Document:

Exhibit 10.2

 

OFFICE SUITE
LEASE AGREEMENT

 

THIS
OFFICE SUITE LEASE AGREEMENT (the " Lease"), dated April 16, 2015 by and between 865 Tahoe Boulevard Associates, LLC,
a Nevada limited liability company ("Landlord"), and High Desert Holding Corp., Inc. (Tenant").

 

1.
LEASE OF PREMISES. In consideration of the Rent, as defined in Section 5.1 below , and the other terms and provisions of this
Lease, Landlord leases to Tenant and Tenant leases from Landlord the Premises described in Section 2(k) below. The Premises are
located within the Building and Project described in Section 2(m) below. Tenant shall have the non-exclusive right (unless otherwise
provided herein and subject to the terms and conditions more fully contained herein) in common with Landlord, other tenants, subtenants
and invitees, to the use of the Common Areas defined in Section 2(e) below.

 

2.
DEFINITIONS. As used in this Lease, the following terms shall have the following meanings:

 

(a)
Base Rent (One Year Term): $1,018.75 per month

 

(b)
Base Year: 2015 Calendar Year

 

(c)
Broker(s): None

 

(d)
Commencement Date: April 20, 2015 12:00am (Pacific) 

 

(e)
Common Areas: The building lobbies , common corridors and hallways, restrooms, garage and parking areas, stairways, elevators
and other generally understood public or common areas. Landlord shall have and hereby reserves the right to regulate or restrict
the use of the Common Areas.

 

(f)
Expiration Date: April 19, 2016 11:59 pm (Pacific), unless otherwise sooner terminated in accordance with the provisions of
this Lease.

 

(g)
Landlord's Mailing Address: 865 Tahoe Boulevard Associates, LLC, c/o Orton Development Inc., 3049 Research Drive, Richmond,
California 94806.

 

(h)
Tenant's Mailing Address: Premises, and 1092 Flume Rd. , Incline Village, NV 89451

 

(i)
[Intentionally Deleted].

 

(j)
Parking: Tenant shall abide by any and all parking regulations and rules established from time to time by Landlord.

 

(k)
Premises: That portion of the Building containing approximately ix hundred seventy four (674) square feet of Rentable Area,
as depicted on Exhibit "A" attached hereto and incorporated herein by reference, located on the third (3rd)) floor of
the Building and commonly known or referred to as Suite 302.

 

(l)
Rent: As defined in Section 5.4 below.

 

 

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(m)
Project: The building of which the Premises are a part (the "Building") and any other
buildings or improvements on the real property (the "Property") located at 865 Tahoe Boulevard, Incline
Village, Nevada, and further described on Exhibit "B" attached hereto
and incorporated herein by reference. The Project is known as Centerpoint.

 

(n)
Rentable Area: As to both the Premises and the Project, the respective measurements of net rentable floor area
includes Tenant's proportionate share of common areas, internal useable open air courtyards, lobby, circulation areas and parking
lots that are allocated to each tenant as may from time to time be subject to lease to Tenant and all tenants of the Project,
as determined by Landlord and applied on a consistent basis throughout the Project.

 

(o)
Security Deposit: $1,018.75

 

(p)
State: The State of Nevada

 

(q)
Tenant's Proportionate Share: [15%]. Such share
is a fraction, the numerator of which is the Rentable Area of the Premises, and
the denominator of which is
the Rentable Area of the Project, as determined by Landlord from time to time. The
Project consists of one building containing a total Rentable Area of 30,000 square feet.

 

(r)
Tenant's Use (Article 8): Administrative office.

 

(s)
Term: One (1) year, commencing on the Commencement Date and expiring at midnight on the Expiration Date with two (2) one year
renewal options at market rent as determined at time of renewal.

 

3. EXHIBITS
AND ADDENDA. The exhibits and addenda
listed below are incorporated by reference in this Lease:

 

(a)
Exhibit "A": Floor Plan showing the Premises.

(b)
Exhibit "B": Site Plan of the
Project.

(c)
Exhibit "C": Rules and Regulations.

(d)
(Exhibit "D": Guaranty of the Lease.

(e)
Exhibit "E": Acknowledgement of Commencement

 

4. 
DELIVERY OF POSSESSION. If for any reason Landlord does not deliver possession of the
Premises to Tenant on the Commencement Date, Landlord
shall not be subject to any liability for such failure, the Expiration Date shall not change and the validity of this Lease shall
not be impaired, but Rent shall be abated until delivery of possession. "Delivery
of possession" shall be deemed to occur on the date Landlord makes the Premises substantially available to Tenant for occupancy.
If Landlord permits Tenant to enter into possession of
the Premises before the Commencement Date, such possession shall be subject to the provisions of this Lease,
including, without limitation, the payment of Rent.

 

 

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5.
RENT.

 

5.1
Payment of Base Rent. Tenant agrees to pay the Base Rent for the Premises. Base Rent
shall be payable monthly in advance on the first day of each calendar month of the Term. If the Term begins (or ends) on
other than the first (or last) day of a calendar month, the Base Rent for the partial month shall be prorated on a per diem
basis. Tenant shall pay Landlord the first monthly installment of Base Rent when Tenant executes this Lease.

 

5.2
[Intentionally Deleted.]

 

5.3
Project Operating Costs. (Does Not Apply)

 

(a)
In order that the Rent payable during the Term reflects any increase in Project Operating Costs, Tenant agrees to pay to Landlord
as additional Rent, Tenant's Proportionate Share of all increases in costs, expenses and obligations attributable to the Project
and its operation, all as provided below.

 

(b)
If, during any calendar year of the Term, Project Operating Costs exceed the Project Operating Costs for the Base Year, Tenant
shall pay to Landlord, in addition to the Base Rent and all other payments due under this Lease, an amount equal to Tenant's Proportionate
Share of such excess Project Operating Costs in accordance with the provisions of this Section 5.3(b).

 

(1)
The term "Project Operating Costs" shall include all those items described in the following subparagraphs (a) and (b).

 

(a)
All taxes, assessments, water and sewer charges and other similar governmental charges levied on or attributable to the Building
or Project or their operation, including without limitation, (i) real property taxes or assessments levied or assessed against
the Building or Project, (ii) assessments or charges levied or assessed against the Building or Project by any redevelopment agency,
(iii) any tax measured by gross rentals received from the leasing of the Premises, Building or Project, excluding any net income,
franchise, capital stock, estate or inheritance taxes imposed by the State or federal government or their agencies, branches or
departments; provided that if at any time during the Term any governmental entity levies, assesses or imposes on Landlord any
(1) general or special, ad valorem or specific, excise, capital levy or other tax, assessment, levy or charge directly on the
Rent received under this Lease or on the rent received under any other leases of space in the Building or Project, or (2) any
license fee, excise or franchise tax, assessment, levy or charge measured by or based, in whole or in part, upon such rent, or
(3) any transfer, transaction, or similar tax, assessment, levy or charge based directly or indirectly upon the transaction represented
by this Lease or such other leases, or (4) any occupancy, use, per capita or other tax, assessment, levy or charge based directly
or indirectly upon the use or occupancy of the Premises or other premises within the Building or Project, then any such taxes,
assessments, levies and charges shall be deemed to be included in the term Project Operating Costs. If at any time during the
Term the assessed valuation of, or taxes on, the Project are not based on a completed Project having at least ninety percent (90%)
of the Rentable Area occupied, then the "taxes" component of Project Operating Costs shall be adjusted by Landlord to
reasonably approximate the taxes which would have been payable it the Project were completed and at least ninety percent (90%)
occupied.

 

 

 

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(b)
Operating costs incurred by Landlord in maintaining and operating the Building and Project, including without limitation the following:
costs of (1) utilities (except as provided below); (2) supplies; (3) insurance (including public liability, property damage, earthquake,
and fire and extended coverage insurance for the full replacement cost of the Building and Project as required by Landlord or
its lenders for the Project); (4) services of independent contractors; (5) compensation (including employment taxes and fringe
benefits) of all persons who perform duties connected with the operation, maintenance, repair or overhaul of the Building or Project,
and equipment, improvements and facilities located within the Project, including without limitation engineers, janitors, painters,
floor waxers, window washers, security and parking personnel and gardeners (but excluding persons performing services not uniformly
available to or performed for substantially all Building or Project tenants); (6) operation and maintenance of a room for delivery
and distribution of mail to tenants of the Building or Project as required by the U.S. Postal Service (including, without limitation,
an amount equal to the fair market rental value of the mail room premises); (7) management of the Building or Project, whether
managed by Landlord or an independent contractor (including, without limitation, an amount equal to the fair market value of any
on-site manager's office); (8) rental expenses for (or a reasonable depreciation allowance on) personal property used in the maintenance,
operation or repair of the Building or Project; (9) costs, expenditures or charges (whether capitalized or not) required by any
governmental or quasi-governmental authority; (10) amortization of capital expenses (including financing costs) required, in the
Landlord's reasonable judgment, for the proper operation of the Building and Project, including without limitation those (i) required
by a governmental entity for energy conservation or life safety purposes, or (ii) made by Landlord to reduce Project Operating
Costs; and (iii) any other costs or expenses incurred by Landlord under this Lease and not otherwise reimbursed by tenants of
the Project. Notwithstanding the foregoing Section 5.3(b)(l)(b)(1), the cost for any utility services, including, without limitation,
electric, gas, water or sewer, that is separately metered to the Premises shall not be included in Project Operating Costs and
shall be paid solely by Tenant. If at any time during the Term, less than ninety percent (90%) of the Rentable Area of the Project
is occupied, the "operating costs" component of Project Operating Costs shall be adjusted by Landlord to reasonably
approximate the operating costs, which would have been incurred if the Project had been at least ninety percent (90%) occupied.

 

(2)
Tenant's Proportionate Share of Project Operating Costs shall be payable by Tenant to Landlord as follows:

 

(a)
Beginning with the calendar year following the Base Year and for each calendar year thereafter ("Comparison Year"),
Tenant shall pay Landlord an amount equal to Tenant's Proportionate Share of the Project Operating Costs incurred by Landlord
in the Comparison Year which exceeds the total amount of Project Operating Costs payable by Landlord for the Base Year. This excess
is referred to as the "Excess Expenses."

 

(b)
To provide for current payments of Excess Expenses, Tenant shall, at Landlord's request, pay as additional rent during each Comparison
Year, an amount equal to Tenant's Proportionate Share of the Excess Expenses payable during such Comparison Year, as estimated
by Landlord from time to time. Such payments shall be made in monthly installments, commencing on the first day of the month following
the month in which Landlord notifies Tenant of the amount it is to pay hereunder and continuing until the first day of the month
following the month in which Landlord gives Tenant a new notice of estimated Excess Expenses. It is the intention hereunder to
estimate from time to time the amount of the Excess Expenses for each Comparison Year and Tenant's Proportionate Share thereof,
and then to make an adjustment in the following year based on the actual Excess Expenses incurred for that Comparison Year.

 

 

 

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(c)
On or before April 1 of each Comparison Year after the first Comparison Year (or as soon thereafter as is practical),
Landlord shall deliver to Tenant a statement setting forth Tenant's Proportionate Share of the Excess Expenses for the
preceding Comparison Year. If Tenant's Proportionate Share of the actual Excess Expenses for the previous Comparison Year
exceeds the total of the estimated monthly payments made by Tenant for such year, Tenant shall pay Landlord the amount of the
deficiency within ten (l0) days of the receipt of the statement. Tenant shall remit such payment regardless of whether Tenant
elects to exercise the inspection right granted pursuant to Subparagraph (e) be low . If such total exceeds Tenant's
Proportionate Share of the actual Excess Expenses for such Comparison Year, then Landlord shall credit against Tenant's next
ensuing monthly installments(s) of Excess Expenses an amount equal to the difference until the credit is exhausted. If a
credit is due from Landlord on the Expiration Date, Landlord shall pay Tenant the amount of the credit. The obligations of
Tenant and Landlord to make payments required under this Section 5.3 shall survive the Expiration Date. Notwithstanding the
foregoing, Landlord reserves the right to reconcile Excess Expenses as provided in this Paragraph 5.3 (b)(2)(c) on quarterly
bases.

 

(d)
Tenant's Proportionate Share of Excess Expenses in any Comparison Year having less than 365 days shall be appropriately prorated.

 

(e)
If any dispute arises as to the amount of any Excess Expenses due hereunder, Tenant shall have the right after reasonable notice
and at reasonable times to inspect Landlord's accounting records at Landlord's accounting office during normal business hours.
Tenant's inspection right shall be limited to Tenant's on-site review, for a period not to exceed five (5) business days, of Landlord's
records pertaining to the Excess Expenses in question. Tenant shall not be permitted to remove or photocopy any of Landlord's
records. Any such inspection shall be conducted at Tenant's sole cost. Tenant's inspection rights under this Section 5.3(2)(e)
shall be limited to one (1) inspection per annum with respect to the Excess Expenses billed to Tenant during the immediately preceding
calendar year. If Tenant fails to perform such audit by December 31 with respect to the particular reconciliation statement provided
by Landlord pursuant to Subparagraph (c) above, Tenant will be deemed to have waived its right to inspect Landlord' s books and
records with respect to the Excess Expenses described in such report. In no event will Tenant have the right to engage any auditor
or other consultant to inspect Landlord's records of Common Expenses on a contingency fee basis. If after such inspection Tenant
still disputes the amount of additional rent owed, a certification as to the proper amount shall be made by Landlord's certified
public accountant, which certification shall be final and conclusive. Tenant agrees to pay the cost of such certification unless
it is determined that Landlord's original statement overstated Project Operating Costs by more than five percent (5%). If it is
determined based upon such certification that Tenant overpaid its Proportionate Share of Excess Expenses for the year in question,
then Landlord, as Tenant ' s sole and exclusive remedy, shall credit against Tenant's next ensuing monthly installments(s) of
Excess Expenses an amount equal to the overpayment until the credit is exhausted. If a credit is due from Landlord on the Expiration
Date, Landlord, as Tenant's sole and exclusive remedy, shall pay Tenant the amount of the credit. Tenant will keep any information
gained from its inspection of Landlord ' s books confidential and will not disclose same to any other party, except as required
by law, and will cause its auditors to execute appropriate confidentiality agreements whereby they agree to keep any information
gained from the inspection of Landlord' s books confidential.

 

(f)
Notwithstanding any other provision of this Section 5.3, in the calculation of Project Operating Costs for the Base Year, Project
Operating Costs shall not include (i) any increase in taxes attributable to special assessments, charges , costs or fees, or modifications
or changes in government laws or regulations, (ii) any market-wide labor rate increases arising from extraordinary circumstances
(such as but not limited to boycotts and strikes), or (iii) any utility rate increases arising from extraordinary circumstances
(such as but not limited to conservation surcharges, boycotts, embargoes or other shortages).

 

 

 

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5.4
Definition of Rent. All costs and expenses that Tenant assumes or agrees to pay to Landlord under this Lease shall be deemed
additional rent (which, together with the Base Rent is sometimes referred to as the "Rent"). The Rent shall be paid
to the Building manager (or other person designated by Landlord) at such place as Landlord may from time to time designate in
writing, without any prior demand therefor and without deduction or offset, in lawful money of the United States of America.

 

5.5
Rent Control. If the amount of Rent or any other payment due under this Lease violates the terms of any governmental restrictions
on such Rent or payment, then the Rent or payment due during the period of such restrictions shall be the maximum amount allowable
under those restrictions. Upon termination of the restrictions, Landlord shall, to the extent it is legally permitted, recover
from Tenant the difference between the amounts received during the period of the restrictions and the amounts Landlord would have
received had there been no restrictions.

