Document:

Lease for Maple Grove

 EXHIBIT 10.15 
 LEASE AGREEMENT 
 THIS LEASE AGREEMENT, entered into this 20 day of
January, 2005, by and between Schany Family Limited Partnership, a Minnesota limited partnership, (hereinafter referred to as “Landlord”), and Lumificient Technologies, LLC, a limited liability company under the laws of the State of
Delaware, (hereinafter referred to as “Tenant”). 
 W I T N E S S E T H : 
 Landlord, for and in consideration of the rent, covenants and agreements hereinafter set forth to be paid, kept and performed by Tenant,
hereby demises and leases unto Tenant, and Tenant hereby does hire and rent from Landlord, the premises hereinafter described, for the period, at the rental, and upon the terms and conditions hereinafter set forth. 
 IT IS AGREED: 
 ARTICLE 1. THE LEASED PREMISES. 
 A. The premises is described as Lot
4, Block 1, East Maple Grove Industrial Park 2nd Hennepin
County, Minnesota, located at 8752 Monticello Lane, Maple Grove, Minnesota, consisting of a building of approximately 13,200 square feet (outside dimensions), including approximately 1,860 square feet of office, 1,860 square feet of mezzanine office
and 9,480 square feet of warehouse, together with all parking areas, access roads and facilities, driveways, sidewalks and other walkways, stairways, loading areas, landscaped areas, and such other areas and improvements located in and on the
premises (hereinafter sometimes referred to as the Leased Premises” or the “Demised Premises”. 
 B. LEFT BLANK
INTENTIONALLY 
 C. Construction by Landlord. Tenant agrees to take space “as is” with no further work,
to be done by Landlord. 
 D. Construction by Tenant. Tenant, at its cost and expense and with no right of
reimbursement from Landlord, except as stated in this Section below, and shall do all work and make all installations necessary for Tenant’s use and occupancy, including the installation and connection of all trade or business fixtures as
required by Tenant for Tenant’s use. 
 Tenant shall prepare and submit to Landlord for approval all of Tenant’s plans
and specifications. Landlord shall approve such work and or plans within five (5) business days of receipt from Tenant. 

 Tenant’s Work shall be performed in good and workmanlike manner, shall be in conformity
with all applicable federal, state and local laws, ordinances, building codes and fire regulations, and shall be free of any liens for labor and materials. 
 Tenant shall indemnify Landlord for and hold Landlord harmless from any penalty, loss, damage, injury or liability of any kind arising out of Tenant’s work and installations. 
 Notwithstanding the provisions of the above to the contrary, Tenant shall perform the work identified in Exhibit “A” attached
hereto entitled “Tenant’s Work”. Upon completion of Tenant’s Work, Landlord shall issue to Tenant a credit for the monthly base rent due for the months of July, August and September 2005. 
 E. Partitions, Fixtures, Machinery and Equipment. Tenant acknowledges hereby that all partitions erected in the Leased
Premises; all improvements affixed to the Leased Premises; and all fixtures, machinery and equipment, including, but not limited to, heating and air conditioning equipment, plumbing and electrical pipes, wiring, connections, and fittings, which are
necessary to the general operation and maintenance of the leased premises, shall become immediately and remain the property of Landlord without compensation to Tenant (other than payment of any construction allowance specifically provided for in
writing) whether owned by Landlord at the commencement of the term, subsequently purchased or constructed by Landlord, or purchased or constructed by Tenant in accordance with any of Tenant’s obligations under the terms of this Lease.
Specifically excluded from the foregoing are customarily removable professional trade or business fixtures and equipment which are not necessary for the general operation and maintenance of leased premises and which are put in at the expense of
Tenant, as well as movable furniture and other movable personal property put in at the expense of Tenant, and such items shall be and remain the property of Tenant and may be removed by Tenant at termination of this Lease, provided, Tenant is not in
default hereunder, as provided, the Leased Premises are restored as provided. All the property removable shall be removed on or before the last day of the term hereof or any extension thereof or upon the earlier termination of such term, and all
property not so removed shall be deemed abandoned by Tenant to Landlord. 
 F. Condition of Leased Premises and
Landlord’s Property at Termination. At termination of this Lease, Tenant shall quit and deliver the Leased Premises, all partitions, improvement, alterations and other property of Landlord (as hereinabove described) to Landlord in good
condition and repair, broom clean, allowance being made for ordinary wear and tear and obsolescence. If Tenant chooses not to remove its property (as hereinabove described), Landlord may require Tenant, at Tenant’s expense, to remove its
property and restore the Leased Premises as provided in this Article. 
  

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 G. Reservation of Rights. In addition to all other rights of Landlord and not
in limitation thereof, Landlord expressly reserves the right, but not the obligation, to install, maintain, use, and repair and replace the pipes, ducts, conduits and wires leading through the Leased Premises in a manner which will not materially
interfere with Tenant’s use thereof. 
 H. Display by Landlord. Landlord or his agents shall have the right
during the term of this Lease or any extension thereof to exhibit the Leased Premises to prospective purchasers during normal business hours. Landlord agrees to give reasonable notice so as not to interfere with Tenant’s business. In addition,
Landlord or his agents shall have the right during the last six (6) months of the term of this Lease or any extension thereof, to place and maintain on the Leased Premises and in the windows thereof reasonable signs advertising the availability
of the Leased Premises for rent, and to exhibit the Leased Premises to prospective tenants. 
 ARTICLE 2. USE AND
CONDUCT OF BUSINESS. 
 A. Use. Tenant, and no other person or entity except Flexible Circuit
Technologies, Inc., a subtenant of Tenant, shall use the Leased Premises solely for the purpose of conducting and operating the business of Lumificient Technologies, LLC, and Flexible Circuit Technologies, Inc. limited to the following: office,
sales, light assembly and the manufacturing of LED lights. 
 B. Conduct of Business. Unless otherwise consented
to in writing by Landlord, Tenant shall conduct its business in the Leased Premises under the name Lumificient Technologies, LLC. 
 Tenant shall not use, occupy, suffer or permit any use of the Leased Premises which would (a) violate any law, ordinance or regulation; provided, however, Tenant shall have the right to contest the validity of any laws, ordinances or
regulations adversely affecting its use of the leased premises, but shall hold Landlord harmless from the consequences of violation of any such law, ordinance or regulation; (b) constitute a nuisance; (c) constitute an extra-hazardous use;
or (d) violate, suspend or void any policy or policies of insurance of Landlord in the Premises. 
 C. Use Increasing
Insurance Premium. In the event that the use of the Leased Premises increases the premium rate for the insurance carried by Landlord on the improvements of which the Leased Premises are a part, Tenant shall pay Landlord, upon demand, the
amount of such premium increase. If Tenant installs any electrical equipment that overloads the power lines to the building or its wiring, Tenant shall, at its own expense, make whatever changes are necessary to comply with the requirements of the
insurance underwriter, insurance rating bureau and governmental authorities having jurisdiction. 
  

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 ARTICLE 3. RELEASE OF LANDLORD - INDEMNIFICATION OF LANDLORD.

 A. Release of Landlord. All property of any kind that may be on or at the Leased Premises shall be at the sole
risk of Tenant, or those claiming through or under Tenant. Except to the extent that any of the following shall result from act or omission of Landlord, its agents, servants or employees or failure on the part of Landlord to perform its covenants or
agreement under this Lease, Landlord shall not be liable to Tenant, or to any other person or persons or property; or for the loss of property sustained by Tenant, or by any other person, persons or entities in or upon the Leased Premises or the
building of which the Leased Premises are a part; or due to the equipment, fixtures, appliances or machinery in or upon the Leased Premises or the building of which the Leased Premises are a part, or the halls, passageways, areas, area-ways,
sidewalks or streets adjoining or appurtenant to the Leased Premises or the building of which the Leased Premises are a part, becoming out of repair or defective; or due to the happening of any accident, however occurring; or due to any act or
neglect of Tenant, or of any other person, persons or entities; or due to water, snow, rain, backing up of water mains or sewers, frost, steam, sewage, illuminating gas, sewer gas, odors, electricity or electric current, bursting, stoppage or
leaking of pipes, radiators, plumbing, sinks and fixtures in or about the Leased Premises or the building of which the Leased Premises are a part; or due to any nuisance made or suffered thereon or therein. 
 B. Indemnification of Landlord. Except to the extent that any of the following shall result from act or omission of Landlord,
its agents, servants or employees or failure on the part of Landlord to perform its covenants or agreements under this Lease, Tenant will indemnify and save harmless Landlord against all liabilities, damages, claims, fines, penalties, costs and
other expenses; including reasonable attorneys fees, which may be imposed upon, incurred by, or asserted against Landlord by reason of all of the following: (a) any use or condition of the leased premises or any part thereof; (b) any
personal injury, but not limited to, or property damage occurring on the Leased Premises; (c) any negligence on the part of Tenant, its agents, contractors, licensees or invitees; (d) any failure to comply with any requirement of any
governmental authority relating to Tenant’s use and occupancy of the Leased Premises; (e) any prosecution or defense of any suit or other proceeding in discharging the Leased Premises or any part thereof from any liens, judgments or
encumbrances created by Tenant or at its direction upon or against the same or against Tenant’s leasehold estate; (f) any proceedings in obtaining possession of the Leased Premises after the termination of this Lease by forfeiture or
otherwise; (g) any litigation commenced by or against Tenant to which Landlord is made a party without any fault on the part of Landlord; and (h) any failure on the part of Tenant to perform or comply with any covenant or agreement to be
performed or complied with by Tenant hereunder. 
  

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 ARTICLE 4. TERM. 
 A. Term. The term of this Lease shall be for a period of sixty (60) months commencing on March 1, 2005 and expiring
February 28, 2010. “Lease Year” shall mean a twelve-month period beginning March 1 each year. 
 B.
Holder-Over Tenancy. If Tenant remains in possession of the premises without written consent of Landlord, after the expiration of the term of this Lease, or any extension thereof, such holding over shall, if rent is accepted by Landlord
for any period after expiration of the term, create a tenancy from month to month upon the terms and conditions of this Lease, and either Landlord or Tenant may terminate such tenancy at the end of any such month upon not less than thirty
(30) days’ notice of termination. 
 C. Early Termination. Tenant shall have the option to terminate
this Lease prior to the expiration date of January 31, 2010 as follows: 
  

	 	i.	 At the end of the 36th month of the Lease Term providing Tenant provides Landlord with written notice prior to the 1st day of the
31st month of the Lease Term of Tenant’s election to
terminate the Lease at the end of 36 months and with said notice pays to Landlord and early termination fee of $15,000.00; 

  

	 	ii.	 At the end of the 48th month of the Lease Term providing Tenant provides Landlord with written notice prior to the 1st day of the 42nd month of the Lease Term of Tenant’s election to terminate the Lease at the end of 48 months and
with said notice pays to Landlord and early termination fee of $5,000.00; 

 D. Early
Possession. Tenant shall have the right to occupy the Premises beginning February 1, 2005 for the purpose of performing and completing Tenant’s Work. Tenant shall be responsible for the following during the period of Tenant’s
early occupancy: 
  

	 	i.	utilities as provided in Article 6.A.; and 

  

	 	ii.	real estate taxes as provided in Article 6.B.; 

  

	 	iii.	insurance as provided in Article 6.F. 

