Document:

tego_ex10-1

  Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE
AGREEMENT (the “Agreement”), dated as of
December 28, 2020, by and between TEGO CYBER INC., a Nevada corporation,
with headquarters located at 8565 South Eastern Avenue, Suite 150,
Las Vegas, Nevada 89123 (the “Company”), and
FIRSTFIRE GLOBAL OPPORTUNITIES
FUND, LLC, a Delaware limited liability company, with its
address at 1040 First Avenue, Suite 190, New York, NY 10022 (the
“Buyer”).

 

WHEREAS:

 

A. The Company and the
Buyer are executing and delivering this Agreement in reliance upon
the exemption from securities registration afforded by Section
4(a)(2) of the Securities Act of 1933, as amended (the “1933
Act”) and Rule 506(b) promulgated by the United States
Securities and Exchange Commission (the “SEC”) under
the 1933 Act;

 

B. Buyer desires to
purchase from the Company, and the Company desires to issue and
sell to the Buyer, upon the terms and conditions set forth in this
Agreement, a Convertible Promissory Note of the Company, in the
aggregate principal amount of $120,000.00 (as the principal amount
thereof may be increased pursuant to the terms thereof, and
together with any note(s) issued in replacement thereof or as a
dividend thereon or otherwise with respect thereto in accordance
with the terms thereof, in the form attached hereto as Exhibit A (the
“Note”), convertible into shares of common stock,
$0.001 par value per share, of the Company (the “Common
Stock”), upon the terms and subject to the limitations and
conditions set forth in such Note;

 

C. Buyer desires to
purchase from the Company, and the Company desires to issue and
sell to the Buyer, upon the terms and conditions set forth in this
Agreement, a Warrant in accordance with the terms thereof, in the
form attached hereto as Exhibit B (the
“Warrant”), exercisable into shares of Common Stock,
upon the terms and subject to the limitations and conditions set
forth in such Warrant; and

 

D. Company desires to
issue to Buyer 110,000 shares of Common Stock (the
“Commitment Shares”).

 

NOW THEREFORE, in consideration of the
foregoing and of the agreements and covenants herein contained, and
for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the
Buyer hereby agree as follows:

 

1.

Purchase and Sale of Note and Warrant.

 

a. Purchase of Note and Warrant.
On the Closing Date (as defined below), the Company shall issue and
sell to the Buyer and the Buyer agrees to purchase from the Company
the Note and the Warrant, subject to the express terms of the Note,
the Warrant, and this Agreement as the case may be.

 

b. Form of Payment. On the Closing
Date, the Buyer shall pay the purchase price of $110,000.00 (the
“Purchase Price”) for the Note, by wire transfer of
immediately available funds, in accordance with the Company’s
written wiring instructions, against delivery of the Note, the
Warrant, and the Commitment Shares, and the Company shall deliver
such duly executed Note, Warrant, and Commitment Shares on behalf
of the Company, to the Buyer.

 

c. Closing Date. Subject to the
satisfaction (or written waiver) of the conditions thereto set
forth in Section 6 and Section 7 below, the date and time of the
issuance and sale of the Note and Warrant pursuant to this
Agreement (the “Closing Date”) shall be 4:00 PM,
Eastern Time on the date first written above, or such other
mutually agreed upon time.

 

 

1

 

 

d. Closing. The closing of the
transactions contemplated by this Agreement (the
“Closing”) shall occur on the Closing Date at such
location as may be agreed to by the parties (including via exchange
of electronic signatures).

 

e. Commitment Shares. Upon
Closing, Company shall issue 110,000 Commitment Shares to Buyer.
The Commitment Shares shall be deemed fully earned upon such
Closing and shall be non-returnable.

 

2. Buyer’s Representations and
Warranties. The Buyer represents and warrants to the Company
as of the Closing Date that:

 

a. Investment Purpose. As of the
Closing Date, the Buyer is purchasing the Note and Warrant and the
shares of Common Stock issuable upon conversion or exercise of or
otherwise pursuant to the Note or Warrant and such additional
shares of Common Stock, if any, as are issuable on account of
interest on the Note and Warrant pursuant to this Agreement, such
shares of Common Stock being collectively referred to herein as the
“Conversion Shares” and, collectively with the Note,
Warrant, and Commitment Shares, the “Securities”) for
its own account and not with a present view towards the public sale
or distribution thereof, except pursuant to sales registered or
exempted from registration under the 1933 Act; provided, however, that by making the
representations herein, the Buyer does not agree to hold any of the
Securities for any minimum or other specific term and reserves the
right to dispose of the Securities at any time in accordance with
or pursuant to a registration statement or an exemption under the
1933 Act.

 

b. Accredited Investor Status. The
Buyer is an “accredited investor” as that term is
defined in Rule 501(a) of Regulation D (an “Accredited
Investor”).

 

c. Reliance on Exemptions. The
Buyer understands that the Securities are being offered and sold to
it in reliance upon specific exemptions from the registration
requirements of United States federal and state securities laws and
that the Company is relying upon the truth and accuracy of, and the
Buyer’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of the Buyer set
forth herein in order to determine the availability of such
exemptions and the eligibility of the Buyer to acquire the
Securities.

 

d. Information. The Buyer and its
advisors, if any, have been, and for so long as any of the
Securities remain outstanding will continue to be, furnished with
all materials relating to the business, finances and operations of
the Company and materials relating to the offer and sale of the
Securities which have been requested by the Buyer or its advisors.
The Buyer and its advisors, if any, have been, and for so long as
the Note or Warrant remains outstanding will continue to be,
afforded the opportunity to ask questions of the Company regarding
its business and affairs. Notwithstanding the foregoing, the
Company has not disclosed to the Buyer any material nonpublic
information regarding the Company or otherwise and will not
disclose such information unless such information is disclosed to
the public prior to or promptly following such disclosure to the
Buyer. Neither such inquiries nor any other due diligence
investigation conducted by Buyer or any of its advisors or
representatives shall modify, amend or affect Buyer’s right
to rely on the Company’s representations and warranties
contained in Section 3 below.

 

e. Governmental Review. The Buyer
understands that no United States federal or state agency or any
other government or governmental agency has passed upon or made any
recommendation or endorsement of the Securities.

 

 

2

 

 

f. Transfer or Re-sale. The Buyer
understands that (i) the sale or resale of the Securities has not
been and is not being registered under the 1933 Act or any
applicable state securities laws, and the Securities may not be
transferred unless (a) the Securities are sold pursuant to an
effective registration statement under the 1933 Act, (b) the Buyer
shall have delivered to the Company, at the cost of the Company, an
opinion of counsel (which may be the Legal Counsel Opinion (as
defined below)) that shall be in form, substance and scope
customary for opinions of counsel in comparable transactions to the
effect that the Securities to be sold or transferred may be sold or
transferred pursuant to an exemption from such registration, which
opinion shall be accepted by the Company, (c) the Securities are
sold or transferred to an “affiliate” (as defined in
Rule 144 promulgated under the 1933 Act (or a successor rule)
(“Rule 144”)) of the Buyer who agrees to sell or
otherwise transfer the Securities only in accordance with this
Section 2(f) and who is an Accredited Investor, (d) the Securities
are sold pursuant to Rule 144 or other applicable exemption, or (e)
the Securities are sold pursuant to Regulation S under the 1933 Act
(or a successor rule) (“Regulation S”), and the Buyer
shall have delivered to the Company, at the cost of the Company, an
opinion of counsel that shall be in form, substance and scope
customary for opinions of counsel in corporate transactions, which
opinion shall be accepted by the Company; (ii) any sale of such
Securities made in reliance on Rule 144 may be made only in
accordance with the terms of said Rule and further, if said Rule is
not applicable, any re-sale of such Securities under circumstances
in which the seller (or the person through whom the sale is made)
may be deemed to be an underwriter (as that term is defined in the
1933 Act) may require compliance with some other exemption under
the 1933 Act or the rules and regulations of the SEC thereunder;
and (iii) neither the Company nor any other person is under any
obligation to register such Securities under the 1933 Act or any
state securities laws or to comply with the terms and conditions of
any exemption thereunder (in each case).

 

g. Legends. The Buyer understands
that until such time as the Note, and, upon conversion of the Note
in accordance with its respective terms, the Conversion Shares,
have been registered under the 1933 Act or may be sold pursuant to
Rule 144, Rule 144A under the 1933 Act, Regulation S, or other
applicable exemption without any restriction as to the number of
securities as of a particular date that can then be immediately
sold, the Securities may bear a restrictive legend in substantially
the following form (and a stop-transfer order may be placed against
transfer of the certificates for such Securities):

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
[CONVERTIBLE/EXERCISABLE] HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE
SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD
PURSUANT TO RULE 144, RULE 144A, REGULATION S, OR OTHER APPLICABLE
EXEMPTION UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.”

 

 

3

 

 

The
legend set forth above shall be removed and the Company shall issue
a certificate for the applicable shares of Common Stock without
such legend to the holder of any Security upon which it is stamped
or (as requested by such holder) issue the applicable shares of
Common Stock to such holder by electronic delivery by crediting the
account of such holder’s broker with The Depository Trust
Company (“DTC”),
if, unless otherwise required by applicable state securities laws,
(a) such Security is registered for sale under an effective
registration statement filed under the 1933 Act or otherwise may be
sold pursuant to Rule 144, Rule 144A, Regulation S, or other
applicable exemption without any restriction as to the number of
securities as of a particular date that can then be immediately
sold, or (b) the Company or the Buyer provides the Legal Counsel
Opinion (as contemplated by and in accordance with Section 4(m)
hereof) to the effect that a public sale or transfer of such
Security may be made without registration under the 1933 Act, which
opinion shall be accepted by the Company so that the sale or
transfer is effected. The Company shall be responsible for the fees
of its transfer agent and all DTC fees associated with any such
issuance, up to a maximum of $500 per issuance. The Buyer agrees to
sell all Securities, including those represented by a
certificate(s) from which the legend has been removed, in
compliance with applicable prospectus delivery requirements, if
any. In the event that the Company does not accept the opinion of
counsel provided by the Buyer with respect to the transfer of
Securities pursuant to an exemption from registration, such as Rule
144, Rule 144A, Regulation S, or other applicable exemption at the
Deadline (as defined in the Note), it will be considered an Event
of Default pursuant to Section 3.2 of the Note.

 

h. Authorization; Enforcement.
This Agreement has been duly and validly authorized by the Buyer
and has been duly executed and delivered on behalf of the Buyer,
and this Agreement constitutes a valid and binding agreement of the
Buyer enforceable in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting
creditors’ rights generally and except as may be limited by
the exercise of judicial discretion in applying principles of
equity.

 

i. Manipulation of Price. The
Buyer has not, and to its knowledge no one acting on its behalf
has: (i) taken, directly or indirectly, any action designed to
cause or to result, or that could reasonably be expected to cause
or result, in the stabilization or manipulation of the price of any
security of the Company, (ii) sold, bid for, purchased, or paid any
compensation for soliciting purchases of, any Stock in the open
market, or (iii) paid or agreed to pay to any person any
compensation for soliciting another to purchase any other
securities of the Company.

 

j. No Shorting. Buyer and its
affiliates shall be prohibited from engaging directly or indirectly
in any short selling or hedging transactions with respect to any
securities of the Company while this Note is
outstanding.

 

3. Representations and Warranties of the
Company. The Company represents and warrants to the Buyer as
of the Closing Date that:

 

a. Organization and Qualification.
The Company and each of its Subsidiaries (as defined below), if
any, is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction in which it is
incorporated, with full power and authority (corporate and other)
to own, lease, use and operate its properties and to carry on its
business as and where now owned, leased, used, operated and
conducted. Schedule 3(a), if attached hereto, sets forth a list of
all of the Subsidiaries of the Company and the jurisdiction in
which each is incorporated. The Company and each of its
Subsidiaries is duly qualified as a foreign corporation to do
business and is in good standing in every jurisdiction in which its
ownership or use of property or the nature of the business
conducted by it makes such qualification necessary except where the
failure to be so qualified or in good standing would not have a
Material Adverse Effect. “Material Adverse Effect”
means any material adverse effect on the business, operations,
assets, financial condition or prospects of the Company or its
Subsidiaries, if any, taken as a whole, or on the transactions
contemplated hereby or by the agreements or instruments to be
entered into in connection herewith. “Subsidiaries”
means any corporation or other organization, whether incorporated
or unincorporated, in which the Company owns, directly or
indirectly, any equity or other ownership interest.

 

 

4

 

 

b. Authorization; Enforcement. (i)
The Company has all requisite corporate power and authority to
enter into and perform this Agreement, the Note, and to consummate
the transactions contemplated hereby and thereby and to issue the
Securities, in accordance with the terms hereof and thereof, (ii)
the execution and delivery of this Agreement, the Note, and the
Conversion Shares by the Company and the consummation by it of the
transactions contemplated hereby and thereby (including without
limitation, the issuance of the Note, as well as the issuance and
reservation for issuance of the Conversion Shares issuable upon
conversion of the Note) have been duly authorized by the
Company’s Board of Directors and no further consent or
authorization of the Company, its Board of Directors, its
shareholders, or its debt holders is required, (iii) this Agreement
and the Note (together with any other instruments executed in
connection herewith or therewith) have been duly executed and
delivered by the Company by its authorized representative, and such
authorized representative is the true and official representative
with authority to sign this Agreement, the Note and the other
instruments documents executed in connection herewith or therewith
and bind the Company accordingly, and (iv) this Agreement
constitutes, and upon execution and delivery by the Company of the
Note, each of such instruments will constitute, a legal, valid and
binding obligation of the Company, enforceable against the Company
in accordance with their terms.

 

c. Capitalization; Governing
Documents. As of September 30, 2020, the authorized capital
stock of the Company consists of: 50,000,000 authorized shares of
Common Stock, of which 12,906,236 shares were issued and
outstanding. All of such outstanding shares of capital stock of the
Company and the Conversion Shares, are, or upon issuance will be,
duly authorized, validly issued, fully paid and non-assessable. No
shares of capital stock of the Company are subject to preemptive
rights or any other similar rights of the shareholders of the
Company or any liens or encumbrances imposed through the actions or
failure to act of the Company. As of the effective date of this
Agreement, other than as publicly announced prior to such date and
reflected in the SEC Documents (as defined in this Agreement) of
the Company (i) there are no outstanding options, warrants, scrip,
rights to subscribe for, puts, calls, rights of first refusal,
agreements, understandings, claims or other commitments or rights
of any character whatsoever relating to, or securities or rights
convertible into or exchangeable for any shares of capital stock of
the Company or any of its Subsidiaries, or arrangements by which
the Company or any of its Subsidiaries is or may become bound to
issue additional shares of capital stock of the Company or any of
its Subsidiaries, (ii) there are no agreements or arrangements
under which the Company or any of its Subsidiaries is obligated to
register the sale of any of its or their securities under the 1933
Act and (iii) there are no anti-dilution or price adjustment
provisions contained in any security issued by the Company (or in
any agreement providing rights to security holders) that will be
triggered by the issuance of any of the Securities. The Company has
furnished to the Buyer true and correct copies of the
Company’s Certificate of Incorporation as in effect on the
date hereof (“Certificate of Incorporation”), the
Company’s Bylaws, as in effect on the date hereof (the
“By-laws”), and the terms of all securities convertible
into or exercisable for Common Stock of the Company and the
material rights of the holders thereof in respect
thereto.

 

d. Issuance of Conversion Shares.
The Conversion Shares are duly authorized and reserved for issuance
and, upon conversion of the Note in accordance with its terms, will
be validly issued, fully paid and non- assessable, and free from
all taxes, liens, claims and encumbrances with respect to the issue
thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Company and will not impose
personal liability upon the holder thereof.

 

e. No Broker-Dealer
Acknowledgement. Absent a final adjudication from a court of
competent jurisdiction stating otherwise, so long as any amount on
this Note remains outstanding, the Company shall not to any person,
institution, governmental or other entity, state, claim, allege, or
in any way assert, that Holder is currently, or ever has been a
broker-dealer under the Securities Exchange Act of
1934.

 

f. Acknowledgment of Dilution. The
Company understands and acknowledges the potentially dilutive
effect of the Conversion Shares to the Common Stock upon the
conversion of the Note or exercise of the Warrant. The Company
further acknowledges that its obligation to issue, upon conversion
of the Note or exercise of the Warrant, the Conversion Shares, in
accordance with this Agreement, the Note, and the Warrant are
absolute and unconditional regardless of the dilutive effect that
such issuance may have on the ownership interests of other
shareholders of the Company.

 

 

5

 

 

g. Ranking; No Conflicts. The Note
shall be a subordinate debt obligation of the Company. The
execution, delivery and performance of this Agreement and the Note
by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby (including, without
limitation, the issuance and reservation for issuance of the
Conversion Shares) will not (i) conflict with or result in a
violation of any provision of the Certificate of Incorporation or
Bylaws, or (ii) violate or conflict with, or result in a breach of
any provision of, or constitute a default (or an event which with
notice or lapse of time or both could become a default) under, or
give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, note, evidence of indebtedness,
indenture, patent, patent license or instrument to which the
Company or any of its Subsidiaries is a party, or (iii) result in a
violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and
regulations of any self-regulatory organizations to which the
Company or its securities is subject) applicable to the Company or
any of its Subsidiaries or by which any property or asset of the
Company or any of its Subsidiaries is bound or affected (except for
such conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations as would not, individually or in the
aggregate, have a Material Adverse Effect), or (iv) trigger any
anti-dilution and/or ratchet provision contained in any other
contract in which the Company is a party thereto or any security
issued by the Company. Neither the Company nor any of its
Subsidiaries is in violation of its Certificate of Incorporation,
By-laws or other organizational documents and neither the Company
nor any of its Subsidiaries is in default (and no event has
occurred which with notice or lapse of time or both could put the
Company or any of its Subsidiaries in default) under, and neither
the Company nor any of its Subsidiaries has taken any action or
failed to take any action that would give to others any rights of
termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Company or any of
its Subsidiaries is a party or by which any property or assets of
the Company or any of its Subsidiaries is bound or affected, except
for possible defaults as would not, individually or in the
aggregate, have a Material Adverse Effect. The businesses of the
Company and its Subsidiaries, if any, are not being conducted, and
shall not be conducted so long as the Buyer owns any of the
Securities, in violation of any law, ordinance or regulation of any
governmental entity. Except as specifically contemplated by this
Agreement and as required under the 1933 Act and any applicable
state securities laws, the Company is not required to obtain any
consent, authorization or order of, or make any filing or
registration with, any court, governmental agency, regulatory
agency, self-regulatory organization or stock market or any third
party in order for it to execute, deliver or perform any of its
obligations under this Agreement and the Note in accordance with
the terms hereof or thereof or to issue and sell the Note in
accordance with the terms hereof and, upon conversion of the Note,
issue Conversion Shares. All consents, authorizations, orders,
filings and registrations which the Company is required to obtain
pursuant to the preceding sentence have been obtained or effected
on or prior to the date hereof. The Company and its Subsidiaries
are unaware of any facts or circumstances which might give rise to
any of the foregoing.

 

h. SEC Documents; Financial
Statements. The Company has timely filed all reports,
schedules, forms, statements and other documents required to be
filed by it with the SEC pursuant to the reporting requirements of
the Securities Exchange Act of 1934, as amended (the “1934
Act”) (all of the foregoing filed prior to the date hereof
and all exhibits included therein and financial statements and
schedules thereto and documents (other than exhibits to such
documents) incorporated by reference therein, being hereinafter
referred to herein as the “SEC Documents”). As of their
respective dates, the SEC Documents complied in all material
respects with the requirements of the 1934 Act and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC
Documents, and none of the SEC Documents, at the time they were
filed with the SEC, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not
misleading. None of the statements made in any such SEC Documents
is, or has been, required to be amended or updated under applicable
law (except for such statements as have been amended or updated in
subsequent filings prior the date hereof). As of their respective
dates, the financial statements of the Company included in the SEC
Documents complied as to form in all material respects with
applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto. Such financial
statements have been prepared in accordance with United States
generally accepted accounting principles, consistently applied,
during the periods involved and fairly present in all material
respects the consolidated financial position of the Company and its
consolidated Subsidiaries as of the dates thereof and the
consolidated results of their operations and cash flows for the
periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments). Except as set forth in the
financial statements of the Company included in the SEC Documents,
the Company has no liabilities, contingent or otherwise, other than
(i) liabilities incurred in the ordinary course of business
subsequent to September 30, 2020, and (ii) obligations under
contracts and commitments incurred in the ordinary course of
business and not required under generally accepted accounting
principles to be reflected in such financial statements, which,
individually or in the aggregate, are not material to the financial
condition or operating results of the Company. The Company is not
subject to the reporting requirements of the 1934 Act as of the
date of this Agreement. The Company has never been a “shell
company” as described in Rule 144(i)(1)(i).

 

 

6

 

 

i. Absence of Certain Changes.
Since September 30, 2020, there has been no material adverse change
and no material adverse development in the assets, liabilities,
business, properties, operations, financial condition, results of
operations, prospects or 1934 Act reporting status of the Company
or any of its Subsidiaries.

 

j. Absence of Litigation. There is
no action, suit, claim, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory
organization or body pending or, to the knowledge of the Company or
any of its Subsidiaries, threatened against or affecting the
Company or any of its Subsidiaries, or their officers or directors
in their capacity as such, that could have a Material Adverse
Effect. The SEC Documents contain a complete list and summary
description of any pending or, to the knowledge of the Company,
threatened proceeding against or affecting the Company or any of
its Subsidiaries, without regard to whether it would have a
Material Adverse Effect. The Company and its Subsidiaries are
unaware of any facts or circumstances which might give rise to any
of the foregoing. Notwithstanding the foregoing, the Buyer
acknowledges the existence of all litigations disclosed and
outstanding the SEC Documents.

 

k. Intellectual Property. The
Company and each of its Subsidiaries owns or possesses the
requisite licenses or rights to use all patents, patent
applications, patent rights, inventions, know-how, trade secrets,
trademarks, trademark applications, service marks, service names,
trade names and copyrights (“Intellectual Property”)
necessary to enable it to conduct its business as now operated
(and, as presently contemplated to be operated in the future);
there is no claim or action by any person pertaining to, or
proceeding pending, or to the Company’s knowledge threatened,
which challenges the right of the Company or of a Subsidiary with
respect to any Intellectual Property necessary to enable it to
conduct its business as now operated (and, as presently
contemplated to be operated in the future); to the best of the
Company’s knowledge, the Company’s or its
Subsidiaries’ current and intended products, services and
processes do not infringe on any Intellectual Property or other
rights held by any person; and the Company is unaware of any facts
or circumstances which might give rise to any of the foregoing. The
Company and each of its Subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of their
Intellectual Property.

 

l. No Materially Adverse Contracts,
Etc. Neither the Company nor any of its Subsidiaries is
subject to any charter, corporate or other legal restriction, or
any judgment, decree, order, rule or regulation which in the
judgment of the Company’s officers has or is expected in the
future to have a Material Adverse Effect. Neither the Company nor
any of its Subsidiaries is a party to any contract or agreement
which in the judgment of the Company’s officers has or is
expected to have a Material Adverse Effect.

 

m. Tax Status. The Company and
each of its Subsidiaries has made or filed all federal, state and
foreign income and all other tax returns, reports and declarations
required by any jurisdiction to which it is subject (unless and
only to the extent that the Company and each of its Subsidiaries
has set aside on its books provisions reasonably adequate for the
payment of all unpaid and unreported taxes) and has paid all taxes
and other governmental assessments and charges that are material in
amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and has
set aside on its books provisions reasonably adequate for the
payment of all taxes for periods subsequent to the periods to which
such returns, reports or declarations apply. There are no unpaid
taxes in any material amount claimed to be due by the taxing
authority of any jurisdiction, and the officers of the Company know
of no basis for any such claim. The Company has not executed a
waiver with respect to the statute of limitations relating to the
assessment or collection of any foreign, federal, state or local
tax. None of the Company’s tax returns is presently being
audited by any taxing authority.

 

 

7

 

 

n. Transactions with Affiliates.
Except for arm’s length transactions pursuant to which the
Company or any of its Subsidiaries makes payments in the ordinary
course of business upon terms no less favorable than the Company or
any of its Subsidiaries could obtain from third parties and other
than the grant of stock options described in the SEC Documents,
none of the officers, directors, or employees of the Company is
presently a party to any transaction with the Company or any of its
Subsidiaries (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for
rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such
employee or, to the knowledge of the Company, any corporation,
partnership, trust or other entity in which any officer, director,
or any such employee has a substantial interest or is an officer,
director, trustee or partner.

 

o. Disclosure. All information
relating to or concerning the Company or any of its Subsidiaries
set forth in this Agreement and provided to the Buyer pursuant to
Section 2(d) hereof and otherwise in connection with the
transactions contemplated hereby is true and correct in all
material respects and the Company has not omitted to state any
material fact necessary in order to make the statements made herein
or therein, in light of the circumstances under which they were
made, not misleading. No event or circumstance has occurred or
exists with respect to the Company or any of its Subsidiaries or
its or their business, properties, prospects, operations or
financial conditions, which, under applicable law, rule or
regulation, requires public disclosure or announcement by the
Company but which has not been so publicly announced or disclosed
(assuming for this purpose that the Company’s reports filed
under the 1934 Act are being incorporated into an effective
registration statement filed by the Company under the 1933
Act).

 

p. Acknowledgment Regarding Buyer’s
Purchase of Securities. The Company acknowledges and agrees
that the Buyer is acting solely in the capacity of arm’s
length purchaser with respect to this Agreement and the
transactions contemplated hereby. The Company further acknowledges
that the Buyer is not acting as a financial advisor or fiduciary of
the Company (or in any similar capacity) with respect to this
Agreement and the transactions contemplated hereby and any
statement made by the Buyer or any of its respective
representatives or agents in connection with this Agreement and the
transactions contemplated hereby is not advice or a recommendation
and is merely incidental to the Buyer’s purchase of the
Securities. The Company further represents to the Buyer that the
Company’s decision to enter into this Agreement has been
based solely on the independent evaluation of the Company and its
representatives.

 

q. No Integrated Offering. Neither
the Company, nor any of its affiliates, nor any person acting on
its or their behalf, has directly or indirectly made any offers or
sales in any security or solicited any offers to buy any security
under circumstances that would require registration under the 1933
Act of the issuance of the Securities to the Buyer. The issuance of
the Securities to the Buyer will not be integrated with any other
issuance of the Company’s securities (past, current or
future) for purposes of any shareholder approval provisions
applicable to the Company or its securities.

 

r. No Brokers. Other than the use
of Carter, Terry & Company, Inc., the Company has taken no
action which would give rise to any claim by any person for
brokerage commissions, transaction fees or similar payments
relating to this Agreement or the transactions contemplated
hereby.

 

s. Permits; Compliance. The
Company and each of its Subsidiaries is in possession of all
franchises, grants, authorizations, licenses, permits, easements,
variances, exemptions, consents, certificates, approvals and orders
necessary to own, lease and operate its properties and to carry on
its business as it is now being conducted (collectively, the
“Company Permits”), and there is no action pending or,
to the knowledge of the Company, threatened regarding suspension or
cancellation of any of the Company Permits. Neither the Company nor
any of its Subsidiaries is in conflict with, or in default or
violation of, any of the Company Permits, except for any such
conflicts, defaults or violations which, individually or in the
aggregate, would not reasonably be expected to have a Material
Adverse Effect. Since September 30, 2020, neither the Company nor
any of its Subsidiaries has received any notification with respect
to possible conflicts, defaults or violations of applicable laws,
except for notices relating to possible conflicts, defaults or
violations, which conflicts, defaults or violations would not have
a Material Adverse Effect.

 

 

8

 

 

t.

Environmental Matters.

 

(i) There are, to the
Company’s knowledge, with respect to the Company or any of
its Subsidiaries or any predecessor of the Company, no past or
present violations of Environmental Laws (as defined below),
releases of any material into the environment, actions, activities,
circumstances, conditions, events, incidents, or contractual
obligations which may give rise to any common law environmental
liability or any liability under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 or similar
federal, state, local or foreign laws and neither the Company nor
any of its Subsidiaries has received any notice with respect to any
of the foregoing, nor is any action pending or, to the
Company’s knowledge, threatened in connection with any of the
foregoing. The term ”Environmental Laws” means all
federal, state, local or foreign laws relating to pollution or
protection of human health or the environment (including, without
limitation, ambient air, surface water, groundwater, land surface
or subsurface strata), including, without limitation, laws relating
to emissions, discharges, releases or threatened releases of
chemicals, pollutants contaminants, or toxic or hazardous
substances or wastes (collectively, “Hazardous
Materials”) into the environment, or otherwise relating to
the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials, as well as
all authorizations, codes, decrees, demands or demand letters,
injunctions, judgments, licenses, notices or notice letters,
orders, permits, plans or regulations issued, entered, promulgated
or approved thereunder.

 

(ii) Other
than those that are or were stored, used or disposed of in
compliance with applicable law, no Hazardous Materials are
contained on or about any real property currently owned, leased or
used by the Company or any of its Subsidiaries, and no Hazardous
Materials were released on or about any real property previously
owned, leased or used by the Company or any of its Subsidiaries
during the period the property was owned, leased or used by the
Company or any of its Subsidiaries, except in the normal course of
the Company’s or any of its Subsidiaries’
business.

 

(iii) There
are no underground storage tanks on or under any real property
owned, leased or used by the Company or any of its Subsidiaries
that are not in compliance with applicable law.

 

u. Title to Property. The Company
and its Subsidiaries have good and marketable title in fee simple
to all real property and good and marketable title to all personal
property owned by them which is material to the business of the
Company and its Subsidiaries, in each case free and clear of all
liens, encumbrances and defects except such as are described in
Schedule 3(u), if attached hereto, or such as would not have a
Material Adverse Effect. Any real property and facilities held
under lease by the Company and its Subsidiaries are held by them
under valid, subsisting and enforceable leases with such exceptions
as would not have a Material Adverse Effect.

 

v. Insurance. The Company and each
of its Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as
management of the Company believes to be prudent and customary in
the businesses in which the Company and its Subsidiaries are
engaged. Neither the Company nor any such Subsidiary has any reason
to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its
business at a cost that would not have a Material Adverse Effect.
Upon written request the Company will provide to the Buyer true and
correct copies of all policies relating to directors’ and
officers’ liability coverage, errors and omissions coverage,
and commercial general liability coverage.

 

 

9

 

 

w. Internal Accounting Controls.
The Company and each of its Subsidiaries maintain a system of
internal accounting controls sufficient, in the judgment of the
Company’s board of directors, to provide reasonable assurance
that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with
management’s general or specific authorization and (iv) the
recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with
respect to any differences.

 

x. Foreign Corrupt Practices.
Neither the Company, nor any of its Subsidiaries, nor any director,
officer, agent, employee or other person acting on behalf of the
Company or any Subsidiary has, in the course of his actions for, or
on behalf of, the Company, used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful
expenses relating to political activity; made any direct or
indirect unlawful payment to any foreign or domestic government
official or employee from corporate funds; violated or is in
violation of any provision of the U.S. Foreign Corrupt Practices
Act of 1977, as amended, or made any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any
foreign or domestic government official or employee.

 

y. Solvency. The Company (after
giving effect to the transactions contemplated by this Agreement)
is solvent (i.e.,
its assets have a fair market value in excess of the amount
required to pay its probable liabilities on its existing debts as
they become absolute and matured) and currently the Company has no
information that would lead it to reasonably conclude that the
Company would not, after giving effect to the transaction
contemplated by this Agreement, have the ability to, nor does it
intend to take any action that would impair its ability to, pay its
debts from time to time incurred in connection therewith as such
debts mature. The Company’s financial statements for its most
recent fiscal year end and interim financial statements have been
prepared assuming the Company will continue as a going concern,
which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business.

 

z. No Investment Company. The
Company is not, and upon the issuance and sale of the Securities as
contemplated by this Agreement will not be an “investment
company” required to be registered under the Investment
Company Act of 1940 (an “Investment Company”). The
Company is not controlled by an Investment Company.

 

aa.                 No
Off-Balance Sheet Arrangements. There is no transaction,
arrangement, or other relationship between the Company or any of
its Subsidiaries and an unconsolidated or other off-balance sheet
entity that is required to be disclosed by the Company in its 1934
Act filings and is not so disclosed or that otherwise could be
reasonably likely to have a Material Adverse Effect.

 

bb.                  No
Disqualification Events. None of the Company, any of its
predecessors, any affiliated issuer, any director, executive
officer, other officer of the Company participating in the offering
hereunder, any beneficial owner of twenty percent (20%) or more of
the Company’s outstanding voting equity securities,
calculated on the basis of voting power, nor any promoter (as that
term is defined in Rule 405 under the 1933 Act) connected with the
Company in any capacity at the time of sale (each, an “Issuer
Covered Person”) is subject to any of the “Bad
Actor” disqualifications described in Rule 506(d)(1)(i) to
(viii) under the 1933 Act (a “Disqualification Event”),
except for a Disqualification Event covered by Rule 506(d)(2) or
(d)(3). The Company has exercised reasonable care to determine
whether any Issuer Covered Person is subject to a Disqualification
Event.

 

 

10

 

 

cc.                 Manipulation
of Price. The Company has not, and to its knowledge no one
acting on its behalf has: (i) taken, directly or indirectly, any
action designed to cause or to result, or that could reasonably be
expected to cause or result, in the stabilization or manipulation
of the price of any security of the Company to facilitate the sale
or resale of any of the Securities, (ii) sold, bid for, purchased,
or paid any compensation for soliciting purchases of, any of the
Securities, or (iii) paid or agreed to pay to any person any
compensation for soliciting another to purchase any other
securities of the Company.

 

dd.                  Bank
Holding Company Act. Neither the Company nor any of its
Subsidiaries is subject to the Bank Holding Company Act of 1956, as
amended (the “BHCA”) and to regulation by the Board of
Governors of the Federal Reserve System (the “Federal
Reserve”). Neither the Company nor any of its Subsidiaries or
affiliates owns or controls, directly or indirectly, five percent
(5%) or more of the outstanding shares of any class of voting
securities or twenty-five percent (25%) or more of the total equity
of a bank or any entity that is subject to the BHCA and to
regulation by the Federal Reserve. Neither the Company nor any of
its Subsidiaries or affiliates exercises a controlling influence
over the management or policies of a bank or any entity that is
subject to the BHCA and to regulation by the Federal
Reserve.

 

ee.                  Illegal
or Unauthorized Payments; Political Contributions. Neither
the Company nor any of its Subsidiaries nor, to the Company’s
knowledge, any of the officers, directors, employees, agents or
other representatives of the Company or any of its Subsidiaries or
any other business entity or enterprise with which the Company or
any Subsidiary is or has been affiliated or associated, has,
directly or indirectly, made or authorized any payment,
contribution or gift of money, property, or services, whether or
not in contravention of applicable law, (i) as a kickback or bribe
to any person or (ii) to any political organization, or the holder
of or any aspirant to any elective or appointive public office
except for personal political contributions not involving the
direct or indirect use of funds of the Company or any of its
Subsidiaries.

 

ff.       Breach
of Representations and Warranties by the Company. The
Company agrees that if the Company breaches any of the
representations or warranties set forth in this Section 3 and in
addition to any other remedies available to the Buyer pursuant to
this Agreement, it will be considered an Event of Default under
Section 3 of the Note.

4.

ADDITIONAL COVENANTS, AGREEMENTS AND
ACKNOWLEDGEMENTS.

 

a. Best Efforts. The parties shall
use their best efforts to satisfy timely each of the conditions
described in Section 6 and 7 of this Agreement.

 

b. Use of Proceeds. The Company
shall use the proceeds for business development and working
capital, and not for the repayment of any indebtedness owed to
officers, directors or employees of the Company or their affiliates
or in violation or contravention of any applicable law, rule or
regulation.

 

 

11

 

 

c. Usury. To the extent it may
lawfully do so, the Company hereby agrees not to insist upon or
plead or in any manner whatsoever claim, and will resist any and
all efforts to be compelled to take the benefit or advantage of,
usury laws wherever enacted, now or at any time hereafter in force,
in connection with any action or proceeding that may be brought by
the Buyer in order to enforce any right or remedy under this
Agreement, the Note and any document, agreement or instrument
contemplated thereby. Notwithstanding any provision to the contrary
contained in this Agreement, the Note and any document, agreement
or instrument contemplated thereby, it is expressly agreed and
provided that the total liability of the Company under this
Agreement, the Note or any document, agreement or instrument
contemplated thereby for payments which under applicable law are in
the nature of interest shall not exceed the maximum lawful rate
authorized under applicable law (the “Maximum Rate”),
and, without limiting the foregoing, in no event shall any rate of
interest or default interest, or both of them, when aggregated with
any other sums which under applicable law in the nature of interest
that the Company may be obligated to pay under this Agreement, the
Note and any document, agreement or instrument contemplated thereby
exceed such Maximum Rate. It is agreed that if the maximum contract
rate of interest allowed by law applicable to this Agreement, the
Note and any document, agreement or instrument contemplated thereby
is increased or decreased by statute or any official governmental
action subsequent to the date hereof, the new maximum contract rate
of interest allowed by law will be the Maximum Rate applicable to
this Agreement, the Note and any document, agreement or instrument
contemplated thereby from the effective date thereof forward,
unless such application is precluded by applicable law. If under
any circumstances whatsoever, interest in excess of the Maximum
Rate is paid by the Company to the Buyer with respect to
indebtedness evidenced by this Agreement, the Note and any
document, agreement or instrument contemplated thereby, such excess
shall be applied by the Buyer to the unpaid principal balance of
any such indebtedness or be refunded to the Company, the manner of
handling such excess to be at the Buyer’s
election.

 

d. Restriction on Activities.
Commencing as of the date first above written, and until the
earlier of payment of the Note in full or full conversion of the
Note, the Company shall not, directly or indirectly, without the
Buyer’s prior written consent, which consent shall not be
unreasonably withheld: (a) change the nature of its business in any
material respect; (b) sell, divest, acquire, change the structure
of any material assets other than in the ordinary course of
business.

 

e. Listing. The Company will
within one hundred and eighty (180) of the Effective Date hereof
and thereafter for so long as the Buyer owns any of the Securities,
maintain the listing and trading of its Common Stock on the
Principal Market or any equivalent replacement exchange or
electronic quotation system (including but not limited to the Pink
Sheets electronic quotation system) and will comply in all respects
with the Company’s reporting, filing and other obligations
under the bylaws or rules of the Financial Industry Regulatory
Authority (“FINRA”) and such exchanges, as applicable.
The Company shall promptly provide to the Buyer copies of any
notices it receives from the Principal Market and any other
exchanges or electronic quotation systems on which the Common Stock
is then traded regarding the continued eligibility of the Common
Stock for listing on such exchanges and quotation
systems.

 

f. Corporate Existence. The
Company will, so long as the Buyer beneficially owns any of the
Securities, maintain its corporate existence and shall not sell all
or substantially all of the Company’s assets, except in the
event of a merger or consolidation or sale of all or substantially
all of the Company’s assets, where the surviving or successor
entity in such transaction (i) assumes the Company’s
obligations hereunder and under the agreements and instruments
entered into in connection herewith and (ii) is a publicly traded
corporation whose Common Stock is listed for trading or quotation
on the Principal Market, any tier of the NASDAQ Stock Market, the
New York Stock Exchange or the NYSE MKT.

 

g. No Integration. The Company
shall not make any offers or sales of any security (other than the
Securities) under circumstances that would require registration of
the Securities being offered or sold hereunder under the 1933 Act
or cause the offering of the Securities to be integrated with any
other offering of securities by the Company for the purpose of any
stockholder approval provision applicable to the Company or its
securities.

 

 

12

 

 

h. Breach of Covenants. The
Company acknowledges and agrees that if the Company breaches any of
the covenants set forth in this Section 4, in addition to any other
remedies available to the Buyer pursuant to this Agreement, it will
be considered an Event of Default under Section 3.4 of the
Note.

 

i. Compliance with 1934 Act; Public
Information Failures. Company shall remain current its
quarterly, annual and current reports with the Securities and
Exchange Commission and shall become subject to the 1934 Act within
180 days. For so long as the Buyer beneficially owns the Note, or
any Conversion Shares, the Company shall comply with the reporting
requirements of the 1934 Act; and the Company shall continue to be
subject to the reporting requirements of the 1934 Act, once subject
thereto. During the period that the Buyer beneficially owns the
Note, if the Company shall (i) fail for any reason to satisfy the
requirements of Rule 144(c)(1), including, without limitation, the
failure to satisfy the current public information requirements
under Rule 144(c) or (ii) if the Company has ever been an issuer
described in Rule 144(i)(1)(i) or becomes such an issuer in the
future, and the Company shall fail to satisfy any condition set
forth in Rule 144(i)(2) (each, a “Public Information
Failure”) then, as partial relief for the damages to the
Buyer by reason of any such delay in or reduction of its ability to
sell the Securities (which remedy shall not be exclusive of any
other remedies available pursuant to this Agreement, the Note, or
at law or in equity), the Company shall pay to the Buyer an amount
in cash equal to three percent (3%) of the Purchase Price on each
of the day of a Public Information Failure and on every thirtieth
day (pro-rated for periods totaling less than thirty days)
thereafter until the date such Public Information Failure is cured.
The payments to which a holder shall be entitled pursuant to this
Section 4(k) are referred to herein as “Public Information
Failure Payments.” Public Information Failure Payments shall
be paid on the earlier of (i) the last day of the calendar month
during which such Public Information Failure Payments are incurred
and (iii) the third business day after the event or failure giving
rise to the Public Information Failure Payments is cured. In the
event the Company fails to make Public Information Failure Payments
in a timely manner, such Public Information Failure Payments shall
bear interest at the rate of 2% per month (prorated for partial
months) until paid in full. As used in this Agreement, the term
“business day” shall mean any day other than a
Saturday, Sunday or a day on which commercial banks in the city of
New York, New York are authorized or required by law or executive
order to remain closed.

 

j. Disclosure of Transactions and Other
Material Information. By 9:00 a.m., New York time, four (4)
Business Days following the date this Agreement has been fully
executed and funded, the Company shall file a Current Report on
Form 8-K describing the terms of the transactions contemplated by
this Agreement in the form required by the 1934 Act and attaching
this Agreement, the form of Note (the “8-K Filing”).
From and after the filing of the 8-K Filing with the SEC, the Buyer
shall not be in possession of any material, nonpublic information
received from the Company, any of its Subsidiaries or any of their
respective officers, directors, employees or agents that is not
disclosed in the 8-K Filing. In addition, effective upon the filing
of the 8-K Filing, the Company acknowledges and agrees that any and
all confidentiality or similar obligations under any agreement,
whether written or oral, between the Company, any of its
Subsidiaries or any of their respective officers, directors,
affiliates, employees or agents, on the one hand, and the Buyer or
any of its affiliates, on the other hand, shall
terminate.

 

k. Legal Counsel Opinions. Upon
the request of the Buyer from to time to time, the Company shall be
responsible, at its cost, for promptly supplying to the
Company’s transfer agent and the Buyer a customary legal
opinion letter of its counsel (the “Legal Counsel
Opinion”) to the effect that the resale of the Conversion
Shares by the Buyer or its affiliates, successors and assigns is
exempt from the registration requirements of the 1933 Act pursuant
to Rule 144, provided the requirements of Rule 144 are satisfied
and provided the Conversion Shares are not then registered under
the 1933 Act for resale pursuant to an effective registration
statement, or other applicable exemption, provided the requirements
of such other applicable exemption are satisfied. Buyer will take
no action or inaction that would invalidate the proposed opinion.
Buyer will provide the customary representations to counsel in
order to provide such an opinion. Should the Company’s legal
counsel fail for any reason other than that the requirements of
said exemption are unavailable in the reasonable opinion of counsel
to issue the Legal Counsel Opinion, the Buyer may, at the
Company’s cost, secure another legal counsel to issue the
Legal Counsel Opinion, and the Company will instruct its transfer
agent to accept such opinion. The Company hereby agrees that it may
never take the position that it is a “shell company” in
connection with its obligations under this Agreement or
otherwise.

 

 

13

 

 

l. Most-Favored Nation. While the
Note or any principal amount, interest or fees or expenses due
thereunder remain outstanding and unpaid, the Company shall not
enter into any subsequent public or private offering of its
securities (including securities convertible into shares of Common
Stock) with any individual or entity (an “Other
Investor”) that has the effect of establishing rights or
otherwise benefiting such Other Investor in a manner more favorable
in any material respect to such Other Investor than the rights and
benefits established in favor of the Buyer by this Agreement. In
the event the Company enters into such an agreement with said more
favorable terms, this Agreement shall automatically, without
further action of the parties, be amended to include those more
favorable terms into this Agreement.

 

m. Non-Public Information. The
Company covenants and agrees that neither it, nor any other person
acting on its behalf will provide the Buyer or its agents or
counsel with any information that constitutes, or the Company
reasonably believes constitutes, material non-public information,
unless prior thereto the Buyer shall have consented to the receipt
of such information and agreed with the Company to keep such
information confidential. The Company understands and confirms that
the Buyer shall be relying on the foregoing covenant in effecting
transactions in securities of the Company. To the extent that the
Company delivers any material, non-public information to the Buyer
without such Buyer’s consent, the Company hereby covenants
and agrees that such Buyer shall not have any duty of
confidentiality to the Company, any of its Subsidiaries, or any of
their respective officers, directors, agents, employees or
affiliates, not to trade on the basis of, such material, non-public
information, provided that the Buyer shall remain subject to
applicable law. To the extent that any notice provided, information
provided, or any other communications made by the Company, to the
Buyer, constitutes or contains material non-public information
regarding the Company or any Subsidiaries, the Company shall
simultaneously file such notice or other material information with
the SEC pursuant to a Current Report on Form 8-K. In addition to
any other remedies provided by this Agreement or the related
transaction documents, if the Company provides any material
non-public information to the Buyer without their prior written
consent, and it fails to immediately (no later than that business
day) file a Form 8-K disclosing this material non-public
information, it shall pay the Buyer as partial liquidated damages
and not as a penalty a sum equal to $1,000 per day beginning with
the day the information is disclosed to the Buyer and ending and
including the day the Form 8-K disclosing this information is
filed.

 

 

14

 

 

5. Transfer Agent Instructions.
The Company shall issue irrevocable instructions to the
Company’s transfer agent to issue certificates, registered in
the name of the Buyer or its nominee, upon conversion of the Note,
the Conversion Shares, in such amounts as specified from time to
time by the Buyer to the Company in accordance with the terms
thereof (the “Irrevocable Transfer Agent
Instructions”). In the event that the Company proposes to
replace its transfer agent, the Company shall provide, prior to the
effective date of such replacement, a fully executed Irrevocable
Transfer Agent Instructions in a form as initially delivered
pursuant to this Agreement (including but not limited to the
provision to irrevocably reserved shares of Common Stock in the
Reserved Amount (as defined in the Note)) signed by the successor
transfer agent to the Company and the Company. Prior to
registration of the Conversion Shares under the 1933 Act or the
date on which the Conversion Shares may be sold pursuant to Rule
144, Rule 144A, Regulation S, or other applicable exemption without
any restriction as to the number of Securities as of a particular
date that can then be immediately sold, all such certificates shall
bear the restrictive legend specified in Section 2(g) of this
Agreement. The Company warrants that: (i) no instruction other than
the Irrevocable Transfer Agent Instructions referred to in this
Section 5 will be given by the Company to its transfer agent and
that the Securities shall otherwise be freely transferable on the
books and records of the Company as and to the extent provided in
this Agreement and the Note; (ii) it will not direct its transfer
agent not to transfer or delay, impair, and/or hinder its transfer
agent in transferring (or issuing)(electronically or in
certificated form) any certificate for Securities to be issued to
the Buyer upon conversion of or otherwise pursuant to the Note as
and when required by the Note and this Agreement; (iii) it will not
fail to remove (or directs its transfer agent not to remove or
impairs, delays, and/or hinders its transfer agent from removing)
any restrictive legend (or to withdraw any stop transfer
instructions in respect thereof) on any certificate for any
Securities issued to the Buyer upon conversion of or otherwise
pursuant to the Note as and when required by the Note and this
Agreement and (iv) it will provide any required corporate
resolutions and issuance approvals to its transfer agent within 6
hours of each conversion of the Note. Nothing in this Section shall
affect in any way the Buyer’s obligations and agreement set
forth in Section 2(g) hereof to comply with all applicable
prospectus delivery requirements, if any, upon re-sale of the
Securities. If the Buyer provides the Company, at the cost of the
Company, with (i) an opinion of counsel in form, substance and
scope customary for opinions in comparable transactions, to the
effect that a public sale or transfer of such Securities may be
made without registration under the 1933 Act and such sale or
transfer is effected or (ii) the Buyer provides reasonable
assurances that the Securities can be sold pursuant to Rule 144,
Rule 144A, Regulation S, or other applicable exemption, the Company
shall permit the transfer, and, in the case of the Securities,
promptly instruct its transfer agent to issue one or more
certificates, free from restrictive legend, in such name and in
such denominations as specified by the Buyer. The Company
acknowledges that a breach by it of its obligations hereunder will
cause irreparable harm to the Buyer, by vitiating the intent and
purpose of the transactions contemplated hereby. Accordingly, the
Company acknowledges that the remedy at law for a breach of its
obligations under this Section 5 may be inadequate and agrees, in
the event of a breach or threatened breach by the Company of the
provisions of this Section, that the Buyer shall be entitled, in
addition to all other available remedies, to an injunction
restraining any breach and requiring immediate transfer, without
the necessity of showing economic loss and without any bond or
other security being required.