 

5.6
Taxes Payable by Tenant. In addition to the Rent and any other charges to be paid by Tenant hereunder, Tenant shall reimburse
Landlord upon demand for any and all taxes payable by Landlord (other than net income taxes) which are not otherwise reimbursable
under this Lease, whether or not now customary or within the contemplation of the parties, where such taxes are upon, measured
by or reasonably attributable to (a) the cost or value of Tenant's equipment, furniture, fixtures and other personal property
located in the Premises, or the cost or value of any leasehold improvements made in or to the Premises by or for Tenant, regardless
of whether title to such improvements is held by Tenant or Landlord; the gross or net Rent payable under this Lease, including,
without limitation, any rental or gross receipts tax levied by any taxing authority with respect to the receipt of the Rent hereunder;
(c) the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises
or any portion thereof, or (d) this transaction or any document to which Tenant is a party creating or transferring an interest
or an estate in the Premises. If it becomes unlawful for Tenant to reimburse Landlord for any costs as required under this Lease,
the Base Rent shall be revised to net Landlord the same net Rent after imposition of any tax or other charge upon Landlord as
would have been payable to Landlord but for the reimbursement being unlawful.

 

6.
LATE CHARGES. Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent and other sums due hereunder will
cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain.
Such costs include, but are not limited to, processing and accounting charges and late charges, which may be imposed upon Landlord
by the terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of Rent or any other sum due
from Tenant shall not be received by Landlord or Landlord's designee within five (5) days after such amount shall be due, Tenant
shall pay to Landlord a late charge equal to ten percent (10%) of such overdue amount. The parties hereby agree that such late
charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. Acceptance
of such late charge by Landlord shall in no event constitute a waiver of Tenant's default with respect to such an overdue amount,
nor prevent Landlord from exercising any of the other rights and remedies granted hereunder.

 

In
the event that a late charge is payable hereunder, whether or not collected, for three (3) installments of Rent in any twelve
(12) month period, then rent shall automatically become payable thereafter by (a) cashier's check, (b) cash, or (c) certified
money order. In addition, Landlord reserves the right to increase the percentage or amount (as applicable) assessed as a late
charge on any future overdue amounts.

 

 

 

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7.
SECURITY DEPOSIT. Tenant agrees to deposit with Landlord the Security Deposit set forth at Section 2(o) upon execution
of this Lease, as security for Tenant's faithful performance of its obligations under this Lease. Landlord and Tenant agree
that the Security Deposit may be commingled with funds of Landlord and Landlord shall have no obligation or liability for
payment of interest on such deposit. Tenant shall not mortgage, assign, transfer or encumber the Security Deposit without the
prior written consent of Landlord and any attempt by Tenant to do so shall be void, without force or effect and shall not be
binding upon Landlord. If Tenant fails to pay any Rent or other amount when due and payable under this Lease, or fails to
perform any of the terms hereof, Landlord may appropriate and apply or use all or any portion of the Security Deposit for
Rent payments or any other amount then due and unpaid, for payment of any amount for which Landlord has become obligated as a
result of Tenant's default or breach, and for any loss or damage sustained by Landlord as a result of Tenant's default or
breach, and Landlord may so apply or use this deposit without prejudice to any other remedy Landlord may have by reason of
Tenant's default or breach. If Landlord so uses any of the Security Deposit, Tenant shall, within ten (10) days after written
demand therefore, restore the Security Deposit to the full amount originally deposited. Tenant's failure to do so shall
constitute an act of default hereunder and Landlord shall have the right to exercise any remedy provided for at Article 27
hereof. Within thirty (30) days after the Term (or any extension thereof) has expired or Tenant has vacated the Premises,
whichever shall Last occur, and provided Tenant is not then in default on any of its obligations hereunder, Landlord shall
return the Security Deposit to Tenant, or, if Tenant has assigned its interest under this Lease or sublet the entire
Premises, to the last assignee or subtenant of Tenant. If Landlord sells its interest in the Premises, Landlord shall, within
a reasonable time, deliver the Security Deposit, less any lawful deductions made under this Paragraph, to the purchaser of
Landlord's interest and thereafter notify the Tenant by personal delivery or certified mail of the transfer, of any claims
made against the Security Deposit, and of the transferee' s name and address. Upon receipt of any portion of the security
deposit, the transferee shall have all of the rights and obligations of Landlord with respect to such security deposit, and
the Landlord named herein shall thereafter be relieved of any further liability or obligation with respect to the
Security Deposit. Tenant waives to the fullest extent permitted by law any provision of law now in force or that becomes in
force after the date of execution of this Lease, which provide that Landlord may claim from a security deposit only those
sums reasonably necessary to remedy default in the payment of Rent, to repair damage caused by Tenant, or to clean the
Premises. Landlord and Tenant agree that Landlord may, in addition, claim those sums reasonably necessary to compensate
Landlord for any other foreseeable or unforeseeable loss or damage caused by the act or omission of Tenant or any agent or
invitee of Tenant, including but not limited to future Rent to the extent recoverable from Tenant under applicable laws.

 

8.
TENANT'S USE OF THE PREMISES.

 

 

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8.1
Tenant's Use. Tenant shall use the Premises solely for the purposes set forth in Tenant's Use Clause. Tenant shall not use
or occupy the Premises in violation of law or any covenant, condition or restriction affecting the Building or Project or the
certificate of occupancy issued for the Building or Project, and shall, upon notice from Landlord, immediately discontinue any
use of the Premises that is declared by any governmental authority having jurisdiction to be a violation of law or the certificate
of occupancy. Tenant, at Tenant's own cost and expense, shall comply with all laws, ordinances, regulations, rules and/or any
directions of any governmental agencies or authorities having jurisdiction which shall, by reason of the nature of Tenant's use
or occupancy of the Premises, impose any duty upon Tenant or Landlord with respect to the Premises or its use or occupation. A
judgment of any court of competent jurisdiction or the admission by Tenant in any action or proceeding against Tenant that Tenant
has violated any such laws, ordinances, regulations, rules and/or directions in the use of the Premises shall be deemed to be
a conclusive determination of that fact as between Landlord and Tenant. Tenant shall not do or permit to be done anything, which
will invalidate or increase the cost of any fire, extended coverage or other insurance policy covering the Building or Project
and/or property located therein, and shall comply with all rules, orders, regulations, requirements and recommendations of the
Insurance Services Office or any other organization performing a similar function. Tenant shall promptly upon demand reimburse
Landlord for any additional premium charged for such policy by reason of Tenant's failure to comply with the provisions of this
Article. Tenant shall not do or permit anything to be done in or about the Premises that will in any way obstruct or interfere
with the rights of other tenants or occupants of the Building or Project, or injure or annoy them, or use or allow the Premises
to be used for any improper, immoral, unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance
in, on or about the Premises. Tenant shall not commit or suffer to be committed any waste in or upon the Premises.

 

8.2
Hazardous Materials. Tenant shall not cause or permit any substance or material defined, classified or otherwise designated
by federal, State or local laws or regulations as hazardous or noxious (a "Hazardous Material"), to be brought upon,
kept or used in or about the Premises by Tenant, its agents, employees, contractors or invitees, except for such Hazardous Material
as is necessary or incidental to Tenant's business. Any Hazardous Material permitted on the Premises as provided above and all
containers therefor, shall be used, kept, stored and disposed of in a manner that complies with all federal, State and local laws
or regulations applicable to any such Hazardous Material. Tenant shall not discharge, leak or emit, or permit to be discharged,
leaked or emitted, any material into the atmosphere, ground, sewer system or any body of water, if such material (as reasonably
determined by the Landlord, or any governmental authority) does or may, pollute or contaminate the same, or may adversely affect
(a) the health, welfare or safety of persons, whether located on the Premises or elsewhere, or (b) the condition, use or enjoyment
of the Building or any other real or personal property. Tenant hereby agrees that it shall be fully liable for all costs and expenses
related to the use, storage and disposal of Hazardous Material kept, used or disposed of on the Premises by the Tenant, and the
Tenant shall give immediate notice to the Landlord of any violation or potential violation of the provisions of this Section 8.2.
Tenant shall defend, indemnify and hold harmless Landlord and its Agents, from and against any claims, demands, penalties, fines,
liabilities, settlements, damages, costs, or expenses (including, without limitation, attorney and consultant fees, court costs
and litigation expenses) of whatever kind or nature, known or unknown, contingent or otherwise, arising out of or in any way related
to (a) the presence, disposal, release, or threatened release of any such Hazardous Material which is on, from, or affecting the
soil, water, vegetation, buildings, personal property, persons, animals, or otherwise; (b) any personal injury (including wrongful
death) or property damage (real or personal) arising out of or related to such Hazardous Material; (c) any lawsuit brought or
threatened, settlement reached or government order relating to such Hazardous Material; and/or (d) any violation of any laws applicable
thereto. The provisions of this Section 8.2 shall be in addition to any other obligations and liabilities Tenant may have to Landlord
at law, in equity or otherwise and shall survive the transactions contemplated herein and shall survive the termination of this
Lease.

 

8.3
Observance of Law. Tenant shall not use the Premises or permit anything to be done in or about the Premises which will in
any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted
or promulgated. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental
rules, regulations or requirements now in force or which may hereafter be in force, and with the requirements of any board of
fire insurance underwriters or other similar bodies now or hereafter constituted, relating to, or affecting the condition, use
or occupancy of the Premises, excluding structural changes not related to or affected by Tenant's Improvements or acts. The judgment
of any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord is a party thereto
or not, that Tenant has violated any law, ordinance or governmental rule, regulation or requirement, shall be conclusive of that
fact as between Landlord and Tenant.

 

 

 

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9.
SERVICES AND UTILITIES. Provided that Tenant is not in default hereunder and except as otherwise provided herein,
Landlord agrees to furnish to the Premises during hours determined by Landlord in its sole discretion and subject to (i) the
Rules and Regulations of the Building or Project, (ii) applicable governmental rules, regulations and guidelines, and (iii)
the rules or actions of the public utility furnishing the same, electricity for normal desk top office equipment and normal
copying equipment, and heating, ventilation and air conditioning ("HVAC") as required in Landlord's sole discretion
for the comfortable use and occupancy of the Premises during reasonable business hours, Monday through Friday, excluding
Holidays. If Tenant desires HVAC at any other time, Landlord shall use reasonable efforts to furnish such service upon
reasonable notice from Tenant and Tenant shall pay Landlord's charges therefrom demand as additional rent hereunder. Landlord
shall also maintain and keep lighted the common areas, common entries and restrooms in the Building; provided, however, that
lighting for any or all of the foregoing areas may be operated under automatic sensor devices. Landlord shall not be in
default hereunder or be liable for any damages directly or indirectly resulting from, nor shall the Rent be abated by reason
of (i) the installation, use or interruption of use of any equipment in connection with the furnishing of any of the
foregoing services, (ii) failure to furnish or delay in furnishing any such services where such failure or delay is caused by
accident or any condition or event beyond the reasonable control of Landlord, or by the making of necessary repairs or
improvements to the Premises, Building or Project, or (iii) the limitation, curtailment or rationing of, or restrictions on,
use of water, electricity, gas or any other form of energy serving the Premises, Building or Project. Landlord shall not be
liable under any circumstances for a loss of or injury to Tenant's property or business, however occurring, through or in
connection with or incidental to failure to furnish any such services. If Tenant uses heat generating machines or equipment
in the Premises that affect the temperature otherwise maintained by the HVAC system, Landlord reserves the right to install
supplementary air conditioning units in the Premises and the cost thereof, including the cost of installation, operation and
maintenance thereof, shall be paid by Tenant to Landlord upon demand by Landlord as additional rent hereunder.

 

Tenant
shall not, without the written consent of Landlord, use any apparatus or device in the Premises, including without limitation,
electronic data processing machines, punch card machines or machines using in excess of 120 volts, which consumes more electricity
than is usually furnished or supplied for the use of Premises as general office space, as determined in Landlord's sole discretion.
Tenant shall not connect any apparatus with electric current except through existing electrical outlets in the Premises. Tenant
shall not consume water or electric current in excess of that usually furnished or supplied for the use of the Premises as general
office (as determined in Landlord' s sole discretion), without first procuring the written consent of Landlord, which Landlord
may refuse in Landlord's sole and absolute discretion. Landlord may have installed a water or electric meter in the Premises to
measure the amount of water or electricity consumed. The cost of any such meter and of its installation, maintenance and repair
shall be paid for by the Tenant and Tenant agrees to pay to Landlord promptly upon demand for all such water and electric current
consumed as shown by said meters, at the rates charged for such services by the local public utility plus any additional expense
incurred in keeping account of the water and electric current so consumed. If a separate meter is not installed, the excess cost
for such water and electric current shall be established by an estimate made by a utility company or electrical engineer hired
by Landlord at Tenant's expense.

 

Landlord
shall furnish elevator service, janitorial service, lighting replacement for building standard lights, restroom supplies, and
window washing in a manner that such services are customarily furnished to comparable office buildings in the area.

 

 

    	 	9	 

     

    

 

10.
CONDITION OF THE PREMISES. Tenant's taking possession of the Premises shall be deemed conclusive evidence that as of the date
of taking possession the Premises are in good order and satisfactory condition, except for such matters as to which Tenant gave
Landlord written notice on or before the Commencement Date. No promise of Landlord to alter, remodel, repair or improve the Premises,
the Building or the Project and no representation, express or implied, respecting any matter or thing relating to the Premises,
Building, Project or this Lease (including, without limitation, the condition of the Premises, the Building or the Project) have
been made to Tenant by Landlord or its Broker or Sales Agent, other than as may be contained herein or in a separate exhibit or
addendum signed by Landlord and Tenant.

 

11.
REPAIRS AND MAINTENANCE.

 

(a)
Landlord's Obligations. Landlord shall maintain in good order, condition and repair the Building and all other portions
of the Premises not the obligation of Tenant or of any other tenant in the Building.

 

(b)
Tenant's Obligations.

 

(1)
[Intentionally deleted].

 

(2)
Tenant at Tenant's sole expense shall, except for services furnished by Landlord pursuant to Article 9 hereof, maintain the Premises
in good order, condition and repair, including the interior surfaces of the ceilings, walls and floors, all doors, all interior
windows, all plumbing, pipes and fixtures serving solely and located within the Premises, all electrical wiring and switches serving
solely and located within the Premises, and any fixtures, furnishings or special items and equipment installed by or at the expense
of Tenant.

 

(3)
Tenant shall be responsible for all repairs and alterations in and to the Premises, Building and Project and the facilities and
systems thereof, the need for which arises out of (i) Tenant's use or occupancy of the Premises, (ii) the installation, removal,
use or operation of Tenant's Property (as defined in Article 13) in the Premises, (iii) the moving of Tenant's Property into or
out of the Building, (iv) the installation and/or construction of the Tenant Improvements described on the attached Exhibit C,
regardless of whether such improvements are installed by Landlord or Tenant, or (v) the act, omission, misuse or negligence of
Tenant, its agents, contractors, employees or invitees.

