caused by fire, electrical malfunction, gas explosion or water damage of any type (including broken water lines, malfunctioning
fire sprinkler systems, roof leaks or stoppages of lines), and (b) damage to personal property (in each case, regardless of whether
such damages are foreseeable). Tenant further waives any claim for injury to Tenant's business or loss of income relating to any
such damage or destruction of personal property as described in this Section. Notwithstanding anything in the foregoing or this
Lease to the contrary, except as otherwise provided herein or as may be required by Applicable Laws, in no event shall Landlord
be liable to Tenant for any consequential, special or indirect damages arising out of this Lease, including lost profits.

 

17.3.          Landlord
shall not be liable for any damages arising from any act, omission or neglect of any third party.

 

17.4.          The
provisions of this Section shall survive the expiration or earlier termination of this Lease.

 

		18.	Insurance; Waiver of Subrogation.

 

18.1.          Landlord
shall maintain a policy or policies of insurance protecting Landlord against the following (all of which shall be payable by Tenant
as Operating Expenses):

 

18.1.1.          Fire
and other perils normally included within the classification of fire and extended coverage, together with insurance against vandalism
and malicious mischief, to the extent of the full replacement cost of the Premises, including,
at Landlord's option, earthquake and flood coverage, exclusive of trade fixtures, equipment and improvements insured by Tenant,
with agreed value, full replacement and other endorsements which Landlord may elect to maintain; 

 

18.1.2.          Thirty-six
(36) months of rental loss insurance and to the extent of 100% of the gross rentals from the Premises;

 

18.1.3.          Comprehensive
general liability insurance with a single limit of not less than $2,000,000 for bodily injury or death and property
damage with respect to the Premises, a general aggregate not less than $2,000,000 for bodily injury or death and property damage
with respect to the Premises, and not less than $4,000,000 of excess umbrella liability insurance; and

 

18.1.4.          At
Landlord's sole option, environmental liability or environmental clean-up/remediation insurance in such amounts and with such deductibles
and other provisions as Landlord may determine in its sole and absolute discretion.

 

Notwithstanding the foregoing, Landlord may,
at Landlord's option, request that Tenant procure and/or maintain, and pay directly, for one or more the foregoing policies of
insurance, and Tenant shall exercise reasonable efforts to promptly procure such policies of insurance (or maintain such policies
of insurance, as the case may be), and Landlord may require Tenant to name Landlord and Landlord's related parties as loss payees,
in addition to other customary provisions related to Landlord's status as the owner of the Property.

 

18.2.          Tenant
shall, at its own cost and expense, procure and maintain during the Term the following insurance for the benefit of Tenant and
Landlord (as their interests may appear) with insurers financially acceptable and lawfully authorized to do business in the state
where the Premises are located:

 

    	 	17	 

     

    

 

18.2.1.          Commercial
General Liability insurance on a broad-based occurrence coverage form, with coverages including but not limited to bodily injury
(including death), property damage (including loss of use resulting therefrom), premises/operations, personal & advertising
injury, and contractual liability with limits of liability of not less than $2,000,000 for bodily injury and property damage per
occurrence, $5,000,000 general aggregate, which limits may be met by use of excess and/or umbrella liability insurance provided
that such coverage is at least as broad as the primary coverages required herein.

 

18.2.2.          Commercial
Automobile Liability insurance covering liability arising from the use or operation of any auto, including those owned, hired or
otherwise operated or used by or on behalf of the Tenant. The coverage shall be on a broad-based occurrence form with combined
single limits of not less than $1,000,000 per accident for bodily injury and property damage.

 

18.2.3.          Commercial
Property insurance covering property damage to the full replacement cost value and business interruption. Covered property shall
include all tenant improvements in the Premises (to the extent not insured by Landlord) and Tenant's property including personal
property, furniture, fixtures, machinery, equipment, stock, inventory and improvements and betterments, which may be owned by Tenant
or Landlord and required to be insured hereunder, or which may be leased, rented, borrowed or in the care custody or control of
Tenant, or Tenant's agents, employees or subcontractors. Such insurance, with respect only to all Alterations, Tenant Improvements
or other work performed on the Premises by Tenant (collectively, "Tenant Work"), shall name Landlord and Landlord's
current and future mortgagees as loss payees as their interests may appear. Such insurance shall be written on an "all risk"
of physical loss or damage basis including the perils of fire, extended coverage, electrical injury, mechanical breakdown, windstorm,
vandalism, malicious mischief, sprinkler leakage, back-up of sewers or drains, flood, earthquake, terrorism and such other risks
Landlord may from time to time designate, for the full replacement cost value of the covered items with an agreed amount endorsement
with no co-insurance. Business interruption coverage shall have limits sufficient to cover Tenant's lost profits and necessary
continuing expenses, including rents due Landlord under the Lease. The minimum period of indemnity for business interruption coverage
shall be twelve (12) months plus twelve (12) months' extended period of indemnity.

 

18.2.4.          Workers'
Compensation insurance as is required by statute or law, or as may be available on a voluntary basis and Employers' Liability insurance
with limits of not less than the following: each accident, Five Hundred Thousand Dollars ($500,000); disease, Five Hundred Thousand
Dollars ($500,000); disease (each employee), Five Hundred Thousand Dollars ($500,000).

 

18.2.5.          Pollution
Legal Liability insurance is required if Tenant stores, handles, generates or treats Hazardous Materials, as determined solely
by Landlord, on or about the Premises. Such coverage shall include bodily injury, sickness, disease, death or mental anguish or
shock sustained by any person; property damage including physical injury to or destruction of tangible property including the resulting
loss of use thereof, clean-up costs, and the loss of use of tangible property that has not been physically injured or destroyed;
and defense costs, charges and expenses incurred in the investigation, adjustment or defense of claims for such compensatory damages.
Coverage shall apply to both sudden and non-sudden pollution conditions including the discharge, dispersal, release or escape of
smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants
or pollutants into or upon land, the atmosphere or any watercourse or body of water. Claims-made coverage is permitted, provided
the policy retroactive date is continuously maintained prior to the commencement date of this Lease, and coverage is continuously
maintained during all periods in which Tenant occupies the Premises. Coverage shall be maintained with limits of not less than
$1,000,000 per incident with a $2,000,000 policy aggregate and for a period of two (2) years thereafter.

 

18.3.          During
all construction by Tenant at the Premises, with respect to tenant improvements being constructed (including the Tenant Improvements
and any Alterations), Tenant shall cause the insurance required in Exhibit E-1 to be in place.

 

    	 	18	 

     

    

 

18.4.          The
insurance required of Tenant by this Section shall be with companies at all times having a current rating of not less than A- and
financial category rating of at least Class VII in "A.M. Best's Insurance Guide" current edition. Tenant shall obtain
for Landlord from the insurance companies/broker or cause the insurance companies/broker to furnish certificates of insurance evidencing
all coverages required herein to Landlord. Landlord reserves the right to require complete, certified copies of all required insurance
policies including any endorsements. No such policy shall be cancelable or subject to reduction of coverage or other modification
or cancellation except after twenty (20) days' prior written notice to Landlord from Tenant or its insurers (except in the event
of non-payment of premium, in which case ten (10) days' written notice shall be given). All such policies shall be written as primary
policies, not contributing with and not in excess of the coverage that Landlord may carry. Tenant's required policies shall contain
severability of interests clauses stating that, except with respect to limits of insurance, coverage shall apply separately to
each insured or additional insured. Tenant shall, at least twenty-five (25) days prior to the expiration of such policies, furnish
Landlord with renewal certificates of insurance or binders. Tenant agrees that if Tenant does not take out and maintain such insurance,
Landlord may (but shall not be required to) procure such insurance on Tenant's behalf and at its cost to be paid by Tenant as Additional
Rent. Commercial General Liability, Commercial Automobile Liability, Umbrella Liability and Pollution Legal Liability insurance
as required above shall name Landlord, IIP Operating Partnership, LP and Innovative Industrial Properties, Inc. and their respective
officers, employees, agents, general partners, members, subsidiaries, affiliates and Lenders ("Landlord Parties")
as additional insureds as respects liability arising from work or operations performed by or on behalf of Tenant, Tenant's use
or occupancy of Premises, and ownership, maintenance or use of vehicles by or on behalf of Tenant.

 

18.5.          Tenant
assumes the risk of damage to any fixtures, goods, inventory, merchandise, equipment and leasehold improvements, and Landlord shall
not be liable for injury to Tenant's business or any loss of income therefrom, relative to such damage, all as more particularly
set forth within this Lease. Tenant shall, at Tenant's sole cost and expense, carry such insurance as Tenant desires for Tenant's
protection with respect to personal property of Tenant or business interruption.

 

18.6.          Tenant
and its insurers hereby waive any and all rights of recovery or subrogation against the Landlord Parties with respect to any loss,
damage, claims, suits or demands, howsoever caused, that are covered, or should have been covered, by valid and collectible insurance,
including any deductibles or self-insurance maintained thereunder. If necessary, Tenant agrees to endorse the required insurance
policies to permit waivers of subrogation as required hereunder and hold harmless and indemnify the Landlord Parties for any loss
or expense incurred as a result of a failure to obtain such waivers of subrogation from insurers. Such waivers shall continue so
long as Tenant's insurers so permit. Any termination of such a waiver shall be by written notice to Landlord, containing a description
of the circumstances hereinafter set forth in this Section. Tenant, upon obtaining the policies of insurance required or permitted
under this Lease, shall give notice to its insurance carriers that the foregoing waiver of subrogation is contained in this Lease.
If such policies shall not be obtainable with such waiver or shall be so obtainable only at a premium over that chargeable without
such waiver, then Tenant shall notify Landlord of such conditions.

 

18.7.          Landlord
may require insurance policy limits required under this Lease to be raised to conform with requirements of Landlord's lender, if
any.

 

18.8.          Any
costs incurred by Landlord pursuant to this Section shall be included as Operating Expenses payable by Tenant pursuant to this
Lease.

 

18.9.          The
provisions of this Section shall survive the expiration or earlier termination of this Lease.

 

		19.	Subordination and Attornment.

 

19.1.          This
Lease shall be subject and subordinate to the lien of any mortgage, deed of trust, or lease in which Landlord is tenant now or
hereafter in force against the Premises or any portion thereof and to all advances made or hereafter to be made upon the security
thereof without the necessity of the execution and delivery of any further instruments on the part of Tenant to effectuate such
subordination, provided the holder of any such mortgage, deed of trust or lease provides Tenant with an executed Non-Disturbance
Agreement in commercially reasonable form.

 

19.2.          Notwithstanding
the foregoing, Tenant shall execute and deliver upon demand such further instrument or instruments evidencing such subordination
of this Lease to the lien of any such mortgage or mortgages or deeds of trust or lease in which Landlord is tenant as may be required
by Landlord. If any such mortgagee, beneficiary or landlord under a lease wherein Landlord is tenant (each, a "Mortgagee")
so elects, however, this Lease shall be deemed prior in lien to any such lease, mortgage, or deed of trust upon or including the
Premises regardless of date and Tenant shall execute a statement in writing to such effect at Landlord's request. If Tenant fails
to execute any document required from Tenant under this Section within ten (10) days after written request therefor, Tenant hereby
constitutes and appoints Landlord or its special attorney-in-fact to execute and deliver any such document or documents in the
name of Tenant. Such power is coupled with an interest and is irrevocable.

 

    	 	19	 

     

    

 

19.3.          Upon
written request of Landlord and opportunity for Tenant to review, Tenant agrees to execute any Lease amendments not materially
altering the terms of this Lease, if required by a Mortgagee incident to the financing of the real property of which the Premises
constitute a part.

 

19.4.          In
the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage
or deed of trust made by Landlord covering the Premises, Tenant shall at the election of the purchaser at such foreclosure or sale
attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease.

 

		20.	Defaults and Remedies.

 

20.1.          Late
payment by Tenant to Landlord of Rent and other sums due shall cause Landlord to incur costs not contemplated by this Lease, the
exact amount of which shall be extremely difficult and impracticable to ascertain. Such costs include processing and accounting
charges and late charges that may be imposed on Landlord by the terms of any mortgage or trust deed covering the Premises. Therefore,
if any installment of Base Rent or the Property Management Fee or any other recurring monthly payment of Rent due from Tenant is
not received by Landlord within five (5) days after the date such payment is due, then Tenant shall pay to Landlord (a) an additional
sum of fifteen percent (15%) of the overdue Rent as a late charge plus (b) interest at an annual rate (the "Default Rate")
equal to the lesser of (a) fifteen percent (15%) and (b) the highest rate permitted by Applicable Laws. Furthermore, if any other
payment of Rent due from Tenant is not received by Landlord within ten (10) days after Landlord has provided Tenant with written
notice that such amount is overdue, then Tenant shall pay to Landlord (i) an additional sum of fifteen percent (15%) of the overdue
Rent as a late charge plus (ii) interest at the Default Rate. The parties agree that this late charge represents a fair and reasonable
estimate of the costs that Landlord shall incur by reason of late payment by Tenant and shall be payable as Additional Rent to
Landlord due with the next installment of Rent. Landlord's acceptance of any Additional Rent (including a late charge or any other
amount hereunder) shall not be deemed an extension of the date that Rent is due or prevent Landlord from pursuing any other rights
or remedies under this Lease, at law or in equity.

 

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

 

20.3.          If
Tenant fails to pay any sum of money required to be paid by it hereunder or perform any other act on its part to be performed hereunder,
in each case within the applicable cure period (if any) described herein, then Landlord may (but shall not be obligated to), without
waiving or releasing Tenant from any obligations of Tenant, make such payment or perform such act. Notwithstanding the foregoing,
in the event of an emergency, Landlord shall have the right to enter the Premises and act in accordance with its rights as provided
elsewhere in this Lease. Tenant shall pay to Landlord as Additional Rent all sums so paid or incurred by Landlord, together with
interest at the Default Rate, computed from the date such sums were paid or incurred.

 

20.4.          The
occurrence of any one or more of the following events shall constitute a "Default" hereunder by Tenant:

 

20.4.1.          Tenant
abandons or vacates the Premises;

 

20.4.2.          Tenant
fails to make any payment of Rent, as and when due, where such failure shall continue for a period of ten (10) days after written
notice thereof from Landlord to Tenant;

 

20.4.3.          Tenant
fails to observe or perform any obligation or covenant contained herein, after the expiration of any applicable notice and cure
periods; provided, however, if such a default is capable of cure but such cure is not commercially practicable within any such
notice and cure period, Tenant shall not be deemed in default if Tenant commences efforts to cure any such breach promptly and
thereafter diligently proceeds to effectuate such cure;

 

    	 	20	 

     

    

 

20.4.4.          Tenant
makes an assignment for the benefit of creditors, or a receiver, trustee or custodian is appointed to or does take title, possession
or control of all or substantially all of Tenant's or any Guarantor's assets;

 

20.4.5.          Tenant
or any Guarantor files a voluntary petition under the United States Bankruptcy Code or any successor statute (as the same may be
amended from time to time, the "Bankruptcy Code") or an order for relief is entered against Tenant or any Guarantor
(as applicable) pursuant to a voluntary or involuntary proceeding commenced under any chapter of the Bankruptcy Code;

 

20.4.6.          Any
involuntary petition is filed against Tenant or any Guarantor under any chapter of the Bankruptcy Code and is not dismissed within
one hundred twenty (120) days;

 

20.4.7.          A
default exists under any Guaranty executed by a Guarantor in favor of Landlord, after the expiration of any applicable notice and
cure periods;

 

20.4.8.          Tenant's
interest in this Lease is attached, executed upon or otherwise judicially seized and such action is not released within one hundred
twenty (120) days of the action;

 

20.4.9.          A
governmental authority seizes any part of the Property seeking forfeiture, whether or not a judicial forfeiture proceeding has
commenced;

 

20.4.10.         A
final, non-appealable judgment having the effect of establishing that Tenant's operation violates Landlord's contractual obligations
(i) pursuant to any private covenants of record restricting Landlord's Building containing the Premises or (ii) of good faith and
fair dealing to any third party, including other tenants of the Building containing the Premises or occupants or owners of any
other building within the Project; or

 

20.4.11.         An
event occurs that results in any insurance carrier that provides insurance coverage with respect to any aspect of the Project providing
notice to the Landlord of its intent to cancel such insurance coverage, and Landlord, exercising commercially reasonable efforts,
is not able to procure comparable replacement insurance coverage that is reasonably acceptable to Landlord prior to the actual
cancellation date specified in the notice from the cancelling insurance carrier.

 

20.5.          Notices
given under this Section shall specify the alleged default and shall demand that Tenant perform the provisions of this Lease or
pay the Rent that is in arrears, as the case may be, within the applicable period of time, or quit the Premises. No such notice
shall be deemed a forfeiture or a termination of this Lease unless Landlord elects otherwise in such notice.

 

20.6.          In
the event of a Default by Tenant, and at any time thereafter, with or without notice or demand and without limiting Landlord in
the exercise of any right or remedy that Landlord may have under Applicable Laws or this Lease, Landlord has the right to do any
or all of the following:

 

20.6.1.          Halt
any Tenant Improvements or Alterations and order Tenant's contractors to stop work;

 

20.6.2.          Terminate
Tenant's right to possession of the Premises by written notice to Tenant or by any lawful means, in which case Tenant shall immediately
surrender possession of the Premises to Landlord. In such event, Landlord shall have the immediate right to re-enter and remove
all persons and property, and such property may be removed and stored elsewhere at the cost and for the account of Tenant, all
without service of notice or resort to legal process and without being deemed guilty of trespass or becoming liable for any loss
or damage; and

 

20.6.3.          Terminate
this Lease, in which event Tenant shall immediately surrender possession of the Premises to Landlord. In such event, Landlord shall
have the immediate right to re-enter and remove all persons and property, and such property may be removed and stored elsewhere
at the cost and for the account of Tenant, all without service of notice or resort to legal process and without being deemed guilty
of trespass or becoming liable for any loss or damage. In the event that Landlord shall elect to so terminate this Lease, then
Landlord shall be entitled to recover from Tenant all damages incurred by Landlord by reason of Tenant's default, including:

 

    	 	21	 

     

    

 

20.6.3.1.          The
sum of: (i) the worth at the time of award (computed by allowing interest at the Default Rate) of any unpaid Rent that had accrued
at the time of such termination; plus (ii) the worth at the time of award of the amount by which the unpaid Rent that would have
accrued during the period commencing with termination of the Lease and ending at the time of award exceeds that portion of the
loss of Landlord's rental income from the Premises that Tenant proves to Landlord's reasonable satisfaction could have been reasonably
avoided; plus; (iii) the worth at the time of award of the amount by which the unpaid Rent for the balance of the Term after the
time of award exceeds that portion of the loss of Landlord's rental income from the Premises that Tenant proves to Landlord's reasonable
satisfaction could have been reasonably avoided; plus (iv) any other amount necessary to compensate Landlord for all the detriment
caused by Tenant's failure to perform its obligations under this Lease or that in the ordinary course of things would be likely
to result therefrom, including the cost of restoring the Premises to the condition required under the terms of this Lease, including
any rent payments not otherwise chargeable to Tenant (e.g., during any "free" rent period or rent holiday); plus (v)
At Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by
Applicable Laws; or

 

20.6.3.2.          At
Landlord's election, as minimum liquidated damages in addition to any (A) amounts paid or payable to Landlord pursuant to Section
20.6.3.1.(i) prior to such election and (B) costs of restoring the Premises to the condition required under the terms of this
Lease, an amount (the "Election Amount") equal to either (Y) the positive difference (if any, and measured at
the time of such termination) between (1) the then-present value of the total Rent and other benefits that would have accrued to
Landlord under this Lease for the remainder of the Term if Tenant had fully complied with the Lease minus (2) the then-present
cash rental value of the Premises as determined by Landlord for what would be the then-unexpired Term if the Lease remained in
effect, computed using the discount rate of the Federal Reserve Bank of San Francisco at the time of the award plus one (1) percentage
point (the "Discount Rate") or (Z) twelve (12) months (or such lesser number of months as may then be remaining
in the Term) of Base Rent and Additional Rent at the rate last payable by Tenant pursuant to this Lease, in either case as Landlord
specifies in such election. Landlord and Tenant agree that the Election Amount represents a reasonable forecast of the minimum
damages expected to occur in the event of a breach, taking into account the uncertainty, time and cost of determining elements
relevant to actual damages, such as fair market rent, time and costs that may be required to re-lease the Premises, and other factors;
and that the Election Amount is not a penalty.

 

20.7.          In
addition to any other remedies available to Landlord at law or in equity and under this Lease, Landlord may continue this Lease
in effect after Tenant's Default or abandonment and recover Rent as it becomes due. In addition, Landlord shall not be liable in
any way whatsoever for its failure or refusal to relet the Premises. For purposes of this Section, the following acts by Landlord
will not constitute the termination of Tenant's right to possession of the Premises: Acts of maintenance or preservation or efforts
to relet the Premises, including alterations, remodeling, redecorating, repairs, replacements or painting as Landlord shall consider
advisable for the purpose of reletting the Premises or any part thereof; or the appointment of a receiver upon the initiative of
Landlord to protect Landlord's interest under this Lease or in the Premises.

 

20.8.          Notwithstanding
the foregoing, in the event of a Default by Tenant, Landlord may elect at any time to terminate this Lease and to recover damages
to which Landlord is entitled.

 

20.9.          If
Landlord does not elect to terminate this Lease as provided in this Section 20, then Landlord may, from time to time, recover
all Rent as it becomes due under this Lease. At any time thereafter, Landlord may elect to terminate this Lease and to recover
damages to which Landlord is entitled.

 

20.10.         All
of Landlord's rights, options and remedies hereunder shall be construed and held to be nonexclusive and cumulative. Notwithstanding
any provision of this Lease to the contrary, in no event shall Landlord be required to mitigate its damages with respect to any
default by Tenant, except as required by Applicable Laws. Any such obligation imposed by Applicable Laws upon Landlord to relet
the Premises after any termination of this Lease shall be subject to the reasonable requirements of Landlord to lease to high quality
tenants on such terms as Landlord may from time to time deem appropriate in its discretion. Landlord shall not be obligated to
relet the Premises to any party (i) unacceptable to a Lender, (ii) that requires Landlord to make improvements to or re-demise
the Premises, (iii) that desires to change the Permitted Use, (iv) that desires to lease the Premises for more or less than the
remaining Term or (v) to whom Landlord or an affiliate of Landlord may desire to lease other available space in the Project or
at another property owned by Landlord or an affiliate of Landlord.

 

    	 	22	 

     

    

 

20.11.         To
the extent permitted by Applicable Laws, Tenant waives any and all rights of redemption granted by or under any present or future
Applicable Laws if Tenant is evicted or dispossessed for any cause, or if Landlord obtains possession of the Premises due to Tenant's
default hereunder or otherwise.

 

20.12.         Landlord
shall not be in default or liable for damages under this Lease unless Landlord fails to perform obligations required of Landlord
within a reasonable time. In no event shall Tenant have the right to terminate or cancel this Lease or to withhold or abate rent
or to set off any Claims against Rent as a result of any default or breach by Landlord of any of its covenants, obligations, representations,
warranties or promises hereunder, except as may otherwise be expressly set forth in this Lease.

 

20.13.         In
the event of any default by Landlord, Tenant shall give notice by registered or certified mail to any (a) beneficiary of a deed
of trust or (b) mortgagee under a mortgage covering the Premises or any portion thereof and to any landlord of any lease of land
upon or within which the Premises are located, and shall offer such beneficiary, mortgagee or landlord a reasonable opportunity
to cure the default, including time to obtain possession of the Premises by power of sale or a judicial action if such should prove
necessary to effect a cure; provided that Landlord shall furnish to Tenant in writing, upon written request by Tenant, the names
and addresses of all such persons who are to receive such notices.

 

		21.	Damage or Destruction.

 

21.1.          Tenant's
Obligation to Rebuild.  If the Premises are damaged or destroyed, Tenant shall immediately provide notice thereof to Landlord,
and shall promptly thereafter deliver to Landlord Tenant's good faith estimate of the time it will take to repair and rebuild the
Premises (the "Estimated Time For Repair"). Subject to the other provisions of this Section 21, Tenant
shall promptly and diligently repair and rebuild the Premises in accordance with this Section 21 unless Landlord or
Tenant terminates this Lease in accordance with Section 21.2.

 

21.2.         Termination.

 

  21.2.1.     Landlord's
Right to Terminate.

 

21.2.1.1.          Landlord shall have the right to terminate this Lease following damage to or destruction
of all or a substantial portion of the Premises if any of the following occurs (each, a "Termination Condition"):
(i) insurance proceeds, together with additional amounts Tenant agrees to contribute under this Section 21, are not
confirmed to be available to Landlord, within 90 days following the date of damage, to pay 100% of the cost to fully repair the
damaged Premises, excluding the deductible for which Tenant shall also be responsible for paying as an Operating Expense; (ii) based
upon the Estimated Time For Repair, the Premises cannot, with reasonable diligence, be fully repaired by Tenant within eighteen
(18) months after the date of the damage or destruction; (iii) the Premises cannot be safely repaired because of the
presence of hazardous factors, including, but not limited to, earthquake faults, chemical waste and other similar dangers; (iv) subject
to the terms and conditions of Section 21.2.1.1. hereof, all or a substantial portion of the Premises are
destroyed or damaged during the last 24 months of the Term; or (v) Tenant is in Default at the time of such damage or
destruction past any period of notice and cure as elsewhere provided in this Lease. For purposes of this Section 21.2,
a "substantial portion" of the Premises shall be deemed to be damaged or destroyed if the Premises is rendered unsuitable
for the continued use and occupancy of Tenant's business substantially in the same manner conducted prior to the event causing
the damage or destruction.

 

21.2.1.2.          
If all or a substantial portion of the Premises are destroyed or damaged within the last
twenty-four (24) months of the initial Term, or within the last twenty-four (24) months of the first Extension Period
under this Lease, and Landlord desires to terminate this Lease under Section 21.2.1.1. hereof, Landlord shall
deliver a Termination Notice to Tenant pursuant to Section 21.2.3 below and Tenant shall have a period of thirty (30) days
after receipt of the Termination Notice ("Tenant's Early Option Period") to exercise its option to extend
the initial Term or the first Extension Period, as applicable, by providing Landlord with written notice of Tenant's exercise of
its respective option prior to the expiration of Tenant's Early Option Period. If Tenant exercises its option rights under the
immediately preceding sentence, the Termination Notice shall be deemed rescinded and Tenant shall proceed to repair and rebuild
the Premises in accordance with the other provisions of this Section 21. If Tenant fails to deliver such written notice
to Landlord prior to the end of Tenant's Early Option Period, then Tenant shall be deemed to have waived its option to extend the
Term, and the last day of Tenant's Early Option Period shall be deemed to be the date of the occurrence of the Termination Condition
under Section 21.2.1.1.

 

    	 	23	 

     

    

 

21.2.2.          Tenant's
Right to Terminate. Tenant shall have the right to terminate this Lease following damage to or destruction of all or a
substantial portion of the Premises if the Premises are destroyed or damaged during the last twenty-four (24) months of the
Term, which termination shall be deemed to constitute a Termination Condition. 

 

21.2.3.          Exercise
of Termination Right. If a party elects to terminate this Lease and has the right to so terminate, such party will give the
other party written notice of its election to terminate ("Termination Notice") within thirty (30) days after
the occurrence of the applicable Termination Condition, and this Lease will terminate fifteen (15) days after the receiving
party's receipt of such Termination Notice, except in the case of a termination by Landlord under Section 21.2.1.1.,
in which case this Lease will terminate fifteen (15) days after expiration of the Tenant Early Option Period if Tenant timely
fails to exercise timely Tenant's option to extend the Term. If this Lease is terminated pursuant to Section 21.2,
Landlord shall, subject to the rights of its lender(s), be entitled to receive and retain all the insurance proceeds resulting
from such damage, including rental loss insurance, except for those proceeds payable under policies obtained by Tenant which specifically
insure Tenant's personal property, trade fixtures and machinery. 

 

21.3.       Tenant's
Obligation to Repair. If Tenant is required to repair or rebuild any damage or destruction of the Premises under Section 21.1,
then Tenant shall (a) submit its plans to repair such damage and reconstruct the Premises to Landlord for review and approval,
which approval shall not be unreasonably withheld; (b) diligently repair and rebuild the Premises in the same or better condition
and with the same or better quality of materials as the condition of the Premises as of the Commencement Date, and in a manner
that is consistent with the plans and specifications approved by Landlord; (c) obtain all permits and governmental approvals
necessary to repair or reconstruct the Premises (which permits shall not contain any conditions that are materially more restrictive
than the permits in existence on the date hereof); (d) cause all work to be performed only by qualified contractors that are
reasonably approved by Landlord; (e) allow Landlord and its consultants and agents to enter the Premises at all reasonable
times to inspect the Premises and Tenant's ongoing work and cooperate reasonably in good faith with their effort to ensure that
the work is proceeding in a manner that is consistent with this Lease; (f) comply with all applicable laws and permits in
connection with the performance of such work; (g) timely pay all of its consultants, suppliers and other contractors in connection
with the performance of such work; (h) notify Landlord if Tenant receives any notice of any default or any violation of any
applicable law or any permit or similar notice in connection with such work; (i) deliver as-built plans for the Premises within
thirty (30) days after the completion of such repair and restoration; (j) ensure that Landlord has fee simple title to
the Premises during such work without any claim by any contractor or other party; (k) maintain such insurance as Landlord
may reasonably require (including insurance in the nature of builders' risk insurance) and (l) comply with such other conditions
as Landlord may reasonably require. In addition, Tenant shall, at its expense, replace or fully repair all of Tenant's personal
property and any alterations installed by Tenant existing at the time of such damage or destruction. To the fullest extent permitted
by law, Tenant shall indemnify, protect, defend and hold Landlord (and its employees and agents) harmless from and against any
and all claims, costs, expenses, suits, judgments, actions, investigations, proceedings and liabilities arising out of or in connection
with Tenant's obligations under this Section 21, including, without limitation, any acts, omissions or negligence in
the making or performance of any such repairs or replacements. In the event Tenant does not repair and rebuild the Premises pursuant
to this Section 21, Tenant shall be in breach, and Landlord shall have the right to retain all casualty insurance proceeds
and condemnation proceeds.

 

21.4.       Application
of Insurance Proceeds for Repair and Rebuilding. Landlord shall cause the insurance proceeds (the "Insurance Proceeds")
on account of such damage or destruction to be held by Landlord and disbursed as follows:

 

21.4.1.          Minor
Restorations. If (i) the estimated cost of restoration is less than One Million Dollars ($1,000,000.00), (ii) prior to commencement
of restoration, no Default or event which, with the passage of time, would give rise to a Default shall exist and no mechanics'
or materialmen's liens shall have been filed and remain undischarged, (iii) the architects, contracts, contractors, plans and specifications
for the restoration shall have been approved by Landlord (which approval shall not be unreasonably withheld or delayed), (iv) Landlord
shall be provided with reasonable assurance against mechanics' liens, accrued or incurred, as Landlord or its lenders may reasonably
require and such other documents and instruments as Landlord or its lenders may reasonably require, and (v) Tenant shall have procured
acceptable performance and payment bonds reasonably acceptable to Landlord in an amount and form, and from a surety, reasonably
acceptable to Landlord, and naming Landlord as an additional obligee; then Landlord shall make available that portion of the Insurance
Proceeds to Tenant for application to pay the costs of restoration incurred by Tenant and Tenant shall promptly complete such restoration.

 

    	 	24	 

     

    

 

21.4.2.          Other
Than Minor Restorations. If the estimated cost of restoration is equal to or exceeds One Million Dollars ($1,000,000), and
if Tenant provides evidence satisfactory to Landlord that sufficient funds are available to restore the Premises, Landlord shall
make disbursements from the available Insurance Proceeds from time to time in an amount not exceeding the cost of the work completed
since the date covered by the last disbursement, upon receipt of (a) satisfactory evidence, including architect's certificates,
of the stage of completion, of the estimated cost of completion and of performance of the work to date in a good and workmanlike
manner in accordance with the contracts, plans and specifications, (b) reasonable assurance against mechanics' or materialmen's
liens, accrued or incurred, as Landlord or its lenders may reasonably require, (c) contractors' and subcontractors' sworn
statements, (d) a satisfactory bring-to-date of title insurance, (e) performance and payment bonds reasonably acceptable
to Landlord in an amount and form, and from a surety, reasonably acceptable to Landlord, and naming Landlord as an additional obligee,
(f) such other documents and instruments as Landlord or its lenders may reasonably require, and (g) other evidence of
cost and payment so that Landlord can verify that the amounts disbursed from time to time are represented by work that is completed,
in place and free and clear of mechanics' lien claims.