 

6. Conditions to the Company’s
Obligation to Sell. The obligation of the Company hereunder
to issue and sell the Note to the Buyer at the Closing is subject
to the satisfaction, at or before the Closing Date, of each of the
following conditions thereto, provided that these conditions are
for the Company’s sole benefit and may be waived by the
Company at any time in its sole discretion:

 

a. The Buyer shall
have executed this Agreement and delivered the same to the
Company.

 

b. The Buyer shall
have delivered the Purchase Price in accordance with Section 1(b)
above.

 

 

15

 

 

c. The representations
and warranties of the Buyer shall be true and correct in all
material respects as of the date when made and as of the Closing
Date, as though made at that time (except for representations and
warranties that speak as of a specific date), and the Buyer shall
have performed, satisfied and complied in all material respects
with the covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by the Buyer
at or prior to the Closing Date.

 

d. No litigation,
statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or
endorsed by or in any court or governmental authority of competent
jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the
consummation of any of the transactions contemplated by this
Agreement.

 

7. Conditions to The Buyer’s
Obligation to Purchase. The obligation of the Buyer
hereunder to purchase the Note, on the Closing Date, is subject to
the satisfaction, at or before the Closing Date, of each of the
following conditions, provided that these conditions are for the
Buyer’s sole benefit and may be waived by the Buyer at any
time in its sole discretion:

 

a. The Company shall
have executed this Agreement and delivered the same to the
Buyer.

 

b. The Company shall
have delivered to the Buyer the duly executed Note in such
denominations as the Buyer shall request and in accordance with
Section 1(b) above.

 

c. The Irrevocable
Transfer Agent Instructions, in form and substance satisfactory to
the Buyer, shall have been delivered to and acknowledged in writing
by the Company’s Transfer Agent.

 

d. The representations
and warranties of the Company shall be true and correct in all
material respects as of the date when made and as of Closing Date,
as though made at such time (except for representations and
warranties that speak as of a specific date) and the Company shall
have performed, satisfied and complied in all material respects
with the covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by the
Company at or prior to the Closing Date.

 

e. No litigation,
statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or
endorsed by or in any court or governmental authority of competent
jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the
consummation of any of the transactions contemplated by this
Agreement.

 

f. No event shall have
occurred which could reasonably be expected to have a Material
Adverse Effect on the Company including but not limited to a change
in the 1934 Act reporting status of the Company or the failure of
the Company to be timely in its 1934 Act reporting
obligations.

 

g. The Company shall
have delivered to the Buyer (i) a certificate evidencing the
formation and good standing of the Company and each of its
Subsidiaries in such entity’s jurisdiction of formation
issued by the Secretary of State (or comparable office) of such
jurisdiction, as of a date within ten (10) days of the Closing Date
and (ii) resolutions adopted by the Company’s Board of
Directors at a duly called meeting or by unanimous written consent
authorizing this Agreement and all other documents, instruments and
transactions contemplated hereby.

 

 

16

 

 

8.

Governing Law; Miscellaneous.

 

a. Governing Law; Venue. This
Agreement shall be governed by and construed in accordance with the
laws of the State of New York without regard to principles of
conflicts of laws. Any action brought by either party against the
other concerning the transactions contemplated by this Agreement,
the Note, or any other agreement, certificate, instrument or
document contemplated hereby shall be brought only in the state
courts of New York or in the federal courts located in the state of
New York. The parties to this Agreement hereby irrevocably waive
any objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of
jurisdiction or venue or based upon forum non conveniens. The prevailing party shall be entitled
to recover from the other party its reasonable attorney’s
fees and costs. Each party hereby irrevocably waives personal
service of process and consents to process being served in any
suit, action or proceeding in connection with this Agreement, the
Note, or any other agreement, certificate, instrument or document
contemplated hereby or thereby by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to
it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by
law.

 

b. Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be
deemed an original but all of which shall constitute one and the
same agreement and shall become effective when counterparts have
been signed by each party and delivered to the other party. A
facsimile or .pdf signature shall be considered due execution and
shall be binding upon the signatory thereto with the same force and
effect as if the signature were an original, not a facsimile or
..pdf signature. Delivery of a counterpart signature hereto by
facsimile or email/.pdf transmission shall be deemed validly
delivery thereof.

 

c. Construction; Headings. This
Agreement shall be deemed to be jointly drafted by the Company and
the Buyer and shall not be construed against any person as the
drafter hereof. The headings of this Agreement are for convenience
of reference only and shall not form part of, or affect the
interpretation of, this Agreement.

 

d. Severability. In the event that
any provision of this Agreement, the Note, or any other agreement
or instrument delivered in connection herewith is invalid or
unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it
may conflict therewith and shall be deemed modified to conform with
such statute or rule of law. Any such provision which may prove
invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision of this
Agreement, the Note, or any other agreement, certificate,
instrument or document contemplated hereby or thereby.

 

e. Entire Agreement; Amendments.
This Agreement, the Note, and the instruments referenced herein
contain the entire understanding of the parties with respect to the
matters covered herein and therein and, except as specifically set
forth herein or therein, neither the Company nor the Buyer makes
any representation, warranty, covenant or undertaking with respect
to such matters. No provision of this Agreement or any agreement or
instrument contemplated hereby may be waived or amended other than
by an instrument in writing signed by the Buyer.

 

f. Notices. All notices, demands,
requests, consents, approvals, and other communications required or
permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in
the mail, registered or certified, return receipt requested,
postage prepaid, (iii) delivered by reputable air courier service
with charges prepaid, or (iv) transmitted by hand delivery,
telegram, e-mail or facsimile, addressed as set forth below or to
such other address as such party shall have specified most recently
by written notice. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon
hand delivery or delivery by e-mail or facsimile, with accurate
confirmation generated by the transmitting facsimile machine, at
the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be
received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours
where such notice is to be received) or (b) on the second business
day following the date of mailing by express courier service, fully
prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur. The addresses for such
communications shall be:

 

 

17

 

 

If to
the Company, to:

 

TEGO
CYBER INC.

8565
South Eastern Avenue, Suite 150

Las
Vegas, Nevada 89123

Attention: Shannon
Wilkinson

e-mail:
shannon.wilkinson@tegocyber.com

 

With a
copy by e-mail only to (which copy shall not constitute
notice):

 

HORWITZ
+ ARMSTRONG, A PROF. LAW CORP.

14
Orchard Suite 200

Lake
Forest, CA 92630

Attn:
Jessica M. Lockett

jlockett@horwitzarmstrong.com

 

If to
the Buyer:

 

FIRSTFIRE GLOBAL
OPPORTUNITIES FUND LLC

1040
First Avenue, Suite 190 New York, NY 10022 Attention: Eli
Fireman

e-mail:
eli@firstfirecapital.com

 

With a
copy by e-mail only to (which copy shall not constitute
notice):

 

FABIAN
VANCOTT

215
South State Street, Suite 1200

Salt
Lake City, Utah 84111

Attn:
Anthony Michael Panek

e-mail:
apanek@fabianvancott.com

 

g. Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the
parties and their successors and assigns. Neither the Company nor
the Buyer shall assign this Agreement or any rights or obligations
hereunder without the prior written consent of the other.
Notwithstanding the foregoing, subject to Section 2(f), the Buyer
may assign its rights hereunder to any person that purchases
Securities in a private transaction from the Buyer or to any of its
“affiliates,” as that term is defined under the 1934
Act, without the consent of the Company.

 

h. Third Party Beneficiaries. This
Agreement is intended for the benefit of the parties hereto and
their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any
other person.

 

i. Survival. The representations
and warranties of the Company and the agreements and covenants set
forth in this Agreement shall survive the closing hereunder
notwithstanding any due diligence investigation conducted by or on
behalf of the Buyer. The Company agrees to indemnify and hold
harmless the Buyer and all their officers, directors, employees and
agents for loss or damage arising as a result of or related to any
breach or alleged breach by the Company of any of its
representations, warranties and covenants set forth in this
Agreement or any of its covenants and obligations under this
Agreement, including advancement of expenses as they are
incurred.

 

 

18

 

 

j. Publicity. The Company, and the
Buyer shall have the right to review a reasonable period of time
before issuance of any press releases, SEC, Principal Market or
FINRA filings, or any other public statements with respect to the
transactions contemplated hereby; provided, however, that the Company shall
be entitled, without the prior approval of the Buyer, to make any
press release or SEC, Principal Market (or other applicable trading
market) or FINRA filings with respect to such transactions as is
required by applicable law and regulations (although the Buyer
shall be consulted by the Company in connection with any such press
release prior to its release and shall be provided with a copy
thereof and be given an opportunity to comment
thereon).

 

k. Expense Reimbursement; Further
Assurances. At the Closing to occur as of the Closing Date,
the Company shall pay on behalf of the Buyer or reimburse the Buyer
for its legal fees and expenses incurred in connection with this
Agreement, pursuant to the disbursement authorization signed by the
Company of even date. Each party shall do and perform, or cause to
be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates,
instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

l. No Strict Construction. The
language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rules
of strict construction will be applied against any
party.

 

m. Indemnification. In
consideration of the Buyer’s execution and delivery of this
Agreement and acquiring the Securities hereunder, and in addition
to all of the Company’s other obligations under this
Agreement or the Note, the Company shall defend, protect, indemnify
and hold harmless the Buyer and its stockholders, partners,
members, officers, directors, employees and direct or indirect
investors and any of the foregoing persons’ agents or other
representatives (including, without limitation, those retained in
connection with the transactions contemplated by this Agreement)
(collectively, the “Indemnitees”) from and against any
and all third party actions, causes of action, suits, claims,
losses, costs, penalties, fees, liabilities and damages, and
expenses in connection therewith (irrespective of whether any such
Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys’
fees and disbursements (the “Indemnified Liabilities”),
incurred by any Indemnitee as a result of, or arising out of, or
relating to (a) any misrepresentation or breach of any
representation or warranty made by the Company in this Agreement,
the Note or any other agreement, certificate, instrument or
document contemplated hereby or thereby, (b) any breach of any
covenant, agreement or obligation of the Company contained in this
Agreement, the Note or any other agreement, certificate, instrument
or document contemplated hereby or thereby or (c) any cause of
action, suit or claim brought or made against such Indemnitee by a
third party (including for these purposes a derivative action
brought on behalf of the Company) and arising out of or resulting
from (i) the execution, delivery, performance or enforcement of
this Agreement, the Note or any other agreement, certificate,
instrument or document contemplated hereby or thereby, (ii) any
transaction financed or to be financed in whole or in part,
directly or indirectly, with the proceeds of the issuance of the
Securities, or (iii) the status of the Buyer or holder of the
Securities as an investor in the Company pursuant to the
transactions contemplated by this Agreement. To the extent that the
foregoing undertaking by the Company may be unenforceable for any
reason, the Company shall make the maximum contribution to the
payment and satisfaction of each of the Indemnified Liabilities
that is permissible under applicable law.

 

n. Remedies. The Company
acknowledges that a breach by it of its obligations hereunder will
cause irreparable harm to the Buyer by vitiating the intent and
purpose of the transaction contemplated hereby. Accordingly, the
Company acknowledges that the remedy at law for a breach of its
obligations under this Agreement or the Note will be inadequate and
agrees, in the event of a breach or threatened breach by the
Company of the provisions of this Agreement or the Note, that the
Buyer shall be entitled, in addition to all other available
remedies at law or in equity, and in addition to the penalties
assessable herein, to an injunction or injunctions restraining,
preventing or curing any breach of this Agreement or the Note and
to enforce specifically the terms and provisions hereof, without
the necessity of showing economic loss and without any bond or
other security being required.

 

 

19

 

 

o. Payment Set Aside. To the
extent that the Company makes a payment or payments to the Buyer
hereunder or pursuant to the Note, or the Buyer enforces or
exercises its rights hereunder or thereunder, and such payment or
payments or the proceeds of such enforcement or exercise or any
part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside, recovered from, disgorged by
or are required to be refunded, repaid or otherwise restored to the
Company, a trustee, receiver or any other person or entity under
any law (including, without limitation, any bankruptcy law,
foreign, state or federal law, common law or equitable cause of
action), then to the extent of any such restoration the obligation
or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment
had not been made or such enforcement or setoff had not
occurred.

 

p. Failure or Indulgence Not
Waiver. No failure or delay on the part of the Buyer in the
exercise of any power, right or privilege hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privileges. All
rights and remedies of the Buyer existing hereunder are cumulative
to, and not exclusive of, any rights or remedies otherwise
available.

 

 

 

[SIGNATURE PAGE
FOLLOWS]

 

 

 

 

20

 

 

IN
WITNESS WHEREOF, the undersigned Buyer and the Company have caused
this Agreement to be duly executed as of the date first above
written.

 

TEGO
CYBER INC.

 

	

By:
/s/ Shannon
Wilkinson                                                                                  

	

Name:
SHANNON WILKINSON

	

Title:
CHIEF EXECUTIVE OFFICER

 

 

 

FIRSTFIRE
GLOBAL OPPORTUNITIES FUND, LLC

 

	

By:
/s/ Eli
Fireman                                                         

	

Name:
ELI FIREMAN

Title:
MANAGER

 

 

SUBSCRIPTION
AMOUNT:

 

 

	

Principal
Amount of Note: $120,000.00

	

Actual
Amount of Purchase Price of Note: $110,000.00*

 

 

 

 

 

 

*The
purchase price of $110,000.00 shall be paid promptly after the full
execution of the Note and related transaction
documents.

 

 

21

 

 

EXHIBIT
A

 

FORM
OF NOTE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22

 

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY
NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN
OPINION OF COUNSEL (WHICH MAY BE THE LEGAL COUNSEL OPINION (AS
DEFINED IN THE PURCHASE AGREEMENT)), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II)
UNLESS SOLD PURSUANT TO RULE 144, RULE 144A, REGULATION S, OR OTHER
APPLICABLE EXEMPTION UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.

 

	

Principal
Amount: $120,000.00

	

Issue
Date: December 28, 2020

	

Actual
Amount of Purchase Price: $110,000.00

	
 

 

CONVERTIBLE
PROMISSORY NOTE

 

FOR VALUE RECEIVED, TEGO CYBER INC., a Nevada corporation
(hereinafter called the “Borrower” or the
“Company”), hereby promises to pay to the order of
FIRSTFIRE GLOBAL OPPORTUNITIES FUND
LLC, a Delaware limited liability company, or registered
assigns (the “Holder”), in the form of lawful money of
the United States of America, the principal sum of up to
$120,000.00 (the “Principal Amount”) (subject to
adjustment herein), with a purchase price of $110,000.00 (the
“Consideration”) plus an original issue discount in the
amount of up to $10,000.00 (the “OID”), and to pay
interest on the Principal Amount under this Note at the rate of
eight percent (8%) (the “Interest Rate”) per annum
guaranteed from the date that the amount of Consideration is fully
funded in accordance with the terms of this Note until the same
becomes due and payable, whether at maturity or upon acceleration
or by prepayment or otherwise, as further provided herein. The
Holder shall pay $110,000.00 of the Consideration on the day of the
full execution of the Note and all related transactional documents
related to this Note, and the outstanding principal amount under
this Note shall be $120,000.00 (which includes the OID). The
maturity date for this Note shall be nine (9) months from the
effective date of the Holder’s payment of the Consideration
(“Maturity Date”), and is the date upon which the
principal sum as well as any accrued and unpaid interest and other
fees shall be due and payable. Notwithstanding any other provision
of this Note or any related transaction documents, Borrower may
prepay this Note only pursuant to Section 1.9 hereof.

 

It is
further acknowledged and agreed that the Principal Amount owed by
Borrower under this Note shall be increased by the amount of all
expenses up to a maximum of $500 incurred by the Holder relating to
the conversion of this Note into shares of Common Stock. All such
expenses shall be deemed added to the Principal Amount hereunder to
the extent such expenses are paid by the Holder.

 

Interest shall
commence accruing on the date that the Note is fully funded and
shall be computed on the basis of a 365-day year and the actual
number of days elapsed. Any Principal Amount or interest on this
Note which is not paid when due shall bear interest at the rate the
lesser of (a) fifteen percent (15%) per annum from the due date
thereof until the same is paid (“Default Interest”);
(b) or the maximum rate allowed by law.

 

All
payments due hereunder (to the extent not converted into shares of
common stock, $0.001 par value per share, of the Borrower (the
“Common Stock”) in accordance with the terms hereof)
shall be made in lawful money of the United States of America. All
payments shall be made at such address as the Holder shall
hereafter give to the Borrower by written notice made in accordance
with the provisions of this Note. Whenever any amount expressed to
be due by the terms of this Note is due on any day which is not a
business day, the same shall instead be due on the next succeeding
day which is a business day and, in the case of any interest
payment date which is not the date on which this Note is paid in
full, the extension of the due date thereof shall not be taken into
account for purposes of determining the amount of interest due on
such date.

 

 

23

 

 

Each
capitalized term used herein, and not otherwise defined, shall have
the meaning ascribed thereto in that certain Securities Purchase
Agreement, dated as of the Issue Date, pursuant to which this Note
was originally issued (the “Purchase Agreement”). As
used in this Note, the term “business day” shall mean
any day other than a Saturday, Sunday or a day on which commercial
banks in the city of New York, New York are authorized or required
by law or executive order to remain closed. As used herein, the
term “Trading Day” means any day that shares of Common
Stock are listed for trading or quotation on the Principal Market
(as defined in the Purchase Agreement), any tier of the NASDAQ
Stock Market, the New York Stock Exchange or the NYSE
American.

 

This
Note is free from all taxes, liens, claims and encumbrances with
respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Borrower and
will not impose personal liability upon the holder
thereof.

 

The
following terms shall apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1 Conversion Right. The Holder
shall have the right, at any time while there are amounts
outstanding under the Note, to convert all or any portion of the
then outstanding and unpaid Principal Amount and interest
(including any Default Interest) into fully paid and non-assessable
shares of Common Stock, as such Common Stock exists on the Issue
Date, or any shares of capital stock or other securities of the
Borrower into which such Common Stock shall hereafter be changed or
reclassified, at the Conversion Price (as defined below) determined
as provided herein (a “Conversion”); provided, however, that in no event
shall the Holder be entitled to convert any portion of this Note in
excess of that portion of this Note upon conversion of which the
sum of (1) the number of shares of Common Stock beneficially owned
by the Holder and its affiliates (other than shares of Common Stock
which may be deemed beneficially owned through the ownership of the
unconverted portion of this Note or the unexercised or unconverted
portion of any other security of the Borrower subject to a
limitation on conversion or exercise analogous to the limitations
contained herein) and (2) the number of Conversion Shares issuable
upon the conversion of the portion of this Note with respect to
which the determination of this proviso is being made, would result
in beneficial ownership by the Holder and its affiliates of more
than 4.99% of the then outstanding shares of Common Stock. For
purposes of the proviso set forth in the immediately preceding
sentence, beneficial ownership shall be determined in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as
amended (the “1934 Act”), and Regulations 13D-G
thereunder, except as otherwise provided in clause (1) of such
proviso, provided, however,
that the limitations on conversion may be waived (up to 9.99%) by
the Holder upon, at the election of the Holder, not less than 61
days’ prior notice to the Borrower, and the provisions of the
conversion limitation shall continue to apply until such 61st day
(or such later date, as determined by the Holder, as may be
specified in such notice of waiver). The number of Conversion
Shares to be issued upon each conversion of this Note shall be
determined by dividing the Conversion Amount (as defined below) by
the applicable Conversion Price then in effect on the date
specified in the notice of conversion, in the form attached hereto
as Exhibit A (the
“Notice of Conversion”), delivered to the Borrower or
Borrower’s transfer agent by the Holder in accordance with
Section 1.4 below; provided that the Notice of Conversion is
submitted by facsimile or e-mail (or by other means resulting in,
or reasonably expected to result in, notice) to the Borrower or
Borrower’s transfer agent before 11:59 p.m., New York, New
York time on such conversion date (the “Conversion
Date”). The term “Conversion Amount” means, with
respect to any conversion of this Note, the sum of (1) the
Principal Amount of this Note to be converted in such conversion
plus (2) at the
Holder’s option, accrued and unpaid interest, if any, on such
Principal Amount at the Interest Rate to the Conversion Date,
plus (3) at the
Holder’s option, Default Interest, if any, on the amounts
referred to in the immediately preceding clauses (1) and/or
(2).

 

 

24

 

 

1.2

Conversion Price.

 

(a) Calculation of Conversion
Price. The per share conversion price into which Principal
Amount and interest (including any Default Interest) under this
Note shall be convertible into shares of Common Stock hereunder
(the “Conversion Price”) shall be equal to $0.10 (the
“Fixed Conversion Price”), provided, further, that upon any event
of default (as defined herein) after the Issue Date which remains
uncured for a period of five (5) calendar days, the Conversion
Price shall equal the lower of (i) the Fixed Conversion Price; (ii)
discount to market based upon subsequent financings with other
investors; or (iii) seventy five percent (75%) multiplied by the
lowest closing price of the Common Stock during the twenty (20)
consecutive Trading Day period immediately preceding the date of
the respective conversion (the “Alternate Conversion
Price”); To the extent the Conversion Price is below the par
value per share, the Borrower will take all steps necessary to
solicit the consent of the stockholders to reduce the par value to
the lowest value possible under law, provided however that the
Borrower agrees to honor all conversions submitted pending this
increase. If at any time the Conversion Price as determined
hereunder for any conversion would be less than the par value of
the Common Stock, then at the sole discretion of the Holder, the
Conversion Price hereunder may equal such par value for such
conversion and the Conversion Amount for such conversion may be
increased to include Additional Principal, where “Additional
Principal” means such additional amount to be added to the
Conversion Amount to the extent necessary to cause the number of
conversion shares issuable upon such conversion to equal the same
number of conversion shares as would have been issued had the
Conversion Price not been adjusted by the Holder to the par value
price.

 

(b) Conversion Price During Major
Announcements. Notwithstanding anything contained in Section
1.2(a) to the contrary, in the event the Borrower (i) makes a
public announcement that it intends to be acquired by, consolidate
or merge with any other corporation or entity (other than a merger
in which the Borrower is the surviving or continuing corporation
and its capital stock is unchanged) or sell or transfer all or
substantially all of the assets of the Borrower or (ii) any person,
group or entity (including the Borrower) publicly announces a
tender offer to purchase fifty percent (50%) or more of the Common
Stock (or any other takeover scheme) (any such transaction referred
to in clause (i) or (ii) being referred to herein as a
“Change in Control” and the date of the announcement
referred to in clause (i) or (ii) is being referred to herein as
the “Announcement Date”), then the Conversion Price
shall, effective upon the Announcement Date and continuing through
the Adjusted Conversion Price Termination Date (as defined below),
be equal to the lower of (x) the Conversion Price and (y) a fifteen
percent (15%) discount to the Acquisition Price (as defined below).
From and after the Adjusted Conversion Price Termination Date, the
Conversion Price shall be determined as set forth in Section
1.2(a). For purposes hereof, “Adjusted Conversion Price
Termination Date” shall mean, with respect to any proposed
Change in Control for which a public announcement as contemplated
by this Section 1.2(b) has been made, the date upon which the
Borrower (in the case of clause (i) above) or the person, group or
entity (in the case of clause (ii) above) consummates or publicly
announces the termination or abandonment of the proposed Change in
Control which caused this Section 1.2(b) to become operative. For
purposes hereof, “Acquisition Price” shall mean a price
per share of Common Stock derived by dividing (x) the total
consideration (in cash, equity, earn- out or similar payments or
otherwise) paid or to be paid to the Borrower or its shareholders
in the Change in Control transaction by (y) the number of
authorized shares of Common Stock outstanding as of the business
day prior to the Announcement Date.

 

 

25

 

 

1.3 Authorized and Reserved Shares.
The Borrower covenants that at all times until the Note is
satisfied in full, the Borrower will reserve from its authorized
and unissued Common Stock a sufficient number of shares, free from
preemptive rights, to provide for the issuance of a number of
Conversion Shares equal to the greater of: (a) 2,500,000 shares of
Common Stock or (b) the sum of (i) the number of Conversion Shares
issuable upon the full conversion of this Note (assuming no payment
of Principal Amount or interest) as of any issue date (taking into
consideration any adjustments to the Conversion Price pursuant to
Section 2 hereof or otherwise) multiplied by (ii) three (3)
but subject to a maximum reserve of 5,000,000 shares without the
consent of the Company, which shall not be unreasonably withheld
(the “Reserved Amount”). In the event that the Borrower
shall be unable to reserve the entirety of the Reserved Amount (the
“Reserve Amount Failure”), the Borrower shall promptly
take all actions necessary to increase its authorized share capital
to accommodate the Reserved Amount (the “Authorized Share
Increase”), including without limitation, all board of
directors actions and approvals and promptly (but no less than
sixty (60) days following the calling and holding a special meeting
of its shareholders no more than sixty (60) days following the
Reserve Amount Failure to seek approval of the Authorized Share
Increase via the solicitation of proxies. Notwithstanding the
foregoing, in no event shall the Reserved Amount be lower than the
initial Reserved Amount, regardless of any prior conversions. The
Borrower represents that upon issuance, the Conversion Shares will
be duly and validly issued, fully paid and non- assessable. In
addition, if the Borrower shall issue any securities or make any
change to its capital structure which would change the number of
Conversion Shares into which this Note shall be convertible at the
then current Conversion Price, the Borrower shall at the same time
make proper provision so that thereafter there shall be a
sufficient number of shares of Common Stock authorized and
reserved, free from preemptive rights, for conversion of this Note.
The Borrower (i) acknowledges that it has irrevocably instructed
its transfer agent to issue certificates for the Conversion Shares
or instructions to have the Conversion Shares issued as
contemplated by Section 1.4(f) hereof, and (ii) agrees that its
issuance of this Note shall constitute full authority to its
officers and agents who are charged with the duty of executing
stock certificates or cause the Company to electronically issue
shares of Common Stock to execute and issue the necessary
certificates for the Conversion Shares or cause the Conversion
Shares to be issued as contemplated by Section 1.4(f) hereof in
accordance with the terms and conditions of this Note.

 

If, at
any time the Borrower does not maintain the Reserved Amount it will
be considered an Event of Default under this Note.

 

1.4

Method of Conversion.

 

(a) Mechanics of Conversion. This
Note may be converted by the Holder in whole or in part, on any
Trading Day, at any time on or after the 180th calendar day after
the Issue Date, by submitting to the Borrower or Borrower’s
transfer agent a Notice of Conversion (by facsimile, e-mail or
other reasonable means of communication dispatched on the
Conversion Date prior to 11:59 p.m., New York, New York time). Any
Notice of Conversion submitted after 11:59 p.m., New York, New York
time, shall be deemed to have been delivered and received on the
next Trading Day.

 

(b) Surrender of Note Upon
Conversion. Notwithstanding anything to the contrary set
forth herein, upon conversion of this Note in accordance with the
terms hereof, the Holder shall not be required to physically
surrender this Note to the Borrower unless the entire unpaid
Principal Amount is so converted. The Holder and the Borrower shall
maintain records showing the Principal Amount so converted and the
dates of such conversions or shall use such other method,
reasonably satisfactory to the Holder and the Borrower, so as not
to require physical surrender of this Note upon each such
conversion. In the event of any dispute or discrepancy, such
records of the Borrower shall, prima facie, be controlling and
determinative in the absence of manifest error. Notwithstanding the
foregoing, if any portion of this Note is converted as aforesaid,
the Holder may not transfer this Note unless the Holder first
physically surrenders this Note to the Borrower, whereupon the
Borrower will forthwith issue and deliver upon the order of the
Holder a new Note of like tenor, registered as the Holder (upon
payment by the Holder of any applicable transfer taxes) may
request, representing in the aggregate the remaining unpaid
Principal Amount of this Note. The Holder and any assignee, by
acceptance of this Note, acknowledge and agree that, by reason of
the provisions of this paragraph, following conversion of a portion
of this Note, the unpaid and unconverted Principal Amount of this
Note represented by this Note may be less than the amount stated on
the face hereof.

 

 

26

 

 

(c) Payment of Taxes. The Borrower
shall not be required to pay any tax which may be payable in
respect of any transfer involved in the issue and delivery of
shares of Common Stock or other securities or property on
conversion of this Note in a name other than that of the Holder (or
in street name), and the Borrower shall not be required to issue or
deliver any such shares or other securities or property unless and
until the person or persons (other than the Holder or the custodian
in whose street name such shares are to be held for the
Holder’s account) requesting the issuance thereof shall have
paid to the Borrower the amount of any such tax or shall have
established to the satisfaction of the Borrower that such tax has
been paid.

 

(d) Delivery of Common Stock Upon
Conversion. Upon receipt by the Borrower from the Holder of
a facsimile transmission or e-mail (or other reasonable means of
communication) of a Notice of Conversion meeting the requirements
for conversion as provided in this Section 1.4, the Borrower shall
issue and deliver or cause to be issued and delivered to or upon
the order of the Holder certificates for the Conversion Shares (or
cause the electronic delivery of the Conversion Shares as
contemplated by Section 1.4(f) hereof) within three (3) Trading
Days after such receipt (the “Deadline”) (and, solely
in the case of conversion of the entire unpaid Principal Amount and
interest (including any Default Interest) under this Note,
surrender of this Note). If the Company shall fail for any reason
or for no reason to issue to the Holder on or prior to the Deadline
a certificate for the number of Conversion Shares or to which the
Holder is entitled hereunder and register such Conversion Shares on
the Company’s share register or to credit the Holder’s
balance account with DTC (as defined below) for such number of
Conversion Shares to which the Holder is entitled upon the
Holder’s conversion of this Note (a “Conversion
Failure”), then, in addition to all other remedies available
to the Holder, (i) the Company shall pay in cash to the Holder on
each day after the Deadline and during such Conversion Failure an
amount equal to one-half percent (0.5%) of the product of (A) the
sum of the number of Conversion Shares not issued to the Holder on
or prior to the Deadline and to which the Holder is entitled and
(B) the closing sale price of the Common Stock on the Trading Day
immediately preceding the last possible date which the Company
could have issued such Conversion Shares to the Holder without
violating this Section 1.4(d); and (ii) the Holder, upon written
notice to the Company, may void its Notice of Conversion with
respect to, and retain or have returned, as the case may be, any
portion of this Note that has not been converted pursuant to such
Notice of Conversion; provided that the voiding of an Notice of
Conversion shall not affect the Company’s obligations to make
any payments which have accrued prior to the date of such notice.
In addition to the foregoing, if on or prior to the Deadline the
Company shall fail to issue and deliver a certificate to the Holder
and register such Conversion Shares on the Company’s share
register or credit the Holder’s balance account with DTC for
the number of Conversion Shares to which the Holder is entitled
upon the Holder’s exercise hereunder or pursuant to the
Company’s obligation pursuant to clause (ii) below, and if on
or after such Trading Day the Holder purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in
satisfaction of a sale by the Holder of shares of Common Stock
issuable upon such exercise that the Holder anticipated receiving
from the Company, then the Company shall, within two (2) Trading
Days after the Holder’s request and in the Holder’s
discretion, either (i) pay cash to the Holder in an amount equal to
the Holder’s total purchase price (including brokerage
commissions and other reasonable and customary out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (the
“Buy-In Price”), at which point the Company’s
obligation to deliver such certificate (and to issue such
Conversion Shares) or credit such Holder’s balance account
with DTC for such Conversion Shares shall terminate, or (ii)
promptly honor its obligation to deliver to the Holder a
certificate or certificates representing such Conversion Shares or
credit such Holder’s balance account with DTC and pay cash to
the Holder in an amount equal to the excess (if any) of the Buy-In
Price over the product of (A) such number of shares of Common
Stock, times (B) the closing sales price of the Common Stock on the
date of exercise. Nothing shall limit the Holder’s right to
pursue any other remedies available to it hereunder, at law or in
equity, including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing
the Conversion Shares (or to electronically deliver such Conversion
Shares) upon the conversion of this Note as required pursuant to
the terms hereof.

 

 

27

 

 

(e) Obligation of Borrower to Deliver
Common Stock. At the time that the Holder submits the Notice
of Conversion to the Borrower or Borrower’s transfer agent,
the Holder shall be deemed to be the holder of record of the
Conversion Shares issuable upon such conversion, the outstanding
Principal Amount and the amount of accrued and unpaid interest
(including any Default Interest) under this Note shall be reduced
to reflect such conversion, and, unless the Borrower defaults on
its obligations under this Article I, all rights with respect to
the portion of this Note being so converted shall forthwith
terminate except the right to receive the Common Stock or other
securities, cash or other assets, as herein provided, on such
conversion. If the Holder shall have given a Notice of Conversion
as provided herein, the Borrower’s obligation to issue and
deliver the certificates for the Conversion Shares (or cause the
electronic delivery of the Conversion Shares as contemplated by
Section 1.4(f) hereof) shall be absolute and unconditional,
irrespective of the absence of any action by the Holder to enforce
the same, any waiver or consent with respect to any provision
thereof, the recovery of any judgment against any person or any
action to enforce the same, any failure or delay in the enforcement
of any other obligation of the Borrower to the holder of record, or
any setoff, counterclaim, recoupment, limitation or termination, or
any breach or alleged breach by the Holder of any obligation to the
Borrower, and irrespective of any other circumstance which might
otherwise limit such obligation of the Borrower to the Holder in
connection with such conversion. The Conversion Date specified in
the Notice of Conversion shall be the Conversion Date so long as
the Notice of Conversion is sent to the Borrower or
Borrower’s transfer agent before 11:59 p.m., New York, New
York time, on such date.

 

(f) Delivery of Conversion Shares by
Electronic Transfer. In lieu of delivering physical
certificates representing the Conversion Shares issuable upon
conversion hereof, provided the Borrower is participating in the
Depository Trust Company (“DTC”) Fast Automated
Securities Transfer or Deposit/Withdrawal at Custodian programs,
upon request of the Holder and its compliance with the provisions
contained in Section 1.1 and in this Section 1.4, the Borrower
shall use its reasonable best efforts to cause its transfer agent
to electronically transmit the Conversion Shares issuable upon
conversion hereof to the Holder by crediting the account of
Holder’s Prime Broker with DTC through its Deposit Withdrawal
Agent Commission system.

 

1.5 Concerning the Shares. The
Conversion Shares issuable upon conversion of this Note may not be
sold or transferred unless (i) such shares are sold pursuant to an
effective registration statement under the 1933 Act or (ii) the
Borrower or its transfer agent shall have been furnished with an
opinion of counsel (which opinion shall be the Legal Counsel
Opinion (as defined in the Purchase Agreement)) to the effect that
the shares to be sold or transferred may be sold or transferred
pursuant to an exemption from such registration or (iii) such
shares are sold or transferred pursuant to Rule 144, Rule 144A,
Regulation S, or other applicable exemption, or (iv) such shares
are transferred to an “affiliate” (as defined in Rule
144) of the Borrower who agrees to sell or otherwise transfer the
shares only in accordance with this Section 1.5 and who is an
Accredited Investor (as defined in the Purchase Agreement). Except
as otherwise provided in the Purchase Agreement (and subject to the
removal provisions set forth below), until such time as the
Conversion Shares have been registered under the 1933 Act or
otherwise may be sold pursuant to Rule 144, Rule 144A, Regulation
S, or other applicable exemption without any restriction as to the
number of securities as of a particular date that can then be
immediately sold, each certificate for the Conversion Shares that
has not been so included in an effective registration statement or
that has not been sold pursuant to an effective registration
statement or an exemption that permits removal of the legend, shall
bear a legend substantially in the following form, as
appropriate:

 

“NEITHER THE
ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A)
AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL
(WHICH MAY BE THE LEGAL COUNSEL OPINION (AS DEFINED IN THE PURCHASE
AGREEMENT)), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS
NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE
144, RULE 144A, REGULATION S, OR OTHER APPLICABLE EXEMPTION UNDER
SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.”

 

 

28

 

 

The
legend set forth above shall be removed and the Company shall issue
to the Holder a certificate for the applicable Conversion Shares
without such legend upon which it is stamped or (as requested by
the Holder) issue the applicable Conversion Shares by electronic
delivery by crediting the account of such holder’s broker
with DTC, if, unless otherwise required by applicable state
securities laws: (a) such Conversion Shares are registered for sale
under an effective registration statement filed under the 1933 Act
or otherwise may be sold pursuant to Rule 144, Rule 144A,
Regulation S, or other applicable exemption without any restriction
as to the number of securities as of a particular date that can
then be immediately sold, or (b) the Company or the Holder provides
the Legal Counsel Opinion (as contemplated by and in accordance
with Section 4(m) of the Purchase Agreement) to the effect that a
public sale or transfer of such Conversion Shares may be made
without registration under the 1933 Act, which opinion shall be
accepted by the Company so that the sale or transfer is effected.
The Company shall be responsible for the fees of its transfer agent
and all DTC fees associated with any such issuance. The Holder
agrees to sell all Conversion Shares, including those represented
by a certificate(s) from which the legend has been removed, in
compliance with applicable prospectus delivery requirements, if
any. In the event that the Company does not accept the opinion of
counsel provided by the Holder with respect to the transfer of
Conversion Shares pursuant to an exemption from registration, such
as Rule 144, Rule 144A or Regulation S, at the Deadline,
notwithstanding that the conditions of Rule 144, Rule 144A,
Regulation S, or other applicable exemption, as applicable, have
been met, it will be considered an Event of Default under this
Note.

 

1.6

Effect of Certain Events.

 

(a) Effect of Merger, Consolidation,
Etc. At the option of the Holder, the sale, conveyance or
disposition of all or substantially all of the assets of the
Borrower, or the consolidation, merger or other business
combination of the Borrower with or into any other Person (as
defined below) or Persons when the Borrower is not the survivor
shall either: (i) be deemed to be an Event of Default pursuant to
which the Borrower shall be required to pay to the Holder upon the
consummation of and as a condition to such transaction an amount
equal to the Default Amount (defined in Section 3.24) or (ii) be
treated pursuant to Section 1.6(b) hereof. “Person”
shall mean any individual, corporation, limited liability company,
partnership, association, trust or other entity or
organization.

 

(b) Adjustment Due to Merger,
Consolidation, Etc. If, at any time when this Note is issued
and outstanding and prior to conversion of all of this Note, there
shall be any merger, consolidation, exchange of shares,
recapitalization, reorganization, or other similar event, as a
result of which shares of Common Stock of the Borrower shall be
changed into the same or a different number of shares of another
class or classes of stock or securities of the Borrower or another
entity, or in case of any sale or conveyance of all or
substantially all of the assets of the Borrower other than in
connection with a plan of complete liquidation of the Borrower,
then the Holder of this Note shall thereafter have the right to
receive upon conversion of this Note, upon the basis and upon the
terms and conditions specified herein and in lieu of the shares of
Common Stock immediately theretofore issuable upon conversion, such
stock, securities or assets which the Holder would have been
entitled to receive in such transaction had this Note been
converted in full immediately prior to such transaction at the
Exercise Price without adjustment for any reason, including but not
limited to default (without regard to any limitations on conversion
set forth herein). The Borrower shall not effectuate any
transaction described in this Section 1.6(b) unless (a) it first
gives, to the extent practicable, at least thirty (30) days prior
written notice (but in any event at least fifteen (15) days prior
written notice) of the record date of the special meeting of
shareholders to approve, or if there is no such record date, the
consummation of, such merger, consolidation, exchange of shares,
recapitalization, reorganization or other similar event or sale of
assets (during which time the Holder shall be entitled to convert
this Note) and (b) the resulting successor or acquiring entity (if
not the Borrower) assumes by written instrument the obligations of
this Section 1.6(b). The above provisions shall similarly apply to
successive consolidations, mergers, sales, transfers or share
exchanges.

 

 

29

 

 

(c) Adjustment Due to Distribution.
If the Borrower shall declare or make any distribution of its
assets (or rights to acquire its assets) to holders of Common Stock
as a dividend, stock repurchase, by way of return of capital or
otherwise (including any dividend or distribution to the
Borrower’s shareholders in cash or shares (or rights to
acquire shares) of capital stock of a subsidiary (i.e., a
spin-off)) (a “Distribution”), then the Holder of this
Note shall be entitled, upon any conversion of this Note after the
date of record for determining shareholders entitled to such
Distribution, to receive the amount of such assets which would have
been payable to the Holder with respect to the shares of Common
Stock issuable upon such conversion had such Holder been the holder
of such shares of Common Stock on the record date for the
determination of shareholders entitled to such
Distribution.

 

(d)  Pending Legislation. As
of the Issue Date hereof, proposed legislation exists, namely
proposed amendments to Rule 144(d)(3)(ii) proposed on December 22,
2020 in SEC Release 2020-336, that would fundamentally change the
economic terms of this Note. In the event the rule becomes law and
becomes effective while any amounts are outstanding under this
Note, Section 1.2 hereof shall be automatically amended to contain
only a fixed conversion price of $0.10 per share. In the event that
the Borrower is in default of any of the provisions of the Note or
other Transaction Documents, and the Company has not cured said
default within five (5) calendar days, the fixed conversion price
shall be reduced to $0.05 per share (the “Default Fixed
Price”) in addition to any other principal adjustments,
default interest, or other remedies available to it under law. In
the event the final rule, or any other combination of final rules,
make this provision inoperable, invalid, or otherwise have an
effect that changes the economics of the transactions contemplated
hereby, the pertinent clause or mechanic of operation shall be
stricken and only the fixed price provision shall
remain.

 

(e) Dilutive Issuance. If the
Borrower, at any time within 60 days of the Issue Date, issues,
sells or grants (or has issued, sold or granted as of the Issue
Date, as the case may be) any option to purchase, or sells or
grants any right to reprice, or otherwise disposes of, or issues
(or has sold or issued, as the case may be, or announces any sale,
grant or any option to purchase or other disposition), securities
convertible into, exercisable for, or otherwise entitle any person
or entity the right to acquire, shares of Common Stock (including,
without limitation, upon conversion of this Note, and any
convertible notes or warrants outstanding as of or within 60 days
of the Issue Date), in each or any case at an effective price per
share that is lower than the then Conversion Price (such lower
price, the “Base Conversion Price” and such issuances,
collectively, a “Dilutive Issuance”) (it being agreed
that if the holder of the Common Stock or other securities so
issued shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or
exchange prices or otherwise, or due to warrants, options or rights
per share which are issued in connection with such issuance, be
entitled to receive shares of Common Stock at an effective price
per share that is lower than the Conversion Price, such issuance
shall be deemed to have occurred for less than the Conversion Price
on such date of the Dilutive Issuance), then the Conversion Price
shall be reduced, at the option of the Holder, to a price equal the
Base Conversion Price. If the Company enters into a Variable Rate
Transaction within 60 days of the Issue Date, despite the
prohibition set forth in the Purchase Agreement, the Company shall
be deemed to have issued Common Stock or Common Stock Equivalents
at the lowest possible price per share at which such securities
could be issued in connection with such Variable Rate Transaction.
Such adjustment shall be made whenever such Common Stock or other
securities are issued. Notwithstanding the foregoing, no adjustment
will be made under this Section 1.6(e) in respect of an Exempt
Issuance or issuance made more than 60 days from the Issue Date. In
the event of an issuance of securities involving multiple tranches
or closings, any adjustment pursuant to this Section 1.6(e) shall
be calculated as if all such securities were issued at the initial
closing.

 

 

30

 

 

An
“Exempt Issuance” shall mean the issuance of (a) shares
of Common Stock or other securities to officers or directors of the
Company pursuant to any stock or option or similar equity incentive
plan duly adopted for such purpose, by a majority of the
non-employee members of the Company’s Board of Directors or a
majority of the members of a committee of non-employee directors
established for such purpose in a manner which is consistent with
the Company’s prior business practices; (b) securities issued
pursuant to a merger, consolidation, acquisition or similar
business combination approved by a majority of the disinterested
directors of the Company, provided that any such issuance shall
only be to a Person (or to the equity holders of a Person) which
is, itself or through its subsidiaries, an operating company or an
owner of an asset in a business synergistic with the business of
the Company and shall provide to the Company additional benefits in
addition to the investment of funds, but shall not include a
transaction in which the Company is issuing securities primarily
for the purpose of raising capital or to an entity whose primary
business is investing in securities; (c) securities issued pursuant
to any equipment loan or leasing arrangement, real property leasing
arrangement or debt financing from a bank or similar financial
institution approved by a majority of the disinterested directors
of the Company; (d) securities issued under the Form 1-A or S-1
filed and declared effective by the Securities and Exchange
Commission as of the date hereof; (e) existing convertible debt and
equity lines of credit in existence on the date hereof, (f) private
placements of Common Stock by the Company; and/or (g) securities
issued with respect to which the Holder waives its rights in
writing under this Section 1.6(e).

 

(f) Notice of Adjustments. Upon the
occurrence of each adjustment or readjustment of the Conversion
Price as a result of the events described in this Section 1.6, the
Borrower, at its expense, shall promptly compute such adjustment or
readjustment and prepare and furnish to the Holder a certificate
setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based. The
Borrower shall, upon the written request at any time of the Holder,
furnish to such Holder a like certificate setting forth (i) such
adjustment or readjustment, (ii) the Conversion Price at the time
in effect and (iii) the number of shares of Common Stock and the
amount, if any, of other securities or property which at the time
would be received upon conversion of the Note.