 

(4)
If Tenant fails to maintain the Premises in good order, condition and repair, Landlord shall give Tenant notice to do such acts
as are reasonably required to so maintain the Premises. If Tenant fails promptly to commence such work and diligently prosecute
it to completion, then Landlord shall have the right to do such acts and expend such funds at the expense of Tenant as are reasonably
required to perform such work. Any amount so expended by Landlord shall be paid by Tenant promptly after demand with interest
at the prime commercial rate then being charged by Bank of America NT & SA plus two percent (2%) per annum, from the date
of such work, but not to exceed the maximum rate then allowed by law. Landlord shall have no liability to Tenant for any damage,
inconvenience, or interference with the use of the Premises by Tenant as a result of performing any such work.

 

(c)
Compliance with Law. Landlord and Tenant shall each do all acts required to comply with all applicable laws, ordinances,
and rules of any public authority relating to their respective maintenance obligations as set forth herein.

 

(d) Load
and Equipment Limits. Tenant shall not place a load upon any floor of the Premises that exceeds the load per square foot
that such floor was designed to carry, as determined by Landlord in its sole discretion. Tenant shall not install
business machines or mechanical equipment that cause noise or vibration to such a degree as to be objectionable, in
Landlord's sole determination, to Landlord or other Building tenants.

 

 

 

    	 	10	 

     

    

 

(e)
Except as otherwise expressly provided in this Lease, Landlord shall have no liability to Tenant nor shall Tenant's obligations
under this Lease be reduced or abated in any manner whatsoever by reason of any inconvenience, annoyance, interruption or injury
to business arising from Landlord's making any repairs or changes that Landlord is required or permitted by this Lease or by any
other tenant's lease or required by law to make in or to any portion of the Project, Building or the Premises. Landlord shall
nevertheless use reasonable efforts to minimize any interference with Tenant's business in the Premises.

 

(f)
Tenant shall give Landlord prompt notice of any damage to or defective condition in any part or appurtenance of the Building's
mechanical, electrical, plumbing, IN AC or other systems serving, located in, or passing through the Premises.

 

(g)
Upon the expiration or earlier termination of this Lease, Tenant shall return the Premises to Landlord clean and in the same condition
as they existed on the date Tenant took possession, except for normal wear and tear, but not want of ordinary maintenance. Any
damage to the Premises, including without limitation any structural damage, resulting from Tenant's use or from the removal of
Tenant's fixtures, furnishings and equipment pursuant to Section 13(b) shall be repaired by Tenant at Tenant's expense.

 

12.
ALTERATIONS AND ADDITIONS.

 

(a)
Tenant shall not make any additions, alterations or improvements to the Premises without obtaining the prior written consent of
Landlord, which may be granted or withheld in Landlord's sole and absolute discretion. Without limiting the grounds on which the
Landlord may withhold its consent, Landlord's consent may be conditioned on Tenant's removing any such additions, alterations
or improvements upon the expiration of the Term and restoring the Premises to the same condition as on the date Tenant took possession.
All work with respect to any addition, alteration or improvement shall be done in a good and workmanlike manner by properly qualified
and licensed personnel approved by Landlord, and such work shall be diligently prosecuted to completion. Landlord may, at Landlord's
option, require that any such work be performed by Landlord's contractor, in which case the cost of such work shall be paid for
before commencement of the work. Tenant shall pay to Landlord upon completion of any such work by Landlord's contractor, an administrative
fee of fifteen percent (15%) of the cost of the work.

 

(b)
Tenant shall pay the costs of any work done on the Premises pursuant to Section 12(a), and shall keep the Premises, Building and
Project free and clear of liens of any kind. Tenant shall indemnify, defend against and keep Landlord free and harmless from all
liability, loss, damage, costs, attorneys' fees and any other expense incurred on account of claims by any person performing work
or furnishing materials or supplies for Tenant or any person claiming under Tenant.

 

Tenant
shall keep Tenant's leasehold interest, and any additions or improvements which are or become the property of Landlord under
this Lease, free and clear of all attachment or judgment liens. Before the actual commencement of any work for which a claim
or lien may be filed, Tenant shall give Landlord notice of the intended commencement date a sufficient time before that date
to enable Landlord to post notices of non-responsibility or any other notices that Landlord deems necessary for the proper
protection of Landlord's interest in the Premises, Building or the Project, and Landlord shall have the right to enter the
Premises and post such notices ay any reasonable time.

 

 

    	 	11	 

     

    

 

(c)
Landlord may require, at Landlord's sole option, that Tenant provide to Landlord, at Tenant's expense, a lien and completion bond
in an amount equal to at least one and one-half (1 1/2) times the total estimated cost of any additions, alterations or improvements
to be made in or to the Premises, to protect Landlord against any liability for mechanic's and material men's liens and to insure
timely completion of the work. Without limiting the foregoing, Landlord, at Tenant's expense, may take any action reasonable or
necessary to remove any such liens from the Project, including without limitation the payment of outstanding amounts due to contractors
or suppliers filing any such lien. Any amount so expended by Landlord shall be paid by Tenant promptly after demand with interest
at the prime commercial rate then being charged by Bank of America NT & SA plus two percent (2%) per annum, from the date
of such payment, but not to exceed the maximum rate then allowed by law. Nothing contained in this Section 12(c) shall relieve
Tenant of its obligation under Section 12(b) to keep the Premises, Building and Project free of all liens.

 

(d)
Unless their removal is required by Landlord as provided in Section 12(a), all additions, alterations and improvements made to
the Premises shall become the property of Landlord and shall be surrendered with the Premises upon the expiration of the Term;
provided, however, that any of Tenant's equipment, machinery and trade fixtures that can be removed without damage to the Premises
shall remain the property of Tenant and may be removed, subject to the provisions of Section 13(b).

 

13.
LEASEHOLD IMPROVEMENTS; TENANT'S PROPERTY.

 

(a)
All fixtures, equipment, improvements and appurtenances attached to or built into the Premises at the commencement of or during
the Term, whether or not by or at the expense of Tenant ("Leasehold Improvements"), shall be and remain a part of the
Premises, shall be the property of Landlord and shall not be removed by Tenant, except as expressly provided in Section 13(b).

 

(b)
All movable partitions, business and trade fixtures, machinery and equipment, including, without limitation, communications equipment
and office equipment located in the Premises and acquired by or for the account of Tenant, without expense to Landlord, that can
be removed without structural damage to the Building, and all furniture, furnishings and other articles of movable personal properly
owned by Tenant and located in the Premises (collectively "Tenant's Property") shall be and shall remain the property
of Tenant and may be removed by Tenant at any time during the Term; provided that if any of Tenant's Property is removed, Tenant
shall promptly repair any damage to the Premises or to the Building resulting from such removal.

 

14.
RULES AND REGULATIONS. Tenant agrees to comply with (and cause its agents, contractors, employees and invitees to comply with)
the rules and regulations attached hereto as Exhibit "C" as the same may be modified by Landlord from time to time.
Landlord shall not be responsible for any violation of said rules and regulations by other tenants or occupants of the Building
or Project.

 

15.
CERTAIN RIGHTS RESERVED BY LANDLORD. Landlord reserves the following rights, exercisable without liability to Tenant for (i)
damage or injury to property, person or business, (ii) actual or constructive eviction from the Premises, or (iii) disturbing
Tenant's use or possession of the Premises:

 

(a)
To name the Building and Project and to change the name or street address of the Building or Project;

 

 

 

    	 	12	 

     

    

 

(b) To install and maintain
all signs on the exterior and interior of the Building and

 

(c)
To have passkeys to the Premises and all doors within the Premises, excluding Tenant's vaults and safes;

 

(d)
At any time during the Term, and on reasonable prior notice to Tenant, to inspect the Premises, and to show the Premises to any
prospective purchaser or mortgagee of the Project, or to any assignee of any mortgage on the Project, or to others having an interest
in the Project or Landlord, and during the last nine (9) months of the Term, to show the Premises to prospective tenants thereof;

 

(e)
To enter the Premises for the purpose of making inspections, repairs, alterations, additions or improvements to the Premises or
the Building (including, without limitation, checking, calibrating, adjusting or balancing controls and other parts of the HYAC
system), and to take all steps as may be necessary or desirable for the safety, protection, maintenance or preservation of the
Premises or the Building or Landlord's interest therein, or as may be necessary or desirable for the operation or improvement
of the Building or in order to comply with laws, orders or requirements of governmental or other authority. Landlord agrees to
use its best efforts (except in an emergency) to minimize interference with Tenant's business in the Premises in the course of
any such entry.

 

16.
ASSIGNMENT AND SUBLETTING. No assignment of this Lease or sublease of all or any part of the Premises shall be permitted,
except as provided in this Article 16.

 

(a)
Tenant shall not, without the prior written consent of Landlord, assign or hypothecate this Lease or any interest herein or sublet
the Premises or any part thereof, or permit the use of the Premises by any party other than Tenant. Any of the foregoing acts
without such consent shall be void and shall, at the option of Landlord, terminate this Lease. This Lease shall not, nor shall
any interest of Tenant herein, be assignable by operation of law without the written consent of Landlord.

 

(b)
If at any time or from time to time during the Term Tenant desires to assign this Lease or sublet all or any part of the Premises,
Tenant shall give notice to Landlord setting forth the terms and provisions of the proposed assignment or sublease, and the identity
of the proposed assignee or subtenant. Tenant shall promptly supply Landlord with such information concerning the business background
and financial condition of such proposed assignee or subtenant as Landlord may reasonably request. Landlord shall have the option,
exercisable by notice given to Tenant within twenty (20) days after Tenant's notice is given, either to sublet such space from
Tenant at the rental and on the other terms set forth in this Lease for the term set forth in Tenant's notice, or, in the case
of an assignment, to terminate this Lease. If Landlord does not exercise such option,

 

(1)
Landlord shall have the right to approve such proposed assignee or subtenant, which approval shall not be unreasonably withheld;

 

(2)
The assignment or sublease shall be on the same terms set forth in the notice given to Landlord;

 

(3)
No assignment or sublease shall be valid and no assignee or sublessee shall take possession of the Premises until an executed
counterpart of such assignment or sublease has been delivered to Landlord;

 

 

 

    	 	13	 

     

    

 

(4)
No assignee or sublessee shall have a further right to assign or sublet except on the terms herein contained; and

 

(5)
Any sums or other economic consideration received by Tenant asa result of such assignment or subletting, however denominated under
the assignment or sublease, that exceed, in the aggregate, (i) the total sums which Tenant is obligated to pay Landlord under
this Lease (prorated to reflect obligations allocable to any portion of the Premises subleased), plus (ii) any real estate brokerage
commissions or fees payable in connection with such assignment or subletting, shall be paid to Landlord as additional rent under
this Lease without affecting or reducing any other obligations of Tenant hereunder,

 

(6)
The assignee or sublessee shall assume, in full, the obligations of Tenant under this Lease;

 

(7)
In the event of any assignment or subleasing with the Landlord's consent, Tenant shall in any event remain fully liable under
this Lease.

 

If
Tenant is a corporation, limited liability company or partnership, the sale or other transfer of forty-nine percent (49%) or more
of the shares or other equity interest of Tenant shall be deemed an assignment under this Article 16 and shall require the consent
of Landlord.

 

Tenant
understands and acknowledges that any options granted under this Lease, including without limitation renewal options, are personal
to the named Tenant and shall terminate and be of no further force or effect in the event of an assignment of this Lease or a
subleasing of the Premises.

 

(e)
No subletting or assignment shall release Tenant of Tenant's obligations under this Lease or alter the primary liability of Tenant
to pay the Rent and to perform all other obligations to be performed by Tenant hereunder. The acceptance of Rent by Landlord from
any other person shall not be deemed to be a waiver by Landlord of any provision hereof Consent to one assignment or subletting
shall not be deemed consent to any subsequent assignment or subletting. In the event of default by an assignee or subtenant of
Tenant or any successor of Tenant in the performance of any of the terms hereof, Landlord may proceed directly against Tenant
without the necessity of exhausting remedies against such assignee, subtenant or successor . Landlord may consent to subsequent
assignments of the Lease or sublettings or amendments or modifications to the Lease with assignees of Tenant, without notifying
Tenant, or any successor of Tenant, and without obtaining its or their consent thereto and any such actions shall not relieve
Tenant of liability under this Lease.

 

(f)
If Tenant assigns the Lease or sublets the Premises or requests the consent of Landlord to any assignment or subletting or if
Tenant requests the consent of Landlord for any act that Tenant proposes to do, then Tenant shall, upon demand, pay Landlord an
administrative fee of One Hundred Fifty and No/100 Dollars ($150.00) plus any attorneys' fees reasonably incurred by Landlord
in connection with such act or request.

 

17.
HOLDING OVER. If after expiration of the Term, Tenant remains in possession of the Premises, Tenant shall become a tenant
at sufferance only, and no renewal of the Term of this Lease or month-to-month tenancy shall be inferred from such holding over.
Notwithstanding the foregoing, Tenant shall comply with all the provisions of this Lease, but the monthly installments of Base
Rent payable by Tenant shall be increased to one hundred fifty percent (150%) of the monthly installments of Base Rent payable
by Tenant at the expiration of the Term. Such monthly rent shall be payable in advance on or before the first day of each month.

 

    	 	14	 

     

    

 

 

18.
SURRENDER OF PREMISES.

 

(a)
Tenant shall peaceably surrender the Premises to Landlord on the Expiration Date, in broom-clean condition and in as good condition
as when Tenant took possession, except for (i) reasonable wear and tear (but not want of ordinary maintenance), (ii) loss by fire
or other casualty and (iii) loss by condemnation. Tenant shall, on Landlord's request, remove Tenant's Property on or before the
Expiration Date and promptly repair all damage to the Premises or Building caused by such removal.

 

(b)
If Tenant vacates, abandons or surrenders the Premises, or is dispossessed by process of law or otherwise, any of Tenant's Property
left on the Premises shall be deemed to be abandoned and, at Landlord's option, title shall pass to Landlord under this Lease
as by a bill of sale. If Landlord elect to remove all or any part of such Tenant's Property, the cost of removal, including repairing
any damage to the Premises or Building caused by such removal, shall be paid by Tenant. On the Expiration Date, Tenant shall surrender
all keys to the Premises.

 

(c)
No act or conduct of Landlord, including, without limitation, the acceptance of keys to the Premises, shall constitute an acceptance
of the surrender of the Premises by Tenant before the expiration of the Tenn. Only a written notice from Landlord to Tenant shall
constitute acceptance of the surrender of the Premises and accomplish a termination of the Lease.

 

19.
DESTRUCTION OR DAMAGE.

 

(a)
If the Premises or the portion of the Building necessary for Tenant's occupancy is damaged by fire, earthquake, act of God, the
elements of other casualty, Landlord shall, subject to the provisions of this Article, promptly repair the damage, if such repairs
can, in Landlord's opinion, be completed within ninety (90) days. If Landlord determines that repairs can be completed within
ninety (90) days, this Lease shall remain in full force and effect, except that if such damage is not the result of the negligence
or willful misconduct of Tenant or Tenant's agents, employees, contractors, licensees or invitees, the Base Rent shall be abated
to the extent Tenant's use of the Premises is impaired, commencing with the date of damage and continuing until completion of
the repairs required of Landlord under Section 19(d).

 

(b)
If in Landlord's opinion, such repairs to the Premises or portion of the Building necessary for Tenant's occupancy cannot be completed
within ninety (90) days, Landlord may (but shall have no obligation to) elect, upon notice to Tenant given within thirty (30)
days after the date of such fire or other casualty, to repair such damage, in which event this Lease shall continue in full force
and effect, but the Base Rent shall be partially abated as provided in Section 19(a). If Landlord does not so elect to make such
repairs, this Lease shall terminate as of the date of such fire or other casualty.