 

21.4.3.          Requests
for Disbursements. Requests for disbursement shall be made no more frequently than monthly and shall be accompanied by a certificate
of Tenant describing in detail the work for which payment is requested, stating the cost incurred in connection therewith and stating
that Tenant has not previously received payment for such work; the certificate to be delivered by Tenant upon completion of the
work shall, in addition, state that the work has been completed and complies with the applicable requirements of this Lease. Landlord
may retain 10% of each requisition until the restoration is fully completed. In addition, Landlord may withhold from amounts otherwise
to be paid to Tenant, any amount that is necessary in Landlord's reasonable judgment to protect Landlord from any potential loss
due to work that is improperly performed or claims by Tenant's contractors and consultants.

 

21.4.4.          Costs
in Excess of Insurance Proceeds. In addition, prior to commencement of restoration and at any time during restoration, if the
estimated cost of restoration, as determined by the evaluation of an independent engineer acceptable to Landlord and Tenant, exceeds
the amount of the Insurance Proceeds, Tenant will provide evidence satisfactory to Landlord that the amount of such excess will
be available to restore the Premises. Any Insurance Proceeds remaining upon completion of restoration shall be refunded to Tenant
up to the amount of Tenant's payments pursuant to the immediately preceding sentence. If no such refund is required, any sum of
Insurance Proceeds remaining upon completion of restoration shall be paid to Landlord. In the event Landlord and Tenant cannot
agree on an independent engineer, an independent engineer designated by Tenant and an independent engineer designated by Landlord
shall within five (5) business days select an independent engineer licensed to practice in California who shall resolve such dispute
within ten (10) business days after being retained by Landlord. All fees, costs and expenses of such third engineer so selected
shall be shared equally by Landlord and Tenant.

 

21.5.          Abatement
of Rent. In the event of repair, reconstruction and restoration as provided in this Section, all Rent to be paid
by Tenant under this Lease shall be abated proportionately based on the extent to which Tenant's use of the Premises is impaired
during the period of such repair, reconstruction or restoration, unless Landlord provides Tenant with other space reasonably acceptable
to Tenant during the period of repair, reconstruction and restoration that, in Tenant's reasonable opinion, is suitable for the
temporary conduct of Tenant's business; provided, however, that the amount of such abatement shall be reduced by the amount
of Rent that is received by Tenant as part of the business interruption or loss of rental income with respect to the Premises from
the proceeds of business interruption or loss of rental income insurance. Tenant shall not
otherwise be entitled to any compensation or damages from Landlord for loss of the use of the Premises, damage to Tenant's personal
property or any inconvenience occasioned by such damage, repair or restoration. 

 

21.6.          Replacement
Cost. The determination in good faith by Landlord of the estimated cost of repair of any damage, of the replacement cost, or
of the time period required for repair shall be conclusive for purposes of this Section 21.

 

21.7.          This
Section 21 sets forth the terms and conditions upon which this Lease may terminate in the event of any damage or destruction.
Accordingly, the parties hereby waive the provisions of any Applicable Laws (and any successor statutes) permitting the parties
to terminate this Lease as a result of any damage or destruction.

 

    	 	25	 

     

    

 

		22.	Eminent Domain.

 

22.1.          In
the event (a) the whole of the Premises or (b) such part thereof as shall substantially interfere with Tenant's use and occupancy
of the Premises for the Permitted Use shall be taken for any public or quasi-public purpose by any lawful power or authority by
exercise of the right of appropriation, condemnation or eminent domain, or sold to prevent such taking, Tenant or Landlord may
terminate this Lease effective as of the date possession is required to be surrendered to such authority, except with regard to
(y) items occurring prior to the taking and (z) provisions of this Lease that, by their express terms, survive the expiration or
earlier termination hereof.

 

22.2.          In
the event of a partial taking of the Premises for any public or quasi-public purpose by any lawful power or authority by exercise
of right of appropriation, condemnation, or eminent domain, or sole to prevent such taking, then, without regard to whether any
portion of the Premises occupied by Tenant was so taken, Landlord may elect to terminate this Lease (except with regard to (a)
items occurring prior to the taking and (b) provisions of this Lease that, by their express terms, survive the expiration or earlier
termination hereof) as of such taking if such taking is, in Landlord's sole opinion, of a material nature such as to make it uneconomical
to continue use of the unappropriated portion for purposes of renting space for the Permitted Use.

 

22.3.          Tenant
shall be entitled to any award that is specifically awarded as compensation for (a) the taking of Tenant's personal property that
was installed at Tenant's expense and (b) the costs of Tenant moving to a new location. Except as set forth in the previous sentence,
any award for such taking shall be the property of Landlord.

 

22.4.          If,
upon any taking of the nature described in this Section, this Lease continues in effect, then Landlord shall promptly proceed to
restore the Premises to substantially their same condition prior to such partial taking. To the extent such restoration is infeasible,
as determined by Landlord in its sole and absolute discretion, the Rent shall be decreased proportionately to reflect the loss
of any portion of the Premises no longer available to Tenant.

 

22.5.          This
Section 22 sets forth the terms and conditions upon which this Lease may terminate in the event of any damage or destruction.
Accordingly, the parties hereby waive the provisions of any Applicable Laws (and any successor statutes) permitting the parties
to terminate this Lease as a result of any damage or destruction.

 

23.         Surrender.
At least thirty (30) days prior to Tenant's surrender of possession of any part of the Premises, Tenant shall provide Landlord
with a facility decommissioning and Hazardous Materials closure plan for the Premises ("Exit Survey") prepared
by an independent third-party state-certified professional with appropriate expertise, which Exit Survey must be reasonably acceptable
to Landlord. In addition, at least ten (10) days prior to Tenant's surrender of possession of any part of the Premises, Tenant
shall (a) provide Landlord with written evidence of all appropriate governmental releases obtained by Tenant in accordance with
Applicable Laws, including laws pertaining to the surrender of the Premises, and (b) conduct a site inspection with Landlord. In
addition, Tenant agrees to remain responsible after the surrender of the Premises for the remediation of any recognized environmental
conditions set forth in the Exit Survey and comply with any recommendations set forth in the Exit Survey. Tenant's obligations
under this Section shall survive the expiration or earlier termination of the Lease. The provisions of this Section 23 shall
survive the termination or expiration of this Lease, and no surrender of possession of any part of the Premises shall release Tenant
from any of its obligations hereunder, unless such surrender is accepted in writing by Landlord.

 

24.         Bankruptcy.
In the event a debtor, trustee or debtor in possession under the Bankruptcy Code, or another person with similar rights, duties
and powers under any other Applicable Laws, proposes to cure any default under this Lease or to assume or assign this Lease and
is obliged to provide adequate assurance to Landlord that (a) a default shall be cured, (b) Landlord shall be compensated for its
damages arising from any breach of this Lease and (c) future performance of Tenant's obligations under this Lease shall occur,
then such adequate assurances shall include any or all of the following, as designated by Landlord in its sole and absolute discretion:
(i) those acts specified in the Bankruptcy Code or other Applicable Laws as included within the meaning of "adequate assurance,"
even if this Lease does not concern a facility described in such Applicable Laws; (ii) a prompt cash payment to compensate Landlord
for any monetary defaults or actual damages arising directly from a breach of this Lease; (iii) a cash deposit in an amount at
least equal to the then-current amount of the Security Deposit; or (iv) the assumption or assignment of all of Tenant's interest
and obligations under this Lease.

 

    	 	26	 

     

    

 

25.         Brokers.
Tenant represents and warrants that it has had no dealings with any real estate broker or agent in connection with the negotiation
of this Lease and that it knows of no real estate broker or agent that is or might be entitled to a commission in connection with
this Lease. Tenant agrees to indemnify, save, defend (at Landlord's option and with counsel reasonably acceptable to Landlord)
and hold the Landlord Indemnitees harmless from any and all cost or liability for compensation claimed by any broker or agent
employed or engaged by Tenant or claiming to have been employed or engaged by Tenant. The provisions of this Section 25
shall survive the expiration or termination of this Lease.

 

27.         Definition
of Landlord. With regard to obligations imposed upon Landlord pursuant to this Lease, the term "Landlord,"
as used in this Lease, shall refer only to Landlord or Landlord's then-current successor-in-interest. In the event of any transfer,
assignment or conveyance of Landlord's interest in this Lease or in Landlord's fee title to or leasehold interest in the Property,
as applicable, Landlord herein named (and in case of any subsequent transfers or conveyances, the subsequent Landlord) shall be
automatically freed and relieved, from and after the date of such transfer, assignment or conveyance, from all liability for the
performance of any covenants or obligations contained in this Lease thereafter to be performed by Landlord and, without further
agreement, the transferee, assignee or conveyee of Landlord's in this Lease or in Landlord's fee title to or leasehold interest
in the Property, as applicable, shall be deemed to have assumed and agreed to observe and perform any and all covenants and obligations
of Landlord hereunder during the tenure of its interest in the Lease or the Property. Landlord or any subsequent Landlord may transfer
its interest in the Premises or this Lease without Tenant's consent.

 

28.         Limitation
of Landlord's Liability. If Landlord is in default under this Lease and, as a consequence, Tenant recovers a monetary judgment
against Landlord, the judgment shall be satisfied only out of (a) the proceeds of sale received on execution of the judgment and
levy against the right, title and interest of Landlord in the Premises, (b) rent or other income from such real property receivable
by Landlord or (c) the consideration received by Landlord from the sale, financing, refinancing or other disposition of all or
any part of Landlord's right, title or interest in the Premises. Neither Landlord nor any of its affiliates, nor any of their respective
partners, shareholders, directors, officers, employees, members or agents shall be personally liable for Landlord's obligations
or any deficiency under this Lease. No partner, shareholder, director, officer, employee, member or agent of Landlord or any of
its affiliates shall be sued or named as a party in any suit or action. No partner, shareholder, director, officer, employee, member
or agent of Landlord or any of its affiliates shall be required to answer or otherwise plead to any service of process, and no
judgment shall be taken or writ of execution levied against any partner, shareholder, director, officer, employee, member or agent
of Landlord or any of its affiliates. Each of the covenants and agreements of this Section 28 shall be applicable to any
covenant or agreement either expressly contained in this Lease or imposed by Applicable Laws and shall survive the expiration or
earlier termination of this Lease.

 

29.         Control
by Landlord. Landlord reserves full control over the Premises to the extent not inconsistent with Tenant's enjoyment of the
same as provided by this Lease and Tenant’s rights under this Lease; provided, however, that such rights shall be
exercised in a way that does not materially adversely affect Tenant's beneficial use and occupancy of the Premises, including the
Permitted Use and Tenant's access to the Premises, nor violate the AMMA. Tenant shall, at Landlord's request, promptly execute
such further documents as may be reasonably appropriate to assist Landlord in the performance of its obligations hereunder; provided
that Tenant need not execute any document that creates additional liability for Tenant or that deprives Tenant of the quiet enjoyment
and use of the Premises as provided for in this Lease. Landlord may, upon forty-eight (48) hours' prior notice (which may be oral
or by email to the office manager or other Tenant-designated individual at the Premises; but provided that no time restrictions
shall apply or advance notice be required if an Emergency necessitates immediate entry), enter the Premises upon normal business
hours to (v) inspect the same and to determine whether Tenant is in compliance with its obligations hereunder, (w) supply any service
Landlord is required to provide hereunder, (x) post notices of nonresponsibility and (y) show the Premises to prospective tenants
during the final year of the Term and current and prospective purchasers and lenders at any time (in all situations provided that
Landlord's personnel are accompanied by Tenants' authorized personnel in sensitive areas of the Premises). Landlord and parties
accompanying Landlord must be accompanied at all times, by an authorized representative of Tenant with a Dispensary Agent Registry
Card (“Dispensary Card”), in compliance with the AMMA. For purposes herein this Lease, an “Emergency”
constitutes a fire or police emergency, which presents an imminent threat to the Premises, the occupants of the Premises, or an
event that may reasonably result in extensive damage to the Premises. In no event shall Tenant's Rent abate as a result of Landlord's
activities pursuant to this Section 29; provided, however, that all such activities shall be conducted in such a
manner so as to cause as little interference to Tenant as is reasonably possible. If an Emergency necessitates immediate access
to the Premises, Landlord may use whatever force is necessary to enter the Premises, and any such entry to the Premises shall not
constitute a forcible or unlawful entry to the Premises, a detainer of the Premises, or an eviction of Tenant from the Premises
or any portion thereof.

 

    	 	27	 

     

    

 

30.         Joint
and Several Obligations. If more than one person or entity executes this Lease as Tenant, then (i) each of them is jointly
and severally liable for the keeping, observing and performing of all of the terms, covenants, conditions, provisions and agreements
of this Lease to be kept, observed or performed by Tenant, and such terms, covenants, conditions, provisions and agreements shall
be binding with the same force and effect upon each and all of the persons executing this Lease as Tenant; and (ii) the term "Tenant,"
as used in this Lease, shall mean and include each of them, jointly and severally. The act of, notice from/to, refund to, or signature
of any one or more of them with respect to the tenancy under this Lease, including any renewal, extension, expiration, termination
or modification of this Lease, shall be binding upon each and all of the persons executing this Lease as Tenant with the same force
and effect as if each and all of them had so acted, so given or received such notice or refund, or so signed.

 

31.         Representations.
Each of Tenant and Landlord guarantees, warrants and represents that (a) such party is duly incorporated or otherwise established
or formed and validly existing under the laws of its state of incorporation, establishment or formation, (b) such party is duly
qualified to do business in the state in which the Property is located, (c) such party has full corporate, partnership, trust,
association or other appropriate power and authority to enter into this Lease and to perform its obligations hereunder, (d) each
person (and all of the persons if more than one signs) signing this Lease on behalf of such party is duly and validly authorized
to do so and (e) neither (i) the execution, delivery or performance of this Lease nor (ii) the consummation of the transactions
contemplated hereby will violate or conflict with any provision of documents or instruments under which such party is constituted
or to which such party is a party. In addition, Tenant guarantees, warrants and represents that none of (x) it, (y) its affiliates
or partners nor (z) to the best of its knowledge, its members, shareholders or other equity owners or any of their respective employees,
officers, directors, representatives or agents is a person or entity with whom U.S. persons or entities are restricted from doing
business under regulations of the Office of Foreign Asset Control ("OFAC") of the Department of the Treasury (including
those named on OFAC's Specially Designated and Blocked Persons List) or under any statute, executive order (including the September
24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support
Terrorism) or other similar governmental action.

 

32.         Confidentiality.
Tenant shall keep the terms and conditions of this Lease confidential and shall not (a) disclose to any third party any terms or
conditions of this Lease or any other Lease-related document (including subleases, assignments, work letters, construction contracts,
letters of credit, subordination agreements, non-disturbance agreements, brokerage agreements or estoppels) or (b) provide to any
third party an original or copy of this Lease (or any Lease-related document). Notwithstanding the foregoing, confidential information
under this Section may be released by Landlord or Tenant under the following circumstances: (x) if required by Applicable Laws
or in any judicial proceeding; provided that the releasing party has given the other party reasonable notice of such requirement,
if feasible, (y) to a party's attorneys, investors, accountants, brokers and other bona fide consultants or advisers; provided
such third parties agree to be bound by this Section or (z) to bona fide prospective assignees or subtenants of this Lease; provided
they agree in writing to be bound by this Section.

 

33.         Notices.
Except as otherwise stated in this Lease, any notice, consent, demand, invoice, statement or other communication required or permitted
to be given hereunder shall be in writing and shall be given by (a) personal delivery, (b) overnight delivery with a reputable
international overnight delivery service, such as FedEx, or (c) facsimile or email transmission, so long as such transmission is
followed within one (1) business day by delivery utilizing one of the methods described in Subsection 33(a) or (b).
Any such notice, consent, demand, invoice, statement or other communication shall be deemed delivered (x) upon receipt, if given
in accordance with Subsection 33(a); (y) one (1) business day after deposit with a reputable international overnight delivery
service, if given if given in accordance with Subsection 33(b); or (z) upon transmission, if given in accordance with Subsection
33(c). Except as otherwise stated in this Lease, any notice, consent, demand, invoice, statement or other communication required
or permitted to be given pursuant to this Lease shall be addressed to Tenant at the Premises, or to Landlord or Tenant at the addresses
shown in Section 2. Either party may, by notice to the other given pursuant to this Section, specify additional or different
addresses for notice purposes.

 

34.         Guaranties.
In the event that any entity affiliated with Tenant is formed after the Execution Date which entity conducts business in the cannabis
industry in the state of Arizona (each, a "New Guarantor"), Tenant shall promptly cause such New Guarantor to
execute a Guaranty in the form attached hereto as Exhibit D and deliver such executed Guaranty to Landlord, unless otherwise
expressly agreed to by Landlord. Any failure by Tenant to provide such Guaranty within thirty (30) days following the formation
of such New Guarantor shall be deemed a material default under this Lease. The obligations of each Guarantor shall be joint and
several and Tenant shall cause each Guarantor to execute and deliver such further documentation as may be reasonably required to
confirm such Guarantor's full and unconditional guaranty of Tenant's obligations under this Lease.

 

    	 	28	 

     

    

 

		35.	Miscellaneous.

 

35.1.          To
induce Landlord to enter into this Lease, Tenant agrees to timely provide Landlord with such information and financial statements
of the Tenant and any Guarantor requested by Landlord that are required to be included in any filings to be made by Landlord or
Landlord's affiliates with the U.S. Securities and Exchange Commission (the "SEC"), subject to Tenant's and any
Guarantor's right to seek confidential treatment of such disclosure by appropriate filings and/or action before the SEC. Such financial
statements of Tenant and Guarantor shall include consolidated balance sheets, statements of operations, statements of cash flows
and statements of stockholders equity, and related footnotes, prepared in accordance with U.S. generally accepted accounting principles
and shall be reviewed or audited by Tenant's or Guarantor's independent auditors (within the requirements of Regulation S-X under
the rules and regulations of the SEC, as interpreted by the staff of the SEC), as reasonably requested by the Landlord and required
by the SEC. Tenant further agrees that to the extent not previously delivered by Tenant and Guarantor per Landlord's request in
connection with any required filings with the SEC, within fifteen (15) days following Landlord's written request (on no more frequently
than a quarterly basis), Tenant shall provide, or cause any Guarantor to provide, Landlord with such financial statements and information
as may be reasonably requested by Landlord. Tenant represents and warrants that all financial statements, records and information
furnished by Tenant to Landlord in connection with this Lease are true, correct and complete in all material respects and that
all financial statements, records and information furnished by each Guarantor to Landlord in connection with this Lease are true,
correct and complete in all material respects. The provisions of this Section shall not apply to Tenant or any Guarantor (as applicable)
during any time period that Tenant or such Guarantor is a corporation whose shares are traded on any nationally recognized stock
exchange. Landlord shall keep the financial statements of Tenant and Guarantor confidential and shall not (a) disclose them to
any third party or (b) provide to any third party an original or copy of them. Notwithstanding the foregoing, confidential information
under this Section may be released by Landlord under the following circumstances: (x) if required by Applicable Laws or in any
judicial proceeding; provided that Landlord has given Tenant reasonable notice of such requirement, if feasible, (y) to
Landlord's attorneys, investors, accountants, brokers and other bona fide consultants or advisers; provided Landlord instructs
such third parties not to disclose such information in breach of Landlord's obligations under this Section; or (z) if required
to be included in any filings to be made by Landlord or Landlord's affiliates with the SEC.

 

35.2.          The
terms of this Lease are intended by the parties as a final, complete and exclusive expression of their agreement with respect to
the terms that are included herein, and may not be contradicted or supplemented by evidence of any other prior or contemporaneous
agreement.

 

35.3.          Neither
party shall record this Lease.

 

35.4.          Landlord
and Tenant have each participated in the drafting and negotiation of this Lease, and the language in all parts of this Lease shall
be in all cases construed as a whole according to its fair meaning and not strictly for or against either Landlord or Tenant.

 

35.5.          Except
as otherwise expressly set forth in this Lease, each party shall pay its own costs and expenses incurred in connection with this
Lease and such party's performance under this Lease; provided that, if either party commences an action, proceeding, demand,
claim, action, cause of action or suit against the other party arising out of or in connection with this Lease, then the substantially
prevailing party shall be reimbursed by the other party for all reasonable costs and expenses, including reasonable attorneys'
fees and expenses, incurred by the substantially prevailing party in such action, proceeding, demand, claim, action, cause of action
or suit, and in any appeal in connection therewith (regardless of whether the applicable action, proceeding, demand, claim, action,
cause of action, suit or appeal is voluntarily withdrawn or dismissed).

 

35.6.          Time
is of the essence with respect to the performance of every provision of this Lease.

 

35.7.          Each
provision of this Lease performable by Tenant shall be deemed both a covenant and a condition.

 

    	 	29	 

     

    

 

35.8.          Notwithstanding
anything to the contrary contained in this Lease, Tenant's obligations under this Lease are independent and shall not be conditioned
upon performance by Landlord.

 

35.9.          Whenever
consent or approval of either party is required, that party shall not unreasonably withhold, condition or delay such consent or
approval, except as may be expressly set forth to the contrary.

 

35.10.         Any
provision of this Lease that shall prove to be invalid, void or illegal shall in no way affect, impair or invalidate any other
provision hereof, and all other provisions of this Lease shall remain in full force and effect and shall be interpreted as if the
invalid, void or illegal provision did not exist.

 

35.11.         Each
of the covenants, conditions and agreements herein contained shall inure to the benefit of and shall apply to and be binding upon
the parties hereto and their respective heirs; legatees; devisees; executors; administrators; and permitted successors and assigns.
This Lease is for the sole benefit of the parties and their respective heirs, legatees, devisees, executors, administrators and
permitted successors and assigns, and nothing in this Lease shall give or be construed to give any other person or entity any legal
or equitable rights. Nothing in this Section shall in any way alter the provisions of this Lease restricting assignment or subletting.

 

35.12.         This
Lease shall be governed by, construed and enforced in accordance with the AMMA and the laws of the state in which the Premises
are located, without regard to such state's conflict of law principles.

 

35.13.         Landlord
covenants that Tenant, upon paying the Rent and performing its obligations contained in this Lease, may peacefully and quietly
have, hold and enjoy the Premises, free from any claim by Landlord or persons claiming under Landlord, but subject to all of the
terms and provisions hereof, provisions of Applicable Laws and rights of record to which this Lease is or may become subordinate.
This covenant is in lieu of any other quiet enjoyment covenant, either express or implied.

 

35.14.         Each
of Tenant and Landlord guarantees, warrants and represents to the other party that the individual or individuals signing this Lease
have the power, authority and legal capacity to sign this Lease on behalf of and to bind all entities, corporations, partnerships,
limited liability companies, joint venturers or other organizations and entities on whose behalf such individual or individuals
have signed.

 

35.15.         This
Lease may be executed in one or more counterparts, each of which, when taken together, shall constitute one and the same document.

 

35.16.         No
provision of this Lease may be modified, amended or supplemented except by an agreement in writing signed by Landlord and Tenant.

 

35.17.         No
waiver of any term, covenant or condition of this Lease shall be binding upon Landlord unless executed in writing by Landlord.
The waiver by Landlord of any breach or default of any term, covenant or condition contained in this Lease shall not be deemed
to be a waiver of any preceding or subsequent breach or default of such term, covenant or condition or any other term, covenant
or condition of this Lease.

 

35.18.         To
the extent permitted by Applicable Laws, the parties waive trial by jury in any action, proceeding or counterclaim brought by the
other party hereto related to matters arising out of or in any way connected with this Lease; the relationship between Landlord
and Tenant; Tenant's use or occupancy of the Premises; or any claim of injury or damage related to this Lease or the Premises.

 

35.19         The
parties hereby acknowledge that they are aware of and fully understand that despite the AMMA and the terms and conditions of this
Lease, Arizona Cannabis cultivators, transporters, distributors or possessors may still be arrested by federal officers and prosecuted
under Federal law. In the event of Federal arrest, seizure or prosecution action associated with the parties’ activities
described herein, provided that such parties have otherwise complied with the Applicable Laws and their respective obligations
under this Lease, the parties hereby agree to hold each other harmless and agree to be individually responsible for any attorneys’
fees associated with defending such actions. The parties also hereby agree to waive illegality as a defense to any contract enforcement
action. For the avoidance of doubt, this is not intended in any way to discharge Tenant from its obligations under the Lease, including
payment of Rent, or to otherwise limit Landlord’s remedies in the event of a default by Tenant under the Lease.

 

    	 	30	 

     

    

 

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

 

	LANDLORD:	 
	 	 
	IIP-AZ 1 LLC,	 
	a Delaware limited liability company	 
	 	 	 
	By:	/s/ Catherine Hastings	 
	Name:	Catherine Hastings	 
	Title:	Chief Financial Officer, Chief Accounting Officer and Treasurer	 

 

	TENANT:	 
	 	 
	SUN GROWN SOLUTIONS, LLC,	 
	an Arizona limited liability company	 
	 	 
	By:	Green Thumb Management, LLC, a Delaware limited liability company, as Member
	 	 	 

	 	By: 	/s/ Randy Smith	 
	 	Name: Randy Smith	 
	 	Its: President	 

 

    	 	31	 

     

    

 

EXHIBIT A

 

PREMISES

 

PARCEL I:

 

That portion of the North half of Section 20,
Township 12, South, Range 24 East of the Gila and Salt River Base and Meridian, Cochise County, State of Arizona, more particularly
described as follows: COMMENCING at 2.5” brass cap in handhole at the Northwest corner of said Section 20, a 2.5” brass
cap at the West quarter corner of Section 20 lies South 00°00’00” West, and is the basis of bearings for this description;
thence along the West line thereof, South 00°00’00” West, (Northward, record) 193.20 feet to a spike and brass
disc stamped RLS 51967 in pavement; thence along the South line of land described in deed recorded in Document No. 0505-17131,
South 89°53’40” East, (Westward, record), 50.00 feet to a 1⁄2” rebar with plastic cap stamped RLS 51967,
and TRUE POINT OF BEGINNING; thence continuing South 89°53’40” East, 236.00 feet to a 1⁄2” rebar with
plastic cap stamped RLS 51967; thence South 00°00’00” West, (Northwest, record) 40.00 feet to a 1⁄2”
rebar with plastic cap stamped RLS 51967; thence South 89°53’22” East, 264.65 feet, (Westward, 264.80 feet, record)
to a 1.5” aluminum cap stamped RLS 13569; thence along the East line thereof, North 00°04’40” East, 233.22
feet (Southward, 233.20 feet, record) to a 1⁄2” rebar with brass disc stamped RLS 24525 on the North line of said North
half; thence along said North line, South 89°53’40” East, 277.17 feet to a 1⁄2” rebar with plastic cap
stamped RLS 51967; thence leaving said line, South 00°00’00” West, 121.36 feet to a 1⁄2” rebar with
plastic cap stamped RLS 51967; thence South 89°53’40” East, 103.15 feet to a 1⁄2” rebar with plastic
cap stamped RLS 51967; thence North 00°00’00” East, 121.36 feet to a 1⁄2” rebar with plastic cap stamped
RLS 51967 on the North line of said North half; thence along said line, South 89°53’40” East, 851.64 feet to a
1⁄2” rebar with plastic cap stamped RLS 51967; thence leaving said line, South 00°00’00” West, 354.29
feet to a 1⁄2” rebar with plastic cap stamped RLS 51967; thence South 89°53’40” East, 146.13 feet to
a 1⁄2” rebar with plastic cap stamped RLS 51967; thence North 00°00’00” East, 354.29 feet to a 1⁄2”
rebar with plastic cap stamped RLS 51967 on the North line of said North half; thence along said line, South 89°53’40”
East, 701.93 feet to a 2.5” GLO brass capped monument at the North quarter corner of said Section 20; thence along the East
line of the Northwest quarter of said Section 20, South 00°02’11” East, 1305.03 feet to a 1⁄2” rebar
with plastic cap stamped RLS 51967; thence leaving said East line, North 89°53’40” West, 1942.00 feet to a 1⁄2”
rebar with plastic cap stamped RLS 16116, at the Southeast corner of a 6.07 acre parcel of land shown on recorded Survey Map Book
41, page 57; thence along the East line there, North 00°00’23” East, 445.11 feet (North 00°03’39”
East, 445.00 feet, record) to a 1⁄2” rebar with plastic cap stamped RLS 16116 per Survey Map Book 41, page 57; thence
along the North line thereof, North 89°55’10” West, 640.25 feet, (South 89°50’31” East, 640.00
feet) to a 1⁄2” rebar with plastic cap stamped RLS 16116 per Survey Map Book 41, page 57, on the East right-of-way line
of Fort Grant Road; thence North 00°01’58” East, 667.00 feet to the TRUE POINT OF BEGINNING; EXCEPT 1⁄2 of
all oil, gas and mineral rights as reserved in Deed recorded in Docket 58, page 385, records of Cochise County, Arizona; and EXCEPT
one-half of mineral rights as reserved in Deed recorded in Docket 1194, page 94, records of Cochise County, Arizona.

 

PARCEL II:

 

A 60.00 foot wide access and utilities easement
over, under and across a portion of the North half of Section 20, Township 12 South, Range 24 East of the Gila and Salt River Base
and Meridian, Cochise County, Arizona the centerline of which is more particularly described as follows: COMMENCING at 2.5”
brass cap in handhole at the Northwest corner of said Section 20, a 2.5” brass cap at the West quarter corner of Section
20 lies South 00°00’00” West, and is the basis of bearings for this description; thence along the West line there
of South 00°00’00” West, a distance of 1,334.66 feet; thence leaving the West line, South 89°51’50”
East, a distance of 50.00 feet to a point on the East right of way line of Fort Grant Road, according to record Document No. 9705-11508,
and TRUE POINT OF BEGINNING; thence leaving said right-of-way line, South 89°51’50” East, 639.75 feet; thence South
89°53’40” East, 1,067.05 feet to the POINT OF TERMINUS; The sidelines shall be foreshortened or lengthened to terminate
Westerly on a line bearing North 00°00’00” East through said true point of beginning, and Easterly on a line bearing
South 00°00’00” East through said point of terminus; EXCEPT any portion lying within Parcel I herein.

 

     

     

    

 

EXHIBIT B

 

TENANT'S PERSONAL PROPERTY

 

Excluded Property, as defined and listed in
the Purchase Agreement.

 

     

     

    

 

EXHIBIT C

 

FORM OF TENANT ESTOPPEL
CERTIFICATE

 

		To:	IIP AZ-1 LLC

11440 West Bernardo Court, Suite
220

San Diego, California 92127

Attention: General Counsel

 

		Re:	The premises (the "Premises") located at 5900 West Greenhouse Drive, Willcox,
Arizona (the "Property")

 

The undersigned tenant ("Tenant")
hereby certifies to you as follows:

 

1.          Tenant
is a tenant at the Property under a lease (the "Lease") for the Premises dated as of December 15, 2017. The Lease
has not been cancelled, modified, assigned, extended or amended [except as follows: [_______]], and there are no other agreements,
written or oral, affecting or relating to Tenant's lease of the Premises or any other space at the Property. The lease term expires
on [_______], 20[__].

 

2.          Tenant
took possession of the Premises, currently consisting of [_______] square feet, on [_______], 20[__], and commenced to pay rent
on [_______], 20[__]. Tenant has full possession of the Premises, has not assigned the Lease or sublet any part of the Premises,
and does not hold the Premises under an assignment or sublease [, except as follows: [_______]].

 

3.          All
base rent, rent escalations and additional rent under the Lease have been paid through [_______], 20[__]. There is no prepaid rent
[, except $[_______]] [, and the amount of security deposit is $[_______] [in cash] [OR][in the form of a letter of credit]]. Tenant
currently has no right to any future rent abatement under the Lease.

 

4.          Base
rent is currently payable in the amount of $[_______] per month.

 

5.          All
work to be performed for Tenant under the Lease has been performed as required under the Lease and has been accepted by Tenant
[, except [_______]], and all allowances to be paid to Tenant, including allowances for tenant improvements, moving expenses or
other items, have been paid.

 

6.          The
Lease is in full force and effect, free from default and free from any event that could become a default under the Lease, and Tenant
has no claims against the landlord or offsets or defenses against rent, and there are no disputes with the landlord. Tenant has
received no notice of prior sale, transfer, assignment, hypothecation or pledge of the Lease or of the rents payable thereunder
[, except [_______]].

 

7.          Tenant
has no rights or options to purchase the Property.

 

8.          To
Tenant's knowledge, no hazardous wastes have been generated, treated, stored or disposed of by or on behalf of Tenant in, on or
around the Premises in violation of any environmental laws.

 

9.          The
undersigned has executed this Estoppel Certificate with the knowledge and understanding that [INSERT NAME OF LANDLORD, PURCHASER
OR LENDER, AS APPROPRIATE] or its assignee is [acquiring the Property/making a loan secured by the Property] in reliance on this
certificate and that the undersigned shall be bound by this certificate. The statements contained herein may be relied upon by
[INSERT NAME OF PURCHASER OR LENDER, AS APPROPRIATE], [LANDLORD], IIP Operating Partnership, LP, Innovative Industrial Properties,
Inc., and any [other] mortgagee of the Property and their respective successors and assigns.