  

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 ARTICLE 5. RENT. 
 A. Minimum Guaranteed Annual Rent. Tenant shall pay to Landlord, payable at the address designated in this Lease for service
of notice upon Landlord, or at such other place as Landlord may designate in writing to Tenant, base rent for the term of this Lease as follows: 
  

				
	 Month
	  	Monthly Base Rate
	 March thru June, 2005
	  	$	0.00
	 July 2005 thru June 30, 2006
	  	$	5,000.00
	 July 2006 thru June 30, 2007
	  	$	5,100.00
	 July 2007 thru June 30, 2008
	  	$	5,202.00
	 July 2008 thru June 30, 2009
	  	$	5,306.04
	 July 2009 thru February 28, 2010
	  	$	5,412.16

 Rent not received by Landlord within five (5) days of the
due date (1st day of each month) shall be subject to a
five percent (5%) late payment penalty due and payable immediately as additional rent. 
 B. Additional Rent.
In addition to the base rent provided in 5(A) hereof, Tenant shall pay to Landlord, on demand as additional rent, Tenant’s proportionate share of the costs of real estate taxes, annual installments of special assessments, and fire and
casualty insurance for the Premises based upon the proportion the total square footage of Tenant’s leased premises bears to the total rentable area of the Premises. For this purpose, Tenant’s proportionate share is mutually agreed to be
one hundred (100%). 
 Such rent shall be payable in equal consecutive monthly installments, payable in advance on the first day
of each month beginning February 1, 2005 and throughout the term of this Lease. In the event of a fractional month, a pro rata payment shall be made. 
 C. Required Payments are “Rent”. In addition to minimum guaranteed rent and additional rent, any and all other payments required to be paid by Tenant under the provisions of this
Lease shall be deemed to be and shall become additional rent, whether or not the same be designated as such. 
 ARTICLE
6. UTILITIES - REAL ESTATE TAXES AND ASSESSMENTS - LICENSE FEES—INSURANCE - WAIVER OF SUBROGATION. 
 A. Utilities. Tenant shall pay, as they become due and payable and before they become delinquent, all charges for sewer usage or rental, garbage disposal, refuse removal, water, electricity, gas, fuel, telephone and other
utility services furnished to the Leased Premises during the term of this Lease, or any renewal or extension hereof. Landlord reserves the right, immediately upon notice to Tenant, to cut off and discontinue any or all utility services in an
emergency and/or where necessary to make repairs. Notice shall be as long in advance as reasonably possible. No such action by Landlord shall be construed as an eviction or disturbance of possession or as an election by Landlord to terminate this
Lease; provided however, if such action shall continue for a period in excess of three (3) business days, the minimum guaranteed rent only shall be abated thereafter until such time as the utility services are fully restored. 
  

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 In no event shall Landlord be liable for any interruption or failure in the supply of such utilities caused
by accident, breakage, repairs or any other cause beyond the control of Landlord. 
 B. Real Estate
Taxes and Assessments. Subject to payment by Tenant, as hereinafter provided, Landlord shall pay all real estate taxes and all installments of assessments, any taxes in lieu thereof, which may be levied upon or assessed (hereinafter
collectively referred to as “taxes”) against the land and improvements including the common areas, constituting the Demised Premises of which the Leased Premises are a part. Tenant in addition to all other payments to Landlord by Tenant
required hereunder, shall pay to Landlord, payable at the same address as the minimum guaranteed rent, in each year during the term of this Lease, and any extension or renewal thereof, Tenant’s proportionate share as defined above of said
taxes, special assessments, and interest on special assessments. The Proportionate Share of said taxes and assessments to be paid hereunder by Tenant monthly equal to 1/12th of the real estate taxes and special assessments due in each year during the term of this Lease. However, Landlord
reserves the right to estimate Tenant’s proportionate share of said taxes, and Tenant shall pay monthly to Landlord an amount estimated by Landlord to be necessary to be billed monthly so that Landlord will have collected Tenant’s
proportionate share thirty (30) days prior to the date said taxes are due and payable on an installment basis by Landlord to the taxing authorities before interest or penalty accrues thereon. In the event Landlord exercises its right to
estimate Tenant’s Proportionate Share of said taxes, and bills Tenant monthly thereof, within thirty (30) days after receipt by Landlord of the applicable tax statement, Landlord shall render a billing to Tenant adjusting the estimated
payments received to the actual payments required, and setting forth the difference between the total amount which should have been collected on an actual basis. In the event Tenant has underpaid Tenant’s proportionate share up to the date of
such billing, based upon the applicable tax statement, Tenant shall pay any shortage to Landlord within ten (10) days of delivery of such billing to Tenant by Landlord. Thereafter, for the balance of the applicable period, the monthly billing
by Landlord to Tenant will be based upon Tenant’s actual Proportionate Share of the applicable tax statement to be paid. Any overpayment by Tenant of real estate taxes, assessments or any other taxes there of shall be credited against the next
applicable tax statement or refunded to Tenant within ten (10) days of such calculation at the option of Tenant. In the event the taxing authorities include in such real estate taxes and installments of assessments the value of any improvements
made by Tenant, or of machinery, equipment, fixtures, inventory or other personal property or assets of Tenant, then Tenant will pay all of the taxes attributable to such items in addition to its proportionate share of said real estate taxes and
installments of assessments. A photostatic copy of the tax statement received by Landlord and submitted by Landlord to Tenant shall be sufficient evidence of the amount of said taxes assessed or levied against the land and improvements constituting
the Demised Premises of which the Leased Premises are part, as well as the items taxed. Landlord represents that there are no special assessments levied or pending as of the date of this Lease Agreement. 
  

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 C. Personal Property and Leasehold Taxes. Tenant shall pay, as they become due
and payable and before they become delinquent, all taxes levied or assessed against its leasehold interest in this Lease and against the fixtures, equipment, merchandise and other personal property located in, upon, about or affixed to the Leased
Premises. 
 D. Rental Taxes. If at any time during the term of this Lease or any extension thereof, under federal
or state law or any political subdivision thereof, a tax, charge, capital levy or excise on rents (fixed, guaranteed or additional), or other tax (except income tax), however described, shall be levied against Landlord on account of the rent payable
herein, such tax, charge, capital levy, or excise on rents or other taxes shall be paid by Tenant, or reimbursed to Landlord by Tenant if such tax, charge, capital levy, or excise on rents or other taxes are advanced by Landlord, the choice to be at
the option of Landlord. If the amounts required to be paid are payable monthly, such amounts shall be paid by Tenant to Landlord monthly in addition to the monthly rent provided for herein. If the amounts required to be paid are payable annually,
such amounts shall be paid by Tenant to Landlord annually on demand. A photostatic copy of the statement received for such amounts shall be sufficient evidence of the amounts due and payable. In the event Tenant is required to pay the foregoing,
Tenant shall have the option to terminate this Lease upon 30 days written notice without any termination fee. 
 E.
License Fees. Tenant shall pay, as they become due and payable and before they become delinquent, all fees, charges and expenses required for license and/or permits, if any, required for Tenant’s use of the Leased Premises, during
the term of this Lease or any extension thereof. 
 F. Insurance. Tenant agrees to obtain and keep in force at its
expense prior to commencement of Tenant’s construction and/or fixturing on every occasion and for the term of this Lease and any extensions thereof, Comprehensive General Liability Insurance insuring Landlord and Tenant from all claims, demands
or actions with minimum limits of liability in respect of bodily injury or death of One Million Dollars ($1,000,000.00) for each occurrence and not less than Five Hundred Thousand ($500,000.00) for property damage. Said policy or policies shall be
issued by an insurance company and in form satisfactory to Landlord. Tenant shall carry like coverage against loss or damage by boiler or internal explosion by boilers, if there is a boiler in the leased premises. Said insurance shall not be subject
to cancellation, change or modification except after at least thirty (30) days prior written notice to Landlord, and the policy or policies, or duly executed certificate or certificates for the same, together with satisfactory evidence of the
payment of premium thereon, shall be deposited with Landlord at the commencement of the term and renewals thereof not less than thirty (30) days prior to the expiration of the term of such coverage. 
  

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 Tenant shall, prior to Tenant’s commencement of construction and fixturing on every
occasion, provide Workmen’s Compensation Insurance on its employees or agents, maximum limits prescribed by the laws of the State of Minnesota. Tenant shall obtain and keep in force, at its expense, for the term of this Lease and any extension
thereof, Fire and Extended Coverage Insurance, including vandalism, malicious mischief, and sprinkler leakage coverage, covering all of Tenant’s stock in trade, fixtures, furniture, equipment, signs and all other installations and improvements
not a part of the building made by Tenant in, on or about the Leased Premises, for the full insurable value thereof, plate glass insurance covering all show windows, plate glass and/or glass entrances of the leased premises. (Tenant may self-insure
all glass). Said policies shall provide for complete waiver of subrogation to the extent available; and shall provide for at least thirty (30) days’ notice by certified mail, return receipt requested, to Landlord before cancellation,
termination or change of such insurance. A copy of said policy or policies, and any renewals thereof, shall be delivered to and remain in the possession of Landlord. 
 Landlord shall procure during the term of this Lease, fire, windstorm, (all-risk) extended coverage to extent available,
rental loss insurance for loss due to fire or casualty, and general liability insurance on the building and other improvements composing the Demised Premises; provided, however, Tenant shall reimburse Landlord monthly with the base rent and other
monthly payments due under this Lease 1/12th of the actual
net annual cost and expense to Landlord of such insurance. 
 G. Waiver of Subrogation. Anything in this Lease to
the contrary notwithstanding, neither Landlord nor Tenant shall be liable to the other for any loss or damage to property, or injury to or death of persons, occurring on the Leased Premises, or the adjoining properties, parking area, sidewalks,
streets, alleys or passageways, or in any manner growing out of or in connection with Tenant’s use and occupancy of the Leased Premises, or the condition thereof or of adjoining parking areas, street, sidewalks, alleys or passageways, caused by
the negligence or fault of Landlord and Tenant, or of their respective agents, employees, subtenants licensees, assignees or invitees, to the extent that such loss or damage to property, or injury to or death of persons, is covered or indemnified by
insurance carried by the other party regardless of whether such insurance is payable to or protects landlord or Tenant, or both, or for which such party is otherwise reimbursed; and Landlord and Tenant each respectively hereby waive all right of
recovery against the other, its agents, employees, subtenants, licensees, assignees, or invitees, for any such loss or damage to property or injury to or death of any persons to the extent that same is covered or indemnified by proceeds received
from any such insurance, or for which reimbursement is otherwise received, provided Landlord and Tenant can waive such right pursuant to the provisions of the respective insurance policy or policies of each. Landlord and Tenant agree to notify their
respective insurance companies, in writing, of the provisions of this paragraph, and in the event either party cannot waive its subrogation rights, such party shall notify immediately the other party of this fact in writing so that the other party
can obtain necessary insurance 
  