 

(c)
If any other portion of the Building or Project is totally destroyed or damaged to the extent that in Landlord's opinion
repair thereof cannot be completed within ninety (90) days, Landlord may elect upon notice to Tenant given within thirty (30)
days after the date of such fire or other casualty, to repair such damage, in which event this Lease shall continue in full
force and effect, but the Base Rent shall be partially abated as provided in Section 19(a). If Landlord does not elect to
make such repairs, this Lease shall terminate as of the date of such fire or other casualty period. Landlord shall pay to
Tenant a sum equal to the total of three (3) months Monthly Rent, the remaining unamortized cost of leasehold improvements
installed by Tenant (amortized over a period not to exceed the length of the term of the Lease), and any remaining security
deposit; upon the payment of which, each party shall be released from further obligation to the other.

 

 

 

    	 	15	 

     

    

 

(d)
If the Premises are to be repaired under this Article, Landlord shall repair at its cost any injury or damage to the Building
and standard Building finishes in the Premises. Tenant shall be responsible at its sole cost and expense for the repair, restoration
and replacement of any other leasehold improvements and Tenant's Property. Landlord shall not be liable for any loss of business,
inconvenience or annoyance arising from any repair or restoration of any portion of the Premises, Building or Project as a result
of any damage from fire or other casualty.

 

(e)
This Lease shall be considered an express agreement governing any case of damage to or destruction of the Premises, Building or
Project by fire or other casualty, and any present or future law, which purports to govern the rights of Landlord and Tenant in
such circumstances, in the absence of express agreement, shall have no application.

 

20.
EMINENT DOMAIN.

 

(a)
If the whole of the Building or Premises is lawfully taken by condemnation or in any other manner for any public or quasi-public
purpose, this Lease shall terminate as of the date of such taking, and Rent shall be prorated to such date. If less than the whole
of the Building or Premises is so taken, this Lease shall be unaffected by such taking, provided that (i) Tenant shall have the
right to terminate this Lease by notice to Landlord given within ninety (90) days after the date of such taking if twenty percent
(20%) or more of the Premises is taken and the remaining area of the Premises is not reasonably sufficient for Tenant to continue
operation of its business, and (ii) Landlord shall have the right to terminate this Lease by notice to Tenant given within ninety
(90) days after the date of such taking. If either Landlord or Tenant so elects to terminate this Lease pursuant to this Section,
the Lease shall terminate on the thirtieth (30th) day after either such notice. The Rent shall be prorated to the date of termination.
If this Lease continues in force upon such partial taking, the Base Rent and Tenant's Proportionate Share shall be equitably adjusted
according to the remaining Rentable Area of the Premises and Project.

 

(b)
In the event of any taking, partial or whole, all of the proceeds of any award, judgment or settlement payable by the condemning
authority shall be the exclusive property of Landlord, and Tenant hereby assigns to Landlord all of its right, title and interest
in any award, judgmentor settlement from the condemning authority. Tenant, however, shall have the right, to the extent that Landlord's
award is not reduced or prejudiced, to claim from the condemning authority (but not from Landlord) such compensation as may be
recoverable by Tenant in its own right for relocation expenses and damage to Tenant's personal property.

 

(c)
In the event of a partial taking of the Premises which does not result in a termination of this Lease, Landlord shall restore
the remaining portion of the Premises as nearly as practicable to its condition prior to the condemnation or taking, but only
to the extent of standard Building finishes. Tenant shall be responsible at its sole cost and expense for the repair, restoration
and replacement of any other leasehold Improvements and Tenant's Property.

 

20.1
Change in Ownership and Other Events. In the event Landlord chooses to raze the Project or in the event the Project is
under contract to be sold or in the event all or substantially all of the Project is leased to one tenant during the term of
this Lease, Landlord may cancel this Lease and terminate Tenant's right of occupancy hereunder by giving six (6) months
written notice of such cancellation to Tenant. Within ten (10) days after Tenant vacates the Premises, provided, (1) Tenant
is not then in default under the terms of the Lease, and (2) Tenant has vacated the Premises within the aforesaid six (6)
month period. Landlord shall pay to Tenant a sum equal to the total of three (4) months Monthly Rent, the
remaining unamortized cost of leasehold improvements installed by Tenant (amortized over a period not to exceed the length of
the term of the Lease), and any remaining security deposit; upon the payment of which, each party shall be released from
further obligation to the other.

 

 

    	 	16	 

     

    

 

21.
INDEMNIFICATION.

 

(a)
Tenant shall indemnify and hold Landlord, its officers, directors, members, managers, agents, affiliates and employees (collectively,
the "Landlord Parties") harmless from and against liability, losses, costs, demands and claims of any kind for loss
or damage to property of Tenant or any other person, or for any injury to or death of any person, arising out of: (1) Tenant's
use and occupancy of the Premises, or any work, activity or other things allowed or suffered by Tenant to be done in, on or about
the Premises; (2) any breach or default by Tenant of any of Tenant's obligation or representations or warranties under this Lease;
or (3) any negligent or otherwise tortious act or omission of Tenant, its agents, employees, invitees or contractors. Tenant shall
at Tenant's expense, and by counsel satisfactory to Landlord, defend Landlord in any action or proceeding arising from any such
claim and shall indemnify Landlord against all costs, attorneys' fees, expert witness fees and any other expenses incurred in
such action or proceeding. As a material part of the consideration for Landlord's execution of this Lease, Tenant hereby assumes
all risk of damage or injury to any person or property in, on or about the Premises from any cause.

 

(b)
Landlord shall not be liable for injury or damage that may be sustained by the person or property of Tenant, its employees, invitees
or customers, or any other person in or about the Premises, caused by or resulting from fire, steam, electricity, gas, water or
rain that may leak or flow from or into any part of the Premises, or from the breakage, leakage, obstruction or other defects
of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or for any mold conditions arising out
of any of the foregoing whether such damage or injury results from conditions arising upon the Premises or upon other portions
of the Building or Project or from other sources. Landlord shall not be liable for any damages arising from any act or omission
of any other tenant of the Building or Project.

 

22.
TENANT'S INSURANCE.

 

(a)
All insurance required to be carried by Tenant hereunder shall be issued by responsible insurance companies acceptable to Landlord
and Landlord's lender and qualified to do business in the State and rated at will or better in A.M. Best's Insurance Guide. Each
policy shall name Landlord, and at Landlord's request any mortgagee of Landlord, as an additional insured, as their respective
interests may appear. Each policy shall contain (i) a cross-liability endorsement, (ii) a provision that such policy and the coverage
evidenced thereby shall be primary and non-contributing with respect to any policies carried by Landlord and that any coverage
carried by Landlord shall be excess insurance, and (iii) a waiver by the insurer of any right of subrogation against Landlord,
its agents, employees and representatives, that arises or might arise by reason of any payment under such policy or by reason
of any act or omission of Landlord, its agents, employees or representatives. A copy of each paid up policy (authenticated by
the insurer) or certificate of the insurer evidencing the existence and amount of each insurance policy required hereunder shall
be delivered to Landlord before the date Tenant is first given the right of possession of the Premises, and thereafter within
thirty (30) days after any demand by Landlord therefor. Landlord may, at any time and from time to time, inspect and/or copy any
insurance policies required to be maintained by Tenant hereunder. No such policy shall be cancelable except after twenty (20)
days written notice to Landlord and Landlord's lender. Tenant shall furnish Landlord with renewals or "binders" of any
such policy at least ten (10) days prior to the expiration thereof. Tenant agrees that if Tenant does not take out and maintain
such insurance, Landlord may (but shall not be required to) procure said insurance on Tenant's behalf and charge the Tenant the
premiums together with a twenty-five percent (25%) handling charge, payable upon demand. Tenant shall have the right to provide
such insurance coverage pursuant to blanket policies obtained by the Tenant, provided such blanket policies expressly afford coverage
to the Premises, Landlord, Landlord's mortgagee and Tenant as required by this Lease.

 

 

 

    	 	17	 

     

    

 

(b)
Beginning on the date Tenant is given access to the Premises for any purpose and continuing until expiration of the Term, Tenant
shall procure, pay for and maintain in effect policies of casualty insurance covering (i) all improvements to the Premises made
by or on behalf of Tenant (including any alterations, additions or improvements as may be made by Tenant pursuant to the provisions
of Article 12 hereof), and (ii) trade fixtures, merchandise and other personal property from time to time in, on or about the
Premises, in an amount not less than one hundred percent (100%) of their actual replacement cost from time to time, providing
protection against any peril included within the classification "Fire and Extended Coverage" together with insurance
against sprinkler damage, vandalism and malicious mischief. The proceeds of such insurance shall be used for the repair or replacement
of the property so insured. Upon termination of this Lease following a casualty as set forth herein, the proceeds of such insurance
shall be paid to Landlord under Section 22(b)(i) above and shall be paid to Tenant under Section 22(b)(ii) above.

 

(c)
Beginning on the date Tenant is given access to the Premises for any purpose and continuing until expiration of the Term, Tenant
shall procure, pay for and maintain in effect: (1) workers' compensation insurance as required by law and employer's liability
insurance shall be provided in amounts not less than $1,000,000 each accident for bodily injury by accident, $1,000,000 policy
limit for bodily injury by disease, and $1,000,000 each employee for bodily injury by disease; and (2) comprehensive public liability
and property damage insurance with respect to the construction of improvements on the Premises, the use, operation or condition
of the Premises and the operations of Tenant in, on or about the Premises, providing personal injury and broad form property damage
coverage for not less than Two Million Dollars ($2,000,000) combined single limit for bodily injury, death and property damage
liability. In addition, Tenant shall procure and maintain in full force and effect at all times during the term of this Lease,
at Tenant's cost and expense, business auto liability insurance covering any and all owned, non-owned and hired vehicles with
a combined single limit of not less than $1,000,000.00 per accident. All of the insurance required under this Section 22 shall
name Landlord as an additional insured thereunder.

 

(d)
Not less than every three (3) years during the Term, Landlord shall have the right, in Landlord's reasonable business judgment,
to require increases in all of Tenant's insurance policy limits for all insurance to be carried by Tenant as set forth in this
Article.

 

23.
WAIVER OF SUBROGATION. Landlord and Tenant each hereby waive all rights of recovery against the other and against the officers,
directors, members, managers, employees, agents and representatives of the other, on account of loss by or damage to the waiving
party of its property or the property of others under its control, to the extent that such loss or damage is insured against under
any fire and extended coverage insurance policy which either may have in force at the time of the loss or damage. Tenant shall,
upon obtaining the policies of insurance required under this Lease give notice to its insurance carrier or carriers that the foregoing
mutual waiver of subrogation is contained in this Lease.

 

24.
SUBORDINATION AND ATTORNMENT. Upon written request of Landlord, or any mortgagee or deed of trust beneficiary of
Landlord, or ground lessor of Landlord, Tenant shall, in writing, subordinate its rights under this Lease to the lien of any
mortgage or deed of trust now or hereafter in effect with respect to the Building or Project, or to the interest of any lease
in which Landlord now or hereafter becomes lessee, and to all advances made or hereafter to be made thereunder. The holder of
any security interest may, upon written notice to Tenant, elect to have this Lease prior to its security interest regardless
of the time of the granting or recording of such security interest.

 

 

    	 	18	 

     

    

 

 

In
the event of any foreclosure sale, transfer in lieu of foreclosure or termination of the lease in which Landlord is lessee, Tenant
shall attorn to the purchaser, transferee or lessor as the case may be, and recognize that party as Landlord under this Lease,
provided such party acquires and accepts the Premises subject to this Lease.

 

25.
TENANT ESTOPPEL CERTIFICATES. Within ten (10) days after written request from Landlord, Tenant shall execute and deliver to
Landlord or Landlord's designee, a written statement certifying (a) that this Lease is unmodified and in full force and effect,
or is in full force and effect as modified and stating the modifications; (b) the amount of Base Rent and the date to which Base
Rent and additional rent have been paid in advance; (c) the amount of any security deposited with Landlord; (d) that Landlord
is not in default hereunder or, if Landlord is claimed to be in default, stating the nature of any claimed default; and (e) such
other matters reasonably requested by Landlord. A purchaser, assignee or lender of Landlord may rely upon any such statement.
Tenant's failure to execute and deliver such statement within the time required shall at Landlord's election be a default under
this Lease and shall also be conclusive upon Tenant that: (1) this Lease is in full force and effect and has not been modified
except as represented by Landlord; (2) there are no uncured defaults in Landlord's performance and that Tenant has no right of
offset, counter-claim or deduction against Rent; and (3) no more than one month's Rent has been paid in advance.

 

26.
TRANSFER OF LANDLORD'S INTEREST. In the event of any sale or transfer by Landlord of the Premises, Building or Project, and
assignment of this Lease by Landlord, Landlord shall be and is hereby entirely freed and relieved of any and all liability and
obligations contained in or derived from this Lease arising out of any act, occurrence or omission relating to the Premises, Building,
Project or Lease occurring after the consummation of such sale or transfer, provided the purchaser shall expressly assume all
of the covenants and obligations of Landlord under this Lease. If Tenant has paid any Security Deposit or prepaid Rent, Landlord
may transfer the Security Deposit or prepaid Rent to Landlord's successor and upon such transfer; Landlord shall be relieved of
any and all further liability with respect thereto.

 

27.
DEFAULT.

 

27.1
Tenant's Default. The occurrence of any one or more of the following events shall constitute a default and breach of this
Lease by Tenant:

 

(a)
If Tenant abandons or vacates the Premises; or

 

(b)
If Tenant fails to pay any Rent or any other charges required to be paid by Tenant under this Lease and such failure continues
for five (5) days after such payment is due and payable (provided that the foregoing shall not be construed as a grace period
in favor of Tenant); or

 

(c)
If Tenant fails to promptly and fully perform any other covenant, condition or agreement contained in this Lease and such failure
continues for thirty (30) days after written notice thereof from Landlord to Tenant; or

 

(d)
If a writ of attachment or execution is levied on this Lease or on any of Tenant's Property; or

 

    	 	19	 

     

    

 

(e)
If Tenant makes a general assignment for the benefit of creditors, or provides for an arrangement, composition, extension or adjustment
with its creditors; or

 

(f)
If Tenant files a voluntary petition for relief or if a petition against Tenant in a proceeding under the federal bankruptcy laws
or other insolvency laws is filed and not withdrawn or dismissed within forty-five (45) days thereafter, or if under the provisions
of any law providing for reorganization or winding up of corporations, any court of competent jurisdiction assumes jurisdiction,
custody or control of Tenant or any substantial part of its property and such jurisdiction, custody or control remains in force
unrelinquished, unstayed or unterminated for a period of forty-five (45) days; or

 

(g)
If in any proceeding or action in which Tenant is a party, a trustee, receiver, agent or custodian is appointed to take charge
of the Premises or Tenant's Property (or has the authority to do so) for the purpose of enforcing a lien against the Premises
or Tenant's Property; or

 

(h)
If Tenant is a partnership, limited liability company, closely-held corporation or corporation with fewer than five (5) stockholders,
or consists of more than one (1) person or entity, if any partner of the partnership, member of the limited liability company,
shareholder of such corporation, or other person or entity is involved in any of the acts or events described in suhparagraphs
(d) through (g) above.