 

[Signature page follows]

 

     

     

    

 

Any capitalized terms not
defined herein shall have the respective meanings given in the Lease.

 

Dated this [____] day of [_______], 20[__].

 

[_______],

a [_______]

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

     

     

    

 

EXHIBIT D

 

FORM OF

 

GUARANTY OF
LEASE

 

This Guaranty of Lease
("Guaranty") is executed effective on the ____ day of [_______], 20[__], by [_______], a [_______] ("Guarantor"),
whose address for notices is [________________], in favor of IIP-AZ 1 LLC, a Delaware limited liability company ("Landlord"),
whose address for notices is 11440 West Bernardo Court, Suite 220, San Diego, California 92127, Attn: General Counsel.

 

For good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Guarantor covenants and agrees as follows:

 

1.            Recitals.
This Guaranty is made with reference to the following recitals of facts which constitute a material part of this Guaranty:

 

(a)          Landlord,
as Landlord, and Sun Grown Solutions, LLC, an Arizona limited liability company, as Tenant ("Tenant"), entered
into that certain Lease dated as of December 15, 2017 (the "Lease"), with respect to certain space in the building
located at 5900 West Greenhouse Drive, Willcox, Arizona, as more particularly described in the Lease (the "Leased Premises")
and pursuant to Exhibit F attached thereto.

 

(b)          Guarantor
is [DESCRIBE RELATIONSHIP OF GUARANTOR TO TENANT] and is therefore receiving a substantial benefit for executing this Guaranty.

 

(c)          Landlord
would not have entered into the Lease with Tenant without having received the Guaranty executed by Guarantor as an inducement to
Landlord.

 

(d)          By
this Guaranty, Guarantor intends to absolutely, unconditionally and irrevocably guarantee the full, timely, and complete (i) payment
of all rent and other sums required to be paid by Tenant under the Lease and any other indebtedness of Tenant, (ii) performance
of all other terms, covenants, conditions and obligations of Tenant arising out of the Lease and all foreseeable and unforeseeable
damages that may arise as a foreseeable or unforeseeable consequence of any non-payment, non-performance or non-observance of,
or non-compliance with, any of the terms, covenants, conditions or other obligations described in the Lease (including, without
limitation, all attorneys' fees and disbursements and all litigation costs and expenses incurred or payable by Landlord or for
which Landlord may be responsible or liable, or caused by any such default), and (iii) payment of any and all expenses (including
reasonable attorneys' fees and expenses and litigation expenses) incurred by Landlord in enforcing any of the rights under the
Lease or this Guaranty within five (5) days after Landlord's demand thereafter (collectively, the "Guaranteed Obligations").

 

     

     

    

 

2.            Guaranty.
From and after the Execution Date (as such term is defined under the Lease), Guarantor absolutely, unconditionally and irrevocably
guarantees, as principal obligor and not merely as surety, to Landlord, the full, timely and unconditional payment and performance,
of the Guaranteed Obligations strictly in accordance with the terms of the Lease, as such Guaranteed Obligations may be modified,
amended, extended or renewed from time to time. This is a Guaranty of payment and performance and not merely of collection. Guarantor
agrees that Guarantor is primarily liable for and responsible for the payment and performance of the Guaranteed Obligations. Guarantor
shall be bound by all of the provisions, terms, conditions, restrictions and limitations contained in the Lease which are to be
observed or performed by Tenant, the same as if Guarantor was named therein as Tenant with joint and several liability with Tenant,
and any remedies that Landlord has under the Lease against Tenant shall apply to Guarantor as well. If Tenant defaults in any Guaranteed
Obligation under the Lease, Guarantor shall in lawful money of the United States, pay to Landlord on demand the amount due and
owing under the Lease. Guarantor waives any rights to notices of acceptance, modifications, amendment, extension or breach of the
Lease. If Guarantor is a natural person, it is expressly agreed that this guaranty shall survive the death of such guarantor and
shall continue in effect. The obligations of Guarantor under this Guaranty are independent of the obligations of Tenant or any
other guarantor. Guarantor acknowledges that this Guaranty and Guarantor's obligations and liabilities under this Guaranty are
and shall at all times continue to be absolute and unconditional in all respects and shall be the separate and independent undertaking
of Guarantor without regard to the genuineness, validity, legality or enforceability of the Lease, and shall at all times be valid
and enforceable irrespective of any other agreements or circumstances of any nature whatsoever which might otherwise constitute
a defense to this Guaranty and the obligations and liabilities of Guarantor under this Guaranty or the obligations or liabilities
of any other person or entity (including, without limitation, Tenant) relating to this Guaranty or the obligations or liabilities
of Guarantor hereunder or otherwise with respect to the Lease or to Tenant. Guarantor hereby absolutely, unconditionally and irrevocably
waives any and all rights it may have to assert any defense, set-off, counterclaim or cross-claim of any nature whatsoever with
respect to this Guaranty or the obligations or liabilities of Guarantor under this Guaranty or the obligations or liabilities of
any other person or entity (including, without limitation, Tenant) relating to this Guaranty or the obligations or liabilities
of Guarantor under this Guaranty or otherwise with respect to the Lease, in any action or proceeding brought by the holder hereof
to enforce the obligations or liabilities of Guarantor under this Guaranty. This Guaranty sets forth the entire agreement and understanding
of Landlord and Guarantor, and Guarantor acknowledges that no oral or other agreements, understandings, representations or warranties
exist with respect to this Guaranty or with respect to the obligations or liabilities of Guarantor under this Guaranty. The obligations
of Guarantor under this Guaranty shall be continuing and irrevocable (a) during any period of time when the liability of Tenant
under the Lease continues, and (b) until all of the Guaranteed Obligations have been fully discharged by payment, performance or
compliance. If at any time all or any part of any payment received by Landlord from Tenant or Guarantor or any other person under
or with respect to the Lease or this Guaranty has been refunded or rescinded pursuant to any court order, or declared to be fraudulent
or preferential, or are set aside or otherwise are required to be repaid to Tenant, its estate, trustee, receiver or any other
party, including as a result of the insolvency, bankruptcy or reorganization of Tenant or any other party (an "Invalidated
Payment"), then Guarantor's obligations under the Guaranty shall, to the extent of such Invalidated Payment be reinstated
and deemed to have continued in existence as of the date that the original payment occurred. This Guaranty shall not be affected
or limited in any manner by whether Tenant may be liable, with respect to the Guaranteed Obligations individually, jointly with
other primarily, or secondarily.

 

3.            No
Impairment of Guaranteed Obligations. Guarantor further agrees that Guarantor's liability for the Guaranteed Obligations shall
in no way be released, discharged, impaired or affected or subject to any counterclaim, setoff or deduction by (a) any waiver,
consent, extension, indulgence, compromise, release, departure from or other action or inaction of Landlord under or in respect
of the Lease or this Guaranty, or any obligation or liability of Tenant, or any exercise or non-exercise of any right, remedy,
power or privilege under or in respect to the Lease or this Guaranty, (b) any change in the time, manner or place of payment or
performance of the Guaranteed Obligations, (c) the acceptance by Landlord of any additional security or any increase, substitution
or change therein, (d) the release by Landlord of any security or any withdrawal thereof or decrease therein, (e) any assignment
of the Lease or any subletting of all or any portion of the Leased Premises (with or without Landlord's consent), (f) any holdover
by Tenant beyond the term of the Lease (g) any termination of the Lease, (h) any release or discharge of Tenant in any bankruptcy,
receivership or other similar proceedings, (i) the impairment, limitation or modification of the liability of Tenant or the estate
of Tenant in bankruptcy or of any remedy for the enforcement of Tenant's liability under the Lease resulting from the operation
of any present or future provisions of any bankruptcy code or other statute or from the decision in any court, or the rejection
or disaffirmance of the Lease in any such proceedings, (j) any merger, consolidation, reorganization or similar transaction involving
Tenant, even if Tenant ceases to exist as a result of such transaction, (k) the change in the corporate relationship between Tenant
and Guarantor or any termination of such relationship, (l) any change in the direct or indirect ownership of all or any part of
the shares in Tenant, or (m) to the extent permitted under applicable law, any other occurrence or circumstance whatsoever, whether
similar or dissimilar to the foregoing, which might otherwise constitute a legal or equitable defense or discharge of the liabilities
of Guarantor or which might otherwise limit recourse against Guarantor. Guarantor further understands and agrees that Landlord
may at any time enter into agreements with Tenant to amend and modify the Lease, and may waive or release any provision or provisions
of the Lease, and, with reference to such instruments, may make and enter into any such agreement or agreements as Landlord and
Tenant may deem proper and desirable, without in any manner impairing or affecting this Guaranty or any of Landlord's rights hereunder
or Guarantor's obligations hereunder, unless otherwise agreed in writing thereunder or under the Lease.

 

     

     

    

 

4.           Remedies.

 

a)        If
Tenant defaults with respect to the Guaranteed Obligations, and if Guarantor does not fulfill Tenant's obligations immediately
upon its receipt of written notice of such default from Landlord, Landlord may at its election proceed immediately against Guarantor,
Tenant, or any combination of Tenant, Guarantor, and/or any other guarantor. It is not necessary for Landlord, in order to enforce
payment and performance by Guarantor under this Guaranty, first or contemporaneously to institute suit or exhaust remedies against
Tenant or other liable for any of the Guaranteed Obligations or to enforce rights against any collateral securing any of it. Guarantor
hereby waives any right to require Landlord to join Tenant in any action brought hereunder or to commence any action against or
obtain any judgment against Tenant or to pursue any other remedy or enforce any other right. If any portion of the Guaranteed Obligations
terminates and Landlord continues to have any rights that it may enforce against Tenant under the Lease after such termination,
then Landlord may at its election enforce such rights against Guarantor. Unless and until all Guaranteed Obligations have been
fully satisfied, Guarantor shall not be released from its obligations under this Guaranty irrespective of: (i) the exercise (or
failure to exercise) by Landlord of any of Landlord's rights or remedies (including, without limitation, compromise or adjustment
of the Guaranteed Obligations or any part thereof); or (ii) any release by Landlord in favor of Tenant regarding the fulfillment
by Tenant of any obligation under the Lease.

 

b)        Notwithstanding
anything in the foregoing to the contrary, Guarantor hereby covenants and agrees to and with Landlord that Guarantor may be joined
in any action by or against Tenant in connection with the Lease. Guarantor also agrees that, in any jurisdiction, it will be conclusively
bound by the judgment in any such action by or against Tenant (wherever brought) as if Guarantor were a party to such action even
though Guarantor is not joined as a party in such action.

 

5.            Waivers.
With the exception of the defense of prior payment, performance or compliance by Tenant or Guarantor of or with the Guaranteed
Obligations which Guarantor is called upon to pay or perform, or the defense that Landlord's claim against Guarantor is barred
by the applicable statute of limitations, Guarantor hereby waives and releases all defenses of the law of guaranty or suretyship
to the extent permitted by law.

 

6.            Rights
Cumulative. All rights, powers and remedies of Landlord under this Guaranty shall be cumulative and in addition to all rights,
powers and remedies given to Landlord by law.

 

7.            Representations
and Warranties. Guarantor hereby represents and warrants that (a) Guarantor has goods and net worth that are sufficient to
enable Guarantor to promptly perform all of the Guaranteed Obligations as and when they are due; (b) Landlord has made no representation
to Guarantor as to the creditworthiness or financial condition of Tenant; (c) Guarantor has full power to execute, deliver and
carry out the terms and provisions of this Guaranty and has taken all necessary action to authorize the execution, delivery and
performance of this Guaranty; (d) Guarantor's execution and delivery of, and the performance of its obligations under, this Guaranty
does not conflict with or violate any of Guarantor's organizational documents, or any contract, agreement or decree which Guarantor
is a party to or which is binding on Guarantor; (e) the individual executing this Guaranty on behalf of Guarantor has the authority
to bind Guarantor to the terms and conditions of this Guaranty; (f) Guarantor has been represented by counsel of its choice in
connection with this Guaranty; (g) this Guaranty when executed and delivered shall constitute the legal, valid and binding obligations
of Guarantor enforceable against Guarantor in accordance with its terms; and (h) there is no action, suit, or proceeding pending
or, to the knowledge of Guarantor, threatened against Guarantor before or by any governmental authority which questions the validity
or enforceability of, or Guarantor's ability to perform under, this Guaranty.

 

8.            Subordination.
In the event of Tenant's insolvency or the disposition of the assets of Tenant, through bankruptcy, by an assignment for the benefit
of creditors, by voluntary liquidation, or otherwise, the assets of Tenant applicable to the payment of all claims of Landlord
and/or Guarantor shall be paid to Landlord and shall be first applied by Landlord to the Guaranteed Obligations. Any indebtedness
of Tenant now or hereafter held by Guarantor, whether as original creditor or assignee or by way of subrogation, restitution, reimbursement,
indemnification or otherwise, is hereby subordinated in right of payment to the Guaranteed Obligations. So long as an uncured event
of default exists under the Lease, (a) at Landlord's written request, Guarantor shall cause Tenant to pay to Landlord all or any
part of any funds invested in or loaned to Tenant by Guarantor which Guarantor is entitled to withdraw or collect and (b) any such
indebtedness or other amount collected or received by Guarantor shall be held in trust for Landlord and shall forthwith be paid
over to Landlord to be credited and applied against the Guaranteed Obligations. Subject to the foregoing, Guarantor shall be entitled
to receive from Landlord any amounts that are, from time to time, due to Guarantor in the ordinary course of business. Until all
of Tenant's obligations under the Lease are fully performed, Guarantor shall have no right of subrogation against Tenant by reason
of any payments, acts or performance by Guarantor under this Guaranty. The parties also agree the provisions of Section 3.2.4
of the Lease shall be incorporated herein by reference.

 

     

     

    

 

9.            Governing
Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of Arizona, United States of
America, without regard to principles of conflicts of laws. TO THE FULLEST EXTENT PERMITTED BY LAW, GUARANTOR HEREBY UNCONDITIONALLY
AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS GUARANTY.

 

10.          Attorneys'
Fees. In the event any litigation or other proceeding ("Proceeding") is initiated by any party against any
other party to enforce this Guaranty, the prevailing party in such Proceeding shall be entitled to recover from the unsuccessful
party all costs, expenses, and actual reasonable attorneys' fees relating to or arising out of such Proceeding.

 

11.          Federal
Enforcement. Reference is hereby made to the provisions of Section 35.19 of the Lease, which are hereby incorporated herein
by reference.

 

12.          Modification.
This Guaranty may be modified only by a contract in writing executed by Guarantor and Landlord.

 

13.          Invalidity.
If any provision of the Guaranty shall be invalid or unenforceable, the remainder of this Guaranty shall not be affected by such
invalidity or unenforceability. In the event, and to the extent, that this Guaranty shall be held ineffective or unenforceable
by any court of competent jurisdiction, then Guarantor shall be deemed to be a tenant under the Lease with the same force and effect
as if Guarantor were expressly named as a co-tenant therein with joint and several liability.

 

14.          Successors
and Assigns. Unless otherwise agreed in writing or under the Lease, this Guaranty shall be binding upon and shall inure to
the benefit of the successors-in-interest and assigns of each party to this Guaranty.

 

15.          Notices.
Any notice, consent, demand, invoice, statement or other communication required or permitted to be given hereunder shall be in
writing and shall be given by (a) personal delivery, (b) overnight delivery with a reputable international overnight delivery service,
such as FedEx, or (c) facsimile or email transmission, so long as such transmission is followed within one (1) business day by
delivery utilizing one of the methods described in subsections (a) or (b). Any such notice, consent, demand, invoice, statement
or other communication shall be deemed delivered (x) upon receipt, if given in accordance with subsection (a); (y) one business
(1) day after deposit with a reputable international overnight delivery service, if given if given in accordance with subsection
(b); or (z) upon transmission, if given in accordance with subsection (c). Except as otherwise stated in this Guaranty, any notice,
consent, demand, invoice, statement or other communication required or permitted to be given pursuant to this Guaranty shall be
addressed to Guarantor or Landlord at the address set forth above in the introductory paragraph of this Guaranty. Either party
may, by notice to the other given pursuant to this Section, specify additional or different addresses for notice purposes.

 

16.          Waiver.
Any waiver of a breach or default under this Guaranty must be in a writing that is duly executed by Landlord and shall not be a
waiver of any other default concerning the same or any other provision of this Guaranty. No delay or omission in the exercise of
any right or remedy shall impair such right or remedy or be construed as a waiver.

 

17.          Withholding.
Unless otherwise agreed in the Lease, any and all payments by Guarantor to Landlord under this Guaranty shall be made free and
clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and all liabilities with respect thereto (collectively, "Taxes"). If Guarantor
shall be required by any applicable laws to deduct any Taxes from or in respect of any sum payable under this Guaranty to Landlord:
(a) the sum payable shall be increased as necessary so that after making all required deductions, the Landlord receives an amount
equal to the sum it would have received had no such deductions been made; (b) Guarantor shall make such deductions; and (c) Guarantor
shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable laws.

 

     

     

    

 

18.          Financial Condition of Tenant. Landlord shall have no obligation to disclose or discuss with Guarantor Landlord's assessment
of the financial condition of Tenant. Guarantor has adequate means to obtain information from Tenant on a continuing basis concerning
the financial condition of Tenant and its ability to perform its Guaranteed Obligations, and Guarantor assumes responsibility for
being and keeping informed of Tenant's financial condition and of all circumstances bearing upon the risk of Tenant's failure to
perform the Guaranteed Obligations.

 

19.          Bankruptcy.
So long as the Guaranteed Obligations remain outstanding, Guarantor shall not, without Landlord's prior written consent, commence
or join with any other person in commencing any bankruptcy or similar proceeding of or against Tenant. Guarantor's obligations
hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended or terminated by any bankruptcy or similar proceeding
(voluntary or involuntary) involving Tenant or by any defense that Tenant may have by reason of an order, decree or decision of
any court or administrative body resulting from any such proceeding. To the fullest extent permitted by law, Guarantor will permit
any trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar person to pay to Landlord
or allow the claim of Landlord in respect of any interest, fees, costs, expenses or other Guaranteed Obligations accruing or arising
after the date on which such case or proceeding is commenced.

 

20.          Conveyance
or Transfer. Guarantor shall not convey, sell, lease or transfer any of its properties or assets to any person or entity to
the extent that such conveyance, sale, lease or transfer could have a material adverse effect on Guarantor's ability to fulfill
any of the Guaranteed Obligations. To ensure the legal operation of the Premises in compliance with the AMMA, Landlord has authorized
Tenant to license the Premises to a Guarantor of the Lease that is duly awarded a Medical Marijuana Dispensary Registration Certificate
or other License pursuant to Section 7 of the Authorization for Use of the Premises attached as Exhibit “F”
to the Lease, subject to the terms and conditions of the Lease, including the terms and conditions of such Exhibit, for the sole
purpose of ensuring the Premises maintains the necessary approval to operate in compliance with the AMMA. However, nothing herein
is intended to limit the rights or remedies of Landlord pursuant to this Guaranty nor authorize Tenant to license the Premises
in a manner that would violate this Section 20.

 

21.          [NOTE:
ONLY WHERE GUARANTOR IS NOT A DIRECT OR INDIRECT PARENT OF TENANT: [Limitation on Obligations Guaranteed. 

 

(a)          Notwithstanding
any other provision hereof, the right of recovery against Guarantor under Section 2 shall not exceed $1.00 less than the
lowest amount that would render Guarantor's obligations under Section 2 void or voidable under applicable law, including, without
limitation, the Uniform Fraudulent Conveyance Act, Uniform Fraudulent Transfer Act or any similar foreign, federal or state law
to the extent applicable to the guaranty set forth herein and the obligations of Guarantor hereunder. To effectuate the foregoing,
the Guaranteed Obligations in respect of the guarantee set forth in Section 2 at any time shall be limited to the maximum amount
as would result in the Guaranteed Obligations with respect thereto not constituting a fraudulent transfer or conveyance after giving
full effect to the liability under such guarantee set forth in Section 2 and its related contribution rights, but before taking
into account any liabilities under any other guarantee by Guarantor. For purposes of the foregoing, all guarantees of Guarantor
other than the guarantee under Section 2 will be deemed to be enforceable and payable after the guaranty under Section 2. To the
fullest extent permitted by applicable law, this Section shall be for the benefit solely of creditors and representatives of creditors
of Guarantor and not for the benefit of Guarantor or the holders of any equity interest in Guarantor.

 

(b)          Guarantor
agrees that obligations may at any time and from time to time be incurred or permitted in an amount exceeding the maximum liability
of Guarantor under Section 2 without impairing the guarantee contained in Section 2 or affecting Landlord's rights
and remedies hereunder.]

 

22.         Financials.
To induce Landlord to enter into the Lease, Guarantor shall provide to Landlord all information as required to be provided by Tenant
and/or Guarantor pursuant to Section 35.1 of the Lease, subject to all conditions set forth in that Section.

 

     

     

    

  

23.         Joint
and Several Liability. Guarantor's liability under this Guaranty shall be joint and several with any and all other Guarantors
in accordance with the terms and conditions of the Lease.

 

[REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
BLANK]

 

     

     

    

 

IN WITNESS WHEREOF, Guarantor
has caused this Guaranty to be signed by its respective officer thereunto duly authorized, all as of the date first written above.

 

	GUARANTOR	 
	 	 
	[_______],	 
	a [_______]	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

     

     

    

 

EXHIBIT
E

 

WORK
LETTER

 

This Work Letter (this
"Work Letter") is made and entered into as of the 15th day of December, 2017, by and between IIP-AZ 1 LLC, a Delaware
limited liability company ("Landlord"), and Sun Grown Solutions, LLC, an Arizona limited liability company ("Tenant"),
and is attached to and made a part of that certain Lease dated as of December 15, 2017 (as the same may be amended, amended and
restated, supplemented or otherwise modified from time to time, the "Lease"), by and between Landlord and Tenant
for the Premises located at 5900 West Greenhouse Drive, Willcox, Arizona. All capitalized terms used but not otherwise defined
herein shall have the meanings given them in the Lease.

 

1.            General
Requirements.

 

1.1.         Authorized
Representatives.

 

(a)          Landlord
designates, as Landlord's authorized representative ("Landlord's Authorized Representative"), (i) Catherine Hastings
as the person authorized to initial plans, drawings, approvals and to sign change orders pursuant to this Work Letter and (ii)
an officer of Landlord as the person authorized to sign any amendments to this Work Letter or the Lease. Tenant shall not be obligated
to respond to or act upon any such item until such item has been initialed or signed (as applicable) by the appropriate Landlord's
Authorized Representative. Landlord may change either Landlord's Authorized Representative upon one (1) business day's prior written
notice to Tenant.

 

(b)          Tenant
designates Tom Lovell ("Tenant's Authorized Representative") as the person authorized to initial and sign all
plans, drawings, change orders and approvals pursuant to this Work Letter. Landlord shall not be obligated to respond to or act
upon any such item until such item has been initialed or signed (as applicable) by Tenant's Authorized Representative. Tenant may
change Tenant's Authorized Representative upon one (1) business day's prior written notice to Landlord.

 

1.2.          Schedule.
The schedule for design and development of the Tenant Improvements, including the time periods for preparation and review of construction
documents, approvals and performance, shall be in accordance with a schedule to be prepared by Tenant (the "Schedule").
Tenant shall prepare the Schedule so that it is a reasonable schedule for the completion of the Tenant Improvements. The Schedule
shall clearly identify all activities requiring Landlord participation. As soon as the Schedule is completed, Tenant shall deliver
the same to Landlord for Landlord's approval, which approval shall not be unreasonably withheld, conditioned or delayed. Such Schedule
shall be approved or disapproved by Landlord within ten (10) business days after delivery to Landlord. Landlord's failure to respond
within such ten (10) business day period shall be deemed approval by Landlord. If Landlord disapproves the Schedule, then Landlord
shall notify Tenant in writing of its objections to such Schedule, and the parties shall confer and negotiate in good faith to
reach agreement on the Schedule. The Schedule shall be subject to adjustment as mutually agreed upon in writing by the parties,
or as provided in this Work Letter.

 

1.3.          Tenant's
Architects, Contractors and Consultants. The architect, engineering consultants, design team, general contractor and subcontractors
responsible for the construction of the Tenant Improvements shall be selected by Tenant and approved by Landlord, which approval
Landlord shall not unreasonably withhold, condition or delay. All Tenant contracts related to the Tenant Improvements shall provide
that Tenant may assign such contracts and any warranties with respect to the Tenant Improvements to Landlord at any time.

 

2.            Tenant
Improvements. All Tenant Improvements shall be performed by Tenant's contractor, at Tenant's sole cost and expense (subject
to Landlord's obligations with respect to any portion of the TI Allowance) and in accordance with the Approved Plans (as defined
below), the Lease and this Work Letter. All material and equipment furnished by Tenant or its contractors as the Tenant Improvements
shall be new or "like new;" the Tenant Improvements shall be performed in a first-class, workmanlike manner. Tenant shall
take, and shall require its contractors to take, commercially reasonable steps to protect the Premises during the performance of
any Tenant Improvements, including covering or temporarily removing any window coverings so as to guard against dust, debris or
damage.

 

     

     

    

 

2.1.          Work
Plans. Tenant shall prepare and submit to Landlord for approval schematics covering the Tenant Improvements prepared in conformity
with the applicable provisions of this Work Letter (the "Draft Schematic Plans"). The Draft Schematic Plans shall
contain sufficient information and detail to accurately describe the proposed design to Landlord and such other information as
Landlord may reasonably request. Landlord shall notify Tenant in writing within ten (10) business days after receipt of the Draft
Schematic Plans whether Landlord approves or objects to the Draft Schematic Plans and of the manner, if any, in which the Draft
Schematic Plans are unacceptable. Landlord's failure to respond within such ten (10) business day period shall be deemed approval
by Landlord. If Landlord reasonably objects to the Draft Schematic Plans, then Tenant shall revise the Draft Schematic Plans and
cause Landlord's objections to be remedied in the revised Draft Schematic Plans. Tenant shall then resubmit the revised Draft Schematic
Plans to Landlord for approval, such approval not to be unreasonably withheld, conditioned or delayed. Landlord's approval of or
objection to revised Draft Schematic Plans and Tenant's correction of the same shall be in accordance with this Section until Landlord
has approved the Draft Schematic Plans in writing or been deemed to have approved them. The iteration of the Draft Schematic Plans
that is approved or deemed approved by Landlord without objection shall be referred to herein as the "Approved Schematic
Plans."

 

2.2.          Construction
Plans. Tenant shall prepare final plans and specifications for the Tenant Improvements that (a) are consistent with and are
logical evolutions of the Approved Schematic Plans and (b) incorporate any other Tenant-requested (and Landlord-approved) Changes
(as defined below). As soon as such final plans and specifications ("Construction Plans") are completed, Tenant
shall deliver the same to Landlord for Landlord's approval, which approval shall not be unreasonably withheld, conditioned or delayed.
All such Construction Plans shall be submitted by Tenant to Landlord in electronic .pdf, CADD and full-size hard copy formats,
and shall be approved or disapproved by Landlord within ten (10) business days after delivery to Landlord. Landlord's failure to
respond within such ten (10) business day period shall be deemed approval by Landlord. If the Construction Plans are disapproved
by Landlord, then Landlord shall notify Tenant in writing of its objections to such Construction Plans, and the parties shall confer
and negotiate in good faith to reach agreement on the Construction Plans. Promptly after the Construction Plans are approved by
Landlord and Tenant, two (2) copies of such Construction Plans shall be initialed and dated by Landlord and Tenant, and Tenant
shall promptly submit such Construction Plans to all appropriate Governmental Authorities for approval. The Construction Plans
so approved, and all change orders approved (to the extent required) by Landlord, are referred to herein as the "Approved
Plans."

 

2.3.          Changes
to the Tenant Improvements. Any material changes to the Approved Plans (each, a "Change") requested by Tenant
shall be subject to the prior written approval of Landlord, not to be unreasonably withheld, conditioned or delayed. Any such Change
request shall detail the nature and extent of any requested Changes, including any modification of the Approved Plans and the Schedule,
as applicable, necessitated by the Change. In the event that Landlord fails to respond to any such Change request within five (5)
business days of receipt, such Change shall be deemed approved.

 

3.             Completion
of Tenant Improvements. Tenant, at its sole cost and expense (except for the TI Allowance), shall perform and complete the
Tenant Improvements in all respects (a) in substantial conformance with the Approved Plans, (b) otherwise in compliance with provisions
of the Lease and this Work Letter and (c) in accordance with Applicable Laws, the requirements of Tenant's insurance carriers,
the requirements of Landlord's insurance carriers (to the extent Landlord provides its insurance carriers' requirements to Tenant)
and the board of fire underwriters having jurisdiction over the Premises. The Tenant Improvements shall be deemed completed at
such time as Tenant shall furnish to Landlord (t) evidence satisfactory to Landlord that (i) all Tenant Improvements have been
completed and paid for in full (which shall be evidenced by the architect's certificate of completion and the general contractor's
and each subcontractor's and material supplier's final unconditional waivers and releases of liens, each in a form acceptable to
Landlord and complying with Applicable Laws, and a Certificate of Substantial Completion in the form of the American Institute
of Architects document G704, executed by the project architect and the general contractor, together with a statutory notice of
substantial completion from the general contractor), (ii) all Tenant Improvements have been accepted by Landlord, (iii) any and
all liens related to the Tenant Improvements have either been discharged of record (by payment, bond, order of a court of competent
jurisdiction or otherwise) or waived by the party filing such lien and (iv) no security interests relating to the Tenant Improvements
are outstanding, (u) all certifications and approvals with respect to the Tenant Improvements that may be required from any Governmental
Authority and any board of fire underwriters or similar body for the use and occupancy of the Premises (including a certificate
of occupancy for the Premises for the Permitted Use), (v) certificates of insurance required by the Lease to be purchased and maintained
by Tenant, (w) an affidavit from Tenant's architect certifying that all work performed in, on or about the Premises is in accordance
with the Approved Plans, (x) complete "as built" drawing print sets, project specifications and shop drawings and electronic
CADD files on disc (showing the Tenant Improvements as an overlay on the Building "as built" plans for work performed
by their architect and engineers in relation to the Tenant Improvements, (y) a commissioning report prepared by a licensed, qualified
commissioning agent hired by Tenant and approved by Landlord for all new or affected mechanical, electrical and plumbing systems
(which report Landlord may hire a licensed, qualified commissioning agent to peer review, and whose reasonable recommendations
Tenant's commissioning agent shall perform and incorporate into a revised report) and (z) such other "close out" materials
as Landlord reasonably requests, such as copies of manufacturers' warranties, operation and maintenance manuals and the like.

 

     

     

    

 

4.           Insurance.

 

4.1.          Property
Insurance. At all times during the period beginning with commencement of construction of the Tenant Improvements and ending
with final completion of the Tenant Improvements, Tenant shall maintain, or cause to be maintained (in addition to the insurance
required of Tenant pursuant to the Lease), property insurance insuring Landlord and the Landlord Parties, as their interests may
appear. Such policy shall, on a completed values basis for the full insurable value at all times, insure against loss or damage
by fire, vandalism and malicious mischief and other such risks as are customarily covered by the so-called "broad form extended
coverage endorsement" upon all Tenant Improvements and the general contractor's and any subcontractors' machinery, tools and
equipment, all while each forms a part of, or is contained in, the Tenant Improvements or any temporary structures on the Premises,
or is adjacent thereto; provided that, for the avoidance of doubt, insurance coverage with respect to the general contractor's
and any subcontractors' machinery, tools and equipment shall be carried on a primary basis by such general contractor or the applicable
subcontractor(s). Tenant agrees to pay any deductible, and Landlord is not responsible for any deductible, for a claim under such
insurance. Such property insurance shall contain an express waiver of any right of subrogation by the insurer against Landlord
and the Landlord Parties, and shall name Landlord and its affiliates as loss payees as their interests may appear.

 

4.2.          Workers'
Compensation Insurance. At all times during the period of construction of the Tenant Improvements, Tenant shall, or shall cause
its contractors or subcontractors to, maintain statutory workers' compensation insurance as required by Applicable Laws.

 

5.           Liability.
Tenant assumes sole responsibility and liability for any and all injuries or the death of any persons, including Tenant's contractors
and subcontractors and their respective employees, agents and invitees, and for any and all damages to property caused by, resulting
from or arising out of any act or omission on the part of Tenant, Tenant's contractors or subcontractors, or their respective employees,
agents and invitees in the prosecution of the Tenant Improvements. Tenant agrees to indemnify, save, defend (at Landlord's option
and with counsel reasonably acceptable to Landlord) and hold the Landlord Indemnitees harmless from and against all Claims due
to, because of or arising out of any and all such injuries, death or damage, whether real or alleged, and Tenant and Tenant's contractors
and subcontractors shall assume and defend at their sole cost and expense all such Claims; provided, however, that
nothing contained in this Work Letter shall be deemed to indemnify or otherwise hold Landlord harmless from or against liability
caused by Landlord's gross negligence or willful misconduct. Any deficiency in design or construction of the Tenant Improvements
shall be solely the responsibility of Tenant, notwithstanding the fact that Landlord may have approved of the same in writing.