 

1.7 Adjustments to Conversion
Price. At any time after the Issue Date, (i) if at any time
the Borrower does not maintain or replenish the Reserved Amount (as
defined herein) within three (3) business days of the request of
the Holder; (ii) if, once obtained as required under the
Transaction Documents, the Borrower fails to maintain the listing
of the Common Stock on at least one of the OTC Markets or an
equivalent replacement exchange, the Nasdaq National Market, the
Nasdaq Small Cap Market, the New York Stock Exchange, or the NYSE
MKT; (iii) if the Borrower fails to comply with the reporting
requirements of the Exchange Act; the reporting requirements
necessary to satisfy the availability of Rule 144 to the Holder or
its assigns, including but not limited to the timely fulfillment of
its filing requirements as a fully- reporting issuer registered
with the SEC,; (iv) if the Borrower effectuates a reverse split of
its Common Stock without twenty (20) days prior written notice to
the Holder; (v) if, once listed, subsequently OTC Markets changes
the Borrower’s designation to ‘No Information’
(Stop Sign), ‘Caveat Emptor’ (Skull and Crossbones), or
‘OTC’, ‘Other OTC’ or ‘Grey
Market’ (Exclamation Mark Sign) and does not cure such status
within 10 business days; (vi) the restatement of any financial
statements filed by the Borrower with the SEC for any date or
period from two (2) years prior to the Issue Date of this Note and
until this Note is no longer outstanding, if the result of such
restatement would, by comparison to the un-restated financial
statement, have constituted a material adverse effect on the rights
of the Holder with respect to this Note or the Purchase Agreement;
(vii) once it begins trading on any of the trading markets or
exchanges listed hereafter, any cessation of trading of the Common
Stock on at least one of the OTC Markets or an equivalent
replacement exchange, the Nasdaq National Market, the Nasdaq Small
Cap Market, the New York Stock Exchange, or the NYSE MKT, and such
cessation of trading shall continue for a period of five
consecutive (5) Trading Days; and/or (viii) if Borrow is trading,
the Borrower loses the “bid” price for its Common Stock
($0.0001 on the “Ask” with zero market makers on the
“Bid” per Level 2); and/or (ix) if the Holder is
notified in writing by the Company or the Company’s transfer
agent that the Company does not have the necessary amount of
authorized and issuable shares of Common Stock available to satisfy
the issuance of Shares pursuant to a Conversion Notice, then in
addition to all other remedies under this Note, the Holder shall be
entitled to increase, by two percent (2%) for each occurrence,
cumulative or otherwise, the discount to the Conversion Price shall
apply for all future conversions under the Note until such time as
the respective Default has been cured for fifteen (15) calendar
days.

 

 

31

 

 

1.8 Status as Shareholder. Upon
submission of a Notice of Conversion by a Holder, (i) the
Conversion Shares covered thereby (other than the Conversion
Shares, if any, which cannot be issued because their issuance would
exceed such Holder’s allocated portion of the Reserved Amount
or Maximum Share Amount) shall be deemed converted into shares of
Common Stock, and (ii) the Holder’s rights as a Holder of
such converted portion of this Note shall cease and terminate,
excepting only the right to receive certificates for such shares of
Common Stock and to any remedies provided herein or otherwise
available at law or in equity to such Holder because of a failure
by the Borrower to comply with the terms of this Note.
Notwithstanding the foregoing, if a Holder has not received
certificates for all shares of Common Stock prior to the tenth
(10th) business day after the expiration of the Deadline with
respect to a conversion of any portion of this Note for any reason,
then (unless the Holder otherwise elects to retain its status as a
holder of Common Stock by so notifying the Borrower) the Holder
shall regain the rights of a Holder of this Note with respect to
such unconverted portions of this Note and the Borrower shall, as
soon as practicable, return such unconverted Note to the Holder or,
if the Note has not been surrendered, adjust its records to reflect
that such portion of this Note has not been converted. In all
cases, the Holder shall retain all of its rights and remedies for
the Borrower’s failure to convert this Note.

 

1.9 Prepayment. Notwithstanding anything to the contrary contained
in this Note, subject to the terms of this Section, at any time
during the period beginning on the Issue Date and ending on the
date which is two hundred forty five (245) calendar days following
the Issue Date (“Prepayment Termination Date”),
Borrower shall have the right, exercisable on not less than five
(5) Trading Days prior written notice to the Holder of this Note,
to prepay up to the outstanding balance on this Note (principal and
accrued interest), in full, in accordance with this Section. Any
notice of prepayment hereunder (an “Optional Prepayment
Notice”) shall be delivered to the Holder of the Note at its
registered addresses and shall state: (1) that the Borrower is
exercising its right to prepay the Note, and (2) the date of
prepayment which shall be not more than fifteen (15) Trading Days
from the date of the Optional Prepayment Notice; and (3) the amount
(in dollars) that the Borrower is paying. Notwithstanding
Holder’s receipt of the Optional Prepayment Notice the Holder
may convert, or continue to convert the Note in whole or in part
until the Optional Prepayment Amount (as defined herein) is paid to
the Holder. On the date fixed for prepayment (the “Optional
Prepayment Date”), the Borrower shall make payment of the
Optional Prepayment Amount (as defined below) to or upon the order
of the Holder as specified by the Holder in writing to the Borrower
at least one (1) business day prior to the Optional Prepayment
Date.  If the Borrower exercises its right to prepay the Note,
the Borrower shall make payment to the Holder of an amount in cash
(the “Optional Prepayment Amount”) equal to the
Prepayment Factor (as defined below), multiplied by the sum of: (w)
the then outstanding principal amount of this
Note plus (x)
accrued and unpaid interest on the unpaid principal amount of this
Note to the Optional Prepayment Date plus (y)
Default Interest, if any, on the amounts referred to in clauses (w)
and (x) plus (z)
any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g)
hereof.  If the Borrower delivers an Optional Prepayment
Notice and fails to pay the Optional Prepayment Amount due to the
Holder of the Note within two (2) business days following the
Optional Prepayment Date, the Borrower shall forever forfeit its
right to prepay the Note pursuant to this Section. After the
Prepayment Termination Date, the Borrower shall have no right to
prepay this Note. For purposes hereof, the “Prepayment
Factor” shall equal: one hundred five percent (105%) if the
Optional Prepayment Date occurs during one (1) through sixty (60)
calendar days following the Issue Date; one hundred fifteen percent
(115%) if the Optional Prepayment Date occurs sixty-one (61)
through one hundred twenty (120) calendar days following the Issue
Date; one hundred thirty percent (130%) if the Optional Prepayment
Date occurs one hundred twenty-one (121) through one two hundred
forty five (245) calendar days following the Issue Date. Borrower
shall not have any prepayment rights after two hundred forty five
(245) calendar days following the Issue Date.

 

 

32

 

 

ARTICLE
II. RANKING AND CERTAIN COVENANTS

 

2.1 Ranking and Security. The
obligations of the Borrower under this Note shall rank subordinate
with respect to any and all Indebtedness incurred as of or
following the Issue Date.

 

2.2 Removed and
reserved.

 

2.3 Removed
and reserved.

 

2.4 Restriction on Stock Repurchases and
Debt Repayments. So long as the Borrower shall have any
obligation under this Note, the Borrower shall not without the
Holder’s written consent redeem, repurchase or otherwise
acquire (whether for cash or in exchange for property or other
securities or otherwise) in any one transaction or series of
related transactions any shares of capital stock of the Borrower or
any warrants, rights or options to purchase or acquire any such
shares.

 

2.5 Sale of Assets. So long as the
Borrower shall have any obligation under this Note, the Borrower
shall not, without the Holder’s written consent, sell, lease
or otherwise dispose of any significant portion of its assets
outside the ordinary course of business. Any consent to the
disposition of any assets may be conditioned on a specified use of
the proceeds of disposition, but otherwise such consent shall not
be unreasonably withheld, conditioned, or delayed.

 

2.6 Advances and Loans; Affiliate
Transactions. So long as the Borrower shall have any
obligation under this Note, the Borrower shall not, without the
Holder’s written consent, lend money, give credit, make
advances to or enter into any transaction with any person, firm,
joint venture or corporation, including, without limitation,
officers, directors, employees, subsidiaries and affiliates of the
Borrower, except loans, credits or advances (a) in existence or
committed on the Issue Date and which the Borrower has informed
Holder in writing prior to the Issue Date, (b) in regard to
transactions with unaffiliated third parties, made in the ordinary
course of business or (c) in regard to transactions with
unaffiliated third parties, not in excess of $500,000. So long as
the Borrower shall have any obligation under this Note, the
Borrower shall not, without the Holder’s written consent,
repay any affiliate (as defined in Rule 144) of the Borrower in
connection with any indebtedness or accrued amounts owed to any
such party outside the ordinary course of business, which
specifically excludes reasonable salaries of executive
officers.

 

2.7 Section 3(a)(9) or 3(a)(10)
Transaction. So long as this Note is outstanding, the
Borrower shall not enter into any transaction or arrangement
structured in accordance with, based upon, or related or pursuant
to, in whole or in part, either Section 3(a)(9) of the Securities
Act (a “3(a)(9) Transaction”) or Section 3(a)(l0) of
the Securities Act (a “3(a)(l0) Transaction”). In the
event that the Borrower does enter into, or makes any issuance of
Common Stock related to a 3(a)(9) Transaction or a 3(a)(l0)
Transaction while this note is outstanding, a liquidated damages
charge of 5% of the outstanding principal balance of this Note, but
not less than Five Thousand Dollars ($5,000), will be assessed and
will become immediately due and payable to the Holder at its
election in the form of a cash payment or added to the balance of
this Note (under Holder's and Borrower's expectation that this
amount will tack back to the Issue Date).

 

2.8 Preservation of Business and
Existence, etc. So long as the Borrower shall have any
obligation under this Note, the Borrower shall not, without the
Holder’s written consent, (a) change the nature of its
business in a material respect; or (b) sell, divest, change the
structure of any material assets other than in the ordinary course
of business;. In addition, so long as the Borrower shall have any
obligation under this Note, the Borrower shall maintain and
preserve, and cause each of its Subsidiaries to maintain and
preserve, its existence, rights and privileges, and become or
remain, and cause each of its Subsidiaries (other than dormant
Subsidiaries that have no or minimum assets) to become or remain,
duly qualified and in good standing in each jurisdiction in which
the character of the properties owned or leased by it or in which
the transaction of its business makes such qualification
necessary.

  

 

33

 

 

2.9 Non-circumvention. The Company
hereby covenants and agrees that the Company will not, by amendment
of its Certificate or Articles of Incorporation or Bylaws, or
through any reorganization, transfer of assets, consolidation,
merger, scheme of arrangement, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms of this Note, and
will at all times in good faith carry out all the provisions of
this Note and take all action as may be required to protect the
rights of the Holder.

 

2.10 Lost,
Stolen or Mutilated Note. Upon receipt by the Company of
evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note, and, in the case of loss,
theft or destruction, of any indemnification undertaking by the
Holder to the Company in customary form and, in the case of
mutilation, upon surrender and cancellation of this Note, the
Company shall execute and deliver to the Holder a new
Note.

 

ARTICLE
III. EVENTS OF DEFAULT

 

It
shall be considered an event of default if any of the following
events listed in this Article III (each, an “Event of
Default”) shall occur:

 

3.1
Conversion and the
Shares. The Borrower (i) fails to issue Conversion Shares to
the Holder (or announces or threatens in writing that it will not
honor its obligation to do so) upon exercise by the Holder of the
conversion rights of the Holder in accordance with the terms of
this Note, (ii) fails to transfer or cause its transfer agent to
transfer (issue) (electronically or in certificated form) any
certificate for the Conversion Shares issuable to the Holder upon
conversion of or otherwise pursuant to this Note as and when
required by this Note, (iii) reserve the Reserved Amount at all
times, or (iii) the Borrower directs its transfer agent not to
transfer or delays, impairs, and/or hinders its transfer agent in
transferring (or issuing) (electronically or in certificated form)
any certificate for the Conversion Shares issuable to the Holder
upon conversion of or otherwise pursuant to this Note as and when
required by this Note, or fails to remove (or directs its transfer
agent not to remove or impairs, delays, and/or hinders its transfer
agent from removing) any restrictive legend (or to withdraw any
stop transfer instructions in respect thereof) on any certificate
for any Conversion Shares issued to the Holder upon conversion of
or otherwise pursuant to this Note as and when required by this
Note (or makes any written announcement, statement or threat that
it does not intend to honor the obligations described in this
paragraph) and any such failure shall continue uncured (or any
written announcement, statement or threat not to honor its
obligations shall not be rescinded in writing) for five (5) Trading
Days after the Holder shall have delivered a Notice of Conversion.
It is an obligation of the Borrower to remain current in its
obligations to its transfer agent. It shall be an Event of Default
of this Note, if a conversion of this Note is delayed, hindered or
frustrated due to a balance owed by the Borrower to its transfer
agent. If at the option of the Holder, the Holder advances any
funds to the Borrower’s transfer agent in order to process a
conversion, such advanced funds shall be paid by the Borrower to
the Holder within forty-eight (48) hours of a demand from the
Holder.

 

3.2 Breach of Agreements and
Covenants. The Borrower breaches any material agreement,
covenant or other material term or condition contained in the
Purchase Agreement, this Note, the Irrevocable Transfer Agent
Instructions or in any agreement, statement or certificate given in
writing pursuant hereto or in connection herewith or therewith,
which is not cured within five (5) days of notice that Company is
in breach thereof.

 

3.3 Breach of Representations and
Warranties. Any material representation or warranty of the
Borrower made in the Purchase Agreement, this Note, the Irrevocable
Transfer Agent Instructions or in any agreement, statement or
certificate given in writing pursuant hereto or in connection
herewith or therewith shall be false or misleading in any material
respect when made and the breach of which has (or with the passage
of time will have) a material adverse effect on the rights of the
Holder with respect to this Note or the Purchase
Agreement.

 

 

34

 

 

3.4 Receiver or Trustee. The
Borrower or any subsidiary of the Borrower shall make an assignment
for the benefit of creditors, or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial
part of its property or business, or such a receiver or trustee
shall otherwise be appointed.

 

3.5 Judgments. Any money judgment,
writ or similar process shall be entered or filed against the
Borrower or any subsidiary of the Borrower or any of its property
or other assets for more than $160,000, and shall remain unvacated,
unbonded or unstayed for a period of twenty (20) days unless
otherwise consented to by the Holder, which consent will not be
unreasonably withheld.

 

3.6 Bankruptcy. Bankruptcy,
insolvency, reorganization or liquidation proceedings or other
proceedings, voluntary or involuntary, for relief under any
bankruptcy law or any law for the relief of debtors shall be
instituted by or against the Borrower or any subsidiary of the
Borrower.

 

3.7 Delisting of Common Stock. Once
the Borrower obtains a listing, the Borrower should subsequently
fail to maintain the listing of the Common Stock on at least one of
the Over the Counter Bulletin Board, the OTCQB Market, any level of
the OTC Markets, or any level of the Nasdaq Stock Market or the New
York Stock Exchange (including the NYSE American).

 

3.8 Failure to Comply with the 1934
Act. Borrow shall remain current its quarterly, annual and
current reports with the Securities and Exchange Commission and
shall become subject to the 1934 Act within 180 days. At any time
after 180 days following the Issue Date, the Borrower shall fail to
comply with the reporting requirements of the 1934 Act and/or the
Borrower shall cease to be subject to the reporting requirements of
the 1934 Act. It shall be an Event of Default under this Section
3.9 if the Borrower shall file any Notification of Late Filing on
Form 12b-25 with the SEC.

 

3.9 Liquidation. Any dissolution,
liquidation, or winding up of Borrower or any substantial portion
of its business.

 

3.10 Cessation of Operations. Any
cessation of operations by Borrower or Borrower admits it is
otherwise generally unable to pay its debts as such debts become
due, provided, however, that any disclosure of the Borrower’s
ability to continue as a “going concern” shall not be
an admission that the Borrower cannot pay its debts as they become
due.

 

3.11 Maintenance of Assets. The
failure by Borrower to maintain any material intellectual property
rights, personal, real property or other assets which are necessary
to conduct its business (whether now or in the
future).

 

3.12 Financial Statement
Restatement. The restatement of any financial statements
filed by the Borrower with the SEC for any date or period from two
years prior to the Issue Date of this Note and until this Note is
no longer outstanding, if the result of such restatement would, by
comparison to the unrestated financial statement, have constituted
a material adverse effect on the rights of the Holder with respect
to this Note or the Purchase Agreement.

 

3.13
Reverse Splits. The
Borrower effectuates a reverse split of its Common Stock without
twenty (20) days prior written notice to the Holder.

 

3.14
Replacement of Transfer
Agent. In the event that the Borrower proposes to replace
its transfer agent, the Borrower fails to provide, prior to the
effective date of such replacement, a fully executed Irrevocable
Transfer Agent Instructions in a form as initially delivered
pursuant to the Purchase Agreement (including but not limited to
the provision to irrevocably reserve shares of Common Stock in the
Reserved Amount) signed by the successor transfer agent to Borrower
and the Borrower.

 

 

35

 

 

3.15 DTC “Chill”. The
DTC places a “chill” (i.e. a restriction placed by DTC
on one or more of DTC’s services, such as limiting a DTC
participant’s ability to make a deposit or withdrawal of the
security at DTC) on any of the Borrower’s
securities.

 

3.16 Illegality. Any court of
competent jurisdiction issues an order declaring this Note, the
Purchase Agreement or any provision hereunder or thereunder to be
illegal.

 

3.17
DWAC Eligibility.
In addition to the Event of Default in Section 3.16, the Borrower
shall use its best efforts to become eligible for trading through
the DTC’s Fast Automated Securities Transfer or
Deposit/Withdrawal at Custodian programs within 180 days of the
Issue Date.

 

3.18 Variable
Rate Transactions; Dilutive Issuances. Borrower shall
request the consent of Lender, which consent shall not be
unreasonably withheld, if at any time within 60 days of the Issue
Date, the Borrower (i) issues shares of Common Stock (or
convertible securities or Purchase Rights) pursuant to an equity
line of credit of the Company or otherwise in connection with a
Variable Rate Transaction (entered into in the future) except for
existing lines of credit or Variable Rate Transactions existing as
of the date hereof, (ii) adjusts downward the “floor
price” at which shares of Common Stock (or convertible
securities or Purchase Rights) may be issued under an equity line
of credit or otherwise in connection with a Variable Rate
Transaction (r entered into in the future) except for existing
lines of credit or Variable Rate Transactions existing as of the
date hereof, or (iii) a Dilutive Issuance is triggered as provided
in this Note.

 

 

3.19 Bid
Price. Once the Borrower obtains a listing, the Borrower
shall subsequently lose the “bid” price for its Common
Stock ($0.0001 on the “Ask” with zero market makers on
the “Bid” per Level 2) and/or a market (including the
OTC Pink, OTCQB or an equivalent replacement marketplace or
exchange).

 

3.20 Inside
Information. Any attempt by the Borrower or its officers,
directors, and/or affiliates to intentionally transmit, convey,
disclose, or any actual transmittal, conveyance, or disclosure by
the Borrower or its officers, directors, and/or affiliates of,
material non-public information concerning the Borrower, to the
Holder or its successors and assigns, which is not immediately
cured by Borrower’s filing of a Form 8-K pursuant to
Regulation FD on that same date

 

 

3.21 Unavailability
of Rule 144. If, at any time on or after the date which is
nine (9) months after the Issue Date, except due to the
Holder’s actions or inactions, the Holder is unable to (i)
obtain a standard “144 legal opinion letter” from an
attorney reasonably acceptable to the Holder, the Holder’s
brokerage firm (and respective clearing firm), and the
Borrower’s transfer agent in order to facilitate the
Holder’s conversion of any portion of the Note into free
trading shares of the Borrower’s Common Stock pursuant to
Rule 144, and/or (ii) thereupon deposit such shares into the
Holder’s brokerage account.

 

 

3.22 Delisting
or Suspension of Trading of Common Stock. If, at any time on
or after the Borrower obtains a listing, the Borrower’s
Common Stock (i) is suspended from trading, (ii) halted from
trading, and/or (iii) fails to be quoted or listed (as applicable)
within one hundred and eighty (180) days of Issue Date on any level
of the OTC Markets, any tier of the NASDAQ Stock Market, the New
York Stock Exchange, or the NYSE American.

 

 

36

 

 

3.23 Rights
and Remedies Upon an Event of Default. Upon the occurrence
and during the continuation of any Event of Default specified in
this Article III which remains uncured for five (5) days after
written notice from Holder provided to Borrower, this Note shall
become immediately due and payable and the Borrower shall pay to
the Holder, in full satisfaction of its obligations hereunder, an
amount (the “Default Amount”) equal to the Principal
Amount then outstanding plus accrued interest (including any
Default Interest) through the date of full repayment multiplied by
one hundred twenty-five percent (125%). Holder may, in its sole
discretion, determine to accept payment part in Common Stock and
part in cash. For purposes of payments in Common Stock, the
conversion formula set forth in Section 1.2 shall apply. Upon an
uncured Event of Default, all amounts payable hereunder shall
immediately become due and payable, all without demand, presentment
or notice, all of which hereby are expressly waived by the
Borrower, together with all costs, including, without limitation,
legal fees and expenses, of collection, and the Holder shall be
entitled to exercise all other rights and remedies available at law
or in equity, including, without limitation.

 

3.24 Stock
Symbol and Listing. Within one hundred and eighty (180) days
of the Issue Date hereof, Borrower shall have obtained a trading
symbol and be able to have its common stock trade on OTC Pink,
OTCQB or higher tier exchange.

 

ARTICLE
IV. MISCELLANEOUS

 

4.1 Failure or Indulgence Not
Waiver. No failure or delay on the part of the Holder in the
exercise of any power, right or privilege hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privileges. All
rights and remedies of the Holder existing hereunder are cumulative
to, and not exclusive of, any rights or remedies otherwise
available.

 

4.2 Notices. All notices, demands,
requests, consents, approvals, and other communications required or
permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in
the mail, registered or certified, return receipt requested,
postage prepaid, (iii) delivered by reputable air courier service
with charges prepaid, or (iv) transmitted by hand delivery,
telegram, e-mail or facsimile, addressed as set forth below or to
such other address as such party shall have specified most recently
by written notice. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon
hand delivery or delivery by e-mail or facsimile, with accurate
confirmation generated by the transmitting facsimile machine, at
the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be
received), or the first business day following such delivery (if
delivered other than on a business day during normal business hours
where such notice is to be received) or (b) on the second business
day following the date of mailing by express courier service, fully
prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur. The addresses for such
communications shall be:

 

If to
the Borrower, to:

 

TEGO
CYBER INC.

8565
South Eastern Avenue, Suite 150

Las
Vegas, Nevada 89123

Attention: Shannon
Wilkinson

e-mail:
shannon.wilkinson@tegocyber.com

 

 

37

 

 

With a
copy by e-mail only to (which copy shall not constitute
notice):

 

HORWITZ
+ ARMSTRONG, A PROF. LAW CORP.

14
Orchard Suite 200, Lake Forest, CA 92630

Attention: Jessica
M. Lockett, Esq.

e-mail:
jlockett@horwitzarmstrong.com

 

If to
the Holder:

 

FIRSTFIRE GLOBAL
OPPORTUNITIES FUND LLC

1040
First Avenue, Suite 190 New York, NY 10022 Attention: Eli
Fireman

e-mail:
eli@firstfirecapital.com

 

With a
copy by e-mail only to (which copy shall not constitute
notice):

 

FABIAN
VANCOTT

215
South State Street, Suite 1200

Salt
Lake City, Utah 84111

Attn:
Anthony Michael Panek

e-mail:
apanek@fabianvancott.com

 

4.3 Amendments. This Note and any
provision hereof may only be amended by an instrument in writing
signed by the Borrower and the Holder. The term “Note”
and all reference thereto, as used throughout this instrument,
shall mean this instrument as originally executed, or if later
amended or supplemented, then as so amended or
supplemented.

 

4.4 Assignability. This Note shall
be binding upon the Borrower and its successors and assigns, and
shall inure to be the benefit of the Holder and its successors and
assigns. Neither the Borrower nor the Holder shall assign this Note
or any rights or obligations hereunder without the prior written
consent of the other. Notwithstanding the foregoing, the Holder may
assign its rights hereunder to any “accredited
investor” (as defined in Rule 501(a) of the 1933 Act) in a
private transaction from the Holder or to any of its
“affiliates”, as that term is defined under the 1934
Act, without the consent of the Borrower. Notwithstanding anything
in this Note to the contrary, this Note may be pledged as
collateral in connection with a bona fide margin account or other
lending arrangement. The Holder and any assignee, by acceptance of
this Note, acknowledge and agree that following conversion of a
portion of this Note, the unpaid and unconverted principal amount
of this Note represented by this Note may be less than the amount
stated on the face hereof.

 

4.5 Cost of Collection. If default
is made in the payment of this Note, the Borrower shall pay the
Holder hereof costs of collection, including reasonable
attorneys’ fees.

 

4.6 Governing Law; Venue; Attorney’s
Fees. This Note shall be governed by and construed in
accordance with the laws of the State of New York without regard to
principles of conflicts of laws. Any action brought by either party
against the other concerning the transactions contemplated by this
Note or any other agreement, certificate, instrument or document
contemplated hereby shall be brought only in the state courts
located in the state of New York or federal courts located in the
state of New York. The Borrower hereby irrevocably waives any
objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of
jurisdiction or venue or based upon forum non conveniens. Each party hereby irrevocably
waives personal service of process and consents to process being
served in any suit, action or proceeding in connection with this
Note or any other agreement, certificate, instrument or document
contemplated hereby or thereby by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to
it under this Note and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to
serve process in any other manner permitted by law. The prevailing
party in any action or dispute brought in connection with this the
Note or any other agreement, certificate, instrument or document
contemplated hereby or thereby shall be entitled to recover from
the other party its reasonable attorney’s fees and
costs.

 

 

38

 

 

4.7 Removed
and Reserved.

 

4.8 Purchase Agreement. The Company
and the Holder shall be bound by the applicable terms of the
Purchase Agreement and the documents entered into in connection
herewith and therewith.

 

4.9 Notice of Corporate Events.
Except as otherwise provided below, the Holder of this Note shall
have no rights as a Holder of Common Stock unless and only to the
extent that it converts this Note into Common Stock. The Borrower
shall provide the Holder with prior notification of any meeting of
the Borrower’s shareholders (and copies of proxy materials
and other information sent to shareholders). In the event of any
taking by the Borrower of a record of its shareholders for the
purpose of determining shareholders who are entitled to receive
payment of any dividend or other distribution, any right to
subscribe for, purchase or otherwise acquire (including by way of
merger, consolidation, reclassification or recapitalization) any
share of any class or any other securities or property, or to
receive any other right, or for the purpose of determining
shareholders who are entitled to vote in connection with any Change
in Control or any proposed liquidation, dissolution or winding up
of the Borrower, the Borrower shall mail a notice to the Holder, at
least twenty (20) days prior to the record date specified therein
(or thirty (30) days prior to the consummation of the transaction
or event, whichever is earlier), of the date on which any such
record is to be taken for the purpose of such dividend,
distribution, right or other event, and a brief statement regarding
the amount and character of such dividend, distribution, right or
other event to the extent known at such time. The Borrower shall
make a public announcement of any event requiring notification to
the Holder hereunder substantially simultaneously with the
notification to the Holder in accordance with the terms of this
Section 4.9.

 

4.10 Remedies.
The Borrower acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Holder, by vitiating
the intent and purpose of the transaction contemplated hereby.
Accordingly, the Borrower acknowledges that the remedy at law for a
breach of its obligations under this Note will be inadequate and
agrees, in the event of a breach or threatened breach by the
Borrower of the provisions of this Note, that the Holder shall be
entitled, in addition to all other available remedies at law or in
equity, and in addition to the penalties assessable herein, to an
injunction or injunctions restraining, preventing or curing any
breach of this Note and to enforce specifically the terms and
provisions thereof, without the necessity of showing economic loss
and without any bond or other security being required.

 

4.11 Construction;
Headings. This Note shall be deemed to be jointly drafted by
the Company and all the Holder and shall not be construed against
any person as the drafter hereof. The headings of this Note are for
convenience of reference and shall not form part of, or affect the
interpretation of, this Note.

 

4.12 Usury.
To the extent it may lawfully do so, the Company hereby agrees not
to insist upon or plead or in any manner whatsoever claim, and will
resist any and all efforts to be compelled to take the benefit or
advantage of, usury laws wherever enacted, now or at any time
hereafter in force, in connection with any action or proceeding
that may be brought by the Holder in order to enforce any right or
remedy under this Note. Notwithstanding any provision to the
contrary contained in this Note, it is expressly agreed and
provided that the total liability of the Company under this Note
for payments which under the applicable law are in the nature of
interest shall not exceed the maximum lawful rate authorized under
applicable law (the “Maximum Rate”), and, without
limiting the foregoing, in no event shall any rate of interest or
default interest, or both of them, when aggregated with any other
sums which under the applicable law in the nature of interest that
the Company may be obligated to pay under this Note exceed such
Maximum Rate. It is agreed that if the maximum contract rate of
interest allowed by applicable law and applicable to this Note is
increased or decreased by statute or any official governmental
action subsequent to the Issue Date, the new maximum contract rate
of interest allowed by law will be the Maximum Rate applicable to
this Note from the effective date thereof forward, unless such
application is precluded by applicable law. If under any
circumstances whatsoever, interest in excess of the Maximum Rate is
paid by the Company to the Holder with respect to indebtedness
evidenced by this the Note, such excess shall be applied by the
Holder to the unpaid principal balance of any such indebtedness or
be refunded to the Company, the manner of handling such excess to
be at the Holder’s election.

 

 

39

 

 

4.13 Severability.
In the event that any provision of this Note is invalid or
unenforceable under any applicable statute or rule of law
(including any judicial ruling), then such provision shall be
deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of
law. Any such provision which may prove invalid or unenforceable
under any law shall not affect the validity or enforceability of
any other provision of this Note.

 

4.14 Terms
of Future Financings. So long as this Note is outstanding,
upon any issuance by the Borrower or any of its subsidiaries of any
new security, with any term that the Holder reasonably believes is
more favorable to the holder of such security or with a term in
favor of the holder of such security that the Holder reasonably
believes was not similarly provided to the Holder in this Note,
then (i) the Borrower shall notify the Holder of such additional or
more favorable term within five (5) business day of the issuance
and/or amendment (as applicable) of the respective security, and
(ii) such term, at Holder’s option, shall become a part of
the transaction documents with the Holder (regardless of whether
the Borrower complied with the notification provision of this
Section 4.14). The types of terms contained in another security
that may be more favorable to the holder of such security include,
but are not limited to, terms addressing conversion discounts,
prepayment rate, conversion lookback periods, interest rates, and
original issue discounts. If Holder elects to have the term become
a part of the transaction documents with the Holder, then the
Borrower shall immediately deliver acknowledgment of such
adjustment in form and substance reasonably satisfactory to the
Holder (the “Acknowledgment”) within one (1) business
day of Borrower’s receipt of request from Holder (the
“Adjustment Deadline”), provided that Borrower’s
failure to timely provide the Acknowledgement shall not affect the
automatic amendments contemplated hereby. For avoidance of any
doubt, the foregoing of this Section 4.14 shall not apply to any
financings by the Company made under its existing Regulation A and
S-1 offerings. Nor shall this section apply to any adjustments made
to any of the Borrower’s securities issued prior to the date
hereof.

 

4.15 Dispute
Resolution. In the case of a dispute as to the determination
of the Conversion Price, Conversion Amount, any prepayment amount
or Default Amount, Issue, Closing or Maturity Date, the closing bid
price, or fair market value (as the case may be) or the arithmetic
calculation of the Conversion Price or the applicable prepayment
amount(s) (as the case may be), the Borrower or the Holder shall
submit the disputed determinations or arithmetic calculations via
facsimile (i) within one (1) Trading Day after receipt of the
applicable notice giving rise to such dispute to the Borrower or
the Holder or (ii) if no notice gave rise to such dispute, at any
time after the Holder learned of the circumstances giving rise to
such dispute. If the Holder and the Borrower are unable to agree
upon such determination or calculation within five (5) Trading Days
of such disputed determination or arithmetic calculation (as the
case may be) being submitted to the Borrower or the Holder, then
the Borrower shall, within three (3) Trading Day, submit (a) the
disputed determination of the Conversion Price, the closing bid
price, the or fair market value (as the case may be) to an
independent, reputable investment bank selected by the Borrower and
approved by the Holder or (b) the disputed arithmetic calculation
of the Conversion Price, Conversion Amount, any prepayment amount
or Default Amount, to an independent, outside accountant selected
by the Holder that is reasonably acceptable to the Borrower. The
Borrower shall cause at its expense the investment bank or the
accountant to perform the determinations or calculations and notify
the Borrower and the Holder of the results no later than one (1)
Trading Day from the time it receives such disputed determinations
or calculations. Such investment bank’s or accountant’s
determination or calculation shall be binding upon all parties
absent demonstrable error.

 

 

 

[SIGNATURE PAGE
FOLLOWS]

 

 

40

 

 

IN WITNESS WHEREOF, Borrower has caused
this Note to be signed in its name by its duly authorized officer
on December 28, 2020.

 

 

TEGO
CYBER INC.

 

 

	

By:
/s/ Shannon Wilkinson
               
 

	

Name:
Shannon Wilkinson

	

Title:
Chief Executive Officer

 

 

 

 

 

 

 

 

41

 

 

EXHIBIT
A -- NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert
$                                                                                            principal
amount of the Note (defined below) into that number of shares of
Common Stock to be issued pursuant to the conversion of the Note
(“Common Stock”) as set forth below, of TEGO CYBER INC., a Nevada corporation
(the “Borrower”), according to the conditions of the
Convertible Promissory Note of the Borrower dated as of December
23, 2020 (the “Note”), as of the date written below. No
fee will be charged to the Holder for any conversion, except for
transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	

☐

	

The
Borrower shall electronically transmit the Common Stock issuable
pursuant to this Notice of Conversion to the account of the
undersigned or its nominee with DTC through its Deposit Withdrawal
Agent Commission system (“DWAC Transfer”).

	
 

	

Name of
DTC Prime Broker:

	
 

	

Account
Number:

 

	

☐

	

The
undersigned hereby requests that the Borrower issue a certificate
or certificates for the number of shares of Common Stock set forth
below (which numbers are based on the Holder’s calculation
attached hereto) in the name(s) specified immediately below or, if
additional space is necessary, on an attachment
hereto:

	
 

	

FIRSTFIRE
GLOBAL OPPORTUNITIES FUND LLC

1040
First Avenue, Suite 190 New York, NY 10022

Attn:
Eli Fireman

e-mail:
eli@firstfirecapital.com

 

 

	

Date of
Conversion:

	

 

Applicable
Conversion Price: $

	

 

Costs
Incurred by the Undersigned to Convert the Note into Shares of
Common Stock:

	

 

Number
of Shares of Common Stock to be Issued Pursuant to Conversion of
the Note:

	

 

Amount
of Principal Balance Due remaining Under the Note after this
conversion:

 

 

 

	

By:

	

Name:

	

Title:

	

Date:

 

 

 

 

-1-

 

 

 

EXHIBIT
B

 

FORM
OF WARRANT

 

 

 

 

 

 

 

 

 

 

-2-

 

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS
EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY
A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT TEGO CYBER INC.

 

Warrant Shares:
1,100,000                                                                                      

Issuance Date:
December 28, 2020

 

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that,
for value received, FIRSTFIRE
GLOBAL OPPORTUNITIES FUND LLC, a Delaware limited liability
company, or its registered assigns (the “Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date
hereof (the “Initial
Exercise Date”) and on or prior to the close of
business on the second anniversary of the Issuance Date (the
“Termination
Date”) but not thereafter, to subscribe for and
purchase from TEGO CYBER
INC, a Nevada corporation (the “Company”), up to
1,100,000 shares (as subject to adjustment hereunder, the
“Warrant
Shares”) of Common Stock. The purchase price of one
share of Common Stock under this Warrant shall be equal to the
Exercise Price, as defined in Section 2(b).

 

Section 1. Definitions. Capitalized terms
used and not otherwise defined herein shall have the meanings set
forth in that certain Securities Purchase Agreement (the
“Purchase
Agreement”), dated December 28, 2020, among the
Company and the Holder and the note issued to the Holder
contemporaneously with this Warrant (the “Note”). This Warrant is
subject to cancellation as set forth in the Purchase
Agreement.

 

 

Section
2.    

Exercise.

a) Exercise of the
purchase rights represented by this Warrant may be made, in whole
or in part, at any time or times on or after the Initial Exercise
Date and on or before the

 

-3-

 

 

Termination Date by
delivery to the Company (or such other office or agency of the
Company as it may designate by notice in writing to the registered
Holder at the address of the Holder appearing on the books of the
Company) of a duly executed facsimile copy of the Notice of
Exercise Form annexed hereto. Within three (3) Trading Days
following the date of exercise as aforesaid, the Holder shall
deliver the aggregate Exercise Price for the shares specified in
the applicable Notice of Exercise by wire transfer or
cashier’s check drawn on a United States bank unless the
cashless exercise procedure specified in Section 2(c) below is
specified in the applicable Notice of Exercise. Notwithstanding
anything herein to the contrary (although the Holder may surrender
the Warrant to, and receive a replacement Warrant from, the
Company), the Holder shall not be required to physically surrender
this Warrant to the Company until the Holder has purchased all of
the Warrant Shares available hereunder and the Warrant has been
exercised in full, in which case, the Holder shall surrender this
Warrant to the Company for cancellation within three (3) Trading
Days of the date the final Notice of Exercise is delivered to the
Company. Partial exercises of this Warrant resulting in purchases
of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number
of Warrant Shares purchasable hereunder in an amount equal to the
applicable number of Warrant Shares purchased. The Holder and the
Company shall maintain records showing the number of Warrant Shares
purchased and the date of such purchases. The Company shall deliver
any objection to any Notice of Exercise Form within three (3)
Trading Days of delivery of such notice. The Holder and any assignee, by acceptance of
this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion
of the Warrant Shares hereunder, the number of Warrant Shares
available for purchase hereunder at any given time may be less than
the amount stated on the face hereof.

 

b) Exercise Price. The exercise
price per share of the Common Stock under this Warrant shall be
$0.25, subject to adjustment as described herein
(“Exercise
Price”).

 

c) Cashless Exercise. In the event
that there is no effective registration statement registering the
Warrant Shares, or no current prospectus available for the resale
of the Warrant Shares by the Holder, then this Warrant may also be
exercised at the Holder’s election, in whole or in part, at
such time by means of a “cashless exercise” in which
the Holder shall be entitled to receive a number of Warrant Shares
equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

 

(A) =
the 30 day VWAP on the Trading Day immediately preceding the date
on which Holder elects to exercise this Warrant by means of a
“cashless exercise,” as set forth in the applicable
Notice of Exercise;

 

(B) =
the Exercise Price of this Warrant, as adjusted hereunder;
and

 

(X) =
the number of Warrant Shares that would be issuable upon exercise
of this Warrant in accordance with the terms of this Warrant if
such exercise were by means of a cash exercise rather than a
cashless exercise.

 

Any
exercise of this Warrant shall be subject to a maximum aggregate
issuance cap of 1,500,000 Common Stock Shares (“Maximum
Aggregate”). In no event and under no circumstance regardless
of any breach, default, dilution protection, price adjustments, or
other provision set forth herein or any other ancillary agreement
between Holder and Company shall this Warrant result in the
issuance of any common stock shares in excess of the Maximum
Aggregate.

 

-4-

 

 

d)

Mechanics of
Exercise.

 

i. Delivery of Certificates Upon
Exercise. Certificates for shares purchased hereunder shall
be transmitted by the Transfer Agent to the Holder by crediting the
account of the Holder’s prime broker with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system
(“DWAC”) if the Company is
then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder or
(B) this Warrant is being exercised via cashless exercise and Rule
144 is available, and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise by the date that
is five (5) Trading Days after the latest of (A) the delivery to
the Company of the Notice of Exercise, (B) surrender of this
Warrant (if required) and (C) payment of the aggregate Exercise
Price as set forth above (including by cashless exercise, if
permitted) (such date, the “Warrant Share Delivery
Date”). The Warrant Shares shall be deemed to have
been issued, and Holder or any other person so designated to be
named therein shall be deemed to have become a holder of record of
such shares for all purposes, as of the date the Warrant has been
exercised, with payment to the Company of the Exercise Price (or by
cashless exercise, if permitted) and all taxes required to be paid
by the Holder, if any, pursuant to Section 2(d)(vi) prior to the
issuance of such shares, having been paid. The Company understands
that a delay in the delivery of the Warrant Shares after the
Warrant Share Delivery Date could result in economic loss to the
Holder. As compensation to the Holder for such loss, the Company
agrees to pay (as liquidated damages and not as a penalty) to the
Holder for late issuance of Warrant Shares upon exercise of this
Warrant the proportionate amount of $100 per Trading Day. The
Company shall pay any payments incurred under this Section in
immediately available funds upon demand. Furthermore, in addition
to any other remedies which may be available to the Holder, in the
event that the Company fails for any reason to effect delivery of
the Warrant Shares by the Warrant Share Delivery Date, the Holder
may revoke all or part of the relevant Warrant exercise by delivery
of a notice to such effect to the Company, whereupon the Company
and the Holder shall each be restored to their respective positions
immediately prior to the exercise of the relevant portion of this
Warrant, except that the liquidated damages described above shall
be payable through the date notice of revocation or rescission is
given to the Company.

 

ii. Delivery of New Warrants Upon
Exercise. If this Warrant shall have been exercised in part,
the Company shall, at the request of a Holder and upon surrender of
this Warrant certificate, at the time of delivery of the
certificate or certificates representing Warrant Shares, deliver to
the Holder a new Warrant evidencing the rights of the Holder to
purchase the unpurchased Warrant Shares called for by this Warrant,
which new Warrant shall in all other respects be identical with
this Warrant.

 

 

iii. Rescission
Rights. If the Company fails to cause the Transfer Agent to
transmit to the Holder a certificate or the certificates
representing the Warrant Shares pursuant to Section 2(d)(i) by the
Warrant Share Delivery Date, then the Holder will have the right,
at any time prior to issuance of such Warrant Shares, to rescind
such exercise.

 

 

iv. Compensation for Buy-In on Failure to
Timely Deliver Certificates Upon Exercise. In addition to
any other rights available to the Holder, if the Company fails to
cause the Transfer Agent to transmit to the Holder a certificate or
the certificates representing the Warrant Shares pursuant to an
exercise on or before the Warrant Share Delivery Date, and if after
such date the Holder

 

-5-

 

 

is
required by its broker to purchase (in an open market transaction
or otherwise) or the Holder’s brokerage firm otherwise
purchases, shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “Buy-In”), then the
Company shall (A) pay in cash to the Holder the amount, if any, by
which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so
purchased exceeds (y) the amount obtained by multiplying (1) the
number of Warrant Shares that the Company was required to deliver
to the Holder in connection with the exercise at issue times (2)
the price at which the sell order giving rise to such purchase
obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number
of Warrant Shares for which such exercise was not honored (in which
case such exercise shall be deemed rescinded) or deliver to the
Holder the number of shares of Common Stock that would have been
issued had the Company timely complied with its exercise and
delivery obligations hereunder. For example, if the Holder
purchases Common Stock having a total purchase price of $11,000.00
to cover a Buy- In with respect to an attempted exercise of shares
of Common Stock with an aggregate sale price giving rise to such
purchase obligation of $10,000.00, under clause (A) of the
immediately preceding sentence the Company shall be required to pay
the Holder $1,000.00. The Holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of
the Buy-In and, upon request of the Company, evidence of the amount
of such loss. Nothing herein shall limit a Holder’s right to
pursue any other remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing
shares of Common Stock upon exercise of the Warrant as required
pursuant to the terms hereof.

 

v. No Fractional Shares or Scrip.
No fractional shares or scrip representing fractional shares shall
be issued upon the exercise of this Warrant. As to any fraction of
a share which the Holder would otherwise be entitled to purchase
upon such exercise, the Company shall, at its election, either pay
a cash adjustment in respect of such final fraction in an amount
equal to such fraction multiplied by the Exercise Price or round up
to the next whole share.

 

vi. Charges, Taxes and Expenses.
Issuance of certificates for Warrant Shares shall be made without
charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate,
all of which taxes and expenses shall be paid by the Company, and
such certificates shall be issued in the name of the Holder or in
such name or names as may be directed by the Holder; provided, however, that in the event
certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for
exercise shall be accompanied by the Assignment Form attached
hereto duly executed by the Holder and the Company may require, as
a condition thereto, the payment of a sum sufficient to reimburse
it for any transfer tax incidental thereto. The Company shall pay
all Transfer Agent fees required for same-day processing of any
Notice of Exercise.

 

vii. Closing
of Books. The Company will not close its stockholder books
or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

e) Holder’s Exercise
Limitations. From and after the date that the Conversion
Shares are of a class of equity of the borrower registered under
Section 12(g) of the Exchange Act or the Company is subject to the
reporting requirements of Section 13 or Section 15(d) of the
Exchange Act, the Company shall not effect any exercise of this
Warrant, and a Holder shall not have the right to exercise any
portion of this Warrant, pursuant to Section 2 or otherwise, to the
extent that after giving

 

-6-

 

 

effect to such
issuance after exercise as set forth on the applicable Notice of
Exercise, the Holder (together with the Holder’s Affiliates,
and any other Persons acting as a group together with the Holder or
any of the Holder’s Affiliates), would beneficially own in
excess of the Beneficial Ownership Limitation (as defined below).
For purposes of the foregoing sentence, the number of shares of
Common Stock beneficially owned by the Holder and its Affiliates
shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which such determination
is being made, but shall exclude the number of shares of Common
Stock which would be issuable upon (i) exercise of the remaining,
nonexercised portion of this Warrant beneficially owned by the
Holder or any of its Affiliates and (ii) exercise or conversion of
the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Common Stock
Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by
the Holder or any of its Affiliates. Except as set forth in the
preceding sentence, for purposes of this Section 2(e), beneficial
ownership shall be calculated in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is
not representing to the Holder that such calculation is in
compliance with Section 13(d) of the Exchange Act and the Holder is
solely responsible for any schedules required to be filed in
accordance therewith. To the extent that the limitation contained
in this Section 2(e) applies, the determination of whether this
Warrant is exercisable (in relation to other securities owned by
the Holder together with any Affiliates) and of which portion of
this Warrant is exercisable shall be in the sole discretion of the
Holder, and the submission of a Notice of Exercise shall be deemed
to be the Holder’s determination of whether this Warrant is
exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant
is exercisable, in each case subject to the Beneficial Ownership
Limitation, and the Company shall have no obligation to verify or
confirm the accuracy of such determination. In addition, a
determination as to any group status as contemplated above shall be
determined in accordance with Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder. For purposes of
this Section 2(e), in determining the number of outstanding shares
of Common Stock, a Holder may rely on the number of outstanding
shares of Common Stock as reflected in (A) the Company’s most
recent periodic or annual report filed with the Commission, as the
case may be, (B) a more recent public announcement by the Company
or (C) a more recent written notice by the Company or the Transfer
Agent setting forth the number of shares of Common Stock
outstanding. Upon the written or oral request of a Holder, the
Company shall within two Trading Days confirm orally and in writing
to the Holder the number of shares of Common Stock then
outstanding. In any case, the number of outstanding shares of
Common Stock shall be determined after giving effect to the
conversion or exercise of securities of the Company, including this
Warrant, by the Holder or its Affiliates since the date as of which
such number of outstanding shares of Common Stock was reported. The
“Beneficial
Ownership Limitation” shall be 4.99% of the number of
shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon
exercise of this Warrant. The Holder may decrease the Beneficial
Ownership Limitation at any time and the Holder, upon not less than
sixty-one (61) days’ prior
notice to the Company, may increase the Beneficial Ownership
Limitation provisions of this Section 2(e), provided that the
Beneficial Ownership Limitation in no event exceeds 9.99% of the
number of shares of the Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock upon
exercise of this Warrant held by the Holder and the provisions of
this Section 2(e) shall continue to apply. Any such increase will
not be effective until the 61st day after such notice is delivered
to the Company. The provisions of this paragraph shall be construed
and implemented in a manner otherwise than in strict conformity
with the terms of this Section 2(e) to correct this paragraph (or
any portion hereof) which may be defective or inconsistent with the
intended

 

 

-7-

 

 

Beneficial
Ownership Limitation herein contained or to make changes or
supplements necessary or desirable to properly give effect to such
limitation. The limitations contained in this paragraph shall apply
to a successor holder of this Warrant.