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 coverage itself to insure against possible subrogation actions by the other party’s insurance carrier.
It is agreed and understood that regardless of whether or not Tenant obtains the insurance as hereinabove provided, Landlord shall not be liable to any person or to any entity whatsoever for any loss or damage to any person or to any entity
resulting from any peril covered under the broadest form of fire and extended coverage insurance policy and endorsements thereto in use in the State of Minnesota, regardless of the amount of such loss or damage. 
 In addition, Tenant waives its subrogation rights against each and every other Tenant of the Demised Premises, provided, Tenant can waive
such rights pursuant to the provisions of its insurance policies; and Landlord shall exert reasonable efforts to have this provision included in the leases between Landlord and other tenants of the Demised Premises, provided Landlord can do so
pursuant to the provisions of the insurance policies of Landlord, and at no additional cost to Landlord. 
 ARTICLE 7.
SECURITY AND DAMAGE DEPOSIT. 
 Tenant, on or before the date of possession of the Leased Premises, shall deposit with
Landlord the sum of $7,000 to serve as a security and damage deposit. Said damage deposit is to be held by Landlord, without liability for interest, as a security and damage deposit for the faithful performance by Tenant of all the terms,
covenants and conditions of this Lease to be kept and performed by Tenant during the term hereof or any extension hereof. Prior to the time when Tenant shall be entitled to the return of this security deposit, Landlord shall be entitled to
intermingle such deposit with Landlord’s own funds and to use such security deposit for such purposes as Landlord may determine. In the event of the failure of Tenant to keep and perform any of the terms, covenants and conditions of this Lease
to be kept and performed by Tenant during the term hereof or any extension hereof, then Landlord, either with or without terminating this Lease, may (but shall not be required to) appropriate and apply all of such portion of said deposit as may be
necessary to compensate or repay Landlord for all losses or damages sustained or to be sustained by Landlord due to such breach on the part of Tenant, including, but not limited to overdue and unpaid rent, any other sum payable by Tenant to Landlord
pursuant to the provisions of this Lease, damages or deficiencies in the reletting of leased premises, and reasonable attorney’s fees incurred by Landlord. Should the entire deposit, or any portion thereof, be appropriated and applied by
Landlord, in accordance with the provisions of this paragraph, Tenant shall, upon written demand by Landlord, remit forthwith to Landlord a sufficient amount of cash to restore said security deposit to the original sum so deposited, and
Tenant’s failure to do so within five (5) days after receipt of such demand shall constitute a breach of this Lease. Said security deposit shall be returned to Tenant, less any depletion thereof as the result of the provisions of this
paragraph, at the end of the term of this Lease or any renewal thereof, or upon the earlier termination of this Lease. Tenant shall have no right to anticipate return of said deposit by withholding any amount required to be paid pursuant to the
provisions of this Lease or otherwise. 
  

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 In the event Landlord shall sell the Leased Premises, or shall otherwise convey or dispose
of its interest in this Lease, Landlord shall assign said security deposit or any balance thereof to Landlord’s assignee, whereupon Landlord shall be released from all liability for the return or repayment of such security deposit and Tenant
shall look solely to the new Landlord for the return and repayment of said security deposit. Said security deposit shall not be assigned or encumbered by Tenant without the written consent of Landlord, and any assignment or encumbrance without such
consent shall not bind Landlord. In the event of any rightful and permitted assignment of this Lease by Tenant, said security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further
liability with respect to the return of said security deposit to the assignor. 
 ARTICLE 8. MAINTENANCE.

 A. Tenant shall be responsible for overseeing the maintenance of the exterior common areas including parking areas,
driveways, sidewalks, lawn and other green areas and landscaping including, but not limited to, all costs and expenses of operating, managing, repairing and maintaining the property, providing lighting, cleaning, painting, removing of snow, ice and
debris, policing, inspecting, sprinkler system repair. 
 ARTICLE 9. SIGNS - REPAIRS AND MAINTENANCE - ALTERATIONS
AND IMPROVEMENTS - MECHANICS 
                         LIENS - INSPECTION 
 A. Signs. Tenant shall provide, at its expense, during the full term of this Lease and any extension or renewal thereof, a
sign or signs the form of which shall be agreed to by Landlord and Tenant, shall be harmonious to the general exterior architectural treatment of the building(s) of the Demised Premises, and such signs shall conform to sign criteria of the city. No
sign or advertising medium shall be used so as to be a nuisance or menace to Landlord. The cost of installing, maintaining, changing and removing all signs shall be borne by Tenant. Upon commencement of the term of this Lease, with said sign or
signs in place, Tenant shall not erect, install, place or cause to be erected, installed or placed, any additional signs, awnings, canopies, lettering, placards, decorations or advertising media of any type on the exterior or in the windows of the
lease premises without obtaining, on each occasion, the prior written consent of Landlord. Tenant shall have no right to erect any sign of any kind or nature which advertises a business or product other than Tenant’s, except signs for its
subtenant, Flexible Circuit Technologies, Inc., all of which signs must be approved by the City. 
 B. Repairs and
Maintenance. Landlord shall keep and maintain in good order, condition and repair, the foundation, structural aspects of exterior walls (except store fronts, plate glass or other breakable materials used in structural portions), the roof,
and the 
  

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 structural support elements of the roof of the building of which the leased premises are a part; however,
Landlord shall have no obligation to paint or decorate said foundation or exterior walls or roof. Any damage to any of the foregoing caused by any act or negligence of Tenant, its employees, agents, invitees, licensees, or contractors shall be
repaired promptly with the cost thereof paid by Tenant. 
 Except as hereinabove provided, Tenant, at its expense, shall keep
and maintain in good order, condition and repair, the leased premises and every part thereof, including, but not limited to, the exterior and interior portions of all doors, glass windows; all mechanical, plumbing, heating, air conditioning,
ventilating and electrical equipment and systems serving the leased premises; interior walls, partitions, floors and ceilings; signs of Tenant; and all fixtures, appliances and equipment furnished by Landlord, if any. 
 Landlord acknowledges that there are cracks in the floor of the warehouse which are not and shall not be the responsibility of Tenant.
Landlord and Tenant further agree that any repairs to the HVAC system shall be the responsibility of Tenant and Landlord shall be responsible for any replacement of any HVAC system except replacements caused by the acts or negligence of Tenant.

 C. Mechanics Liens. Tenant shall not permit any mechanics or similar liens to remain upon the Leased Premises
for labor or materials furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any character performed or claimed to have been performed on the Leased Premises, at the direction or with the consent of Tenant,
whether such work was performed or materials furnished before or after the commencement of the term of this Lease. Tenant may, however, contest the validity of such lien or claim, provided Tenant shall give to Landlord reasonable security to insure
payment and to prevent any sale, foreclosure or forfeiture of the Leased Premises by reason of such non-payment, if required by Landlord. Upon a final determination of the validity of any such lien or claim, Tenant shall immediately pay any judgment
or decree rendered against Tenant or Landlord, including, but not limited to, all proper costs and charges, and shall cause such lien to be released of record without costs to Landlord. 
 D. Landlord’s Right to Inspect and Repair. Landlord, or his agents, shall have the right to inspect any part of the
Leased Premises at any reasonable time. Tenant shall make any repairs, which, in Landlord’s opinion, are necessary for the protection, preservation and maintenance of the leased premises or any part thereof. If Tenant fails to commence such
repairs promptly and adequately and/or fails to proceed diligently to completion, Landlord, at its option, may make such repairs, and any expenditures made in connection with such work shall be due and payable from Tenant upon demand plus an amount
equal to ten percent (10%) of such expenditures for overhead and supervision. Landlord shall give Tenant as much notice as reasonably possible. 
  

 12 

 ARTICLE 10. DAMAGE BY FIRE OR OTHER CASUALTY. 
 A. Notice. Tenant shall give immediate written notice to Landlord of any damage caused to the leased premises by fire or other
casualty. 
 B. Partial Damage to Lease Premises. In the event the Leased Premises shall be damaged by fire or
other casualty to the extent of fifty percent (50%) or less of the costs of replacement of the leased premises, and such damage is covered by Landlord’s insurance, and can be repaired within ninety (90) days after the date of the
happening of the event causing the damage, Landlord shall cause the damage to be repaired at its expense provided, however, in the event such damage occurs during the last one (1) year of this Lease, Landlord shall have no obligation to cause
the damage to be repaired. 
 C. Substantial Damage to Leased Premises. In the event the Leased Premises shall be
damaged by fire or other casualty, and such fire or other casualty shall not be covered by Landlord’s insurance, or the leased premises shall be damaged to the extent of more than fifty percent (50%) of the costs of replacement of the
Leased Premises, Landlord may elect to terminate this lease. If the premises cannot be repaired within ninety (90) days after the date of the happening of the event causing the damage, Landlord or Tenant may elect to terminate this Lease. Any
of such elections shall be made by the giving of written notice to such effect by Landlord or Tenant to the other within thirty (30) days after the date of the happening of the event causing the damage. This lease shall remain in full force
unless it is terminated as herein provided. 
 D. Continued Operation; Abatement of Rent. As promptly as is
practicable after such fire or other casualty and during any period of repair or reconstruction of the Leased Premises Tenant shall continue the operation of its business within the Leased Premises to the extent practicable. If the fire or other
casualty, repairing or rebuilding shall render the Leased Premises untenantable, in whole or in part, a proportionate abatement of the rent shall be allowed from the date of the happening of the event causing the damage until the date Landlord
completes the repairs or rebuilding, or, in the event Landlord elects to terminate this Lease, until the notified date of termination, said proportionate abatement to be computed on the basis of the relation which the square foot area of the space
in the building on the Leased Premises rendered untenantable bears to the total square foot area of the building on the Leased Premises. 
 E. Obligations Upon Replacement; Waiver of Damages. In the event Landlord is obligated, or exercises its election to repair, restore or replace the improvements, it shall proceed to do so
with due diligence and at its sole cost and expense. In determining “due diligence” consideration shall be given to fire and other casualties, governmental restrictions and regulations, strikes, lockouts, and construction delays beyond the
control of Landlord. In no event shall Landlord be required to repair, restore or replace Tenant’s stock in trade, 
  