 

6.           TI
Allowance.

 

6.1.          Application
of TI Allowance. Subject to the provisions of Section 5 of the Lease, Landlord shall contribute the TI Allowance toward
the costs and expenses incurred in connection with the performance of the Tenant Improvements, in accordance with Section 5
of the Lease. If the entire TI Allowance is not applied toward or reserved for the costs of the Tenant Improvements, then Tenant
shall not be entitled to a credit of such unused portion of the TI Allowance. Tenant may apply the TI Allowance for the payment
of construction and other costs in accordance with the terms and provisions of the Lease.

 

     

     

    

 

6.2.          Approval
of Budget for the Tenant Improvements. Notwithstanding anything to the contrary set forth elsewhere in this Work Letter or
the Lease, Landlord shall not have any obligation to expend any portion of the TI Allowance until Landlord and Tenant shall have
approved in writing the budget for the Tenant Improvements (the "Approved Budget"). Prior to Landlord's approval
of the Approved Budget, Tenant shall pay all of the costs and expenses incurred in connection with the Tenant Improvements as they
become due. Landlord shall not be obligated to reimburse Tenant for costs or expenses relating to the Tenant Improvements that
exceed the amount of the TI Allowance. Landlord shall not unreasonably withhold, condition or delay its approval of any budget
for Tenant Improvements that is proposed by Tenant.

 

6.3.          Fund
Requests. Subject to Section 5 of the Lease, Upon submission by Tenant to Landlord of (a) a statement (a "Fund
Request") setting forth the total amount of the TI Allowance requested, (b) a summary of the Tenant Improvements performed
using AIA standard form Application for Payment (G 702) executed by the general contractor and by the architect, (c) invoices from
the general contractor, the architect, and any subcontractors, material suppliers and other parties in the amount of the TI Allowance
requested by Tenant for reimbursement, (d) unconditional lien releases from the general contractor and each subcontractor and material
supplier with respect to all payments made by Tenant for the Tenant Improvements in a form acceptable to Landlord and complying
with Applicable Laws; and (e) the items required to be delivered by Tenant pursuant to Section 5 of the Lease, then Landlord
shall, within fifteen (15) days following receipt by Landlord of the Fund Request and all accompanying materials required by this
Section, pay to Tenant the amount of the TI Allowance requested.

 

7.           Miscellaneous.

 

7.1.          Incorporation
of Lease Provisions. Sections 35.2 through 35.18 of the Lease are incorporated into this Work Letter by reference,
and shall apply to this Work Letter in the same way that they apply to the Lease.

 

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IN WITNESS WHEREOF, Landlord
and Tenant have executed this Work Letter to be effective on the date first above written.

 

	LANDLORD:	 
	 	 
	IIP-AZ 1 LLC,	 
	a Delaware limited liability company	 
	 	 	 
	By:	/s/ Catherine Hastings	 
	Name:	Catherine Hastings	 
	Title:	Chief Financial Officer, Chief Accounting Officer and Treasurer	 

 

	TENANT:	 
	 	 
	Sun Grown Solutions, LLC,	 
	an Arizona limited liability company	 
	 	 
	By:	Green Thumb Management, LLC, a Delaware limited liability company, as Member
	 	 	 

	 	By: 	/s/ Randy Smith	 
	 	Name: Randy Smith	 
	 	Its: President	 

 

     

     

    

 

EXHIBIT E-1

 

TENANT WORK INSURANCE SCHEDULE

 

Tenant shall be responsible for requiring all
of Tenant contractors doing construction or renovation work to purchase and maintain such insurance as shall protect it from the
claims set forth below which may arise out of or result from any Tenant Work whether such Tenant Work is completed by Tenant or
by any Tenant contractors or by any person directly or indirectly employed by Tenant or any Tenant contractors, or by any person
for whose acts Tenant or any Tenant contractors may be liable:

 

		1.	Claims under workers' compensation, disability benefit
and other similar employee benefit acts which are applicable to the Tenant Work to be performed.

 

		2.	Claims for damages because of bodily injury, occupational
sickness or disease, or death of employees under any applicable employer's liability law.

 

		3.	Claims for damages because of bodily injury, or death of
any person other than Tenant's or any Tenant contractors' employees.

 

		4.	Claims for damages insured by usual personal injury liability
coverage which are sustained (a) by any person as a result of an offense directly or indirectly related to the employment of such
person by Tenant or any Tenant contractors or (b) by any other person.

 

		5.	Claims for damages, other than to the Tenant Work itself,
because of injury to or destruction of tangible property, including loss of use therefrom.

 

		6.	Claims for damages because of bodily injury or death of
any person or property damage arising out of the ownership, maintenance or use of any motor vehicle.

 

Tenant contractors' Commercial General Liability
Insurance shall include premises/operations (including explosion, collapse and underground coverage if such Tenant Work involves
any underground work), elevators, independent contractors, products and completed operations, and blanket contractual liability
on all written contracts, all including broad form property damage coverage.

 

Tenant contractors' Commercial General, Automobile,
Employers and Umbrella Liability Insurance shall be written for not less than limits of liability as follows:

 

	 	a.	
        Commercial General Liability:

        Bodily Injury and Property Damage

         
	
        Commercially reasonable amounts, but in any
        event no less than $1,000,000 per occurrence and $2,000,000 general aggregate, with $2,000,000 products and completed operations
        aggregate.

         

	 	b.	
        Commercial
        Automobile Liability:

        Bodily Injury and Property Damage
	$1,000,000 per accident
	 	c.	
        Employer's
        Liability:

        Each Accident

        Disease – Policy Limit

        Disease – Each Employee
	
         

        $500,000

        $500,000

        $500,000

	 	d.	
        Umbrella
        Liability:

        Bodily Injury and Property Damage
	
        Commercially reasonable amounts (excess
of coverages a, b and c above), but in any event no less than $3,000,000 per occurrence / aggregate.

 

 

     

     

    

 

All subcontractors for Tenant contractors shall
carry the same coverages and limits as specified above, unless different limits are reasonably approved by Landlord. The foregoing
policies shall contain a provision that coverages afforded under the policies shall not be canceled or not renewed until at least
thirty (30) days' prior written notice has been given to the Landlord. Certificates of insurance including required endorsements
showing such coverages to be in force shall be filed with Landlord prior to the commencement of any Tenant Work and prior to each
renewal. Coverage for completed operations must be maintained for the lesser of ten (10) years and the applicable statue of repose
following completion of the Tenant Work, and certificates evidencing this coverage must be provided to Landlord. The minimum A.M.
Best's rating of each insurer shall be A- VII. Landlord and its mortgagees shall be named as an additional insured under Tenant
contractors' Commercial General Liability, Commercial Automobile Liability and Umbrella Liability Insurance policies as respects
liability arising from work or operations performed, or ownership, maintenance or use of autos, by or on behalf of such contractors.
Each contractor and its insurers shall provide waivers of subrogation with respect to any claims covered or that should have been
covered by valid and collectible insurance, including any deductibles or self-insurance maintained thereunder.

 

If any contractor's work involves the handling
or removal of asbestos (as determined by Landlord in its sole and absolute discretion), such contractor shall also carry Pollution
Legal Liability insurance. Such coverage shall include bodily injury, sickness, disease, death or mental anguish or shock sustained
by any person; property damage, including physical injury to or destruction of tangible property (including the resulting loss
of use thereof), clean-up costs and the loss of use of tangible property that has not been physically injured or destroyed; and
defense costs, charges and expenses incurred in the investigation, adjustment or defense of claims for such damages. Coverage shall
apply to both sudden and non-sudden pollution conditions including the discharge, dispersal, release or escape of smoke, vapors,
soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants or pollutants
into or upon land, the atmosphere or any watercourse or body of water. Claims-made coverage is permitted, provided the policy
retroactive date is continuously maintained prior to the Commencement Date, and coverage is continuously maintained during all
periods in which Tenant occupies the Premises. Coverage shall be maintained with limits of not less than $1,000,000 per incident
with a $2,000,000 policy aggregate.

 

     

     

    

 

EXHIBIT F

 

Authorization for Use of Premises

 

Landlord and Tenant acknowledge
and agree, Permitted Use as defined in Section 2.3 of this Lease, shall also include and incorporate the definitions, actions,
authorizations and terms provided herein this Exhibit F in compliance with the Applicable Laws and terms and provisions of this
Lease:

 

1.          Pursuant
to and in compliance with Title 9; Chapter 17 of the Arizona Department of Health Services Medical Marijuana Program (the “AZDHS
Rules”) and A.R.S. § 36-2801 et seq., as amended from time to time (the “Act”) (the AZDHS Rules
and the Act collectively referred to herein as the “AMMA”), the Arizona Department of Health Services (“AZDHS”)
awarded Phoenix Relief Center Incorporated, an Arizona nonprofit corporation (“Phoenix Relief”), Medical Marijuana
Registration Certificate ID No. 00000095DCVW00172644 (“Dispensary License”).

 

2.          Pursuant
to its Dispensary License, Phoenix Relief is authorized to operate its medical marijuana dispensary (the “Dispensary”)
and its authorized offsite cultivation facility located therein the Premises (the “Cultivation Facility”) for
the purpose of cultivating, harvesting, preparing, storing and transporting medical marijuana (“Cannabis”),
as well as extracting, refining, infusing, producing, storing and transporting manufactured and derivative edible and non-edible
products which contain Cannabis (collectively referred to herein as “Cannabis Products”) for sale at Phoenix
Relief’s Dispensary and to other duly licensed dispensaries in the State of Arizona (the aforementioned collectively referred
to herein as the “Cultivation Operation”) pursuant to the AMMA and all rules, regulations and requirements.

 

3.          The
parties to the Lease acknowledge and agree, Tenant entered into that certain Cultivation Management Services Agreement, dated June
14, 2016 (“Management Agreement”), with Phoenix Relief, pursuant to which Phoenix Relief retained Tenant to
render certain Management Services (defined in the Management Agreement) on behalf of the Cultivation Operation and Cultivation
Facility.

 

4.          Landlord
expressly authorizes Tenant to license the Premises to Phoenix Relief, pursuant to that certain Memorandum of License attached
as Exhibit “A” to the Management Agreement, for the purpose of authorizing Phoenix Relief to operate its Cultivation
Operation and Cultivation Facility, and allow Tenant to render the Management Services at the Premises, on behalf of Phoenix Relief,
pursuant to the Management Agreement, the AMMA and all rules, requirements and regulations. Tenant shall indemnify, save, defend
(at Landlord's option and with counsel reasonably acceptable to Landlord) and hold Landlord and Landlord Indemnitees harmless from
and against any and all Claims of any kind or nature that arise before, during or after the Term as a result of Tenant's license
of the Premises to Phoenix Relief.

 

5.          Landlord
shall not unreasonably withhold, condition or delay its consent to, and shall reasonably cooperate with Tenant to effectuate, any
amendment to the Lease requested by Tenant to the extent reasonably deemed necessary to ensure complete compliance with the AMMA
and all applicable rules, requirements and regulations as they may be amended from time to time, provided in no event shall Landlord
be obligated to agree to any proposed amendment that modifies the economic terms of the Lease or would result in the value of the
Property or Landlord’s interest under the Lease being materially diminished .

 

6.          The
parties agree to take all reasonable actions necessary to comply with any request from AZDHS or any other state, local or regulatory
agency to ensure compliance with the AMMA and all applicable rules, requirements and regulations as they may be amended from time
to time, at Tenant’s sole cost and expense.

 

7.          The
parties agree, Tenant shall have the right and authorization, in its sole discretion and without prior Landlord approval, to prepare,
acquire and submit any documents, materials, applications, licensing and/or authorizations necessary to allow for the ongoing operation
and management of the Premises, Cultivation Facility and Cultivation Operation, to ensure compliance with the Applicable Laws,
including the AMMA and any laws, ordinances, rules or licensing, in effect now or which may become effective after the Effective
Date of the Lease, during the Term or any subsequent term of this Lease, including any amendment, alteration or modification required
to this Exhibit F to accurately reflect a Guarantor of the Lease as the appropriate affiliate holder of the necessary Medical
Marijuana Registration Certificate (“License”) and/or any other applicable License, so long as such action,
change or modification remains in compliance with the terms and conditions of the Lease, including Section 34 of the Lease.EX-10.1

Table of Contents

 Exhibit 10.1 

JOINT DEVELOPMENT AND COMMERCIALIZATION AGREEMENT 

BETWEEN 
 VERTEX
PHARMACEUTICALS INCORPORATED 
 VERTEX PHARMACEUTICALS (EUROPE) LIMITED 

AND 
 CRISPR
THERAPEUTICS AG 
 CRISPR THERAPEUTICS LIMITED 

CRISPR THERAPEUTICS, INC. 

TRACR HEMATOLOGY LTD. 
  

 
  

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 ARTICLE 1 DEFINITIONS
	  	 	2	 
		
	 ARTICLE 2 GOVERNANCE
	  	 	11	 
	 2.1. Joint Steering Committee
	  	 	11	 
	 2.2. Joint Research Committee
	  	 	12	 
	 2.3. Joint Development Committee
	  	 	13	 
	 2.4. Joint Commercialization Committee
	  	 	16	 
	 2.5. Joint Manufacturing Committee
	  	 	18	 
	 2.6. Alliance Managers
	  	 	20	 
	 2.7. Other Committees
	  	 	20	 
	 2.8. Decision-Making
	  	 	20	 
		
	 ARTICLE 3 DEVELOPMENT
	  	 	21	 
	 3.1. Research and Development Plans
	  	 	21	 
	 3.2. Project Team
	  	 	22	 
	 3.3. Development Activities
	  	 	23	 
	 3.4. Diligence
	  	 	31	 
	 3.5. Follow-On Products
	  	 	31	 
	 3.6. Additional [***] Targets
	  	 	31	 
		
	 ARTICLE 4 MEDICAL AFFAIRS ACTIVITIES.
	  	 	32	 
		
	 ARTICLE 5 COMMERCIALIZATION.
	  	 	32	 
	 5.1. Responsibilities
	  	 	32	 
	 5.2. Commercialization Plans
	  	 	32	 
	 5.3. Elements of Global Commercialization Plan
	  	 	33	 
	 5.4. Commercialization Activities
	  	 	34	 
	 5.5. Diligence
	  	 	34	 
		
	 ARTICLE 6 MANUFACTURING
	  	 	35	 
	 6.1. Manufacturing Diligence
	  	 	35	 
	 6.2. Manufacturing Working Group
	  	 	35	 
	 6.3. Responsibilities
	  	 	36	 
	 6.4. Sharing of Manufacturing Information
	  	 	36	 
	 6.5. CMO Agreements
	  	 	37	 

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

					
		
	 ARTICLE 7 FINANCIAL TERMS; ALLOCATION OF NET PROFIT AND NET LOSS
	  	 	37	 
	 7.1. Upfront Payments
	  	 	37	 
	 7.3. Allocation
	  	 	37	 
	 7.4. Calculation
	  	 	37	 
	 7.5. Payment of Expenses; Summary Statements
	  	 	37	 
	 7.6. Reconciliation
	  	 	38	 
	 7.7. Cost Overruns
	  	 	38	 
	 7.8. Books and Records
	  	 	39	 
	 7.9. Payment Method; Currency
	  	 	39	 
	 7.10. Late Payment
	  	 	40	 
	 7.11. Payments To / From CRISPR Entities
	  	 	40	 
		
	 ARTICLE 8 ADVERSE EVENTS
	  	 	40	 
	 8.1. Pharmacovigilance Agreement
	  	 	40	 
	 8.2. Global Safety Database
	  	 	40	 
	 8.3. Risk Management and Signal Detection Activities
	  	 	40	 
	 8.4. Access to Safety Information
	  	 	41	 
		
	 ARTICLE 9 SUBCONTRACTING
	  	 	41	 
		
	 ARTICLE 10 LICENSE GRANTS
	  	 	41	 
	 10.1. Acknowledgment of Option Exercise
	  	 	41	 
	 10.2. License Grants to Vertex
	  	 	41	 
	 10.3. License Grants to CRISPR
	  	 	42	 
	 10.4. Licenses to Improvements
	  	 	43	 
	 10.5. Sublicensing
	  	 	43	 
	 10.6. No Implied Licenses
	  	 	44	 
	 10.7. Third Party Agreements
	  	 	44	 
	 10.8. Trademarks
	  	 	44	 
		
	 ARTICLE 11 INTELLECTUAL PROPERTY
	  	 	45	 
		
	 ARTICLE 12 REPRESENTATIONS AND WARRANTIES
	  	 	45	 
	 12.1. Representations and Warranties of Vertex
	  	 	45	 
	 12.2. Representations and Warranties of CRISPR
	  	 	46	 
	 12.3. CRISPR Covenants
	  	 	47	 
	 12.4. Vertex Covenants
	  	 	48	 
	 12.5. Disclaimer
	  	 	48	 
	 12.6. [***]
	  	 	49	 

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

					
		
	 ARTICLE 13 INDEMNIFICATION; INSURANCE
	  	 	49	 
	 13.1. Indemnification by Vertex
	  	 	49	 
	 13.2. Indemnification by CRISPR
	  	 	49	 
	 13.3. Procedure
	  	 	49	 
	 13.4. Other Third Party Claims
	  	 	50	 
	 13.5. Insurance
	  	 	50	 
	 13.6. Limitation of Consequential Damages
	  	 	51	 
		
	 ARTICLE 14 TERM; TERMINATION
	  	 	51	 
	 14.1. Co-Co Agreement Term; Expiration
	  	 	51	 
	 14.2. Termination of the Agreement
	  	 	51	 
	 14.3. Opt-Out
	  	 	55	 
	 14.4. Consequences of Expiration or Certain Terminations of the Agreement
	  	 	57	 
	 14.5. Alternative Remedies for Material Breach
	  	 	58	 
	 14.6. Survival
	  	 	58	 
		
	 ARTICLE 15 CONFIDENTIALITY
	  	 	58	 
		
	 ARTICLE 16 MISCELLANEOUS
	  	 	58	 
	 16.1. Assignment
	  	 	58	 
	 16.2. Change of Control
	  	 	59	 
	 16.3. Force Majeure
	  	 	59	 
	 16.4. Representation by Legal Counsel
	  	 	59	 
	 16.5. Notices
	  	 	59	 
	 16.6. Amendment
	  	 	60	 
	 16.7. Waiver
	  	 	60	 
	 16.8. Severability
	  	 	61	 
	 16.9. Descriptive Headings
	  	 	61	 
	 16.10. Export Control
	  	 	61	 
	 16.11. Governing Law
	  	 	61	 
	 16.12. Entire Agreement
	  	 	61	 
	 16.13. Independent Contractors
	  	 	61	 
	 16.14. Interpretation
	  	 	62	 
	 16.15. No Third Party Rights or Obligations
	  	 	62	 
	 16.16. Further Actions
	  	 	62	 
	 16.17. Counterparts
	  	 	62	 
	 16.18. CRISPR Entities
	  	 	63	 

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

 JOINT DEVELOPMENT AND COMMERCIALIZATION AGREEMENT 

This JOINT DEVELOPMENT AND COMMERCIALIZATION AGREEMENT (this “Agreement”) is entered into as of December 12, 2017 (the
“Effective Date”) by and between, on the one hand, VERTEX PHARMACEUTICALS INCORPORATED, a corporation organized and existing under the laws of The
Commonwealth of Massachusetts (“Vertex Parent”), and VERTEX PHARMACEUTICALS (EUROPE) LIMITED, a private limited liability company organized
under the laws of England and Wales (“Vertex UK” and, together with Vertex Parent, “Vertex”) and, on the other hand, CRISPR THERAPEUTICS AG, a corporation organized under the laws of
Switzerland (“CRISPR AG”), CRISPR THERAPEUTICS, INC., a corporation organized under the laws of the state of Delaware (“CRISPR Inc.”), CRISPR
THERAPEUTICS LIMITED, a corporation organized under the laws of England and Wales (“CRISPR UK”), and TRACR HEMATOLOGY LTD, a UK
limited company (“Tracr” and together with CRISPR AG, CRISPR Inc. and CRISPR UK, CRISPR”). Vertex and CRISPR each may be referred to herein individually as a “Party” or collectively as the
“Parties.” 
 RECITALS 

WHEREAS, the Parties and certain of their Affiliates (as defined below) have entered into that certain Strategic Collaboration, Option
and License Agreement dated as of October 26, 2015, as amended by that certain Amendment No. 1 by and between the Parties dated as of the Effective Date (the “Collaboration Agreement”); 

WHEREAS, pursuant to the Collaboration Agreement, Vertex and CRISPR are conducting a strategic collaboration focused on exploring
potential targets related to certain diseases and creating therapeutics using gene editing [***], including the CRISPR/Cas System, to treat such diseases, including the Products (as defined below); 

WHEREAS, pursuant to Section 4.1.1 of the Collaboration Agreement, Vertex has obtained an Option (as defined therein) with respect
to [***], and the execution of this Agreement constitutes the exercise by Vertex of the Option with respect to [***] that becomes a Collaboration Target; 

WHEREAS, the Parties agree that [***] under the Collaboration Agreement; and 

WHEREAS, the Parties desire to enter into this Agreement in accordance with Section 6.1.2(c) of the Collaboration Agreement in
order for the Parties to jointly develop and commercialize the Shared Products and to conduct additional research with respect to the Follow-On Products (as defined below). 

  
 1 

[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

 NOW, THEREFORE, in consideration of the respective covenants, representations, warranties
and agreements set forth herein, the Parties hereto agree as follows: 
 ARTICLE 1 

DEFINITIONS 
 For purposes
of this Agreement, the following capitalized terms will have the meanings set forth in this ARTICLE 1. Capitalized terms used but not defined herein will have their respective meanings set forth in the Collaboration Agreement. 

 

	 	1.1.	“Agreement” has the meaning set forth in the Preamble. 

  

	 	1.2.	“Alliance Manager” has the meaning set forth in Section 2.6.1. 

  

	 	1.3.	“[***] Arbitration” means [***] style arbitration in accordance with the arbitration procedure set forth on Schedule A. 

 

	 	1.4.	[***]. 

  

	 	1.5.	[***]. 

  

	 	1.6.	“[***] Third Party Agreement” has the meaning set forth in Section 10.7.2. 

  

	 	1.7.	[***]. 

  

	 	1.8.	[***]. 

  

	 	1.9.	“Calendar Quarter” means the respective periods of three consecutive calendar months ending on March 31, June 30, September 30 or December 31, during the Co-Co Agreement Term, or the applicable part thereof during the first or last calendar quarter of the Co-Co Agreement Term. 

 

	 	1.10.	“Calendar Year” means any calendar year ending on December 31, or the applicable part thereof during the first or last year of the Co-Co Agreement Term.

  

	 	1.11.	“Challenging Party” has the meaning set forth in Section 14.2.3. 

  

	 	1.12.	“Clinical Operations Study Lead” has the meaning set forth in Section 3.2.2. 

  

	 	1.13.	“CMO” means contract manufacturing organization. 

  

	 	1.14.	“CRO” means contract research organization. 

  

	 	1.15.	“Co-Co Agreement Term” means the period commencing on the Effective Date and ending on the expiration of this Agreement pursuant to Section 14.1, unless
terminated earlier as provided herein. 

  

	 	1.16.	“Collaboration Agreement” has the meaning set forth in the Recitals. 

  

	 	1.17.	“Combination Product” has the meaning set forth in Section 1.82. 

  

	 	1.18.	“Commercialization Costs” [***]: 

  
 2 

[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

	 	1.18.1.  	[***]; 

  

	 	1.18.2.  	[***]; 

  

	 	1.18.3.  	[***]; 

  

	 	1.18.4.  	[***]; 

  

	 	1.18.5.  	[***]; 

  

	 	1.18.6.  	[***]; 

  

	 	1.18.7.  	[***]; 

  

	 	1.18.8.  	[***]; 

  

	 	1.18.9.  	[***]. 

 Commercialization Costs will exclude all of the payments set forth in
Section 7.1 of the Collaboration Agreement, Research Costs, Development Costs, Manufacturing Costs, Medical Affairs Costs, Quality Costs, Other Out-of-Pocket Costs
and Expenses attributable to general corporate activities, executive management, investor relations, treasury services, business development, corporate government relations, external financial reporting and other overhead activities. 

 

	 	1.19.	“Competitive Program” has the meaning set forth in Section 1.20. 

  

	 	1.20.	“Competitor” means any pharmaceutical company that is conducting a research, development or commercial program for a product that is intended to (a) [***], (b) [***] or (c) [***] (each of (a)-(c), a
“Competitive Program”)[***]. 

  

	 	1.21.	“CRISPR” has the meaning set forth in the Preamble. 

  

	 	1.22.	“CRISPR Background Know-How” means any Know-How, other than Joint Program Know-How
and CRISPR Program Know-How, that (a) [***] and (b) [***]. 

  

	 	1.23.	“CRISPR Background Patents” means any Patent, other than a Joint Program Patent, CRISPR Program Patent or CRISPR Platform Technology Patent that (a) [***] and (b) [***]. 

 

	 	1.24.	“CRISPR In-License Agreements” means CRISPR’s or its Affiliates’ agreements with Third Party licensors or sellers listed on Schedule E, which
Schedule shall be updated upon the designation of any Follow-On Product as a Shared Product under this Agreement, to include any agreements pursuant to which CRISPR or its Affiliates have in-licensed or acquired any Licensed CRISPR Technology with respect to such Shared Product. 

  
 3 

[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

	 	1.25.	“CTA” means a clinical trial application submitted to a Regulatory Authority, the submission and approval of which is necessary to initiate or conduct clinical testing of a pharmaceutical product in
humans in the jurisdiction of such Regulatory Authority. 

  

	 	1.26.	“Development Budget” has the meaning set forth in Section 3.1.1. 

  

	 	1.27.	“Development Costs” [***]: 

  

	 	1.27.1.  	[***]; 

  

	 	1.27.2.  	[***]; 

  

	 	1.27.3.  	[***]; 

  

	 	1.27.4.  	[***]; 

  

	 	1.27.5.  	[***]; 

  

	 	1.27.6.  	[***]. 

  

	 	[***].	

  

	 	1.28.	“Distributor” means a Third Party to whom either Party grants a right to sell or distribute a Shared Product, which Third Party does not make payments to the granting Party that are calculated on the
basis of a percentage of, or profit share on, such Third Party’s sales of Shared Products. 

  

	 	1.29.	“Dollar” means the United States Dollar. 

  

	 	1.30.	“Effective Date” has the meaning set forth in the Preamble. 

  

	 	1.31.	“Exclusive License” has the meaning set forth in Section 10.2.1. 

  

	 	1.32.	“Executive Officers” means the Chief Executive Officer of CRISPR, initially Samarth Kulkarni, and the Chief Operating Officer of Vertex, initially Ian Smith. 

 

	 	1.33.	“Expenses” means Out-of-Pocket Costs and FTE Costs. 

 

	 	1.34.	“Follow-On Agent” means a product comprising (a) [***], or (b) [***]. 

  

	 	1.35.	“Follow-On Product” means any pharmaceutical product, medical therapy, preparation, substance, or formulation comprising or employing, in whole or in part,
a Follow-On Agent, but excluding the Initial Shared Product. 

  

	 	1.36.	“Follow-On Research Plan” has the meaning set forth in Section 3.1.2. 

  
 4 

[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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	 	1.37.	“FTE” means one employee full-time for one year or more than one person working the equivalent of a full-time person, working directly on performing activities under the Global Development Plan, the Follow-On Research Plan, the Medical Affairs Plan, the Manufacturing Plan, the Quality Agreement, any Global Commercialization Plan or any Regional Commercialization Plan, as applicable, where “full-time”
is considered [***] hours for one Calendar Year. No additional payment will be made with respect to any individual who works more than [***] hours per Calendar Year and any individual who devotes less than [***] hours per Calendar Year will be
treated as an FTE on a pro rata basis based upon the actual number of hours worked divided by [***]. 

  

	 	1.38.	“FTE Costs” means the product of (a) the number of FTEs (proportionately, on a per-FTE basis) used by a Party or its Affiliates in directly performing
activities assigned to such Party under and in accordance with the Global Development Plan, the Follow-On Research Plan, the Medical Affairs Plan, the Manufacturing Plan, the Quality Agreement, any Global
Commercialization Plan or any Regional Commercialization Plan, as applicable, and (b) the FTE Rate. 

  

	 	1.39.	“Global Brand Strategy” has the meaning set forth in Section 5.3.1. 

  

	 	1.40.	“Global Commercialization Budget” has the meaning set forth in Section 5.2. 

  

	 	1.41.	“Global Commercialization Plan” has the meaning set forth in Section 5.2. 

  

	 	1.42.	“Global Communication Strategy” has the meaning set forth in Section 5.3.2. 

  

	 	1.43.	“Global Development Plan” has the meaning set forth in Section 3.1.1. 

  

	 	1.44.	“Global Manufacturing Plan” has the meaning set forth in Section 6.2. 

  

	 	1.45.	“Global Market Access and Value Strategy” has the meaning set forth in Section 5.3.3. 

  

	 	1.46.	“Global Pricing Strategy” has the meaning set forth in Section 5.3.4. 

  

	 	1.47.	“Global Safety Database” has the meaning set forth in Section 8.2. 

  

	 	1.48.	[***]. 

  

	 	1.49.	[***]. 

  

	 	1.50.	[***]. 

  

	 	1.51.	“ICH” means The International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use. 

 

	 	1.52.	“[***]Agreement” means [***], as originally executed and as the same may be amended, restated or modified from time to time in accordance with its terms. 

 

	 	1.53.	“IND Transfer Date” has the meaning set forth in Section 3.3.1(b). 

  
 5 

[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

	 	1.54.	“Initial Clinical Trials” means the first-in-human study of the Initial Shared Product in subjects with beta-thalassemia
and the first-in-human study of the Initial Shared Product in subjects with sickle cell disease. 

 

	 	1.55.	“Initial Shared Product” means the [***]. 

  

	 	1.56.	“Integrated Budget” means the annual overall budget for activities performed under this Agreement, which shall include the amounts set forth in each of the Research Budget, the Development Budget, the
Global Commercialization Budget, the Medical Affairs Budget and the Manufacturing Budget for the applicable Calendar Year. 

  

	 	1.57.	“JCC” has the meaning set forth in Section 2.4.1. 

  

	 	1.58.	“JDC” has the meaning set forth in Section 2.3.1. 

  

	 	1.59.	“JMC” has the meaning set forth in Section 2.5.1. 

  

	 	1.60.	“JSC” has the meaning set forth in Section 2.1.1. 

  

	 	1.61.	“Knowledge” means the [***] of [***] after [***]. 

  

	 	1.62.	“Lead Commercialization Party” has the meaning set forth in Section 5.1. 

  

	 	1.63.	“Licensed CRISPR Know-How” means (a) CRISPR Background Know-How, (b) CRISPR Program Know-How and (c) CRISPR’s interest in the Joint Program Know-How. 

  

	 	1.64.	“Licensed CRISPR Patents” means (a) CRISPR Background Patents, (b) CRISPR Platform Technology Patents, (c) CRISPR Program Patents and (d) CRISPR’s interest in the Joint Program
Patents. 

  

	 	1.65.	“Licensed CRISPR Technology” means, subject to Section 10.2.3 and Section 10.7.2, any and all Licensed CRISPR Patents and Licensed CRISPR Know-How.

  

	 	1.66.	“Licensed Vertex Know-How” means (a) any [***] that (i) [***] and (ii) [***], (b) [***] and (c) the [***]. 

 

	 	1.67.	“Licensed Vertex Patents” means (a) [***] that (i) [***] and (ii) [***], (b) the [***] and (c) the [***]. 

  

	 	1.68.	“Licensed Vertex Technology” means, subject to Section 10.3.3 and Section 10.7.2, any and all Licensed Vertex Patents and Licensed Vertex Know-How.

  

	 	1.69.	“Major [***] Countries” means the [***]. 

  

	 	1.70.	“Manufacture”, “Manufactured” or “Manufacturing” means activities directed to making, having made, producing, manufacturing, processing, filling, finishing, packaging,
labeling, quality control testing and quality assurance release, shipping or storage of a Product (including any [***] that comprise such Product). 

  
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[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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	 	1.71.	“Manufacturing Budget” has the meaning set forth in Section 6.2. 

  

	 	1.72.	“Manufacturing Costs” means [***] 

  

	 	1.73.	“[***]” has the meaning set forth in Section 6.1. 

  

	 	1.74.	“Manufacturing Working Group” has the meaning set forth in Section 6.2. 