 

f) Piggyback Registration Rights.
If at any time while this Warrant is outstanding, the Company
determines to file a registration statement under the 1933 Act to
register the offer and sale, by the Company, of Common Stock (other
than (i) on Form S-4 or Form S-8 under the 1933 Act or any
successor forms thereto, (ii) an at-the-market offering, or (iii) a
registration of securities solely relating to an offering and sale
to employees or directors of the Company pursuant to any employee
stock plan or other employee benefit plan arrangement), the Company
shall, as soon as reasonably practicable, give written notice to
the Holder of its intention to so register the common stock
underlying the warrants and, upon the written request, given within
five (5) business days after delivery of any such notice by the
Company, of the Holder to include in such registration the Warrant
Shares (which request shall specify the number of warrant shares to
be included in such registration), the Company shall cause all such
shares to be included in such registration statement.

 

Section
3.        

Certain
Adjustments.

 

 

a) Stock Dividends and Splits. If
the Company, at any time while this Warrant is outstanding: (i)
pays a stock dividend or otherwise makes a distribution or
distributions on shares of its Common Stock or any other equity or
equity equivalent securities payable in shares of Common Stock
(which, for avoidance of doubt, shall not include any shares of
Common Stock issued by the Company upon exercise of this Warrant or
pursuant to any of the other Transaction Documents), (ii)
subdivides outstanding shares of Common Stock into a larger number
of shares, (iii) combines (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares,
or (iv) issues by reclassification of shares of the Common Stock
any shares of capital stock of the Company, then in each case the
Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of
Common Stock outstanding immediately after such event, and the
number of shares issuable upon exercise of this Warrant shall be
proportionately adjusted such that the aggregate Exercise Price of
this Warrant shall remain unchanged. Any adjustment made pursuant
to this Section 3(a) shall become effective immediately after the
record date for the determination of stockholders entitled to
receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision,
combination or re-classification.

 

b) Adjustment Upon Issuance of Certain
Securities. If and whenever on or after the date hereof, so
long as any amounts remains outstanding under the Note, the Company
issues or sells, or in accordance with this Section 3 is deemed to
have issued or sold, any warrant with a warrant exercise price (the
“New Issuance
Price”) less than a price equal to the Exercise Price
in effect immediately prior to such issue or sale or deemed
issuance or sale (such Exercise Price then in effect is referred to
as the “Applicable
Price”) (the foregoing a “Dilutive Issuance”), then
immediately after such Dilutive Issuance, the Exercise Price then
in effect shall be reduced to the New Issuance Price. This
adjustment shall not apply to any price adjustments of securities
existing prior to the date hereof, nor to any securities offered by
the Company under its existing Regulation A or S-1 registration
statement. For all purposes of the foregoing (including, without
limitation, determining the adjusted

 

-8-

 

 

Exercise Price and
consideration per share under this Section 3(b)), the following
shall be applicable.

 

c)
Voluntary
Reduction. The Company may unilaterally reduce the Exercise
Price at any time.

 

d) Calculations. All calculations
under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of
this Section 3, the number of shares of Common Stock deemed to be
issued and outstanding as of a given date shall be the sum of the
number of shares of Common Stock (excluding treasury shares, if
any) issued and outstanding.

 

e) Notice to Holder.

 

 

i. Adjustment to Exercise Price.
Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 3, the Company shall promptly mail to the Holder a
notice setting forth the Exercise Price after such adjustment and
any resulting adjustment to the number of Warrant Shares and
setting forth a brief statement of the facts requiring such
adjustment.

 

ii. Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any
other distribution in whatever form) on the Common Stock, (B) the
Company shall declare a special nonrecurring cash dividend on or a
redemption of the Common Stock, (C) the Company shall authorize the
granting to all holders of the Common Stock rights or warrants to
subscribe for or purchase any shares of capital stock of any class
or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification
of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially
all of the assets of the Company, or any compulsory share exchange
whereby the Common Stock is converted into other securities, or (E)
the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the
Company, then, in each case, to the extent that such information
constitutes material non-public information (as determined in good
faith by the Company) the Company shall follow the procedure
described the Securities Purchase Agreement and shall deliver to
the Holder at its last address as it shall appear upon the Warrant
Register of the Company, at least twenty (20) calendar days prior
to the applicable record or effective date hereinafter specified, a
notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which
the holders of the Common Stock of record to be entitled to such
dividend, distributions, redemption, rights or warrants are to be
determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected
to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be
entitled to exchange their shares of the Common Stock for
securities, cash or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer or share
exchange; provided that the failure to mail such notice or any
defect therein or in the mailing thereof shall not affect the
validity of the corporate action required to be specified in such
notice. To the extent that any notice provided hereunder
constitutes, or contains, material, non-public information
regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a
Current Report on Form 8-K. The Holder shall remain entitled to
exercise this Warrant during the period commencing on the date of
such notice to the effective date of the event triggering such
notice except as may otherwise be expressly set forth
herein.

 

-9-

 

 

Section
4.      

Transfer of
Warrant.

 

a) Transferability. Subject to
compliance with any applicable securities laws and the provisions
of the Purchase Agreement, this Warrant and all rights hereunder
(including, without limitation, any registration rights) are
transferable, in whole or in part, upon surrender of this Warrant
at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in
the form attached hereto duly executed by the Holder or its agent
or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if
required, such payment, the Company shall execute and deliver a new
Warrant or Warrants in the name of the assignee or assignees, as
applicable, and in the denomination or denominations specified in
such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned,
and this Warrant shall promptly be cancelled. The Warrant, if
properly assigned in accordance herewith, may be exercised by a new
holder for the purchase of Warrant Shares without having a new
Warrant issued.

 

b) New Warrants. Subject to
compliance with all applicable securities laws, this Warrant may be
divided or combined with other Warrants upon presentation hereof at
the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to
be issued, signed by the Holder or its agent or attorney. Subject
to compliance with Section 4(a), as to any transfer which may be
involved in such division or combination, the Company shall execute
and deliver a new Warrant or Warrants in exchange for the Warrant
or Warrants to be divided or combined in accordance with such
notice. All Warrants issued on transfers or exchanges shall be
dated the initial issuance date of this Warrant and shall be
identical with this Warrant except as to the number of Warrant
Shares issuable pursuant thereto.

 

c) Warrant Register. The Company
shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”), in
the name of the record Holder hereof from time to time. The Company
may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent
actual notice to the contrary.

 

 

Section
5.          

Miscellaneous.

 

a) No Rights as Stockholder Until
Exercise. This Warrant does not entitle the Holder to any
voting rights, dividends or other rights as a stockholder of the
Company prior to the exercise hereof as set forth in Section
2(d)(i).

 

 

b) Loss, Theft, Destruction or Mutilation
of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss,
theft or destruction, of indemnity or security reasonably
satisfactory to it (which shall not include the posting of any
bond), and upon surrender and cancellation of such Warrant or stock
certificate, if mutilated, the Company will make and deliver a new
Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock
certificate.

 

c)   
Saturdays, Sundays,
Holidays, etc. If the last or appointed day for the taking
of

 

-10-

 

 

any
action or the expiration of any right required or granted herein
shall not be a Trading Day, then, such action may be taken or such
right may be exercised on the next succeeding Trading
Day.

 

d) Authorized Shares. The Company
covenants that, during the period the Warrant is outstanding, it
will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of the
Warrant Shares upon the exercise of any purchase rights under this
Warrant. The Company further covenants that its issuance of this
Warrant shall constitute full authority to its officers who are
charged with the duty of executing stock certificates to execute
and issue the necessary certificates for the Warrant Shares upon
the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure
that such Warrant Shares may be issued as provided herein without
violation of any applicable law or regulation, or of any
requirements of the Trading Market upon which the Common Stock may
be listed. The Company covenants that all Warrant Shares which may
be issued upon the exercise of the purchase rights represented by
this Warrant will, upon exercise of the purchase rights represented
by this Warrant and payment for such Warrant Shares in accordance
herewith, be duly authorized, validly issued, fully paid and
non-assessable and free from all taxes, liens and charges created
by the Company in respect of the issue thereof (other than taxes in
respect of any transfer occurring contemporaneously with such
issue). Except and to the extent as waived or consented to by the
Holder, the Company shall not by any action, including, without
limitation, amending its certificate of incorporation or through
any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith
assist in the carrying out of all such terms and in the taking of
all such actions as may be necessary or appropriate to protect the
rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will
(i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to
such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares upon the
exercise of this Warrant and (iii) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may
be, necessary to enable the Company to perform its obligations
under this Warrant. Before taking any action which would result in
an adjustment in the number of Warrant Shares for which this
Warrant is exercisable or in the Exercise Price, the Company shall
obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or
bodies having jurisdiction thereof.

 

e) Jurisdiction. All questions
concerning governing law, jurisdiction, venue and the construction,
validity, enforcement and interpretation of this Warrant shall be
determined in accordance with the provisions of the Purchase
Agreement.

 

f) Restrictions. The Holder
acknowledges that the Warrant Shares acquired upon the exercise of
this Warrant, if not registered, or unless exercised in a cashless
exercise when Rule 144 is available, and the Holder does not
utilize cashless exercise, will have restrictions upon resale
imposed by state and federal securities laws.

 

g) Non-waiver and Expenses. No
course of dealing or any delay or failure to exercise any right
hereunder on the part of Holder shall operate as a waiver of such
right or otherwise prejudice the Holder’s rights, powers or
remedies. Without limiting any other provision of this
Warrant

 

-11-

 

 

or the
Purchase Agreement, if the Company willfully and knowingly fails to
comply with any provision of this Warrant, which results in any
material damages to the Holder, the Company shall pay to the Holder
such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by the Holder in
collecting any amounts due pursuant hereto or in otherwise
enforcing any of its rights, powers or remedies
hereunder.

 

h) Notices. Any notice, request or
other document required or permitted to be given or delivered to
the Holder by the Company shall be delivered in accordance with the
notice provisions of the Purchase Agreement.

 

i) Limitation of Liability. No
provision hereof, in the absence of any affirmative action by the
Holder to exercise this Warrant to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of the Holder, shall
give rise to any liability of the Holder for the purchase price of
any Common Stock or as a stockholder of the Company, whether such
liability is asserted by the Company or by creditors of the
Company.

 

j) Remedies. The Holder, in
addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific
performance of its rights under this Warrant.

 

k) Successors and Assigns. Subject
to applicable securities laws, this Warrant and the rights and
obligations evidenced hereby shall inure to the benefit of and be
binding upon the successors and permitted assigns of the Company
and the successors and permitted assigns of Holder. The provisions
of this Warrant are intended to be for the benefit of any Holder
from time to time of this Warrant and shall be enforceable by the
Holder or holder of Warrant Shares.

 

l) Amendment. This Warrant may be
modified or amended or the provisions hereof waived with the
written consent of the Company and the Holders of not less than a
majority of the outstanding Warrants issued pursuant to the
Purchase Agreement.

 

m) Severability. Wherever
possible, each provision of this Warrant shall be interpreted in
such manner as to be effective and valid under applicable law, but
if any provision of this Warrant shall be prohibited by or invalid
under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this
Warrant.

 

 

n) Headings. The headings used in
this Warrant are for the convenience of reference only and shall
not, for any purpose, be deemed a part of this
Warrant.

 

 

********************

(Signature Page Follows)

 

 

 

-12-

 

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized as of the date first above
indicated.

 

 

 

 

TEGO
CYBER, INC

 

 

 

 

By: /s/ Shannon
Wilkinson      

Name: Shannon
Wilkinson

Title:
Chief Executive Officer

 

 

 

 

 

 

 

 

-13-

 

 

NOTICE
OF EXERCISE

 

 

 

TO:              

TEGO CYBER,
INC:

 

(1)
The undersigned
hereby elects to purchase_____________Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

 

(2) Payment shall
take the form of (check applicable box): [ ] in lawful money of the
United

States;

 

[
]

[if
permitted] the cancellation of such number of Warrant Shares as is
necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number
of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c); or

 

 

[
]

by cancelling
$  of the amount due on the Note issued by the Company to the
undersigned.

 

(3) Please issue a
certificate or certificates representing said Warrant Shares in the
name of the undersigned or in such other name as is specified
below:

 

(4) After giving effect
to this Notice of Exercise, the undersigned will not have exceeded
the Beneficial Ownership Limitation.

 

The
Warrant Shares shall be delivered to the following DWAC Account
Number or by physical delivery of a certificate to:

 

 

_______________________________________  

 

_______________________________________  

 

_______________________________________ 

 

 

 

 

[SIGNATURE OF
HOLDER FOLLOWS]

 

 

 

 

Name of
Investing Entity:

 

 

 

 

    
_______________________________________

Signature of Authorized Signatory of Investing
Entity:

 

 

 

 

 

 
  _______________________________________

Name:

Title:
Date:

 

 

 

 

 

 

 

 

 

 

 

ASSIGNMENT
FORM

 

 

(To
assign the foregoing warrant, execute this form and supply required
information. Do not use this form to exercise the
warrant.)

TEGO
CYBER, INC.

 

 

FOR
VALUE RECEIVED, [____________] all of or [____________]
shares of the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

 

_______________________________________

 whose address
is

 

______________________________________________________________________________
.

 

 

Dated:________________________________________________________________________

, 
________

 

	
 Holder’s
Signature:

	
 _______________________________________

	
 

	
 

	
 

	
 _______________________________________

	
 

	
 

	
 

	
 _______________________________________

	
 

	
 

	
 Holder’s
Address:

	
 _______________________________________

	
 

	
 

	
 

	
 _______________________________________

	
 

	
 

	
 

	
 _______________________________________

 

 

Signature
Guaranteed: _______________________________________

 

 

NOTE:
The signature to this Assignment Form must correspond with the name
as it appears on the face of the Warrant, without alteration or
enlargement or any change whatsoever, and must be guaranteed by a
bank or trust company. Officers of corporations and those acting in
a fiduciary or other representative capacity should file proper
evidence of authority to assign the foregoing Warrant.Exhibit 10.15

 

 

 

 

 

 

 

 

 

 

 

 

OFFICE
LEASE

 

425
MKT REIT, LLC (LANDLORD)

 

AND

 

METROMILE,
INC. (TENANT)

 

425
MARKET STREET

San
Francisco, California

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	Article One BASIC LEASE PROVISIONS	1
	1.01	BASIC
    LEASE PROVISIONS	1
	1.02	ENUMERATION
    OF EXHIBITS & RIDER(S)	3
	1.03	DEFINITIONS	3
	 	 	 
	Article Two PREMISES, TERM AND FAILURE TO GIVE POSSESSION	9
	2.01	LEASE
    OF PREMISES	9
	2.02	TERM	9
	2.03	FAILURE
    TO GIVE POSSESSION	9
	2.04	AREA
    OF PREMISES	9
	2.05	CONDITION
    OF PREMISES	9
	 	 	 
	Article Three RENT	10
	 	 
	Article Four RENT ADJUSTMENTS AND PAYMENTS	10
	4.01	RENT
    ADJUSTMENTS	10
	4.02	STATEMENT
    OF LANDLORD	10
	4.03	BOOKS
    AND RECORDS	11
	4.04	PARTIAL
    OCCUPANCY; COST POOLS	12
	4.05	TENANT
    OR LEASE SPECIFIC TAXES	12
	 	 	 
	Article Five SECURITY DEPOSIT	13
	 	 
	Article Six SERVICES	14
	6.01	LANDLORD’S
    GENERAL SERVICES	14
	6.02	ELECTRICAL
    SERVICES	15
	6.03	ADDITIONAL
    AND AFTER-HOUR SERVICES	16
	6.04	TELEPHONE
    SERVICES	16
	6.05	DELAYS
    IN FURNISHING SERVICES	17
	6.06	CHOICE
    OF SERVICE PROVIDER	17
	6.07	SIGNAGE	18
	 	 	 
	Article Seven POSSESSION, USE AND CONDITION OF PREMISES	18
	7.01	POSSESSION
    AND USE OF PREMISES	18
	7.02	LANDLORD
    ACCESS TO PREMISES; APPROVALS	21
	7.03	QUIET
    ENJOYMENT	21
	 	 	 
	Article Eight MAINTENANCE	22
	8.01	LANDLORD’S
    MAINTENANCE	22

 

    -i-

     

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	8.02	TENANT’S
    MAINTENANCE	22
	 	 	 
	Article Nine ALTERATIONS AND IMPROVEMENTS	23
	9.01	TENANT
    ALTERATIONS	23
	9.02	LIENS	24
	 	 	 
	Article Ten ASSIGNMENT AND SUBLETTING	24
	10.01	ASSIGNMENT
    AND SUBLETTING	24
	10.02	RECAPTURE	26
	10.03	EXCESS
    RENT	26
	10.04	TENANT
    LIABILITY	27
	10.05	ASSUMPTION
    AND ATTORNMENT	27
	 	 	 
	Article Eleven DEFAULT AND REMEDIES	27
	11.01	EVENTS
    OF DEFAULT	27
	11.02	LANDLORD’S
    REMEDIES	28
	11.03	ATTORNEY’S
    FEES	31
	11.04	BANKRUPTCY	31
	11.05	LANDLORD’S
    DEFAULT	32
	 	 	 
	Article Twelve SURRENDER OF PREMISES	32
	12.01	IN
    GENERAL	32
	12.02	LANDLORD’S
    RIGHTS	33
	 	 	 
	Article Thirteen HOLDING OVER	33
	 	 
	Article Fourteen DAMAGE BY FIRE OR OTHER CASUALTY	33
	14.01	SUBSTANTIAL
    UNTENANTABILITY	33
	14.02	INSUBSTANTIAL
    UNTENANTABILITY	34
	14.03	RENT
    ABATEMENT	35
	14.04	WAIVER
    OF STATUTORY REMEDIES	35
	 	 	 
	Article Fifteen EMINENT DOMAIN	35
	15.01	TAKING
    OF WHOLE OR SUBSTANTIAL PART	35
	15.02	TAKING
    OF PART	36
	15.03	COMPENSATION	36
	 	 	 
	Article Sixteen INSURANCE	36
	16.01	TENANT’S
    INSURANCE	36
	16.02	FORM
    OF POLICIES	37

 

    -ii-

     

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	16.03	LANDLORD’S
    INSURANCE	37
	16.04	WAIVER
    OF SUBROGATION	37
	16.05	NOTICE
    OF CASUALTY	38
	 	 	 
	Article Seventeen WAIVER OF CLAIMS AND INDEMNITY	39
	17.01	WAIVER
    OF CLAIMS	39
	17.02	INDEMNITY
    BY TENANT	39
	17.03	WAIVER
    OF CONSEQUENTIAL DAMAGES	39
	 	 	 
	Article Eighteen RULES AND REGULATIONS	40
	18.01	RULES	40
	18.02	ENFORCEMENT	40
	 	 	 
	Article Nineteen LANDLORD’S RESERVED RIGHTS	40
	 	 
	Article Twenty ESTOPPEL CERTIFICATE	41
	20.01	IN
    GENERAL	41
	20.02	ENFORCEMENT	41
	 	 	 
	Article Twenty-one INTENTIONALLY OMITTED	41
	 	 
	Article Twenty-two REAL ESTATE BROKERS	41
	 	 
	Article Twenty-three MORTGAGEE PROTECTION	42
	23.01	SUBORDINATION
    AND ATTORNMENT	42
	23.02	MORTGAGEE
    PROTECTION	42
	 	 	 
	Article Twenty-four NOTICES	43
	 	 
	Article Twenty-five OFAC	43
	 	 
	Article Twenty-six MISCELLANEOUS	44
	26.01	LATE
    CHARGES	44
	26.02	NO
    JURY TRIAL; VENUE; JURISDICTION	45
	26.03	DEFAULT
    UNDER OTHER LEASE	45
	26.04	OPTION	45
	26.05	TENANT
    AUTHORITY	45
	26.06	ENTIRE
    AGREEMENT	45
	26.07	MODIFICATION
    OF LEASE FOR BENEFIT OF MORTGAGEE	46
	26.08	EXCULPATION	46
	26.09	ACCORD
    AND SATISFACTION	46
	26.10	LANDLORD’S
    OBLIGATIONS ON SALE OF BUILDING	46

 

    -iii-

     

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	26.11	BINDING
    EFFECT	46
	26.12	CAPTIONS	46
	26.13	TIME;
    APPLICABLE LAW; CONSTRUCTION	47
	26.14	ABANDONMENT	47
	26.15	LANDLORD’S
    RIGHT TO PERFORM TENANT’S DUTIES	47
	26.16	SECURITY
    SYSTEM	47
	26.17	NO
    LIGHT, AIR OR VIEW EASEMENTS	47
	26.18	RECORDATION	48
	26.19	SURVIVAL	48
	26.20	EXHIBITS
    OR RIDERS	48
	26.21	ELECTRICAL
    USAGE INFORMATION	48
	26.22	DISCLOSURE
    REGARDING CERTIFIED ACCESS SPECIALIST	48
	 	 	 
	Article Twenty-seven HAZARDOUS SUBSTANCES DISCLOSURE	49

 

    -iv-

     

    

 

OFFICE
LEASE

 

Article
One

BASIC LEASE PROVISIONS

 

1.01 BASIC
LEASE PROVISIONS - In the event of any conflict between these Basic Lease Provisions and any other Lease provision, such
other Lease provision shall control.

 

		(1)	PROJECT
AND ADDRESS:

425
Market Street

San
Francisco, California 94105

 

		(2)	LANDLORD
AND ADDRESS:

425
MKT REIT, LLC,

a
Delaware limited liability company

 

Notices
to Landlord shall be addressed:

 

425
MKT REIT, LLC

do
Cushman & Wakefield of California, Inc. Suite 955

425
Market Street

San
Francisco, California 94105

 

with
copies to the following:

 

425
MKT REIT, LLC

c/o
MetLife Real Estate

425
Market Street, Suite 1050

San
Francisco, CA 94105

Attention:
Assistant Vice President

 

and

 

425
MKT REIT, LLC

do
MetLife Real Estate

425
Market Street, Suite 1050

San
Francisco, CA 94105

Attention:
Associate General Counsel

 

		(3)	TENANT
AND CURRENT ADDRESS:

 

		(a)	Name  Metromile, Inc.

 

		(b)	State of [incorporation] or [partnership]: a Delaware corporation

 

    1

     

    

 

		(c)	Tax Identification Number: ***

 

Tenant shall notify Landlord of
any change in the foregoing.

 

Notices to Tenant shall be addressed:

  

	 	Prior to Commencement Date:	 	On & After Commencement Date:
	 	 	 	 
	 	690 Folsom Street, Suite 200	 	To Tenant at Address of Premises.
	 	San Francisco, California 94107	 	 
	 	Attention: Jason Altieri, General Counsel	 	 

 

		(4)	DATE OF LEASE: as of, 2019

 

		(5)	LEASE TERM: One hundred twenty-four (124). full calendar months commencing on the Commencement
Date.

 

		(6)	PROJECTED COMMENCEMENT DATE: December 1, 2019.

 

		(7)	PROJECTED EXPIRATION DATE. One hundred twenty-four (124) full calendar months after the Commencement
Date

 

		(8)	MONTHLY BASE RENT:

 

	Period from/to	 	Monthly	 
	Month 1 — Month 12	 	 	$174,`426.67	 
	Month 13 — Month 24	 	$	179,659.47	 
	Month 25 — Month 36	 	$	185,049.25	 
	Month 37 — Month 48	 	$	190,600.73	 
	Month 49 — Month 60	 	$	196,318.75	 
	Month 61 — Month 72	 	$	202,208.31	 
	Month 73 — Month 84	 	$	208,274.56	 
	Month 85 — Month 96	 	$	214,522.80	 
	Month 97 — Month 108	 	$	220,958.48	 
	Month 109 — Month 120	 	$	227,587.24	 
	Month 121 — Month 124	 	$	234,414.85	 

 

		*	Notwithstanding
anything in the foregoing to the contrary, provided that a monetary Default (as defined in Section 11.01) by Tenant has not previously
occurred, Landlord agrees to forbear in the collection of and abate the Monthly Base Rent due and payable for the first four (4)
full calendar months of the Term, totaling not more than Six Hundred Ninety-Seven Thousand Seven Hundred Six and 68/100 Dollars
($697,706.68) in the aggregate (collectively, “Abated Rent”); provided, further, that if Landlord terminates
this Lease as a result of a Default by Tenant at any time during the Term, all previously Abated Rent shall be immediately due
and payable in full at that time without the necessity of further notice or action by Landlord.

 

		(9)	RENTABLE AREA OF THE BUILDING: 945,394 rentable square feet

 

		(10)	RENTABLE AREA OF THE PREMISES: 26,164 square feet

 

		(11)	SECURITY DEPOSIT: The cash and/or Letter of Credit in the amount equal to the Monthly Base Rent
for the last twelve (12) months of the Term (and any proceeds of the Letter of Credit drawn and held by Landlord) if required pursuant
to Article Five.

 

    2

     

    

 

		(12)	SUITE NUMBER OF PREMISES: Suite 700, which consists of the entire seventh (7th) floor of the Building

 

		(13)	TENANT’S SHARE OF THE BUILDING: 2.77%

 

		(14)	BASE YEARS:

 

Operating Expense Base Year:
The calendar year 2020

 

Taxes Base Year: The City of
San Francisco fiscal year beginning July 1, 2019 and ending June 30, 2020.

 

		(15)	BROKERS:

 

Landlord’s Broker:Cushman
& Wakefield of California, Inc.

 

Tenant’s Broker:Avison
Young Northern California, Ltd.

 

		(16)	PERMITTED USE:General office use.

 

 1.02 ENUMERATION OF EXHIBITS & RIDER(S)

 

The
Exhibits and Rider(s) set forth below and attached to this Lease are incorporated in this Lease by this reference:

 

	EXHIBIT A	Plan of Premises
	EXHIBIT B	Workletter Agreement (intentionally omitted)
	EXHIBIT C	Rules and Regulations
	EXHIBIT D	Fair Market Rental Rate
	EXHIBIT E	Transactional Costs
	EXHIBIT F	Form of Letter of Credit
	 	 
	RIDER 1	Commencement Date Agreement
	RIDER 2	Additional Provisions

 

 1.03 DEFINITIONS

 

For
purposes hereof, the following terms shall have the following meanings:

 

ADJUSTMENT
YEAR: The applicable calendar year or any portion thereof after the Operating Expenses Base Year and Taxes Base Year for which
a Rent Adjustment computation is being made.

 

AFFILIATE:
Any corporation or other business entity which is owned or controlled by, owns or controls, or is under common ownership or control
with Tenant.

 

BUILDING:
The building located at the Project. For purposes of this Lease, Project Areas means all Land and any portions of the Real Property
located on the Land, and includes but is not limited to Common Areas as defined for purposes of this Lease. Project Areas on a
given floor include but are not limited to columns, core stairwells, core restrooms, elevator shafts and elevators, service elevator
lobby, and core rooms reserved for janitorial, electrical or mechanical purposes.

 

    3

     

    

 

COMMENCEMENT
DATE: The date specified in Rider 2.

 

COMMON
AREAS: All areas of the Building made available from time to time for the general common use or benefit of the tenants of the
Building, and their employees and invitees, or the public, as such areas currently exist and as they may be changed from time
to time.

 

DECORATION:
Tenant Alterations which do not require a building permit and which do not involve any of the structural elements of the Building,
or any of the Building’s systems, including its electrical, mechanical, plumbing, security, heating, ventilating, air-conditioning,
communication, and fire and life safety systems.

 

DEFAULT
RATE: Two (2) percentage points above the rate then most recently announced by Bank of America N.T.& S.A. at its San Francisco
headquarters as its corporate base lending rate, from time to time announced, but in no event higher than the maximum rate permitted
by Law. In the event the foregoing rate is no longer announced, Landlord shall choose a reasonably equivalent rate.

 

DELIVERY
DATE: The date for Landlord’s delivery to Tenant of possession of the Premises with the Landlord Work Substantially Complete,
as provided in Rider 2.

 

ENVIRONMENTAL
LAWS: All Laws governing the use, storage, disposal or generation of any Hazardous Material, including the Comprehensive Environmental
Response Compensation and Liability Act of 1980, as amended, and the Resource Conservation and Recovery Act of 1976, as amended.

 

EXPIRATION
DATE: The date specified in Section 1.01(7) unless changed by operation of Section 4 of Rider 2.

 

FORCE
MAJEURE: Any accident, casualty, act of God, war or civil commotion, strike or labor troubles, or any cause whatsoever beyond
the reasonable control of Landlord, including water shortages, energy shortages or governmental preemption in connection with
an act of God, a national emergency or by reason of Law, or by reason of the conditions of supply and demand which have been or
are affected by act of God, war or other emergency.

 

HAZARDOUS
MATERIAL: Such substances, material and wastes which are or become regulated under any Environmental Law; or which are classified
as hazardous or toxic under any Environmental Law; and explosives and firearms, radioactive material, asbestos, and polychlorinated
biphenyls.

 

INDEMNITEES:
Collectively, Landlord, any Mortgagee or ground lessor of the Property, the property manager and the leasing manager for the Property
and their respective directors, officers, agents and employees.

 

LAND:
The parcel(s) of real estate on which the Building and Project are located.

 

LANDLORD
WORK: The construction or installation of improvements to be furnished by Landlord at Landlord’s expense as more particularly
provided in Exhibit B, specifically described in Rider 2 attached hereto.

 

    4

     

    

 

LAWS
OR LAW: All laws, ordinances, rules, regulations, other requirements, orders, rulings or decisions adopted or made by any governmental
body, agency, department or judicial authority having jurisdiction over the Property, the Premises or Tenant’s activities
at the Premises and any covenants, conditions or restrictions of record which affect the Property.

 

LEASE:
This instrument and all exhibits and riders attached hereto, as may be amended from time to time.

 

LEASE
YEAR: The twelve (12) month period beginning on the first (1st) day of the first (1st) month following the
Commencement Date (unless the Commencement Date is the first (1st) day of a calendar month in which case beginning
on the Commencement Date), and each subsequent twelve (12) month period, or shorter, period until the Expiration Date.

 

MONTHLY
BASE RENT. The monthly rent specified in Section 1.01(8).

 

MORTGAGEE:
Any holder of a mortgage, deed of trust or other security instrument encumbering the Property.

 

NATIONAL
HOLIDAYS: New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas
Day and other holidays recognized by the Landlord and the janitorial and other unions servicing the Building in accordance with
their contracts.

 

OPERATING
EXPENSES: All costs, expenses and disbursements of every kind and nature incurred in connection with the ownership, management,
operation, maintenance, replacement and repair of the Building, and including the amortized portion of any capital expenditure
or improvement (“Capital Expenditure”), together with interest thereon and the costs of changing utility service
providers. Operating Expenses shall not include, (i) costs of alterations of the premises of tenants of the Building, (ii) depreciation
charges, (iii) interest and principal payments on loans (except for loans for capital expenditures or improvements which Landlord
is allowed to include in Operating Expenses as provided above), (iv) ground rental payments, (v) real estate brokerage and leasing
commissions, (vi) advertising and marketing expenses, (vii) costs of Landlord reimbursed by insurance proceeds, (viii) expenses
incurred in negotiating leases of other tenants in the Building or enforcing lease obligations of other tenants in the Building
and (ix) Landlord’s or Landlord’s property manager’s corporate general overhead or corporate general administrative
expenses. If any Operating Expense, though paid in one year, relates to more than one calendar year, at the option of Landlord
such expense may be proportionately allocated among such related calendar years. Operating Expenses shall in no event include
the following (“Exclusions”):

 

(1) Costs
incurred by Landlord with respect to goods and services (including utilities) sold or supplied to Tenant or other tenants of the
Building to the extent that Landlord is entitled to receive reimbursement for such costs other than recoupments through Rent Adjustments
from Tenant and the equivalent to Rent Adjustments collected from other tenants of the Building.

 

(2) Costs
incurred by Landlord for the repair of damage to the Building (including the amount of any insurance deductible) to the extent
that Landlord is reimbursed from any source (including without limitation by insurance, condemnation or warranty proceeds) other
than recoupments through Rent Adjustments from Tenant and the equivalent to Rent Adjustments collected from other tenants of the
Building.

 

    5

     

    

 

(3) Costs
(including permit, license and inspection costs but excluding costs of utilities) incurred with respect to the installation of
tenant improvements made for new tenants of the Building or incurred in renovating or otherwise improving, decorating, painting
or redecorating space leased by or available for leasing to tenants of the Building.

 

(4) Leasing
commissions, attorneys’ fees and other costs and expenses incurred in connection with negotiations or disputes with present
or prospective tenants of the Building.

 

(5) Costs,
fees and compensation (excluding, however, management fees) paid to Landlord or to subsidiaries or affiliates of Landlord for
services in the Building to the extent the same exceed the charges for comparable services rendered by unaffiliated third parties
of comparable stature and reputation.

 

(6) Interest
and principal on any mortgage encumbering the Real Property and direct costs for refinancing any such mortgage.

 

(7) Contributions
and donations made by Landlord to charitable organizations.

 

(8) Any
compensation paid to clerks, attendants or other persons working for commercial concessions operated for profit by Landlord or
in the parking garage servicing the Building.

 

(9) Wages
and benefits of employees who do not devote substantially all of their time to the Building unless such wages and benefits are
prorated to reflect time spent on operating and managing the Building vis-à-vis time spent on matters unrelated to operating
and managing the Building and employees above the level of manager of the Building.

 

(10) Capital
Expenditures incurred in order to comply with disability, life, fire and safety codes or other laws, in effect and as interpreted
and enforced by governmental authorities prior to the date of this Lease.

 

(11) Costs
other than Capital Expenditures arising from Hazardous Materials which were installed by Landlord, its agents, officers and employees
and which, at the time of installation, Landlord knew or should have known were in fact Hazardous Materials.

 

(12) Costs
to purchase fine art (including, without limitation, paintings and sculpture).

 

(13) Advertising
and promotional expenditures primarily directed toward leasing tenant space in the Building and costs of signs in or on the Building
identifying any tenant of the Building, except the Building directories.

 

OPERATING
EXPENSES BASE YEAR: The calendar year designated in Section 1.01(14).

 

PREMISES:
The space located in the Building at the Suite Number listed in Section 1.01(12) and depicted on Exhibit A attached hereto,
excluding Project Areas on the floor(s) on which the Premises is located.

 

    6

     

    

 

PROJECT
or PROPERTY: The Project consists of the office building located at the address specified in Section 1.01(1), together with any
and all areas, improvements, parking garage, sidewalks, landscaping and improvements, included as part of the Common Areas, and
the Land, any associated interests in real property, and the personal property, fixtures, machinery, equipment, systems and apparatus
located in or used in conjunction with any of the foregoing. The Project may also be referred to as the Property.

 

PROJECT
AREAS: As defined under the definition of Building above.

 

REAL
PROPERTY: The Property excluding any personal property.

 

RENT:
Collectively, Monthly Base Rent, Rent Adjustments and Rent Adjustment Deposits, and all other charges, payments, late fees or
other amounts required to be paid by Tenant under this Lease.

 

RENT
ADJUSTMENT. Any amounts owed by Tenant for payment of Operating Expenses or Taxes. The Rent Adjustments shall be determined and
paid as provided in Article Four.

 

RENT
ADJUSTMENT DEPOSIT: An amount equal to Landlord’s estimate of the Rent Adjustment attributable to each month of the applicable
Adjustment Year. On or before the beginning of each Adjustment Year or with Landlord’s Statement (defined in Article Four),
Landlord may estimate and notify Tenant in writing of its estimate of the excess, if any, of Operating Expenses over those for
the Operating Expenses Base Year and of Taxes over those for the Taxes Base Year. Prior to the first determination by Landlord
of the amount of Operating Expenses for the Operating Expenses Base Year and of Taxes for the Taxes Base Year, Landlord may estimate
such amounts in the foregoing calculation. Landlord shall have the right from time to time during any Adjustment Year to provide
a new or revised estimate of Operating Expenses and/or Taxes and to notify Tenant in writing thereof, of corresponding adjustments
in Tenant’s Rent Adjustment Deposit payable over the remainder of such year, and of the amount or revised amount due allocable
to months preceding such change. The last estimate by Landlord shall remain in effect as the applicable Rent Adjustment Deposit
unless and until Landlord notifies Tenant in writing of a change.

 

RENTABLE
AREA OF THE BUILDING: The amount of square footage set forth in Section 1.01(9) which represents the sum of the rentable area
of all space intended for occupancy in the Building.

 

RENTABLE
AREA OF THE PREMISES: The amount of square footage set forth in Section 1.01(10).

 

SECURITY
DEPOSIT: The funds specified in Section 1.01(11), if any, deposited by Tenant with Landlord as security for Tenant’s performance
of its obligations under this Lease.

 

STANDARD
OPERATING HOURS: Monday through Friday from 7:00 A.M. to 6:00 P.M., excluding National Holidays.

 

SUBSTANTIALLY
COMPLETE OR SUBSTANTIAL COMPLETION: When the Landlord Work is completed in accordance with the final Construction Drawings except
for minor insubstantial details of construction, decoration or mechanical adjustments which remain to be done and that do not
materially interfere with Tenant’s use of the Premises for the permitted use (“punch list items”). Substantial
Completion shall be deemed to have occurred notwithstanding a requirement to complete punch list items. Contemporaneously with
or promptly after Substantial Completion of the Landlord Work, Tenant shall have the right to submit a written “punch list”
to Landlord, setting forth any incomplete or defective item of construction. Landlord shall complete with reasonable diligence
“punch list” items mutually agreed upon by Landlord and Tenant with respect to the Landlord Work.

 

    7

     

    

  

TAXES:
All federal, state and local governmental taxes, assessments and charges of every kind or nature, whether general, special, ordinary
or extraordinary, which shall be due and payable because of or in connection with the ownership, leasing, management, control
or operation of the Building (including any personal property used in connection therewith), including all of its components and
the taxes, assessments and charges with respect to the Project Areas, which may also include any rental or similar taxes levied
in lieu of or in addition to general real and/or personal property taxes. For purposes hereof, Taxes for any year shall be Taxes
which are assessed for any period of such year on an accrual basis, whether or not such Taxes are billed and payable in a subsequent
calendar year. There shall be included in Taxes for any year the amount of all fees, costs and expenses (including reasonable
attorneys’ fees) paid during such year in connection with seeking or obtaining any refund or reduction of Taxes. Taxes for
any year shall be reduced by the net amount of any tax refund received by Landlord attributable to such year. If a special assessment
payable in installments is levied against the any part of the Building, Taxes for any year shall include only the installment
of such assessment and any interest payable or paid during such year (and the assessment shall be spread over the longest period
in which same may be paid). Taxes shall not include any federal or state inheritance, general income, gift or estate taxes, except
that if a change occurs in the method of taxation resulting in whole or in part in the substitution of any such taxes, or any
other assessment, for any Taxes as above defined, such substituted taxes or assessments shall be included in the Taxes. Taxes
paid by Tenant pursuant to Section 4.05 shall not be included in any computation of Taxes payable pursuant to Sections 4.01 and
4.02 below.

 

TAXES
BASE YEAR: As defined in Section 1.01(14).

 

TENANT
ADDITIONS: Collectively, Landlord Work, Tenant Work and Tenant Alterations.

 

TENANT
ALTERATIONS: Any alterations, improvements, additions, installations or construction in or to the Premises or any Real Property
systems serving the Premises done or caused to be done by Tenant after the date hereof, whether prior to or after the Commencement
Date (including Tenant Work, but excluding Landlord Work); and any supplementary air-conditioning systems installed by Landlord
or by Tenant at Landlord’s request pursuant to Section 6.01(b).

 

TENANT
DELAY: Any event or occurrence which delays the Substantial Completion of the Landlord Work which is caused by or is described
as follows:

 

(i) special
work, changes, alterations or additions requested or made by Tenant in the design or finish in any part of the Premises after
approval of the plans and specifications (as described in Rider 2);

 

(ii) Tenant’s
delay in submitting plans, supplying information, approving plans, specifications or estimates, giving authorizations or otherwise;

 

(iii) failure
to approve and pay for such work as Landlord undertakes to complete at Tenant’s expense;

 

(iv) the
performance or completion by Tenant or any person engaged by Tenant of any work in or about the Premises; or

 

    8

     

    

  

(v) failure
to perform or comply with any obligation or condition binding upon Tenant pursuant to Rider 2, including the failure to approve
and pay for such Landlord Work or other items if and to the extent Rider 2 provides they are to be approved or paid by Tenant.

 

Landlord
shall use reasonable efforts to notify Tenant, orally or in writing, of any circumstances of which Landlord is aware that have
caused or may cause a Tenant Delay, so that Tenant may take whatever action is appropriate to minimize or prevent such Tenant
Delay.

 

TENANT
WORK: All work installed or furnished to the Premises by Tenant in connection with Tenant’s initial occupancy pursuant to
Rider 2 and the Workletter, if any.

 

TENANT’S
SHARE: The percentage specified in Section 1.01(13) which represents the ratio of the Rentable Area of the Premises to the Rentable
Area of the Building.

 

TERM:
The term of this Lease which shall commence on the Commencement Date and expire on the Expiration Date.

 

TERMINATION
DATE: The Expiration Date or such earlier date as this Lease terminates or Tenant’s right to possession of the Premises
terminates.

 

WORKLETTER:
The agreement regarding the manner of completion of Landlord Work and Tenant Work set forth on Exhibit B hereto.

 

Article
Two

PREMISES, TERM AND FAILURE TO GIVE POSSESSION

 

 2.01 LEASE OF PREMISES

 

Landlord
hereby leases to Tenant and Tenant hereby leases from Landlord the Premises for the Term and upon the terms, covenants and conditions
provided in this Lease.

 

 2.02 TERM

 

The
Commencement Date shall be as defined in Rider 2.

 

2.03 FAILURE
TO GIVE POSSESSION

 

(intentionally
omitted; see Rider 2)

 

 2.04 AREA OF PREMISES

 

Landlord
and Tenant agree that for all purposes of this Lease the Rentable Area of the Premises and the Rentable Area of the Building as
set forth in Article One are controlling, and are not subject to revision after the date of this Lease.

 

 2.05 CONDITION OF PREMISES

 

The
Premises shall be delivered and leased in the condition provided in Rider 2.

 

    9

     

    

 

Article
Three

RENT

 

Tenant
agrees to pay to Landlord at the first office specified in Section 1.01(2), or to such other persons, or at such other places
designated by Landlord, without any prior demand therefor in immediately available funds and without any deduction or offset whatsoever
(except as otherwise expressly provided in this Lease), Rent, including Monthly Base Rent and Rent Adjustments in accordance with
Article Four, during the Term. Monthly Base Rent shall be paid monthly in advance on the first (1st) day of each month
of the Term, except that the first installment of Monthly Base Rent (allocable to the fifth month of the Term) shall be paid by
Tenant to Landlord concurrently with execution of this Lease. Monthly Base Rent shall be prorated for partial months within the
Term. Unpaid Rent shall bear interest at the Default Rate from the date due until paid. Tenant’s covenant to pay Rent shall
be independent of every other covenant in this Lease. Notwithstanding the first sentence of this Article Three, Tenant shall have
the right to make payments of Rent to Landlord by electronic funds or ACH transfer to Landlord.

 

Article
Four

RENT ADJUSTMENTS AND PAYMENTS

 

 4.01 RENT ADJUSTMENTS

 

Tenant
shall pay to Landlord Rent Adjustments with respect to each Adjustment Year as follows:

 

(a) The
Rent Adjustment Deposit representing Tenant’s Share of Operating Expenses for the applicable Adjustment Year in excess of
Operating Expenses for the Operating Expenses Base Year, monthly during the Term with the payment of Monthly Base Rent; and

 

(b) The
Rent Adjustment Deposit representing Tenant’s Share of Taxes for the applicable Adjustment Year in excess of Taxes for the
Taxes Base Year, monthly during the Term with the payment of Monthly Base Rent; and

 

(c) Any
Rent Adjustments due in excess of the Rent Adjustment Deposits in accordance with Section 4.02. Rent Adjustments due from Tenant
to Landlord for any Adjustment Year shall be Tenant’s Share of Operating Expenses for such year in excess of Operating Expenses
for the Operating Expenses Base Year, and Tenant’s Share of Taxes for such year in excess of Taxes for the Taxes Base Year.

 

 4.02 STATEMENT OF LANDLORD

 

As
soon as feasible after the expiration of the Operating Expenses Base Year and the Taxes Base Year, and each Adjustment Year thereafter,
Landlord will furnish Tenant a statement (“Landlord’s Statement”) showing the following:

 

(a) Operating
Expenses and Taxes for the Operating Expenses Base Year and Taxes Base Year, and thereafter for the last Adjustment Year;

 

(b) The
amount of Rent Adjustments due Landlord for the last Adjustment Year, less credit for Rent Adjustment Deposits paid, if any;

 

    10

     

    

  

(c) Any
change in the Rent Adjustment Deposit due monthly in the current Adjustment Year, including the amount or revised amount due for
months preceding any such change pursuant to Landlord’s Statement; and

 

(d) The
amount of any taxes assessed pursuant to Section 4.05 below.

 

Tenant
shall pay to Landlord within ten (10) business days after receipt of such statement any amounts for Rent Adjustments then due
in accordance with Landlord’s Statement. Any amounts due from Landlord to Tenant pursuant to this Section shall be credited
to the Rent Adjustment Deposit next coming due, or refunded to Tenant if the Term has already expired, provided that if Tenant
is then in default hereunder, Landlord may deduct from such refund the amount necessary to cure Tenant’s default. No interest
or penalties shall accrue on any amounts which Landlord is obligated to credit or refund to Tenant by reason of this Section 4.02.
Landlord’s failure to deliver Landlord’s Statement or to compute the amount of the Rent Adjustments shall not constitute
a waiver by Landlord of its right to deliver such items nor constitute a waiver or release of Tenant’s obligations to pay
such amounts. The Rent Adjustment Deposit shall be credited against Rent Adjustments due for the applicable Adjustment Year. During
the last complete calendar year or during any partial calendar year in which the Lease terminates, Landlord may include in the
Rent Adjustment Deposit its estimate of Rent Adjustments which may not be finally determined until after the termination of this
Lease. Tenant’s obligation to pay Rent Adjustments survives the expiration or termination of the Lease. Notwithstanding
the foregoing, in no event shall the sum of Monthly Base Rent and the Rent Adjustments be less than the Monthly Base Rent payable.

 

 4.03 BOOKS AND RECORDS

 

Landlord
shall maintain books and records showing Operating Expenses and Taxes in accordance with sound accounting and management practices,
consistently applied. The Tenant or its representative (which representative shall be a certified public accountant licensed to
do business in the state in which the Property is located and whose primary business is certified public accounting) shall have
the right, for a period of sixty (60) days following the date upon which Landlord’s Statement is delivered to Tenant, to
examine the Landlord’s books and records with respect to the items in the foregoing statement of Operating Expenses and
Taxes during normal business hours, upon written notice, delivered at least three (3) business days in advance. If Tenant does
not object in writing to Landlord’s Statement within ninety (90) days of Tenant’s receipt thereof, specifying the
nature of the item in dispute and the reasons therefor, then Landlord’s Statement shall be considered final and accepted
by Tenant. Any amount due to the Landlord as shown on Landlord’s Statement, whether or not disputed by Tenant as provided
herein shall be paid by Tenant when due as provided above, without prejudice to any such written exception.