 13 

 fixtures, furnishings, equipment, floor or wall coverings. In the event Landlord is required or elects to
repair, restore or replace the improvements, Tenant shall proceed with due diligence, at Tenant’s sole costs and expense, to repair, restore or replace its stock in trade, fixtures, furniture, furnishings, equipment, floor and wall coverings,
other personal property, signs and improvements originally installed by Tenant at its own expense. Landlord shall not be responsible for, nor liable to, Tenant for any damages whatsoever caused by any damage, or destruction to the leased premises,
nor for any delay in repairing, restoring or replacing, nor for inability to repair, restore, or replace, nor for any other cause whatsoever beyond Landlord’s control. All property of Tenant and all property kept, store or maintained in or upon
the Leased Premises, adjacent sidewalks, loading areas or other common areas shall be at the sole risk of Tenant. 
 ARTICLE 11. EMINENT DOMAIN. 
 A. Leased Premises. If the Leased
Premises, or such portion thereof as to render the balance unsuitable for the purposes of Tenant, as hereinafter set forth, is taken by condemnation or the right of eminent domain or by private sale in lieu thereof to the potential condemning
authority, either party shall be entitled to terminate this Lease upon written notice to the other within thirty (30) days after Tenant has been deprived of possession by such taking or sale. If any portion of the Leased Premises is so taken or
sold and if this Lease is not terminated in accordance with the provisions hereof, Landlord shall proceed to restore and rebuild the remaining portion thereof so as to make an architecturally complete unit as diligently as is practicable, and in
such event, a proportionate abatement of the minimum guaranteed rent shall be allowed from the appropriate date, said proportionate abatement to be computed on the basis of the relation which the square foot area of the space in the leased premises
so taken bears to the whole square foot area of the leased premises. Nothing in this Article shall be construed to permit the abatement in whole or in part, of the other charges provided for in this Lease. 
 B. Demised Premises. In the event fifty percent (50%) or more of the building of which the Leased Premises are a part is
taken by condemnation or the right of eminent domain or by private sale in lieu thereof to potential condemning authority, either party shall be entitled to terminate this Lease upon written notice to the other on or before the date possession is to
be surrendered to the public or quasi-public authority. 
 C. Parking Area. In the event so
much of the parking area is taken by condemnation or the right of eminent domain or by private sale in lieu thereof to potential condemning authority, so as to leave a parking area with a ratio of less than one (1)parking space per 500 square feet
of office/warehouse area, Tenant may notify Landlord in writing that it intends to terminate this Lease in the event sufficient parking is not made available in a location reasonably accessible to the Demised Premises in order to bring the ratio up
to one and one-half (1 1/2) square feet of parking
area to one (1) square foot of retail selling area, and Landlord shall have ninety (90) days within which to substitute such parking area before Tenant’s notice of termination becomes effective. 
  

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 D. Claim for Damages. Tenant shall not be entitled to claim, or have paid to
Tenant, any compensation or damages whatsoever for or on account of any loss, injury, damage or taking of any right, interest or estate of Tenant, and Tenant hereby relinquishes and hereby assigns to Landlord any rights to any damages, but Landlord
shall be entitled to claim and have paid to it for the use and benefit of Landlord all compensation and damages for and on account of or arising out of such taking or condemnation without deduction from the amount thereof for and on account of any
right, title interest or estate of Tenant in or to said property, and Tenant, upon request of Landlord, shall execute any and all releases or other documents as shall be required by such public or quasi-public authority; provided however, Tenant
shall have the right to make its claim for its fixtures and moving expenses to the extent such damages are allowable. 
 ARTICLE 12. ASSIGNMENT OR SUBLEASE - SALE-NOVATION - SUBORDINATION - OFFSET STATEMENT -  
                                    ATTORNMENT

 A. Assignment or Sublease by Tenant. Tenant may not voluntarily or by operation of law, assign or transfer this
Lease, or sublease the whole or any part of the Leased Premises, without the prior written consent of Landlord, which consent is not to be unreasonably withheld. In either case, Landlord agrees to consent to an assignment or transfer to a credit
worthy party who will conduct a business appropriate for the Demised Premises, but such consent shall not operate as a release of Tenant. 
 B. Sale by Landlord. Landlord shall have the right to exhibit the Leased Premises to prospective purchasers, and the right to sell or transfer the Leased Premises subject to all provisions
of this Lease 
 C. Novation in the Event of a Sale. In the event of the sale of the Leased Premises, Landlord
shall be and hereby is relieved of all of the covenants and obligations created hereby accruing from and after the date of sale, and such sale shall result automatically in the purchaser assuming and agreeing to carry out all the covenants and
obligations of Landlord herein. Notwithstanding the foregoing provisions of this Article, Landlord, in the event of a sale of the leased premises, shall cause to be included in the agreement of sale and purchase a covenant whereby the purchaser of
the Leased Premises assumes and agrees to carry out all of the covenants and obligations of Landlord herein. 
 D.
Subordination. Tenant hereby agrees that this Lease is, and shall be, subordinate or superior, at the option of Landlord, to any mortgage, deed or trust or any other hypothecation for security which has been or which hereafter may be
placed by Landlord 
  

 15 

 upon the Leased Premises, or the land or building of which they are a part, and that such subordination or
superiority, depending on Landlord’s election from time to time, shall be effective without any further act by Tenant. Tenant agrees hereby to execute upon demand any and all further documents or instruments in addition to the Lease which may
be deemed necessary or requisite or desired to effectuate such subordination or superiority. 
 Tenant hereby appoints
irrevocably Landlord as the attorney-in-fact of Tenant to execute and deliver any and all further documents or instruments, in addition to this Lease, which may be deemed necessary or requisite or desired to effectuate such subordination or
superiority. 
 E. Offset Statement. Within ten (10) days after request therefor by Landlord, or in the event
that upon any sale, assignment of hypothecation of the leased premises or the land or building of which they are a part by Landlord, an offset statement shall be required from Tenant. Tenant agrees hereby to deliver in recordable form a Certificate
to any proposed mortgagee or purchaser or to the Landlord certifying (if such be the case) that this Lease is in full force and effect and that there are no defenses or offsets thereto, or stating those claimed by Tenant. In the event Tenant fails
to deliver said offset statement within said ten (10) days after request, Tenant hereby appoints irrevocably Landlord as the attorney-in-fact of Tenant to execute and deliver said offset statement. 
 F. Attornment. In the event any proceedings are brought for the foreclosure of the Leased Premises, or in the event of
exercise of the power of sale under any mortgage made by Landlord covering the Leased Premises, Tenant shall attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as Landlord under this Lease. 
 G. Non-Disturbance. Notwithstanding anything contained in this Lease to the contrary, the subordination and attornment
agreement of Tenant contain herein above is upon the express condition that this Lease be recognized by any mortgagee and/or their successors or assigns or purchasers upon foreclosure, and that the rights of the Tenant shall remain in full force and
effect during the Term of this Lease as long as Tenant shall continue to perform all of the covenants and conditions of this Lease and shall not be otherwise in default. 
 ARTICLE 13. REMEDIES OF LANDLORD. 
 A. Remedies of
Landlord. In the event that during the term of this Lease or extension hereof (regardless of the pendency of any bankruptcy, reorganization, receivership, insolvency or other proceedings, in law, in equity, or before any administrative
tribunal, which has prevented or might prevent compliance by Tenant with the terms of this Lease): 
 1. Tenant
shall have failed to pay any installment of rent or any other charge provided herein, or any portion thereof when the same shall be due and payable, and the same shall remain unpaid for a period of fifteen (15) days; or 
  

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 2. Tenant shall have failed to comply with any other provisions of this
Lease and shall not cure such failure within thirty (30) days after Landlord, by written notice, has informed Tenant of such non-compliance. In the case of a default which cannot, with due diligence, be cured within a period of thirty
(30) days, Tenant shall have such additional time to cure same as may reasonably be necessary, provided, Tenant proceeds promptly and with due diligence to cure such default after receipt of said notice; or 
 3. Tenant, or its guarantor, if any, shall file in any court a petition in bankruptcy or insolvency or for reorganization or
for creditors, an arrangement under any section or sections, of any bankruptcy act, or for the appointment of a receiver or trustee of all or a portion of Tenant’s property; or 
 4. An involuntary petition of the kind referred to in subparagraph 3 of this Article shall be filed against Tenant, or its
guarantor, if any, and such petition shall not be vacated or withdrawn within ninety (90) days after the date of filing thereof; 
 5. Tenant, or its guarantor, if any, shall make an assignment for the benefit of creditors; or 
 6. Tenant, or its guarantor, if any, shall be adjudicated a bankrupt; or 
 7. Tenant shall cease to conduct its normal business operations in the leased premises or shall vacate or abandon the leased premises and leave same vacated or abandoned for a period of ten (10) days and not pay rent on other sums when
due; or 
 8. Tenant shall do or permit to be done anything which creates a lien upon the leased premises;
provided, however, this subparagraph shall be subject to the provisions of Article 9D; or 
 9. Tenant or an
agent of Tenant shall falsify any report required to be furnished to Landlord pursuant to the terms of this Lease; then Landlord upon ten (10) days written notice to Tenant may elect either (a) to cancel and terminate this Lease and this
Lease shall not be treated as an asset of Tenant’s estate, or (b) to terminate Tenant’s right to possession only without terminating this Lease. 
 In the event of election under (9) above to terminate Tenant’s right to possession only, Landlord may, at Landlord’s option, in addition to any other remedies which Landlord has 

 

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 upon default, give Tenant written notice that unless all of the covenants of this Lease are fully complied
with within an additional fifteen (15) days after the giving of said notice, the entire amount of rent then remaining unpaid shall become due and payable immediately upon the expiration of said fifteen (15) days, and unless all of the
covenants of this Lease are fully complied with by Tenant within said fifteen (15) days, the whole of said rent shall become due and payable immediately upon the expiration of said fifteen (15) days without further notice to Tenant;
provided, however, if the nature of the default be such that once made it cannot be cured nor the terms of this Lease complied with in that respect and in that instance, said fifteen (15) days’ notice shall not be required and the entire
amount of said rent remaining unpaid may be declared due and payable forthwith. If Landlord, either before or after entry into possession without termination of the Lease, elects to exercise said right to accelerate the payment of the unpaid rent,
Landlord, at any time after such entry, shall have the right of election to recover, in lieu of the amounts which would thereafter be payable under the provisions of the immediately preceding full paragraph, the amount by which the rental value of
the portion of said term unexpired at the time of such election is less than the entire amount of unpaid rent payable hereunder for said unexpired portion of said term, which deficiency and all expenses incident thereto, including reasonable
brokerage fees and legal expenses, shall be due to Landlord as of the time Landlord exercises said election, notwithstanding that the full term hereof has not expired; and if Landlord, after such entry, leases said leased premises, then the rent
payable under such new lease shall be conclusive evidence of the rental value of said unexpired portion of said term. 
 Notwithstanding the fact that initially Landlord elects under (9) above to terminate Tenant’s right to possession only, Landlord shall have the continuing right to cancel and terminate this Lease by serving five
(5) days’ written notice on Tenant of such further election, and shall have the right to pursue any remedy at law or in equity that may be available to Landlord. 
 B. Computation of Rent. If Landlord shall at any time be entitled to rent under this Lease pursuant to any of the covenants,
conditions or agreements of this Lease either (a) after the termination of Tenant’s right to possession without termination of this Lease, or (b) after the termination of this Lease, Landlord, shall recover and Tenant agrees to pay
the minimum guaranteed rent, and any other charges as provided for in this Lease. 
 C. Other Remedies of
Landlord. If Tenant shall default in the performance of any covenant required to be performed by it under this Lease, Landlord may perform the same for the account and at the expense of Tenant, upon giving notice to Tenant of its intention
to do so. If Landlord at any time is compelled to pay, or elects to pay, any sums of money by reason of the failure of Tenant to comply with any provisions of this Lease, or if Landlord is compelled to incur any expenses, including reasonable
counsel fees in instituting, prosecuting or defending any action or proceeding instituted by reason of any default of Tenant hereunder, the sum or sums so paid by Landlord shall be due from Tenant to Landlord 
  