  

	 	1.75.	“Medical Affairs Activities” means responding to external inquiries or complaints, the planning for and conduct of investigator sponsored Clinical Trials not included in the Global Development Plan,
medical education, speaker programs, advisory boards, thought leader activities, educational grants and fellowships, local country government affairs, phase 3b Clinical Trials, phase IV/post-Regulatory Approval Clinical Trials, generating health
economics and outcomes research data from patient reported outcomes, prospective observational studies and retrospective observational studies, and economic models and reimbursement dossiers, deployment of MSLs, medical affairs clinical trial
management, doctors in field (other than MSLs), scientific publications and medical communications. 

  

	 	1.76.	“Medical Affairs Budget” has the meaning set forth in ARTICLE 4. 

  

	 	1.77.	“Medical Affairs Costs” means all Expenses incurred by the Parties in connection with the conduct of Medical Affairs Activities in accordance with the Medical Affairs Plan and the Medical Affairs
Budget. 

  

	 	1.78.	“Medical Affairs Plan” has the meaning set forth in ARTICLE 4. 

  

	 	1.79.	“MSL” means medical science liaisons. 

  

	 	1.80.	“Net Loss” means, for a given period, Net Sales in the Territory plus Sublicense Revenue less Program Expenses, where the result is a negative number. 

 

	 	1.81.	“Net Profit” means, for a given period, Net Sales in the Territory plus Sublicense Revenue less Program Expenses, where the result is a positive number. 

 

	 	1.82.	“Net Sales” means the gross invoiced price for Shared Products sold by a Party or its Affiliates (the “Selling Party”) to Third Parties, less the following deductions from such gross
amounts: 

  

	 	(a)	[***]; 

  

	 	(b)	[***]; 

  

	 	(c)	[***]; 

  
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[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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	 	(d)	[***] ; 

  

	 	(e)	[***]. 

 Generally, only items that are deducted from the Selling Party’s gross invoiced
sales price of Shared Product(s), as included in the Selling Party’s published financial statements and that are in accordance with GAAP, applied on a consistent basis, will be deducted from such gross invoiced sales price for purposes of the
calculation of Net Sales. However, compulsory payments required by federal or state governments based upon sales volume or market share of Shared Products (but for clarity excluding taxes on the Selling Party’s net income), to the extent borne
by the Selling Party, will be deducted from “Net Sales” regardless of its classification in the Selling Party’s published financial statements; provided that any such deduction will be limited to that share of such compulsory
payment proportional to the share of the total sales volume or market share of the Selling Party used to compute the compulsory payment represented by applicable Net Sales of Shared Products. 

A qualifying amount may be deducted only once regardless of the number of the preceding categories that describe such amount. If a Selling
Party makes any adjustment to such deductions after the associated Net Sales have been reported pursuant to this Agreement, the adjustments will be reported with the next Summary Statement. Sales between or among a Party, its Affiliates and
Sublicensees will be excluded from the computation of Net Sales if such sales are not intended for end use, but Net Sales will include the subsequent final sales to Third Parties by a Party or any such Affiliates or Sublicensees. A Shared Product
will not be deemed to be sold if the Shared Product is provided free of charge to a Third Party in reasonable quantities as a sample consistent with industry standard promotional and sample practices. [***]. 

If a sale, transfer or other disposition with respect to Shared Products involves consideration other than cash or is not at arm’s length,
then the Net Sales from such sale, transfer or other disposition will be calculated on the [***]. 
 Solely for purposes of calculating Net
Sales, if a Party or its Affiliates or any permitted Sublicensee sells a Shared Product in the form of a combination product containing a Shared Product and one or more other therapeutically or prophylactically active ingredients or delivery devices
(whether combined in a single formulation or package, as applicable, or formulated separately but packaged under a single label approved by a Regulatory Authority and sold together for a single price) (a “Combination Product”), Net
Sales of such Combination Product will be calculated by multiplying actual Net Sales of such Combination Product as determined in the first paragraph of the definition of “Net Sales” by the fraction A/(A+B) where [***]. The weighted
average invoice prices referenced above will be calculated with reference to the prevailing prices during the applicable Calendar Quarter in those top selling countries that equate to [***]% of Net Sales of the applicable Shared Product in the
Territory, with the 

  
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[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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prices weighted in the calculation to reflect the actual relative sales value of the Shared Product in each of the countries to which the calculation relates. If it is not possible to determine
the fraction A/(A+B) based on the criteria specified in the preceding sentence (e.g., if a Shared Product component is not sold separately), the Parties shall determine Net Sales for the Shared Product in such Combination Product in good
faith by mutual agreement [***]. 
  

	 	1.83.	“Non-Challenging Party” has the meaning set forth in Section 14.2.3. 

  

	 	1.84.	“Opt-Out” has the meaning set forth in Section 14.3.1. 

  

	 	1.85.	“Opt-Out Product” has the meaning set forth in Section 14.3.1. 

  

	 	1.86.	“Opt-Out Royalties” has the meaning set forth in Section 14.3.1. 

 

	 	1.87.	“Other Out-of-Pocket Costs” means: 

  

	 	1.87.1.  	[***]; 

  

	 	1.87.2.  	[***]; 

  

	 	1.87.3.  	[***]; 

  

	 	1.87.4.  	[***]. 

  

	 	1.88.	“Party” or “Parties” has the meaning set forth in the Preamble. 

  

	 	1.89.	“Patent Challenge” has the meaning set forth in Section 14.2.3. 

  

	 	1.90.	“Patent Costs” means all Expenses reasonably allocated to the Shared Products for the prosecution, maintenance and enforcement of Patents that Cover the Shared Products. 

 

	 	1.91.	“Pharmacovigilance Agreement” has the meaning set forth in Section 8.1. 

  

	 	1.92.	“Physician Lead” has the meaning set forth in Section 3.2.2. 

  

	 	1.93.	“Product” means a Shared Product or a Follow-On Product. 

  

	 	1.94.	“[***] Claim” means a claim in any Patent that [***]. 

  

	 	1.95.	“Program Expenses” [***] 

  

	 	1.96.	“Project Team” has the meaning set forth in Section 3.2.1. 

  

	 	1.97.	“Quality Agreement” has the meaning set forth in Section 3.3.6. 

  

	 	1.98.	“Quality Costs” mean all Expenses incurred by the Parties and their respective Affiliates in conducting the activities set forth in the Quality Agreement. 

  
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[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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	 	1.99.	“Reconciliation Report” has the meaning set forth in Section 7.6. 

  

	 	1.100.	“Regional Commercialization Plan” has the meaning set forth in Section 5.2. 

  

	 	1.101.	“Research Budget” has the meaning set forth in Section 3.1.2. 

  

	 	1.102.	“Research Costs” [***]. 

  

	 	1.103.	“[***]” has the meaning set forth in Section 6.1. 

  

	 	1.104.	“[***]” has the meaning set forth in Section 6.1. 

  

	 	1.105.	“[***]” has the meaning set forth in Section 12.6. 

  

	 	1.106.	“Selling Party” has the meaning set forth in Section 1.82. 

  

	 	1.107.	“Shared Product” means (a) the Initial Shared Product and (b) if any Follow-On Product is deemed to be a Shared Product pursuant to Section 3.5,
such Follow-On Product. 

  

	 	1.108.	“Shared Target” means (a) [***], (b) [***], (c) the [***], (d) [***] and (e) [***] [***] Target added as a Collaboration Target under the Collaboration Agreement. 

 

	 	1.109.	“Specified Regulatory Activities” [***]. 

  

	 	1.110.	“Subcontract” has the meaning set forth in ARTICLE 9. 

  

	 	1.111.	“Subcontractor” has the meaning set forth in ARTICLE 9. 

  

	 	1.112.	“Sublicense Revenue” [***]. 

  

	 	1.113.	“Sublicensee” means an Affiliate or Third Party, other than a Distributor, to whom either Party (or a Sublicensee or Affiliate) licenses or sublicenses such Party’s rights under the Licensed CRISPR
Technology or the Licensed Vertex Technology, in each case, with respect to a Shared Product during the Co-Co Agreement Term. 

 

	 	1.114.	“Summary Statement” has the meaning set forth in Section 7.5. 

  

	 	1.115.	“Terminated Product” has the meaning set forth in Section 14.4. 

  

	 	1.116.	“Third Party Obligations” means any non-financial encumbrances, obligations, restrictions, or limitations imposed by a [***] that are required to be passed
through to a sublicensee of the [***], as applicable, and relate to a Product or a Shared Target, including field or territory restrictions, covenants, diligence obligations or limitations pertaining to enforcement of intellectual property rights.

  
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[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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	 	1.117.	“Trademark” means all trademarks, service marks, trade names, brand names, sub-brand names, trade dress rights, product configuration rights, certification marks,
collective marks, logos, taglines, slogans, designs or business symbols and all words, names, symbols, colors, shapes, designations or any combination thereof that function as an identifier of source or origin or quality, whether or not registered,
and all statutory and common law rights therein, and all registrations and applications therefor, together with all goodwill associated with, or symbolized by, any of the foregoing. 

 

	 	1.118.	“Vertex” has the meaning set forth in the Preamble. 

  

	 	1.119.	“Vertex In-License Agreements” means Vertex’s or its Affiliates’ agreements with Third Party licensors or sellers listed on Schedule F, which
Schedule shall be updated upon the designation of any Follow-On Product as a Shared Product under this Agreement, to include any agreements pursuant to which Vertex or its Affiliates have in-licensed or acquired any Licensed Vertex Technology with respect to such Shared Product. 

  

	 	1.120.	“Vertex Parent” has the meaning set forth in the Preamble. 

  

	 	1.121.	“Vertex UK” has the meaning set forth in the Preamble. 

 ARTICLE 2 

GOVERNANCE 
  

	 	2.1.	Joint Steering Committee. 

  

	 	2.1.1.	Formation. Within [***] Business Days after the Effective Date, the Parties will establish a joint steering committee (the “JSC”) to provide high-level oversight and decision-making
regarding the activities of the Parties under this Agreement. The JSC will be comprised of [***] representatives from each Party, or such other number of equal representatives as the Parties may mutually agree upon. The JSC will conduct its
responsibilities hereunder in good faith and with reasonable care and diligence. The JSC will meet at least once each Calendar Quarter, or as otherwise mutually agreed by the Parties in writing, on such dates and at such times and places as agreed
to by the members of the JSC, and will use good faith efforts to conduct any such meeting in person. The purpose of the JSC will be to provide the members periodic updates regarding progress of activities pursuant to this Agreement and to address
the matters set forth in Section 2.1.2. Each Party will be responsible for its own expenses relating to attendance at or participation in JSC meetings. 

  

	 	2.1.2.	Responsibilities. The JSC will: 

  

	 	(a)	review and oversee the overall global Development, Manufacture and Commercialization of the Shared Products and the Research of the Follow-On Products in the Field;

  
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	 	(b)	oversee the JDC, JCC, JMC, Patent Coordinators, the Parties’ commercial representatives prior to the establishment of the JCC, and any other committees and working groups established with respect to the Products
and resolving matters on which the JDC, JCC, JMC, Patent Coordinators, commercial representatives or such committees and working groups are unable to reach consensus; 

 

	 	(c)	review and discuss any amendments or updates to the Global Development Plan submitted by the JDC; 

  

	 	(d)	review and discuss the initial Follow-On Research Plan, and any amendments or updates thereto, submitted by the JRC; 

 

	 	(e)	review and discuss any amendments or updates to the Global Manufacturing Plan submitted by the JMC; 

  

	 	(f)	review and discuss the initial Global Commercialization Plan for each Shared Product and any amendments or updates thereto submitted by the JCC; 

 

	 	(g)	upon recommendation by the JRC, and in consultation with the JDC, determine whether each Follow-On Product will be designated as a Shared Product under this Agreement;

  

	 	(h)	review and attempt to resolve any disputes regarding [***]; 

  

	 	(i)	compile, discuss and approve the Integrated Budget no later than [***] of each Calendar Year; and 

  

	 	(j)	perform such other duties as are specifically assigned to the JSC under this Agreement. 

  

	 	2.2.	Joint Research Committee. 

  

	 	2.2.1.	Generally. The JRC established under the Collaboration Agreement will, in addition to its obligations under the Collaboration Agreement, provide oversight and decision-making regarding the Research
activities of the Parties with respect to Follow-On Products under this Agreement. The provisions of Section 3.1.1 of the Collaboration Agreement will apply with respect to meetings of the JRC. For
clarity, any decisions to be made by the JRC under this Agreement will be subject to Section 2.8 of this Agreement, and not Section 3.1.3 of the Collaboration Agreement. 

  
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Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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	 	2.2.2.	Responsibilities. The JRC will: 

  

	 	(a)	oversee the Research of the Follow-On Products by the Parties in the Field in the Territory; 

 

	 	(b)	prepare, discuss and approve, in consultation with the JDC, the initial Follow-On Research Plan (including the Research Budget) and any amendments or updates thereto, and submit
such initial Follow-On Research Plan and such amendments or updates to the JSC for review and discussion; 

  

	 	(c)	submit the approved updated Research Budget for the subsequent Calendar Year to the JSC for inclusion in the Integrated Budget no later than [***] of each Calendar Year; 

 

	 	(d)	review and attempt to resolve any disputes regarding the protocol for any non-clinical study conducted under the Global Development Plan or the
Follow-On Research Plan; 

  

	 	(e)	submit recommendations to the JSC regarding the advisability of designating a Follow-On Product as a Shared Product under this Agreement; 

 

	 	(f)	review, discuss and approve any proposed use of a Subcontractor to conduct a Party’s activities under the Follow-On Research Plan, where the applicable Subcontract is
anticipated to entail payments in excess of $[***], as set forth in ARTICLE 9; and 

  

	 	(g)	perform such other duties as are specifically assigned to the JRC under this Agreement or as may be delegated to the JRC by the JSC. 

 

	 	2.2.3.	Discontinuation of the JRC. Notwithstanding anything to the contrary in the Collaboration Agreement, the JRC will disband with respect to this Agreement upon mutual agreement of the Parties following the
completion of all substantive Research activities with respect to the Follow-On Products under this Agreement, but shall be reestablished if either or both Parties desires to engage in additional Research
activities with respect to any Follow-On Product. 

  

	 	2.3.	Joint Development Committee. 

  

	 	2.3.1.	 Formation. Within [***] Business Days after the Effective Date, the Parties will establish a joint
development committee (the “JDC”) to provide oversight and decision-making regarding the Development activities of the Parties under this Agreement. The JDC will be comprised of [***] representatives from each Party, or such other
number of equal representatives as the Parties may mutually agree upon. The JDC will conduct its responsibilities hereunder in good faith and with reasonable care and diligence. The JDC will meet at least once each

  
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Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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Calendar Quarter, or as otherwise mutually agreed by the Parties, on such dates and at such times and places as agreed to by the members of the JDC, and will use good faith efforts to conduct any
such meeting in person. The purpose of the JDC will be to facilitate and provide the members periodic updates regarding progress of Development activities pursuant to this Agreement and to address the matters set forth in Section 2.3.2. Each
Party will be responsible for its own expenses relating to attendance at or participation in JDC meetings. 

  

	 	2.3.2.	Responsibilities. The JDC will: 

  

	 	(a)	oversee the Development of the Shared Products and the Research strategy for the Follow-On Products by the Parties in the Field in the Territory; 

 

	 	(b)	review, discuss and approve the initial Global Development Plan (including the Development Budget) and any updates or amendments thereto proposed by the Project Team, and submit such Global Development Plan, updates or
amendments to the JSC for review and discussion; 

  

	 	(c)	submit the approved updated Development Budget for the subsequent Calendar Year to the JSC for inclusion in the Integrated Budget no later than [***] of each Calendar Year; 

 

	 	(d)	oversee the Project Team and attempt to resolve any matters on which the Project Team is unable to reach consensus; 

  

	 	(e)	review, discuss and approve clinical and regulatory strategic options for the Shared Products as proposed by the Project Team; 

  

	 	(f)	review, discuss and approve the first IND for the Initial Shared Product to be submitted to the applicable Regulatory Authorities in accordance with Section 3.3.1(c); 

 

	 	(g)	review and consult with the JRC regarding the initial Follow-On Research Plan and any updates or amendments thereto proposed by the JRC; 

 

	 	(h)	inform and provide guidance to the JSC regarding any quality or compliance-related risks with respect to the Development of the Products; 

 

	 	(i)	provide guidance to the Project Team with respect to pre-clinical and clinical quality matters for the Products; 

  
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	 	(j)	review, discuss and approve regulatory activities for the Shared Products proposed by the Project Team, including determining the strategy with respect to each material Regulatory Filing or material regulatory
interaction with respect to the Shared Products; 

  

	 	(k)	allocate responsibilities for the conduct of Clinical Trials under the Global Development Plan to the Parties, which allocation will be consistent with Section 3.2 and Section 3.3.2; 

 

	 	(l)	review, discuss and approve changes to the Project Team membership in accordance with Section 3.2; 

  

	 	(m)	review and attempt to resolve any disputes regarding the protocol or statistical analysis plan for any Clinical Trial conducted under the Global Development Plan; 

 

	 	(n)	provide guidance to the JSC regarding the advisability of designating a Follow-On Product as a Shared Product under this Agreement; 

 

	 	(o)	develop and agree upon the Medical Affairs Plan for the Shared Products and determine the number of MSLs to be deployed in each jurisdiction in the Territory; 

 

	 	(p)	consult with the JMC in connection with its oversight of the Manufacturing Working Group with respect to matters relating to the pre-clinical or clinical Manufacture of the
Products; 

  

	 	(q)	consult with the JMC in connection with its oversight of the pre-clinical and clinical Manufacture of the Products in the Field in the Territory; 

 

	 	(r)	consult with the JMC in connection with its review and discussion of any updates to the Global Manufacturing Plan, including the Manufacturing Budget, proposed by the Manufacturing Working Group; 

 

	 	(s)	consult with the JMC in connection with its review, discussion and approval of the Manufacturing process, and any changes thereto, for each Shared Product; 

 

	 	(t)	consult with the JMC and the Manufacturing Working Group in connection with their review of Manufacturing quality matters for the Products and its oversight of Manufacturing quality matters set forth in the Quality
Agreement; 

  

	 	(u)	consult with the JMC in connection with its review of the results of regulatory and environmental, health and safety inspections and audits related to the Manufacture of the Products and its review and discussions of
steps taken by CRISPR to address any deficiencies noted; 

  
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	 	(v)	review, discuss and approve any proposed use of a Subcontractor to conduct a Party’s activities under the Global Development Plan or the Quality Agreement, where the applicable Subcontract is anticipated to entail
payments in excess of $[***], as set forth in ARTICLE 9; and 

  

	 	(w)	perform such other duties as are specifically assigned to the JDC under this Agreement or as may be delegated to the JDC by the JSC. 

 

	 	2.3.3.	Discontinuation of the JDC. The JDC will disband upon mutual agreement of the Parties following the completion of all substantive Research and Development activities under this Agreement, but shall be
reestablished if either or both Parties desires to engage in additional Research or Development activities with respect to any Product. 

  

	 	2.4.	Joint Commercialization Committee. 

  

	 	2.4.1.	Formation. Within [***] days following Establishment of POC for a Shared Product, the Parties will establish a joint commercialization committee (the “JCC”) to provide oversight and
decision-making regarding the Commercialization activities of the Parties under this Agreement, provided that, prior to establishment of the JCC, commercial representatives of the Parties will meet on an ad hoc basis, as reasonably
requested by either Party, to discuss commercial matters for the Shared Products; and provided, further, that any dispute between such commercial representatives with regard to any commercial matter for a Shared Product shall be
referred to the JSC for resolution. The JCC will be comprised of [***] representatives from each Party, or such other number of equal representatives as the Parties may mutually agree upon. The JCC will conduct its responsibilities hereunder in good
faith and with reasonable care and diligence. The JCC will meet at least once each Calendar Quarter, or as otherwise mutually agreed by the Parties, on such dates and at such times and places as agreed to by the members of the JCC, and will use good
faith efforts to conduct any such meeting in person. The purpose of the JCC will be to facilitate and provide the members periodic updates regarding progress of Commercialization activities pursuant to this Agreement and to address the matters set
forth in Section 2.4.2. Each Party will be responsible for its own expenses relating to attendance at or participation in JCC meetings. 

  
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	 	2.4.2.	Responsibilities. The JCC will: 

  

	 	(a)	oversee the Commercialization of the Shared Products by the Parties in the Field in the Territory; 

  

	 	(b)	develop and approve a Global Commercialization Plan for each Shared Product and submit such Global Commercialization Plan to the JSC for review and discussion; 

 

	 	(c)	amend the Global Commercialization Plan for each Shared Product on an annual basis (or more frequently as needed), approve such amendments and submit such updated Global Commercialization Plans to the JSC for review and
discussion; 

  

	 	(d)	review, discuss and approve the initial Regional Commercialization Plans for each Shared Product and any amendments or updates thereto submitted by Parties; 

 

	 	(e)	select product Trademarks for each Shared Product throughout the world consistent with the Global Brand Strategy; 

  

	 	(f)	advise the JMC in connection with its oversight of the Manufacturing Working Group with respect to matters relating to the commercial Manufacture of the Shared Products; 

 

	 	(g)	advise the JMC in connection with its oversight of the commercial Manufacture of the Shared Products in the Field in the Territory; 

  

	 	(h)	advise the JMC in connection with its review and discussion of any updates to the Global Manufacturing Plan, including the Manufacturing Budget, proposed by the Manufacturing Working Group; 

 

	 	(i)	submit the approved updated Global Commercialization Budget for the subsequent Calendar Year to the JSC for inclusion in the Integrated Budget no later than [***] of each Calendar Year; 

 

	 	(j)	advise the JMC in connection with its review, discussion and approval of the Manufacturing process, and any changes thereto, for each Shared Product; 

 

	 	(k)	review, discuss and approve any proposed use of a Subcontractor to conduct a Party’s activities under a Global Commercialization Plan, where the applicable Subcontract is anticipated to entail payments in excess of
$[***], as set forth in ARTICLE 9; and 

  

	 	(l)	perform such other duties as are specifically assigned to the JCC under this Agreement or as may be delegated to the JCC by the JSC. 

  
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	 	2.5.	Joint Manufacturing Committee. 

  

	 	2.5.1.	Formation. Within [***] Business Days after the Effective Date, the Parties will establish a joint manufacturing committee (the “JMC”) to provide oversight and decision-making regarding
the Manufacture of pre-clinical, clinical and commercial supply of the Products under this Agreement. The JMC will be comprised of [***] representatives from each Party, or such other number of equal
representatives as the Parties may mutually agree upon. The JMC will conduct its responsibilities hereunder in good faith and with reasonable care and diligence. The JMC will meet on a [***] basis for the first [***] after the Effective Date, or as
otherwise mutually agreed by the Parties, and, thereafter, at least once each Calendar Quarter, or as otherwise mutually agreed by the Parties, on such dates and at such times and places as agreed to by the members of the JMC, and will use good
faith efforts to conduct any such meeting in person. The purpose of the JMC will be to facilitate and provide the members periodic updates regarding progress of Manufacturing activities pursuant to this Agreement and to address the matters set forth
in Section 2.5.2. Each Party will be responsible for its own expenses relating to attendance at or participation in JMC meetings. 

  

	 	2.5.2.	Responsibilities. The JMC will: 

  

	 	(a)	consistent with the provisions of Section 6.2, designate the team leader and other members of the Manufacturing Working Group, which team leader and members shall be chosen from among the personnel of the Parties
having relevant experience, and allocate the respective roles on the Manufacturing Working Group among such members; 

  

	 	(b)	review on a periodic basis and make any necessary changes to the team leader and other members of the Manufacturing Working Group, or the allocation of roles among such members; 

 

	 	(c)	oversee the Manufacturing Working Group, in consultation with the JDC, with respect to matters relating to the pre-clinical or clinical Manufacture of the Products;

  

	 	(d)	oversee the Manufacturing Working Group, in consultation with the JCC, with respect to matters relating to the commercial Manufacture of the Products; 

 

	 	(e)	oversee the Manufacturing Working Group, in consultation with the JDC, with respect to Manufacturing quality matters for the Products; 

  
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	 	(f)	oversee the Manufacturing Working Group, in consultation with the JDC, with respect to the review of the results of regulatory and environmental, health and safety inspections and audits related to the Manufacture of
the Products and the review and discussion of steps taken by CRISPR to address any deficiencies noted; 

  

	 	(g)	oversee the Manufacture of the Products in the Field in the Territory, in consultation with the JDC or JCC, as applicable; 

  

	 	(h)	allocate responsibilities for Manufacturing activities with respect to the Products in the Field in the Territory between the Parties; 

 

	 	(i)	review, discuss and approve, in consultation with the JDC or the JCC, as applicable, the initial Global Manufacturing Plan, including the Manufacturing Budget, and any updates or amendments thereto proposed by the
Manufacturing Working Group, and submit such Global Manufacturing Plan, updates or amendments to the JSC for review and discussion; 

  

	 	(j)	submit the approved updated Manufacturing Budget for the subsequent Calendar Year to the JSC for inclusion in the Integrated Budget no later than [***] of each Calendar Year; 

 

	 	(k)	review, discuss and approve the Manufacturing process for each Shared Product proposed by the Manufacturing Working Group, and review, discuss and approve any changes to such Manufacturing process proposed by the
Manufacturing Working Group, in each case, in consultation with the JDC or JCC, as applicable; 

  

	 	(l)	review, discuss and approve any recommendations of the Manufacturing Working Group regarding capacity planning, supply plans and supply continuity planning for the Products; 

 

	 	(m)	select and approve each CMO and contract testing facility to be engaged with respect to each phase of the Manufacture of any Product [***]; 

 

	 	(n)	determine whether any Manufacturing technology transfer between the Parties is necessary; 

  

	 	(o)	review, discuss and approve any proposed use of a Subcontractor to conduct a Party’s activities under the Global Manufacturing Plan, where the applicable Subcontract is anticipated to entail payments in excess of
$[***], as set forth in ARTICLE 9; and 

  

	 	(p)	perform such other duties as are specifically assigned to the JMC under this Agreement or as may be delegated to the JMC by the JSC. 

  
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	 	2.6.	Alliance Managers. 

  

	 	2.6.1.	Appointment. Each Party will appoint a representative of such Party to act as its alliance manager under this Agreement (each, an “Alliance Manager”). Each Party may replace its Alliance
Manager at any time by written notice to the other Party. 

  

	 	2.6.2.	Specific Responsibilities. The Alliance Managers will serve as the primary contact point between the Parties for the purpose of providing each Party with information regarding the other Party’s
activities pursuant to this Agreement and will have the following responsibilities: 

  

	 	(a)	schedule meetings of the JSC, JDC, JCC, and JMC and circulate draft written minutes from each meeting within 14 days after each such meeting to the applicable committee, all other committees and the Project Team;

  

	 	(b)	facilitate the flow of information and otherwise promote communication, coordination and collaboration between the Parties; 

  

	 	(c)	coordinate the various functional representatives of each Party, as appropriate, in developing and executing strategies and plans for the Products; 

 

	 	(d)	provide a single point of communication for seeking consensus both internally within the respective Party’s organization and between the Parties regarding key strategy and planning issues; 

 

	 	(e)	coordinate and facilitate budget, finance and billing activities as overseen by the JSC, JDC, JCC, and JMC; and 

  

	 	(f)	perform such other functions as requested by the JSC, JDC, JCC, or JMC. 

  

	 	2.7.	Other Committees. The Parties may, by mutual agreement, form such other committees or working groups as may be necessary or desirable to facilitate the activities under this Agreement. 

 

	 	2.8.	 Decision-Making. The JSC, JDC, JCC, JMC, JRC and all other committees and working groups will
operate by consensus with the goal being to leverage capabilities, minimize cost and maximize the chance of successfully Developing and Commercializing each Shared Product throughout the Territory in a commercially reasonable manner consistent with
Applicable Laws and this Agreement. Disputes arising out of the JDC, JCC, JMC, JRC or any other committee or working group will be escalated to the JSC for resolution. Disputes arising at the JSC will be referred to the Executive Officers for
resolution, whereupon the Executive Officers will meet in person if requested by either such 

  
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Executive Officer and attempt in good faith to resolve such dispute by negotiation and consultation for a [***]-day period following such referral. If the
Executive Officers do not resolve such dispute within such [***]-day period, such dispute shall be [***] Notwithstanding anything to the contrary, none of the JSC, JDC, JCC, JMC, JRC or any other committee or
working group will have the authority to amend or waive compliance with any of the terms of this Agreement. For clarity, with respect to the Global Development Plan, the Medical Affairs Plan, Global Manufacturing Plan or any Global Commercialization
Plan or Regional Commercialization Plan, each Party shall have decision-making authority regarding its implementation of such Global Development Plan, Medical Affairs Plan, Global Manufacturing Plan, Global Commercialization Plan or Regional
Commercialization Plan in its respective territory, in such Party’s sole discretion, provided that such implementation is consistent with the then-approved applicable plan and budget, and any such implementation decision shall not be
subject to dispute resolution by any committee or working group, escalation to the Executive Officers [***] pursuant to this Section 2.8. 

ARTICLE 3 
 DEVELOPMENT

  

	 	3.1.	Research and Development Plans. 

  

	 	3.1.1.	Global Development Plan. The JDC will oversee the Development of the Shared Products and the Research of Follow-On Products by the Parties in the Field in the
Territory. The Shared Products will be Developed in accordance with a global development plan (the “Global Development Plan”), which will include the Development Budget (as defined below), which will be prepared by the Project Team
within [***] days after the Effective Date and shall be approved by the JDC thereafter. Unless otherwise agreed by the Parties in writing, the Global Development Plan will at all times include a plan for the Development of the Shared Products in the
Territory through Regulatory Approval, including a regulatory strategy, high-level study design criteria, an allocation of responsibilities between the Parties, timelines and a budget for activities conducted under the Global Development Plan (the
“Development Budget”). Until such time as the initial Development Budget has been established in accordance with this Agreement, each Party will incur Program Expenses in a manner substantially consistent with the plans and budgets
previously discussed by the Parties and such Program Expenses will be shared as provided in ARTICLE 7. On [***] basis (or more frequently as needed), the Project Team will update the Global Development Plan and will submit the updated Global
Development Plan to the JDC for review and discussion. The JDC will review and discuss the updated Global Development Plan and submit such updated Global Development Plan to the JSC for review, discussion and approval. 

  
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	 	3.1.2.	Follow-On Research Plan. The Parties will conduct Research activities with respect to the Follow-On Products in
accordance with a Follow-On research plan (the “Follow-On Research Plan”), including a budget for activities conducted under the Follow-On Research Plan (the “Research Budget”), the initial version of which will be prepared by the JRC in consultation with the JDC promptly following the Effective Date and submitted to the JSC
for review, discussion and approval. In addition[***] basis (or more frequently as needed), the JRC in consultation with the JDC will update the Follow-On Research Plan and will submit the updated Follow-On Research Plan to the JSC for review, discussion and approval. For clarity, all Research Costs with respect to the Follow-On Products shall be treated under this
Agreement as part of Program Expenses, and not under Section 2.10 or Section 7.4 of the Collaboration Agreement. 

  

	 	3.2.	Project Team. 

  

	 	3.2.1.	Formation; Responsibilities. The Parties will establish a project team (the “Project Team”) to oversee and coordinate activities under the Global Development Plan. The Project Team
will include members from each function identified on Schedule C-1. The initial Project Team members are set forth on Schedule C-2. If a Project Team
member is no longer available to serve on the Project Team, the Parties will meet and discuss an appropriate replacement for such Project Team member from either Party, taking into account each Party’s expertise and resources in the relevant
functional area. The appointment of the replacement Project Team member will require the JDC’s approval. Any member of the Project Team who is not dedicated to the Products under this Agreement on a full-time basis must be sufficiently
dedicated to such Products to permit such person to be reasonably and consistently available to participate in the activities of the Project Team. The Project Team will be responsible for: (i) defining clinical and regulatory strategic options
for recommendation to the JDC; (ii) providing guidance on regulatory activities for recommendation to the JDC; (iii) preparing joint deliverables, including updates to the Global Development Plan for submission to the JDC;
(iv) preparing study protocols and statistical analysis plans for approval in accordance with Section 3.3.2(b); (v) preparing regulatory documentation for recommendation to the JDC; (vi) proposing goals, budgets and timelines for
joint Development activities to the JDC; (vii) driving execution and ensuring the progress of Development activities in accordance with the Global Development Plan; and (viii) such additional matters as may be determined by the JDC. The
Project Team shall act by consensus, with each Party’s representatives on the Project Team having collectively one vote. If the Project Team cannot reach consensus, the matter will be referred to the JDC for resolution. 