 

    11

     

    

 

 4.04 PARTIAL OCCUPANCY; COST POOLS

 

For
purposes of determining Rent Adjustments, if the Project is not fully occupied during all or a portion of any year during the
Term, Landlord may make reasonable and appropriate adjustments to those Operating Expenses for such year that vary depending on
occupancy, employing sound accounting and management principles consistently applied, to determine the amount of Operating Expenses
that would have been paid or incurred by Landlord had the Project been 100% occupied, and the amount so determined shall be deemed
to have been the amount of Operating Expenses for such year. In the event that the Real Property is not fully assessed for all
or a portion of any year (including the Base Year) during the Term and Landlord reasonably anticipates that a reassessment of
the Real Property is likely to occur, then Taxes shall be adjusted to an amount which, in Landlord’s reasonable discretion
and judgment, would have been payable in such year if the Real Property had been fully assessed. If, following the expiration
of the third (3rd) full fiscal year after Landlord has adjusted Taxes as provided in the preceding sentence (i.e.,
which fiscal year ends on June 30th) (i.e., because Landlord anticipated that a reassessment of the Real Property was
likely to occur) and such reassessment does not occur as Landlord had anticipated (either because no reassessment occurred, or
a reassessment occurred but for a value different from that which Landlord had anticipated), then Landlord shall, within forty-five
(45) days following the end of such fiscal year, refund any overpayment of Taxes to Tenant (which reimbursement obligation shall
survive the expiration or earlier termination of this Lease); provided, however, that nothing in this Section shall prohibit Landlord
from recovering Taxes from Tenant in accordance with the terms of this Lease if the Real Property is later reassessed by the applicable
taxing authority. In the event any other tenant in the Building provides itself with a service of a type which Landlord would
supply under the Lease without an additional or separate charge to Tenant, then Operating Expenses shall be deemed to include
the cost Landlord would have incurred had Landlord provided such service to such other tenant. In addition, Landlord shall have
the right, from time to time, to equitably allocate and prorate some or all of the Operating Expenses among different tenants
of the Project (the “Cost Pools”), adjusting Tenant’s Share as to each of the separately allocated costs
based on the ratio of the Rentable Area of the Premises to the Rentable Areas of all of the premises to which such costs are allocated.
Such Cost Pools may include, without limitation, the office space tenants and retail space tenants of the buildings in the Project.

 

4.05 TENANT
OR LEASE SPECIFIC TAXES

 

In
addition to Monthly Base Rent, Rent Adjustments, Rent Adjustment Deposits and other charges to be paid by Tenant, Tenant shall
pay to Landlord, upon demand, any and all taxes payable by Landlord (other than federal or state inheritance, general income,
gift or estate taxes) whether or not now customary or within the contemplation of the parties hereto: (a) upon, allocable to,
or measured by the Rent payable hereunder, including any gross receipts tax or excise tax levied by any governmental or taxing
body with respect to the receipt of such rent (including, without limitation, the Early Care and Commercial Rents Tax imposed
by the City and County of San Francisco (as the same may be supplemented, amended, modified or replaced from time to time)); or
(b) upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy
by Tenant of the Premises or any portion thereof; or (c) upon the measured value of Tenant’s personal property located in
the Premises or in any storeroom or any other place in the Premises or the Property, or the areas used in connection with the
operation of the Property, it being the intention of Landlord and Tenant that, to the extent possible, such personal property
taxes shall be billed to and paid directly by Tenant; or (d) resulting from Landlord Work, Tenant Work or Tenant Alterations to
the Premises, whether title thereto is in Landlord or Tenant; or (e) upon this transaction. Taxes paid by Tenant pursuant to this
Section 4.05 shall not be included in any computation of Taxes payable pursuant to Sections 4.01 and 4.02, and Tenant shall have
no obligation to pay any Taxes under this Section 4.05 to the extent the same are payable by Tenant under Sections 4.01 and 4.02
and vice-versa.

 

    12

     

    

 

Article
Five

SECURITY DEPOSIT

 

(a) Tenant
shall pay Landlord, within thirty (30) days following the mutual execution and delivery of this Lease, in immediately available
funds the amount of the Security Deposit specified in Section 1.01 as security (“Security”) for the full and
faithful performance by Tenant of each and every term, provision, covenant, and condition of this Lease. If there is a Default
under this Lease by Tenant, then Landlord may use, apply, or retain the whole or any part of the Security for the payment of any
such Rent not paid when due, for the cost of repairing such damage, for the cost of cleaning the Premises, for the payment of
any other sum which Landlord expends by reason of Tenant’s Default, including for compensation of Landlord for any other
loss or damage to Landlord occasioned by Tenant’s Default, including, but not limited to, any loss of future Rent and any
damage or deficiency in the reletting of the Premises (whether such loss, damages or deficiency accrue before or after summary
proceedings or other reentry by Landlord) and the amount of the unpaid past Rent, future Rent loss, and all other losses, costs
and damages, that Landlord would be entitled to recover if Landlord were to pursue recovery under Section 11.02(b) or (c) of this
Lease. If Landlord so uses, applies or retains all or part of the Security, Tenant shall within ten (10) business days after demand
pay or deliver to Landlord in immediately available funds the sum necessary to replace the amount used, applied or retained, except
as specified in (d) below. The Security (except for any amounts retained for application by Landlord as provided herein) shall
be returned or paid over to Tenant no later than ninety (90) days after the latest of: (i) the Termination Date; (ii) the removal
of Tenant from the Premises; (iii) the surrender of the Premises by Tenant to Landlord in accordance with this Lease; or (iv)
the date Rent Adjustments owed pursuant to this Lease have been computed by Landlord and paid by Tenant. Provided, however, in
no event shall any such return be construed as an admission by Landlord that Tenant has performed all of its obligations hereunder.

 

(b) The
Security shall not be deemed an advance rent deposit or an advance payment of any kind, or a measure of Landlord’s damages
with respect to Tenant’s failure to perform, nor shall any action or inaction of Landlord with respect to it be a waiver
of, or bar or defense to, enforcement of any right or remedy of Landlord. Landlord shall not be required to keep the Security
separate from its general funds and shall not have any fiduciary or other duties concerning the Security except as set forth in
this Section. Tenant shall not be entitled to any interest on the Security. In the event of any sale, lease or transfer of Landlord’s
interest in the Building, Landlord shall transfer the Security, or balance thereof, to the vendee, transferee or lessee and any
such transfer shall release Landlord from all liability for the return of the Security. Tenant thereafter shall look solely to
such vendee, transferee or lessee for the return or payment of the Security. Tenant shall not assign or encumber or attempt to
assign or encumber the Security or any interest in it and Landlord shall not be bound by any such assignment, encumbrance, attempted
assignment or attempted encumbrance, and regardless of one or more assignments of this Lease, Landlord may return the Security
to the original Tenant without liability to any assignee. Tenant hereby waives any and all rights of Tenant under the provisions
of Section 1950.7 of the California Civil Code or other Law, now or hereafter enacted, regarding security deposits.

 

(c) Notwithstanding
anything to the contrary contained in this Lease, Tenant shall have the right initially or at any time during the Term to substitute
a letter of credit in the amount of the Security Deposit specified in this Lease (the “Letter of Credit”) for
a cash security deposit as the Security under this Lease. Such Letter of Credit shall conform to the requirements set forth in
Section 5 of Rider 2. Within forty five (45) days of the date Tenant delivers a conforming Letter of Credit to Landlord, Landlord
shall return the Security Deposit to Tenant, and Landlord shall have no further obligation to return or account for the Security
Deposit. After Tenant’s delivery of a conforming Letter of Credit and Landlord’s return of the Security Deposit to
Tenant, references to the “Security” in this Lease shall refer to the Letter of Credit.

 

    13

     

    

 

(d) If
Tenant fails timely to perform any obligation under this Article Five after any notice and cure period expressly provided under
this Article Five, such breach shall constitute a Default by Tenant under this Lease without any right to or requirement of any
further notice or cure period under any other Article of this Lease.

 

(e) If
at any time Landlord is holding Tenant’s cash Security Deposit, and if at such time Tenant would have had the right to a
Reduction (as defined in Section 5(e) of Rider 2) of the Letter of Credit (if Tenant had delivered the Letter of Credit in lieu
of a cash Security Deposit as provided in Section 5(c) above), then at such time Tenant shall have the right to a Reduction of
the cash Security Deposit on the same terms as Tenant has to a Reduction of the Letter of Credit under Section 5(e) of Rider 2.
Provided that Tenant has satisfied the Reduction Conditions (as defined in Section 5(e) of Rider 2), Landlord shall deliver to
Tenant the applicable Reduction Amount (calculated as provided in Section 5(e) of Rider 2) within thirty (30) days following Tenant’s
delivery of Landlord of Tenant’s Financial Information (as defined in Section 5(e) of Rider 2) evidencing Tenant’s
full satisfaction of the Reduction Conditions.

 

Article
Six

SERVICES

 

6.01 LANDLORD’S
GENERAL SERVICES

 

(a) So
long as the Lease is in full force and effect and Tenant has paid all Rent then due, Landlord shall furnish or cause the following
services to be furnished to Tenant:

 

(1) heat,
ventilation and air-conditioning (“HVAC”) in the Premises during Standard Operating Hours, as necessary in
Landlord’s reasonable judgment for the comfortable occupancy of the Premises under normal business operations, subject to
compliance with all applicable voluntary and mandatory regulations and Laws, which HVAC service shall be consistent with those
HVAC services provided by comparable landlords of comparable Class A office buildings located in San Francisco, California;

 

(2) tempered
and cold water for use in restrooms and lavatories in common with other tenants from the regular supply of the Building;

 

(3) customary
cleaning and janitorial services in the Premises five (5) days per week, excluding National Holidays;

 

(4) washing
of the outside windows in the Premises weather permitting at intervals determined by Landlord;

 

(5) automatic
passenger elevator service in common with other tenants of the Building and, subject to reasonable scheduling by Landlord and
payment of the standard charges (without mark-up by Landlord), freight elevator service provided outside of Standard Operating
Hours;

 

(b) If
Tenant uses heat generating machines or equipment in the Premises to an extent which adversely affects the temperature otherwise
maintained by the air-cooling system or whenever the occupancy or electrical load adversely affects the temperature otherwise
maintained by the air-cooling system, Landlord reserves the right to install or to require Tenant to install supplementary air-conditioning
units in the Premises. Tenant shall bear all costs and expenses related to the installation, maintenance and operation of such
units.

 

    14

     

    

 

(c) Tenant
shall pay Landlord at rates fixed by Landlord for all tenants in the Building, charges for all water furnished to the Premises
beyond that described in Section 6.01(a)(2), including the expenses of installation of a water line, meter and fixtures.

 

6.02 ELECTRICAL
SERVICES

 

(a) So
long as the Lease is in full force and effect and Tenant has paid all Rent then due, Landlord shall furnish or cause to be furnished
to the Premises electric current for general business office use, including normal lighting, normal business office machines,
customary janitorial service, and making alterations or repairs (whether by Landlord or Tenant). Notwithstanding any provision
of the Lease to the contrary, without, in each instance, the prior written consent of Landlord, which may be withheld in Landlord’s
sole discretion, Tenant shall not: (i) make any alterations or additions to the electric equipment or systems; or (ii) install
or use or permit the installation or use of any computer or electronic data processing equipment in the Premises other than personal
computers, lap-top computers, photocopiers, printers, scanners, shredders, and ancillary equipment that is consistent with customary
and normal general office use (and provided that Tenant’s use of electric current complies with the terms of the following
sentence). Tenant’s use of electric current shall at no time exceed the lesser of (x) the capacity of the wiring, feeders
and risers providing electric current to the Premises or the Building; or (y) a connected electrical load for lighting purposes
in excess of the wattage per square foot of Rentable Area of the Premises required for Building standard amounts of lighting plus
a connected load for all other power requirements of five (5) watts per square foot of Rentable Area of the Premises. The consent
of Landlord to the installation of electric equipment shall not relieve Tenant from the obligation to limit usage of electricity
to no more than such capacity.

 

(b) If
and to the extent electric current is furnished to the Premises in excess of the amount of electric current normally used during
Standard Operating Hours in a general business office in a first class office building with the type of electrical equipment and
normal business office machines described in subparagraph (a) above, then (i) Tenant shall pay Landlord upon notice from Landlord
the cost of such excess electric current, as additional Rent, (ii) the cost of such excess use and all additional costs separately
billed to Tenant pursuant to this Section shall not be included as part of Operating Expenses, and (iii) Landlord may in its sole
discretion either (i) install one or more meters to measure electric current furnished to the Premises or (ii) reasonably estimate
electric current furnished to the Premises. Within ten (10) business days of Landlord’s request and reasonable supporting
documentation, Tenant shall pay Landlord the cost of installing and maintaining all such meters and of any electrical engineering
or consulting firm, if Landlord retains such firm to estimate the electric current furnished to the Premises in lieu of installation
of a meter. Tenant shall pay Landlord for such excess electric current at the then current rates charged to Landlord for such
electricity provided to the Property by the utility provider chosen by Landlord plus any additional cost of Landlord in keeping
account of the electric current so consumed. Landlord’s notice shall specify whether such excess use shall be payable (i)
in advance as reasonably estimated by Landlord in monthly installments at the time prescribed for monthly installments of Monthly
Base Rent or (ii) within ten (10) days after notice from Landlord given from time to time of the amount due for prior excess use
as metered or reasonably estimated by Landlord.

 

(c) So
long as the Lease is in full force and effect and Tenant has paid all Rent then due, Landlord shall furnish or cause to be furnished
to the Premises replacement lamps, bulbs, ballasts and starters used in any normal Building lighting installed in the Premises,
except that if the replacement or repair of such items is a result of negligence of Tenant, its employees, agents, servants, licensees,
subtenants, contractors or invitees, such cost shall be paid by Tenant within ten (10) days after notice from Landlord and shall
not be included as part of Operating Expenses.

 

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6.03 ADDITIONAL
AND AFTER-HOUR SERVICES

 

At
Tenant’s written request, Landlord shall furnish additional quantities of any of the services or utilities specified in
Section 6.01 on the terms set forth herein. For HVAC: (a) for service after Standard Operating Hours on Monday through Friday
(except National Holidays), Tenant shall deliver to Landlord a written request before 2:00 P.M. of such day, and (b) for service
on a Saturday, Sunday or National Holiday, Tenant shall deliver to Landlord a written request before 2:00 P.M. on the last business
day prior to the requested service. For services or utilities requested by Tenant and furnished by Landlord, Tenant shall pay
to Landlord as a charge therefor Landlord’s prevailing rates charged from time to time for such services and utilities.
Without limiting the generality of the foregoing, for HVAC service beyond Standard Operating Hours, as of the date of this Lease,
a two (2) hour minimum usage is required per activation. If Tenant shall fail to make any such payment, Landlord may, upon notice
to Tenant and in addition to Landlord’s other remedies under this Lease, discontinue any or all of such additional services.

 

6.04 TELEPHONE
SERVICES

 

All
telegraph, telephone, and communication connections which Tenant may desire shall be subject to Landlord’s prior written
approval, in Landlord’s sole discretion, and the location of all wires and the work in connection therewith shall be performed
by contractors approved by Landlord and shall be subject to the direction of Landlord, except that such approval is not required
as to Tenant’s telephone equipment (including cabling) within the Premises and from the Premises in a route designated by
Landlord to any telephone cabinet or panel provided (as existing or as installed as part of Landlord’s Work, if any) on
Tenant’s floor for Tenant’s connection to the telephone cable serving the Building so long as Tenant’s equipment
does not require connections different than or additional to those to the telephone cabinet or panel provided. Except to the extent
of such cabling within the Premises or from the Premises to such telephone cabinet or panel, Landlord reserves the right to designate
and control the entity or entities providing telephone or other communication cable installation, removal, repair and maintenance
in the Building and to restrict and control access to telephone cabinets or panels. In the event Landlord designates a particular
vendor or vendors to provide such cable installation, removal, repair and maintenance for the Building, Tenant agrees to abide
by and participate in such program. Tenant shall have non-exclusive access to existing distribution in the risers of the Building)
and shall be responsible for and shall pay all costs incurred in connection with the installation of telephone cables and communication
wiring in the Premises, including any hook-up, access and maintenance fees related to the installation of such wires and cables
in the Premises and the commencement of service therein, and the maintenance thereafter of such wire and cables; and there shall
be included in Operating Expenses for the Building all installation, removal, hook-up or maintenance costs incurred by Landlord
in connection with telephone cables and communication wiring serving the Building which are not allocable to any individual users
of such service but are allocable to the Building generally. If Tenant fails to maintain all telephone cables and communication
wiring in the Premises and such failure affects or interferes with the operation or maintenance of any other telephone cables
or communication wiring serving the Building, Landlord or any vendor hired by Landlord may enter into and upon the Premises forthwith
and perform such repairs, restorations or alterations as Landlord deems necessary in order to eliminate any such interference
(and Landlord may recover from Tenant all of Landlord’s costs in connection therewith). No later than the Termination Date,
Tenant agrees to remove all telephone cables and communication wiring installed by Tenant for and during Tenant’s occupancy,
which Landlord shall request Tenant to remove. Tenant agrees that neither Landlord nor any of its agents or employees shall be
liable to Tenant, or any of Tenant’s employees, agents, customers or invitees or anyone claiming through, by or under Tenant,
for any damages, injuries, losses, expenses, claims or causes of action because of any interruption, diminution, delay or discontinuance
at any time for any reason in the furnishing of any telephone or other communication service to the Premises and the Building.

 

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6.05 DELAYS
IN FURNISHING SERVICES

 

(a) Tenant
agrees that Landlord shall not be in breach of this Lease nor be liable to Tenant for damages or otherwise, for any failure to
furnish, or a delay in furnishing, or a change in the quantity or character of any service when such failure, delay or change
is occasioned, in whole or in part, by repairs, improvements or mechanical breakdowns by an event of Force Majeure or by the act
or default of Tenant or any party other than Landlord and its employees, contractors, or agents. No such failure, delay or change
shall be deemed to be an eviction or disturbance of Tenant’s use and possession of the Premises, or relieve Tenant from
paying Rent or from performing any other obligations of Tenant under this Lease, without any deduction or offset. Failure to any
extent to make available, or any slowdown, stoppage, or interruption of, the specified utility services resulting from any cause,
including changes in service provider or Landlord’s compliance with any voluntary or similar governmental or business guidelines
now or hereafter published or any requirements now or hereafter established by any governmental agency, board, or bureau having
jurisdiction over the operation of the Property, shall not render Landlord liable in any respect for damages to either persons,
property, or business, nor be construed as an eviction of Tenant or work an abatement of Rent, nor relieve Tenant of Tenant’s
obligations for fulfillment of any covenant or agreement hereof. Should any equipment or machinery furnished by Landlord break
down or for any cause cease to function properly, Landlord shall use reasonable diligence to repair same promptly, but Tenant
shall have no claim for abatement of Rent or damages on account of any interruption of service occasioned thereby or resulting
therefrom.

 

(b) Tenant
acknowledges that all of Landlord’s covenants and obligation under this Article Six are subject to the requirements of the
governing documents for the Project of which the Premises form a part. Accordingly, Landlord shall have no liability hereunder
if the Project fails to provide a service required to be provided to Tenant hereunder so long as Landlord uses commercially reasonable
efforts, at Landlord’s sole expense, to cause the Project to do so.

 

6.06 CHOICE
OF SERVICE PROVIDER

 

Tenant
acknowledges that Landlord may, at Landlord’s sole option, to the extent permitted by applicable law, elect to change, from
time to time, the company or companies which provide services (including electrical service, gas service, water, telephone and
technical services) to the Building, the Premises and/or its occupants. Notwithstanding anything to the contrary set forth in
this Lease, Tenant acknowledges that Landlord has not and does not make any representations or warranties concerning the identity
or identities of the company or companies which provide services to the Building and the Premises or its occupants and Tenant
acknowledges that the choice of service providers and matters concerning the engagement and termination thereof shall be solely
that of Landlord. The foregoing provision is not intended to modify, amend, change or otherwise derogate from any provision of
this Lease concerning the nature or type of service to be provided or any specific information concerning the amount thereof to
be provided. Tenant agrees to cooperate with Landlord and each of its service providers in connection with any change in service
or provider.

 

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6.07 SIGNAGE

 

Initial
Building standard signage will be installed by Landlord in the directory in the main lobby of the Project and at Tenant’s
main entry door to the Premises. Directory signage shall be provided at Landlord’s cost and expense. Tenant may install
appropriate signage listing its name and/or logo above the Building standard lobby signage in the elevator lobby of the floor
on which Tenant has leased the entire floor, subject to Landlord’s prior written consent (which shall not be unreasonably
withheld) and conformity to Building standard signage. All such initial signage (other than in the directory in the main lobby
of the Building) shall be procured and installed at Tenant’s sole cost and expense. Any elevator lobby signage installed
by Tenant shall also be maintained, repaired, restored and removed by Tenant at Tenant’s cost and expense. Any change in
such initial signage shall be only with Landlord’s prior written consent (which shall not be unreasonably withheld), shall
conform to Project standard signage and shall be at Tenant’s sole cost and expense.

 

Article
Seven

POSSESSION, USE AND CONDITION OF PREMISES

 

7.01 POSSESSION
AND USE OF PREMISES

 

(a) Tenant
shall occupy and use the Premises only for the uses specified in Section 1.01(16) to conduct Tenants business. Tenant shall not
occupy or use the Premises (or permit the use or occupancy of the Premises) for any purpose or in any manner which: (1) is unlawful
or in violation of any Law or Environmental Law; (2) may be dangerous to persons or property or which may invalidate any policy
of insurance carried on the Building or Project or covering its operations or which may increase the cost of any such insurance
or insurance carried by any other occupant of the Project unless such increased cost is paid by Tenant as provided in the rules
and regulations of the Building described in Article Eighteen; (3) is contrary to or prohibited by the terms and conditions of
this Lease or the rules and regulations of the Building set forth in Article Eighteen; (4) would tend to create or continue a
nuisance; or (5) would result in an occupancy density in the Premises of more than one (1) person per 125 square feet of the Premises.
Without limiting the generality of the foregoing, Tenant shall not bring upon the Premises or any portion of the Project or use
the Premises or permit the Premises or any portion thereof to be used for the growing, manufacturing, administration, distribution
(including without limitation, any retail sales), possession, use or consumption of any cannabis, marijuana or cannabinoid product
or compound, regardless of the legality or illegality of the same.

 

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(b) Tenant
shall comply with all Environmental Laws pertaining to Tenant’s occupancy and use of the Premises and concerning the proper
storage, handling and disposal of any Hazardous Material introduced to the Premises, the Building or the Property by Tenant or
other occupants of the Premises, or their employees, servants, agents, contractors, customers or invitees. Landlord shall comply
with all Environmental Laws applicable to the Property other than those to be complied with by Tenant pursuant to the preceding
sentence or Article Twenty-six. Tenant shall not generate, store, handle or dispose of any Hazardous Material in, on, or about
the Property without the prior written consent of Landlord, which may be withheld in Landlord’s sole discretion, except
that such consent shall not be required to the extent of Hazardous Material packaged and contained in office products for consumer
use in general business offices in quantities for ordinary day-to-day use provided such use does not give rise to, or pose a risk
of, exposure to or release of Hazardous Material. In the event that Tenant is notified of any investigation or violation of any
Environmental Law arising from Tenant’s activities at the Premises, Tenant shall immediately deliver to Landlord a copy
of such notice. In such event or in the event Tenant has failed to comply with its obligations hereunder, Landlord may conduct
such tests and studies relating to compliance by Tenant with Environmental Laws or the alleged presence of Hazardous Material
upon the Premises as Landlord deems desirable, all of which shall be completed at Tenant’s expense. Landlord’s inspection
and testing rights are for Landlord’s own protection only, and Landlord has not, and shall not be deemed to have assumed
any responsibility to Tenant or any other party for compliance with Environmental Laws, as a result of the exercise, or non-exercise
of such rights. Tenant hereby indemnifies, and agrees to defend, protect and hold harmless, the Indemnitees from any and all loss,
claim, demand, action, expense, liability and cost (including attorneys’ fees and expenses) arising out of or in any way
related to the presence of any Hazardous Material introduced to the Premises or the Property during the Lease Term by Tenant or
other occupants of the Premises, or their employees, servants, agents, contractors, customers or invitees. In case of any action
or proceeding brought against the Indemnitees by reason of any such claim, upon notice from Landlord, Tenant covenants to defend
such action or proceeding by counsel chosen by Landlord, in Landlord’s sole discretion. Landlord reserves the right to settle,
compromise or dispose of any and all actions, claims and demands related to the foregoing indemnity. If any Hazardous Material
is released, discharged or disposed of on or about the Property and such release, discharge or disposal is not caused by Tenant
or other occupants of the Premises, or their employees, servants, agents, contractors customers or invitees, such release, discharge
or disposal shall be deemed casualty damage under Article Fourteen to the extent that the Premises are affected thereby; in such
case, Landlord and Tenant shall have the obligations and rights respecting such casualty damage provided under such Article.

 

(c) Landlord
and Tenant acknowledge that the Americans With Disabilities Act of 1990 (42 U.S.C. §12101 et seq.) and regulations and guidelines
promulgated thereunder, as all of the same may be amended and supplemented from time to time (collectively referred to herein
as the “ADA”) establish requirements for business operations, accessibility and barrier removal, and that such
requirements may or may not apply to the Premises, the Building and the Project depending on, among other things: (1) whether
Tenant’s business is deemed a “public accommodation” or “commercial facility”, (2) whether such
requirements are “readily achievable”, and (3) whether a given alteration affects a “primary function area”
or triggers “path of travel” requirements. The parties hereby agree that: (a) Landlord shall be responsible for ADA
Title Ill compliance in the Common Areas, except as provided below, (b) Tenant shall be responsible for ADA Title III compliance
in the Premises, including any leasehold improvements or other work to be performed in the Premises under or in connection with
this Lease, (c) Landlord may perform, or require that Tenant perform, and Tenant shall be responsible for the cost of, ADA Title
III “path of travel” requirements triggered by Tenant Additions in the Premises (except in connection with the Landlord
Work and except as provided below with respect to the Tenant Work), and (d) Landlord may perform, or require Tenant to perform,
and Tenant shall be responsible for the cost of, ADA Title III compliance in the Common Areas necessitated by the Building being
deemed to be a “public accommodation” instead of a “commercial facility” as a result of Tenant’s
use of the Premises. Tenant shall be solely responsible for requirements under Title I of the ADA relating to Tenant’s employees.
To the extent Tenant shall occupy a full floor in the Building, all ADA requirements relating to the restrooms, elevator lobbies
and corridors on such floor shall be the responsibility of Tenant. All matters relating to “life safety” on such floors
shall also be the responsibility of Tenant.

 

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Notwithstanding
anything to the contrary set forth herein, Landlord, at its cost, shall be responsible for correcting any violations of the ADA
in effect and as interpreted and enforced as of the date hereof with respect to the Common Areas of the Building to the extent
(i) triggered by the Landlord Work, and (ii) that the need for such correction is triggered by the Tenant Work, provided that
the Tenant Work is consistent with general office use in the Building and does not contemplate any increased occupancy density
or assemblage use (with such correction, if any, referred to herein as collectively as the “Required Upgrades”).
Landlord, at Landlord’s sole cost and expense, shall have the right to contest any alleged Required Upgrades in good faith,
including, without limitation, the right to apply for and obtain a waiver or deferment of compliance, the right to assert any
and all defenses allowed by Law and the right to appeal any decisions, judgments or rulings to the fullest extent permitted by
Law. Landlord, after the exhaustion of any and all rights to appeal or contest, will perform any Required Upgrades required in
accordance with this Section. In the event that Tenant becomes aware of the need for any Required Upgrades triggered by the Tenant
Work, Tenant shall give prompt, written, reasonably detailed notice thereof to Landlord (“Upgrade Notice”).
Landlord shall use commercially reasonable efforts, subject to Landlord’s right to dispute or appeal the Required Upgrades
as set forth above, to complete the Required Upgrades as soon as practicable following the date of receipt of Tenant’s Upgrade
Notice. Landlord and Tenant agree to reasonably cooperate with each other in order to enable the Required Upgrades to be performed
in a timely manner. Landlord shall not be subject to any liability for any delays in completion of the Required Upgrades, nor
shall the same entitle Tenant to any credit or abatement of Rent; provided, however, to the extent Landlord’s failure to
Substantially Complete the Required Upgrades causes an actual delay in Substantial Completion of the Tenant Work beyond the date
that is four (4) months following the Delivery Date (a “Landlord Delay”), Tenant shall promptly notify Landlord
of any such Landlord Delay in writing (a “Delay Notice”) and, if Tenant is unable to perform the Tenant Work
as a result of Landlord’s failure to complete the Required Upgrades within two (2) business days after receipt of the Delay
Notice, then the Commencement Date shall be delayed by one day for each day following the date of Landlord’s receipt of
the Delay Notice and ending as of the date that the Required Upgrades are Substantially Complete. Notwithstanding anything to
the contrary set forth herein, the Required Upgrades shall specifically exclude any repairs, alterations, improvements or modifications
required as a result of any changes made to the space plan for the Tenant Work that is approved by Landlord (other than reasonable
changes to such space plan requested by Landlord) or the scope of the Tenant Work described therein or as a result of Tenant’s
particular design and/or use of the Premises (other than general office use) (and, in such event, Tenant shall, at its sole cost,
perform or cause to be performed in accordance with the terms of the Lease, as amended hereby, such repairs, alterations, improvements
and/or modifications).

 

(d) Landlord
and Tenant agree to cooperate and use commercially reasonable efforts to participate in traffic management programs generally
applicable to businesses located in or about the area and Tenant shall encourage and support van and car pooling by, and staggered
and flexible working hours for, its office workers and service employees to the extent reasonably permitted by the requirements
of Tenant’s business. Neither this Section or any other provision of this Lease is intended to or shall create any rights
or benefits in any other person, firm, company, governmental entity or the public.

 

(e) Tenant
agrees to cooperate with Landlord and to comply with any and all guidelines or controls concerning energy management imposed upon
Landlord by federal or state governmental organizations or by any energy conservation association to which Landlord is a party
or which is applicable to the Building.

 

(f) Tenant
shall have access to the Building and the Premises for Tenant and its employees 24 hours per day/7 days per week, subject to the
events of Force Majeure and the terms of this Lease and such security or monitoring systems as Landlord may reasonably impose,
including, without limitation, sign-in procedures and/or presentation of identification cards to the extent applicable.

 

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7.02 LANDLORD
ACCESS TO PREMISES; APPROVALS

 

(a) Tenant
shall permit Landlord to erect, use and maintain pipes, ducts, wiring and conduits in and through the Premises, so long as Tenant’s
use, layout or design of the Premises is not materially affected or altered. Landlord or Landlord’s agents shall have the
right to enter upon the Premises in the event of an emergency, or to inspect the Premises, to perform janitorial and other services,
to conduct safety and other testing in the Premises and to make such repairs, alterations, improvements or additions to the Premises
or the Building or other parts of the Property as Landlord may deem necessary or desirable (including all alterations, improvements
and additions in connection with a change in service provider or providers). Janitorial and cleaning services shall be performed
after normal business hours. Any entry or work by Landlord may be during normal business hours and Landlord may use reasonable
efforts to ensure that any entry or work shall not materially interfere with Tenant’s occupancy of the Premises.

 

(b) Advance
notice shall not be required for entry to perform routine janitorial and cleaning services or for entry in the event of an emergency
or urgent situation, as reasonably determined by Landlord, but any other entry or work by Landlord shall be upon at least one
(1) business day prior written notice to Tenant, which written notice may include notices e-mailed to Tenant’s on-site manager
at the Premises. If Tenant shall not be personally present to permit an entry into the Premises when for any reason an entry therein
shall be necessary or permissible, Landlord (or Landlord’s agents), after attempting to notify Tenant (unless Landlord believes
an emergency situation exists) as set forth in this Paragraph, may enter the Premises without rendering Landlord or its agents
liable therefor, and without relieving Tenant of any obligations under this Lease.

 

(c) Landlord
may enter the Premises for the purpose of conducting such inspections, tests and studies as Landlord may deem desirable or necessary
to confirm Tenant’s compliance with all Laws and Environmental Laws or for other purposes necessary in Landlord’s
reasonable judgment to ensure the sound condition of the Property and the systems serving the Property. Landlord’s rights
under this Section 7.02(c) are for Landlord’s own protection only, and Landlord has not, and shall not be deemed to have
assumed, any responsibility to Tenant or any other party as a result of the exercise or non-exercise of such rights, for compliance
with Laws or Environmental Laws or for the accuracy or sufficiency of any item or the quality or suitability of any item for its
intended use.

 

(d) Landlord
may do any of the foregoing, or undertake any of the inspection or work described in the preceding paragraphs without such action
constituting an actual or constructive eviction of Tenant, in whole or in part, or giving rise to an abatement of Rent by reason
of loss or interruption of business of the Tenant, or otherwise.

 

(e) The
review, approval or consent of Landlord with respect to any item required or permitted under this Lease is for Landlord’s
own protection only, and Landlord has not, and shall not be deemed to have assumed, any responsibility to Tenant or any other
party, as a result of the exercise or non-exercise of such rights, for compliance with Laws or Environmental Laws or for the accuracy
or sufficiency of any item or the quality or suitability of any item for its intended use.

 

7.03 QUIET
ENJOYMENT

 

Landlord
covenants, in lieu of any implied covenant of quiet possession or quiet enjoyment, that so long as Tenant is in compliance with
the covenants and conditions set forth in this Lease, Tenant shall have the right to quiet enjoyment of the Premises without hindrance
or interference from Landlord or those claiming through Landlord, and subject to the covenants and conditions set forth in the
Lease and to the rights of any Mortgagee or ground lessor.

 

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Article
Eight

MAINTENANCE

 

8.01 LANDLORD’S
MAINTENANCE

 

Subject
to the provisions of Articles Seven and Fourteen, Landlord shall perform (or shall cause to be performed) maintenance and necessary
repairs to the foundations, roofs, exterior walls, exterior glass, and the structural elements of the Building (and Project, as
appropriate), the electrical, plumbing, heating, ventilating, air-conditioning, mechanical, communication, security and the fire
and life safety systems of the Building and those corridors, washrooms and lobbies which are Common Areas, except that: (a) Landlord
shall not be responsible for the maintenance or repair of any floor or wall coverings in the Premises (or Project, as appropriate)
or any of such systems which are located within the Premises (or Project, as appropriate) which are supplemental or special to
the Building’s (or Project, as appropriate) standard systems; and (b) the cost of performing any of said maintenance or
repairs whether to the Premises or to the Building (or Project as appropriate) to the extent caused by the negligence of Tenant,
its employees, agents, servants, licensees, subtenants, contractors or invitees, shall be paid by Tenant, subject to the waivers
set forth in Section 16.04. Landlord shall not be liable to Tenant for any expense, injury, loss or damage resulting from work
done in or upon, or in connection with the use of, any adjacent or nearby building, land, street, or alley.

 

8.02 TENANT’S
MAINTENANCE

 

Subject
to the provisions of Article Fourteen, Tenant, at its expense, shall keep and maintain the Premises and all Tenant Additions (subject
to Landlord’s obligations in Exhibit B) thereto in good order, condition and repair and in accordance with all Laws
and Environmental Laws. Tenant shall not permit waste and shall promptly and adequately repair all damages to the Premises and
replace or repair all damaged or broken glass in the interior of the Premises, fixtures or appurtenances. Any repairs or maintenance
shall be completed with materials of similar quality to the original materials, all such work to be completed under the supervision
of Landlord. Any such repairs or maintenance shall be performed only by contractors or mechanics approved by Landlord, which approval
shall not be unreasonably withheld, and whose work will not cause or threaten to cause disharmony or interference with Landlord
or other tenants in the Building and their respective agents and contractors performing work in or about the Building. If Tenant
fails to perform any of its obligations set forth in this Section 8.02, Landlord may, in its sole discretion and upon 24 hours
prior notice to Tenant (except without notice in the case of emergencies), perform the same, and Tenant shall pay to Landlord
any costs or expenses incurred by Landlord upon demand.

 

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Article
Nine

ALTERATIONS AND IMPROVEMENTS

 

9.01 TENANT
ALTERATIONS

 

(a) The
following provisions shall apply to the completion of any Tenant Alterations:

 

(1) Tenant
shall not, except as provided herein, without the prior written consent of Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed, make or cause to be made any Tenant Alterations in or to the Premises or any Property systems serving
the Premises. Prior to making any Tenant Alterations, Tenant shall give Landlord ten (10) days prior written notice (or such earlier
notice as would be necessary pursuant to applicable Law) to permit Landlord sufficient time to post appropriate notices of non-responsibility.
Subject to all other requirements of this Article Nine, Tenant may undertake Decoration work without Landlord’s prior written
consent. Tenant shall furnish Landlord with the names and addresses of all contractors and subcontractors and copies of all contracts.
All Tenant Alterations shall be completed at such time and in such manner as Landlord may from time to time designate, and only
by contractors or mechanics approved by Landlord, which approval shall not be unreasonably withheld, provided, however, that Landlord
may, in its sole discretion, specify the engineers and contractors to perform all work relating to the Building’s systems
(including the mechanical, heating, plumbing, security, ventilating, air-conditioning, electrical, communication and the fire
and life safety systems in the Building). The contractors, mechanics and engineers who may be used are further limited to those
whose work will not cause or threaten to cause disharmony or interference with Landlord or other tenants in the Building and their
respective agents and contractors performing work in or about the Building. Landlord may further condition its consent upon Tenant
furnishing to Landlord and Landlord approving prior to the commencement of any work or delivery of materials to the Premises related
to the Tenant Alterations such of the following as specified by Landlord: architectural plans and specifications, opinions from
Landlord’s engineers stating that the Tenant Alterations will not in any way adversely affect the Building’s systems,
necessary permits and licenses, certificates of insurance, and such other documents in such form reasonably requested by Landlord.
Landlord may, in the exercise of reasonable judgment, request that Tenant provide Landlord with appropriate evidence of Tenant’s
ability to complete and pay for the completion of the Tenant Alterations such as a performance bond or letter of credit. Upon
completion of the Tenant Alterations (other than Decorations), Tenant shall deliver to Landlord an as-built mylar and digitized
(if available) set of plans and specifications for the Tenant Alterations, or lieu thereof, CAD files and all documentation relating
to the Tenant Alterations in pdf format.

 

(2) Tenant
shall pay the cost of all Tenant Alterations and the cost of decorating the Premises and any work to the Property occasioned thereby.
In connection with completion of any Tenant Alterations (other than for Decorations), Tenant shall pay Landlord a construction
fee and all elevator and hoisting charges at Landlord’s then standard rate. Upon completion of Tenant Alterations, Tenant
shall furnish Landlord with contractors’ affidavits and full and final waivers of lien and receipted bills covering all
labor and materials expended and used in connection therewith and such other documentation reasonably requested by Landlord or
Mortgagee.

 

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(3) Tenant
agrees to complete all Tenant Alterations (i) in accordance with all Laws, Environmental Laws, all requirements of applicable
insurance companies and in accordance with Landlord’s standard construction rules and regulations, and (ii) in a good and
workmanlike manner with the use of good grades of materials. Tenant shall notify Landlord immediately if Tenant receives any notice
of violation of any Law in connection with completion of any Tenant Alterations and shall immediately take such steps as are necessary
to remedy such violation. In no event shall such supervision or right to supervise by Landlord nor shall any approvals given by
Landlord under this Lease constitute any warranty by Landlord to Tenant of the adequacy of the design, workmanship or quality
of such work or materials for Tenant’s intended use or of compliance with the requirements of Section 9.01(a)(3)(i) and
(ii) above or impose any liability upon Landlord in connection with the performance of such work.

 

(b) All
Tenant Additions to the Premises, whether installed by Landlord or Tenant, shall without compensation or credit to Tenant, become
part of the Premises and the property of Landlord at the time of their installation and shall remain in the Premises, unless pursuant
to Article Twelve, Tenant may remove them or is required to remove them at Landlord’s request.

 

9.02 LIENS

 

Tenant
shall not permit any lien or claim for lien of any mechanic, laborer or supplier or any other lien to be filed against the Building,
the Land, the Premises, or any other part of the Property arising out of work performed, or alleged to have been performed by,
or at the direction of, or on behalf of Tenant. If any such lien or claim for lien is filed, Tenant shall within ten (10) days
of receiving notice of such lien or claim (a) have such lien or claim for lien released of record or (b) deliver to Landlord a
bond in form, content, amount, and issued by surety, satisfactory to Landlord, indemnifying, protecting, defending and holding
harmless the Indemnitees against all costs and liabilities resulting from such lien or claim for lien and the foreclosure or attempted
foreclosure thereof. If Tenant fails to take any of the above actions, Landlord, in addition to its rights and remedies under
Article Eleven, without investigating the validity of such lien or claim for lien, may pay or discharge the same and Tenant shall,
as payment of additional Rent hereunder, reimburse Landlord upon demand for the amount so paid by Landlord, including Landlord’s
expenses and attorneys’ fees.

 

Article
Ten

ASSIGNMENT AND SUBLETTING

 

10.01 ASSIGNMENT
AND SUBLETTING

 

(a) Without
the prior written consent of Landlord, which may be withheld in Landlord’s sole discretion, Tenant may not sublease, assign,
mortgage, pledge, hypothecate or otherwise transfer or permit the transfer of this Lease or the encumbering of Tenant’s
interest therein in whole or in part, by operation of Law or otherwise or permit the use or occupancy of the Premises, or any
part thereof, by anyone other than Tenant, provided, however, if Landlord chooses not to recapture the space proposed to be subleased
or assigned as provided in Section 10.02, Landlord shall not unreasonably withhold, condition or delay its consent to a subletting
or assignment under this Section 10.01. Tenant agrees that the provisions governing sublease and assignment set forth in this
Article Ten shall be deemed to be reasonable. If Tenant desires to enter into any sublease of the Premises or assignment of this
Lease, Tenant shall deliver written notice thereof to Landlord (“Tenant’s Notice”), together with the
identity of the proposed subtenant or assignee (and certified financial statements thereof for the prior three (3) years) and
the proposed principal terms thereof and further financial and other information sufficient for Landlord to make an informed judgment
with respect to such proposed subtenant or assignee at least thirty (30) days prior to the commencement date of the term of the
proposed sublease or assignment. If Tenant proposes to sublease less than all of the Rentable Area of the Premises, the space
proposed to be sublet and the space retained by Tenant must each be a marketable unit as reasonably determined by Landlord and
otherwise in compliance with all Laws. Landlord shall notify Tenant in writing of its approval or disapproval of the proposed
sublease or assignment or its decision to exercise its rights under Section 10.02 within thirty (30) days after receipt of Tenant’s
Notice (and all required information). In no event may Tenant sublease any portion of the Premises or assign the Lease to any
other tenant of the Building, except in the event that Landlord does not have available, comparable space in the Building to lease
to such tenant of the Building. Tenant shall submit for Landlord’s approval (which approval shall not be unreasonably withheld,
conditioned or delayed) any advertising which Tenant or its agents intend to use with respect to the space proposed to be sublet.

 

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(b) With
respect to Landlord’s consent to an assignment or sublease, Landlord may take into consideration any factors which Landlord
may deem relevant, and the reasons for which Landlord’s denial shall be deemed to be reasonable shall include the following:

 

(i) the
business reputation or creditworthiness of any proposed subtenant or assignee is not acceptable to Landlord; or

 

(ii) in
Landlord’s reasonable judgment the proposed assignee or subtenant would diminish the value or reputation of the Building
or Landlord; or

 

(iii) any
proposed assignee’s or subtenant’s use of the Premises would violate Section 7.01 of the Lease or would violate the
provisions of any other leases of tenants in the Project;

 

(iv) (the
proposed assignee or subtenant is either a governmental agency, a school or similar operation, or a medical related practice;
or

 

(v) the
proposed subtenant or assignee is a bona fide prospective tenant of Landlord in the Project as demonstrated by a written proposal
dated within sixty (60) days prior to the date of Tenant’s request; or

 

(vi) the
proposed subtenant or assignee would materially increase the estimated pedestrian and vehicular traffic to and from the Premises
and the Building.

 

In
no event shall Landlord be obligated to consider a consent to any proposed assignment of the Lease which would assign less than
the entire Premises. In the event Landlord wrongfully withholds its consent to any proposed sublease of the Premises or assignment
of the Lease, Tenant’s sole and exclusive remedy therefor shall be to seek specific performance of Landlord’s obligations
to consent to such sublease or assignment.

 

(c) Any
sublease or assignment shall be expressly subject to the terms and conditions of this Lease. Any subtenant or assignee shall execute
such documents as Landlord may reasonably require to evidence such subtenant or assignee’s assumption of the obligations
and liabilities of Tenant under this Lease (which, in the case of a sublease, shall be to the extent such obligations or liabilities
related to the portion of the Premises being sublet). Tenant shall deliver to Landlord a copy of all agreements executed by Tenant
and the proposed subtenant and assignee with respect to the Premises. Landlord’s approval of a sublease, assignment, hypothecation,
transfer or third party use or occupancy shall not constitute a waiver of Tenant’s obligation to obtain Landlord’s
consent to further assignments or subleases, hypothecations, transfers or third party use or occupancy.

 

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(d) For
purposes of this Article Ten, an assignment shall be deemed to include a change in the majority control of Tenant, resulting from
any transfer, sale or assignment of shares of stock of Tenant occurring by operation of Law or otherwise if Tenant is a corporation
whose shares of stock are not traded publicly. If Tenant is a partnership, any change in the partners of Tenant shall be deemed
to be an assignment.

 

(e) Notwithstanding
anything to the contrary contained in this Article Ten and provided there is no uncured default under this Lease, Tenant shall
have the right, without the prior written consent of Landlord, to assign this Lease to an Affiliate or to sublease the Premises
or any part thereof to an Affiliate, but (i) no later than fifteen (15) days prior to the effective date of the assignment or
sublease, the assignee shall execute documents satisfactory to Landlord to evidence such assignee’s assumption of the obligations
and liabilities of Tenant under this Lease, unless Landlord modifies or waives such requirement in the case of any assignment
which occurs by operation of law (and without a written assignment) as a consequence of merger, consolidation or non-bankruptcy
reorganization, and the subtenant shall execute documents reasonably satisfactory to Landlord to evidence that the sublease is
subject to the terms and conditions of this Lease and that the subtenant shall perform and be bound by all the terms and conditions
of this Lease (except payment of Monthly Base Rent and Rent Adjustments hereunder and other obligations which the sublease expressly
provides are to be performed by Tenant as the sublessor) to the extent applicable to the space and period covered by the sublease;
(ii) within ten (10) days after the effective date of such assignment or sublease, Tenant shall give notice to Landlord which
notice shall include the full name and address of the assignee or subtenant, and a copy of all agreements executed between Tenant
and the assignee or subtenant with respect to the Premises or part thereof, as may be the case; and (iii) within fifteen (15)
days after Landlord’s written request, Tenant shall provide such reasonable documents or information which Landlord reasonably
requests for the purpose of substantiating whether or not the assignment or sublease is to an Affiliate.

 

10.02 RECAPTURE

 

Except
as provided in Section 10.01(e), Landlord shall have the option to exclude from the Premises covered by this Lease (“recapture”),
the space proposed to be sublet or subject to the assignment, effective as of the proposed commencement date of such sublease
or assignment. Tenant shall surrender possession of the space proposed to be subleased or subject to the assignment to Landlord
on the effective date of recapture of such space from the Premises, such date being the Termination Date for such space. Effective
as of the date of recapture of any portion of the Premises pursuant to this section, the Monthly Base Rent, Rentable Area of the
Premises and Tenant’s Share shall be adjusted accordingly.

 

10.03 EXCESS
RENT

 

Tenant
shall pay Landlord on the first (1st) day of each month during the term of the sublease or assignment, fifty percent
(50%) of the amount by which the sum of all rent and other consideration (direct or indirect) due from the subtenant or assignee
for such month exceeds the sum of: (i) that portion of the Monthly Base Rent and Rent Adjustments due under this Lease for said
month which is allocable to the space sublet or assigned; and (ii) the following costs and expenses for the subletting or assignment
of such space: (1) brokerage commissions and attorneys’ fees and expenses, (2) the actual costs (amortized as provided in
the last sentence of this Section 10.03) paid in making any improvements or substitutions in the Premises required by any sublease
or assignment; and (3) “free rent” periods, costs of any inducements or concessions given to subtenant or assignee,
moving costs, and other amounts in respect of such subtenant’s or assignee’s other leases or occupancy arrangements.
All such costs and expenses shall be amortized over the term of the sublease or assignment pursuant to sound accounting principles.