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 on the next date following the payment of such sums upon which a regular monthly rental payment is due,
together with interest at the rate of eight percent (8%) per annum from the respective dates of such payment. In addition, in the event Landlord is required to perform construction work on behalf of Tenant, Landlord shall be entitled to an
amount equal to ten percent (10%) of the amount of the costs and expenses of such construction as payment to Landlord for overhead and supervision. 
 D. Cumulative Rights. No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy herein or by law provided, but each shall be
cumulative and in addition to every other right or remedy given herein or not or hereafter existing at law or in equity or by statute. 
 ARTICLE 14. MISCELLANEOUS. 
 A. Relationship of the Parties. Nothing contained in
this Lease shall be deemed or construed by the parties hereto or by the third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between Landlord and Tenant, it being
expressly understood and agreed that neither the method of computation of rent nor any other provisions contained in this Lease nor any act or acts of the parties hereto shall be deemed to create any relationship between Landlord and Tenant other
than the relationship of Landlord and Tenant. 
 B. Recording. Tenant shall not record this Lease without the
written consent of Landlord. 
 C. Quiet Enjoyment. Subject to Tenant’s performance of all its obligations
under this Lease, Tenant shall have the peaceful and quiet use of the Leased Premises without hindrance on the part of Landlord, and Landlord shall warrant and defend Tenant in such peaceful and quiet use and against the lawful claims of all persons
claiming by, through or under Landlord. 
 D. Notices. All notices, demands, offers, requests, and other
communications from either Landlord or Tenant to the other shall be in writing and shall be considered to have been duly given or served if sent by first class certified or registered mail, return receipt requested, postage prepaid, to the party at
its address set forth below, or to such other address as such party may hereafter designate by written notice to the other party. 
  

			
	 1. If to Landlord, to:
	  	Schany Family Limited Partnership
		  	22140 Oakdale Drive
		  	Rogers, MN 55374
		  	Attn: Thomas J. Schany
		
	 2. If to Tenant, to:
	  	Lumificient Technologies, LLC
		  	8752 Monticello Lane
		  	Maple Grove, MN
		  	Attn: Zdenko Grajcar

  

 19 

 E. Importance of Each Covenant. Each covenant and agreement on the part of one
party is understood and agreed to constitute an essential part of the consideration for each covenant and agreement on the part of the other party. 
 F. Waiver. The receipt of rent by Landlord with knowledge of any breach of this Lease by Tenant or of any default on the part of Tenant in the observance of performance of any of the
obligations or covenants of this Lease, shall not be deemed to be a waiver of any provisions of this Lease. No failure on the part of Landlord to enforce any obligation or covenant herein contained, nor any waiver of any right hereunder by Landlord,
unless in writing, shall discharge or invalidate such obligation or covenant or affect the right of Landlord to enforce the same in the event of any subsequent breach or default. 
 The receipt by Landlord of any rent or other sums of money or other consideration hereunder paid by Tenant after the termination, in any
manner, of Tenant’s right of occupancy or of the term herein demised, or after giving the Landlord of any notice hereunder to affect such termination, shall not reinstate, continue or extend their term hereof, or Tenant’s right of
occupancy, or in any manner impair the efficacy of any such notice of termination as may have been given hereunder by Landlord to Tenant prior to the receipt of any such sum of money or other consideration unless so agreed to in writing and signed
by Landlord. Neither the acceptance of keys nor any similar act or thing done by Landlord, during the term hereof, shall be deemed to be a release of Tenant from his obligations hereunder, excepting only an agreement, in writing, signed by Landlord.
Any right herein granted to Landlord to terminate this Lease or possession thereunder shall apply to any extension or renewal of the term hereof and the exercise of any such right during the term herein demised shall terminate any extension or
renewal of the term hereof or possession during such extension or renewal, as the case may be. 
 G. Accord and
Satisfaction. No payment by Tenant or receipt by Landlord of a lesser amount than the payments stipulated herein shall be deemed to be other than on account of the earliest stipulated rent, nor shall any endorsement or statement on any check
or any letter accompanying any check or payment as rent or similar payment be deemed an accord payment without prejudice to Landlord’s right to recover the balance of such rent or other required payment, or pursue any other remedy provided in
this Lease. 
 H. Brokers. Tenant warrants that it has had no dealings with any broker or agent in connection with
the negotiation or execution of this Lease other than CB Richard Ellis and Tenant agrees to indemnify and hold Landlord harmless from and against any and all 
  

 20 

 costs, expense, or liability for commissions or other compensation and charges claimed by any broker or
agent by reason of services alleged to have been rendered to, at the instance of, or agreed to by Tenant in connection with this Lease. 
 I. Invalidity. If any part of this Lease or any part of any provision hereof shall be adjudicated to be void or invalid, then the remaining provision hereof not specifically so adjudicated
to be invalid, shall be executed without reference to that part or portion so adjudicated, insofar as such remaining provisions are capable of execution. 
 J. Governing Law. This Lease shall be subject to and governed by the laws of the State of Minnesota and all questions concerning the meaning and intention of the terms of this Lease and
concerning the validity hereof and questions relating to performance hereunder shall be adjudged and resolved in accordance with the laws of that state, notwithstanding the fact that one or more of the parties now is or may hereafter become a
resident of a different state. 
 K. Definition of Landlord and Tenant; Joint and Several Liability. The words
“Landlord” and “Tenant”, used herein shall include the plural thereof, and the necessary changes required to make the provisions hereof apply to corporations, partnerships, associations, or men or women shall be construed as if
made. If two or more parties are referred to collectively under one designation, the liability of each shall be joint and several. 
 L. Headings. The headings of the paragraphs and subparagraphs of this Lease are for convenience of reference only and do not form a part hereof and shall not be interpreted or construed to modify, limit or amplify such
paragraphs and subparagraphs. 
 M. Parties in Interest. This Lease shall inure to the benefit and be binding upon
the heirs, executors, administrators, successors and assigns of Landlord; and shall inure to the benefit, and subject to the provisions of Article 12A and be binding upon the heirs, executors, administrators, successors and assigns of Tenant.

 N. Entire Agreement; Exhibits; Rider. This instrument including the Exhibit(s), contains the entire agreement
of the parties. It may not be changed orally but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension, or discharge is sought. The attached Exhibit(s) are made a part hereof.

  

 21 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Lease Agreement as of
the date and year first above written. 
  

			
	LANDLORD:
	
	Schany Family Limited Partnership
		
	By:	 	 /s/    Thomas J. Schany

	Its:	 	 General Partner

	
	TENANT:
	
	Lumificient Technologies, LLC
		
	By:	 	 /s/    Zdenko Grajcar

	Its:	 	 Vice President

  

 22 

 EXHIBIT “A” 
 Tenant’s Work 
 Proposed
Improvements/Changes in office and warehouse area: 
  

	 	•	 	 Removal of the wall (1) in south office between offices and main entrance 

  

	 	•	 	 Removal of the connecting door (3) between south and north offices 

  

	 	•	 	 Removal of the wall and double service doors (4) in north offices 

  

	 	•	 	 Removal of the wall (5) in the north offices 

  

	 	•	 	 Build decorative receptionist “half wall” (2) in the south offices 

  

	 	•	 	 Build separation wall (6) between offices and restrooms 

  

	 	•	 	 Build decorative “half wall” (7) in south offices 

  

	 	•	 	 Place ceramic (or vinyl) tiles in main entrance area 

  

	 	•	 	 Replace connecting single door (3) with French glass doors (9) 

  

	 	•	 	 Build conference room (8) 

  

	 	•	 	 Build new offices (10) and (11) 

  

	 	•	 	 Build new storage room (12) 

  

	 	•	 	 Build new lunch room (14) 

  

	 	•	 	 Build new lab room (13) 

  

	 	•	 	 Build new assembly room (15) 

  

	 	•	 	 Carpet whole office area 3650 sq. ft. with 26oz premium grade carpet (15 years warranty) 

 Proposed floor layout is not final and may be changed 
 Other improvements will be needed in the warehouse area (additional assembly rooms). Final layout to be determined. All improvements and changes will be sent for landlord’s approval. 
  

 23Preferred Stock Exchange Agreement

 EXHIBIT 10.38 
 THE INFORMATION CONTAINED IN THIS AGREEMENT AND OTHER MATERIALS SUPPLIED TO THE HOLDERS OF SHARES OF THE COMPANY’S SERIES A PREFERRED STOCK IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY
IS CONFIDENTIAL, MATERIAL NON-PUBLIC INFORMATION OF THE COMPANY, AND IS BEING SUBMITTED WITH THE UNDERSTANDING THAT SUCH SHAREHOLDERS WILL NOT REPRODUCE OR RELEASE THIS AGREEMENT, INCLUDING THE EXHIBITS AND SCHEDULES HERETO, DISCUSS ANY INFORMATION
CONTAINED IN IT, OR USE IT FOR ANY PURPOSE OTHER THAN EVALUATING THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. BY ACCEPTING DELIVERY OF THIS AGREEMENT, AND OTHER MATERIALS, EACH SUCH SHAREHOLDER AGREES THAT HE/IT (A) WILL NOT REPRODUCE ANY
PART OF THIS AGREEMENT OR DOCUMENTS SUPPLIED WITH IT OR DIVULGE OR MAKE AVAILABLE TO ANYONE, OTHER THAN PROFESSIONAL ADVISORS, ANY OF THEIR CONTENTS AND (B) WILL NOT PURCHASE OR SELL SECURITIES OF THE COMPANY OR COMMUNICATE SUCH INFORMATION TO
ANY OTHER PERSON UNDER CIRCUMSTANCES IN WHICH IT IS REASONABLY FORESEEABLE THAT SUCH PERSON IS LIKELY TO PURCHASE OR SELL SECURITIES OF THE COMPANY WHILE IN POSSESSION OF MATERIAL NON-PUBLIC INFORMATION ABOUT THE COMPANY. 
 NEXXUS LIGHTING, INC. 
 PREFERRED STOCK EXCHANGE AGREEMENT 
 THIS PREFERRED STOCK EXCHANGE AGREEMENT (this
“Agreement”) is made and entered into as of October 29, 2009 (the “Signing Date”), by and between Nexxus Lighting, Inc., a Delaware corporation (the “Company”), and each of the holders (individually, a
“Shareholder,” and collectively, the “Shareholders”) of shares of the Company’s Series A Preferred Stock, $.001 par value per share (the “Series A Shares”) set forth on Schedule I hereto. The Company and the
Shareholders are sometimes referred to herein individually as a “Party” or collectively as the “Parties.” Certain capitalized terms used herein are defined in Section 7.07 of this Agreement. 
 BACKGROUND 
 A. On November 11, 2008, the holders of the Series A Shares and the Company entered into that certain Preferred Stock and Warrant Purchase Agreement (the “Preferred Stock Purchase Agreement”). 
 B. The Board of Directors of the Company has determined that it is in the best interests of the Company to recapitalize its existing capital
stock through the exchange of the Series A Shares for other securities of the Company as set forth herein (the “Exchange”). 
 C. Each Shareholder owns the number of Series A Shares set forth opposite the name of such Shareholder on Schedule I hereto, and has agreed to exchange all of the Series A Shares owned by such Shareholder upon the terms and
conditions set forth in this Agreement. 