  
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	 	3.2.2.	Physician Leads and Clinical Operations Study Leads. Each Party will be responsible for designating its own physician leads (each, a “Physician Lead”) and clinical operations study
leads (each, a “Clinical Operations Study Lead”), subject to the approval of the JDC. [***] will initially appoint the Physician Lead for each Initial Clinical Trial; provided that (i) with respect to the Initial
Clinical Trial for sickle cell disease, the Physician Lead appointed by [***] shall be responsible for such Initial Clinical [***], and (ii) the Physician Leads for each Initial Clinical Trial will at all times cooperate to share information
and oversee both Initial Clinical Trials in a collaborative manner. [***] will appoint the Clinical Operations Study Lead for the Initial Clinical Trial for beta-thalassemia and [***] will appoint the Clinical Operations Study Lead for the Initial
Clinical Trial for sickle cell disease. With respect to each Clinical Trial other than an Initial Clinical Trial, the JDC will determine the roles and responsibilities of the Parties’ respective Physician Leads and Clinical Operations Study
Leads. 

  

	 	3.2.3.	Clinical Pharmacology. [***] will be responsible for all clinical pharmacology matters with respect to the Shared Products, as further detailed in the Global Development Plan. 

 

	 	3.2.4.	Biostatistics. [***] will initially be responsible for biostatistics matters with respect to the Shared Products including the performance of the biostatistics activities set forth in the Global
Development Plan in accordance with the Global Development Plan. [***] upon [***], as determined by the JDC [***] 

  

	 	3.2.5.	Conduct; Reporting. The Project Team will conduct its responsibilities under the Global Development Plan in good faith and with reasonable care and diligence. The Project Team will provide the JDC
with periodic updates (but no less than quarterly) regarding the progress of activities pursuant to the Global Development Plan. 

  

	 	3.3.	Development Activities. 

  

	 	3.3.1.	Regulatory Matters. 

  

	 	(a)	Regulatory activities will be jointly carried out by the Parties and the Project Team under the guidance of the JDC in accordance with this Section 3.3.1. The Party responsible for regulatory activities under this
Section 3.3.1 will be responsible for keeping the Project Team apprised as to the status of such activities and consulting with the Project Team as provided herein and the Project Team will be responsible for keeping the JDC apprised as to the
status of such activities and consulting with the JDC as provided herein. All regulatory activities will be conducted using [***] standard regulatory operating procedures and systems. 

  
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	 	(b)	All Regulatory Filings and Regulatory Approvals that relate to the Shared Products shall be filed by and held in the name of [***] or its designated Affiliates, except that: (i) [***] shall initially hold the
[***] CTAs submitted for the first Shared Product for beta-thalassemia to Regulatory Authorities in the [***] in the name of [***] or its designated Affiliates, and, unless the JDC otherwise determines that the transfer of such CTAs to [***] as
provided herein [***], shall initiate transfer of such CTAs to [***] within [***] days after approval or rejection of such CTAs in any [***], and thereafter, unless otherwise agreed by the Parties in writing, such CTAs, and any subsequent CTA for a
Shared Product, shall be held in the name of [***] or its designated Affiliate and [***] shall be the sponsor for the Initial Clinical Trials; (ii) [***] shall initially hold the first IND submitted for the first Shared Product to the FDA in the
name of [***] or its designated Affiliates, and, unless the JDC otherwise determines that the transfer of such IND to [***] as provided herein [***], shall initiate transfer of such IND to [***] no later than [***] after such IND becomes effective
or the FDA places a hold on such IND (the “IND Transfer Date”), and thereafter, unless otherwise agreed by the Parties in writing, such IND, and any subsequent IND for a Shared Product, shall be held in the name of [***] or its
designated Affiliate; and (iii) [***] or its designated Affiliate, and thereafter [***] or its designated Affiliate. Each Party agrees to take such further actions as may be reasonably necessary to effect the transfers set forth in this
Section 3.3.1(b). The Project Team will oversee, monitor and manage the transfers contemplated by this Section 3.3.1(b). A transfer initiated under this Section 3.3.1(b) will proceed without undue delay and shall not be halted,
delayed or paused after it has been so initiated and each Party will use Commercially Reasonable Efforts to effectuate such transfer as soon as possible. Prior to the transfer of any Regulatory Filing to [***] under this Section 3.3.1(b), [***]
will provide [***] with copies of all source documents related to such first three CTAs or such IND, and any updates thereto. 

  

	 	(c)	 The Parties acknowledge that, prior to the Effective Date, [***] submitted the [***] for the Initial Shared
Product for beta-thalassemia to Regulatory Authorities in [***] in the name of [***] or its designated Affiliate, and the Parties acknowledge and agree that, after the Effective Date, [***] will submit a [***] for the Initial Shared Product for
beta-thalassemia in [***] in the name of [***] or its designated Affiliate, in substantially the same form as the [***] such CTAs. With respect to the first IND for the Initial Shared Product to be submitted by [***] after the Effective Date as
provided in Section 3.3.1(b), [***], in 

  
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consultation with the Project Team and in accordance with the strategy approved by the JDC, will prepare such IND, and provide [***] with advance drafts of such IND, and any related regulatory
submissions or correspondence, that [***] plans to submit to the applicable Regulatory Authority as drafts are prepared and in all cases sufficiently in advance so as to afford [***] a meaningful opportunity to review such IND. [***] may provide
comments regarding such IND, and related regulatory submissions or correspondence, prior to their submission, and [***] will incorporate any such comments. [***] will file such IND, and submit such related regulatory submissions or correspondence,
only in the final form approved by the JDC. Thereafter, until such time that such CTAs and such IND are transferred to [***], [***] will oversee, monitor and manage all regulatory interactions and communications with Regulatory Authorities. [***]
may provide comments regarding such interactions and correspondence, and [***] will incorporate any such comments. [***] will also provide [***] with final copies of all material submissions it makes to, and all material correspondence it receives
from, a Regulatory Authority pertaining to such CTAs and such IND for the Initial Shared Product, within [***] Business Days after such submission or receipt. After [***] transfers such CTAs and IND to [***], [***] shall be responsible for all
communications and correspondence with applicable Regulatory Authorities, consistent with Section 3.3.1(d). 

  

	 	(d)	 Following transfer of the [***]CTAs in beta-thalassemia and the first IND for the Initial Shared Product to
[***], [***] shall use Commercially Reasonable Efforts, in consultation with [***], to seek to obtain Regulatory Approvals for the Shared Products in the Field and to maintain such Regulatory Approvals outside of the [***]. [***], [***] shall use
Commercially Reasonable Efforts, in consultation with [***], to [***]. Subject to the terms of this Agreement, [***], in consultation with the Project Team and in accordance with the strategy approved by the JDC, will lead all regulatory activities,
including all regulatory interactions and communications and determining the labeling strategy for the Shared Product, and will prepare and submit all Regulatory Filings with respect to the Shared Products to the appropriate Regulatory Authorities
in the Territory, provided that [***] may review and comment on such strategies and submissions, which comments [***] will consider in good faith (and the Parties will discuss any material comments that are not incorporated or otherwise
reflected in any of the foregoing), provided, further, that [***], in consultation with the Project Team and in accordance with the strategy approved by the JDC, will oversee,

  
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monitor and manage any such regulatory interactions, communications and filings [***]. [***] will provide [***] with advance drafts of any material documents or other material correspondence
pertaining to the Shared Products that [***] plans to submit to any Regulatory Authority as drafts are prepared and in all cases sufficiently in advance so as to afford [***] a meaningful opportunity to review such drafts. [***] may provide comments
regarding such documents and other correspondence prior to their submission, which comments [***] will consider in good faith (and the Parties will discuss any material comments that are not incorporated or otherwise reflected in any of the
foregoing); provided that, notwithstanding anything to the contrary set forth in this Agreement, with respect to any Specified Regulatory Activities to be performed by or on behalf of [***], unless otherwise required by Applicable Law [***]
will not perform, and will prevent others from performing, any Specified Regulatory Activities [***]. Notwithstanding the foregoing, [***], in consultation with the Project Team and in accordance with the strategy approved by the JDC, will control
all regulatory activities with respect [***] for each Shared Product [***] in accordance with the strategy approved by the JDC. [***] will provide [***] with advance drafts of any material documents or other material correspondence pertaining to the
Shared Products that [***] plans to submit to any Regulatory Authority with respect [***] as drafts are prepared and in all cases sufficiently in advance so as to afford [***] a meaningful opportunity to review such drafts. [***] may provide
comments regarding such documents and other correspondence prior to their submission, which comments [***] will consider in good faith (and the Parties will discuss any material comments that are not incorporated or otherwise reflected in any of the
foregoing); provided that, notwithstanding anything to the contrary set forth in this Agreement, with respect to any Specified Regulatory Activities to be performed by or on behalf of [***], unless otherwise required by Applicable Law
[***], [***] will not perform, and will prevent others from performing, any Specified Regulatory Activities [***]. Each Party will provide the other Party with copies of all material submissions it makes to, and material correspondence it receives
from, a Regulatory Authority pertaining to a Regulatory Approval of the Shared Products within [***] Business Days after such submission or receipt. To the extent practicable, each Party will provide the other Party with reasonable advance notice of
any meeting or teleconference with any Regulatory Authority with respect to the Shared Products. Subject to Applicable Law, the other Party will have the right to send [***] plus up to [***] additional representatives

  
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of such Party to participate as observers in all material meetings, conferences and discussions by the responsible Party with Regulatory Authorities pertaining to Development of the Shared
Products or Regulatory Approval of the Shared Products. Each Party shall promptly respond (and in no event later than [***] Business Days) to any request from the other Party for additional information arising from, relating to or otherwise in
connection with any of the regulatory matters described or contemplated in this Section 3.3.1. 

  

	 	3.3.2.	Clinical Trials. 

  

	 	(a)	The JDC will allocate responsibility between the Parties for the conduct of Clinical Trials and the various other Development activities addressed in the Global Development Plan, which allocation will be consistent with
this Section 3.3.2 and Section 3.2. From and after the effective time of the transfer of the [***] Agreement to [***] contemplated by Section 3.3.2(h), all Clinical Trials will be conducted using [***] standard Clinical Trial
operating procedures and systems. 

  

	 	(b)	The Parties will cooperate to develop the protocol and statistical analysis plan for each Clinical Trial under the Global Development Plan and submit each such protocol and statistical analysis plan for review and
approval by [***] internal joint protocol peer review committee, and a representative of [***] shall serve as co-chair of any such committee (or any sub-committee
thereof) and shall have the right to fully participate in any such review and approval process and such co-chair shall have the right to invite a reasonable number of [***] representatives to participate in
the activities of any such committee. Each protocol and statistical analysis plan will be deemed to be final following approval by [***] internal joint protocol peer review committee (as so described) with [***] consent. In the event of any dispute
regarding any such protocol or statistical analysis plan, the Parties may submit such dispute to the JDC for resolution. [***]. 

  

	 	(c)	The Party whose representative is the Clinical Operations Study Lead for a Clinical Trial will have the responsibility for directing the packaging and labeling of clinical drug supplies for such Clinical Trial, unless
otherwise agreed by the Parties in writing. In furtherance of the forgoing, the Clinical Operations Study Lead will coordinate with the Clinical Operations Program Lead and the Project Team when directing such labeling. 

  
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	 	(d)	The Parties will determine by mutual agreement how to implement and carry out the day-to-day operations with respect to Clinical Trials,
including staffing, timelines, number and location of Clinical Trial sites, provided that such determinations shall at all times be consistent with the Global Development Plan (including the Development Budget) and this Agreement. The
Clinical Operations Program Lead will oversee, manage and direct the day-to-day operations of the applicable Clinical Trial(s), consistent with the applicable Global
Development Plan (including the Development Budget) and this Agreement. Without limiting the generality of the foregoing, the Clinical Operations Program Lead can direct employees, consultants and service providers of either Party and its Affiliates
to perform day-to-day Clinical Trial activities consistent with the applicable Global Development Plan (including the Development Budget) and in accordance with approved
processes, GCP and ICH requirements. In furtherance of the foregoing, each Party will support the authority of the Clinical Operations Program Lead by cause its employees, consultants and service providers to cooperate with the Clinical Operations
Program Lead and act consistently with the Clinical Operations Program Lead’s directions with respect to day-to-day Clinical Trial activities. 

 

	 	(e)	With respect to each Initial Clinical Trial, and any subsequent Clinical Trial for which a Party engages a CRO, the other Party will have the right to review and approve all clinical trial agreement templates,
confidential disclosure agreement templates and any other site-facing templates used by the applicable CRO in contracting with clinical trial sites, and any modifications or updates thereto, as well as any revisions thereto proposed by the
applicable clinical trial sites. The Party engaging a CRO shall ensure that such CRO uses only clinical trial agreement templates, confidential disclosure agreement templates and other site-facing templates that have been reviewed and approved by
the other Party in their final form. Any such clinical trial agreement template, confidentiality agreement template or other site-facing template shall provide that such clinical trial agreement is fully assignable to the other Party or its
Affiliate without consent of the clinical trial site. In addition, prior to the commencement of each Initial Clinical Trial, each Party will obtain and provide to the other Party for review a copy of each clinical trial site’s insurance policy
with respect to such Initial Clinical Trial. Notwithstanding anything to the contrary, each Party will provide to the other Party with all standard operating procedures, audit results and other information received by such Party under any CRO
agreement, to the extent related to the Shared Products. 

  
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	 	(f)	[***] will be solely responsible for management of all Clinical Trial data with respect to the Shared Products, provided that [***] shall provide [***] and its designees with access to all Clinical Trial data as
follows: (i) upon [***] reasonable request, provide [***] with [***] from [***] operational clinical database within [***] Business Day of generation of such reports (but in no event later than [***] Business Days after the date of [***]
request); (ii) [***], in each case, [***] by [***] clinical management; (iii) [***]; (iv) access [***]; (v) an electronic copy of [***]; and (vi) [***] will provide [***], upon [***] reasonable request, [***] will provide [***] with [***] from [***]
within [***] Business Day of [***] (but in no event later than [***] Business Days after the date of [***] request). 

  

	 	(g)	The sponsor for each Clinical Trial under the Global Development Plan will be responsible for ensuring compliance with all Applicable Law. 

 

	 	(h)	Promptly following the [***] under the first CTA and IND for the Initial Shared Products, [***] shall transfer and assign to [***] the [***] Agreement. Following such transfer, [***] may elect, subject to the terms
hereof, to terminate the [***] Agreement and utilize [***] for the Initial Clinical Trial for beta-thalassemia unless the JDC determines that [***] then-existing internal clinical operations staff (or, if applicable, the clinical operations staff of
[***] or the [***] Agreement would [***] will determine in its sole discretion whether the Initial Clinical Trial for sickle cell[***]disease will be conducted under the [***] Agreement or [***]. 

 

	 	(i)	Each Party shall promptly respond (and in no event later than [***] Business Days) to any request from the other Party for additional information arising from, relating to or otherwise in connection with any of the
clinical trial matters (including Clinical Trial data) described or contemplated in this Section 3.3.2. 

  

	 	3.3.3.	 Non-Clinical Studies. [***] will be responsible for
conducting all non-clinical studies and other Research with respect to the Products, in accordance with the Global Development Plan and the Follow-On Research Plan, as
applicable, subject to the oversight of the JDC in accordance with Section 2.3.2(a). The Parties will cooperate to develop the protocol for each non-clinical study under the Global Development Plan or the
Follow-On Research Plan, as applicable, and submit each such protocol for review and approval pursuant to each Party’s internal review process. Each protocol will be deemed to be final following approval
under each Party’s internal review process. The Parties shall 

  
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coordinate to ensure that the same version of each protocol is approved by both Parties. In the event of any dispute regarding any such protocol, the Parties may submit such dispute to the JRC
for resolution. [***] shall provide to [***] any interim or final data or results from each non-clinical study of a Product promptly following [***] receipt thereof. 

 

	 	3.3.4.	Independent Activities. Each Party shall have the right to propose additional Clinical Trials for inclusion in the Global Development Plan. A Party proposing an additional Clinical Trial shall provide to
the other Party, through the JDC, a summary and rationale for such additional Clinical Trial. If the other Party does not agree to include such additional Clinical Trial in the Global Development Plan, (a) [***] and (b) [***]; provided that
neither Party may conduct any Clinical Trial that [***]. The non-requesting Party will not have the right to use the data resulting from any Clinical Trial conducted by one Party outside of the Global
Development Plan as permitted under this Section 3.3.4 in a substantive manner as the basis for obtaining new or expanded Regulatory Approval for a Shared Product in the Field or for post-marketing Regulatory Filings or commercial purposes for
a Shared Product in the Field; provided that, if such Party desires to use the data resulting from such Clinical Trial in a substantive manner as the basis for obtaining new or expanded Regulatory Approval for a Shared Product in the Field or
for commercial purposes for a Shared Product in the Field, such Party shall so inform the requesting Party and shall reimburse the requesting Party for [***]% of the Expenses of such Clinical Trial that would, if such Clinical Trial were included in
the Global Development Plan, have constituted Development Costs. If [***] is the non-requesting Party, following such reimbursement, [***] shall have the right to use the data resulting from such Clinical
Trial for such purposes. If [***] is the non-requesting party, following such reimbursement, [***] shall have the right to direct [***] to use the data resulting from such Clinical Trial for such purposes in
conducting its activities in accordance with Section 3.3.1, [***], to utilize such data in post-marketing Regulatory Filings. Upon the request of the Party conducting an additional Clinical Trial as permitted under this Section 3.3.4, the
Manufacturing Working Group shall use Commercially Reasonable Efforts to Manufacture or have Manufactured, at the requesting Party’s expense, clinical supplies for the additional Clinical Trial, but in any event, the Manufacturing Working Group
shall not be required to supply clinical supplies for any Clinical Trial being conducted pursuant to this Section 3.3.4 [***]. 

  

	 	3.3.5.	Briefing the JDC. At each scheduled meeting of the JDC, each Party will provide detailed progress updates on activities conducted under the Global Development Plan and the
Follow-On Research Plan, along with a summary of data associated with such activities, which updates and summaries will be provided to JDC members at least [***] days in advance of any JDC meeting. Such
updates and summaries will be provided in a format mutually agreed to by the Parties. 

  
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	 	3.3.6.	Quality Agreement. As promptly as possible, but no later than [***] days after the Effective Date and in any case prior to the transfer of the first CTA for the Initial Shared Product to [***], the Parties
will negotiate in good faith and agree on a quality agreement for the Products, including quality analysis and control criteria for the Manufacture of the Products, electronic system compliance, responsibilities for managing Clinical Trials and pre-clinical studies, and joint decision-making criteria (the “Quality Agreement”). The Quality Agreement will be consistent with the relevant provisions of the Pharmacovigilance Agreement.

  

	 	3.4.	Diligence. Each Party will use Commercially Reasonable Efforts to execute and to perform, or cause to be performed, the activities assigned to it in the Global Development Plan and the Follow-On Research Plan, and to cooperate with the other Party in carrying out the Global Development Plan and the Follow-On Research Plan in accordance with the timelines
therein. Each Party and its Affiliates will conduct its Research and Development activities in good scientific manner and in compliance with Applicable Law. Notwithstanding anything to the contrary contained herein, a Party or its Affiliates will
not be obligated to undertake or continue any Research or Development activities with respect to any Product if such Party (or any of its Affiliates) reasonably determines that performance of such Research or Development activity would violate
Applicable Law or infringe or misappropriate a Third Party’s intellectual property. 

  

	 	3.5.	Follow-On Products. At any time during the Co-Co Agreement Term, either Party may propose to the other Party, through the
JRC, to designate a Follow-On Product as an additional Shared Product under this Agreement. The JSC, taking into consideration the recommendations of the JRC and in consultation with the JDC, shall discuss and
determine whether to designate such Follow-On Product as an additional Shared Product under this Agreement. Effective as of any such determination by the JSC, such
Follow-On Product shall be deemed a Shared Product for all purposes under this Agreement. Notwithstanding anything to the contrary in this Agreement, any decision to designate a
Follow-On Product as an additional Shared Product under this Agreement shall be made only by mutual agreement of the Parties through the JSC, and shall not be subject to any Third Party dispute resolution.

  

	 	3.6.	Additional [***] Targets. This Agreement constitutes the Joint Development and Commercialization Agreement for each of [***]. The Parties shall conduct Research activities with respect
to each of [***] [***] [***] Target that is included as a Collaboration Target in accordance with the Follow-On Research Plan. 

  
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[***] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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 ARTICLE 4 

MEDICAL AFFAIRS ACTIVITIES. 

The Parties, acting through the JDC, will develop and agree upon a global medical affairs plan for the Shared Products that describes the
Medical Affairs Activities to be conducted in the Territory, key tactics and strategies for implementing those activities, the relative responsibilities of the Parties and the associated budget for such activities (such plan, the “Medical
Affairs Plan” and such budget, the “Medical Affairs Budget”). The Parties will update the Medical Affairs Budget on an annual basis no later than [***], and submit such updated Medical Affairs Budget to the JSC for
inclusion in the Integrated Budget. CRISPR will lead and manage Medical Affairs Activities in the United States and Vertex will lead and manage Medical Affairs Activities outside of the United States, in each case, in accordance with the Medical
Affairs Plan. The number of MSLs to be deployed in each jurisdiction with respect to a Shared Product will be determined by the JDC promptly after Establishment of POC for such Shared Product. 

ARTICLE 5 

COMMERCIALIZATION. 
  

	 	5.1.	Responsibilities. CRISPR shall be the Commercializing lead for the Shared Products in the United States and Vertex shall be the Commercializing lead for the Shared Products outside of the United States.
The Commercializing lead, with respect to the United States or outside of the United States, respectively, shall be referred to herein as the “Lead Commercialization Party” for such jurisdiction (as applicable, the “Lead
Commercialization Party”). The Lead Commercialization Party with respect to a jurisdiction will have sole responsibility for the conduct of Commercialization activities with respect to each Shared Product in such jurisdiction in its sole
discretion, subject to compliance with the approved Global Commercialization Plan, Global Commercialization Budget and Regional Commercialization Plan(s) for such Shared Product, and the provisions of this ARTICLE 5. 

 

	 	5.2.	 Commercialization Plans. The JCC will oversee the Commercialization of the Shared Products by the
Parties in the Field in the Territory. No later than [***] prior to the anticipated launch of each Shared Product in the first country in the Territory, the JCC will develop and submit to the JSC for approval a global Commercialization plan (each, a
“Global Commercialization Plan”) that sets forth at a high level the Commercialization activities to be undertaken by the Parties with respect to the Commercialization of such Shared Product in the Territory. The JCC will update
each Global Commercialization Plan on an annual basis (or more frequently as needed) and submit it to the JSC for approval. Each Global Commercialization Plan will include (a) a Global Brand Strategy, (b) a Global Communication Strategy,
(c) a Global Market Access and Value Strategy, (d) a Global Pricing Strategy, and (e) a budget for activities conducted under the Global Commercialization Plan (the “Global Commercialization Budget”). In addition, no
later than [***] prior to the anticipated launch of each Shared Product in the applicable country, each Lead Commercialization Party will develop one or 

  
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Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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more regional or country-level Commercialization plans (each, a “Regional Commercialization Plan”) for (a) in the case of CRISPR, the U.S. and (b) in the case of
Vertex, the Major [***] Countries. Each Party will submit such Regional Commercialization Plans to the JCC for review and approval. Each Lead Commercialization Party will update its Regional Commercialization Plan(s) on an annual basis (or more
frequently as needed) and submit them to the JCC for approval. Each such Regional Commercialization Plan must be consistent at all times with the then-current Global Commercialization Plan (including the Global Commercialization Budget) for the
applicable Shared Product. 

  

	 	5.3.	Elements of Global Commercialization Plan. Without limiting Section 5.2, for each Shared Product, the JCC will develop each of the following strategies and submit them to the JSC for approval as part
of the Global Commercialization Plan in accordance with Section 5.2: 

  

	 	5.3.1.	a global brand strategy for such Shared Product in the Territory, including a life cycle plan, launch sequencing, brand vision, positioning, key messaging, concept and imagery, Trademarks (including name and logos) and
supporting market research (the “Global Brand Strategy”); 

  

	 	5.3.2.	a global communication strategy for such Shared Product in the Territory, including plans for the coordination of messages between the Parties, public relations, conferences and exhibitions and other external meetings
and communications, publications and symposia, congress presence and internet activities (the “Global Communication Strategy”); 

  

	 	5.3.3.	a strategy for the managed markets and global market access for such Shared Product, including payer strategy and account management, global value proposition, evidence plan to support the global value proposition, and
the global value dossier, including economic models with respect to the global value proposition as well as a strategy to comply with any government programs, including required pricing submissions and rebates or discounts (the “Global
Market Access and Value Strategy”); and 

  

	 	5.3.4.	a global pricing strategy for such Shared Product (including list price, targeted net pricing, sales-weighted average discounts and rebates, the approach to pricing with different types of accounts and plans, types of
discounts and rebates) in the Territory (the “Global Pricing Strategy”), provided that the Lead Commercialization Party in each jurisdiction shall have responsibility for the implementation of such global pricing strategy,
including negotiating pricing and reimbursement with governments and private payers, in such jurisdiction. 

  
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	 	5.4.	Commercialization Activities. 

  

	 	5.4.1.	Training. The Lead Commercialization Party will prepare training programs and materials for employees and sales representatives with respect to the Shared Products in its respective
jurisdiction, with the goal of ensuring compliance with all Applicable Laws and each Party’s compliance policies. The Lead Commercialization Party will be solely responsible for training its employees and sales representatives in
accordance with such training program, consistent with the Global Communication Strategy. 

  

	 	5.4.2.	Trademarks. The JCC will select one or more product Trademarks for each Shared Product throughout the world consistent with the applicable Global Brand Strategy. Each Shared Product will be promoted and
sold in the Territory under the applicable Trademarks. 

  

	 	5.4.3.	Field Sales. The Lead Commercialization Party will have the sole right to promote the Shared Products (including performing sales calls) in its respective jurisdiction. 

 

	 	5.4.4.	Distribution and Patient Services. The Lead Commercialization Party will be responsible for distribution and patient services for each Shared Product in its respective jurisdiction, including contracting
with applicable service providers, such activities to be determined by the Lead Commercialization Party and included in the Regional Commercialization Plan(s) for such Shared Product. 

 

	 	5.4.5.	Booking Sales; Distribution. The Lead Commercialization Party will have the sole right to invoice, sell and book all sales of each Shared Product in its respective jurisdiction and will be responsible for
warehousing and distributing such Shared Product in its respective jurisdiction. 

  

	 	5.5.	Diligence. CRISPR will use Commercially Reasonable Efforts to [***] the [***] in the [***]. Vertex will use Commercially Reasonable Efforts to [***] the [***] in the Major [***] Countries. Each Party and
its Affiliates will conduct its Commercialization activities in compliance with Applicable Law and the relevant Global Commercialization Plan. Notwithstanding anything to the contrary contained herein, a Party or its Affiliates will not be obligated
to undertake or continue any Commercialization activities with respect to any Shared Product if such Party (or any of its Affiliates) reasonably determines that performance of such Commercialization activity would violate Applicable Law or infringe
or misappropriate a Third Party’s intellectual property. 

  
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Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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 ARTICLE 6 

MANUFACTURING 
  

	 	6.1.	Manufacturing [***]. During the period starting on the Effective Date and ending on the date that is [***] days after the Effective Date (the “[***]”), CRISPR
shall cooperate with Vertex to [***], provided that [***], (b) [***], provided that, [***], and (c) [***]. 

  

	 	6.2.	 Manufacturing Working Group. After the Effective Date, the JMC will establish a manufacturing
working group (the “Manufacturing Working Group”) to operationalize the Manufacture of the Products in accordance with a global manufacturing plan (the “Global Manufacturing Plan”), including the corresponding
budget (the “Manufacturing Budget”), to be prepared by the Manufacturing Working Group within [***] days after the Effective Date and shall be approved by the JMC thereafter. The JMC will select the members of the Manufacturing
Working Group as provided in Section 2.5.2(a) and in this Section 6.2. Unless otherwise mutually approved by the Parties in writing: (x) [***] will be the lead party on Manufacturing matters; provided that at all times at least
[***]% of the members of the Manufacturing Working Group will be [***] representatives; (y) the leader of the Manufacturing Working Group will act as the Manufacturing Lead on the Project Team; and (z) a majority of the members of the
Manufacturing Working Group shall be dedicated to the Manufacture of the Products under this Agreement on a full-time basis, unless otherwise mutually agreed by the Parties in writing; provided, however, that any member of the
Manufacturing Working Group who is not dedicated to the Manufacture of the Products under this Agreement on a full-time basis must be sufficiently dedicated to such Manufacture to permit such person to be reasonably and consistently available to
participate in the activities of the Manufacturing Working Group. The Manufacturing Working Group will report to the JMC, and will collaborate with the other functions on the Project Team. The Manufacturing Working Group’s responsibilities will
include: (a) on an [***] basis (or more frequently as needed), preparing updates to the Global Manufacturing Plan, including the Manufacturing Budget, and submitting such updates to the JMC for review, discussion and approval in accordance with
Section 2.5.2(i); (b) developing plans to transfer Manufacturing-related Know-How between the Parties as needed to facilitate the Manufacture of the Products; (c) establishing standards applicable to
each Party’s Manufacturing activities and reviewing each Party’s performance against such standards; (d) conducting technical reviews; (e) making recommendations to the JMC regarding capacity planning, supply plans and supply
continuity planning for the Products; (f) making recommendations to the JMC regarding the Manufacturing process for each Shared Product and any changes thereto; (g) sharing planning and budgeting information with the JMC, the JDC and JCC;
(h) reviewing and sharing the results of regulatory and environmental, health and safety inspections and audits related to the Manufacture of the Products with the JMC; (i) managing CMOs conducting Manufacturing activities with respect to
the Products and (j) conducting any technology transfer approved by the JMC and in accordance with Section 6.4. The Manufacturing 

  
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Working Group shall use good faith efforts to reach consensus on the matters for which it is responsible, with each Party’s representatives on the Manufacturing Working Group having
collectively one vote; provided that if, despite the use of such good faith efforts for a reasonable period of time (taking into account the nature of the relevant dispute) the Parties representatives are unable to reach consensus on a given
matter and such matter does not require the JMC’s approval, [***] [***]; provided that [***]. 

  

	 	6.3.	Responsibilities. The Parties, in accordance with the allocation of responsibilities determined by the JMC, shall be responsible for Manufacturing or having Manufactured all pre-clinical, clinical and commercial supplies of the Products in accordance with the Global Manufacturing Plan and subject to the Manufacturing Budget, subject to the oversight of the Manufacturing Working Group
and the JMC in consultation with the JDC or JCC, as applicable. The Party responsible for conducting activities under the Global Manufacturing Plan will be responsible for determining how to carry out the day-to-day operations with respect to such activities; provided such activities are conducted in accordance with the Global Manufacturing Plan, Manufacturing Working Group guidance and strategy and all
Applicable Laws. The Parties, acting through the Manufacturing Working Group, will ensure the process for Manufacturing a Shared Product [***]. [***] will be responsible for contracting with any CMO with respect to the Manufacture of the Shared
Products. If [***] determines to build out its own Manufacturing site, it shall so notify the JMC, and the JMC will determine whether to use such Manufacturing site for the Manufacture of the Products under this Agreement. If the JMC determines to
use [***] Manufacturing site for the Manufacture of any Product under this Agreement, [***] will use Commercially Reasonable Efforts to ensure that such Manufacturing site contains reasonably adequate equipment and space dedicated to such Product.
For clarity, if the JMC does not initially determine to use [***] Manufacturing site for the Manufacture of any Product under this Agreement, it may at any time thereafter determine to do so, provided that such Manufacturing site contains
reasonably adequate equipment and space dedicated to such Product. 

  

	 	6.4.	Sharing of Manufacturing Information. Subject to this Section 6.4, each Party shall, upon the other Party’s request, provide to such other Party such information as may be requested by such other
Party with respect to the Manufacture of any Product under this Agreement for Development, Commercialization or Manufacturing purposes. Without limiting the foregoing, each Party will, within [***] Business Days of the other Party’s request,
provide to the requesting Party any information requested with respect to the non-requesting Party’s Manufacturing activities, including site qualification and
scale-up activities. Each Party shall, and shall cause its Affiliates to, [***]. Notwithstanding the foregoing, if the JMC determines that a CMO will Manufacture the Products, [***] shall directly transfer to
such CMO any information Controlled by and in the possession of [***] or its Affiliate and reasonably necessary or useful to enable the Manufacture of such Products, provided that such transfer obligation shall not limit [***] obligations to
transfer information directly to [***] pursuant to this Section 6.4. 

  
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	 	6.5.	CMO Agreements. Each Party will have the right to review and approve the terms of any agreement, including quality agreements, to be entered into between the other Party and a CMO or a contract testing
facility with respect to the Manufacture of any Product, or any intermediate thereof, under this Agreement. No such agreement with a CMO or contract testing facility shall be entered into by a Party without the prior approval of the other Party.

 ARTICLE 7 

FINANCIAL TERMS; ALLOCATION OF NET PROFIT AND NET LOSS 
  

	 	7.1.	Upfront Payments. Within four Business Days after the Effective Date, Vertex shall pay to CRISPR a non-refundable,
non-creditable, upfront payment in the amount of Seven Million Dollars ($7,000,000). For clarity, CRISPR is solely responsible for all costs and expenses incurred by CRISPR or its Affiliates in connection with
the Shared Products prior to the Effective Date. 