 

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10.04 TENANT
LIABILITY

 

In
the event of any sublease or assignment, whether or not with Landlord’s consent, Tenant shall not be released or discharged
from any liability, whether past, present or future, under this Lease, including any liability arising from the exercise of any
renewal or expansion option, to the extent such exercise is expressly permitted by Landlord. Tenant’s liability shall remain
primary, and in the event of default by any subtenant, assignee or successor of Tenant in performance or observance of any of
the covenants or conditions of this Lease, Landlord may proceed directly against Tenant without the necessity of exhausting remedies
against said subtenant, assignee or successor. After any assignment, Landlord may consent to subsequent assignments or subletting
of this Lease, or amendments or modifications of this Lease with assignees of Tenant, without notifying Tenant, or any successor
of Tenant, and without obtaining its or their consent thereto, and such action shall not relieve Tenant or any successor of Tenant
of liability under this Lease. If Landlord grants consent to such sublease or assignment, Tenant shall pay all reasonable attorneys’
fees and expenses incurred by Landlord with respect to such assignment or sublease (not to exceed Two Thousand Five Hundred Dollars
($2,500.00) per request, provided that Tenant and, as applicable, the assignee, sublessee and transferee execute without material
negotiation Landlord’s standard documents for consent to assignment, sublease or transfer). In addition, if Tenant has any
options to extend the term of this Lease or to add other space to the Premises, such options shall not be available to any subtenant
or assignee (other than an assignee pursuant to Section 10.01(e) above), directly or indirectly without Landlord’s express
written consent, which may be withheld in Landlord’s sole discretion.

 

10.05 ASSUMPTION
AND ATTORNMENT

 

If
Tenant shall assign this Lease as permitted herein, the assignee shall expressly assume all of the obligations of Tenant hereunder
in a written instrument satisfactory to Landlord and furnished to Landlord not later than fifteen (15) days prior to the effective
date of the assignment. If Tenant shall sublease the Premises as permitted herein, Tenant shall, at Landlord’s option, within
fifteen (15) days following any request by Landlord, obtain and furnish to Landlord the written agreement of such subtenant to
the effect that the subtenant will attorn to Landlord and will pay all subrent directly to Landlord.

 

Article
Eleven

DEFAULT AND REMEDIES

 

11.01 EVENTS
OF DEFAULT

 

The
occurrence or existence of any one or more of the following shall constitute a “Default” by Tenant under this
Lease:

 

(i) Tenant
fails to pay any installment or other payment of Rent including Rent Adjustment Deposits or Rent Adjustments within three (3)
business days after the date when due (provided, however, that should Tenant fail to pay any installment or other payment of Rent
when due Landlord shall provide written notice to Tenant with respect to the first two payment failures in any twelve month period
and the same shall not constitute a Default unless Tenant fails to pay such sums within three (3) business days after written
notice thereof);

 

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(ii) Tenant
fails to observe or perform any of the other covenants, conditions or provisions of this Lease or the Workletter and fails to
cure such default within thirty (30) days after written notice thereof to Tenant (except in connection with a failure to perform
under Section 20.01 such thirty (30) day period shall not apply and the period shall be only five (5) days), unless the default
involves a hazardous condition, which shall be cured forthwith or unless the failure to perform is a Default for which this Lease
specifies there is no cure or grace period, provided that, if Tenant has exercised reasonable diligence to cure such failure and
such failure cannot reasonably be cured within such thirty (30) day period, then such cure period shall be extended, but not in
excess of an additional thirty (30) days, so long as Tenant diligently and continuously prosecutes the cure to completion;

 

(iii) the
interest of Tenant in this Lease is levied upon under execution or other legal process;

 

(iv) a
petition is filed by or against Tenant to declare Tenant bankrupt or seeking a plan of reorganization or arrangement under any
Chapter of the Bankruptcy Act, or any amendment, replacement or substitution therefor, or to delay payment of, reduce or modify
Tenant’s debts, which in the case of an involuntary action is not discharged within thirty (30) days;

 

(v) Tenant
is declared insolvent by Law or any assignment of Tenant’s property is made for the benefit of creditors;

 

(vi) a
receiver is appointed for Tenant or Tenant’s property, which appointment is not discharged within thirty (30) days;

 

(vii) any
action taken by or against Tenant to reorganize or modify Tenant’s capital structure in a materially adverse way which in
the case of an involuntary action is not discharged within thirty (30) days; or

 

(viii) upon
the dissolution of Tenant.

 

11.02 LANDLORD’S
REMEDIES

 

(a) A
Default shall constitute a breach of the Lease for which Landlord shall have the rights and remedies set forth in this Section
11.02 and all other rights and remedies set forth in this Lease or now or hereafter allowed by Law, whether legal or equitable,
and all rights and remedies of Landlord shall be cumulative and none shall exclude any other right or remedy.

 

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(b) With
respect to a Default, at any time Landlord may terminate Tenant’s right to possession by written notice to Tenant stating
such election. Upon the termination of Tenant’s right to possession pursuant to this Section 11.02, Tenant’s right
to possession shall terminate and this Lease shall terminate, and Tenant shall remain liable as hereinafter provided. Upon such
termination, Landlord shall have the right, subject to applicable Law, to re-enter the Premises and dispossess Tenant and the
legal representatives of Tenant and all other occupants of the Premises by unlawful detainer or other summary proceedings, or
otherwise as permitted by Law, regain possession of the Premises and remove their property (including their trade fixtures, personal
property and those Tenant Additions which Tenant is required or permitted to remove under Article Twelve), but Landlord shall
not be obligated to effect such removal, and such property may, at Landlord’s option, be stored elsewhere, sold or otherwise
dealt with as permitted by Law, at the risk of, expense of and for the account of Tenant, and the proceeds of any sale shall be
applied pursuant to Law. Landlord shall in no event be responsible for the value, preservation or safekeeping of any such property.
Tenant hereby waives all claims for damages that may be caused by Landlord’s removing or storing Tenant’s personal
property pursuant to this Section or Section 12.01, and Tenant hereby indemnifies, and agrees to defend, protect and hold harmless,
the Indemnitees from any and all loss, claims, demands, actions, expenses, liability and cost (including attorneys’ fees
and expenses) arising out of or in any way related to such removal or storage. Upon such written termination of Tenant’s
right to possession and this Lease, Landlord shall have the right to recover damages for Tenant’s Default as provided herein
or by Law, including the following damages provided by California Civil Code Section 1951.2:

 

(1) the
worth at the time of award of the unpaid Rent which had been earned at the time of termination;

 

(2) the
worth at the time of award of the amount by which the unpaid Rent which would have been earned after termination until the time
of award exceeds the amount of such Rent loss that Tenant proves could reasonably have been avoided;

 

(3) the
worth at the time of award of the amount by which the unpaid Rent for the balance of the term of this Lease after the time of
award exceeds the amount of such Rent loss that Tenant proves could be reasonably avoided; and

 

(4) any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenants failure to perform its obligations
under this Lease or which in the ordinary course of things would be likely to result therefrom. The word “rent” as
used in this Section 11.02 shall have the same meaning as the defined term Rent in this Lease. The “worth at the time of
award” of the amount referred to in clauses (1) and (2) above is computed by allowing interest at the Default Rate. The
worth at the time of award of the amount referred to in clause (3) above is computed by discounting such amount at the discount
rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). For the purpose of determining unpaid
Rent under clause (3) above, the monthly Rent reserved in this Lease shall be deemed to be the sum of the Monthly Base Rent, monthly
storage space rent, if any, and the amounts last payable by Tenant as Rent Adjustments for the calendar year in which Landlord
terminated this Lease as provided hereinabove.

 

(c) Even
if Tenant is in Default and/or has abandoned the Premises, this Lease shall continue in effect for so long as Landlord does not
terminate Tenant’s right to possession by written notice as provided in Section 11.02(b) above, and Landlord may enforce
all its rights and remedies under this Lease, including the right to recover Rent as it becomes due under this Lease. In such
event, Landlord shall have all of the rights and remedies of a landlord under California Civil Code Section 1951.4 (lessor may
continue Lease in effect after Tenant’s Default and abandonment and recover Rent as it becomes due, if Tenant has the right
to sublet or assign, subject only to reasonable limitations), or any successor statute. During such time as Tenant is in Default,
if Landlord has not terminated this Lease by written notice and if Tenant requests Landlord’s consent to an assignment of
this Lease or a sublease of the Premises, subject to Landlord’s option to recapture pursuant to Section 10.02, Landlord
shall not unreasonably withhold its consent to such assignment or sublease. Tenant acknowledges and agrees that the provisions
of Article Ten shall be deemed to constitute reasonable limitations of Tenant’s right to assign or sublet. Tenant acknowledges
and agrees that in the absence of written notice pursuant to Section 11.02(b) above terminating Tenant’s right to possession,
no other act of Landlord shall constitute a termination of Tenant’s right to possession or an acceptance of Tenant’s
surrender of the Premises, including acts of maintenance or preservation or efforts to relet the Premises or the appointment of
a receiver upon initiative of Landlord to protect Landlord’s interest under this Lease or the withholding of consent to
a subletting or assignment, or terminating a subletting or assignment, if in accordance with other provisions of this Lease.

 

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(d) In
the event that Landlord seeks an injunction with respect to a breach or threatened breach by Tenant of any of the covenants, conditions
or provisions of this Lease, Tenant agrees to pay the premium for any bond required in connection with such injunction.

 

(e) Tenant
hereby waives any and all rights to relief from forfeiture, redemption or reinstatement granted by Law (including California Civil
Code of Procedure Sections 1174 and 1179) in the event of Tenant being evicted or dispossessed for any cause or in the event of
Landlord obtaining possession of the Premises by reason of Tenant’s Default or otherwise;

 

When
this Lease requires giving or service of a notice of Default or of a failure of Tenant to observe or perform any covenant, condition
or provision of this Lease which will constitute a Default unless Tenant so observes or performs within any applicable cure period,
and so long as the notice given or served provides Tenant the longer of any applicable cure period required by this Lease or by
statute, then the giving of any equivalent or similar statutory notice, including any equivalent or similar notices required by
California Code of Civil Procedure Section 1161 or any similar or successor statute, shall replace and suffice as any notice required
under this Lease. When a statute requires service of a notice in a particular manner, service of that notice (or a similar notice
required by this Lease) in the manner required by Article Twenty-four shall replace and satisfy the statutory service—of—notice
procedures, except that any notice of unlawful detainer required by California Code of Civil Procedure Section 1161 or any similar
or successor statute shall be served as required by Code of Civil Procedure Section 1162 or any similar or successor statute,
and for purposes of Code of Civil Procedure Section 1162 or any similar or successor statute, Tenant’s “place of residence”
and “usual place of business” shall mean the address specified by Tenant for notice pursuant to Section 1.01 of this
Lease, as changed by Tenant pursuant to Article Twenty-four of this Lease.

 

(f) The
voluntary or other surrender or termination of this Lease, or a mutual termination or cancellation thereof, shall not work a merger
and shall terminate all or any existing assignments, subleases, subtenancies or occupancies permitted by Tenant, except if and
as otherwise specified in writing by Landlord.

 

(g) No
delay or omission in the exercise of any right or remedy of Landlord upon any default by Tenant, and no exercise by Landlord of
its rights pursuant to Section 25.15 to perform any duty which Tenant fails timely to perform, shall impair any right or remedy
or be construed as a waiver. No provision of this Lease shall be deemed waived by Landlord unless such waiver is in a writing
signed by Landlord. The waiver by Landlord of any breach of any provision of this Lease shall not be deemed a waiver of any subsequent
breach of the same or any other provision of this Lease.

 

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11.03 ATTORNEY’S
FEES

 

Tenant
shall be liable for, and shall pay upon demand, all costs and expenses, including reasonable attorneys’ fees, incurred by
Landlord in enforcing Tenant’s performance of its obligations under this Lease, or resulting from Tenant’s Default
(regardless of whether suit is initiated), or incurred by Landlord in any litigation, negotiation or transaction in which Tenant
causes Landlord, without Landlord’s fault, to become involved or concerned.

 

11.04 BANKRUPTCY

 

The
following provisions shall apply in the event of the bankruptcy or insolvency of Tenant:

 

(a) In
connection with any proceeding under Chapter 7 of the Bankruptcy Code where the trustee of Tenant elects to assume this Lease
for the purposes of assigning it, such election or assignment, may only be made upon compliance with the provisions of (b) and
(c) below, which conditions Landlord and Tenant acknowledge to be commercially reasonable. In the event the trustee elects to
reject this Lease then Landlord shall immediately be entitled to possession of the Premises without further obligation to Tenant
or the trustee.

 

(b) Any
election to assume this Lease under Chapter 11 or 13 of the Bankruptcy Code by Tenant as debtor-in-possession or by Tenant’s
trustee (the “Electing Party”) must provide for:

 

The
Electing Party to cure or provide to Landlord adequate assurance that it will cure all monetary defaults under this Lease within
fifteen (15) days from the date of assumption and it will cure all nonmonetary defaults under this Lease within thirty (30) days
from the date of assumption. Landlord and Tenant acknowledge such condition to be commercially reasonable.

 

(c) If
the Electing Party has assumed this Lease or elects to assign Tenant’s interest under this Lease to any other person, such
interest may be assigned only if the intended assignee has provided adequate assurance of future performance (as herein defined),
of all of the obligations imposed on Tenant under this Lease.

 

For
the purposes hereof, “adequate assurance of future performance” means that Landlord has ascertained that each
of the following conditions has been satisfied:

 

(i) The
assignee has submitted a current financial statement, certified by its chief financial officer, which shows a net worth and working
capital in amounts sufficient to assure the future performance by the assignee of Tenant’s obligations under this Lease;
and

 

(ii) Landlord
has obtained consents or waivers from any third parties which may be required under a lease, mortgage, financing arrangement,
or other agreement by which Landlord is bound, to enable Landlord to permit such assignment.

 

(d) Landlord’s
acceptance of rent or any other payment from any trustee, receiver, assignee, person, or other entity will not be deemed to have
waived, or waive, the requirement of Landlord’s consent, Landlord’s right to terminate this Lease for any transfer
of Tenant’s interest under this Lease without such consent, or Landlord’s claim for any amount of Rent due from Tenant.

 

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11.05 LANDLORD’S
DEFAULT

 

Landlord
shall be in default hereunder in the event Landlord has not begun and pursued with reasonable diligence the cure of any failure
of Landlord to meet its obligations hereunder within thirty (30) days after the receipt by Landlord of written notice from Tenant
of the alleged failure to perform. In no event shall Tenant have the right to terminate or rescind this Lease as a result of Landlord’s
default as to any covenant or agreement contained in this Lease. Tenant hereby waives such remedies of termination and rescission
and hereby agrees that Tenant’s remedies for default hereunder and for breach of any promise or inducement shall be limited
to a suit for damages and/or injunction. In addition, Tenant hereby covenants that, prior to the exercise of any such remedies,
it will give the Mortgagee notice and a reasonable time to cure any default by Landlord.

 

Article
Twelve

SURRENDER OF PREMISES

 

12.01 IN
GENERAL

 

Upon
the Termination Date, Tenant shall surrender and vacate the Premises immediately and deliver possession thereof to Landlord in
a clean, good and tenantable condition, ordinary wear and tear, and damage caused by Landlord excepted. Tenant shall deliver to
Landlord all keys to the Premises. Tenant shall remove from the Premises all movable personal property of Tenant and Tenant’s
trade fixtures, including, subject to Section 6.04, cabling for any of the foregoing. Tenant shall be entitled to remove such
Tenant Additions which at the time of their installation Landlord and Tenant agreed may be removed by Tenant. Tenant shall also
remove such other Tenant Additions as required by Landlord, including any Tenant Additions containing Hazardous Material. Tenant
immediately shall repair all damage resulting from removal of any of Tenant’s property, furnishings or Tenant Additions,
shall close all floor, ceiling and roof openings and ‘shall restore the Premises to a tenantable condition as reasonably
determined by Landlord. If any of the Tenant Additions which were installed by Tenant involved the lowering of ceilings, raising
of floors or the installation of specialized wall or floor coverings or lights, then Tenant shall also be obligated to return
such surfaces to their condition prior to the commencement of this Lease. Tenant shall also be required to close any staircases
or other openings between floors. Notwithstanding any of the foregoing to the contrary, if so requested by Tenant in writing (and
prominently in all capital and bold lettering which also states that such request is pursuant to Section 12.01 of the Lease) at
the time Tenant requests approval of any Tenant Work (or any changes thereto) or subsequent Tenant Alterations, Landlord shall
advise Tenant at the time of Landlord’s approval of such Tenant Work (or any changes thereto) or Tenant Alterations as to
whether Landlord will require that such Tenant Work or Tenant Alterations be removed by Tenant from the Premises; provided, however,
regardless of the foregoing, in any event, Landlord may require removal of any Tenant Additions containing Hazardous Material
and all Tenant’s trade fixtures, and, subject to Section 6.03, cabling and wiring installed for Tenant’s personal
property or trade fixtures. Notwithstanding anything to the contrary in this Lease, Tenant shall not be required to remove the
Restroom Work at the expiration or earlier termination of this Lease. In the event possession of the Premises is not delivered
to Landlord when required hereunder, or if Tenant shall fail to remove those items described above, Landlord may (but shall not
be obligated to), at Tenant’s expense, remove any of such property and store, sell or otherwise deal with such property
as provided in Section 11.02(b), including the waiver and indemnity obligations provided in that Section, and undertake, at Tenant’s
expense, such restoration work as Landlord deems necessary or advisable.

 

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12.02 LANDLORD’S
RIGHTS

 

Upon
the Termination Date, Tenant shall surrender and vacate the Premises immediately and deliver possession thereof to Landlord in
a clean, good and tenantable condition, ordinary wear and tear, and damage caused by Landlord (including, without limitation,
damage resulting from Landlord’s failure to satisfy its maintenance obligations hereunder), casualty and condemnation excepted.
Tenant shall also reimburse Landlord for all costs and expenses incurred by Landlord in removing any of Tenant Additions and in
restoring the Premises to the condition required by this Lease at the Termination Date.

 

Article
Thirteen

HOLDING OVER

 

Tenant
shall pay Landlord the greater of (i) one hundred fifty percent (150%) of the monthly Rent payable for the month immediately preceding
the holding over (including increases for Rent Adjustments which Landlord may reasonably estimate) or, (ii) one hundred fifty
percent (150%) of the fair market rental value of the Premises as reasonably determined by Landlord for each month or portion
thereof that Tenant retains possession of the Premises, or any portion thereof, after the Termination Date (without reduction
for any partial month that Tenant retains possession). Tenant shall also pay all damages sustained by Landlord by reason of such
retention of possession. The provisions of this Article shall not constitute a waiver by Landlord of any re-entry rights of Landlord
and Tenant’s continued occupancy of the Premises shall be as a tenancy in sufferance.

 

Article
Fourteen

DAMAGE BY FIRE OR OTHER CASUALTY

 

14.01 SUBSTANTIAL
UNTENANTABILITY

 

(a) If
any fire or other casualty (whether insured or uninsured) renders all or a substantial portion of the Premises, the Building or
the Project untenantable, Landlord shall, with reasonable promptness after the occurrence of such damage, estimate the length
of time that will be required to substantially complete the repair and restoration and shall by notice advise Tenant of such estimate
(“Landlord’s Notice”). If Landlord estimates that the amount of time required to substantially complete
such repair and restoration will exceed two hundred forty (240) days from the date such damage occurred, then Landlord, or Tenant,
if all or a substantial portion of the Premises is rendered untenantable, shall have the right to terminate this Lease as of the
date of such damage upon giving written notice to the other at any time within twenty (20) days after delivery of Landlord’s
Notice, provided that if Landlord so chooses, Landlord’s Notice may also constitute such notice of termination. If Landlord
has the right to terminate this Lease pursuant to this Section 14.01, Landlord agrees to exercise such right in a nondiscriminatory
fashion among leases affecting the Building. Consideration of the following factors in arriving at its decision shall not be deemed
discriminatory: length of term remaining on this Lease, time needed to repair and restore, costs of repair and restoration not
covered by insurance proceeds, Landlord’s plans to repair and restore common areas serving the Premises, Landlord’s
plans for repair and restoration of the Building, and other relevant factors of Landlord’s decision as long as they are
applied to Tenant in the same manner as other tenants.

 

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(b) Tenant
acknowledges that Landlord shall be entitled to the full proceeds of any insurance coverage, whether carried by Landlord or Tenant,
for damages to the Premises, except for those proceeds (“Tenant’s Personal Property Insurance Proceeds”)
of Tenant’s insurance of its own personal property and equipment which would be removable by Tenant at the Termination Date.
All such insurance proceeds (other than Tenant’s Personal Property Insurance Proceeds) shall be payable to Landlord whether
or not the Premises are to be repaired and restored, provided, however, if this Lease is not terminated and the parties proceed
to repair and restore Tenant Additions at Tenant’s cost, to the extent Landlord received proceeds of Tenant’s insurance
covering Tenant Additions, such proceeds shall be applied to reimburse Tenant for its cost of repairing and restoring Tenant Additions.

 

(c) Notwithstanding
anything to the contrary herein set forth: (i) Landlord shall have no duty pursuant to this Section to repair or restore any portion
of any Tenant Additions or to expend for any repair or restoration of the Premises or Building or Project amounts in excess of
insurance proceeds payable and available for repair or restoration, and if such proceeds are insufficient Landlord shall have
the right to terminate this Lease upon giving written notice to Tenant within a reasonable time after determining such proceeds
will be insufficient; and (ii) Tenant shall not have the right to terminate this Lease pursuant to this Section if any damage
or destruction was caused by the act or neglect of Tenant, its agent or employees. Whether or not the Lease is terminated pursuant
to this Article Fourteen, in no event shall Tenant be entitled to any compensation or damages for loss of the use of the whole
or any part of the Premises or for any inconvenience or annoyance occasioned by any such damage, destruction, rebuilding or restoration
of the Premises or the Building or access thereto, except as provided in Section 14.03 below.

 

(d) Unless
this Lease is terminated as provided in the preceding subparagraphs, Landlord shall proceed with reasonable promptness to repair
and restore the Premises to its condition as existed prior to such casualty, subject to reasonable delays for insurance adjustments
and Force Majeure delays, and also subject to zoning Laws and building codes then in effect. Landlord shall have no liability
to Tenant, and Tenant shall not be entitled to terminate this Lease if such repairs and restoration are not in fact completed
within the time period estimated by Landlord so long as Landlord shall proceed with reasonable diligence to complete such repairs
and restoration.

 

(e) In
addition, Tenant shall have the right to terminate this Lease if: (a) a substantial portion of the Premises has been damaged by
fire or other casualty and such damage cannot reasonably be repaired (as reasonably determined by Landlord pursuant to a notice
given to Tenant within sixty (60) days following the casualty) within one hundred twenty (120) days after the date of such casualty;
(b) there is less than fifteen (15) months of the Term remaining on the date of such casualty; (c) the casualty was not caused
by the gross negligence or willful misconduct of Tenant or its agents, employees or contractors; and (d) Tenant provides Landlord
with written notice of its intent to terminate within fifteen (15) days after the Landlord’s notice is delivered to Tenant
pursuant to subclause (a) above.

 

(f) Any
repair or restoration of the Premises performed by Tenant shall be in accordance with the provisions of Article Nine hereof.

 

14.02 INSUBSTANTIAL
UNTENANTABILITY

 

If
the Premises or the Building is damaged by a casualty but neither is rendered substantially untenantable and Landlord estimates
that the time to substantially complete the repair or restoration will not exceed two hundred forty (240) days from the date such
damage occurred, then Landlord shall proceed to repair and restore the Building or the Premises other than Tenant Additions, with
reasonable promptness, unless such damage is to the Premises and occurs during the last six (6) months of the Term, in which event
either Tenant or Landlord shall have the right to terminate this Lease as of the date of such casualty by giving written notice
thereof to the other within twenty (20) days after the date of such casualty. Notwithstanding the foregoing, Landlord’s
obligation to repair shall be limited in accordance with the provisions of Section 14.01 above.

 

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14.03 RENT
ABATEMENT

 

If
all or any part of the Premises are rendered untenantable by fire or other casualty and this Lease is not terminated, Monthly
Base Rent and Rent Adjustments shall abate for that part of the Premises which is untenantable on a per diem basis from the date
of the casualty until Landlord has Substantially Completed the repair and restoration work in the Premises which it is required
to perform, provided, that as a result of such casualty, Tenant does not occupy the portion of the Premises which is untenantable
during such period. The foregoing rent abatement shall not apply in the event the Premises are rendered untenantable by reason
of a fire or other casualty caused in whole or in part by the negligence or willful act of Tenant or its agents, employees, contractors
or invitees if such abatement would adversely affect Landlord’s or Tenant’s ability to collect under any of its insurance
policies providing coverage for rental or business interruptions.

 

14.04 WAIVER
OF STATUTORY REMEDIES

 

The
provisions of this Lease, including this Article Fourteen, constitute an express agreement between Landlord and Tenant with respect
to any and all damage to, or destruction of, the Premises or the Property or any part of either, and any Law, including Sections
1932(2), 1933(4), 1941 and 1942 of the California Civil Code, with respect to any rights or obligations concerning damage or destruction
shall have no application to this Lease or to any damage to or destruction of all or any part of the Premises or the Property
or any part of either, and are hereby waived.

 

Article
Fifteen

EMINENT DOMAIN

 

15.01 TAKING
OF WHOLE OR SUBSTANTIAL PART

 

In
the event the whole or any substantial part of the Premises, the Building or the Project is taken or condemned by any competent
authority for any public use or purpose (including a deed given in lieu of condemnation) and is thereby rendered untenantable,
this Lease shall terminate as of the date title vests in such authority, and Monthly Base Rent and Rent Adjustments shall be apportioned
as of the Termination Date. Notwithstanding anything to the contrary herein set forth, in the event the taking is temporary (for
less than the remaining term of the Lease), Landlord may elect either (i) to terminate this Lease or (ii) permit Tenant to receive
the entire award attributable to the Premises in which case Tenant shall continue to pay Rent and this Lease shall not terminate.

 

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15.02 TAKING
OF PART

 

In
the event a part of the Building or the Premises is taken or condemned by any competent authority (or a deed is delivered in lieu
of condemnation) and this Lease is not terminated, the Lease shall be amended to reduce or increase, as the case may be, the Monthly
Base Rent and Tenant’s Proportionate Share to reflect the Rentable Area of the Premises or Building, as the case may be,
remaining after any such taking or condemnation. Landlord, upon receipt and to the extent of the award in condemnation (or proceeds
of sale) shall make necessary repairs and restorations to the Premises (exclusive of Tenant Additions) and to the Building to
the extent necessary to constitute the portion of the Building not so taken or condemned as a complete architectural and economically
efficient unit. Notwithstanding the foregoing, if as a result of any taking, or a governmental order that the grade of any street
or alley adjacent to the Building is to be changed and such taking or change of grade makes it necessary or desirable to substantially
remodel or restore the Building or Project or prevents the economical operation of the Building or Project, Landlord shall have
the right to terminate this Lease upon ninety (90) days prior written notice to Tenant.

 

15.03 COMPENSATION

 

Landlord
shall be entitled to receive the entire award (or sale proceeds) from any such taking, condemnation or sale without any payment
to Tenant, and Tenant hereby assigns to Landlord Tenant’s interest, if any, in such award; provided, however, Tenant shall
have the right separately to pursue against the condemning authority a separate award in respect of the loss, if any, to Tenant
Additions paid for by Tenant without any credit or allowance from Landlord so long as there is no diminution of Landlord’s
award as a result.

 

Article
Sixteen

INSURANCE

 

16.01 TENANT’S
INSURANCE

 

Tenant,
at Tenant’s expense, agrees to maintain in force, with a company or companies acceptable to Landlord, during the Term: (a)
Commercial General Liability Insurance on a primary basis and without any right of contribution from any insurance carried by
Landlord covering the Premises on an occurrence basis against all claims for personal injury, bodily injury, death and property
damage, including contractual liability covering the indemnification provisions in this Lease. Such insurance shall be for such
limits that are reasonably required by Landlord from time to time but not less than a combined single limit of Five Million and
No/100 Dollars ($5,000,000.00); provided that such limit may be satisfied with a base policy together with an umbrella policy;
(b) Workers’ Compensation and Employers’ Liability Insurance to the extent required by and in accordance with the
Laws of the State of California; (c) “All Risks” property insurance in an amount adequate to cover the full replacement
cost of all Tenant Additions to the Premises, equipment, installations, fixtures and contents of the Premises in the event of
loss; (d) In the event a motor vehicle is to be used by Tenant in connection with its business operation from the Premises, Comprehensive
Automobile Liability Insurance coverage with limits of not less than Three Million and No/100 Dollars ($3,000,000.00) combined
single limit coverage against bodily injury liability and property damage liability arising out of the use by or on behalf of
Tenant, its agents and employees in connection with this Lease, of any owned, non-owned or hired motor vehicles; provided that
such limit may be satisfied with a base policy together with an umbrella policy; and (e) such other insurance or coverages as
Landlord reasonably requires.

 

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16.02 FORM
OF POLICIES

 

Each
policy referred to in 16.01 shall satisfy the following requirements. Each policy shall (i) name Landlord and the Indemnitees
as additional insureds (except Tenant’s property insurance for which Landlord will be named as a loss payee in respects
to the Tenant Improvements which become part of the Building, and Workers’ Compensation and Employers’ Liability Insurance),
(ii) be issued by one or more responsible insurance companies licensed to do business in the State of California reasonably satisfactory
to Landlord, (iii) where applicable, provide for deductible amounts satisfactory to Landlord and not permit co-insurance, (iv)
shall provide that such insurance may not be canceled or amended without thirty (30) days’ prior written notice to the Landlord,
and (v) each policy of “All-Risks” property insurance shall provide that the policy shall not be invalidated should
the insured waive in writing prior to a loss, any or all rights of recovery against any other party for losses covered by such
policies. Tenant shall deliver to Landlord, certificates of insurance and at Landlord’s request, copies of all policies
and renewals thereof to be maintained by Tenant hereunder, not less than ten (10) days prior to the Commencement Date. Tenant
shall use good faith commercially reasonable efforts to deliver to Landlord, certificates of insurance and at Landlord’s
request, copies of all renewals of such policies not less than ten (10) days prior to the expiration date of each policy, and
in all events shall deliver such copies of such renewals prior to the expiration date of each policy.

 

16.03 LANDLORD’S
INSURANCE

 

Landlord
agrees to purchase (or cause to be purchased) and keep in full force and effect (or cause to be kept in effect) during the Term
hereof, including any extensions or renewals thereof, insurance under policies issued by insurers of recognized responsibility,
qualified to do business in the State of California on the Building in amounts not less than the greater of eighty (80%) percent
of the then full replacement cost (without depreciation) of the Building (above foundations and excluding Tenant Additions to
the Premises) or an amount sufficient to prevent Landlord from becoming a co-insurer under the terms of the applicable policies,
against fire and such other risks as may be included in standard forms of all risk coverage insurance reasonably available from
time to time. Landlord agrees to maintain in force during the Term, Commercial General Liability Insurance covering the Building
on an occurrence basis against all claims for personal injury, bodily injury, death and property damage. Such insurance shall
be for a combined single limit of Five Million and No/100 Dollars ($5,000,000.00). Neither Landlord’s obligation to carry
such insurance nor the carrying of such insurance shall be deemed to be an indemnity by Landlord with respect to any claim, liability,
loss, cost or expense due, in whole or in part, to Tenant’s negligent acts or omissions or willful misconduct. Without obligation
to do so, Landlord may, in its sole discretion from time to time, carry insurance in amounts greater and/or for coverage additional
to the coverage and amounts set forth above.

 

16.04 WAIVER
OF SUBROGATION

 

(a) Landlord
agrees that, if obtainable at no, or minimal, additional cost (or at a cost that Tenant agrees to pay), and so long as the same
is permitted under the laws of the State of California, it will include in its “All Risks” policies appropriate clauses
pursuant to which the insurance companies (i) waive all rights of subrogation against Tenant with respect to losses payable under
such policies and/or (ii) agree that such policies shall not be invalidated should the insured waive in writing prior to a loss
any or all right of recovery against any party for losses covered by such policies.

 

(b) Tenant
agrees to include, if obtainable at no, or minimal, additional cost (or at a cost that Landlord agrees to pay), and so long as
the same is permitted under the laws of the State of California, in its “All Risks” insurance policy or policies on
Tenant Additions to the Premises, whether or not removable, and on Tenant’s furniture, furnishings, fixtures and other property
removable by Tenant under the provisions of this Lease appropriate clauses pursuant to which the insurance company or companies
(i) waive the rights of subrogation against Landlord and/or any tenant of space in the Building with respect to losses payable
under such policy or policies and/or (ii) agree that such policy or policies shall not be invalidated should the insured waive
in writing prior to a loss any or all right of recovery against any party for losses covered by such policy or policies. If Tenant
is unable to obtain in such policy or policies either of the clauses described in the preceding sentence, Tenant shall, if legally
possible and without necessitating a change in insurance carriers, have Landlord named in such policy or policies as an additional
insured. If Landlord shall be named as an additional insured in accordance with the foregoing, Landlord agrees to endorse promptly
to the order of Tenant, without recourse, any check, draft, or order for the payment of money representing the proceeds of any
such policy or representing any other payment growing out of or connected with said policies, and Landlord does hereby irrevocably
waive any and all rights in and to such proceeds and payments.

 

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(c) Provided
that Landlord’s right of full recovery under its policy or policies aforesaid is not adversely affected or prejudiced by
the waiver contained in the remaining provisions of this sentence, Landlord hereby waives any and all right of recovery which
it might otherwise have against Tenant, its servants, agents and employees, for loss or damage occurring to the Real Property
and the fixtures, appurtenances and equipment therein, except Tenant Additions, to the extent the same is coverable by Landlord’s
insurance required under this Lease (even if Landlord fails to carry such required insurance), notwithstanding that such loss
or damage may result from the negligence or fault of Tenant, its servants, agents or employees. Provided that Tenant’s right
of full recovery under its aforesaid policy or policies is not adversely affected or prejudiced by the waiver contained in the
remaining provisions of this sentence, Tenant hereby waives any and all right of recovery which it might otherwise have against
Landlord, its servants, and employees and against every other tenant of the Real Property who shall have executed a similar waiver
in favor of Tenant as set forth in this Section 16.04 (c) for loss or damage to Tenant Additions, whether or not removable, and
to Tenant’s furniture, furnishings, fixtures and other property removable by Tenant under the provisions hereof to the extent
the same is coverable by Tenant’s insurance required under this Lease (even if Tenant fails to carry such required insurance),
notwithstanding that such loss or damage may result from the negligence or fault of Landlord, its servants, agents or employees,
or such other tenant and the servants, agents or employees thereof. Notwithstanding anything to the contrary in this Lease, this
Section 16.04(c) shall apply in the case of any claim, loss or damage occurring to the Real Property and the fixtures, appurtenances
and equipment therein (except Tenant Additions), to the extent the same is coverable by Landlord’s insurance required under
this Lease; provided, however, Landlord shall retain its rights of recovery under this Lease in the case of any claim, loss or
damage resulting from (i) the gross negligence or intentional or reckless misconduct of Tenant, its employees, agents (except
for contractors as set forth in (ii)), licensees, subtenants, or invitees, and (ii) the acts or omissions of any contractor or
sub-contractor of Tenant.

 

(d) Landlord
and Tenant hereby agree to advise the other promptly if the clauses to be included in their respective insurance policies pursuant
to subparagraphs (a) and (b) above cannot be obtained on the terms hereinbefore provided and thereafter to furnish the other with
a certificate of insurance or copy of such policies showing the naming of the other as an additional insured. Landlord and Tenant
hereby also agree to notify the other promptly of any cancellation or change of the terms of any such policy which would affect
such clauses or naming. All such policies which name both Landlord and Tenant as additional insureds shall, to the extent obtainable,
contain agreements by the insurers to the effect that no act or omission of any additional insured will invalidate the policy
as to the other additional insureds.

 

16.05 NOTICE
OF CASUALTY

 

Tenant
shall give Landlord notice in case of a fire or accident in the Premises promptly after Tenant is aware of such event.

 

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Article
Seventeen

WAIVER OF CLAIMS AND INDEMNITY

 

17.01 WAIVER
OF CLAIMS

 

To
the extent permitted by Law, Tenant releases the Indemnitees from, and waives all claims for, damage to person or property sustained
by the Tenant or any occupant of the Premises or the Property resulting directly or indirectly from any existing or future condition,
defect, matter or thing in and about the Premises or the Property, or any part of either, or any equipment or appurtenance therein,
or resulting from any accident in or about the Premises or the Property, or resulting directly or indirectly from any act or neglect
of any tenant or occupant of the Property or of any other person, including Landlord’s agents and servants, except to the
extent caused by the willful and wrongful act of any of the Indemnitees. If any such damage, whether to the Premises or the Property
or any part of either, or whether to Landlord or to other tenants in the Property, results from any act or neglect of Tenant,
its employees, servants, agents, contractors, invitees or customers, Tenant shall be liable therefor and Landlord may, at Landlord’s
option, repair such damage and Tenant shall, upon demand by Landlord, as payment of additional Rent hereunder, reimburse Landlord
within ten (10) days of demand for the total cost of such repairs, in excess of amounts, if any, paid to Landlord under insurance
covering such damages. Tenant shall not be liable for any such damage caused by its acts or neglect if Landlord or a tenant has
recovered the full amount of the damage from proceeds of insurance policies and the insurance company has waived its right of
subrogation against Tenant.

 

17.02 INDEMNITY
BY TENANT

 

To
the extent permitted by Law, Tenant hereby indemnifies, and agrees to protect, defend and hold the Indemnitees harmless, against
any and all actions, claims, demands, liability, costs and expenses, including attorneys’ fees and expenses for the defense
thereof, arising from Tenant’s occupancy of the Premises, from the undertaking of any Tenant Additions or repairs to the
Premises, from the conduct of Tenant’s business on the Premises, or from any breach or default on the part of Tenant in
the performance of any covenant or agreement on the part of Tenant to be performed pursuant to the terms of this Lease, or from
any willful act or negligence of Tenant, its agents, contractors, servants, employees, customers or invitees, in or about the
Premises or the Property or any part of either. In case of any action or proceeding brought against the Indemnitees by reason
of any such claim, upon notice from Landlord, Tenant covenants to defend such action or proceeding by counsel chosen by Landlord,
in Landlord’s sole discretion. Landlord reserves the right to settle, compromise or dispose of any and all actions, claims
and demands related to the foregoing indemnity. The foregoing indemnity shall not operate to relieve Indemnitees of liability
to the extent such liability is caused by the willful and wrongful act of Indemnitees. Further, the foregoing indemnity is subject
to and shall not diminish any waivers in effect in accordance with Section 16.04 by Landlord or its insurers to the extent of
amounts, if any, paid to Landlord under its “All-Risks” property insurance.

 

17.03 WAIVER
OF CONSEQUENTIAL DAMAGES

 

To
the extent permitted by law, Tenant hereby waives and releases the Indemnitees from any consequential damages, compensation or
claims for inconvenience or loss of business, rents or profits as a result of any injury or damage, whether or not caused by the
willful and wrongful act of any of the Indemnitees.

 

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Article
Eighteen

RULES AND REGULATIONS

 

18.01 RULES

 

Tenant
agrees for itself and for its subtenants, employees, agents, and invitees to comply with the rules and regulations listed on Exhibit
C attached hereto and with all modifications and additions thereto which Landlord may make from time to time in writing. If
there is a conflict between this Lease and any rules and regulations enacted after the date of this Lease, the terms of this Lease
shall control.

 

18.02 ENFORCEMENT

 

Nothing
in this Lease shall be construed to impose upon the Landlord any duty or obligation to enforce the rules and regulations as set
forth on Exhibit C or as hereafter adopted, or the terms, covenants or conditions of any other lease as against any other
tenant, and the Landlord shall not be liable to the Tenant for violation of the same by any other tenant, its servants, employees,
agents, visitors or licensees.

 

Article
Nineteen

LANDLORD’S RESERVED RIGHTS

 

Subject
to Section 7.02(b), Landlord shall have the following rights exercisable without notice to Tenant and without liability to Tenant
for damage or injury to persons, property or business and without being deemed an eviction or disturbance of Tenant’s use
or possession of the Premises or giving rise to any claim for offset or abatement of Rent: (1) to change the Project’s name
or street address upon thirty (30) days’ prior written notice to Tenant; (2) to install, affix and maintain all signs on
the exterior and/or interior of the Building or Project (excluding Tenant’s signage in the Premises); (3) to designate and/or
approve prior to installation, all types of signs, window shades, blinds, drapes, awnings or other similar items, and all internal
lighting that may be visible from the exterior of the Premises; (4) upon reasonable notice to Tenant, to display the Premises
to prospective purchasers at reasonable hours at any time during the Term and to prospective tenants at reasonable hours during
the last twelve (12) months of the Term; (5) to grant to any party the exclusive right to conduct any business or render any service
in or to the Building or Project, provided such exclusive right shall not operate to prohibit Tenant from using the Premises for
the purpose permitted hereunder; (6) to change the arrangement and/or location of entrances or passageways, doors and doorways,
corridors, elevators, stairs, washrooms or public portions of the Building or Project, and to close entrances, doors, corridors,
elevators or other facilities, provided that such action shall not materially and adversely interfere with Tenant’s access
to the Premises or the Building; (7) to have access for Landlord and other tenants of the Project to any mail chutes and boxes
located in or on the Premises as required by any applicable rules of the United States Post Office; and (8) to close the Project
after Standard Operating Hours, except that Tenant and its employees and invitees shall be entitled to admission at all times,
under such regulations as Landlord prescribes for security purposes.

 

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Article
Twenty

ESTOPPEL CERTIFICATE

 

20.01 IN
GENERAL

 

Within
fifteen (15) days after request therefor by Landlord, Mortgagee or any prospective mortgagee or owner, Tenant agrees as directed
in such request to execute an Estoppel Certificate in recordable form, binding upon Tenant, certifying (i) that this Lease is
unmodified and in full force and effect (or if there have been modifications, a description of such modifications and that this
Lease as modified is in full force and effect); (ii) the dates to which Rent has been paid; (iii) that Tenant is in the possession
of the Premises if that is the case; (iv) that Landlord is not in default under this Lease, or, if Tenant believes Landlord is
in default, the nature thereof in detail; (v) that Tenant has no offsets or defenses to the performance of its obligations under
this Lease (or if Tenant believes there are any offsets or defenses, a full and complete explanation thereof); (vi) that the Premises
have been completed in accordance with the terms and provisions hereof, that Tenant has accepted the Premises and the condition
thereof and of all improvements thereto and has no claims against Landlord or any other party with respect thereto; (vii) that
if an assignment of rents or leases has been served upon the Tenant by a Mortgagee, Tenant will acknowledge receipt thereof and
agree to be bound by the provisions thereof; (viii) that Tenant will give to the Mortgagee copies of all notices required or permitted
to be given by Tenant to Landlord; and (ix) to any other information reasonably requested.

 

20.02 ENFORCEMENT

 

In
the event that Tenant fails to deliver an Estoppel Certificate within three (3) business days after written notice that the same
is past due, then such failure shall be a Default for which there shall be no additional cure or grace period. In addition to
any other remedy available to Landlord, Landlord may impose a charge equal to $500.00 for each day that Tenant fails to deliver
an Estoppel Certificate.

 

Article
Twenty-one

INTENTIONALLY OMITTED

 

Article
Twenty-two

REAL ESTATE BROKERS

 

Tenant
represents that, except for the broker(s) listed in Section 1.01(15), Tenant has not dealt with any real estate broker, sales
person, or finder in connection with this Lease, and no such person initiated or participated in the negotiation of this Lease,
or showed the Premises to Tenant. Landlord represents that, except for the broker(s) listed in Section 1.01(15), Landlord has
not dealt with any real estate broker, sales person, or finder in connection with this Lease, and no such person initiated or
participated in the negotiation of this Lease, or showed the Premises to Tenant. Landlord and Tenant each hereby agrees to indemnify,
protect, defend and hold the other party, harmless from and against any and all liabilities and claims for commissions and fees
arising out of a breach of the foregoing representation. Landlord agrees to pay any commission to which Landlord’s Broker
listed in Section 1.01(15) is entitled in connection with this Lease pursuant to Landlord’s written agreement with such
broker. Landlord and Tenant agree that any commission payable to Tenant’s Broker shall be paid by Tenant except to the extent
Tenant’s Broker and Landlord’s Broker have entered into a separate agreement between themselves to share the commission
paid to Landlord’s Broker by Landlord

 

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Article
Twenty-three

MORTGAGEE PROTECTION

 

23.01 SUBORDINATION
AND ATTORNMENT

 

This
Lease is and shall be expressly subject and subordinate at all times to (i) any ground or underlying lease of the Real Property,
now or, provided the applicable ground lessor tenders a commercially reasonable non-disturbance agreement to Tenant, hereafter
existing, and all amendments, extensions, renewals and modifications to any such lease, and (ii) the lien of any mortgage or trust
deed now or, provided the Mortgagee tenders a commercially reasonable non-disturbance agreement to Tenant, hereafter encumbering
fee title to the Real Property and/or the leasehold estate under any such lease, and all amendments, extensions, renewals, replacements
and modifications of such mortgage or trust deed and/or the obligation secured thereby, unless such ground lease or ground lessor,
or mortgage, trust deed or Mortgagee, expressly provides or elects that the Lease shall be superior to such lease or mortgage
or trust deed. If any such mortgage or trust deed is foreclosed (including any sale of the Real Property pursuant to a power of
sale), or if any such lease is terminated, upon request of the Mortgagee or ground lessor, as the case may be, Tenant shall attorn
to the purchaser at the foreclosure sale or to the ground lessor under such lease, as the case may be, provided, however, that
such purchaser or ground lessor shall not be (i) bound by any payment of Rent for more than one (1) month in advance except payments
in the nature of security for the performance by Tenant of its obligations under this Lease; (ii) subject to any offset, defense
or damages arising out of a default of any obligations of any preceding Landlord; or (iii) bound by any amendment or modification
of this Lease made without the written consent of the Mortgagee or ground lessor; or (iv) liable for any security deposits not
actually received in cash by such purchaser or ground lessor. This subordination shall be self-operative and no further certificate
or instrument of subordination need be required by any such Mortgagee or ground lessor. In confirmation of such subordination,
however, Tenant shall execute promptly any reasonable certificate or instrument that Landlord, Mortgagee or ground lessor may
request. Upon request by such successor in interest, Tenant shall execute and deliver reasonable instruments confirming the attornment
provided for herein.

 

23.02 MORTGAGEE
PROTECTION

 

Tenant
agrees to give any Mortgagee or ground lessor, by registered or certified mail, a copy of any notice of default served upon the
Landlord by Tenant, provided that prior to such notice Tenant has received notice (by way of service on Tenant of a copy of an
assignment of rents and leases, or otherwise) of the address of such Mortgagee or ground lessor. Tenant further agrees that if
Landlord shall have failed to cure such default within the time provided for in this Lease, then the Mortgagee or ground lessor
shall have an additional thirty (30) days after receipt of notice thereof within which to cure such default or if such default
cannot be cured within that time, then such additional notice time as may be necessary, if, within such thirty (30) days, any
Mortgagee or ground lessor has commenced and is diligently pursuing the remedies necessary to cure such default (including commencement
of foreclosure proceedings or other proceedings to acquire possession of the Real Property, if necessary to effect such cure).
Such period of time shall be extended by any period within which such Mortgagee or ground lessor is prevented from commencing
or pursuing such foreclosure proceedings or other proceedings to acquire possession of the Real Property by reason of Landlord’s
bankruptcy. Until the time allowed as aforesaid for Mortgagee or ground lessor to cure such defaults has expired without cure,
Tenant shall have no right to, and shall not, terminate this Lease on account of default. Except as expressly provided in Rider
2, this Lease may not be modified or amended so as to reduce the Rent or shorten the Term, or so as to adversely affect in any
other respect to any material extent the rights of the Landlord, nor shall this Lease be canceled or surrendered, without the
prior written consent, in each instance, of the ground lessor or the Mortgagee.