 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing and of the mutual premises, covenants, representations, warranties and agreements
set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 
 ARTICLE I 
 EXCHANGE OF SERIES A PREFERRED STOCK 
 1.01 Exchange. Subject to the terms and conditions hereof, and in
reliance on the respective representations, warranties and covenants of the Parties contained herein, effective simultaneously with the closing of a Qualified Public Offering (the “Exchange Date”), and conditioned upon the closing with the
underwriters of the sale of the Company’s Common Stock in such Qualified Public Offering, each Series A Share shall automatically be exchanged for other securities of the Company (the “Exchange Securities”) as set forth below. The
type of Exchange Securities to be issued to each Shareholder in the Exchange shall be as set forth on the Exchange Offer Election and Shareholder Signature Page (the “Exchange Offer Election”) executed by each such Shareholder and
delivered to the Company and as designated opposite the name of such Shareholder under the caption “Exchange Securities” on Schedule I hereto. Subject to receipt of a fully executed copy of this Agreement, within three Business Days
after the Exchange Date the Company shall issue the applicable Exchange Securities to each Shareholder against delivery by such Shareholder of his or its Series A Shares duly endorsed in blank for transfer to the Company, free and clear of any and
all security interests or transfer, voting or other restrictions or encumbrances of any kind. All accrued, but unpaid, dividends (the “Dividends”) on the Series A Shares shall be paid by the Company in cash within three Business Days after
the Exchange Date. Pursuant to the Exchange, and conditioned upon the closing with the underwriters of the sale of the Company’s Common Stock in such Qualified Public Offering, the Company shall issue, as applicable, the following Exchange
Securities to the Shareholders: 
 (a) Each Shareholder who has elected “Option 1” as designated opposite the name of
such Shareholder under the caption “Designated Option” on Schedule I hereto shall exchange all of his or its Series A Shares for shares of the Company’s Common Stock, $.001 par value per share (the “Common Stock”)
based on the aggregate Stated Value of the Series A Shares being exchanged. The number of shares of Common Stock to be delivered in the Exchange will be determined by dividing the aggregate Stated Value of the Series A Shares being exchanged by the
greater of (a) $3.15 or (b) the per share public offering price in the Qualified Public Offering. For purposes of example only, and not by way of limitation, if the per share public offering price in the Qualified Public Offering is $3.50
and 20 Series A Shares are being exchanged, the aggregate Stated Value would be $100,000 and 28,571 shares of Common Stock would be issued by the Company in the Exchange. 
 (b) Each Shareholder who has elected “Option 2” as designated opposite the name of such Shareholder under the caption “Designated Option” on Schedule I hereto shall exchange all
of his or its Series A Shares for a warrant to purchase shares of Common Stock of the Company, the form of which is attached hereto as Exhibit A (the “Warrant”) and a convertible promissory note of the Company in the form attached
hereto as Exhibit B (individually a “Note,” and collectively, the “Notes”). The principal amount of each Note issued in the Exchange will equal the aggregate Stated Value of the Series A Shares being exchanged. Each Note
will bear interest at 1% per annum and mature three years after issuance. The Notes may be prepaid by the Company at any time upon not less than 30-days prior written notice. The number of shares of Common Stock deliverable upon conversion of a
Note will be determined by dividing the aggregate principal amount of the Note by $             (the “Conversion Price”), 
  

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 which is equal to the sum of the Market Value of the Company’s Common Stock immediately preceding the
entering into of this Agreement plus the Warrant Coverage Value). For purposes of this Agreement, Market Value and Warrant Coverage Value shall be determined by applicable NASDAQ rules. For purposes of this Agreement, Market Value means the
consolidated closing bid price of the Company’s Common Stock immediately preceding the entering into of this Agreement. Warrant Coverage Value means a value of $.125 for each 100% of Warrant Coverage. For purposes of example only, and not by
way of limitation, if the Warrant Coverage for the Notes is 200%, the Warrant Coverage Value would be $.25 (i.e., 200% multiplied by $.125 equals $.25). For each $1.00 in principal amount of a Note issued in the Exchange, the Company will issue the
Note holder Warrants to purchase .3896 shares of Common Stock exercisable commencing six months after the issuance of the Warrants for a period terminating three years after issuance of the Warrants at an exercise price equal to the Market Value of
the Company’s Common Stock immediately preceding the entering into of this Agreement. 
 The shares of Common Stock
issuable pursuant to Section 1.01(a) above, upon conversion of the Notes (the “Note Shares”) and upon exercise of the Warrants (the “Warrant Shares”) are collectively referred to herein as the “Securities.”

 (c) Fractional Shares. No fractional shares of Common Stock shall be issued upon exchange of the Series A Shares. In
lieu of any fractional shares to which the holder would otherwise be entitled, the Company shall pay cash equal to the Stated Value of such fractional share. 
 (d) Delivery and Return of Series A Shares. Concurrently with the execution of this Agreement, each holder of record of Series A Shares shall deliver such holder’s certificates evidencing such
shares to the principal office of the Company. On the Exchange Date, and conditioned upon the closing with the underwriters of the sale of the Company’s Common Stock in a Qualified Public Offering, the Company shall issue, as applicable, the
Exchange Securities to the Shareholders. On the Exchange Date, each holder of record of Series A Shares shall be deemed to be the holder of record of the Exchange Securities issuable to such Shareholder in the Exchange, notwithstanding that
certificates representing such Series A Shares shall not have been surrendered at the office of the Company, that notice from the Company shall not have been received by any holder of record of Series A Shares, or that certificates evidencing such
Exchange Securities shall not then be actually delivered to such holder. All certificates evidencing Series A Shares that are required to be delivered for exchange in accordance with the provisions of this Agreement, from and after the Exchange Date
shall be deemed to have been retired and canceled and the Series A Shares represented thereby exchanged for the applicable Exchange Securities for all purposes, notwithstanding the failure of the holder or holders thereof to surrender such
certificates on or prior to such date. No Exchange will be consummated and the Company shall return all certificates representing Series A Shares to the Shareholders if a Qualified Public Offering has not been consummated on or before
February 15, 2010 (the “Termination Date”), unless the holders of a majority of the then outstanding Series A Shares consent in writing to up to a 90-day extension of the Termination Date. 
 (e) Reacquired Series A Shares. Any Series A Shares redeemed, purchased or otherwise acquired by the Company in any manner whatsoever
shall be retired and canceled promptly after the acquisition thereof. 
 (f) Transaction Documents. On the Exchange Date,
the Company and each of the Shareholders shall execute and deliver, as applicable, such additional instruments and documents as may be necessary or prudent, in the reasonable discretion of the Company and the Shareholders to consummate the
transactions contemplated herein (collectively with this Agreement, the Warrants and the Notes, the “Transaction Documents”); and the Company shall cause its legal counsel to deliver to the Shareholders a legal opinion in substantially the
form attached hereto as Exhibit C. 
  

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 1.02 Ownership Limitation. Each Shareholder represents and covenants to the Company
that neither the issuance of Common Stock pursuant to Section 1.01(a) above, nor upon exercise of the Warrants or conversion of the Notes will result in such Shareholder (individually or together with any other person or entity with whom such
Shareholder has identified, or will have identified, itself as part of a “group” in a public filing made with the Securities and Exchange Commission (“SEC”) involving the Company’s securities) acquiring, or obtaining the
right to acquire, in excess of 19.999% of the outstanding shares of Common Stock or voting power of the Company on a post-transaction basis that assumes that the transactions contemplated hereby shall have occurred. Such Shareholder does not
presently intend, alone or together with others, to make a public filing with the SEC to disclose that it has (or that it together with such other persons or entities have) acquired, or obtained the right to acquire, as a result of the transactions
contemplated hereby (when added to any other securities of the Company that it or they then own or have the right to acquire), in excess of 19.999% of the outstanding shares of Common Stock or the voting power of the Company on a post-transaction
basis that assumes that the transactions contemplated hereby shall have occurred. 
 1.03 Consent and Waiver. Each
Shareholder hereby consents to (a) the exchange of all or any part of the outstanding Series A Shares (whether held by the Shareholder or any other person), upon the terms and conditions set forth in this Agreement, (b) the redemption of
all or any part of the outstanding Series A Shares by payment in full in cash to any person or entity owning Series A Shares who is not a party to this Agreement of an amount up to the Stated Value and all accrued Dividends on such person’s
Series A Shares through the date of payment; provided that such redemption is made by the Company within thirty days after the Exchange Date and (c) the Company’s noncompliance with the financial covenants set forth in the Preferred Stock
Purchase Agreement for the quarter ended September 30, 2009. In addition, each Shareholder hereby waives (x) receipt of dividend payments on his or its Series A Shares and (y) all Dividends on his or its Series A Shares in excess of
10% per annum until the earlier of (i) the Exchange Date, (ii) May 1, 2010 or (iii) the termination of the Qualified Public Offering as evidenced by a written agreement between the Company and the underwriter or the filing
by the Company of a Form RW with the SEC memorializing its application to withdraw the registration statement with respect to the Qualified Public Offering (i.e., notwithstanding anything to the contrary, from and after the Signing Date, the
dividend rate on such Shareholder’s Series A Shares shall be 10% per annum until the earlier of the date set forth in (i), (ii) or (iii) above). 
 1.04 Consent of Noteholders. Each Shareholder who is also a holder of a Secured Promissory Note issued by the Company on June 18, 2009 hereby consents to (a) the exchange of all or any
part of the outstanding Series A Shares (whether held by the Shareholder or any other person), upon the terms and conditions set forth in this Agreement, (b) the redemption of all or any part of the outstanding Series A Shares by payment in
full in cash to any person or entity owning Series A Shares who is not a party to this Agreement of an amount up to the Stated Value and all accrued Dividends on such person’s Series A Shares through the date of payment; provided that such
redemption is made by the Company within thirty days after the Exchange Date and (c) the Company’s noncompliance with the financial covenants set forth in the Preferred Stock Purchase Agreement for the quarter ended September 30,
2009. 
  