  

	 	7.2.	Milestone Payment. Upon [***], Vertex will make a one-time, non-refundable,
non-creditable payment to CRISPR of [***] ($[***]) within [***] days of receipt by Vertex of an invoice for such payment from CRISPR. 

 

	 	7.3.	Allocation. Starting [***], and continuing through the Co-Co Agreement Term, each Party will be entitled to [***] or will bear [***], as applicable. Each Party will
be solely responsible for any Program Expenses incurred by such Party between the Effective Date and [***], 2018. If either Party elects to Opt-Out (as defined below), the [***]. 

 

	 	7.4.	Calculation. [***]. 

  

	 	7.5.	 Payment of Expenses; Summary Statements. Subject to reconciliation as provided in Section 7.6,
the Party initially incurring Program Expenses will be responsible for and pay for all such Program Expenses so incurred. Each Party will maintain the books and records referred to in Section 7.8. Each Party will accrue all Program Expenses,
Sublicense Revenue and Net Sales in accordance with the terms and conditions hereof and in accordance with GAAP, provided that all Out-of-Pocket Costs under this
Agreement will be deemed accrued at the time of invoice for purposes of the calculation and reconciliation of Net Profit or Net Loss under this Agreement. Within [***] Business Days after the end of each Calendar Quarter, each Party will submit to
the other a written report reflecting the accrual of Program Expenses, Sublicense Revenue and Net Sales during the just-ended Calendar Quarter, except that each Party’s submission for the last month of such Calendar Quarter will be a good faith
estimate and not actual amounts (each, a “Summary Statement”). Within [***] days after the end of each Calendar Quarter, each Party will submit to the other an updated Summary

  
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Statement reflecting the actual accrual of Program Expenses, Sublicense Revenue and Net Sales for the last month of such Calendar Quarter, which Summary Statement will be certified as true and
accurate by a representative of such Party that is a Vice President of Finance or more senior representative. Each Summary Statement (after the initial Summary Statement) will reflect an adjustment for the actual amount of the previous Calendar
Quarter as needed, provided that, if, prior to preparation of a Summary Statement in accordance with the preceding sentence, a Party discovers that actual Program Expenses, Sublicense Revenue or Net Sales have deviated materially from any non-binding, good faith estimate of such Program Expenses, Sublicense Revenue or Net Sales submitted to the other Party in accordance with this Section 7.5 (including any deviation in any single Expense or in
aggregate Sublicense Revenue or aggregate Net Sales, in each case, of more than $[***]), then such Party shall promptly notify the other Party of such deviation in advance of delivery of such Summary Statement. Any reporting and reconciliation of
variances between estimated and actual Expenses may be delayed by a Calendar Quarter as reasonably necessary in light of a Party’s internal reporting procedures. The Parties’ respective Summary Statements will serve as the basis of the
Reconciliation Reports prepared by [***] pursuant to Section 7.6. The Parties’ respective finance departments, coordinated by the JDC, or JCC, as appropriate, will meet at least once per [***], or as otherwise mutually agreed by the
Parties, to discuss any questions or issues arising from the Summary Statements, including the basis for the accrual of specific Program Expenses, review budgets and forecasts, and discuss reconciliation and reporting procedures. 

 

	 	7.6.	Reconciliation. [***] will prepare a reconciliation report, as soon as practicable after the receipt of [***] updated Summary Statement, but in any event within [***] days after the end of each Calendar
Quarter, accompanied by reasonable supporting documents and calculations sufficient to support each Party’s financial reporting obligations, independent auditor requirements and obligations under the Sarbanes-Oxley Act, which reconciles the
amounts accrued and reported in each Party’s Summary Statement during such Calendar Quarter and the share of the Net Profits and Net Losses to be allocated to each of the Parties for such Calendar Quarter in accordance with Section 7.3
(such report, the “Reconciliation Report”). Payment to reconcile Net Profit or Net Loss, as applicable, shall be made by the owing Party to the other Party within [***] days after such Reconciliation Report is complete.

  

	 	7.7.	 Cost Overruns. If a Party’s Research Costs, Development Costs, Manufacturing Costs, Medical
Affairs Costs or Commercialization Costs in any Calendar Year are likely to exceed those set forth in the Research Budget, Development Budget, Manufacturing Budget, Medical Affairs Budget or Global Commercialization Budgets, as applicable, for all
of its activities under the Follow-On Research Plan, Global Development Plan, Global Manufacturing Plan, Medical Affairs Plan or Global Commercialization Plans, as applicable, in such Calendar Year by [***],
Development Budget, Manufacturing Budget, Medical Affairs Budget or Global Commercialization Budgets, as applicable, such Party will provide the other Party with an explanation for such excess Expenses, and such excess Expenses will be

  
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included in the Research Costs, Development Costs, Manufacturing Costs, Medical Affairs Costs or Commercialization Costs, as applicable, and, beginning [***], shared by the Parties as provided
herein. To the extent a Party’s Research Costs, Development Costs, Manufacturing Costs, Medical Affairs Costs or Commercialization Costs, as applicable, exceed those set forth in the Research Budget, Development Budget, Manufacturing Budget,
Medical Affairs Budget or Global Commercialization Budgets, [***] 

  

	 	7.8.	Books and Records. Each Party will keep and maintain accurate and complete records regarding Program Expenses, Sublicense Revenue and Net Sales, during the three preceding Calendar Years. Upon [***]
days’ prior written notice from the Auditing Party, the Audited Party will permit an independent certified public accounting firm of internationally recognized standing, selected by the Auditing Party and reasonably acceptable to the Audited
Party, to examine the relevant books and records of the Audited Party and its Affiliates, as may be reasonably necessary to verify the Summary Statements and Reconciliation Reports. An examination by the Auditing Party under this Section 7.8
will occur not more than once in any Calendar Year and will be limited to the pertinent books and records for any Calendar Year ending not more than [***] months before the date of the request. The accounting firm will be provided access to
such books and records at the Audited Party’s facility or facilities where such books and records are normally kept and such examination will be conducted during the Audited Party’s normal business hours. The Audited Party may require the
accounting firm to sign a customary non-disclosure agreement before providing the accounting firm access to its facilities or records. Upon completion of the audit, the accounting firm will provide both the
Auditing Party and the Audited Party a written report disclosing whether the applicable Summary Statements and Reconciliation Reports are correct or incorrect and the specific details concerning any discrepancies. No other information will be
provided to the Auditing Party. If the report or information submitted by the Audited Party results in an underpayment or overpayment, the Party owing underpaid or overpaid amount will promptly pay such amount to the other Party, and if, as a result
of such inaccurate report or information, such amount is more than five percent of the amount that was owed, the Audited Party will reimburse the Auditing Party for the reasonable expense incurred by the Auditing Party in connection with the audit.

  

	 	7.9.	Payment Method; Currency. 

  

	 	7.9.1.	All payments under this Agreement will be paid in U.S. Dollars, by wire transfer (a) in the case of payments to [***], by [***] to an account of [***] designated by [***] (which account CRISPR may update from time
to time in writing) and (b) in the case of payments to [***], by [***]. to an account of [***] designated by [***] (which account [***] may update from time to time in writing). 

  
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	 	7.9.2.	If any amounts that are relevant to the determination of amounts to be paid under this Agreement or any calculations to be performed under this Agreement are denoted in a currency other than U.S. Dollars, then such
amounts will be converted to their U.S. Dollar equivalent using the [***] of the official rate of exchange of such domestic currency as quoted by [***], for the Calendar Quarter for which the payment is made. 

 

	 	7.10.	Late Payment. Any undisputed payments or portions thereof due hereunder that are not paid when due will accrue interest from the date due until paid at an annual rate equal to [***] plus [***] percent (or
the maximum allowed by Applicable Law, if less). 

  

	 	7.11.	Payments To / From [***]. Notwithstanding anything to the contrary set forth in this Agreement, (i) any payments to be made by any [***] under this Agreement shall be made by
[***] only; and (ii) any payments to be made to any [***] under this Agreement shall be made to [***] only. 

 ARTICLE
8 
 ADVERSE EVENTS 
  

	 	8.1.	Pharmacovigilance Agreement. [***] shall be responsible for all pharmacovigilance activities for the Shared Products in the Territory. Within [***] days after the Effective Date, the Parties will negotiate
in good faith and will set forth in a pharmacovigilance agreement (the “Pharmacovigilance Agreement”) mutually agreed terms and conditions for the processes and procedures for sharing safety information with respect to the Shared
Products that are customary for agreements of this type. The Pharmacovigilance Agreement will include provisions establishing a joint disease area safety team led by [***] to oversee the conduct of the Parties’ activities under the
Pharmacovigilance Agreement and to coordinate the Parties’ interactions with respect to pharmacovigilance activities. 

  

	 	8.2.	Global Safety Database. [***] will establish and maintain the global database of safety information for each Shared Product (each, a “Global Safety Database”), including adverse events and
pregnancy reports for each Shared Product, which will be used for regulatory reporting and responses to safety queries from Regulatory Authorities by both Parties. [***] will, and will cause its Affiliates to, transfer all adverse events information
in its or their possession or control to the Global Safety Database within a mutually agreed period of time that provides Vertex with sufficient time for the preparation of required regulatory submissions. 

 

	 	8.3.	Risk Management and Signal Detection Activities. [***] shall be primarily responsible for all signal detection and risk management activities for the Shared Products. These signal detection activities
shall include, but are not limited to, proactive review and evaluation of all safety information from the applicable Global Safety Database (including Individual Case Safety Reports and aggregate safety information) and other sources (including the
clinical trial databases, non-clinical data, and medical or scientific literature). 

  
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	 	8.4.	Access to Safety Information. The Parties will arrange for [***] to [***], with a format and periodicity agreed upon by both Parties. In response to [***] from [***], [***] will [***] to [***] within [***]
Business Days of a request. In addition, [***] shall [***] to [***]. 

 ARTICLE 9 

SUBCONTRACTING 
 Each Party
may subcontract the performance of any activities undertaken by such Party in accordance with the Global Development Plan, the Follow-On Research Plan, the Medical Affairs Plan, any Global Commercialization
Plan or any Regional Commercialization Plan to one or more Third Parties (each such Third Party, a “Subcontractor”) pursuant to a written agreement (a “Subcontract”) in compliance with the terms of this Agreement
and the Quality Agreement. Notwithstanding the foregoing, if either Party desires to subcontract any such activities, it will first discuss the matter with the other Party and reasonably consider using the other Party for such subcontracted
activities, taking into account the capabilities of the other Party and potential impact on Expenses, as a potential alternative to subcontracting such activities to a Third Party. If, following such discussion, a Party still desires to subcontract
the performance of any such activity to one or more Third Parties, it may proceed to do so, subject to Section 2.3.2(v), Section 2.4.2(k) or Section 2.5.2(o), as applicable, in the case of any such subcontract that the subcontracting
Party reasonably anticipates will entail payments to the Subcontractor in excess of $[***] with respect to the subcontracted activities under this Agreement. 

ARTICLE 10 
 LICENSE
GRANTS 
  

	 	10.1.	Acknowledgment of Option Exercise. Each Party acknowledges and agrees that, notwithstanding anything to the contrary in the Collaboration Agreement, effective as of the execution of this Agreement, Vertex
is deemed to have exercised [***], without any further action on the part of either Party, [***]. 

  

	 	10.2.	License Grants to Vertex. 

  

	 	10.2.1.	Development and Commercialization Licenses. Subject to the terms and conditions of this Agreement, CRISPR and, following the Subsidiary Transfer, the CRISPR Subsidiary, grants to Vertex UK and its
Affiliates a co-exclusive (with CRISPR) license under CRISPR’s and its Affiliates’ interest in the Licensed CRISPR Technology, with the right to Sublicense through multiple tiers (subject to
Section 10.5), to Research, Develop, Manufacture, have Manufactured, use, keep, sell, offer for sale, import, export and Commercialize Shared Products in the Field in the Territory (such license, the “Exclusive License”). As of
the Effective Date, this Exclusive License supersedes and replaces the license grant set forth in Section 5.3.1 of the Collaboration Agreement solely with respect to the Shared Targets, and shall be deemed to be the “Exclusive
License” under the Collaboration Agreement with respect to the Shared Targets. 

  
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	 	10.2.2.	Research Licenses. Subject to the terms and conditions of this Agreement, CRISPR and, following the Subsidiary Transfer, the CRISPR Subsidiary, grants to Vertex UK and its Affiliates a co-exclusive (with CRISPR) license under CRISPR’s and its Affiliates’ interest in the Licensed CRISPR Technology solely to conduct the activities set forth in the
Follow-On Research Plan with respect to Follow-On Products in the Field in the Territory. 

 

	 	10.2.3.	License Conditions; Limitations. Subject to Section 10.7.2, any rights and obligations hereunder, including the rights granted pursuant to the Exclusive License, are subject to and limited by any
applicable [***] of CRISPR to the extent the provisions of such obligations or agreements are specifically disclosed to Vertex in writing: (a) with respect to [***] under a CRISPR In-License Agreement,
prior to (i) the Effective Date, in the case of the Initial Shared Product, and (ii) the date of designation of a Follow-On Product as a Shared Product, in the case of any other Shared Product; and
(b) with respect to [***] under a [***] for which CRISPR is the contracting Party, on or prior to the date on which such [***] becomes effective. 

  

	 	10.3.	License Grants to CRISPR. 

  

	 	10.3.1.	Development and Commercialization Licenses. Subject to the terms and conditions of this Agreement, Vertex grants to CRISPR a co-exclusive (with Vertex and its
Affiliates) license under Vertex’s and its Affiliates’ interest in the Licensed Vertex Technology, with the right to Sublicense through multiple tiers (subject to Section 10.5), to Research, Develop, Manufacture, have Manufactured,
use, keep, sell, offer for sale, import, export and Commercialize Shared Products in the Field in the Territory. 

  

	 	10.3.2.	Research Licenses. Subject to the terms and conditions of this Agreement, Vertex grants to CRISPR a co-exclusive (with Vertex and its Affiliates) license under
Vertex’s and its Affiliates’ interest in the Licensed Vertex Technology solely to conduct the activities set forth in the Follow-On Research Plan with respect to
Follow-On Products in the Field in the Territory. 

  

	 	10.3.3.	 License Conditions; Limitations. Subject to Section 10.7.2, any rights and obligation
hereunder are subject to and limited by any applicable [***] of Vertex to the extent the provisions of such obligations or agreements are specifically disclosed to CRISPR in writing: (a) with respect to [***] under a Vertex In-License Agreement, prior to (i) the Effective Date, in the case of the Initial Shared Product, and (ii) the date 

  
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of designation of a Follow-On Product as a Shared Product, in the case of any other Shared Product; and (b) with respect to [***] under a [***] for
which Vertex is the contracting Party, on or prior to the date on which such [***] becomes effective. 

  

	 	10.4.	Licenses to Improvements. 

  

	 	10.4.1.	Subject to the terms and conditions of this Agreement, CRISPR, and, following the Subsidiary Transfer, to the extent necessary, the CRISPR Subsidiary, hereby grants to Vertex UK and its Affiliates a perpetual,
irrevocable, non-exclusive, royalty-free, fully paid-up, worldwide, sublicensable license to all improvements or modifications to the Vertex Background Know-How or Vertex Background Patents, whether or not patentable, that arise in the course of performing activities under the Global Development Plan or the Follow-On Research
Plan or in the course of Developing, Manufacturing or Commercializing a Product and are Controlled by CRISPR or its Affiliates to make, have made, use, sell, keep, offer for sale and import products other than Shared Products. 

 

	 	10.4.2.	Subject to the terms and conditions of this Agreement, Vertex hereby grants to CRISPR a perpetual, irrevocable, non-exclusive, royalty-free, fully
paid-up, worldwide, sublicensable license to all improvements or modifications to the CRISPR Platform Technology Patents, CRISPR Background Patents [***], Gene Editing System or CRISPR Background Know-How set forth on Schedule F to the Collaboration Agreement (as may be supplemented by mutual written agreement of the Parties from time to time), whether or not patentable, that arise in the course of
performing activities under the Global Development Plan or the Follow-On Research Plan or in the course of Developing, Manufacturing or Commercializing a Product and are Controlled by Vertex or its Affiliates
to make, have made, use, sell, keep, offer for sale and import products other than Shared Products. 

  

	 	10.5.	Sublicensing. Subject to the rights granted or retained by the Parties under this Agreement, either Party may Sublicense (through multiple tiers) to its Affiliates or Third Parties any and all rights
granted to it by the other Party or retained by such Party with respect to the Research, Development, Manufacture and Commercialization of Shared Products, provided that neither Party may grant any such Sublicense (other than a Subcontract in
accordance with the provisions of ARTICLE 9) in a [***] or [***] without the prior written consent of the other Party; and provided, further, that if either Party intends to Sublicense any such rights in any country, it will discuss
the matter with the other Party and in good faith consider using the other Party to conduct any sublicensed activities. If a Party grants any such Sublicense it will remain responsible for its obligations under this Agreement and will be responsible
for the performance of the relevant Sublicensee. 

  
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	 	10.6.	No Implied Licenses. All rights in and to Licensed CRISPR Technology not expressly licensed or assigned to Vertex under this Agreement or the Collaboration Agreement are hereby retained by CRISPR or its
Affiliates. All rights in and to any Licensed Vertex Technology not expressly licensed to CRISPR under this Agreement or the Collaboration Agreement, are hereby retained by Vertex or its Affiliates. Except as expressly provided in this Agreement or
the Collaboration Agreement, no Party will be deemed by estoppel or implication to have granted the other Party any licenses or other right with respect to any intellectual property. 

 

	 	10.7.	Third Party Agreements. 

  

	 	10.7.1.	In-License Agreements. Any financial obligations arising under any CRISPR In-License Agreement or Vertex In-License Agreement as a result of the Development, Manufacture or Commercialization of any Product by either Party, its Affiliates and Sublicensees under this Agreement will be included in [***].

  

	 	10.7.2.	[***]. If a Party believes, in its reasonable judgment, that it may be necessary to obtain rights under any [***] in order [***] such Party will promptly notify the other Party and
[***]. Unless otherwise agreed by the Parties in writing, (a) if such [***] [***] and (b) [***] [***]. [***] (each, a “[***]”) [***]. [***], the Parties will [***]. If it is [***] are [***], then the applicable Party
shall [***], and the [***] shall be included as [***] under this Agreement. If, within [***] days [***], the applicable Party has not [***], the other Party shall [***], and the [***] shall be included as [***] under this Agreement. If it is [***],
then [***], provided that the [***] shall not be [***] and shall not be included as [***] under this Agreement unless otherwise mutually agreed by the Parties in writing. The [***] shall [***], and shall not [***]. 

 

	 	10.8.	Trademarks. The Lead Commercialization Party will own and retain all rights to all filed Trademarks for the Shared Products in their respective jurisdictions, and all goodwill associated with or attached
thereto arising out of the use thereof by the Parties, their Affiliates and Sublicensees will inure to the benefit of such Lead Commercialization Party. Each non-Lead Commercialization Party, on behalf of
itself and its Affiliates, will assign to the Lead Commercialization Party or its relevant Affiliate all right, title and interest in and to such Shared Product Trademarks and goodwill in the relevant jurisdictions. The non-Lead Commercialization Party will not contest, oppose or challenge the Lead Commercialization Party’s ownership of such Shared Product Trademarks in the relevant jurisdictions. The Lead Commercialization
Party will own rights to any Internet domain names incorporating any Trademark for the Shared Products, or any variation or part of any such Trademark, as its URL address or any part of such address in the applicable jurisdictions. The Lead
Commercialization Party will use Commercially Reasonable Efforts to register, maintain and enforce the Trademarks for the Shared Products in the relevant jurisdictions. Notwithstanding anything to the contrary, if a single Trademark is used
throughout the Territory with respect to a Shared Product, the Parties will mutually agree upon the ownership of such Shared Product Trademark in the Territory. 

  
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Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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 ARTICLE 11 

INTELLECTUAL PROPERTY 
 The
terms of the Collaboration Agreement will apply with respect to any and all Know-How and Patents discovered, developed, invented or created in connection with activities under this Agreement. 

ARTICLE 12 

REPRESENTATIONS AND WARRANTIES 
  

	 	12.1.	Representations and Warranties of Vertex. Vertex hereby represents and warrants to CRISPR, as of the Effective Date, that: 

 

	 	12.1.1.	each of Vertex Parent and Vertex UK is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization and has full corporate power and authority to enter
into this Agreement and to carry out the provisions hereof; 

  

	 	12.1.2.	each of Vertex Parent and Vertex UK (a) has the requisite power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder and (b) has taken all requisite action on
its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder; 

  

	 	12.1.3.	this Agreement has been duly executed and delivered on behalf of each of Vertex Parent and Vertex UK, and constitutes a legal, valid and binding obligation, enforceable against each of Vertex Parent and Vertex UK in
accordance with the terms hereof; 

  

	 	12.1.4.	the execution, delivery and performance of this Agreement by each of Vertex Parent and Vertex UK will not constitute a default under or conflict with any agreement, instrument or understanding, oral or written, to which
either entity is a party or by which either entity is bound, or violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over Vertex Parent or Vertex UK; and 

 

	 	12.1.5.	each of Vertex Parent and Vertex UK has obtained all necessary consents, approvals and authorizations of all Governmental Authorities and other Persons or entities required to be obtained by it in connection with the
execution and delivery of this Agreement. 

  
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	 	12.2.	Representations and Warranties of CRISPR. Each of the CRISPR Entities, jointly and severally, hereby represents and warrants to Vertex, as of the Effective Date, except as set forth on Schedule G,
that: 

  

	 	12.2.1.	each of CRISPR AG, CRISPR Inc., CRISPR UK and Tracr is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization and has full corporate power and
authority to enter into this Agreement and to carry out the provisions hereof; 

  

	 	12.2.2.	each of CRISPR AG, CRISPR Inc., CRISPR UK and Tracr (a) has the requisite power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder and (b) has taken all
requisite action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder; 

  

	 	12.2.3.	this Agreement has been duly executed and delivered on behalf of CRISPR, and constitutes a legal, valid and binding obligation, enforceable against it in accordance with the terms hereof; 

 

	 	12.2.4.	the execution, delivery and performance of this Agreement by CRISPR will not constitute a default under or conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it
is bound, or violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it; 

  

	 	12.2.5.	CRISPR has obtained all necessary consents, approvals and authorizations of all Governmental Authorities and other Persons or entities required to be obtained by CRISPR in connection with the execution and delivery of
this Agreement; 

  

	 	12.2.6.	the Licensed CRISPR Technology constitutes all of the Patents and Know-How Controlled by CRISPR that are necessary to Research, Develop, Manufacture or Commercialize the Shared
Products contemplated under this Agreement in the Field in the Territory; 

  

	 	12.2.7.	CRISPR is the sole and exclusive owner or exclusive licensee of the CRISPR Platform Technology Patents and CRISPR Background Patents, all of which are free and clear of any liens, charges and encumbrances, and, as of
the Effective Date, neither any license granted by CRISPR to any Third Party, nor any license granted by any Third Party to CRISPR, conflicts with the license grants to Vertex hereunder, and CRISPR is entitled to grant all rights and licenses (or
sublicenses, as the case may be) under such Patents it purports to grant to Vertex under this Agreement; 

  
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	 	12.2.8.	[***], the Research, Development, Manufacture, use, sale, offer for sale, supply or importation by [***] 

  

	 	12.2.9.	there are no judgments or settlements against or owed by [***], pending or threatened claims or litigation, in either case relating to the Licensed CRISPR Technology; 

 

	 	12.2.10.	the CRISPR Platform Technology Patents and CRISPR Background Patents are, or, upon issuance, will be, [***] [***], [***] and 

  

	 	12.2.11.	[***], there are no Manufacturing capacity or Manufacturing process issues that [***] on the Manufacture of the Products. 

  

	 	12.3.	CRISPR Covenants. Each of the CRISPR Entities, jointly and severally, hereby covenants to Vertex that, except as expressly permitted under this Agreement: 

 

	 	12.3.1.	CRISPR will maintain and not breach any CRISPR In-License Agreements or [***] that provide a grant of rights from such Third Party to CRISPR that are Controlled by CRISPR and are
licensed or may become subject to a license from CRISPR to Vertex for the Shared Products under this Agreement; 

  

	 	12.3.2.	CRISPR will promptly notify Vertex of any material breach by one or more CRISPR Entities or a Third Party of any CRISPR In-License Agreements or [***] that provides a grant of
rights from such Third Party to one or more CRISPR Entities and are licensed from CRISPR to Vertex under this Agreement, and in the event of a breach by [***], will [***]. CRISPR will [***] as soon as possible, but in no event later than the date on
which [***]; 

  

	 	12.3.3.	it will not amend, modify or terminate any CRISPR In-License Agreement or [***] in a manner that would have an adverse effect on Vertex’s rights hereunder without first
obtaining Vertex’s written consent, which consent may be withheld in Vertex’s sole discretion; 

  

	 	12.3.4.	it will not enter into any new agreement or other obligation with any Third Party, or amend an existing agreement with a Third Party, in each case that adversely restricts, limits or encumbers the rights granted to
Vertex under this Agreement or the additional rights; 

  

	 	12.3.5.	it will not, and will cause its Affiliates not to (a) license, sell, assign or otherwise transfer to any Person any Licensed CRISPR Technology (or agree to do any of the foregoing), except as will not
adversely restrict, limit or encumber the rights granted to Vertex under this Agreement, or (b) incur or permit to exist, with respect to any Licensed CRISPR Technology, any lien, encumbrance, charge, security interest, mortgage, liability,
grant of license to Third Parties or other restriction (including in connection with any indebtedness); 

  
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	 	12.3.6.	it will use Commercially Reasonable Efforts to obtain and maintain the requisite resources and expertise to perform its obligations hereunder; 

 

	 	12.3.7.	all employees and Subcontractors of CRISPR performing Research or Development activities hereunder on behalf of CRISPR will be obligated to assign to CRISPR all right, title and interest in and to any inventions
developed by them, whether or not patentable, or, solely with respect to Subcontractors, grant exclusive license rights to CRISPR with a right to grant sublicenses through multiple tiers; 

 

	 	12.3.8.	it will not engage, in any capacity in connection with this Agreement, any Person who either has been debarred by the FDA, is the subject of a conviction described in Section 306 of the FD&C Act or is subject
to any such similar sanction; and 

  

	 	12.3.9.	CRISPR will inform Vertex in writing promptly if it or any Person engaged by CRISPR or any of its Affiliates who is performing services under this Agreement or any ancillary agreements is debarred or is the subject of a
conviction described in Section 306 of the FD&C Act, or if any action, suit, claim, investigation or legal or administrative proceeding is pending or, to CRISPR’s Knowledge, is threatened, relating to the debarment or conviction of
CRISPR, any of its Affiliates or any such Person performing services hereunder or thereunder. 

  

	 	12.4.	Vertex Covenants. Vertex hereby covenants to CRISPR that, except as expressly permitted under this Agreement: 

  

	 	12.4.1.	it will use Commercially Reasonable Efforts to obtain and maintain the requisite resources and expertise to perform its obligations hereunder; 

 

	 	12.4.2.	Vertex will not engage, in any capacity in connection with this Agreement any Person who either has been debarred by the FDA, is the subject of a conviction described in Section 306 of the FD&C Act or is
subject to any such similar sanction; and 

  

	 	12.4.3.	Vertex will inform CRISPR in writing promptly if it or any Person engaged by Vertex or any of its Affiliates who is performing services under this Agreement or any ancillary agreements is debarred or is the subject of a
conviction described in Section 306 of the FD&C Act, or if any action, suit, claim, investigation or legal or administrative proceeding is pending or, to Vertex’s knowledge, is threatened, relating to the debarment or conviction of
CRISPR, any of its Affiliates or any such Person performing services hereunder or thereunder. 

  

	 	12.5.	Disclaimer. Except as otherwise expressly set forth in this Agreement, neither Party nor its Affiliates makes any representation or extends any warranty of any kind, either express or implied, including
any warranty of merchantability or fitness for a particular purpose. Vertex and CRISPR understand that each Product is the subject of ongoing Research and Development and that neither Party can assure the safety, usefulness or commercial or
technical viability of any Product. 

  
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	 	12.6.	[***]. Notwithstanding anything to the contrary in this Agreement, if it is [***] that [***] has [***] (a “[***]”), then (a) if [***] shall [***] The Parties acknowledge and agree
that notwithstanding anything to the contrary in this Agreement, (i) a [***], and [***] or the [***] and (ii) [***]. 

ARTICLE 13 

INDEMNIFICATION; INSURANCE 
  

	 	13.1.	Indemnification by Vertex. Vertex will indemnify, defend and hold harmless each CRISPR Indemnified Party from and against any and all Liability that the CRISPR Indemnified Party may be required to pay to
one or more Third Parties to the extent resulting from or arising out of: 

  

	 	13.1.1.	[***]; 

  

	 	13.1.2.	[***]; 

  

	 	except,	in each case, to the extent CRISPR is required to indemnify Vertex pursuant to Section 13.2. 

  

	 	13.2.	Indemnification by CRISPR. Each CRISPR Entity will jointly and severally indemnify, defend and hold harmless each Vertex Indemnified Party from and against any and all Liabilities that the Vertex
Indemnified Party may be required to pay to one or more Third Parties to the extent resulting from or arising out of: 

  

	 	13.2.1.	[***]; 

  

	 	13.2.2.	[***]; 

  

	 	except,	in each case, to the extent Vertex is required to indemnify CRISPR pursuant to Section 13.1. 

  

	 	13.3.	 Procedure. Each Party will notify the other Party in writing if it becomes aware of a claim for
which indemnification may be sought hereunder. In case any proceeding (including any governmental investigation) will be instituted involving any Indemnified Party, such Indemnified Party will give prompt written notice of the indemnity claim to the
Indemnifying Party and provide a copy to the Indemnifying Party of any complaint, summons or other written or verbal notice that the Indemnified Party receives in connection with any such claim. An Indemnified Party’s failure to deliver written
notice will relieve the Indemnifying Party of liability to the Indemnified Party under this ARTICLE 13 only to the extent such delay is prejudicial to the Indemnifying Party’s ability to defend such claim. Provided that the Indemnifying
Party is not contesting the indemnity obligation, the Indemnified Party will permit the Indemnifying Party to control any litigation relating to such claim and the disposition of such claim by

  
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negotiated settlement or otherwise and any failure to contest prior to assuming control will be deemed to be an admission of the obligation to indemnify. The Indemnifying Party will act
reasonably and in good faith with respect to all matters relating to such claim and will not settle or otherwise resolve such claim without the Indemnified Party’s prior written consent, which will not be withheld, delayed or conditioned
unreasonably, other than settlements only involving the payment of monetary awards for which the Indemnifying Party will be fully-responsible. The Indemnified Party will cooperate with the Indemnifying Party in such Party’s defense of any claim
for which indemnity is sought under this Agreement, at the Indemnifying Party’s sole cost and expense. 

  

	 	13.4.	Other Third Party Claims. If a Third Party brings a claim of any nature arising out of [***] other than [***], the [***] will [***]. [***] will [***]. The [***] will [***]. The [***]. If [***].

  

	 	13.5.	Insurance. 

  

	 	13.5.1.	Coverage. From and after the Effective Date, each Party will, at its sole cost and expense, procure and maintain the following policies, each naming the other Party and its Indemnified Parties as
additional insureds: 

  

	 	(a)	[***] in amounts not less than $[***] annual aggregate; 

  

	 	(b)	[***] coverage in amounts not less than $[***]; 

  

	 	(c)	[***] in amounts not less than $[***] per incident and $[***] annual aggregate, which policy shall include [***], as applicable, and for [***]; and 

 

	 	(d)	[***] (also called [***]) in amounts not less than $[***] per claim and annual aggregate, covering [***]. 

  

	 	Each	such policy will be [***]. 

  

	 	13.5.2.	Evidence of Insurance. Each Party will provide the other Party with evidence of the insurance required under this Section 13.5 upon the other Party’s request. Each Party will provide the other
Party with notice at least 30 days prior to the cancellation, non-renewal or material change in such insurance. The cancelling or non-renewing Party will obtain
replacement insurance providing comparable coverage prior to the expiration of such 30-day period. 

  

	 	13.5.3.	Post-Termination Obligations. Each Party will maintain the insurance required under this Section 13.5 beyond the expiration or termination of this Agreement for a reasonable period after the period
during which either Party or its Affiliates or Sublicensees is Developing or Commercializing any Product, which in no event will be less than five years. 

  
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	 	13.5.4.	Affiliates, Sublicensees and Distributors. Each Party will (i) ensure that all applicable Affiliates of such Party are covered under such Party’s insurance policies as described in
Section 13.5.1 and (ii) require all of its Sublicensees and Distributors to comply with the provisions and obligations under this Section 13.5 as if such entity were such Party. 