 

27.2.
Remedies. In the event of Tenant's default hereunder, then in addition to any other rights or remedies Landlord may have at
law, in equity or otherwise, Landlord shall have the right, at Landlord's option, without further notice or demand of any kind
to do the following:

 

(a)
Terminate this Lease and Tenant's right to possession of the Premises and re-enter the Premises and take possession thereof, and
Tenant shall have no further claim to the Premises or under this Lease; or

 

(b)
If Landlord does not elect to terminate this Lease on account of any default by Tenant, Landlord may, from time to time, without
terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to recover all rent as it
becomes due. If Landlord continues this Lease in effect, Landlord shall have the right to re-enter and occupy the Premises for
the account of Tenant, and collect any unpaid Rent or other charges that have or thereafter become due and payable; or

 

(c)
Re-enter the Premises under the provisions of Section 27(b), and thereafter elect to terminate this Lease and Tenant's right to
possession of the Premises.

 

If
Landlord re-enters the Premises under the provisions of subparagraphs (b) or (c) above, Landlord shall not be deemed to have
terminated this Lease or the obligation of Tenant to pay any Rent or other charges thereafter accruing, unless Landlord
notifies Tenant in writing of Landlord's election to terminate this Lease. In the event of any re-entry or retaking of
possession by Landlord, Landlord shall have the right, but not the obligation, to remove all or any part of Tenant's Property
in the Premises and to place such property in storage at a public warehouse at the expense and risk of Tenant. If Landlord
elects to relet the Premises for the account of Tenant, the rent received by Landlord from such reletting shall be applied as
follows: first, to the payment of any indebtedness other than Rent due hereunder from Tenant to Landlord; second, to the
payment of any costs of such reletting; third, to the payment of the cost of any alterations or repairs to the Premises;
fourth to the payment of Rent due and unpaid hereunder; and the balance, if any, shall be held by Landlord and applied in
payment of future Rent as it becomes due. If that portion of rent received from the reletting that is applied against the
Rent due hereunder is less than the amount of the Rent due, Tenant shall pay the deficiency to Landlord promptly upon demand
by Landlord. Such deficiency shall be calculated and paid monthly Tenant shall also pay to Landlord, as soon as determined,
any costs and expenses incurred by Landlord in connection with such reletting or in making alterations and repairs to the
Premises that are not covered by the rent received from the reletting.

 

 

    	 	20	 

     

    

 

 

Without
limiting the generality of Paragraph 15(e) above, Landlord shall have the right to enter the Premises immediately following Landlord's
obtaining a judgment for possession, as well as a right of access to inspect the Premises from time to time until the Landlord
shall obtain a judgment for possession of the Premises. Tenant shall indemnify, defend and hold Landlord harmless to the fullest
extent set forth in Paragraph 2l(a) above for any and all claims, demands, losses, costs (including without limitation attorneys
fees and disbursements), liabilities and damages or injury to persons or property if Tenant prevents Landlord from inspecting
the Premises or otherwise interferes with Landlord's access to or inspection of the Premises. Tenant shall be responsible for
all reasonable costs incurred by Landlord in correcting any dangerous conditions discovered during the course of any of the inspections
authorized pursuant to this Paragraph 27.2.

 

Should
Landlord elect to terminate this Lease under the prov1s1ons of subparagraph (a) or (c) above, Landlord may recover as damages
from Tenant the following:

 

(1)
Past Rent. The worth at the time of the award of any unpaid Rent that had been earned at the time of termination; plus

 

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

 

(3)
Rent After Award. The worth at the time of the award of the amount by which the unpaid Rent for the balance of the Term
after the time of award exceeds the amount of the rental loss that Tenant proves could be reasonably avoided; plus

 

(4)
Proximately Caused Damages. Any other amount necessary to compensate Landlord for all detriment proximately caused by Tenant's
failure to perform its obligations under this Lease or that in the ordinary course of things would be likely to result therefrom,
including, but not limited to, any costs or expenses (including attorneys' fees), incurred by Landlord in (a) retaking possession
of the Premises, (b) maintaining the Premises after Tenant's default, (c) preparing the Premises for reletting to a new tenant,
including any repairs or alterations, and (d) reletting the Premises, including broker's commissions.

 

The
"worth at the time of the award" as used in subparagraphs l and 2 above, is to be computed by allowing interest at the
rate of ten percent (10%) per annum. "The worth at the time of the award" as used in subparagraph 3 above, is to be
computed by discounting the amount at the discount rate of the Federal Reserve Bank situated nearest to the Premises at the time
of the award plus one percent (1%).

 

 

    	 	21	 

     

    

 

The
waiver by Landlord of any breach of any term, covenant or condition of this Lease shall not be deemed a waiver of such term, covenant
or condition or of any subsequent breach of the same or any other term, covenant or condition. Acceptance of Rent by Landlord
subsequent to any breach hereof shall not be deemed a waiver of any preceding breach other than the failure to pay the particular
Rent so accepted, regardless of Landlord's knowledge of any breach at the time of such acceptance of Rent. Landlord shall not
be deemed to have waived any term, covenant or condition unless Landlord gives Tenant written notice of such waiver.

 

27.3
Landlord's Default. If Landlord fails to perform any covenant, condition or agreement contained in this Lease within thirty
(30) days after receipt of written notice from Tenant specifying such default, or if such default cannot reasonably be cured within
thirty (30) days, if Landlord fails to commence to cure within that thirty (30) day period, then Landlord shall be liable to Tenant
for any damages sustained by Tenant as a result of Landlord's breach; provided, however, it is expressly understood and agreed
that if Tenant obtains a money judgment against Landlord resulting from any default or other claim arising under this Lease, that
judgment shall be satisfied only out of the rents, issues, profits, and other income actually received on account of Landlord's
right, title and interest in the Premises, Building or Project, and no other real, personal or mixed property of Landlord (or
of any of the members or partners which comprise Landlord, if any) wherever situated, shall be subject to levy to satisfy such
judgment. Tenant shall not have the right to terminate this Lease or to withhold, reduce or offset any amount against any payments
of Rent or anyother charges due and payable under this Lease except as otherwise specifically provided herein.

 

28.
BROKERAGE FEES. Tenant warrants and represents that it has not dealt with any real estate broker or agent in connection with
this Lease or its negotiation except those noted, if any, in Section 2(c). Tenant shall indemnify, defend and hold Landlord harmless
from any claim, demand, loss, cost, expense or liability (including costs of suit and reasonable attorneys' fees) for any compensation,
commission or fees claimed by any other real estate broker or agent in connection with this Lease or its negotiation by reason
of any act of Tenant.

 

29.
NOTICES. All notices, approvals and demands permitted or required to be given under this Lease shall be in writing and deemed
duly served or given if personally delivered or sent by certified or registered U.S. mail, postage prepaid, and addressed as follows:
(a) if to Landlord, to Landlord's Mailing Address and to the Building manager, and (b) ifto Tenant, to Tenant's Mailing Address;
provided, however, notices to Tenant shall be deemed duly served or given if delivered or mailed to Tenant at the Premises. Landlord
may from time to time by notice designate another place for receipt of future notices.

 

30.
GOVERNMENT ENERGY OR UTILITY CONTROLS. In the event of imposition of Federal, State or local government controls, rules, regulations,
or restrictions on the use or consumption of energy or other utilities during the Term, both Landlord and Tenant shall be bound
thereby. In the event of a difference in interpretation by Landlord and Tenant of any such controls, the interpretation of Landlord
shall prevail, and Landlord shall have the right to enforce compliance therewith, including the right of entry into the Premises
to effect compliance.

 

31.
RELOCATION OF PREMISES. Landlord shall have the right to relocate the Premises to another part of the Building in accordance
with the following:

 

(a)
The new premises shall be substantially the same in size, overall dimensions and nature as the Premises described in this Lease.

 

(b)
Landlord shall give Tenant at least thirty (30) days written notice of Landlord's intention to relocate the Premises.

 

 

    	 	22	 

     

    

 

(c)
As nearly as practicable, the physical relocation of the Premises shall take place on a weekend and shall be completed before
the following Monday. If the physical relocation has not been completed in that time, Base Rent shall abate in full from the time
the physical relocation commences to the time it is completed. Upon completion of such relocation, the new premises shall become
the "Premises" under this Lease.

 

(d)
Landlord shall pay all reasonable costs incurred by Tenant as a result of the relocation.

 

(e)
If the new premises are smaller than the Premises as it existed before the relocation, Base Rent shall be reduced proportionately.

 

(f)
The parties hereto shall immediately execute an amendment to this Lease setting forth the relocation of the Premises and the reduction
of Base Rent, if any.

 

32.
QUIET ENJOYMENT. Tenant, upon paying the Rent and performing all of its obligations under this Lease, shall peaceably and
quietly enjoy the Premises, subject to the terms of this Lease and to any mortgage, lease, or other agreement to which this Lease
may be subordinate.

 

33.
[Intentionally Deleted.)

 

34.
FORCE MAJEURE. Any prevention, delay or stoppage of work to be performed by Landlord or Tenant that is due to strikes, labor
disputes, inability to obtain labor, materials, equipment or reasonable substitutes therefore, acts of God, governmental restrictions
or regulations or controls, judicial orders, enemy or hostile government actions, civil commotion, fire or other casualty, or
other causes beyond the reasonable control of the party obligated to perform hereunder, shall excuse performance of the work by
that party for a period equal to the duration of that prevention, delay or stoppage. Notwithstanding the foregoing, nothing in
this Article 34 shall excuse or delay Tenant's obligation to pay Rent or other charges under this Lease.

 

35.
CURING TENANT'S DEFAULTS. If Tenant defaults in the performance of any of its obligations under this Lease, Landlord may (but
shall not be obligated to) without waiving such default, perform the same for the account at the expense of Tenant. Tenant shall
pay Landlord all costs of such performance within five (5) days of receipt of a bill therefore.

 

36.
SIGN CONTROL. Tenant shall not affix, paint, erect or inscribe any sign, projection, awning, signal or advertisement of any
kind to any part of the Premises, Building or Project, including without limitation, the inside or outside of windows or doors,
without the written consent of Landlord. Landlord shall have the right to remove any signs or other matter, installed without
Landlord's permission, without being liable to Tenant by reason of such removal and to charge the cost of removal to Tenant as
additional rent hereunder, payable within ten (10) days of written demand by Landlord.

 

 

 

    	 	23	 

     

    

 

37.
WAIVER OF JURY TRIAL. To the extent permitted by law, Landlord and Tenant hereby waive their respective rights to trial by
jury of any cause of action, claim, counter-claim or cross complaint in any action, proceeding or hearing brought by either Landlord
against Tenant, or Tenant against Landlord on any matter whatsoever arising out of, or in any connection with, this Lease, the
relationship of Landlord and Tenant, Tenant's use or occupancy of the Premises, or any claim of injury or damage, or the enforcement
of any remedy under any law, statute or regulation, emergency or otherwise now or hereinafter in effect. BY INITIALING THE SPACE
BELOW, EACH PARTY ACKNOWLEDGES AND AGREES TO THE FOREGOING WAIVER OF ANY AND ALL RIGHTS TO A TRIAL BY JURY FOR ANY DISPUTE ARISING
FROM OR RELATING TO THIS AGREEMENT:

 

LANDLORD /S/                              TENANT
/S/

 

If the foregoing waiver is not enforceable, then any dispute,
controversy or claim arising out of or relating to this Lease or any of the transactions contemplated hereby shall be settled by
final and binding arbitration held in the County of Washoe, State of Nevada in accordance with the then applicable Commercial Arbitration
Rules of the American Arbitration Association. Judgment upon any award resulting from arbitration may be entered into and enforced
by any state or federal court having jurisdiction thereof.

 

38.
MISCELLANEOUS.

 

(a)
Accord and Satisfaction; Allocation of Payments. No payment by Tenant or receipt by Landlord of a lesser amount than the Rent
provided for in this Lease shall be deemed to be other than on account of the earliest due Rent, nor shall any endorsement or
statement on any check or letter accompanying any check or payment as Rent be deemed an accord and satisfaction, and Landlord
may accept such check or payment without prejudice to Landlord's right to recover the balance of the Rent or pursue any other
remedy provided for in this Lease. In connection with the foregoing, Landlord shall have the absolute right in its sole discretion
to apply any payment received from Tenant to any account or other payment of Tenant then not current and due or delinquent. Landlord
shall not be obligated to provide Tenant with monthly statements of Base Rent or any other charges owing. However, should Landlord
provide any such statement, such statement shall not be deemed a waiver of any amounts that Landlord is entitled to collect pursuant
to the terms of this Lease, nor a waiver of any other default on the part of Tenant hereunder.

 

(b)
Addenda. If any provision contained in any addendum to this Lease is inconsistent with any other provision herein, the
provision contained in the addendum shall control, unless otherwise provided in the addendum.

 

(c)
Attorneys' Fees. If any action or proceeding is brought by either party against the other pertaining to or arising out
of this Lease, the finally prevailing party shall be entitled to recover all costs and expenses, including reasonable attorneys'
fees, incurred on account of such action or proceeding. In addition, Tenant agrees to pay Landlord's costs, expenses and reasonable
attorneys' fees with respect to (i) each request to Landlord for permission or consent to assign or sublet the Premises, in whole
or in part, in accordance with the provisions Section 16(d) hereof; (ii) each request made by Tenant to modify, amend or supplement
this Lease; and (iii) any breach or default by Tenant that is cured prior to the commencement of litigation.

 

(d)
Captions, Articles and Section Numbers. The captions appearing within the body of this Lease have been inserted as a matter
of convenience and for reference only and in no way define, limit or enlarge the scope or meaning of this Lease. All references
to Article and Section numbers refer to Articles and Sections in this Lease.

 

    	 	24	 

     

    

 

(e)
Changes Requested by Lender. Tenant shall not unreasonably withhold its consent to changes or amendments to this Lease
requested by the lender on Landlord's interest, so long as these changes do not alter the basic business terms of this Lease or
otherwise materially diminish any rights or materially increase any obligations of Tenant.

 

(f)
Choice of Law. This Lease shall be construed and enforced in accordance with the laws of the State.

 

(g)
Consent. Notwithstanding anything contained in this Lease to the contrary, Tenant shall have no claim, and hereby waives
the right to any claim against Landlord for money damages by reason of any refusal, withholding or delaying by Landlord of any
consent, approval or statement of satisfaction, and in such event, Tenant's only remedies therefor shall be an action for specific
performance, injunction or declaratory judgment to enforce any right to such consent, approval or statement of satisfaction.

 

(h)
Corporate Authority. If Tenant is a corporation, limited liability company or other entity, each individual signing this
Lease on behalf of Tenant represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf
of such entity, and that this Lease is binding on Tenant in accordance with its terms. If Tenant is a corporation, Tenant shall,
at Landlord's request, deliver a certified copy of a resolution of its board of directors authorizing such execution.

 

(i)
Counterparts. This Lease may be executed in multiple counterparts, all of which shall constitute one and the same Lease.

 

(j)
Execution of Lease; No Option. The submission of this Lease to Tenant shall be for examination purposes only, and does
not and shall not constitute a reservation of or option for Tenant to lease, or otherwise create any interest of Tenant in the
Premises or any other premises within the Building or Project. Execution of this Lease by Tenant and its return to Landlord shall
not be binding on Landlord notwithstanding any time interval, until Landlord has in fact signed and delivered this Lease to Tenant.