 

    42

     

    

  

Article
Twenty-four

NOTICES

 

(a) All
notices, demands or requests provided for or permitted to be given pursuant to this Lease must be in writing and shall be personally
delivered, sent by Federal Express or other reputable overnight courier service, or mailed by first class, registered or certified
United States mail, return receipt requested, postage prepaid.

 

(b) All
notices, demands or requests to be sent pursuant to this Lease shall be deemed to have been properly given or served by delivering
or sending the same in accordance with this Section, addressed to the parties hereto at their respective addresses listed in Sections
1.01(2) and (3).

 

(c) Notices,
demands or requests sent by mail or overnight courier service as described above shall be effective upon deposit in the mail or
with such courier service. However, the time period in which a response to any such notice, demand or request must be given shall
commence to run from (i) in the case of delivery by mail, the date of receipt on the return receipt of the notice, demand or request
by the addressee thereof, or (ii) in the case of delivery by Federal Express or other overnight courier service, the date of acceptance
of delivery by an employee, officer, director or partner of Landlord or Tenant. Rejection or other refusal to accept or the inability
to deliver because of changed address of which no notice was given, as indicated by advice from Federal Express or other overnight
courier service or by mail return receipt, shall be deemed to be receipt of notice, demand or request sent. Notices may also be
served by personal service upon any officer, director or partner of Landlord or Tenant, and shall be effective upon such service.

 

(d) By
giving to the other party at least thirty (30) days written notice thereof, either party shall have the right from time to time
during the term of this Lease to change their respective addresses for notices, statements, demands and requests, provided such
new address shall be within the United States of America.

 

Article
Twenty-five

OFAC

 

Landlord
advises Tenant hereby that the purpose of this Article is to provide to the Landlord information and assurances to enable Landlord
to comply with the law relating to OFAC.

 

Tenant
hereby represents, warrants and covenants to Landlord, either that (i) Tenant is regulated by the SEC, FINRA or the Federal Reserve
(a “Regulated Entity”) or (ii) neither Tenant nor any person or entity that directly or indirectly (a) controls
Tenant or (b) has an ownership interest in Tenant of twenty-five percent (25%) or more, appears on the list of Specially Designated
Nationals and Blocked Persons (“OFAC List”) published by the Office of Foreign Assets Control (“OFAC”)
of the U.S. Department of the Treasury.

 

    43

     

    

  

If,
in connection with this Lease, there is one or more Guarantors of Tenant’s obligations under this Lease, then Tenant further
represents, warrants and covenants either that (i) any such Guarantor is a Regulated Entity or (ii) neither Guarantor nor any
person or entity that directly or indirectly (a) controls such Guarantor or (b) has an ownership interest in such Guarantor of
twenty-five percent (25%) or more, appears on the OFAC List.

 

Tenant
covenants that during the term of this Lease to provide to Landlord information reasonably requested by Landlord including without
limitation, organizational structural charts and organizational documents which Landlord may deem to be necessary (“Tenant
OFAC Information”) in order for Landlord to confirm Tenant’s continuing compliance with the provisions of this
Article. Tenant represents and warrants that the Tenant OFAC Information it has provided or to be provided to Landlord or Landlord’s
Broker in connection with the execution of this Lease is true and complete.

 

Article
Twenty-six

MISCELLANEOUS

 

26.01 LATE
CHARGES

 

(a) The
Monthly Base Rent, Rent Adjustments and Rent Adjustment Deposits shall be due when and as specifically provided above. Except
for such payments and late charges described below, which late charge shall be due when provided below (without notice or demand),
and except as otherwise expressly provided in this Lease, all other payments required hereunder to Landlord shall be paid within
ten (10) business days after Landlord’s demand therefor. All Rent and charges, except late charges, not paid when due shall
bear interest from the date due until the date paid at the Default Rate in effect on the date such payment was due.

 

(b) In
the event Tenant is more than five (5) days late in paying any installment of Rent due under this Lease, Tenant shall pay Landlord
a late charge equal to five percent (5%) of the delinquent installment of Rent; provided, however, that no late charge shall apply
to the first instance of a late payment in each calendar year that is cured within five (5) days after Landlord’s written
demand therefor. The parties agree that (i) such delinquency will cause Landlord to incur costs and expenses not contemplated
herein, the exact amount of which will be difficult to calculate, including the cost and expense that will be incurred by Landlord
in processing each delinquent payment of rent by Tenant, (ii) the amount of such late charge represents a reasonable estimate
of such costs and expenses and that such late charge shall be paid to Landlord for each delinquent payment in addition to all
Rent otherwise due hereunder. The parties further agree that the payment of late charges and the payment of interest provided
for in subparagraph (a) above are distinct and separate from one another in that the payment of interest is to compensate Landlord
for its inability to use the money improperly withheld by Tenant, while the payment of late charges is to compensate Landlord
for its additional administrative expenses in handling and processing delinquent payments.

 

(c) Payment
of interest at the Default Rate and/or of late charges shall not excuse or cure any default by Tenant under this Lease, nor shall
the foregoing provisions of this Article or any such payments prevent Landlord from exercising any right or remedy available to
Landlord upon Tenant’s failure to pay Rent when due, including the right to terminate this Lease.

 

    44

     

    

  

26.02 NO
JURY TRIAL; VENUE; JURISDICTION

 

To
the extent permitted by Law, each party hereto (which includes any assignee, successor, heir or personal representative of a party)
shall not seek a jury trial, hereby waives trial by jury, and hereby further waives any objection to venue in the County in which
the Building is located, and agrees and consents to personal jurisdiction of the courts of San Francisco County, California, in
any action or proceeding or counterclaim brought by any party hereto against the other on any matter whatsoever arising out of
or in any way connected with this Lease, the relationship of Landlord and Tenant, Tenant’s use or occupancy of the Premises,
or any claim of injury or damage, or the enforcement of any remedy under any statute, emergency or otherwise, whether any of the
foregoing is based on this Lease or on tort law, and the courts of San Francisco County shall have exclusive jurisdiction over
all such matters. No party will seek to consolidate any such action in which a jury has been waived with any other action in which
a jury trial cannot or has not been waived. It is the intention of the parties that these provisions shall be subject to no exceptions.
By execution of this Lease the parties agree that this provision may be filed by any party hereto with the clerk or judge before
whom any action is instituted, which filing shall constitute the written consent to a waiver of jury trial pursuant to and in
accordance with Section 631 of the California Code of Civil Procedure. No party has in any way agreed with or represented to any
other party that the provisions of this Section will not be fully enforced in all instances. The provisions of this Section shall
survive the expiration or earlier termination of this Lease.

 

26.03 DEFAULT
UNDER OTHER LEASE

 

It
shall be a Default under this Lease if Tenant or any Affiliate holding any other lease with Landlord for premises in the Building
defaults under such lease and as a result thereof such lease is terminated or terminable.

 

26.04 OPTION

 

This
Lease shall not become effective as a lease or otherwise until executed and delivered by both Landlord and Tenant. The submission
of the Lease to Tenant does not constitute a reservation of or option for the Premises, but when executed by Tenant and delivered
to Landlord, the Lease shall constitute an irrevocable offer by Tenant in effect for fifteen (15) days to lease the Premises on
the terms and conditions herein contained.

 

26.05 TENANT
AUTHORITY

 

Landlord
and Tenant each represents and warrants to the other party that it has full authority and power to enter into and perform its
obligations under this Lease, that the person executing this Lease is fully empowered to do so, and that no consent or authorization
is necessary from any third party. Landlord may request that Tenant provide Landlord evidence of Tenant’s authority.

 

26.06 ENTIRE
AGREEMENT

 

This
Lease, the Exhibits and Rider(s) attached hereto contain the entire agreement between Landlord and Tenant concerning the Premises
and there are no other agreements, either oral or written, and no other representations or statements, either oral or written,
on which Tenant has relied. This Lease shall not be modified except by a writing executed by Landlord and Tenant.

 

    45

     

    

 

26.07 MODIFICATION
OF LEASE FOR BENEFIT OF MORTGAGEE

 

If
Mortgagee of Landlord requires a modification of this Lease which shall not result in any increased cost or expense to Tenant
or in any other substantial and adverse change in the rights and obligations of Tenant hereunder, then Tenant agrees that the
Lease may be so modified.

 

26.08 EXCULPATION

 

Tenant
agrees, on its behalf and on behalf of its successors and assigns, that any liability or obligation of Landlord in connection
with this Lease shall only be enforced against Landlord’s equity interest in the Property up to a maximum of Five Million
Dollars ($5,000,000.00) and in no event against any other assets of the Landlord, or Landlord’s officers or directors or
partners, and that any liability of Landlord with respect to this Lease shall be so limited and Tenant shall not be entitled to
any judgment in excess of such amount.

 

26.09 ACCORD
AND SATISFACTION

 

No
payment by Tenant or receipt by Landlord of a lesser amount than any installment or payment of Rent due shall be deemed to be
other than on account of the amount due, and no endorsement or statement on any check or any letter accompanying any check or
payment of Rent shall 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 installment or payment of Rent or pursue any other remedies available to
Landlord. No receipt of money by Landlord from Tenant after the termination of this Lease or Tenant’s right of possession
of the Premises shall reinstate, continue or extend the Term. Receipt or acceptance of payment from anyone other than Tenant,
including an assignee of Tenant, is not a waiver of any breach of Article Ten, and Landlord may accept such payment on account
of the amount due without prejudice to Landlord’s right to pursue any remedies available to Landlord.

 

26.10 LANDLORD’S
OBLIGATIONS ON SALE OF BUILDING

 

In
the event of any sale or other transfer of the Building, Landlord shall transfer any Security Deposit or Letter of Credit then
held by Landlord to such transferee and Landlord shall be entirely freed and relieved of all agreements and obligations of Landlord
hereunder accruing or to be performed after the date of such sale or transfer, and any remaining liability of Landlord with respect
to this Lease shall be limited to Five Million Dollars ($5,000,000.00) and Tenant shall not be entitled to any judgment in excess
of such amount.

 

26.11 BINDING
EFFECT

 

Subject
to the provisions of Article Ten, this Lease shall be binding upon and inure to the benefit of Landlord and Tenant and their respective
heirs, legal representatives, successors and permitted assigns.

 

26.12 CAPTIONS

 

The
Article and Section captions in this Lease are inserted only as a matter of convenience and in no way define, limit, construe,
or describe the scope or intent of such Articles and Sections.

 

    46

     

    

 

26.13 TIME;
APPLICABLE LAW; CONSTRUCTION

 

Time
is of the essence of this Lease and each and all of its provisions. This Lease shall be construed in accordance with the Laws
of the State of California. If more than one person is a party to this Lease as Tenant, the obligations hereunder imposed shall
be joint and several. If any term, covenant or condition of this Lease or the application thereof to any person or circumstance
shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term, covenant or condition
to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and
each item, covenant or condition of this Lease shall be valid and be enforced to the fullest extent permitted by Law. Wherever
the term “including” or “includes” is used in this Lease, it shall have the same meaning as if
followed by the phrase “but not limited to. The language in all parts of this Lease shall be construed according to its
normal and usual meaning and not strictly for or against either Landlord or Tenant.

 

26.14 ABANDONMENT

 

In
the event Tenant vacates or abandons the Premises but is otherwise in compliance with all the terms, covenants and conditions
of this Lease, Landlord shall (i) have the right to enter into the Premises in order to show the space to prospective tenants,
(ii) have the right to reduce the services provided to Tenant pursuant to the terms of this Lease to such levels as Landlord reasonably
determines to be adequate services for an unoccupied premises and (iii) during the last six (6) months of the Term, have the right
to prepare the Premises for occupancy by another tenant upon the end of the Term. Tenant expressly acknowledges that in the absence
of written notice pursuant to Section 11.02(b) or pursuant to California Civil Code Section 1951.3 terminating Tenant’s
right to possession, none of the foregoing acts of Landlord or any other act of Landlord shall constitute a termination of Tenant’s
right to possession or an acceptance of Tenant’s surrender of the Premises, and the Lease shall continue in effect.

 

26.15 LANDLORD’S
RIGHT TO PERFORM TENANT’S DUTIES

 

If
Tenant fails timely to perform any of its duties under this Lease, Landlord shall have the right (but not the obligation), to
perform such duty on behalf and at the expense of Tenant without prior notice to Tenant, and all sums expended or expenses incurred
by Landlord in performing such duty shall be deemed to be additional Rent under this Lease and shall be due and payable upon demand
by Landlord.

 

26.16 SECURITY
SYSTEM

 

Landlord
shall not be obligated to provide or maintain any security patrol or security system. Landlord shall not be responsible for the
quality of any such patrol or system which may be provided hereunder or for damage or injury to Tenant, its employees, invitees
or others due to the failure, action or inaction of such patrol or system.

 

26.17 NO
LIGHT, AIR OR VIEW EASEMENTS

 

Any
diminution or shutting off of light, air or view by any structure which may be erected on lands of or adjacent to the Project
shall in no way affect this Lease or impose any liability on Landlord.

 

    47

     

    

 

26.18 RECORDATION

 

Neither
this Lease, nor any notice nor memorandum regarding the terms hereof, shall be recorded by Tenant. Any such unauthorized recording
shall be a Default for which there shall be no cure or grace period. Tenant agrees to execute and acknowledge, at the request
of Landlord, a memorandum of this Lease, in recordable form.

 

26.19 SURVIVAL

 

The
waivers of the right of jury trial, the other waivers of claims or rights, the releases and the obligations of Tenant under this
Lease to indemnify, protect, defend and hold harmless Landlord and/or Indemnitees shall survive the expiration or termination
of this Lease, and so shall all other obligations or agreements which by their terms survive expiration or termination of the
Lease.

 

26.20 EXHIBITS
OR RIDERS

 

All
Exhibits, Riders and/or addenda referred to in this Lease as an Exhibit, Rider, or addenda hereto, or attached hereto, are hereby
incorporated into and made a part of this Lease.

 

26.21 ELECTRICAL
USAGE INFORMATION

 

If
Tenant is billed directly by a public utility with respect to Tenant’s electrical usage at the Premises, then, upon request,
Tenant shall provide monthly electrical utility usage for the Premises to Landlord for the period of time requested by Landlord
(in electronic or paper format) or, at Landlord’s option, provide any written authorization or other documentation required
for Landlord to request information regarding Tenant’s electricity usage with respect to the Premises directly from the
applicable utility company.

 

26.22 DISCLOSURE
REGARDING CERTIFIED ACCESS SPECIALIST

 

Pursuant
to California Civil Code Section 1938, Landlord hereby notifies Tenant that as of the date of this Lease, the Premises has not
undergone inspection by a “Certified Access Specialist” (“CASp”) to determine whether the Premises
meet all applicable construction-related accessibility standards under California Civil Code Section 55.53. Landlord hereby discloses
pursuant to California Civil Code Section 1938 as follows: “A Certified Access Specialist (CASp) can inspect the subject
premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards
under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner
or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or
potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements
for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs
necessary to correct violations of construction-related accessibility standards within the premises.” Landlord and Tenant
hereby acknowledge and agree that in the event that Tenant elects to perform a CASp inspection of the Premises hereunder (the
“Inspection”), such Inspection shall be (a) performed at Tenant’s sole cost and expense, (b) limited
to the Premises and (c) performed by a CASp who has been approved or designated by Landlord prior to the Inspection. Any Inspection
must be performed in a manner which minimizes the disruption of business activities in the Building, and at a time reasonably
approved by Landlord. Landlord reserves the right to be present during the Inspection. Tenant agrees to: (i) promptly provide
to Landlord a copy of the report or certification prepared by the CASp inspector upon request (the “Report”),
(ii) keep the information contained in the Report confidential, except to the extent required by Law, or to the extent disclosure
is needed in order to complete any necessary modifications or improvements required to comply with all applicable accessibility
standards under state or federal Law, as well as any other repairs, upgrades, improvements, modifications or alterations required
by the Report or that may be otherwise required to comply with applicable Laws or accessibility requirements (the “Access
Improvements”). If Tenant elects to perform an Inspection, Tenant shall be solely responsible for the cost of Access
Improvements to the Premises or the Building necessary to correct any such violations of construction-related accessibility standards
identified by such Inspection as required by Law, which Access Improvements may, at Landlord’s option, be performed in whole
or in part by Landlord at Tenant’s expense, payable as additional rent within ten (10) days following Landlord’s demand.

 

    48

     

    

  

Article
Twenty-seven

HAZARDOUS SUBSTANCES DISCLOSURE

 

California
law requires landlords to disclose to tenants the existence of certain hazardous substances. Accordingly, Tenant is hereby notified
of the existence of asbestos containing materials (“ACM”). Certain areas of the Building contain ACM, but these
areas are generally inaccessible to tenants, such as machinery rooms, inside of sealed walls and above suspended ceilings. Tenant
agrees not to expose or disturb any ACM unless Landlord has given Tenant prior written consent thereto and Tenant complies with
all Laws and the Building’s written procedures for handling ACM. Tenant may obtain a copy of the Building’s written
procedures for handling asbestos from the Building office.

 

IN
WITNESS WHEREOF, this Lease has been executed as of the date set forth in Section 1.01(4) hereof.

 

	TENANT:	 	LANDLORD:
	 	 	 	 
	METROMILE,
    INC.,	 	425
    MKT REIT, LLC,
	a
    Delaware corporation	 	a
    Delaware limited liability company
	 	 	 	 
	By	/s/
    Carrie Dolan	 	By	/s/
    Leland Low
	 	 	 	 	 
	 	Carrie
    Dolan	 	 	 Leland
    Low
	 	Print
    name	 	 	Print
    name
	 	 	 	 	 
	Its	CFO	 	 	 
	 	(Chairman
    of Board, President or Vice President)	 	Its	Authorized
    Signatory

 

	By	/s/
    Jason Altieri	 
	 		 
	 	Jason
    Altieri	 
		Print name	 
	 	 	 
	Its	Secretary	 
	 	(Secretary, Assistant Secretary, CFO or Assistant
    Treasurer)	 

 

    49

     

    

 

EXHIBIT
A

 

PLAN
OF PREMISES

 

    Exhibit A – Page 1

     

    

 

EXHIBIT
B

WORK
LETTER AGREEMENT

(TENANT
BUILD)

 

This
Workletter Agreement (“Workletter”) is attached to and a part of a certain Office Lease by and between 425
MKT REIT, LLC, a Delaware limited liability company, as Landlord, and METROMILE, INC., a Delaware corporation, as Tenant, for
the Premises (the “Lease”). Terms used herein and not defined herein shall have the meaning of such terms as
defined elsewhere in the Lease. For purposes of this Workletter, references to “State” and “City”
shall mean the State and City in which the Building is located.

 

1. AS
IS Condition; Delivery.

 

Landlord
shall deliver the Premises broom clean in its current “as built” configuration with existing build-out of the tenant
space, with the Premises and the Building (including the “Base Building”, as defined below) in their AS IS
condition, without any express or implied representations or warranties of any kind by Landlord, its brokers, manager or agents,
or the employees of any of them; and Landlord shall not have any obligation to construct or install any tenant improvements or
alterations or to pay for any such construction or installation except to the extent expressly provided in this Workletter. For
purposes hereof, the “Base Building” (sometimes also referred to as the “Base Building Work”)
shall mean the improvements made and work performed during the Building’s initial course of construction and modifications
thereto, excluding all original and modified build-outs of any tenant spaces.

 

Tenant
shall notify Landlord in writing within thirty (30) days after the later of Substantial Completion of the Landlord Work or when
Tenant takes possession of the Premises of any defects in the Premises or in the materials or workmanship furnished by Landlord
in completing the Landlord Work or failure of the Landlord Work to be in accordance with the Construction Drawings (“Defects”).
Except for Defects stated in such notice and Latent Defects (defined below) of which Tenant gives Landlord notice within ninety
(90) days after Substantial Completion of Landlord Work, Tenant shall be conclusively deemed to have accepted the Premises “AS
IS” in the condition existing on the date Tenant first takes possession, and to have waived all claims relating to the condition
of the Premises. Landlord shall proceed diligently to correct the Defects stated in such notice unless Landlord disputes the existence
of any such Defects. In the event of any dispute as to the existence of any such defects, the reasonable decision of Landlord’s
architect shall be final and binding on the parties. For purposes of this Lease, the “Latent Defects” shall
mean Defects which were not discoverable by reasonable inspection when the thirty (30) day notice was due. No agreement of Landlord
to alter, remodel, decorate, clean or improve the Premises or the Real Property and no representation regarding the condition
of the Premises or the Real Property has been made by or on behalf of Landlord to Tenant, except as may be specifically stated
in this Lease or in the Workletter.

 

2. Landlord
Work.

 

Notwithstanding
any of the foregoing to the contrary, subject to delays caused by Force Majeure (defined below) or Tenant Delay, Landlord, at
Landlord’s sole cost and expense, shall perform the “Landlord Work” (defined below) and deliver the Premises
to Tenant no later than the Projected Delivery Date (as defined Rider 2) in the “Delivery Condition”. “Delivery
Condition” shall mean the work set forth on Exhibit B-1 hereto (“Landlord Work”), shall be
Substantially Complete, and the Premises shall be in broom-clean condition with respect to Landlord Work, but Landlord shall not
be obligated to do any clean-up or refuse removal related to construction of Tenant Work. For purposes of this Workletter, “Force
Majeure” shall mean any accident, casualty, act of God, war or civil commotion, terrorism, strike or labor troubles,
or any cause whatsoever beyond the reasonable control of Landlord, including, without limitation, water shortages, energy shortages
or governmental preemption in connection with an act of God, a national emergency, or by reason of law, or by reason of the conditions
of supply and demand which have been or are affected by act of God, war or other emergency.

 

    Exhibit B – Page 1

     

    

 

3. Tenant’s
Plans.

 

3.1. Description.
At its expense, Tenant shall employ:

 

(i) one
or more architects approved by Landlord (which approval shall not be unreasonably withheld, conditioned or delayed) and licensed
by the State (“Tenant’s Architect”) to prepare architectural drawings and specifications for all layout
and Premises improvements not included in, or requiring any change or addition to, the AS IS condition or Landlord Work (Ware
Malcom, if used by Tenant as Tenant’s Architect, is consented to by Landlord);

 

(ii) either
of: (a) one or more engineers approved by Landlord (which approval shall not be unreasonably withheld, conditioned or delayed)
and licensed by the State (“Tenant’s Engineers”) to prepare mechanical, plumbing, sprinkler and electrical
working drawings and specifications for all Premises improvements not included in, or requiring any change or addition to, the
AS IS condition or Landlord Work (if any), or (b) the engineers designated by Landlord in response to a request from Tenant (“Landlord’s
Mechanical Engineer”, “Landlord’s Plumbing Engineer”, “Landlord’s Sprinkler
Engineer” and “Landlord’s Electrical Engineer”) to prepare mechanical and electrical working
drawings and specifications for all Premises improvements not included in, or requiring any change or addition to the AS IS condition
or Landlord Work (if any); and

 

(iii) the
structural engineer designated by Landlord and licensed by the State to prepare structural working drawings and specifications
for all Premises improvements not included in, or requiring any change or addition to the AS IS condition or Landlord Work (if
any) (Holmes Structures, as structural engineer, is hereby approved by Landlord).

 

All
such drawings and specifications are referred to herein as “Tenant’s Plans”. Tenant’s Plans shall
be in form and detail sufficient to secure all applicable governmental approvals. Tenant’s Architect shall be responsible
for coordination of all engineering work for Tenant’s Plans and shall coordinate with any consultants of Tenant (the use
of which is subject to Landlord’s consent, which consent shall not be unreasonably withheld, conditioned or delayed), and
Landlord’s space planner or architect to assure the consistency of Tenant’s Plans with the Base Building Work and
Landlord Work (if any).

 

    Exhibit B – Page 2

     

    

 

Tenant
shall pay Landlord, within ten (10) business days of receipt of each invoice from Landlord, the cost incurred by Landlord for
Landlord’s architects and engineers to review Tenant’s Plans for consistency of same with the Base Building Work and
Landlord Work; provided, however, that the foregoing cost shall not exceed Seven Thousand Five Hundred Dollars ($7,500.00) if
Tenant utilizes Landlord’s engineers to prepare Tenant’s Plans. Tenant’s Plans shall also include the following:

 

(a) Final
Space Plan: The “Final Space Plan” for the Premises shall include a full and accurate description of room titles,
floor loads, alterations to the Base Building or Landlord Work (if any) or requiring any change or addition to the AS IS condition,
and the dimensions and location of all partitions, doors, aisles, plumbing (and furniture and equipment to the extent same affect
floor loading). The Final Space Plan shall (i) be compatible with the design, construction, systems and equipment of the Base
Building and Landlord Work; (ii) comply with the requirements of Landlord and comply with the requirements of the owners(s) of
other condominium units applicable to the Common Areas and/or Project Areas (collectively, (i) and (ii) may be referred to as
“Building Standards”), (iii) comply with Laws, (iv) be capable of logical measurement and construction, and
(v) contain all such information as may be required for the preparation of the Mechanical and Electrical Working Drawings and
Specifications (including, without limitation, a capacity and usage report, from Landlord’s engineers pursuant to Section
3.1(b). below, for all mechanical and electrical systems in the Premises). Prior to submission to Landlord, the Final Space Plan
shall have been reviewed and approved by the City Building and Fire Departments, and shall be on file with the Building Department,
registered with a preliminary plan check number.

 

(b) Mechanical,
Plumbing, Sprinkler and Electrical Working Drawings and Specifications: Tenant shall employ engineers approved by Landlord ( which
approval shall not be unreasonably withheld, conditioned or delayed) to prepare Mechanical, Plumbing, Sprinkler and Electrical
Working Drawings and Specifications showing complete plans for electrical, life safety, automation, plumbing, water, and air cooling,
ventilating, heating and temperature control to the extent the Tenant Work would impact, modify or add to any of such systems.
Tenant shall employ Landlord’s Mechanical Engineer, Landlord’s Plumbing Engineer, Landlord’s Sprinkler Engineer
and Landlord’s Electrical Engineer to prepare a capacity and usage report (“Capacity Report”) for all
mechanical, plumbing, sprinkler and electrical systems in the Premises.

 

(c) Issued
for Construction Documents: The “Issued for Construction Documents” shall consist of all drawings (1/8”
scale) and specifications necessary to construct all Premises improvements including, without limitation, architectural and structural
working drawings and specifications and Mechanical and Electrical Working Drawings and Specifications and all applicable governmental
authorities plan check corrections.

 

3.2. Approval
by Landlord. Tenant’s Plans and any revisions thereof shall be subject to Landlord’s approval, which approval
or disapproval:

 

(i) shall
not be unreasonably withheld, provided however, that Landlord may disapprove Tenant’s Plans in its sole and absolute discretion
if they (a) adversely affect the structural integrity of the Building at the Project, (b) adversely affect any of the Building
Systems (as defined below), the Common Areas, Project Areas, or any other tenant space (whether or not currently occupied), (c)
fail to fully comply with Laws, (d) affect the exterior appearance of the Building at the Project, or (e) provide for improvements
which do not meet or exceed the Building Standards. Building Systems collectively shall mean the structural, electrical, mechanical
(including, without limitation, heating, ventilating and air conditioning), plumbing, fire and life-safety (including, without
limitation, fire protection system and any fire alarm), communication, utility, gas (if any), security (if any), and elevator
systems in the Building.

 

(ii) shall
not be delayed beyond ten (10) business days with respect to initial submissions and major change orders (those which impact Building
Systems or any other item listed in subpart (i) of Section 3.2 above) and beyond five (5) business days with respect to required
revisions and any other change orders.

 

    Exhibit B – Page 3

     

    

 

If
Landlord disapproves of any of Tenant’s Plans, Landlord shall advise Tenant of what Landlord disapproves in reasonable detail.
After being so advised by Landlord, Tenant shall submit a redesign, incorporating the revisions required by Landlord, for Landlord’s
approval. The approval procedure shall be repeated as necessary until Tenant’s Plans are ultimately approved. During the
foregoing approval procedure, Landlord shall notify Tenant of the extent to which Tenant will be responsible for removing the
Tenant Work, or any portion thereof, on or before the Termination Date. Approval by Landlord shall not be deemed to be a representation
or warranty by Landlord with respect to the safety, adequacy, correctness, efficiency or compliance with Laws of Tenant’s
Plans. Tenant shall be fully and solely responsible for the safety, adequacy, correctness and efficiency of Tenant’s Plans
and for the compliance of Tenant’s Plans with any and all Laws. Landlord shall advise Tenant at the time of Landlord’s
approval of such Tenant Work as to whether the Tenant Work can remain in the Premises following the expiration or earlier termination
of this Lease; provided, however, regardless of the foregoing, in any event, Landlord may require removal of (a) any Tenant Additions
containing Hazardous Material, (b) all Tenant’s trade fixtures, and (c) subject to Section 6.03 of the Lease, cabling and
wiring installed for Tenant’s personal property or trade fixtures. Notwithstanding the foregoing, it is agreed that other
than the items in subclauses (a), (b) and (c) in the preceding sentence, Tenant shall have no obligation to remove any standard
office improvements such as gypsum board, partitions, ceiling grids and tiles, fluorescent lighting panels, Building standard
doors and non-glued down carpeting.

 

3.3. Landlord
Cooperation. Landlord shall cooperate with Tenant and make good faith efforts to coordinate Landlord’s construction
review procedures to expedite the planning, commencement, progress and completion of Tenant Work. Landlord shall complete its
review of each stage of Tenant’s Plans and any revisions thereof and communicate the results of such review within the time
periods set forth in Section 3.2 above.

 

3.4. City
Requirements. Tenant shall submit Tenant’s Plans simultaneously to Landlord for approval and to the San Francisco Building
and Fire Departments for approval by all applicable governmental authorities. Any changes in Tenant’s Plans which are made
in response to requirements of the applicable governmental authorities and/or changes which affect the Base Building Work shall
be immediately submitted to Landlord for Landlord’s review and approval.

 

3.5. “As-Built”
Drawings and Specifications. A CADD-DXF diskette file and a set of mylar reproducibles of all “as-built” drawings
and specifications of the Premises (reflecting all field changes and including, without limitation, architectural, structural,
mechanical and electrical drawings and specifications) prepared by Tenant’s Architect and Engineers or by Contractors (defined
below) shall be delivered by Tenant at Tenant’s expense to the Landlord within thirty (30) days after completion of the
Tenant Work. If Landlord has not received such drawings and diskette(s) within thirty (30) days, Landlord may give Tenant written
notice of such failure. If Tenant does not produce the drawings and diskette(s) within ten (10) days after Landlord’s written
notice, Landlord may, at Tenant’s sole cost which may be deducted from the Allowance, produce the drawings and diskette(s)
using Landlord’s personnel, managers, and outside consultants and contractors. Landlord shall receive an hourly rate reasonable
for such production.

 

3.6. Lender’s
Certificate. Tenant shall cause Tenant’s Architect to provide to Landlord’s lender(s), within ten (10) business
days after request of Landlord, a certificate, in form and substance satisfactory to such lender(s), certifying that, as of the
date of the certificate, Tenant Work and its use fully comply with all Laws in effect at the time Tenant took occupancy.

 

    Exhibit B – Page 4

     

    

 

4. Tenant
Work.

 

4.1. Tenant
Work Defined. All tenant improvement work required by the Issued for Construction Documents (including, without limitation,
any approved changes, additions or alterations pursuant to Section 7 below) is referred to in this Workletter as “Tenant
Work” (and all improvements so required and resulting therefrom may sometimes in the Lease, or otherwise, be referred
to as “Tenant Improvements”).

 

4.2. Tenant
to Construct. Tenant shall construct all Tenant Work pursuant to this Workletter, and except to the extent modified by or
inconsistent with express provisions of this Workletter, pursuant with the provisions of the terms and conditions of Article Nine
of the Lease, governing Tenant Alterations (except to the extent modified by this Workletter) and all such Tenant Work shall be
considered “Tenant Alterations” for purposes of the Lease. All Tenant Work by or on behalf of Tenant shall
be performed in compliance with the 425 Market Street Tenant Construction Standards and in accordance with the Conditions for
Construction and Asbestos Procedures.

 

4.3. Construction
Contract. All contracts and subcontracts for Tenant Work shall include any terms and conditions reasonably required by Landlord.

 

4.4. Contractor.
Tenant shall select one or more contractors to perform the Tenant Work, who shall be subject to Landlord’s prior written
approval (which approval shall not be unreasonably withheld, conditioned or delayed) (“Contractor”).

 

4.5. Division
of Landlord Work and Tenant Work. Tenant Work is defined in Section 4.1 above and Landlord Work is defined in Section 2.

 

4.6. Access
& Services. Landlord shall provide without charge to Tenant, the Contractor, its subcontractors, Tenant’s Architect,
Tenant’s Engineers, Tenant’s consultants and their respective employees normal Building security, access to and use
of the loading dock, utilities and HVAC, toilet facilities, freight elevators or other normal Building services, to the extent
they are compatible with construction in progress, during the design and construction period for Tenant Work, so long as the Contractor,
its subcontractors, Tenant’s Architect, Tenant’s Engineers, Tenant’s consultants perform their work during Standard
Operating Hours at times arranged in advance with and approved by the manager of the Building or Project. Notwithstanding the
foregoing agreement not to charge Tenant for such expenses, Tenant understands and agrees that such expenses, whether incurred
for Tenant or other tenants in the Building are part of Operating Expenses. To the extent Tenant’s move-in, and any of the
foregoing activities do not occur during Standard Operating Hours, Tenant shall pay for Landlord’s expenses incurred as
reasonably calculated by Landlord in providing such after hours services (including, without limitation, elevator). All stocking
of Tenant’s construction materials for Tenant Work shall be as provided in Section 8.7 below.

 

    Exhibit B – Page 5

     

    

 

5. Tenant’s
Expense; Allowance.

 

Tenant
shall pay for all Tenant Work, including, without limitation, the costs of design thereof, whether or not all such costs are included
in the “Permanent Improvement Costs” (defined below). Subject to the terms and conditions of this Workletter, Tenant
shall apply the “Allowance” (defined below) to payment of the Permanent Improvement Costs. The term “Permanent
Improvement Costs” shall mean the actual and reasonable costs of construction of that Tenant Work which constitutes
permanent improvements to the Premises, actual and reasonable costs of design thereof, costs incurred by Landlord for Landlord’s
architects and engineers pursuant to Section 3.1, and Landlord’s construction administration fee (referred to in Section
8.12 below), and shall exclude costs of “Tenant’s FF& E” (defined below). For purposes of this Workletter,
“Tenant’s FF& E” shall mean furniture, furnishings, telephone systems, computer systems, equipment,
any other personal property or fixtures, and installation thereof. Landlord shall provide Tenant a tenant improvement allowance
(“Allowance”) in the amount of Eighty Dollars ($80.00) per square foot of Rentable Area of the Premises. The
Allowance shall be used solely to reimburse Tenant for the Permanent Improvement Costs; provided, however, that out of such total
Allowance, no more than the amount equal to Ten Dollars ($10.00) per square foot of Rentable Area of the Premises (the “Design
Allowance Portion”) may be used to reimburse Tenant’s reasonable costs of design, space planning, consultants
and construction drawings and specifications, Tenant’s relocation costs and Landlord’s construction management fee.
If within twelve (12) months after the Commencement Date, Tenant does not utilize one hundred percent (100%) of the Allowance
for Permanent Improvement Costs and submit full and complete application(s) for disbursement thereof pursuant to Section 6 below,
Tenant shall have no right to the unused portion of the Allowance.

 

In
addition to the Allowance, Landlord shall provide Tenant an allowance (“Restroom Allowance”) in the amount
of up to Three Hundred Twenty-Five Thousand Dollars (($325,000.00) solely to reimburse Tenant for the reasonable costs of design,
engineering, and installing ADA compliant restrooms in the Premises (the “Restroom Work”). The Restroom Allowance
shall be allocable solely towards the costs and expenses reasonably and actually incurred by Tenant for the Restroom Work and
shall be disbursed in the same manner as the Allowance. The terms and conditions of this Lease as applicable to Tenant’s
construction of the Tenant Work shall apply also to Tenant’s construction of the Restroom Work. If within twelve (12) months
after the Commencement Date, Tenant does not utilize one hundred percent (100%) of the Restroom Allowance for costs of the Restroom
Work and submit full and complete application(s) for disbursement thereof pursuant to Section 6 below, Tenant shall have no right
to the unused portion of the Restroom Allowance.

 

In
addition to the Allowance and the Restroom Allowance, Landlord shall provide Tenant an allowance (“Window Allowance”)
in the amount of up to Thirty-Five Thousand Dollars ($35,000.00) solely to reimburse Tenant for the reasonable costs of purchasing
and installing window treatments in the Premises (the “Window Work”). The Window Allowance shall be allocable
solely towards the costs and expenses reasonably and actually incurred by Tenant for the Window Work and shall be disbursed in
the same manner as the Allowance. The terms and conditions of this Lease as applicable to Tenant’s construction of the Tenant
Work shall apply also to Tenant’s construction of the Window Work. If within twelve (12) months after the Commencement Date,
Tenant does not utilize one hundred percent (100%) of the Window Allowance for costs of the Window Work and submit full and complete
application(s) for disbursement thereof pursuant to Section 6 below, Tenant shall have no right to the unused portion of the Window
Allowance.

 

Provided
Tenant is not in default after the expiration of applicable cure periods, Landlord shall provide Tenant with an allowance (the
“Space Planning Allowance”) in an amount not to exceed Three Thousand Nine Hundred Twenty Four and 00/100 Dollars
($3,924.00) (i.e. $0.15 per rentable square foot in the Premises) to be applied toward preparation of the initial space plan for
the Tenant Improvements in the Premises (the “Space Planning Costs”). Landlord shall disburse the Space Planning
Allowance, or applicable portion thereof, to Tenant within forty-five (45) days after receipt of paid invoices from Tenant with
respect to Tenant’s actual Space Planning Costs. However, in no event shall Landlord have any obligation to disburse any
portion of the Space Planning Allowance after the date which is twelve (12) months after the Commencement Date.

 

    Exhibit B – Page 6

     

    

 

6. Application
and Disbursement of the Allowance.

 

6.1. Tenant
shall prepare a budget for all Tenant Work, including the Permanent Improvement Costs and all other costs of the Tenant Work (“Budget”),
which Budget shall be subject to the reasonable approval of Landlord. Such Budget shall be supported by a guaranteed maximum price
construction contract and such other documentation as Landlord may require to evidence the total costs. Further, prior to any
disbursement of the Allowance by Landlord, Tenant shall pay and disburse its own funds for all that portion of the Permanent Improvement
Costs equal to the sum of (i) the Permanent Improvement Costs in excess of the Allowance (the “Over-Allowance Amount”);
plus (ii) the amount of “Landlord’s Retention” (defined below). “Landlord’s Retention”
shall mean an amount equal to ten percent (10%) of the Allowance, which Landlord shall retain out of the Allowance and shall not
be obligated to disburse unless and until after Tenant has completed the Tenant Work and complied with Section 6.4 below. No disbursement
of the Allowance shall be made unless Tenant has provided Landlord with (a) bills and invoices covering all labor and material
expended and used, (b) an affidavit from Tenant stating that all of such bills and invoices have either been paid in full by Tenant
or are due and owing, and all such costs qualify as Permanent Improvement Costs, (c) contractors affidavit covering all labor
and materials expended and used, (d) Tenant, contractors and architectural completion affidavits (as applicable), and (e) valid
mechanics’ lien releases and waivers pertaining to any completed portion of the Tenant Work which shall be conditional or
unconditional, as applicable, all as provided pursuant to Section 6.2 and 6.4 below.

 

6.2. Upon
Tenants full compliance with the provisions of Section 6, and if Landlord determines that there are no applicable or claimed stop
notices (or any other statutory or equitable liens of anyone performing any of Tenant Work or providing materials for Tenant Work)
or actions thereon, Landlord shall disburse the applicable portion of the Allowance as follows:

 

(a) In
the event of conditional releases, to the respective contractor, subcontractor, vendor, or other person who has provided labor
and/or services in connection with the Tenant Work, upon the following terms and conditions: (i) such costs are included in the
Budget, are Permanent Improvement Costs, are covered by the Allowance, and Tenant has completed and delivered to Landlord a written
request for payment, in form reasonably approved by Landlord, setting forth the exact name of the contractor, subcontractor or
vendor to whom payment is to be made and the date and amount of the bill or invoice, (ii) the request for payment is accompanied
by the documentation set forth in Section 6.1; and (iii) Landlord, or Landlord’s appointed agent, has inspected and approved
the work for which Tenant seeks payment; or

 

(b) In
the event of unconditional releases, directly to Tenant upon the following terms and conditions: (i) Tenant seeks reimbursement
for costs of Tenant Work which have been paid by Tenant, are included in the Budget, are Permanent Improvement Costs, and are
covered by the Allowance; (ii) Tenant has completed and delivered to Landlord a request for payment, in form reasonably approved
by Landlord, setting forth the name of the contractor, subcontractor or vendor paid and the date of payment, (iii) the request
for payment is accompanied by the documentation set forth in Section 6.1.; and (iv) Landlord, or Landlord’s appointed agent,
has inspected and approved the work for which Tenant seeks reimbursement.

 

    Exhibit B – Page 7

     

    

  

6.3. Tenant
shall provide Landlord with the aforementioned documents once per month and payment shall be made by Landlord within thirty (30)
days following the date on which such documentation is provided.

 

6.4. Prior
to Landlord disbursing the Landlord’s Retention to Tenant, Tenant shall submit to Landlord the following items within thirty
(30) days after completion of the Tenant Work: (i) “As Built” drawings and specifications pursuant to Section 3.5
above, (ii) all unconditional lien releases from all general contractor(s) and subcontractor(s) performing work, (iii) a “Certificate
of Completion” prepared by Tenant’s Architect, (iv) a final budget with supporting documentation detailing all costs
associated with the Permanent Improvement Costs; and (v) all the items listed in the close-out checklist pursuant to the 425 Market
Street Tenant Construction Standards, including, but not limited to a signed-off permit card, waste manifests, operating manuals
and warranties.

 

6.5. If,
following completion of the Tenant’s Work and Landlord’s disbursement of all amounts requested by Tenant in accordance
with this Section 6, the Allowance has not been completed exhausted (e.g., as a result of Tenant’s payment of the Over-Allowance
Amount), then within ten (10) days following Tenant’s request, Landlord shall disburse to Tenant the lesser of (i) the remaining
Allowance that has not been disbursed (as evidenced by the documents submitted by Tenant in accordance with the disbursement procedure
described in Sections 6.2 and 6.4 above), or (ii) the total amount paid by Tenant for the Tenant Work in excess of the amount
of the Allowance actually disbursed by Landlord.

 

7. Changes,
Additions or Alterations.

 

If
Tenant desires to make any non-de minimis change, addition or alteration or desires to make any change, addition or alteration
to any of the Building Systems after approval of the Issued for Construction Documents, Tenant shall prepare and submit to Landlord
plans and specifications with respect to such change, addition or alteration. Any such change, addition or alteration shall be
subject to Landlord’s approval in accordance with the provisions of Section 3.2 of this Workletter. Tenant shall be responsible
for any submission to and plan check and permit requirements of the applicable governmental authorities.

 

8. Miscellaneous.

 

8.1. Scope.
Except as otherwise set forth in the Lease, this Workletter shall not apply to any space added to the Premises by Lease option
or otherwise.

 

8.2. Electrical:
The Building electrical system allows a Tenant improvement design as follows:

 

(a) Lighting:
A maximum of 1.5 watts of connected load per square foot of Usable Area within the Premises for Building standard lighting.

 

(b) Power:
A maximum of 5 watts of connected load per square foot of Usable Area within the Premises for all outlets and other power requirements
(exclusive of the standard heating, ventilating and air conditioning of the Building System).

 

    Exhibit B – Page 8

     

    

 

8.3. Tenant
Work shall include (at Tenant’s expense) for all of the Premises:

 

(a) Building
approved lighting sensor controls as necessary to meet applicable Laws;

 

(b) Building
Standard fluorescent fixtures in all Building office areas;

 

(c) Building
Standard meters for each of electricity and chilled water used by Tenant shall be connected to the Building’s system and
shall be tested and certified prior to Tenant’s occupancy of the Premises by a State certified testing company;

 

(d) Building
Standard ceiling systems (including tile and grid) and;

 

(e) Building
Standard air conditioning distribution and Building Standard air terminal units.

 

8.4. Sprinklers.
Subject to any terms, conditions and limitations set forth herein, Landlord shall provide an operative sprinkler system consisting
of mains, laterals, and heads “AS IS” on the date of delivery of the Premises to Tenant. Tenant shall pay for piping
distribution, drops and relocation of, or additional, sprinkler system heads and Building firehose or firehose valve cabinets,
if Tenant’s Plans and/or any applicable Laws necessitate such.

 

8.5. Floor
Loading. Floor loading capacity is 100 lbs. per square foot (80 lbs. live load plus 20 lbs. for partitions, ceiling and doors).
Tenant may exceed floor loading capacity with Landlord’s consent, at Landlord’s sole discretion and must, at Tenant’s
sole cost and expense, reinforce the floor as required for such excess loading.

 

8.6. Work
Stoppages. If any work on the Real Property other than Tenant Work is delayed, stopped or otherwise affected by construction
of Tenant Work, Tenant shall immediately take those actions necessary or desirable to eliminate such delay, stoppage or effect
on work on the Real Property other than Tenant Work.

 

8.7. Freight
Elevator & Stocking of Material & Supplies. The Building contains two (2) freight elevator(s). All stocking of materials
and supplies shall be done by Tenant’s contractor using only the freight elevator outside of Standard Operating Hours for
the Building by prior arrangement and approval of the manager of the Building or Project. Tenant or its Contractor shall reserve
the use of a freight elevator for such purpose with the Building manager, at times available for such purpose and upon reasonable
advance notice and in accordance with any rules, regulations and guidelines of Landlord with respect to tenant improvement work.
Tenant shall pay Landlord Landlord’s prevailing charge to provide such freight elevator use outside of Standard Operating
Hours.

 

8.8. Life
Safety. It is agreed that Tenant (or Contractor) shall employ the services of Landlord’s approved Building fire and
life-safety subcontractor for all fire and life-safety work at the Building.

 

8.9. Locks.
Tenant agrees to purchase from Landlord or its agent all cylinders and keys used in locks used in the Premises.

 

    Exhibit B – Page 9

     

    

 

8.10.
 Authorized Representatives. Tenant has designated David Gonzales of Avison Young to act as Tenant’s representative
with respect to the matters set forth in this Workletter. In the event that and for so long as more than one individual is so
designated, notices or requests from Landlord shall be sufficiently given or delivered if given or delivered to either individual,
each individual is hereby authorized to act individually and alone, and each shall have full authority and responsibility to act
on behalf of Tenant as required in this Workletter. Tenant may add or delete authorized representatives upon five (5) business
days notice to Landlord.

 

8.11.
Access to Premises. After Landlord has recovered possession of the Premises from any prior Tenant, prior to delivery of possession
to Tenant and during the period any Landlord Work is being performed, Tenant and its architects, engineers, consultants, and contractors
shall have access at reasonable times and upon advance notice and coordination with the Building management, to the Premises for
the purpose of inspecting Landlord Work, if any, and planning Tenant Work. Such access shall not in any manner interfere with
Landlord Work, if any. Such access, and all acts and omissions in connection with it, shall be subject to and governed by all
other provisions of the Lease, including, without limitation, Tenant’s indemnification obligations, insurance obligations,
etc, except for the payment of Base Rent and additional Rent. To the extent that such access by Tenant delays the Substantial
Completion of the Landlord Work, such delay shall be a Tenant Delay and the Landlord Work shall be deemed Substantially Complete
on the date such Landlord Work would have been completed but for such access.

 

8.12. Fee.
Landlord shall receive a fee equal to Thirty-Five Thousand Dollars ($35,000.00) in connection with the construction of the Tenant
Work. Such fee is in addition to Tenant’s reimbursement of costs incurred by Landlord pursuant to other provisions hereof,
including, without limitation, for Landlord’s architects and engineers to review Tenant’s Plans.