 

	 	13.5.5.	No Limitation. The minimum amounts of insurance coverage required under this Section 13.5 will not be construed to create a limit of liability with respect to a Party’s indemnification
obligations under Section 13.1 or 13.2, as applicable, or with respect to such Party’s share of any Liabilities under Section 13.4. 

  

	 	13.5.6.	Self-Insurance. Notwithstanding the foregoing, [***] may self-insure to the extent that it self-insures for its other activities. 

 

	 	13.6.	Limitation of Consequential Damages. Except for (a) claims of a Third Party that are subject to indemnification under this ARTICLE 13, (b) claims arising out of a Party’s willful misconduct,
or (c) a Party’s breach of ARTICLE 15, neither Party nor any of its Affiliates will be liable to the other Party or its Affiliates for any incidental, consequential, special, punitive or other indirect damages or lost or imputed profits or
royalties, lost data or cost of procurement of substitute goods or services, whether liability is asserted in contract, tort (including negligence and strict product liability), indemnity or contribution, and irrespective of whether that Party or
any representative of that Party has been advised of, or otherwise might have anticipated the possibility of, any such loss or damage. 

ARTICLE 14 
 TERM;
TERMINATION 
  

	 	14.1.	Co-Co Agreement Term; Expiration. This Agreement is effective as of the Effective Date and, unless earlier terminated pursuant to the other provisions of this
ARTICLE 14, will continue in full force and effect until there is no longer any Global Development Plan or Global Commercialization Plan contemplating Development or Commercialization of the Shared Products in the Territory. 

 

	 	14.2.	Termination of the Agreement. 

  

	 	14.2.1.	Vertex’s Termination for Convenience. Vertex will be entitled to terminate this Agreement for convenience, in its entirety or with respect to one or more Shared Product(s),
by providing CRISPR 90 days’ written notice of such termination; provided, however, that if any termination under this Section 14.2.1 with respect to a Shared Product occurs after such Shared Product has received Marketing Approval,
Vertex will provide CRISPR no less than 270 days’ written notice of such termination. 

  
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	 	14.2.2.	Termination for Material Breach. 

  

	 	(a)	Vertex’s Right to Terminate. If CRISPR (or any CRISPR Entity(ies)) is in material breach of this Agreement, then Vertex may deliver notice of such material breach to
CRISPR. If the breach is curable, CRISPR will have [***] days from the receipt of such notice to cure such breach (except to the extent such breach involves the failure to make a payment when due, which breach must be cured within
[***] Business Days following receipt of such notice). If either CRISPR fails to cure such breach within such [***]-day or [***]-Business Day period, as applicable, or the breach is not subject to cure,
Vertex in its sole discretion may either (i) terminate this Agreement (A) if such breach relates solely to a particular Shared Product, with respect to the Shared Product affected by such breach or (B) if such breach relates to this
Agreement as a whole, in its entirety, by providing written notice to CRISPR or (ii) elect to exercise the alternative remedy provisions set forth in Section 14.5 (in lieu of termination). 

 

	 	(b)	CRISPR’s Right to Terminate. If Vertex is in material breach of this Agreement, then CRISPR may deliver notice of such material breach to Vertex. If the breach is curable,
Vertex will have [***] days following receipt of such notice to cure such breach (except to the extent such breach involves the failure to make a payment when due, which breach must be cured within [***] Business Days following receipt
of such notice). If Vertex fails to cure such breach within the [***]-day or [***]-Business Day period, as applicable, or the breach is not subject to cure, CRISPR in its sole discretion may either
(i) terminate this Agreement (A) if such breach relates solely to a particular Shared Product, with respect to the Shared Product affected by such breach or (B) if such breach relates to this Agreement as a whole, in its entirety, by
providing written notice to Vertex or (ii) elect to exercise the alternative remedy provisions set forth in Section 14.5 (in lieu of termination). 

  

	 	(c)	Disputes Regarding Material Breach. Notwithstanding the foregoing, if the Breaching Party in this Section 14.2.2 disputes in good faith the existence, materiality, or failure to cure of any such
breach that is not a payment breach, and provides notice to the Non-Breaching Party of such dispute within the relevant cure period, the Non-Breaching Party will not
have the right to terminate this Agreement in accordance with this Section 14.2.2, unless and until the relevant dispute has been resolved. It is understood and acknowledged that during the pendency of such dispute, all the terms and conditions
of this Agreement will remain in effect and the Parties will continue to perform all of their respective obligations hereunder. 

  
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	 	14.2.3.	Termination for Patent Challenge. If a Party (the “Challenging Party”) (A) commences or actively and voluntarily participates in any action or proceeding (including any Patent opposition
or re-examination proceeding), or otherwise asserts any claim, challenging or denying the validity or enforceability of any claim of any Patent that is licensed to the Challenging Party under this Agreement or
(B) actively and voluntarily assists any other Person in bringing or prosecuting any action or proceeding (including any Patent opposition or re-examination proceeding) challenging or denying the validity
or enforceability of any claim of any Patent that is licensed to the Challenging Party under this Agreement by the other Party (the “Non-Challenging Party”) (each of (A) and (B), a
“Patent Challenge”), then, to the extent permitted by Applicable Law, the Non-Challenging Party shall have the right, in its sole discretion, to give notice to the Challenging Party that the Non-Challenging Party may terminate the license(s) granted under such Patent to the Challenging Party [***] days following such notice, and, unless the Challenging Party withdraws or causes to be withdrawn all such
challenge(s), or in the case of ex-parte proceedings, multi-party proceedings, or other Patent Challenges that the Challenging Party does not have the power to unilaterally withdraw or cause to be withdrawn,
the Challenging Party ceases assisting any other party to such Patent Challenge and, to the extent the Challenging Party is a party to such Patent Challenge, it withdraws from such Patent Challenge within such
[***]-day period, the Non-Challenging Party shall have the right to deem the Challenging Party to have exercised an Opt-Out with
respect to any Shared Product(s) Covered by a Patent that is the subject of such Patent Challenge, by providing written notice thereof to the Challenging Party, in which case the provisions of Section 14.3 shall apply; provided,
however, [***]. The foregoing right of the Non-Challenging Party shall not apply with respect to any Patent Challenge where the Patent Challenge is made in defense of an assertion of the relevant Patent
that is first brought by the Non-Challenging Party against the Challenging Party. For the avoidance of doubt, any participation by the Challenging Party or its employees in any claim, challenge or proceeding
in response to a subpoena or as required under a pre-existing agreement between the Challenging Party’s employee(s) or consultant(s) and their prior employer(s) shall not constitute active and voluntary
participation or assistance and shall not give rise to the Non-Challenging Party’s right to deem the Challenging Party as having exercised an Opt-Out with respect
to any Shared Product hereunder. 

  

	 	14.2.4.	Termination for Insolvency. If CRISPR (or any CRISPR Entity(ies)) undergoes any Insolvency Event, then Vertex may terminate this Agreement in its entirety effective immediately upon written notice to
CRISPR. If an Insolvency Event occurs with respect to CRISPR (or any CRISPR Entity(ies)): 

  
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	 	(a)	All rights and licenses now or hereafter granted by CRISPR to Vertex under or pursuant to this Agreement, including, for the avoidance of doubt, any Exclusive Licenses, are, for all purposes of Section 365(n) of
the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined in the U.S. Bankruptcy Code. Upon the occurrence of any Insolvency Event with respect to CRISPR (or any CRISPR Entity(ies)), CRISPR agrees that Vertex, as
licensee of such rights under this Agreement, will retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code. CRISPR will, during the Co-Co Agreement Term, create and
maintain current copies or, if not amenable to copying, detailed descriptions or other appropriate embodiments, to the extent feasible, of all intellectual property licensed under this Agreement. Each Party acknowledges and agrees that
“embodiments” of intellectual property within the meaning of Section 365(n) include laboratory notebooks, cell lines, product samples and inventory, research studies and data, all Regulatory Approvals (and all applications for
Regulatory Approval) and rights of reference therein, the Licensed CRISPR Technology and all information related to the Licensed CRISPR Technology. If (x) a case under the U.S. Bankruptcy Code is commenced by or against CRISPR (or any CRISPR
Entity(ies)), (y) this Agreement is rejected as provided in the U.S. Bankruptcy Code, and (z) Vertex elects to retain its rights hereunder as provided in Section 365(n) of the U.S. Bankruptcy Code, CRISPR (in any capacity, including debtor-in-possession) and its successors and assigns (including a trustee) will: 

  

	 	(i)	provide to Vertex all such intellectual property (including all embodiments thereof) held by CRISPR and such successors and assigns, or otherwise available to them, immediately upon Vertex’s written request.
Whenever CRISPR or any of its successors or assigns provides to Vertex any of the intellectual property licensed hereunder (or any embodiment thereof) pursuant to this Section 14.2.4(a)(i), Vertex will have the right to perform CRISPR’s
obligations hereunder with respect to such intellectual property, but neither such provision nor such performance by Vertex will release CRISPR from liability resulting from rejection of the license or the failure to perform such obligations; and

  

	 	(ii)	not interfere with Vertex’s rights under this Agreement, or any agreement supplemental hereto, to such intellectual property (including such embodiments), including any right to obtain such intellectual property
(or such embodiments) from another entity, to the extent provided in Section 365(n) of the U.S. Bankruptcy Code. 

  
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	 	(b)	All rights, powers and remedies of Vertex provided herein are in addition to and not in substitution for any and all other rights, powers and remedies now or hereafter existing at law or in equity (including the U.S.
Bankruptcy Code) in the event of the commencement of a case under the U.S. Bankruptcy Code with respect to CRISPR. The Parties agree that they intend the following rights to extend to the maximum extent permitted by Applicable Law, and to be
enforceable under U.S. Bankruptcy Code Section 365(n): 

  

	 	(i)	the right of access to any intellectual property rights (including all embodiments thereof) of CRISPR, or any Third Party with whom CRISPR contracts to perform an obligation of CRISPR under this Agreement, and, in the
case of any such Third Party, which is necessary for the Manufacture, use, sale, import or export of Shared Products; and 

  

	 	(ii)	the right to contract directly with any Third Party to complete the contracted work. 

  

	 	14.3.	Opt-Out. 

  

	 	14.3.1.	On a Shared Product-by-Shared Product basis, after [***] either Party may opt out of this Agreement with respect to such Shared Product
(the “Opt-Out Product”) upon [***] days’ notice to the other Party (“Opt-Out”). The other Party shall pay such opting out Party
royalties on Net Sales (as defined in the Collaboration Agreement) of such Opt-Out Product (“Opt-Out Royalties”) in accordance with this
Section 14.3, and the terms of Sections 7.5.2, 7.5.3, 7.5.4 and 7.5.5 of the Collaboration Agreement shall apply to such royalties, mutatis mutandis. The applicable royalty rates shall be determined in accordance with the table set forth
below based on the timing of the Opt-Out notice for the applicable Opt-Out Product. Upon the other Party’s receipt of such notice, all rights and obligations under
this Agreement with respect to the Opt-Out Product shall terminate, except for the obligations set forth in this Section 14.3. 

  
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	 Timing of Opt Out

for an Opt-Out

Product
	 	 Net Sales (in Dollars) for

such Opt-Out Product in

the Territory
	 	
Opt-Out Royalty Rates

as a Percentage (%) of Net Sales of

such Opt-Out Product

	 [***]
	 	[***]	 	[***]
	 	[***]	 	[***]
	 	[***]	 	[***]
	 	[***]	 	[***]
	 [***]
	 	[***]	 	[***]
	 	[***]	 	[***]
	 	[***]	 	[***]
	 	[***]	 	[***]

  

	 	14.3.2.	If the opting out Party is CRISPR, the Opt-Out Product shall be deemed a Product (as defined in the Collaboration Agreement) directed to a Collaboration Target other than a [***]
under the Collaboration Agreement, and the terms and conditions of the Collaboration Agreement shall apply with respect to the Opt-Out Product, provided that, in lieu of the royalty rates payable under
Section 7.5.1 of the Collaboration Agreement Vertex shall pay royalties at the rates set forth in this Section 14.3; and provided, further, that Vertex shall have no obligation to pay to CRISPR any milestone payment under
Section 7.3 of the Collaboration Agreement with respect to such Opt-Out Product. 

  

	 	14.3.3.	If the opting out Party is Vertex, the Parties shall negotiate in good faith a termination agreement for the Opt-Out Product, including the obligation to pay royalties as set forth in this Section 14.3 and the following
provisions: 

  

	 	(a)	CRISPR (acting directly or through one or more Affiliates or Sublicensees) will use Commercially Reasonable Efforts to [***] for the [***] in all [***]; 

 

	 	(b)	CRISPR (acting directly or through one or more Affiliates or Sublicensees) will use Commercially Reasonable Efforts to [***], the [***] in each [***] where [***]; 

 

	 	(c)	CRISPR will prepare a Development and Commercialization plan setting forth in reasonable detail (which detail shall be at least sufficient for Vertex to evaluate CRISPR’s compliance with its obligations under this
Agreement) CRISPR’s plans for (a) the Development of the Opt-Out Product through [***] and (b) starting upon [***] for the Opt-Out Product and continuing thereafter until the expiration of the applicable Royalty Term, Commercialization of
the Opt-Out Product, as appropriate for the stage of the Opt-Out Product, including a launch plan for each [***]; and 

  

	 	(d)	following the first sale of the Opt-Out Product giving rise to Net Sales (as defined in the Collaboration Agreement), within [***] days after the end of each Calendar Quarter, CRISPR will deliver a report to Vertex
specifying on a country-by-country basis: [***]. All royalty payments due for each Calendar Quarter will be due and payable within [***] days after CRISPR’s delivery of the applicable report. 

 

	 	14.3.4.	Following any Opt-Out with respect to an Opt-Out Product, the opting out Party shall, within a reasonable time as mutually agreed by the
Parties, (i) transfer to the other Party all Regulatory Filings with respect to such Opt-Out Product, (ii) conduct any technology transfer with respect to such
Opt-Out Product as reasonably requested by the non-opting out Party and (iii) use reasonable efforts to transfer to the
non-opting out Party any existing relationships with key vendors to the extent relating to such Opt-Out Product. The Expenses of all activities under this
Section 14.3.4 shall be shared equally by the Parties. 

  
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	 	14.3.5.	If the opting out Party is conducting Manufacturing activities with respect to the Opt-Out Product at the time of such Opt-Out, the opting
out Party will continue to supply the other Party’s requirements of the Opt-Out Product, at the other Party’s expense at cost of Manufacturing such Opt-Out
Product, until such time as the Parties are able to complete a technology transfer of the applicable Manufacturing technology to the other Party or its designated CMO, and the other Party or such CMO is capable of supplying the other Party’s
requirements of the Opt-Out Product. The Expenses of technology transfer activities under this Section 14.3.5, including any Expenses incurred in establishing a CMO capable of Manufacturing the Opt-Out Products, shall be shared equally by the Parties. 

  

	 	14.3.6.	For the avoidance of doubt, the allocation of [***] and [***] pursuant to Section [***] with respect to an Opt-Out Product shall terminate upon the effectiveness of the Opt-Out for such Opt-Out Product. 

  

	 	14.4.	Consequences of Expiration or Certain Terminations of the Agreement. If this Agreement expires or is terminated by a Party with respect to one or more Shared Products (each, a “Terminated
Product”) in accordance with Section 14.2 at any time and for any reason, the following terms will apply with respect to each Terminated Product: 

  

	 	14.4.1.	The Parties will return (or destroy, as directed by the other Party) all data, files, records and other materials containing or comprising the other Party’s Confidential Information with respect to the Terminated
Product, unless such Confidential Information also relates to other products that are subject to the Collaboration Agreement or are necessary for a Party to exercise its rights under Section 14.3. Notwithstanding the foregoing, the Parties will
be permitted to retain one copy of such data, files, records, and other materials for archival and legal compliance purposes. 

  

	 	14.4.2.	Termination or expiration of this Agreement for any reason will be without prejudice to any rights or financial compensation that will have accrued to the benefit of a Party with respect to the Terminated Product prior
to such termination or expiration. Such termination or expiration will not relieve a Party from obligations that are expressly indicated to survive the termination or expiration of this Agreement. 

 

	 	14.4.3.	Except as may be necessary for a Party to exercise the rights set forth in Section 14.3, all licenses granted by a Party to the other Party under this Agreement with respect to the Terminated Product will terminate
and each Party and its Affiliates will cease all Research, Development, Manufacture and Commercialization activities with respect to the Terminated Product. 

  
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	 	14.4.4.	Except as may be necessary for a Party to exercise the rights set forth in Section 14.3, Vertex will assign back to the CRISPR Entity designated by CRISPR AG any Patents assigned to Vertex under Section 8.1.3
of the Collaboration Agreement that relate to the Terminated Product to the extent that such Patents do not also relate to other products for which Vertex is retaining an exclusive license under the Collaboration Agreement. 

 

	 	14.4.5.	Except as set forth in Section 14.3, neither Party will have any further rights or obligations with respect to the Terminated Product. 

 

	 	14.5.	Alternative Remedies for Material Breach. If a Party has the right to terminate this Agreement in its entirety or with respect to one or more Shared Products for the other Party’s material breach
pursuant to Section 14.2.2, the non-breaching Party may elect, in lieu of exercising such right, to keep this Agreement in effect, in which case the provisions of Section 14.3 shall apply,
[***]%. 

  

	 	14.6.	Survival. The following provisions of this Agreement will survive any expiration or termination of this Agreement: ARTICLE 1, ARTICLE 7 (with respect to any amounts owed as of the time of expiration or
termination or paid during the Co-Co Agreement Term), Section 10.1, Section 10.4, Section 10.6, ARTICLE 11, Section 12.5, Section 12.6, ARTICLE 13, Section 14.3,
Section 14.4, Section 14.6, ARTICLE 15, Section 16.1, Sections 16.3-16.18. 

ARTICLE 15 

CONFIDENTIALITY 
 The terms
of Article 12 of the Collaboration Agreement will apply with respect to any and all information disclosed by the Disclosing Party to the Receiving Party under this Agreement that meets the definition of Confidential Information under the
Collaboration Agreement (including, for clarity, the terms of this Agreement). 
 ARTICLE 16 

MISCELLANEOUS 
  

	 	16.1.	 Assignment. Neither this Agreement nor any interest hereunder will be assignable by either Party
without the prior written consent of the other Party, except as follows: (a) Vertex, and subject to Section 16.2, CRISPR, may, subject to the terms of this Agreement, assign its rights and obligations under this Agreement by way of
sale of itself or the sale of the portion of such Party’s business to which this Agreement relates, through merger, sale of assets or sale of stock or ownership interest; provided that such sale is not primarily for the benefit of its
creditors; and provided, further, that no CRISPR Entity may assign its rights and obligations hereunder unless all CRISPR Entities are assigning their rights and obligations hereunder to the same Third Party; and (b) either Party
may assign its rights and obligations under this Agreement to any of its Affiliates; provided that such Party will remain liable for all of its rights and obligations 

  
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under this Agreement. An assigning Party will promptly notify the other Party of any assignment or transfer under the provisions of this Section 16.1. This Agreement will be binding upon the
successors and permitted assigns of the Parties and the name of a Party appearing herein will be deemed to include the names of such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this Agreement. Any
assignment not in accordance with this Section 16.1 will be void. 
  

	 	16.2.	Change of Control. 

  

	 	16.2.1.	Effects of Change of Control. 

  

	 	(a)	If during the Co-Co Agreement Term, any CRISPR Entity undergoes a Change of Control to a Competitor, then CRISPR shall [***]. 

 

	 	(b)	If during the Co-Co Agreement Term, Vertex undergoes a Change of Control to a Competitor, then Vertex shall [***]. 

 

	 	16.3.	Force Majeure. Each Party will be excused from the performance of its obligations under this Agreement to the extent that such performance is prevented by Force Majeure and the nonperforming Party promptly
provides notice of the prevention to the other Party. Such excuse will be continued so long as the condition constituting force majeure continues and the nonperforming Party uses Commercially Reasonable Efforts to remove the condition.

  

	 	16.4.	Representation by Legal Counsel. Each Party hereto represents that it has been represented by legal counsel in connection with this Agreement and acknowledges that it has participated in the drafting
hereof. In interpreting and applying the terms and provisions of this Agreement, the Parties agree that no presumption will exist or be implied against the Party that drafted such terms and provisions. 

 

	 	16.5.	Notices. All notices which are required or permitted hereunder will be in writing and sufficient if delivered personally, sent by nationally-recognized overnight courier or sent by electronic mail,
confirmation of receipt requested, addressed as follows: 

 If to Vertex: 

Vertex Pharmaceuticals Incorporated 

Attn: Business Development 
 50
Northern Avenue 
 Boston, Massachusetts 02110 

E-mail: phil_tinmouth@vrtx.com 

with a copy to: 
 Vertex
Pharmaceuticals Incorporated 

  
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 Attn: Corporate Legal 

50 Northern Avenue 
 Boston,
Massachusetts 02110 
 E-mail: paige_goodwin@vrtx.com 

and: 
 Ropes & Gray LLP

 Attn: Marc A. Rubenstein 

Prudential Tower 
 800 Boylston
Street 
 Boston, Massachusetts 02199-3600 

E-mail: marc.rubenstein@ropesgray.com 

If to CRISPR: 
 CRISPR
Therapeutics AG 
 Attn: Chief Executive Officer 

Baarerstrasse 14 
 6300 Zug 

Switzerland 
 Email:
samarth.kulkarni@crisprtx.com 
 with a copy to: 

Goodwin Procter LLP 
 Attn:
Christopher Denn 
 100 Northern Avenue 

Boston, Massachusetts 02210 
 E-mail: cdenn@goodwinlaw.com 
 or to such other address as the Party to whom notice is to be given may
have furnished to the other Party in writing in accordance herewith. Any such notice will be deemed to have been given: (a) when delivered if personally delivered on a Business Day (or if delivered or sent on a
non-business day, then on the next Business Day); (b) on receipt if sent by overnight courier; or (c) when confirmation of receipt is sent, if sent by electronic mail. Any notices required or
permitted under this Agreement that are delivered by Vertex to CRISPR AG pursuant to this Section 16.5 shall be deemed properly delivered hereunder to each of CRISPR UK, CRISPR AG, CRISPR Inc. and Tracr. 

 

	 	16.6.	Amendment. No amendment, modification or supplement of any provision of this Agreement will be valid or effective unless made in writing and signed by a duly authorized officer of each of Vertex Parent,
Vertex UK and CRISPR AG, CRISPR Inc., CRISPR UK and Tracr. 

  
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	 	16.7.	Waiver. No provision of this Agreement will be waived by any act, omission or knowledge of a Party or its agents or employees except by an instrument in writing expressly waiving such provision and signed
by a duly authorized officer of the waiving Party. The waiver by either of Vertex or CRISPR of any breach of any provision hereof by the other Party will not be construed to be a waiver of any succeeding breach of such provision or a waiver of the
provision itself. Written waiver of any provision of this Agreement by of any one of the CRISPR Entities in accordance with this Section 16.7 shall be binding upon each of CRISPR UK, CRISPR AG, CRISPR Inc. and Tracr. 

 

	 	16.8.	Severability. If any clause or portion thereof in this Agreement is for any reason held to be invalid, illegal or unenforceable, the same will not affect any other portion of this Agreement, as it is the
intent of the Parties that this Agreement will be construed in such fashion as to maintain its existence, validity and enforceability to the greatest extent possible. In any such event, this Agreement will be construed as if such clause of portion
thereof had never been contained in this Agreement, and there will be deemed substituted therefor such provision as will most nearly carry out the intent of the Parties as expressed in this Agreement to the fullest extent permitted by Applicable
Law. 

  

	 	16.9.	Descriptive Headings. The descriptive headings of this Agreement are for convenience only and will be of no force or effect in construing or interpreting any of the provisions of this Agreement.

  

	 	16.10.	Export Control. This Agreement is made subject to any restrictions concerning the export of products or technical information from the United States of America or other countries that may be imposed upon
or related to CRISPR or Vertex from time to time. Each Party agrees that it will not export, directly or indirectly, any technical information acquired from the other Party under this Agreement or any products using such technical information to a
location or in a manner that at the time of export requires an export license or other governmental approval, without first obtaining the written consent to do so from the appropriate Governmental Authority. 

 

	 	16.11.	Governing Law. This Agreement, and all claims arising under or in connection therewith, will be governed by and interpreted in accordance with the substantive laws of The Commonwealth of Massachusetts,
without regard to conflict of law principles thereof. 

  

	 	16.12.	Entire Agreement. This Agreement, together with the Collaboration Agreement, constitutes and contains the complete, final and exclusive understanding and agreement of the Parties and cancels and supersedes
any and all prior negotiations, correspondence, understandings and agreements, whether oral or written, between the Parties respecting the subject matter hereof and thereof. 

 

	 	16.13.	 Independent Contractors. Both Parties are independent contractors under this Agreement. Nothing
herein contained will be deemed to create an employment, agency, joint venture or partnership relationship between the Parties hereto or any of their agents or employees, or any other legal arrangement that would impose

  
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liability upon one Party for the act or failure to act of the other Party. Neither Party will have any express or implied power to enter into any contracts or commitments or to incur any
liabilities in the name of, or on behalf of, the other Party, or to bind the other Party in any respect whatsoever. 

  

	 	16.14.	Interpretation. Except where the context expressly requires otherwise, (a) the use of any gender herein will be deemed to encompass references to either or both genders, and the use of the
singular will be deemed to include the plural (and vice versa), (b) the words “include,” “includes” and “including” will be deemed to be followed by the phrase “without limitation,” (c) the word
“will” will be construed to have the same meaning and effect as the word “shall,” (d) any definition of or reference to any agreement, instrument or other document herein will be construed as referring to such agreement,
instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (e) any reference herein to any Person will be
construed to include the Person’s successors and assigns, (f) the words “herein,” “hereof” and “hereunder,” and words of similar import, will be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (g) all references herein to Sections, Schedules or Exhibits will be construed to refer to Sections, Schedules or Exhibits of this Agreement, and references to this Agreement include all Schedules and Exhibits
hereto, (h) the word “notice” will mean notice in writing (whether or not specifically stated) and will include notices, consents, approvals and other written communications contemplated under this Agreement, (i) provisions that
require that a Party, the Parties or any committee hereunder “agree,” “consent” or “approve” or the like will require that such agreement, consent or approval be specific and in writing, whether by written agreement,
letter, approved minutes or otherwise (but excluding e-mail and instant messaging), (j) references to any specific law, rule or regulation, or article, section or other division thereof, will be deemed to
include the then-current amendments thereto or any replacement or successor law, rule or regulation thereof and (k) the term “or” will be interpreted in the inclusive sense commonly associated with the term “and/or.”

  

	 	16.15.	No Third Party Rights or Obligations. No provision of this Agreement will be deemed or construed in any way to result in the creation of any rights or obligations in any Person not a Party to this
Agreement. 

  

	 	16.16.	Further Actions. Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and
intent of this Agreement. 

  

	 	16.17.	Counterparts. This Agreement may be executed in two counterparts, each of which will be an original and both of which will constitute together the same document. Counterparts may be signed and delivered by
facsimile or digital transmission (.pdf), each of which will be binding when received by the applicable Party. 

  
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	 	16.18.	CRISPR Entities. Notwithstanding anything to the contrary in this Agreement: 

  

	 	16.18.1. 	CRISPR UK, CRISPR AG, CRISPR Inc. and Tracr shall be jointly and severally liable to Vertex for all obligations of CRISPR under this Agreement; 

 

	 	16.18.2. 	Breach or violation of any representation, warranty covenant or other obligation of CRISPR under this Agreement may result from, be caused by or arise from the act or omission of any one or more of the CRISPR Entities;

  

	 	16.18.3. 	Any particular right or interest of CRISPR under this Agreement shall only be exercisable once by the first CRISPR Entity to exercise such right or interest hereunder on behalf of CRISPR (i.e., Vertex shall not
be liable to more than one CRISPR Entity with respect to any particular right or interest of CRISPR hereunder, including any payment obligations of Vertex hereunder); and 

 

	 	16.18.4. 	Any consent or approval of CRISPR permitted or required under this Agreement by any one of CRISPR UK, CRISPR AG, CRISPR Inc. or Tracr shall be binding upon all of the CRISPR Entities. 

[SIGNATURE PAGE FOLLOWS] 

*   *   *   * 

  
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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
representatives thereunto duly authorized as of the Effective Date. 
  

									
	VERTEX PHARMACEUTICALS INCORPORATED	 		 	CRISPR THERAPEUTICS AG
					
	By:	 	/s/ Ian Smith	 		 	By:	 	/s/ Rodger Novak
	Name:	 	Ian Smith	 		 	Name:	 	Rodger Novak
	Title:	 	Executive Vice President, Chief Operating Officer	 		 	Title:	 	President
			
	VERTEX PHARMACEUTICALS (EUROPE) LIMITED	 		 	CRISPR THERAPEUTICS LIMITED
					
	By:	 	/s/ Ian Smith	 		 	By:	 	/s/ Tyler Dylan-Hyde
	Name:	 	Ian Smith	 		 	Name:	 	Tyler Dylan-Hyde
	Title:	 	Director	 		 	Title:	 	Director and Chief Legal Officer
				
		 		 		 	CRISPR THERAPEUTICS, INC.
					
		 		 		 	By:	 	/s/ Rodger Novak
		 		 		 	Name:	 	Rodger Novak
		 		 		 	Title:	 	President
				
		 		 		 	TRACR HEMATOLOGY LTD.
					
		 		 		 	By:	 	/s/ Tyler Dylan-Hyde
		 		 		 	Name:	 	Tyler Dylan-Hyde
		 		 		 	Title:	 	Director

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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 SCHEDULE A 

[***] ARBITRATION 
 Selection of
[***] Expert and Submission of Positions. The Parties will select and agree upon a mutually acceptable independent Third Party expert who is neutral, disinterested and impartial, and has the experience specified in Section 2.8 for
the applicable dispute (the “[***] Expert”). If the Parties are unable to mutually agree upon a [***] Expert within [***] days following the delivery of the request for [***] Arbitration, then upon request by either Party,
the [***] Expert will be an arbitrator appointed by Judicial and Mediation Services (“JAMS”), which arbitrator need not have the above-described experience. Once the [***] Expert has been selected, each Party will within [***] days
following selection of the [***] Expert provide the [***] Expert and the other Party with a written report setting forth its position with respect to the substance of the dispute and may submit a revised or updated report and position to the [***]
Expert within [***] days of receiving the other Party’s report. If so requested by the [***] Expert, each Party will make oral submissions to the [***] Expert based on such Party’s written report, and each Party will have the right to be
present during any such oral submissions. 
 JAMS Supervision. In the event the [***] Expert is a JAMS arbitrator selected by JAMS as provided in
this Schedule A, the matter will be conducted as a binding arbitration in accordance with JAMS procedures, as modified by this Schedule A (including that the arbitrator will adopt as his or her decision the position of one Party or the
other, as described below). In such event, the arbitrator may retain a Third Party expert with the same experience specified in Section 2.8 for the [***] Expert to assist in rendering such decision, and the expenses of any such expert will be shared
by the Parties as costs of the arbitration as provided in this Schedule A. 
 Determination by the [***] Expert. The [***] Expert will, no
later than [***] days after the last submission of the written reports and, if any, oral submissions, select one of the Party’s positions as his or her final decision, and will not have the authority to modify either Party’s position or
render any substantive decision other than to so select the position of either Party as set forth in their respective written report (as initially submitted, or as revised in accordance with this Schedule A, as applicable). The decision of
the [***] Expert will be the sole, exclusive and binding remedy between them regarding the dispute submitted to such [***] Expert. 
 Location;
Costs. Unless otherwise mutually agreed upon by the Parties in writing, the in-person portion (if any) of such proceedings will be conducted in Boston, Massachusetts. [***] 

Timetable for Completion in [***] Days. The Parties will use, and will direct the [***] Expert to use, commercially reasonable efforts to
resolve a dispute within [***] days after the selection of the [***] Expert, or if resolution within [***] days is not reasonably achievable, as determined by the [***] Expert, then as soon thereafter as is reasonably practicable 

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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 SCHEDULE B 

RESERVED 

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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 SCHEDULE C-1 

PROJECT TEAM FUNCTIONS 
  

	
	 Functions on Project team

	 [***]

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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 SCHEDULE C-2 

INITIAL PROJECT TEAM MEMBERS 

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 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

 SCHEDULE D 

INITIAL CLINICAL TRIALS 

[***] 

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

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 SCHEDULE E 

CRISPR IN-LICENSE AGREEMENTS 

[***] 

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

 SCHEDULE F 

VERTEX IN-LICENSE AGREEMENTS 

[***] 

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

Table of Contents

 SCHEDULE G 

CRISPR DISCLOSURE SCHEDULE 

[***] 

  
 [***] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

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