 

(k)
Furnishing of Financial Statements; Tenant's Representations. In order to induce Landlord to enter into this Lease Tenant
agrees that it shall promptly furnish Landlord, from time to time, upon Landlord's written request, with financial statements
reflecting Tenant's current financial condition. Tenant represents and warrants that all financial statements, records and information
furnished by Tenant to Landlord in connection with this Lease are true, correct and complete in all respects.

 

(l)
Further Assurances. The parties agree to promptly sign all documents reasonably requested to give effect to the provisions
of this Lease.

 

(m)
Mortgagee Protection. Tenant agrees to send by certified or registered mail to any mortgagee or deed of trust beneficiary
of Landlord whose address has been furnished to Tenant, a copy of any notice of default served by Tenant on Landlord. If Landlord
fails to cure such default within the time provided for in this Lease, such mortgagee or beneficiary shall have an additional
thirty (30) days to cure such default; provided that if such default cannot reasonably be cured within that thirty (30) day period,
then such mortgagee or beneficiary shall have such additional time to cure the default as is reasonably necessary under the circumstances.

 

 

 

    	 	25	 

     

    

 

(n) Prior
Agreements; Amendments. This Lease contains all of the agreements of the parties with respect to any matter covered or
mentioned in this Lease, and no prior agreement or

 

 

 

    	 	26	 

     

    

IN
WITNESS WHEREOF, the parties hereto have executed this Lease as of the dates set forth below.

 

LANDLORD:

865 TAHOE BOULEVARD
ASSOCIATES, LLC,

a Nevada limited liability company

 

By: /s/ JR Orton III

Name J.R. Orton, III

Title 4/21/15

 

Date: 4/21/15

 

TENANT:

High
Desert Holding Corp.

 

By:
/s/ Mark Kersey

Name:
Mark Kersey

President

 

Date 4-20-15

 

 

    	 	27	 

     

    

 

without the prior consent of Landlord. All moving of the same into or
out of the Building shall be via the Building's freight handling facilities, unless otherwise directed by Landlord, at such
time and in such manner, as Landlord shall prescribe. No hand trucks or vehicles (other than a wheelchair for an individual)
shall be used in passenger elevators. Any hand trucks permitted in the Building must be equipped with soft rubber tires and
side guards.

 

		9.	Landlord shall have the right to prescribe the weight,
size and position of all safes and other heavy equipment brought into the Building, the times and manner of moving the same in
or out of the Building, and all such moving must be done under the supervision of Landlord. Safes or other heavy equipment shall,
if considered necessary by Landlord; stand on a platform of such thickness as is necessary to properly distribute the weight.
Landlord shall not be responsible for loss of or damage to any such safe or property from any cause, and all damage done to the
Building by moving or maintaining any such safe or other property shall be repaired at the expense of Tenant.

 

		10.	Tenant shall not employ any person or persons other than
the janitor of Landlord for the purpose of cleaning the Premises unless otherwise agreed to by Landlord. Except with the written
consent of Landlord, no person or persons other than those approved by Landlord shall be permitted to enter the Building for the
purpose of cleaning the same. Tenant shall not cause any unnecessary labor by reason of Tenant's carelessness or indifference
in the preservation of good order and cleanliness. Janitor service shall include ordinary dusting and cleaning by the janitor
assigned to such work and shall not include shampooing of carpets or rugs or moving of furniture or other special services. Janitor
service will not be furnished on nights when rooms are occupied after 9:30 P.M. Window cleaning shall be done only by Landlord.
Landlord shall not be responsible to any tenant for any loss of property on the Premises, however occurring, or for any damage
done to the effects of any tenant by the janitor or any other employee or any other person including the building guards.

 

		11.	Tenant shall not use, keep or permit to be used or kept
any foul or noxious gas or substance in the Premises, or permit or suffer the Premises to be occupied or used in any manner offensive
or objectionable to Landlord or other occupants of the Building by reason of noise, odors or vibrations, or interfere in any way
with other tenants or those having business therein, nor shall any animals or birds be brought in or kept in or about the Premises
or the Building.

 

		12.	No cooking shall be done or permitted by any tenant on
the Premises (other than such coffee service and reheating of foods in a microwave oven as is typical in connection with normal
office use), nor shall the Premises be used for the manufacture or storage of merchandise, for washing clothes, for lodging, or
for any improper, objectionable or immoral purpose.

 

		13.	Tenant shall not use or keep in the Premises or the Building
any kerosene, gasoline or inflammable, exp ol s ive or combustible fluid or material, or use any method of heating or air conditioning
other than that supplied by Landlord.

 

		14.	Landlord will direct electricians as to where and how telephone,
internet, telegraph and other wires are to be introduced. No boring or cutting for wires or stringing of wires will be allowed
without the written consent of Landlord. The location of telephones, call boxes and other office equipment affixed to the Premises
shall be subject to approval of Landlord.

 

		15.	No tenant shall lay linoleum, tile, carpet or other similar
floor covering so that the same shall be affixed to the floor of the Premises in any manner except as approved by Landlord. The
expense of Tenant agrees to conform to the Rules and Regulations that may be established from time to time by Landlord for these
areas.

 

		16.	Landlord shall have the right to prohibit any advertising
by any tenant which, in Landlord's opinion, tends to impair the reputation of the Building or its desirability as a location for
offices and, upon written notice from Landlord, Tenant shall refrain from or discontinue such advertising. Tenant shall not, without
the prior written consent of Landlord, which may be granted or withheld in Landlord's sole and absolute discretion, use the name
of the Building or the Project for any purpose other than as an address of the business to be conducted by Tenant in the Premises.
Tenant shall not be permitted to use any other tradename, trademark or fictitious business name of Landlord, nor shall Tenant
do anything in connection with Tenant's business or advertising which in the reasonable judgment of Landlord may reflect unfavorably
on Landlord, the Building or the Project, or confuse or mislead the public as to any apparent connection or relationship between
Landlord and Tenant.

 

 

 

    	 	28	 

     

    

 

5.
Guarantor's Authorization. Guarantor authorizes Landlord without notice demand or consent of any kind, and without affecting
Guarantor's liability under this Guara'nty, from time to time, to (a) renew, alter, compromise, extend, accelerate or otherwise
change any of the terms of the Obligations or any part thereof, including changing the rental rate or the time for payment thereof,
(b) accept partial payments on the Obligations, (c) extend credit to Tenant on an unsecured basis or take security or other support
for the obligations evidenced by this Guaranty or the Obligations, and exchange, enforce, waive or release any such security or
other support or any part thereof, (d) accept new or additional documents, instruments or agreements relative to the Obligations,
(e) apply any security or other support and direct the order or manner of sale or other disposition of such property as Landlord,
in its sole discretion, may deter mine, and (f) release or substitute any Person liable on the Obligations, any other guarantor
of the Obligations, or any other Person providing support for the Obligations to Landlord, this Guaranty, or any other guaranty.

 

6.
Landlord's Remedies. Guarantor waives any right to require Landlord to (a) proceed against Tenant or any other guarantor
or Person liable for the Obligations, (b) proceed against or exhaust any security or other support for the Obligations granted
by Tenant or any other guarantor or Person, or (c) pursue any other remedy in Landlord's power whatsoever, except that Landlord
shall be obligated to use reasonable efforts to mitigate damages as set forth in the Lease. Landlord' s rights hereunder shall
not be exhausted by its exercise of any of its rights or remedies or by any action or by any number of successive actions until
and unless all Obligations hereby guaranteed have been paid and fully performed.

 

7.
Waivers. Guarantor waives any defense arising by reason of (i) the absence, impairment or loss of any right of reimbursement,
contribution or subrogation, or any other right or remedy of Guarantor against Tenant or any other guarantor or Person, or with
respect to any security interest or other support for the Obligations, (ii) any disability or other defense of Tenant, or the
partial or complete cessation from any cause whatsoever of the liability of Tenant for the Obligations for any reason other than
payment in full and final satisfaction, (iii) the application by Tenant of the proceeds of any Obligations for purposes other
than the purposes represented by Tenant to Landlord or intended or understood by Landlord, (iv) any act or omission by Landlord
which directly or indirectly results in or aids the discharge of Tenant or any of the Obligations by operation of law or otherwise,
or (v) any exchange, release or non-perfection of any security or support for the Obligations or any release or amendment or waiver
of or consent to departure from the terms of any security agreement, other support or any other guaranty, for all or any of the
Obligations. Guarantor waives to the fullest extent permitted by law any right to enforce any remedy which Landlord now has or
may hereafter have against Tenant or any other guarantor or Person, and waives any benefit of, any right to participate in, and
any right to direct the application of, any security or support for the Obligations now or hereafter held by Landlord. Guarantor
waives notice of acceptance of this Guaranty and of the existence, creation or incurring of new or additional Obligations, except
as otherwise set forth in Paragraph 5 above. To the fullest extent permitted by law, Guarantor waives any requirement of Landlord
to give notice of the terms, time and place of any public or private sale of personal property security for the Obligations to
Landlord or to comply with any other provisions of Section 9-504 of the Uniform Commercial Code or its equivalent, from time to
time in effect in the state governing such security interest. Guarantor waives any right or claims of right to cause Landlord
to proceed against Guarantor, Borrower or any other guarantor of any of Borrower's Obligations in any particular order. To the
fullest extent permitted by law, Guarantor hereby waives and relinquishes all rights and remedies accorded by applicable law to
guarantors, including, without limitation, presentment, demand, protest, notice of dishonor and all other notices and demands.

 

 

    	 	29	 

     

    

 

(c)
No Waiver. Any waiver, consent or approval of any kind by Landlord must be in writing and shall be effective only to the extent
set forth in such writing. No failure or delay on the part of Landlord in exercising any power, right or privilege under this
Guaranty shall operate as a waiver thereof, and no single or partial exercise of any such power, right or privilege shall preclude
any further exercise thereof, or the exercise of any other power, right or privilege.

 

(d)
Rights Cumulative. All rights and remedies existing under this Guaranty are cumulative to, and not exclusive of, any other rights
or remedies under contact or applicable law.

 

(e)
Unenforceable Provisions. Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall be so
only as to such jurisdiction and only to the extent of such prohibition or unenforceability, but all the remaining provisions
of this Guaranty shall remain valid and enforceable.

 

(f)
Governing Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of Nevada.

 

(g)
Reimbursement. The prevailing party in any action or proceeding under this Guaranty shall be entitled to recover its reasonable
attorneys' fees and costs from the other party.

 

(h)
Multiple Guarantors. In all cases where this Guaranty is executed by more than one Guarantor, all words used herein in the singular
shall be deemed to have been used in the plural where the context and construction so require.

 

(i)
Joint and Several. Should more than one Person sign this Guaranty as Guarantor, their obligations hereunder shall be joint and
several.

 

(j)
Entire Agreement. This Guaranty is intended by Guarantor and Landlord as the final expression of Guarantor's obligations and
liabilities to Landlord described herein and supersedes all prior understandings or agreements concerning the subject
matter hereof. This Guaranty may be amended only by a writing signed by both Guarantor and Landlord.

 

[Signature appears on following page]

 

 

 

 

 

    	 	30	 

     

    

 

EXHIBIT E

ACKNOWLEDGEMENT
OF COMMENCEMENT

 

This
Acknowledgment is made as of April 17, 2015, with reference to that certain Lease Agreement ( hereinafter referred to as the "lease")
dated April 20, 2105 by and between 865 Tahoe Boulevard Associates, LLC, as " Landlord" therein, and High Desert Holding
Corp., as "Tenant", for the premises s itua ted at 865 Tahoe Boulevard, Suite 302, Incline Village, Nevada (the "Premises").

 

The
undersigned hereby confirms the following:

 

		1	. That the Tenant accepted possession of the Premises (as
described in said Lease) on April 20, 2015 and acknowledges that the Premises are as represented by the Landlord and in good order,
condition and repair, and that the improvements, if any, required to be constructed for Tenant by Landlord under this Lease have
been so constructed and are satisfactorily completed in all respects.

 

		2.	That all conditions of said Lease to be performed by Landlord
prerequisite to the full effectiveness of said Lease have been satisfied and that Landlord has fulfilled all of its duties of
an inducement nature.

 

		3.	That in accordance with the provisions of Article 2(d)
of said Lease the commencement date of the term is February 1, 2013, and that, unless sooner terminated, the original term thereof
expires on January 31, 2016.

 

		4.	That said Lease is in full force and effect and that the
same represents the entire agreement between Landlord and Tenant concerning said Lease.

 

		5.	That there are no existing defenses which Tenant has against
the enforcement of said Lease by Landlord, and no offsets or credits against rentals.

 

		6.	That the rental obligation of said Lease is presently in
effect and that all rentals, charges and other obligations on the part of Tenant under said Lease commence on April 20, 2015.

 

		7.	That the under signed has not made any prior assignment,
hypothecation or pledge of said Lease or of the rents thereunder .

 

 

TENANT: (This Exhibit to be signed with the
property manager at the time the Premises are delivered)

 

 

/s/
Mark Kersey                            

 

Date: 4-17-2015

 

 

 

    	 	31	 

     

 

    

 

 

 

 

    	 	32Exhibit 10.1

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

DISTRIBUTION AND SERVICES AGREEMENT

 

This Distribution and Services Agreement (this “Agreement”) is made as of the 22nd day of November, 2016 (“Effective Date”) by and between SARTIN’S VITAL CARE, INC., a Mississippi corporation, d/b/a Sartin’s Vital Care, BURNHAM’S VITAL CARE, L.L.C., a Mississippi Limited Liability Company, d/b/a Burnham’s Vital Care, and ATTICUS GROUP, LLC, a Mississippi Limited Liability Company, d/b/a Vital Care of Central Mississippi  (singly and collectively, “Franchisees”), VITAL CARE, INC., an Alabama corporation (“VitalCare”), and VERICEL CORPORATION, a Michigan corporation (“Client”).

 

RECITALS

 

WHEREAS, Franchisees are a part of VitalCare’s network of individually owned and operated infusion pharmacy franchises specializing in providing high-tech services to rural and urban patients throughout the United States, and VitalCare bills for related products and services on behalf of Franchisees;

 

WHEREAS, Franchisees or VitalCare currently contract with each payer listed on Exhibit A attached hereto (the “Payers”);

 

WHEREAS, Franchisees will bill and collect from each Payer for Products (defined below) purchased by Franchisees or by VitalCare, on behalf of Franchisees;

 

WHEREAS, Franchisees have the ability and authority to bill for Products, and VitalCare has the ability and authority to bill for Products on behalf of Franchisees;

 

WHEREAS, Client acknowledges that it is responsible for dispensing and distributing Products to patients, their representatives, or prescribers on behalf of Franchisees; and

 

WHEREAS, Franchisees, VitalCare, and Client desire to agree upon the terms and conditions upon which distribution and services shall be provided.

 

NOW, THEREFORE, in consideration of the mutual agreements and understandings set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Franchisees, VitalCare and Client agree as follows:

 

1.                                      DEFINITIONS.  Capitalized terms not otherwise defined in this Agreement have the meanings set forth in this Section 1 as follows:

 

(a)                                 “Adverse Event” means any untoward medical occurrence in a patient administered a Product and which is not necessarily caused by the Product.  An Adverse Event can therefore be any unfavorable and unintended sign (e.g. an abnormal laboratory finding), symptom, or disease temporarily associated with the use of a Product, whether or not considered related to the Product.  An Adverse Event includes, but is not limited to, the following: (i) any clinically significant worsening of a pre-existing condition; (ii) an event that has been associated with the discontinuation of the use of a Product; and (iii) any lack or loss of intended effect.