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 ARTICLE II 
 REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS 
 Each Shareholder hereby represents and warrants to the Company as follows: 
 2.01 Ownership. The Shareholder is
the sole record holder and beneficial owner of the Series A Shares set forth opposite the name of such Shareholder on Schedule I hereto. Such Series A Shares are free and clear of all liens, pledges, mortgages, charges, security interests or
encumbrances of any kind. The Shareholder is not a party to any agreement or arrangement which will impose any such encumbrance upon the Series A Shares as a result of the transactions contemplated hereby. 
 2.02 Power and Authority; Enforceability. The Shareholder has the power and authority to execute and deliver this Agreement, to
perform his or its obligations hereunder and to consummate the transactions contemplated hereby. This Agreement constitutes a legal, valid, and binding obligation of the Shareholder, and is enforceable against the Shareholder in accordance with its
terms. 
 2.03 Approvals. No consent, approval, authorization or order of any person, entity, court, administrative
agency or governmental authority is required for the execution, delivery or performance of this Agreement by the Shareholder. 
 2.04 Conflicts. The execution, delivery and performance of this Agreement by the Shareholder will not (a) conflict with, or result in a breach of, or constitute a default under, or result in violation of, any agreement or
instrument to which the Shareholder is a party or by which the property of the Shareholder is bound or (b) result in the violation of any applicable law or order, judgment, writ, injunction, decree or award of any court, administrative agency
or governmental authority. 
 2.05 Acquiring for Investment. The Shareholder is acquiring the Securities for his or its
own account, for investment purposes only and not with a view towards or in connection with the public sale or distribution thereof in violation of the Securities Act of 1933, as amended (the “Securities Act”). The Shareholder will not,
directly or indirectly, offer, sell, pledge or otherwise transfer his or its Securities, or any interest therein, except pursuant to transactions that are exempt from the registration requirements of the Securities Act and/or sales registered under
the Securities Act. The Shareholder understands that the Shareholder must bear the economic risk of the Shareholder’s investment in the Securities indefinitely, unless the Securities are registered pursuant to the Securities Act and any
applicable state securities laws or an exemption from such registration is available, and that the Company has no present intention of registering any such Securities. 
 2.06 Accredited Investor Status. The Shareholder is: (a) an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act; (b) experienced in
making investments of the kind contemplated by this Agreement; and (c) capable, by reason of its business and financial experience, of evaluating the relative merits and risks of an investment in the Securities. 
 2.07 Information. The Shareholder has had the opportunity to discuss the transactions contemplated hereby with the Company’s
officers and has had the opportunity to obtain such information pertaining to the Company as has been requested, including but not limited to, filings made by the Company with the SEC under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). The Shareholder (a) can bear the economic risk of losing its entire investment in the Company and has adequate means for providing for its current financial needs and contingencies and (b) has the financial
acumen and sophistication to make an informed investment decision with respect to the transactions contemplated hereby and the Securities to be issued hereunder, understands that such Securities are restricted and not freely tradable, and has had
the opportunity to make inquiry to the Company regarding its operations and financial condition and has received answers to all of such questions. The Shareholder has reviewed the Company’s public filings with the SEC, including the risk
factors set forth therein. 
  

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 2.08 Exemption of Offering. The Shareholder understands that the Securities are being
issued by the Company in reliance upon an exemption from the registration requirements of the Securities Act, and applicable state securities laws, and that the Company is relying upon the accuracy of, and the Shareholder’s compliance with, the
Shareholder’s representations, warranties and covenants set forth in this Agreement to determine the availability of such exemption. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 The Company hereby represents and warrants to the Shareholders as follows: 
 3.01 Organization; Good Standing. Each of Lumificient Corporation and Advanced Lighting Systems, LLC is a wholly-owned subsidiary of
the Company. The Company is a corporation duly organized and existing in good standing under the laws of the state of Delaware and has the requisite corporate power to own its properties and to carry on its business as now being conducted. The
Company is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction where the failure so to qualify or be in good standing could reasonably be expected to have a Material Adverse Effect. “Material
Adverse Effect” means any effect which, individually or in the aggregate with all other effects, reasonably would be expected to be materially adverse to the business, operations, properties, financial condition, operating results or prospects
of the Company taken as a whole, or on the transactions contemplated hereby. 
 3.02 Corporate Power and Authority;
Enforceability. The Company has the corporate power and authority to execute and deliver this Agreement and each of the other Transaction Documents to which the Company is a party, to perform its obligations hereunder and thereunder and to
consummate the transactions contemplated hereby and thereby. This Agreement and the other Transaction Documents to which the Company is a party constitute the legal, valid, and binding obligation of the Company, and is enforceable against the
Company in accordance with their respective terms. 
 3.03 Approvals. Except for (a) the consent of (i) the
holders of the Series A Shares and (ii) the holders of the Company’s secured promissory notes dated June 18, 2009 (the “June 2009 Notes”)and (b) filings pursuant to applicable state and federal securities laws and as
may be required by the rules and regulations of the Financial Industry Regulatory Authority and The NASDAQ Stock Market, no consent, approval, authorization or order of any person, entity, court, administrative agency or governmental authority is
required for the execution, delivery or performance of this Agreement by the Company. 
 3.04 Conflicts. The execution,
delivery and performance of this Agreement by the Company will not (a) conflict with, or result in a breach of, or constitute a default under, or result in violation of, any agreement or instrument to which the Company is a party or by which
the property of the Company is bound or (b) result in the violation of any applicable law or order, judgment, writ, injunction, decree or award of any court, administrative agency or governmental authority. 
 3.05 Absence of Certain Changes. Except as set forth in Schedule 3.05 or disclosed in the documents publicly filed by the Company
with the SEC (such documents, collectively, the “SEC Documents”), since December 31, 2008, there has been no material adverse change and no material adverse development in the business, properties, operations, financial condition,
results of operations or prospects of the Company. 
  

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 ARTICLE IV 
 TRANSFER RESTRICTIONS 
 4.01 Transfer of Restricted
Securities. Each Shareholder acknowledges that the Securities are restricted securities and are transferable only pursuant to: (a) an effective registration statement under the Securities Act pertaining to such securities; (b) Rule 144
of the SEC (or any similar rule or rules then in force) if such rule or rules are available; and (c) any other legally available means of transfer. In connection with the transfer of any Securities (other than a transfer described in clauses
(a) or (b) above), the holder thereof shall deliver written notice to the Company describing in reasonable detail the transfer or proposed transfer. 
 4.02 Restrictive Legend. Each Shareholder acknowledges and agrees that, upon issuance pursuant to this Agreement, the Securities shall have endorsed thereon a legend in substantially the following
form (and a stop-transfer order will be placed against transfer of the Securities until such legend has been removed): 
 “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE, AND ARE BEING OFFERED AND SOLD PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OR SUCH OTHER LAWS.” 
 The certificate(s) representing the Securities will also bear
any other legends required by applicable state securities laws. 
 4.03 Removal of Legend. The legend referred to in
Section 4.02 (the “Legend”) shall be removed and the Company shall issue a certificate without such Legend to the holder of any Security upon which it is stamped, and a certificate for a security shall be originally issued without the
Legend, if, (a) the sale of such Security is registered under the Securities Act, (b) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions
and reasonably satisfactory to the Company and its counsel (the reasonable cost of which shall be borne by the Company if, after six months, neither an effective registration statement under the Securities Act or Rule 144 is available in connection
with such sale) to the effect that a public sale or transfer of such Security may be made without registration under the Securities Act pursuant to an exemption from such registration requirements or (c) such Security can be sold pursuant to
Rule 144 and the holder provides the Company with reasonable assurances that the Security can be so sold without restriction. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge
the restrictions on transfer set forth in this Section. Each Shareholder agrees to sell all Securities, including those represented by a certificate(s) from which the Legend has been removed, or which were originally issued without the Legend, in
compliance with an exemption from the registration requirements of the Securities Act. In the event the Legend is removed from any Security or any Security is issued without the Legend and the Security is to be disposed of other than pursuant to a
registration statement or pursuant to Rule 144, then prior to, and as a condition to, such disposition such Security shall be relegended as provided herein in connection with any disposition if the subsequent transfer thereof would be restricted
under the Securities Act. Also, in the event the Legend is removed from any Security or any Security is issued without the Legend and thereafter the effectiveness 
  

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 of a registration statement covering the resale of such Security is suspended or the Company determines that
a supplement or amendment thereto is required by applicable securities laws, then upon reasonable advance notice to the Shareholder holding such Security, the Company may require that the Legend be placed on any such Security that cannot then be
sold pursuant to an effective registration statement or Rule 144 or with respect to which the opinion referred to in clause (b) next above has not been rendered, which Legend shall be removed when such Security may be sold pursuant to an
effective registration statement or Rule 144 or such holder provides the opinion with respect thereto described in Section 4.03(b). 
 4.04 Transfer Agent Instructions. The Company agrees that at such time as such Legend is no longer required under Section 4.03, it will, no later than ten (10) days following the delivery
by a Shareholder to the Company or the Company’s transfer agent of a certificate representing Securities issued with a Legend (such date, the “Legend Removal Date”), deliver or cause to be delivered to such Shareholder a certificate
representing such Securities that is free from such Legend, registered in the name of each Shareholder or its nominee. The Company covenants that no instruction other than such instructions referred to in this ARTICLE IV, 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. Nothing in this Section shall affect in any way each Shareholder’s obligations and agreement set forth herein
to resell the Securities in compliance with an exemption from the registration requirements of applicable securities laws. If (a) a Shareholder provides the Company with an opinion of counsel, which opinion of counsel shall be in form,
substance and scope customary for opinions of counsel in comparable transactions and reasonably satisfactory to the Company and its counsel (the reasonable cost of which shall be borne by the Company if, after six months, neither an effective
registration statement under the Securities Act or Rule 144 is available in connection with such sale), to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from registration or (b) a
Shareholder transfers Securities to an affiliate which is an accredited investor (within the meaning of Regulation D under the Securities Act) and which delivers to the Company in written form the same representations, warranties and covenants made
by the Shareholders hereunder or pursuant to Rule 144, the Company shall permit the transfer and promptly instruct its transfer agent to issue one or more certificates in such name and in such denomination as specified by such Shareholder. The
Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to a Shareholder 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 ARTICLE IV will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this ARTICLE IV, that a Shareholder shall be entitled, in addition to all
other available remedies to an injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required. 
 ARTICLE V 
 CONDITIONS TO EACH SHAREHOLDERS OBLIGATION TO EXCHANGE 
 5.01 The obligation of each Shareholder hereunder to
exchange his or its Series A Shares is subject to the satisfaction of each of the following conditions, provided that these conditions are for each Shareholder’s sole benefit and may be waived by such Shareholder at any time in such
Shareholder’s sole discretion: 
 (a) The Company shall have consummated a Qualified Public Offering; 
 (b) The Company shall have executed and delivered this Agreement and the other Transaction Documents to which it is a party; 
  

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 (c) The Company shall deliver the applicable Exchange Securities to such Shareholder against
delivery by such Shareholder of his or its Series A Shares duly endorsed in blank for transfer to the Company, free and clear of any and all security interests or transfer, voting or other restrictions or encumbrances of any kind; 
 (d) No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by
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; and

 (e) There shall be no injunction, restraining order or decree of any nature of any court or governmental authority of
competent jurisdiction that is in effect that restrains or prohibits the consummation of the transactions contemplated hereby and by the other Transaction Documents. 
 ARTICLE VI 
 CONDITIONS TO THE COMPANY’S OBLIGATION TO EXCHANGE 