 

8.13. Unions.
Tenant shall utilize union contractors and/or subcontractors.

 

9. Force
and Effect.

 

The
terms and conditions of this Workletter shall be construed to be a part of the Lease and shall be deemed incorporated in the Lease
by this reference. Should any inconsistency arise between this Workletter and the Lease as to the specific matters which are the
subject of this Workletter, the terms and conditions of this Workletter shall control.

 

    Exhibit B – Page 10

     

    

 

EXHIBIT
B-1

TO
WORKLETTER AGREEMENT

 

LANDLORD
WORK

 

Landlord
Work shall mean the following work, to be performed by Landlord’s contractor(s):

 

		a.	Demolish all existing tenant improvements on the seventh floor, including but not limited to the
restrooms;

 

		b.	Abatement of the asbestos-containing construction materials in all accessible areas, including
the fireproofing above the ceiling near the existing break room/kitchen area and egress stairway #1 at the north side of the floor,
in accordance with the Building’s standard procedures and applicable Law.

 

		c.	Maintain existing HVAC service to the premises including the main loop and primary duct, VAV boxes
and fan coil units. The HVAC system distribution to accommodate Tenant’s use and occupancy is the Tenant’s responsibility;

 

		d.	Repair and patch, as necessary, any core, columns and exterior walls with damaged areas and holes,
as determined by Landlord;

 

		e.	Provide electrical services to the floor necessary to provide a minimum of 5 watts per rentable
square foot for Tenant’s convenience outlets and 1.5 watts per rentable square foot for Tenant’s lighting; and

 

		f.	Repair, level and patching of any holes and damaged areas in the floor, as reasonably determined
by Landlord.

 

    Exhibit B-1 – Page 1

     

    

 

EXHIBIT
C

RULES
AND REGULATIONS

 

As
used here, all capitalized terms, including, for example, Premises, Landlord, Tenant, Building and Project, shall have the meanings
set forth in the Lease of which these Rules and Regulations form a part.

 

1. No
sign, placard, picture, advertisement, name or notice shall be inscribed, displayed, printed or affixed on or to any part of the
outside or inside of the Building or Project or elsewhere on or within the Premises, except in the interior of the Premises, unless
approved by the Landlord. Nothing shall be placed near the glass of any window, door, partition, or wall which may appear unsightly
from outside the Project and no curtains, draperies, blinds, shutters, shades, screens or other coverings, hangings or decorations
shall be attached to, hung or placed in, or used in connection with, any window in the Premises unless approved by the Landlord.
In any event, where approved by the Landlord, all such items shall be installed inboard of the standard draperies provided for
the Premises and shall in no way be visible from the exterior of the Project. The doors, windows, light fixtures and any lights
or skylights that reflect or admit light into the halls or other places of the Building shall not be covered or obstructed.

 

2. Except
for any food and/or beverage services and except for any vending machine services approved by the Landlord for operation in the
Project, no part of the Premises shall be used to manufacture any commodity or to prepare or dispense any food or beverage, nor
shall any cooking be done or permitted in or about the Premises, and no vending machine or machines of any description which dispense
or sell any food, beverage or product shall be installed, maintained or operated in or about the Premises.

 

3. Nothing
shall be done or permitted in or about the Premises, or brought or kept therein, which shall in any way increase the rate of or
cause a cancellation of or otherwise affect any fire or other insurance upon the Building, the Project or any property kept therein,
or conflict with any fire laws or regulations or with any insurance policy upon the Premises or any part thereof. Unless approved
by the Landlord, no kerosene, gasoline or inflammable or combustible fluid or material shall be used or kept in or about the Premises;
nor shall any method of heating or air conditioning be used for the Premises other than that supplied by the Landlord. The Tenant
shall comply with all fire regulations that may be approved by the Landlord. In the event any use or activity shall lead to an
increase in fire or other insurance premiums payable on the insurance obtained by the Landlord, or insurance covering Project
Areas for which the Building pays a share, or insurance procured by an individual tenant, the party causing such increase shall
be liable for payment of the same to the Landlord, the owners of the Project or such individual tenant, as the case may be. The
party so charged with increasing premium costs shall have the right to contest the validity of such increase.

 

4. Nothing
shall be done or permitted in or about the Premises which shall in any way obstruct or interfere with the use of the Premises
for their intended purposes, or obstruct or interfere with the rights of any Tenant or occupant of the Project, or injure or annoy
them, nor shall the Premises or any part thereof be used for any immoral, unlawful, disorderly or extra-hazardous purpose, or
for lodging or sleeping, nor shall any nuisance be caused, maintained or permitted in or about the Premises. With the exception
of “service” or “assistive” animals (as defined by The Americans With Disabilities Act,
the Fair Employment and Housing Act or other applicable Law) (“Service Animals”), no animals, reptiles or birds
are permitted in the Building or a tenant’s premises at any time. Any animal (other than a Service Animal) whose sole function
is to provide comfort or emotional support are not permitted in the Building, except to the extent required by applicable Law.

 

    Exhibit C – Page 1

     

    

 

5. The
floors of the Building shall not be overloaded, nor shall any safe or other heavy object be installed in the Premises without
sufficient provision being made for the proper distribution of the weight thereof.

 

6. Tenant
shall not install any radio or television antenna, loudspeaker or any other device on the exterior of the office building of which
the Building is a part.

 

7. Tenant
shall keep its Premises in a good state of preservation and cleanliness. It shall not allow anything whatever to fall from the
windows or doors of the Premises, nor shall it sweep or throw from the Premises any dirt or other substance into any of the corridors
or halls, elevators, ventilators or elsewhere in the Building or the Project. Refuse shall be placed in containers in such manner
and at such times and places as may be directed by the Landlord, the manager of the Building or Project, or its agents.

 

8. The
sidewalks, entrances, elevators, vestibules, stairways, corridors, halls, landings and fire exits must not be obstructed or encumbered
or used for any purpose other than ingress and egress to and from the Premises, the Building and the Project.

 

9. Tenant
and occupants shall not cause or permit any disturbing noises or objectionable odors to be produced upon or to emanate from the
Premises.

 

10. Water
closets and other water apparatus in the Building shall not be used for any purpose other than those for which they were designed,
nor shall any sweepings, rubbish, rags or other articles be thrown into same. Any damage resulting from misuse of any water closets
or other apparatus in the Premises shall be repaired and paid for by Tenant.

 

11. No
vehicle belonging to a Tenant or to an employee, licensee, invitee, contractor, agent, client or visitor of a Tenant or occupant
shall be parked in such manner as to impede or prevent ready access by any other vehicle to any entrance to or exit from the Building,
Project or parking garage.

 

12. Tenant
and occupants and employees, licensees, invitees, contractor, agents, clients or visitors shall not at any time or for any reason
whatsoever enter upon or attempt to enter upon the roof of the office building of which the Building is a part.

 

13. Canvassing,
soliciting and peddling in or about the Premises shall be prohibited and Tenant and occupants of the Premises shall cooperate
to prevent the same.

 

14. Unless
approved by the Landlord, no hand trucks, except those equipped with rubber tires and side guards, shall be used in or about the
Project, and no other carts or vehicles of any kind shall be used in or about the Building except for those which are permitted
to be used in the Project’s parking garage.

 

15. No
furniture, freight, or equipment of any kind shall be brought into or received in the Project or carried in the elevators, except
at such time and in such manner as shall be approved by the Landlord or by the manager of the Building or Project.

 

    Exhibit C – Page 1

     

    

 

 

16. The
bulletin board or directory of the Project shall be used exclusively for the display of the names and locations of the tenants
and occupants of the Project, and Landlord reserves the right to exclude any other names therefrom, to limit the number of names
associated with particular occupants of the Building to be identified thereon, and to charge for names associated with such occupants
at rates applicable to all occupants of the Building.

 

17. Tenant
shall see that the exterior doors of its Premises are closed and securely locked on Saturdays, Sundays and legal holidays and
not later than 7:00 P.M. of each other day. Tenant shall exercise care and caution that all water faucets or water apparatus are
entirely shut off before Tenant or its employees leave the Premises, and that all utilities, electricity, gas or air, shall likewise
be carefully shut off so as to prevent waste or damage.

 

18. Tenant
shall comply with such security measures and procedures as may be approved by Landlord for the operation of the Building and the
conduct of business therein.

 

19. Complaints
regarding services or operation of the Building shall be made in writing to Landlord or the manager of the Building.

 

20. All
work performance by or on behalf of Tenant shall be performed in compliance with the 425 Market Street Tenant Construction Standards
and in accordance with the Conditions for Construction and Asbestos Procedures.

 

21. These
rules and regulations and any consent or approval given hereunder may be added to, amended or repealed at any time by Landlord.

 

    Exhibit C – Page 1

     

    

 

EXHIBIT
D

FAIR
MARKET RENTAL RATE

 

1. Definition
of Fair Market Rental Rate. “Fair Market Rental Rate” shall mean the Monthly Base Rent equal to the monthly
base rental per rentable square foot which a tenant would pay and which a willing landlord would accept for space comparable to
the Premises in the Building and in other buildings of class A standards in the financial district of San Francisco, California
(the “Applicable Market”) for the period for which such rental is to be paid and for a lease on terms substantially
similar to those of the Lease (including, without limitation, those applicable to Taxes, Operating Expenses and exclusions, but
also considering so-called net and triple net leases, and leases utilizing operating expense stops or base years, and making appropriate
adjustment between such leases and this Lease, as described below), based on prevailing market conditions in the Applicable Market
at the time such determination is made (“Comparable Transactions”). Without limiting the generality of the
foregoing, Comparable Transactions shall be for a term similar to the term of tenancy and for space comparable in use, floor levels,
view and orientation, square footage and location within the Building and in the Applicable Market as the transaction for which
Fair Market Rental Rate is being determined; however, leases of unusual or odd shaped spaces shall not be considered. In any determination
of Fair Market Rental Rate, the stated or contract monthly net or base rental in Comparable Transactions shall be appropriately
adjusted to take into account the different terms and conditions prevailing in such transactions and those present in the Lease,
including, without limitation: (a) the extent to which average annual expenses and taxes per rentable square foot payable by tenants
in Comparable Transactions vary from those payable by Tenant under the Lease, and so, for example, if the Lease provides for payment
of Rent Adjustments and/or certain Operating Expenses on the basis of increases over a base year, then the rate of Monthly Base
Rent under the Lease shall be based upon a step-up to change the calendar year which serves as the base year for calculation of
the base for such Operating Expenses for the Option Term to be the full calendar year in which the Option Term commences, and
such step-up shall be considered in the determination of the Fair Market Rental Rate; (b) tenant improvements, value of existing
tenant improvements, the concessions, if any, being given by landlords in Comparable Transactions, such as parking charge abatement,
free rent or rental abatement applicable after substantial completion of any tenant improvements (and no adjustment shall be made
for any free or abated rent during any construction periods), loans at below-market interest rates, moving allowances, space planning
allowances, lease takeover payments and work allowances, as compared to any tenant improvement, refurbishment or repainting allowance
given to Tenant under the Lease for the space for which Fair Market Rental Rate is being determined; (c) the brokerage commissions,
fees and bonuses payable by landlords in Comparable Transactions (whether to tenant’s agent, such landlord or any person
or entity affiliated with such landlord), as compared to any such amounts payable by Landlord to the broker(s) identified with
respect to the transaction for which Fair Market Rental Rate is being determined; (d) the time value of money; (e) any material
difference between the definition of rentable area and the ratio of project rentable to useable square feet in Comparable Transactions,
as compared to such figures applicable to the space for which Fair Market Rental Rate is being determined; and (f) the extent
to which charges for parking by tenants in Comparable Transactions vary from those payable by Tenant under the Lease.

 

    Exhibit D – Page 1

     

    

 

2. Sealed
Estimates. In the event the Lease requires Fair Market Rental Rate to be determined in accordance with this Exhibit, Landlord
and Tenant shall meet within ten (10) business days thereafter and each simultaneously submit to the other in a sealed envelope
its good faith estimate of Fair Market Rental Rate (the “Estimates”). If the higher Estimate is not more than
one hundred five percent (105%) of the lower Estimate, then Fair Market Rental Rate shall be the average of the two Estimates.
If such simultaneous submission of Estimates does not occur within such ten (10) business day period, then either party may by
notice to the other designate any reasonable time within five (5) business days thereafter and any reasonable place at or near
the Building for such meeting to take place. In the event only one party submits an Estimate at that meeting, such Estimate shall
be Fair Market Rental. In the event neither party submits an Estimate at that meeting, the transaction for which Fair Market Rental
Rate is being determined shall be deemed cancelled and of no further force or effect.

 

3. Selection
of Arbitrators. If the higher Estimate is more than one hundred five percent (105%) of the lower Estimate, then either Landlord
or Tenant may, by written notice to the other within five (5) business days after delivery of Estimates at the meeting, require
that the disagreement be resolved by arbitration. In the event neither party gives such notice, the transaction for which Fair
Market Rental Rate is being determined shall be deemed cancelled and of no further force or effect. Within five (5) business days
after such notice, the parties shall select as arbitrators three (3) mutually acceptable independent MAI appraisers with experience
in real estate activities, including at least five (5) years experience in appraising office space in financial district of San
Francisco, California (“Qualified Appraisers”). If the parties cannot timely agree on such arbitrators, then
within the following five (5) business days, each shall select and inform the other party of one (1) Qualified Appraiser and within
a third period of five (5) business days, the two appraisers (or if only one (1) has been duly selected, such single appraiser)
shall select as arbitrators a panel of three additional Qualified Appraisers, which three arbitrators shall proceed to determine
Fair Market Rental Rate pursuant to Section 4 of this Exhibit. Both Landlord and Tenant shall be entitled to present evidence
supporting their respective positions to the panel of three arbitrators.

 

4. Arbitration
Procedure. Once a panel of arbitrators has been selected as provided above, then as soon thereafter as practicable each arbitrator
shall select one of the two Estimates as the one which, in its opinion, is closer to Fair Market Rental Rate. Upon an Estimate’s
selection by two (2) of the arbitrators, it shall be the applicable Fair Market Rental Rate and such selection shall be binding
upon Landlord and Tenant. If the arbitrators collectively determine that expert advice is reasonably necessary to assist them
in determining Fair Market Rental Rate, then they may retain one or more qualified persons, including but not limited to legal
counsel, brokers, architects or engineers, to provide such expert advice. The party whose Estimate is not chosen by the arbitrators
shall pay the costs of the arbitrators and any experts retained by the arbitrators. Any fees of any counsel or expert engaged
directly by Landlord or Tenant, however, shall be borne by the party retaining such counsel or expert.

 

5. Rent
Pending Determination of Fair Market Rental Rate. In the event that the determination of Fair Market Rental Rate has not been
concluded prior to commencement of the applicable rental period for the applicable space for which the Fair Market Rental Rate
is being determined, Tenant shall pay Landlord Monthly Base Rent and Rent Adjustment Deposits as would apply under Landlord’s
Estimate pursuant to Section 2 of this Exhibit until the Fair Market Rental Rate is determined. In the event that the Fair Market
Rental Rate subsequently determined is different from the amount paid for the applicable period, then within thirty (30) days
after such determination, Tenant shall pay Landlord any greater amounts due and Landlord shall credit Tenant (against the next
Monthly Base Rent installments due) for any reduction in the amounts due.

 

    Exhibit D – Page 2

     

    

 

EXHIBIT
E

TRANSACTIONAL
COSTS

 

    Exhibit E – Page 1

     

    

 

EXHIBIT
F

 

FORM
OF LETTER OF CREDIT

 

FOR
INTERNAL IDENTIFICATION PURPOSES ONLY

 

Our
No. _______________ Other _______________

 

Applicant
__________________________________

 

		TO:	425
MKT REIT, LLC

c/o
Metlife Real Estate

[Address]

Attention:
Director, EIM

 

IRREVOCABLE
LETTER OF CREDIT NO. _______________

 

We
hereby establish this irrevocable Letter of Credit in favor of the aforesaid addressee (“Beneficiary”) for
drawings up to United States $ effective immediately. This Letter of Credit is issued, presentable and payable at our office
at [issuing bank’s address in City specified by Landlord] and expires with our close of business on _______________,
20_.

 

The
term “Beneficiary” includes any successor by operation of law of the named Beneficiary including, without limitation,
any liquidator, rehabilitator, receiver or conservator.

 

We
hereby undertake to promptly honor your sight draft(s) drawn on us, indicating our Credit No. ______________, for all or any part
of this Credit if presented at our office specified in paragraph one on or before the expiry date or any automatically extended
expiry date.

 

Except
as expressly stated herein, this undertaking is not subject to any agreement, condition or qualification. The obligation of [issuing
bank] under this Letter of Credit is the individual obligation of [issuing bank], and is in no way contingent upon
reimbursement with respect thereto.

 

It
is a condition of this Letter of Credit that it is deemed to be automatically extended without amendment for one (1) year from
the expiry date hereof, or any future expiration date, unless at least thirty (30) days prior to an expiration date we notify
you by registered mail that we elect not to consider this Letter of Credit renewed for any such additional period.

 

This
Letter of Credit is transferable by the Beneficiary and by any successive transferees at no charge or cost to Beneficiary or any
transferee. Transfers of this Letter of Credit are subject to receipt of Beneficiary’s (and subsequently, transferee’s)
instructions in the form attached hereto as Schedule 1 accompanied by the original Letter of Credit and amendments(s) if any.

 

    Exhibit F – Page 1

     

    

 

This
Letter of Credit is subject to and governed by the Laws of the State of New York and the 2007 revision of the Uniform Customs
and Practice for Documentary Credits of the International Chamber of Commerce (Publication 600) and, in the event of any conflict,
the Laws of the State of New York will control. If this Credit expires during an interruption of business as described in article
36 of said Publication 600, the bank hereby specifically agrees to effect payment if this Credit is drawn against within thirty
(30) days after the resumption of business.

 

	 	Very truly yours,
	 	 
	 	 
	 	[issuing bank]

 

    Exhibit F – Page 2

     

    

 

Schedule
1 to Letter of Credit

 

[Bank
— then current issuer of Letter of Credit]

c/o
                                                                     

                                                                           

                                                                                    

Attention:
                                                       

 

Re:
Irrevocable Letter of Credit No. _______________

 

Ladies
& Gentlemen:

 

The
undersigned acknowledges receipt of your advice No. _______________ of a credit issued in our favor, the terms of which are satisfactory.
We now irrevocably transfer the said credit and all amendments and extensions thereof, if any, to:

 

	 	 	 
	 	[Name of Transferee]	 
	 	 	 
	 	 	 
	 	[Address]	 

 

You
are to inform the transferee of this transfer and such transferee shall have sole rights as beneficiary under the credit, including
any amendments, extension or increases thereof, without notice to or further assent from us.

 

This
transfer is at no charge or cost to Beneficiary or the transferee.

 

	 	Very truly yours,
	 	 	 
	 	Beneficiary
	 	 	 
	 	By:	                

 

Acknowledged
and agreed by Bank [then current issuer of Letter of Credit]:

 

	 	 
	 	(Bank — then current issuer of Letter of Credit)

 

    Exhibit F – Page 3

     

    

 

RIDER
1

COMMENCEMENT
DATE AGREEMENT

 

425
MKT REIT, LLC (“Landlord”), and METROMILE, INC., a Delaware corporation (“Tenant”), have
entered into a certain Office Lease dated as of _______________, 2019 (the “Lease”).

 

WHEREAS,
Landlord and Tenant wish to confirm and memorialize the Commencement Date and Expiration Date of the Lease as provided for in
the Lease;

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants contained herein and in the Lease, Landlord and Tenant agree
as follows:

 

		1.	Unless
otherwise defined herein, all capitalized terms shall have the same meaning ascribed to them in the Lease.

 

		2.	The
Commencement Date (as defined in the Lease) of the Lease is _______________.

 

		3.	The
Expiration Date (as defined in the Lease) of the Lease is _______________.

 

		4.	Tenant
hereby confirms the following:

 

		(a)	That
it has accepted possession of the premises pursuant to the terms of the Lease;

 

		(b)	That
the Landlord Work, if any, is Substantially Complete; and

 

		(c)	That
the Lease is in full force and effect.

 

5. 
Except as expressly modified hereby, all terms and provisions of the Lease are hereby ratified and confirmed and shall remain
in full force and effect and binding on the parties hereto.

 

6. The
Lease and this Commencement Date Agreement contain all of the terms, covenants, conditions and agreements between the Landlord
and the Tenant relating to the subject matter herein. No prior other agreements or understandings pertaining to such matters are
valid or of any force and effect.

 

    Rider 1 – Page 1

     

    

  

	TENANT:	 	LANDLORD:
	 	 	 	 
	__________________,	 	425 MKT REIT, LLC,
	a ___________________	 	a Delaware limited liability company
	 	 	 	 
	By	 	 	By 	 
	 	Print name	 	 	Print name
	 		 		
	Its	 	 	Its	 
	(Chairman of Board, President or Vice President)	 	 	 

 

	By	 	 
	 	 	 
	 	 	 
	 	Print name	 
	 	 	 
	Its	 	 
	(Secretary, Assistant Secretary, CFO or Assistant Treasurer)	 

 

    Rider 1 – Page 2

     

    

 

RIDER
2

ADDITIONAL
PROVISIONS

 

This
Rider 2 (“Rider”) is attached to and a part of a certain Office Lease dated as of _______________, 2019 , by
425 MKT REIT, LLC, as Landlord, and METROMILE, INC., a Delaware corporation (for purposes of this Rider, “Metromile”),
as Tenant, for the Premises as described therein (the “Lease”).

 

SECTION
1. DEFINED TERMS; FORCE AND EFFECT

 

Capitalized
terms used in this Rider shall have the same meanings set forth in the Lease except as otherwise specified herein and except for
terms capitalized in the ordinary course of punctuation. This Rider forms a part of the Lease. Should any inconsistency arise
between this Rider and any other provision of the Lease as to the specific matters which are the subject of this Rider, the terms
and conditions of this Rider shall control.

 

SECTION
2. CONDITION OF PREMISES; DELIVERY; CONSTRUCTION PERIOD; COMMENCEMENT DATE; TERM

 

2.1. Projected
Delivery Date; Delivery Date; Commencement Date: Tenant’s Obligations During Construction Period; Term.

 

(a) Landlord
shall tender to Tenant possession of the Premises in the condition specified in the Workletter no later than August 1, 2019 (the
“Projected Delivery Date”). On the date Landlord actually tenders to Tenant possession of the Premises (the
“Delivery Date”), all the terms and conditions of the Leases shall apply, and Tenant shall observe and perform
all such terms and conditions, except as otherwise expressly provided in this Rider. During the period (the “Construction
Period”) from the Delivery Date until the Commencement Date (defined below), in recognition of Tenant’s construction
and installations in, and preparation of, the Premises for the use and occupancy permitted by this Lease: (i) Tenant shall not
be obligated to pay Monthly Base Rent, Rent Adjustment Deposits or Rent Adjustments; and (ii) Landlord shall not be obligated
to provide services or utilities except if and to the extent expressly provided in Section 4 of the Workletter. The Term of this
Lease shall be as shown in Section 1.01(5) of the Basic Lease Provisions and the “Commencement Date” of the
Term shall be four (4) months after the Delivery Date.

 

(b) Within
thirty (30) days following the occurrence of the Commencement Date, upon request by Landlord, Tenant and Landlord shall enter
into an agreement (which is attached to this Lease as Rider 1) confirming the Commencement Date and the Expiration Date. If Tenant
fails to respond to such agreement within ten (10) business days following Landlord’s request, then the Commencement Date
and the Expiration Date shall be the dates designated by Landlord in such agreement.

 

    Rider 2 – Page 1

     

    

 

2.2. Failure
to Deliver Possession. If Landlord shall be unable to give possession of the Premises on the Projected Delivery Date by reason
of the following: (i) the holding over or retention of possession of any tenant, tenants or occupants, or (ii) the Landlord Work,
if any, is not Substantially Complete, or (iii) for any other reason, then Landlord shall not be subject to any liability for
the failure to give possession on said date. Under such circumstances, by operation of Section 2.1 above, the Delivery Date and
Commencement Date are automatically adjusted and determined in relation to the date Landlord actually tenders possession of the
Premises to Tenant in the condition required under this Lease. No such failure to deliver possession on the originally scheduled
Projected Delivery Date shall affect the validity of this Lease or the obligations of the Tenant hereunder. Notwithstanding any
of the foregoing provisions to the contrary, if Landlord has not tendered possession of the Premises on or before September 1,
2019 (the “Outside Completion Date”), Tenant shall be entitled to a rent abatement following the Commencement
Date of $5,734.58 for every day in the period beginning on the Outside Completion Date and ending on the Commencement Date; provided,
however, that the Outside Completion Date shall be delayed by the number of days that Landlord’s delivery of the Premises
to Tenant is delayed due Tenant Delays, and Force Majeure delays, if any.

 

SECTION
3.  OPTION TO EXTEND.

 

(a) Landlord
hereby grants Tenant a single option to extend the Term of the Lease for an additional period of five (5) years (such period may
be referred to as the “Option Term”), as to the entire Premises as it then exists, upon and subject to the
terms and conditions of this Section (the “Option To Extend”), and provided that at the time of exercise of
such option (and each Option, if more than one Option is granted): (i) Tenant must be conducting regular, active, ongoing business
in, and be in occupancy (and occupancy by a subtenant, licensee or other party permitted or suffered by Tenant shall not satisfy
such condition) of the entire Premises; and (ii) there has been no material adverse change in Tenant’s financial position
from such position as of the date of execution of the Lease, as certified by Tenant’s independent certified public accountants,
and as supported by Tenant’s certified financial statements, copies of which shall be delivered to Landlord with Tenant’s
written notice exercising its right hereunder. Without limiting the generality of the foregoing, Landlord may reasonably conclude
there has been a material adverse change if Tenant’s independent certified public accountants do not certify there has been
no such change.

 

(b) Tenant’s
election (the “Election Notice”) to exercise the Option To Extend must be given to Landlord in writing no earlier
than the date which is fifteen (15) months prior to the Expiration Date and no later than the date which is twelve (12) months
prior to the Expiration Date (the “Exercise Window”). If Tenant either fails or elects not to exercise the
Option to Extend by not timely giving its Election Notice, then the Option to Extend shall be null and void, including, if more
than one Option is granted, the then applicable Option to Extend and all further Options to Extend.

 

(c) The
Option Term shall commence immediately after the expiration of the preceding Term of the Lease. Tenant’s leasing of the
Premises during the Option Term shall be upon and subject to the same terms and conditions contained in the Lease except that
(i) Tenant shall pay the “Option Term Rent”, defined and determined in the manner set forth in the immediately
following Subsection; (ii) the Security Deposit shall be increased to an amount that is the same percentage or proportion of Option
Term Rent as the prior amount of Security Deposit was in relation to Rent for the Term prior to the Option Term, but in no event
shall the Security Deposit be decreased; and (iii) Tenant shall accept the Premises in its “as is” condition
without any obligation of Landlord to repaint, remodel, repair, improve or alter the Premises or to provide Tenant any allowance
therefor, except to the extent tenants leasing space in Comparable Transactions receive an allowance pursuant to the definition
of Fair Market Rental Rate defined in Exhibit D hereto, provided, however, Landlord by notice given to Tenant within thirty
(30) days after final determination of the Fair Market Rental Rate, may elect to provide, in lieu of such allowance for alterations
to the Premises, a rent credit equal to the amount of the allowance that would have otherwise been given, credited toward the
rents applicable only to the Premises and due starting after such rent obligation commences. If Tenant timely and properly exercises
the Option To Extend, references in the Lease to the Term shall be deemed to mean the preceding Term as extended by the Option
Term unless the context clearly requires otherwise.

 

    Rider 2 – Page 2

     

    

  

(d) The
Option Term Rent shall mean the sum of the Monthly Base Rent at the Fair Market Rental Rate (as defined in Exhibit D) plus
Rent Adjustments and/or certain Operating Expenses (if applicable, based upon a step-up to change the base year or base amount
for calculation of Operating Expenses in connection with determination of the Fair Market Rental Rate) plus other charges pursuant
to the Lease payable to Landlord. The determination of Fair Market Rental Rate and Option Term Rent shall be made by Landlord,
in the good faith exercise of Landlord’s business judgment. Within forty-five (45) days after Tenant’s exercise of
the Option To Extend, Landlord shall notify Tenant of Landlord’s determination of the Fair Market Rental Rate and Option
Term Rent for the Premises. Tenant may, within fifteen (15) days after receipt thereof, deliver to Landlord a written notice either:
(i) accepting Landlord’s determination, in which case the extension shall be effective and binding (subject to Subsection
(f) below) at the accepted rate; or (ii) setting forth Tenant’s good faith estimate, in which case Landlord and Tenant will
promptly confer and attempt to agree upon the Fair Market Rental Rate and Option Term Rent. Tenant’s failure to timely deliver
such notice within such fifteen (15) day period shall be deemed its cancellation of the Option. In the event Tenant has delivered
notice setting forth Tenant’s different estimate, but no agreement in writing between Tenant and Landlord on Fair Market
Rental Rate and Option Term Rent is reached within thirty (30) days after Landlord’s receipt of Tenant’s estimate,
the Fair Market Rental Rate shall be determined in accordance with the terms of Exhibit D. Notwithstanding any of the foregoing
to the contrary, at no time during the Option Term shall the Option Term Rent be less than the “Preceding Rent”
(defined below). The Preceding Rent shall mean the sum of the Monthly Base Rent payable by Tenant under this Lease calculated
at the rate applicable for the last full month of the Term preceding the Option Term plus the Rent Adjustments payable by Tenant
under the Lease (if applicable, using the base year for calculation of Base Operating Expenses applicable for the last full month
of the Term preceding the Option Term), plus other charges pursuant to the Lease payable to Landlord. To the extent that Tenant
pays directly the utility or service provider for utilities or services which Tenant is to obtain directly pursuant to the Lease,
Tenant shall continue to pay such amounts, but such amounts shall not be counted as part of the Preceding Rent or the Fair Market
Rental Rate as used herein. Further, in the event that Landlord notifies Tenant that the Option Term Rent shall equal the Preceding
Rent, such determination shall be conclusive and binding to set the Preceding Rent as the Option Term Rent for the Option Term,
Tenant shall not be entitled to dispute or contest such determination, and the extension shall be effective and binding (subject
to Subsection (f) below).

 

(e) Promptly
after final determination of the Fair Market Rental Rate, Landlord shall prepare a memorandum confirming the specific dates, amounts
and terms of the extension for the Option Term in accordance with the terms and conditions of this Option to Extend, in the form
of an amendment to the Lease, and Tenant shall execute such amendment within five (5) business days after Landlord and Tenant
agree to the form of the proposed amendment and Landlord shall execute it promptly after Tenant. Notwithstanding any of the foregoing
to the contrary, the failure of Landlord to prepare such amendment or of either party to execute an amendment shall not affect
the validity and effectiveness of the extension for the Option Term in accordance with the terms and conditions of this Option
to Extend.

 

(f) Upon
the occurrence of any of the following events, Landlord shall have the option, exercisable at any time prior to commencement of
the Option Term, to terminate all of the provisions of this Section with respect to the Option to Extend, whereupon any prior
or subsequent exercise of this Option to Extend shall be of no force or effect:

 

    Rider 2 – Page 3

     

    

  

(i) Tenant’s
failure to timely exercise or timely to perform the Option to Extend in strict accordance with the provisions of this Section.

 

(ii) The
existence at the time Tenant exercises the Option to Extend or at the commencement of the Option Term of a Default on the part
of Tenant under the Lease or of any state of facts which with the passage of time or the giving of notice, or both, would constitute
such a Default.

 

(iii) Tenant’s
third Default under the Lease during the thirty-six (36) month period immediately preceding the Exercise Window, notwithstanding
that all such Defaults may subsequently be cured.

 

(g) Without
limiting the generality of any provision of the Lease, time shall be of the essence with respect to all of the provisions of this
Section.

 

(h) This
Option to Extend is personal to Metromile and may not be used by, and shall not be transferable or assignable (voluntarily or
involuntarily) to any person or entity other than a Permitted Transferee which is an assignee of the Lease and which has satisfied
the requirements of Sections 10.01 and 10.05 of this Lease.

 

SECTION
4.  TERMINATION OPTION.

 

(a) Grant
of Option; Exercise; Early Termination Date. Landlord hereby grants Tenant the option (the “Termination Option”)
to advance the Expiration Date of the Term as to the entire Premises, and not less than the entire Premises, upon and subject
to all of the terms, covenants and conditions set forth below. This Termination Option shall be exercisable only by written notice
(“Termination Notice”) given by Tenant to Landlord no later than the last day of the seventy-second (72nd)
full calendar month of the Term. Provided that such notice is duly given and all the terms, covenants and conditions of this Termination
Option are satisfied and performed, the Termination Option shall advance the Expiration Date of the Term to the date which is
the end of the eighty-fourth (84th)full calendar month of the Term (the “Early Termination Date”).

 

(b) Termination
Fee. Tenant shall pay Landlord the Termination Fee (defined below) in immediately available funds and without any deduction
or offset whatsoever. The Termination Fee shall be payable concurrently with Tenant’s delivery of the Termination Notice
to Landlord. The Termination Fee is the amount which the parties have negotiated and agreed upon as a fee or compensation which
is intended as their fair estimate of losses and damages which are difficult to calculate and which Landlord is likely to sustain
due to the corresponding advance of the Expiration Date, including the unamortized portion of any concessions, commissions, allowances
and other expenses incurred by Landlord in connection with the Premises leased by Tenant under the Lease, and Landlord’s
loss of future rent in connection therewith. Such amount shall be Landlord’s earned fee and liquidated damages for such
estimated losses and damages, whether such losses and damages in fact are greater or less than the applicable amount of the Termination
Fee. The Termination Fee shall mean and consist of the following:

 

(i) the
amount equal to the sum of four (4) months of Monthly Base Rent at the rate that would have been applicable during months eighty-five
(85) through and including eighty-eight (88) of the Term; plus

 

    Rider 2 – Page 4

     

    

 

(ii) the
amount equal to the unamortized portion as of the Early Termination Date of the “Transactional Costs” (as defined
below) plus interest at the rate of eight percent (8%) per annum, amortized on a straight line basis: (1) over the Term with respect
to Transactional Costs applicable to the initial Premises, and (2) over the Term remaining if and when space is added to the Premises
after the Execution Date with respect to Transactional Costs applicable to such space. As used herein, “Transactional
Costs” means all costs paid or incurred by Landlord with respect to the Premises (both the initial Premises and any
space added after the Execution Date) for leasing commissions, any allowances provided by Landlord to Tenant and any construction
costs paid or incurred by Landlord for improvements or alterations, and legal fees incurred in connection with the Lease. A partial
schedule of the Transactional Costs setting forth those applicable to the initial Premises is shown on Exhibit E to this
Lease.

 

(c) Conditions
Precedent. Upon the occurrence of any of the following events, this Termination Option shall not be available and shall automatically
terminate without notice and cease to be of any force or effect:

 

(i) Tenant’s
failure to give notice of exercise of the Termination Option or failure to pay Landlord the full amount of the Termination Fee
in accordance with this Termination Option.

 

(ii) The
existence at the time of exercise of the Termination Option or on or prior to the Early Termination Date of an uncured Default
by Tenant under the Lease.

 

In
any of such events, Landlord shall have available all rights and remedies provided under the Lease without being limited in any
way by the Termination Option. Further, in the event there exists an uncured Default by Tenant under the Lease for any reason
whatsoever prior to or after the exercise or purported exercise of the Termination Option, Landlord shall have available all rights
and remedies provided under the Lease without being limited in any way by the Termination Option.

 

(d) Obligations
Until Early Termination Date; Proration. All of the terms, covenants and conditions of the Lease shall remain in full force
and effect with respect to the Premises up to and including the Early Termination Date, except as otherwise provided in this Termination
Option. In addition to payment of the Termination Fee, Tenant shall continue to pay all rents and charges (including utilities),
including, without limitation, Monthly Base Rent, Tenant’s Share of Operating Expenses and Taxes, and other charges as they
become due and payable under the Lease for the Premises up to and including the Early Termination Date. Such rents and charges
shall be prorated, billed and payable as provided under the Lease, in the same manner as if the Early Termination Date was the
regularly scheduled Expiration Date of the Term. No later than 11:59 p.m. on the Early Termination Date, Tenant shall vacate and
deliver to Landlord exclusive possession of the Premises pursuant to the same provisions and requirements of the Lease that apply
upon the Expiration Date or Termination Date.

 

(e) Certain
Changes in Lease After Exercise. Upon and after Tenant’s exercise of the Termination Option, all of the terms, covenants
and conditions of the Lease shall continue to apply except the Option to Extend shall automatically terminate without notice and
shall be of no further force or effect.

 

(f) Holding
Over. In the event that Tenant fails to vacate and deliver exclusive possession of the Premises to Landlord by the Early Termination
Date as required under this Termination Option, then such holding over as to the Premises shall be upon and subject to all the
terms, covenants and conditions of the Lease applicable to a holding over, including, without limitation, Article Thirteen of
the Lease.

 

    Rider 2 – Page 5

     

    

  

(g) No
Release. Notwithstanding any provision of the foregoing to the contrary, neither the grant of this Termination Option nor
the acceptance by Landlord of the surrender of the Premises shall in any way:

 

(i) be
deemed to excuse or release Tenant from any obligation or liability with respect to the Premises (including, without limitation,
any obligation or liability under provisions of the Lease to indemnify, defend and hold harmless Landlord or other parties, or
with respect to any breach or breaches of the Lease by Tenant) which obligation or liability (x) first arises on or prior to the
date on which Tenant delivers to Landlord possession of the Premises or (y) arises out of or is incurred in connection with events
or other matters which took place on or prior to such date, or

 

(ii) affect
any obligation under the Lease which by its terms is to survive the expiration or sooner termination of the Lease.

 

(h) Option
Personal. The Termination Option is personal to Metromile and may not be used by, and shall not be transferable or assignable
(voluntarily or involuntarily) to any person or entity other than a Permitted Transferee which is an assignee of the Lease and
which has satisfied the requirements of Sections 10.01 and 10.05 of this Lease.

 

SECTION
5.  LETTER OF CREDIT

 

(a) If
Tenant elects pursuant to Section 5(c) of the Lease, Tenant may, at Tenant’s sole cost and expense, provide Landlord with
the “Letter of Credit” as a substitute for the cash Security Deposit otherwise required under this Lease, and
for the full and faithful performance by Tenant of each and every term, provision, covenant, and condition of this Lease (if Tenant
substitutes the Letter of Credit for the Security Deposit, references herein to the “Security” shall mean the
Letter of Credit). If Tenant Defaults under this Lease, then Landlord may use, apply, or retain the whole or any part of the Security
for the payment of any Rent not paid when due, for the cost of repairing such damage, for the cost of cleaning the Premises, for
the payment of any other sum which Landlord by reason of Tenant’s Default, including for compensation of Landlord for any
other loss or damage to Landlord occasioned by Tenant’s Default, including, but not limited to, any loss of future Rent
and any damage or deficiency in the reletting of the Premises (whether such loss, damages or deficiency accrue before or after
summary proceedings or other reentry by Landlord) and the amount of the unpaid past Rent, future Rent loss, and all other losses,
costs and damages, that Landlord would be entitled to recover if Landlord were to pursue recovery under Section 11.02(b) or (c)
of this Lease or California Civil Code Section 1951.2 or 1951.4 (and any supplements, amendments, replacements and substitutions
thereof and therefor from time to time). If Landlord so uses, applies or retains all or part of the Security, Tenant shall within
five (5) business days after demand pay or deliver to Landlord in immediately available funds the sum necessary to replace the
amount used, applied or retained, except as specified in (d) below. The Security (except any amount retained for application by
Landlord as provided herein) shall be returned or paid over to Tenant no later than ninety (90) days after the latest of: (i)
the Termination Date; (ii) the removal of Tenant from the Premises; (iii) the surrender of the Premises by Tenant to Landlord
in accordance with this Lease; or (iv) the date Rent Adjustments owed pursuant to this Lease have been computed by Landlord and
paid by Tenant. Provided, however, in no event shall any such return be construed as an admission by Landlord that Tenant has
performed all of its obligations hereunder.

 

    Rider 2 – Page 6

     

    

 

(b) The
Security, whether in the form of cash, Letter of Credit and/or Letter of Credit Proceeds (defined below), shall not be deemed
an advance rent deposit or an advance payment of any kind, or a measure of Landlord’s damages with respect to Tenant’s
failure to perform, nor shall any action or inaction of Landlord with respect to it or its use or application be a waiver of,
or bar or defense to, enforcement of any right or remedy of Landlord. Landlord shall not be required to keep the Security separate
from its general funds and shall not have any fiduciary duties or other duties (except as set forth in this Section) concerning
the Security. Tenant shall not be entitled to any interest on the Security. In the event of any sale, lease or transfer of Landlord’s
interest in the Building, Landlord shall have the right to transfer the Security, or balance thereof, to the vendee, transferee
or lessee and any such transfer shall release Landlord from all liability for the return of the Security. Tenant thereafter shall
look solely to such vendee, transferee or lessee for the return or payment of the Security. Tenant shall not assign or encumber
or attempt to assign or encumber the Security or any interest in it and Landlord shall not be bound by any such assignment, encumbrance,
attempted assignment or attempted encumbrance, and regardless of one or more assignments of this Lease, Landlord may return the
Security to the original Tenant without liability to any assignee. Tenant hereby waives any and all rights of Tenant under the
provisions of Section 1950.7 of the California Civil Code, and any and all rights of Tenant under all provisions of law, now or
hereafter enacted, regarding security deposits.

 

(c) If
Tenant fails timely to perform any obligation under this Section 5, such breach shall constitute a Default by Tenant under this
Lease without any right to or requirement of any further notice or cure period under any other Article of this Lease, except such
notice and cure period expressly provided under this Section 5.

 

(d) As
used herein, “Letter of Credit” shall mean an unconditional, irrevocable sight draft letter of credit issued,
presentable and payable at the office of a major national bank a location acceptable to Landlord, in its sole discretion, which
major national bank shall also be satisfactory to Landlord in its sole discretion (the “Bank”), naming Landlord
as beneficiary, in an amount equal to Two Million Seven Hundred Thirty-One Thousand Forty-Seven and No/100 Dollars ($2,731,047.00).
The Letter of Credit shall provide: (i) that Landlord may make partial and multiple draws thereunder, up to the face amount thereof,
and that Landlord may draw upon the Letter of Credit up to the full amount thereof, as determined by Landlord, and the Bank will
pay to Landlord the amount of such draw upon receipt by the Bank of a sight draft signed by Landlord without requirement for any
additional documents or statements by Landlord; and (ii) that, in the event of assignment or other transfer of either Landlord’s
interest in this Lease or of any interest in Landlord (including, without limitation, consolidations, mergers, reorganizations
or other entity changes), the Letter of Credit shall be freely transferable by Landlord, without charge and without recourse,
to the assignee or transferee of such interest and the Bank shall confirm the same to Landlord and such assignee or transferee.
The Letter of Credit shall be in the form attached as Exhibit F hereto or in another form and substance acceptable to Landlord,
in its sole discretion. Landlord may (but shall not be required to) draw upon the Letter of Credit and use the proceeds therefrom
(the “Letter of Credit Proceeds”) or any portion thereof in any manner Landlord is permitted to use the Security
under this Section 5. In the event Landlord draws upon the Letter of Credit and elects not to terminate the Lease, but to use
the Letter of Credit Proceeds, then within ten (10) business days after Landlord gives Tenant written notice specifying the amount
of the Letter of Credit Proceeds so utilized by Landlord, Tenant shall immediately deliver to Landlord an amendment to the Letter
of Credit or a replacement Letter of Credit in an amount equal to one hundred percent (100%) of the then-required amount of the
Letter of Credit. Tenant’s failure to deliver such amendment or replacement of the Letter of Credit to Landlord within ten
(10) business days after Landlord’s notice shall constitute a Default by Tenant under this Lease. The Letter of Credit shall
have an initial term of no longer than one (1) year, shall be “evergreen”, and shall be extended, reissued
or replaced by Tenant, in each case at least thirty (30) days prior to its expiration in a manner that fully complies with the
requirements of this Section 5, so that in all events the Letter of Credit required hereunder shall be in full force and effect
continuously until the date (the “L/C Expiration Date”) for return of the Security described in Subsection
(a) above. No more often than once per year, Landlord shall have the right to require Tenant to deliver to Landlord, on fifteen
(15) days prior notice, a replacement Letter of Credit on the same terms and conditions set forth in this Section 5, in the event
that Landlord determines, in its good faith judgment, that the issuing Bank is no longer satisfactory to remain as the issuer
of the Letter of Credit. Any advice from the issuer that it intends to withdraw or not extend the Letter of Credit prior to any
scheduled annual expiration or the L/C Expiration Date shall entitle the Landlord to immediately draw upon the Letter of Credit.

 

    Rider 2 – Page 7

     

    

 

(e) Notwithstanding
anything to the contrary contained herein, Landlord agrees that the Letter of Credit held as part of the Security pursuant to
this Section may be reduced annually by an amount equal to the Reduction Amount (as defined below) (a “Reduction”)
upon satisfaction of the Reduction Conditions (as defined below) but in no event shall any Reduction occur earlier than the first
(1st) day of the thirty-seventh (37th) full calendar month of the Term, nor shall the amount of the Letter of Credit held by Landlord
be less than Four Hundred Sixty-Eight Thousand Eight Hundred Twenty-Nine and 70/100 Dollars ($468,829.70). The Reduction is expressly
subject to the following conditions (the “Reduction Conditions”): (i) on the date on which such Reduction is
to be granted there exists no act or omission on the part of Tenant which, with the passage of time or the giving of notice, or
both would constitute a default of Tenant, in which event the right to that Reduction is waived (until the default is timely cured);
(ii) on or immediately after the date on which a Reduction is to be granted (provided Tenant has qualified for same pursuant to
this Section), Tenant has delivered to Landlord an acceptable (pursuant to this Section) substitute Letter of Credit or amendment
to the existing Letter of Credit in such appropriately reduced amount, (iii) as of the date of the applicable Reduction, Tenant
has demonstrated positive EBITDA for the immediately preceding four (4) consecutive calendar quarters as evidenced by Tenant’s
Financial Information (as defined below). Landlord agrees, in the instance of such substitute Letter of Credit, to surrender the
replaced Letter of Credit promptly after receipt of the substitute. Concurrent with Tenant’s delivery of its request for
a Reduction, Tenant shall deliver to Landlord for its review Tenant’s financial statements prepared in accordance with generally
accepted accounting principles and audited by a public accounting firm reasonably acceptable to Landlord, and any other financial
information reasonably requested by Landlord evidencing Tenant’s full satisfaction of the Reduction Conditions (“Tenant’s
Financial Information”). As used herein, the “Reduction Amount” equals an amount equal to the then
existing Letter of Credit amount, divided by the number of years (or partial years) remaining in the Term (for purposes of this
calculation, the Term shall be deemed 120 months) as of the effective date of such Reduction (which shall be determined by dividing
the number of calendar months remaining in the initial Lease Term by 12, rounded to two decimal places (5 or more one-thousandths
shall be rounded up to the next one-hundredth). For example, assuming that the first effective date of the Reduction occurs on
the 38th month of the Lease Term and that the Reduction Conditions have been satisfied, the Reduction Amount shall be Three Hundred
Ninety-Four Thousand Six Hundred Fifty-Nine and 97/100 Dollars ($394,659.97), calculated by dividing $2,731,047.00 by 6.92 years).

 

SECTION
6. PARKING. Parking is subject to Tenant’s entry into the applicable, separate parking agreement with Landlord and
the parking garage operator for the Building, in form and substance satisfactory to them. Subject to such agreement, Tenant shall
be provided with the right to lease a total of three (3) stalls during the Term, at the then applicable monthly rates, as such
rates change from time to time.

 

 

Rider 2 – Page 8

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