 

1

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

(b)                                 “Affiliate” of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person.  The term “control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

(c)                                  “Confidential Information” means any information (whether or not marked “confidential” and regardless of the medium of communication) that relates to the disclosing party or its business, including, without limitation, trade secrets, know-how, software, methodologies, processes, procedures, data, templates, forms, algorithms, specifications, drawings, technology, information pertaining to business operations and strategies, and information pertaining to customers, pricing and marketing.  Confidential Information shall not include information that:  (i) the receiving party can demonstrate is already known to the receiving party without restriction on use or disclosure prior to receipt of such information from the disclosing party; (ii) is or becomes generally known by the public other than by breach of this Agreement by, or other wrongful act of, the receiving party; (iii) the receiving party can demonstrate is developed by the receiving party independently of, and without reference to, any Confidential Information of the disclosing party; or (iv) is received by the receiving party from a third party who is not known by the receiving party to be under any obligation to the disclosing party to maintain the confidentiality of such information.

 

(d)                                 “Force Majeure” means acts of God or the public enemy, earthquakes, fire, flood, epidemic, civil insurrection or war, acts of terrorism, inability to access data, power or supplies, labor shortages or strife, and other conditions (other than financial difficulties) beyond the reasonable control of the involved party which delay or prevent the rendition of such party’s performance hereunder.

 

(e)                                  “Laws” means all laws, statutes, rules, regulations, guidelines and orders of the Territory or any unit, division or subdivision thereof, or any Regulatory Authority thereof.

 

(f)                                   “Medical Device Event” means an event that reasonably suggests that a device may have caused or contributed to a death or serious injury, or has malfunctioned and the malfunction of the device, or a similar device that Client markets, would be likely to cause or contribute to a death or serious injury if the malfunction were to recur.

 

(g)                                  “Other Safety Findings” means the following, whether it/they is/are associated with an Adverse Event or other Reportable Event: (i) use of a Client Product while pregnant and/or breast feeding; (ii) accidental or intentional medication errors; (iii) misuse, where the Product is intentionally and inappropriately used (including misuse for illegal purposes); (iv) transmission of an infectious agent through a contaminated Product; (v) occupational exposure to a Product; (vi) reports of patient “death” after exposure to a Product where no other details are provided (e.g., fatal outcomes); (vii) off-label use; (viii) wrong cells applied to a patient; and/or (ix) unexpected therapeutic benefits.

 

(h)                                 “Person” means an individual, corporation, partnership, joint venture, limited liability company, governmental authority, unincorporated organization, trust, association or other entity.

 

(i)                                     “Products” has the meaning set forth on Exhibit B attached hereto.

 

(j)                                    “Product Complaint” means any written, electronic, or oral communication of dissatisfaction regarding the identity, quality, durability, reliability and safety, with respect to Product quality, effectiveness or performance of a Product.  A Product Complaint may occur, among other ways, in the receipt of biopsy kits, or final Product during implantation/grafting or post-surgery.

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

(k)                                 “Regulatory Authority” means the government of the United States or any foreign jurisdiction, any state, county, municipality or other governmental or quasi governmental unit or sub-unit, or any agency, board, bureau, instrumentality, department or commission (including any court or other tribunal) of any of the foregoing.

 

(l)                                     “Reportable Events” includes one or more of the following: Adverse Events, Other Safety Findings, Product Complaints, and Medical Device Events.

 

(m)                             “Representatives” means, as to a Person, its and its Affiliates’ respective officers, directors, managers, employees, consultants, professional advisors, agents, financing sources, licensing partners and business associates.

 

(n)                                 “Standard Operating Procedures” means (i) the standard operating procedures of Franchisees and VitalCare, as may be revised by VitalCare from time-to-time, which Franchisees and VitalCare apply in the performance of Procedures (defined below) and/or in the provision of Services (defined below) hereunder, and (ii) any other procedures mutually agreed upon by Client, Franchisees, and VitalCare.

 

(o)                                 “Territory” means the United States of America.

 

2.                                      PAYER MANAGEMENT.

 

(a)                                 VitalCare, on behalf of Franchisees, shall manage the billing and collections from each Payer for Products purchased by Franchisees in accordance with the following:

 

(i)                                     [***]

 

(ii)                                  [***]

 

(iii)                               [***]

 

(iv)                              [***]

 

(v)                                 [***]

 

(vi)                              [***]

 

(vii)                           [***]

 

(viii)                        [***]

 

(ix)                              [***]

 

(x)                                 [***]

 

(xi)                              [***]

 

(xii)                           [***]

 

(xiii)                        [***]

 

(xiv)                       [***]

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

(b)                                 VitalCare and Franchisees represent and warrant that the billing and collection procedures set forth in this Agreement (“Procedures”) comply with, and that the Procedures and Services (defined below) shall be performed and provided in compliance with, all applicable Laws and with each Payer contract.

 

(c)                                  To the extent that Franchisees, or VitalCare, on behalf of Franchisees, are unable or unwilling to perform any of the Procedures and/or provide any of the Services to Client, VitalCare, on behalf of Franchisees, will immediately inform Client in writing.  VitalCare and Franchisees recognize that Client is relying on their performance of the Procedures and provision of the Services hereunder.  VitalCare and Franchisees will make commercially reasonable efforts to assist Client in connection with the Products or any related issues that arise, and VitalCare, on behalf of Franchisees, will keep Client fully informed regarding all material issues that arise in connection therewith.

 

(d)                                 Neither the Procedures nor the Services shall include Product-related marketing or sales.  Without limiting the generality of the foregoing, VitalCare and Franchisees each acknowledge and agree that neither it, nor any of its Representatives, shall engage in any act that is intended to, or may appear to, push, convince, drive, or otherwise persuade a patient who is not yet committed to implantation to move forward with or otherwise undergo implantation.  VitalCare and Franchisees each acknowledge that Client may provide guidelines concerning this matter to VitalCare and Franchisees from time to time, and VitalCare and Franchisees each agree to adhere to such guidelines.

 

3.                                      OBLIGATIONS OF VITALCARE AND FRANCHISEES.

 

(a)                                 VitalCare and Franchisees shall:

 

(i)                                     Comply with all Payer contracts and all Laws applicable to VitalCare and/or Franchisees, as applicable, in connection with the Procedures and the Services.

 

(ii)                                  Perform the Procedures and Services: (A) in accordance with Standard Operating Procedures mutually agreed upon by Client, Franchisees, and VitalCare, (B) with the same degree of professional care and diligence as Franchisees and VitalCare perform similar procedures and services for their similarly situated other clients, and (C) in a workmanlike, diligent, and professional manner, and in compliance with industry standards.

 

(iii)                               Possess, maintain and comply with all licenses, registrations, listings, clearances, approvals and consents as required by applicable Law or contract to be held or maintained by Franchisees and/or VitalCare, as applicable, for the performance of the Procedures and the provision of the Services by Franchisees and/or VitalCare, on behalf of Franchisees.

 

(iv)                              Maintain all documents and records created by Franchisees and/or VitalCare, on behalf of Franchisees, in performance of the Procedures and the Services and maintain complete and accurate records of all transactions related to the conduct of business under this Agreement, all for such periods as are required to comply with applicable Laws, and Franchisees and/or VitalCare, on behalf of Franchisees, shall provide copies to Client as Client may request from time to time.

 

(v)                                 Be responsible for all of its own personnel and for the payment of their compensation, including, if applicable, withholding of income taxes, and the payment and applicable withholding of social security and other payroll taxes, unemployment insurance, workers’ compensation insurance payments and disability benefits.

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

(vi)                              Promptly after becoming aware of any investigation, inspection, directive, order or inquiry by or from any Regulatory Authority directly relating to any Product, notify Client thereof describing the matter in reasonable detail.

 

(vii)                           Report each Reportable Event within one (1) business day of becoming aware of the Reportable Event.  Franchisees and/or VitalCare, on behalf of Franchisees, shall directly email each Reportable Event to Client’s Pharmacovigilance at [***], with a copy to [***], or shall report each Reportable Event to such other e-mail address or in such other manner as Client may designate to Franchisees and/or VitalCare in writing from time to time.  Information reported by Franchisees and/or VitalCare, on behalf of Franchisees, shall include, to the extent available: patient identifiers (such as date of birth or initials), reporter (including reporter name and contact information), Product information, lot number on the Product pack, and a description of the Reportable Event.

 

(viii)                        Maintain a secure database of all patient information.  Prior to disclosing any patient information to Client, Franchisees and VitalCare, on behalf of Franchisees, shall first, to the extent required by Law, obtain from the patient a valid, unrevoked, authorization that permits disclosures to Client in accordance with applicable standards set forth in privacy rules promulgated pursuant to the Administrative Simplification provisions of the Health Insurance Portability and Accountability Act of 1996 and Subtitle D of the Health Information Technology for Economic and Clinical Health Act, each as amended, and the regulations promulgated thereunder (collectively, “HIPAA”).  Franchisees and VitalCare, on behalf of Franchisees, shall make available to Client the information that Client may reasonably request from time to time.  Franchisees and VitalCare acknowledge that HIPAA is not intended to disrupt or discourage disclosure of PHI by a covered entity to a person subject to the jurisdiction of the Food and Drug Administration (“FDA”) with respect to an FDA-regulated product or activity for which that person has responsibility, for the purpose of activities related to the quality, safety or effectiveness of such FDA-regulated product or activity, subject to the minimum necessary standard.

 

(ix)                              Obtain and maintain all provider or supplier agreements and numbers necessary for the submission by VitalCare, on behalf of Franchisees, of claims to Payers.

 

(x)                                 Hire or otherwise engage sufficient numbers of employees, contractors, agents, and/or other Representatives possessing the requisite education, skill, competence and experience, to perform the Procedures and the Services set forth herein and to fulfill  VitalCare’s and Franchisees’ obligations under this Agreement.

 

(xi)                              Maintain quality assurance procedures in accordance with applicable standards established by the profession and/or industry and applicable Law, and as mutually agreed to by Client, VitalCare and Franchisees in writing.

 

(b)                                 VitalCare and Franchisees each represent and warrant during the term of this Agreement that: (i) each Franchisee currently has, and will maintain during the Term of this Agreement, a payer agreement or similar arrangement with each Payer pursuant to which such Franchisee is authorized to bill and collect for the Product, and the Payer is obligated to reimburse claims for the Product; (ii) billing and collecting from each Payer for the Product does not violate any Law or Payer agreement or similar arrangement with any Payer; and (iii) VitalCare is authorized to bill and collect for Product on behalf of each Franchisee.

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

(c)                                  In the event that VitalCare and/or Franchisees receive a notice from any Regulatory Authority regarding its obligations pertaining to Laws and/or applicable professional standards that have a material adverse effect on its ability to perform the Procedures or provide the Services hereunder, VitalCare and/or Franchisees, as applicable, shall notify Client promptly and provide Client with any non-confidential documentation reasonably related to such notice.

 

(d)                                 VitalCare and Franchisees each represent and warrant that they and any person or entity employed or engaged by them, including, without limitation, their employees, contractors, agents, and other Representatives who will perform the Procedures and/or provide Services in connection with this Agreement (collectively, “Personnel”) are not currently:

 

(i)                                     excluded, debarred, suspended or otherwise ineligible to participate in federal health care programs as defined in 42 U.S.C. §1320-7b or in federal procurement or non-procurement activities as defined in Executive Order 12689 (collectively, “Ineligible”);

 

(ii)                                  debarred pursuant to the Generic Drug Enforcement Act of 1992, 21 U.S.C. §335(a), as amended, or any similar state law or regulation (“Debarred”);

 

(iii)                               excluded by the Office of Inspector General pursuant to 42 U.S.C. §1320a-7, et seq. or any state agency from participation in any federal or state health care program as defined in 42 U.S.C. §1320a-7 and 42 U.S.C. §1320a-7b (“Excluded”); and/or

 

(iv)                              otherwise disqualified or restricted by the FDA pursuant to 21 CFR §312.70 or any other regulatory authority (“Disqualified”).

 

(e)                                  VitalCare and Franchisees each represent and warrant that they will not utilize any Ineligible, Debarred, Excluded or Disqualified Personnel to perform the Procedures or provide any Services hereunder.  During the Term, if VitalCare, Franchisees or any Personnel becomes Ineligible, Debarred, Excluded or otherwise Disqualified (“Change in Status”), VitalCare or Franchisees, as applicable, shall notify Client of the Change in Status, in writing, as soon as the Change in Status is known, or, by exercising reasonable diligence would have been known, but in no event later than five (5) business days of the date of the Change in Status.  Upon receipt of such notice with respect to a Change in Status of VitalCare or Franchisees, as applicable, or if Client becomes aware of any Ineligibility, Debarment, Exclusion or Disqualification of VitalCare or Franchisees, as applicable, Client shall have the right to terminate this Agreement immediately and shall retain all claims, causes of action, defenses, and other rights that Client may have at law or in equity.  Upon receipt of such notice with respect to a Change in Status of Personnel, or if Client becomes aware of any Ineligibility, Debarment, Exclusion or Disqualification of any Personnel, VitalCare or Franchisees, as applicable, shall promptly remove and replace such Personnel with qualified Personnel and shall notify Client promptly of such removal and replacement.  VitalCare and Franchisees each represent and warrant that it has no actual knowledge of any conduct for which VitalCare, Franchisees or Personnel could be Ineligible, Debarred, Excluded or Disqualified.

 

(f)                                   Neither VitalCare nor Franchisees shall make any changes in any manner whatsoever or provide supplemental information to any descriptive, educational, or other Product-related materials, including, but not limited to, labels, advertising, educational materials, or other written materials (collectively, “Materials”) supplied by Client without the prior written authorization of Client.  Neither VitalCare nor Franchisees shall distribute any Materials created or developed by VitalCare and/or Franchisees or any third party without the prior written authorization of Client, unless VitalCare and/or Franchisees are required to do so in accordance with applicable Law.  VitalCare and Franchisees shall comply with all Laws that govern the distribution or utilization of all Materials.  In the event that

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

VitalCare and/or Franchisees violate any of the foregoing provisions, and/or if VitalCare and/or Franchisees incorporate all or any portion of the content of the Materials into written, oral, graphic or other material or presentation relating to or mentioning any Product or otherwise without the prior written consent of Client, Client hereby specifically disclaims any liability to VitalCare and Franchisees and to any other party for any damages, claim, penalty or judgment in connection with such Material or presentation, and VitalCare and Franchisees shall indemnify and hold Client harmless from any and all costs, expenses, damages, judgments and liabilities (including attorney’s fees) incurred by or rendered against Client and arising as a result of such action by VitalCare and/or Franchisees, as applicable.

 

(g)                                  In the event that: (i) any Regulatory Authority issues a request or directive or orders that the Product be recalled or retrieved, (ii) a court of competent jurisdiction orders that the Product be recalled or retrieved, or (iii) Client reasonably determines that the Product should be recalled, retrieved or a “dear doctor” letter is required relating to restrictions on use of the Product, Franchisees and/or VitalCare, on behalf of Franchisees, will provide Client with any reasonable assistance requested by Client in connection with the coordination of returning the Product to Client.