 6.01 The obligation of the Company hereunder to deliver Exchange Securities, as applicable, for Series A Shares is subject to
the satisfaction, with respect to each Shareholder, of each of the following conditions, 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 Company shall have consummated a Qualified Public Offering; 
 (b) Such Shareholder shall have executed and delivered this Agreement and the other Transaction Documents to which it is a party;

 (c) Such Shareholder shall have delivered his or its Series A Shares to the Company duly endorsed in blank for transfer to
the Company, free and clear of any and all security interests or transfer, voting or other restrictions or encumbrances of any kind; 
 (d) No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction or any self-regulatory organization
having authority over the matters contemplated hereby which restricts or prohibits the consummation of any of the transactions contemplated by this Agreement; and 
 (e) There shall be no injunction, restraining order or decree of any nature of any court or governmental authority of competent jurisdiction that is in effect that restrains or prohibits the consummation
of the transactions contemplated hereby and by the other Transaction Documents. 
 ARTICLE VII 
 MISCELLANEOUS PROVISIONS 
 7.01 Survival of Representations; Entire Agreement. All representations and warranties made by the Parties pursuant to this Agreement shall survive the execution and delivery of this Agreement.
This Agreement and the other Transaction Documents constitute the entire understanding between the Parties with respect to the subject matter contained herein and therein and supersede any 
  

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 prior or contemporaneous understandings and agreements among them respecting such subject matter. Except as
specifically set forth herein or therein, neither the Company nor any Shareholder makes any representation, warranty, covenant or undertaking with respect to such matters. 
 7.02 Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the Delaware General
Corporation Law (in respect of matters of corporation law) and the laws of the State of Delaware (in respect of all other matters) applicable to contracts made and to be performed in the State of Delaware. The parties hereto irrevocably consent to
the jurisdiction of the United States federal courts and state courts located in the State of Delaware in any suit or proceeding based on or arising under this Agreement or the transactions contemplated hereby and irrevocably agree that all claims
in respect of such suit or proceeding may be determined in such courts. The Company and each Shareholder irrevocably waives the defense of an inconvenient forum to the maintenance of such suit or proceeding in such forum. The Company and each
Shareholder further agrees that service of process upon the Company or such Shareholder, as applicable, mailed by first class mail in accordance with Section 7.08 shall be deemed in every respect effective service of process upon the Company or
such Shareholder in any suit or proceeding arising hereunder. Nothing herein shall affect the right of a party hereto to serve process in any other manner permitted by law. The Parties hereto agree that a final non-appealable judgment in any such
suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other lawful manner. The Parties hereto irrevocably waive any right to a trial by jury under applicable law 
 7.03 Amendments; Counterparts. Except as set forth in Section 7.04 below, this Agreement may be amended only by a written
instrument duly executed by each of the Parties hereto. This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all of which counterparts taken together shall
constitute but one and the same instrument. It shall not be necessary in making proof of this Agreement or any counterparts hereof to produce or account for any of the other counterparts. In order to facilitate execution of this Agreement, this
Agreement may be duly executed and delivered by facsimile or other electronic transmission. 
 7.04 Further Assurances.
The Parties agree (a) to furnish upon request to each other such further information, (b) to execute and deliver to each other such other documents, and (c) to do such other acts and things, all as any other Party may reasonably
request for the purpose of carrying out the intent of this Agreement and the transactions contemplated by this Agreement. Each Party to this Agreement shall use its best efforts to cause the Company to comply with all NASDAQ rules applicable to the
transactions contemplated by this Agreement so as to enable, to the fullest extent possible, consummation of the transactions contemplated by this Agreement without the requirement of obtaining stockholder approval thereof. In furtherance of the
foregoing, each Party hereby agrees to the amendment of the terms of this Agreement, or the other Transaction Documents, or any of them, if such amendment is required to comply with applicable NASDAQ rules in order to consummate the transactions
contemplated by this Agreement without the requirement of obtaining stockholder approval thereof. Such amendment shall not require the written consent or acknowledgement of each Shareholder, but each Shareholder shall be advised of such amendment in
writing. 
 7.05 Arm’s Length Negotiations; Counsel for the Company. Each Shareholder expressly represents and
warrants to the Company that (a) before executing this Agreement, said Shareholder has fully informed himself or itself of the terms, contents, conditions and effects of this Agreement; (b) said Shareholder has relied solely and completely
upon his or its own judgment in executing this Agreement; (c) said Shareholder has had the opportunity to seek the advice of his or its own counsel and advisors before executing this Agreement; (d) said Shareholder has acted voluntarily
and of his or its own free 
  

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 will in executing this Agreement; (e) said Shareholder is not acting under duress, whether economic or
physical, in executing this Agreement; (f) this Agreement is the result of arm’s length negotiations conducted by and among the parties; and (g) said Shareholder acknowledges that the law firm of Lowndes, Drosdick, Doster,
Kantor & Reed, P.A. has been retained by the Company to prepare this Agreement as legal counsel for the Company, that Lowndes, Drosdick, Doster, Kantor & Reed, P.A. does not represent any Shareholder in connection with the
preparation or execution of this Agreement, and that Lowndes, Drosdick, Doster, Kantor & Reed, P.A. has not given any legal, investment or tax advice to any Shareholder regarding this Agreement. Lowndes, Drosdick, Doster, Kantor &
Reed, P.A. is expressly intended as a beneficiary of the representations and warranties of the Shareholders contained in this Section 7.05. 
 7.06 Confidential Material Non-Public Information. The United States securities laws prohibit any person who has received from an issuer material, non-public information, including the information
that is the subject matter of this Agreement and the other Transaction Documents, from purchasing or selling securities of the issuer or from communicating such information to any other person under circumstances in which it is reasonably
foreseeable that such person is likely to purchase or sell securities. In addition, and without limiting the foregoing, each Shareholder will be subject to the applicable provisions of the Exchange Act, and the rules and regulations thereunder,
including, without limitation, the short-swing profit provisions and restrictions on trading while in possession of material non-public information, which provisions may limit the timing of sales of any of the Company’s securities by
Shareholders. The undersigned Shareholder agrees to keep and hold all such material, non-public information in strict confidence and trust and not to use or disclose any such material, non-public information. 
 7.07 Certain Defined Terms. For purposes of this Agreement, the following terms shall have the following meanings: 
 (a) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York
are authorized or required by law to remain closed. 
 (b) “Common Stock” means the Common Stock, $0.001 par
value, of the Company. 
 (c) “Market Value” means the consolidated closing bid price of the Company’s
Common Stock as determined by applicable NASDAQ rules. 
 (d) “Qualified Public Offering” means the sale of
Common Stock in an underwritten, firm commitment public offering by the Company pursuant to an effective registration statement under the Securities Act in which the aggregate gross proceeds to the Company are not less than $5,000,000. 

(e) “Stated Value” means $5,000 per each Series A Share. 
 (f) “Warrant Coverage” means the number of shares of Common Stock issuable upon exercise of a Warrant. Warrant Coverage is
expressed as a percentage equal to the number of shares of Common Stock issuable upon exercise of the Warrant divided by the number of shares issuable upon conversion of the original principal amount of the Note based on the original Conversion
Price of the Note. Calculation of the number of shares based on the Warrant Coverage percentage is determined as follows: 
 [number of shares
issuable upon exercise of Warrant] = [principal amount of Note] x [Warrant Coverage percentage] / [Conversion Price] 
  

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 7.08 Notices. Any notice herein required or permitted to be given shall be in writing
and may be personally served or delivered by nationally-recognized overnight courier or by facsimile machine confirmed telecopy, and shall be deemed given and effective on the earliest of (a) the date of transmission if such notice or
communication is delivered by fax prior to 5:30 p.m. (Eastern Time) on a Business Day, (b) the next Business Day after the date of transmission if such notice or communication is delivered via fax on a day that is not a Business Day or later
than 5:30 p.m. (Eastern Time) on a Business Day, (c) the 2nd business day after the date of mailing if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to
be given. The addresses for such communications shall be: 
  

			
	 If to the Company:
	  	 Nexxus Lighting, Inc.
 124
Floyd Smith Office Park Drive
 Suite 300
 Charlotte, North Carolina 28262
 Attention: Gary Langford, Chief Financial Officer
 Facsimile: 704-405-0422

		
	 with a copy to:
	  	 Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
 215 North Eola Drive
 Orlando, FL 32801
 Attention: Suzan Abramson, Esq.
 Facsimile:
407-843-4444

 If to any Shareholder, to such address set forth under such Shareholder’s name
on the Signature Page executed by such Shareholder. Each party shall provide notice to the other parties of any change in address in the manner set forth in this Section 7.08. 
 7.09 Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement. 
 7.10 Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability of this Agreement in any other jurisdiction. 
 (Signature Page Follows) 
  

 Page 12 of 14 

 IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date
first above written. 
  

			
	NEXXUS LIGHTING, INC.,
 a Delaware
Corporation

		
	By:	 	 /s/ Michael A. Bauer

		 	Michael A. Bauer, President and Chief Executive Officer
	
	SHAREHOLDER:  

	  
 Name of Shareholder

		
	By:	 	  

		
	Its:	 	  

	
	 Address of Shareholder:

	
	 
	
	 
	
	 
	
	  
  
  
 (SIGNATURE PAGE)

  

 Page 13 of 14 

 SCHEDULE 1  
 TO PREFERRED STOCK EXCHANGE AGREEMENT 
  

							
	 Shareholder Name
	  	Series A Shares	  	Designated
Option	  	Exchange
Securities
				
	 Michael Brown
	  	150.00	  		  	
				
	 Todd A. Tumbleson IRA
	  	125.96	  		  	
				
	 Tebo Capital LLC SEP IRA
	  	6.16	  		  	
				
	 Tebo Capital LLC
	  	71.85	  		  	
				
	 Joseph C. Higday Revocable Trust
	  	100.00	  		  	
				
	 J. Shawn Chalmers Revocable Trust
	  	205.29	  		  	
				
	 Orion Investment Partners I, LLC
	  	203.97	  		  	
				
	 David G. & Lisa Suzanne Oscheln Trust UTA 8/22/01
	  	50.00	  		  	
				
	 Cascoh, Inc.
	  	205.29	  		  	
				
	 XXL Investments, LLC
	  	30.00	  		  	
				
	 Bicknell Family Holding Company, LLC
	  	270.00	  		  	
				
	 Martin C. Bicknell
	  	30.00	  		  	
				
	 Mike Buckman
	  	5.00	  		  	
				
	 Cynthia M. Mason and Robert L. Love, joint tenants
	  	10.00	  		  	
				
	 Daniel R. Henry
	  	29.92	  		  	
				
	 Ron Loew
	  	20.00	  		  	
				
	 William B. Baum & Karen K. Baum JTWROS
	  	1.4875	  		  	
				
	 Todd A. Tumbleson
	  	48.00	  		  	
				
	 Great American Investors, Inc.
	  	8.2225	  		  	

  

 Page 14 of 14

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