 

(h)                                 Neither VitalCare nor Franchisees shall at any time do or permit any act to be done which may reasonably be expected to impair the rights of Client in Client’s name, trade names, service name and any other names for which Client has rights under common law or for which application has been made, or may be made during the Term of this Agreement, to the applicable Regulatory Authority for recognition as a registered trademark or service mark of Client or any of the Products or other products manufactured by Client (collectively, “Client’s Marks”).  Neither VitalCare nor Franchisees shall obtain or assert any claim to any patent, copyright or trademark protection relating to the Product or Client’s Marks (whether owned by Client or licensed to Client), and any rights so obtained shall be immediately transferred to Client.  VitalCare and Franchisees shall advise Client of any conflict of which it becomes aware between Client’s Marks and the name, trademarks or trade names of any third party.

 

(i)                                     VitalCare and Franchisees each represent and warrant that the execution of this Agreement and the Exhibits attached hereto by it and its performance of its obligations hereunder or thereunder will not conflict with, result in the breach of, or constitute a default under, any applicable Law or any agreement to which VitalCare, Franchisees or their Representatives are parties, or by which VitalCare, Franchisees or their Representatives is or may be, bound.

 

(j)                                    VitalCare and Franchisees each represent and warrant that no consent, approval, order of authorization of, or registration, qualification designation, declaration or filing with, any federal, state or local government authority is required in connection with the consummation by Franchisees or by VitalCare, on behalf of Franchisees, of the transactions contemplated by this Agreement.

 

(k)                                 VitalCare and Franchisees each represent and warrant that it currently does not have, and during the Term of this Agreement shall not have, any financial relationship, through compensation, investment interest, or otherwise, with any third-party health care provider who is authorized or otherwise in a position to order or purchase the Product and/or provide clinical services, including, but not limited to physical therapy, related to the Product.

 

(l)                                     Notwithstanding anything to the contrary herein, VitalCare and Franchisees shall under no circumstances provide Client any documents or records to the extent VitalCare or Franchisees, as applicable, is prohibited from doing so by applicable Law.

 

(m)                             In the event that Franchisees and/or VitalCare, on behalf of Franchisees, receives written notification of a need for a patient refund (“Patient Refund Notification”) and/or written notification of a request for recoupment from a Payer (“Payer Recoupment Notification”), Franchisees or VitalCare, on

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

behalf of Franchisees, shall forward such Patient Refund Notification or Payer Recoupment Notification, as applicable, to Client within two (2) business days of receipt, and shall provide to Client all information reasonably requested by Client to assess the appropriateness of the amount set forth in the Patient Refund Notification or Payer Recoupment Notification, as applicable.

 

(n)                                 VitalCare and Franchisees each represent and warrant that each will maintain an agency relationship with the other throughout the Term of this Agreement such that VitalCare is authorized to bill and collect for products and services on behalf of Franchisees, including, but not limited to, Products.

 

(o)                                 VitalCare will transmit purchase orders for Product to Client by mutually agreeable electronic means, including facsimile or phone.  If orders for Product are placed by facsimile or phone, they will be placed to a mutually determined facsimile or telephone number.  All orders for Product are subject to acceptance by Client in its sole discretion.  Client will, within a reasonable time after receipt of an order from VitalCare, inform VitalCare whether such order has been accepted on the terms contained therein.

 

(p)                                 VitalCare, on behalf of Franchisees, shall communicate the status of each case and provide a summary of communications with each Payer to the Product Support Team on a weekly basis, and VitalCare will provide Client and the Product Support Team with data and reports in a format and schedule to be mutually agreed by VitalCare and Client (collectively, the “Services”).

 

(q)                                 VitalCare, on behalf of Franchisees, shall submit to Client each explanation of benefits (“EOB”) received from each Payer within one (1) business day of receipt from the Payer.

 

4.                                      OBLIGATIONS OF CLIENT.

 

(a)                                 Client shall:

 

(i)                                     Comply with all Laws applicable to the Products as they relate to Client’s obligations hereunder.

 

(ii)                                  Possess, maintain and comply with all licenses, registrations, listings, clearances, approvals and consents as required by applicable Law or contract to be held or maintained by Client in relation to the Products.

 

(iii)                               Reasonably promptly after becoming aware of any investigation, inspection, directive, order or inquiry by or from any Regulatory Authority that involves or relates to one or more Products, or other matter that would reasonably be expected to affect Franchisees and/or VitalCare or its business, notify Franchisees and/or VitalCare, as applicable, describing the matter in reasonable detail.

 

(iv)                              In the event that Client receives a Payer Recoupment Notification from Franchisees or from VitalCare, on behalf of Franchisees, Client shall request from Franchisees and/or VitalCare, on behalf of Franchisees, all information reasonably necessary for Client to assess the appropriateness of the amount set forth in such Payer Recoupment Notification, and upon receipt of such information from Franchisees and/or VitalCare, on behalf of Franchisees, Client shall pay to the Franchisees all undisputed amounts requested by Payer in the Payer Recoupment Notification.

 

(b)                                 CLIENT DOES NOT MAKE ANY WARRANTY OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, AND SPECIFICALLY DISCLAIMS ALL

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

IMPLIED WARRANTIES, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

(c)                                  Client represents and warrants that, to the best of its knowledge, the execution of this Agreement and the Exhibits attached hereto by it and its performance of its obligations hereunder or thereunder will not conflict with, result in the breach of, or constitute a default under, any applicable Law or any agreement to which Client or its Representatives are parties, or by which Client or its Representatives is or may be, bound.

 

(d)                                 Client will sell to Franchisees the Product indicated on any purchase order provided by VitalCare or a Franchisee and accepted by Client at the [***], subject to adjustment pursuant to Section 2(a)(i).  There are no minimum or maximum order requirements.

 

(e)                                  Client will ship Product purchased by a Franchisee to Franchisee’s Customer on a drop-shipment basis directly from Client’s finished goods distribution location.  Shipment of Product will be F.O.B. Customer so that it reaches its destination on or prior to the delivery dates requested in the purchase order accepted by Client.  Risk of loss [***] to Product purchased by Franchisee will pass upon delivery to the Customer identified in the order.  If a delivery of an order is delayed beyond the requested delivery date and, after all reasonable efforts are made by Client to arrange for an alternate delivery arrangement, Franchisees or VitalCare may cancel the purchase order without penalty, except to the extent that such delay is due to the negligence or misconduct of Franchisees or VitalCare.  Client will confirm receipt of purchase orders for Product within one (1) business day of purchase order receipt.  Client will use commercially reasonable efforts to fill [***]% of all orders from Franchisees and will bear any additional expenses, including premium freight charges, differential cost of substitutions, and special delivery charges associated with fulfilling such obligation.

 

(f)                                   Client will invoice Franchisees for Product on the date such Product is shipped at the [***] (“Initial Invoice”).  Upon Client’s receipt of the EOB from VitalCare, on behalf of Franchisees, Client shall issue a final invoice to VitalCare (“Final Invoice”).  In the event that the EOB shows that reimbursement from the Payer is different than the amount stated on the Initial Invoice, Client will issue a credit or debit for the difference on the Final Invoice.

 

5.                                      OBLIGATIONS OF THE PARTIES.

 

(a)                                 Notwithstanding the generality of any provision herein, each party shall maintain all federal, state and local registrations necessary to comply with this Agreement and will immediately notify the other parties of any denial, revocation or suspension of any such registration.  Each party will comply with all Laws and professional standards applicable to performance of its obligations under this Agreement, including, without limitation, (i) Drug Quality and Security Act, (ii) federal and state Food, Drug and Cosmetics Acts; (iii) federal and state Anti-kickback laws; (iv) guidelines of The Joint Commission; (v) federal, state or local laws relating to billing or other sales practices; (vi) applicable provisions of Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veteran’s Readjustment Assistance Act, and applicable regulations; and (vii) HIPAA.  Additionally, each party will take all necessary precautions to prevent Product from being possessed, used, handled, distributed or sold by those who may not lawfully possess, use, handle, distribute or sell Product, and each party will fully comply, as applicable, with all Laws regarding manufacturing, possession, use, distribution, sale and safe handling of Product.

 

(b)                                 Each party shall comply with all Laws, including reporting or reflecting discounts, rebates and other price reductions, pursuant to 42 USC §1320a-7b(b)(3)(A) on cost reports, invoices or

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

claims submitted to federal or state healthcare programs, retaining invoices and related pricing documentation and making them available on request as required.

 

(c)                                  Client, VitalCare and Franchisees hereby each represent and warrant that with respect to their respective obligations hereunder, including but not limited to those Services performed by VitalCare on behalf of Franchisees: (i) such Services are bona fide, legitimate, and reasonable; (ii) neither the Services nor any other obligations hereunder are intended to serve, either directly or indirectly, as a means of Franchisees or VitalCare marketing or selling the Product, notwithstanding that Client may utilize deliverables resulting from the Services, such as data reports, for its own marketing; (iii) neither the Services nor any other obligations hereunder are intended to diminish the objectivity or professional judgment of, or to interfere with the objectivity or professional discretion of any health care professional; (iv) neither the Services nor any other obligations hereunder involve the counseling or promotion of any off-label use of the Product or a business arrangement or other activity that violates any applicable laws; (v) the Services Fee, the purchase price of the Product, and the Non-Payer Collections, individually and collectively, are not intended in any way as remuneration for referrals or for other business generated; (vi) the Services Fee, the purchase price of the Product, and the Non-Payer Collections, individually and collectively, represent fair market value for the item or service, respectively, based on arms-length negotiations; and (vii) the Services Fee, the purchase price of the Product, and the Non-Payer Collections paid pursuant to this Agreement are not intended in any way as payments related to clinical practice guidelines or clinical practice guideline activities and have not been negotiated or discussed between the parties in connection with any such clinical practice guidelines or clinical practice guideline activities.

 

6.                                      COMMERCIAL TERMS.

 

(a)                                 As full consideration for the Services, Client will pay VitalCare the fee set forth on Exhibit C (the “Services Fee”), which Services Fee will be invoiced monthly by VitalCare for cases paid within that month, unless otherwise specified on Exhibit C.  Invoices shall include all data reasonably requested by Client. If Client reasonably disputes any portion of any data on which the invoice is based, Client shall provide notice of its dispute in writing, which notice shall include the reason for the dispute.  Client, Franchisees, and VitalCare shall in good faith attempt to reconcile any disputed data.

 

7.                                      CONFIDENTIAL INFORMATION.

 

(a)                                 VitalCare and Franchisees shall not (except as required in the performance of the Procedures and/or Services hereunder or as provided in this Section 7) disclose any Confidential Information of Client or use Client’s Confidential Information except in the performance of the Procedures and/or Services to or for the benefit of Client.  The fact that Client is a customer of VitalCare and Franchisees is not Confidential Information of Client.

 

(b)                                 Client shall not (except as required in the performance of its obligations hereunder or as provided in this Section 7) disclose or use any Confidential Information of VitalCare or Franchisees.

 

(c)                                  Franchisees may disclose Client’s Confidential Information and Client may disclose Franchisees’ and VitalCare’s Confidential Information, to their respective Representatives who have a need to know in connection with their respective obligations hereunder and each party’s monitoring and administration thereof.  Each party hereto, in advance of any disclosure, shall inform its Representatives to whom the other party’s Confidential Information is proposed to be disclosed of the restrictions on disclosure and use thereof contained in this Section 7 and such party shall cause its Representatives to agree (for the benefit of the other parties) to be bound by the terms of this Section 7.  Notwithstanding the foregoing, each party hereto shall be responsible and liable for any use or disclosure by its

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

Representatives of the other parties’ Confidential Information in violation of the restrictions thereon set forth in this Section 7.

 

(d)                                 If any party (with respect to the other parties’ Confidential Information) is compelled or requested to disclose the same by court or Regulatory Authority order, subpoena, interrogatory, request for admission, demand or other similar process of Law, such disclosure shall be permitted; provided, however, that the receiving party shall promptly notify the disclosing party of the existence and terms of such legal process and provide the disclosing party a copy of the demand or request, and reasonably assist (at the disclosing party’s cost and expense) the disclosing party’s efforts to obtain a protective order or such other relief as may be available to prevent or limit such disclosure.  Notwithstanding the foregoing, VitalCare and Franchisees each understand and acknowledge that the confidentiality requirements set forth in this Section 7 shall not apply to any filings or other disclosures required by applicable federal, state and local laws, rules and regulations governing Client, The Nasdaq Stock Market or generally accepted accounting principles, including, without limitation, the Securities Act of 1933, the Securities Exchange Act of 1934, each as amended, and any state “blue sky” laws”.  To the extent that VitalCare and/or Franchisees request confidential treatment of certain terms and conditions of this Agreement, Client shall use commercially reasonable efforts to seek confidential treatment of such identified terms and conditions to the extent permitted by Law, including, but not limited to, SEC guidance, in the opinion of Client’s outside counsel.

 

(e)                                  The confidentiality covenants of this Section 7 shall remain in effect while this Agreement is in effect and for a period of ten (10) years thereafter or, if a longer period is required by Law, so long as required by Law.

 

(f)                                   Each of the parties acknowledges that its breach of this Section 7 may cause irreparable harm to the other parties which cannot be adequately compensated by monetary damages.  Accordingly, in the event of a breach or default under this Section 7 by a receiving party, the disclosing party may be entitled to seek specific performances by, or to obtain injunctive or other equitable relief against, the receiving party, without the necessity of posting bond or other surety, in addition to all other remedies available at law or in equity.

 

8.                                      AUDIT AND INSPECTION.

 

(a)                                 VitalCare and Franchisees shall provide to Client the Standard Operating Procedures, practices and other procedures (which shall include those procedures mutually agreed upon by the parties) to be employed by Franchisees, or by VitalCare, on behalf of Franchisees, in performing their obligations under this Agreement, each of which shall be subject to Client’s review and the approval of the parties prior to implementation by Franchisees and/or VitalCare, as applicable.  Any changes thereto also shall be subject to Client’s review and the approval of the parties prior to implementation by Franchisees and/or VitalCare, as applicable.  Upon request in order to meet Client’s obligations on internal controls and financial reporting, including Section 404 of the Sarbanes-Oxley Act, VitalCare and Franchisees shall provide to Client or its auditors documentation supporting that (i) an arrangement exists between VitalCare and the Payers and/or between Franchisees and the Payers regarding reimbursement for the Products, (ii) collectability is reasonably assured and (iii) the price is fixed or determinable.

 

(b)                                 During the Term of this Agreement and for a period of three (3) years after its expiration or termination, Client may, upon reasonable advance written notice and during regular business hours, audit any records of VitalCare and/or Franchisees associated with this Agreement (and Services Fee associated therewith).  Such records may include, without limitation, claims, communications to and from

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

Payers, invoice records, invoices from third parties, contracts with third parties (including, but not limited to, agreement or other arrangements with Payers), and payments relating to this Agreement.  The audit may be conducted either directly by Client or by a Representative of Client, after providing at least five (5) business days of notice to Franchisees and/or VitalCare, as applicable.

 

(c)                                  Notwithstanding anything to the contrary herein, if an audit is in response to an inquiry by any Regulatory Authority or other governmental entity, then during the Term of this Agreement and for a period of five (5) years after termination or expiration of this Agreement, VitalCare and Franchisees shall allow Client access to VitalCare’s and Franchisees’ records relating to its performance of its obligations pursuant to this Agreement. The scope of such audit shall be such as is reasonably appropriate to allow Client to fully and accurately respond to any such inquiry from a Regulatory Authority or other governmental entity.  The audit may be conducted either directly by Client or by a Representative of Client.

 

9.                                      LEGAL RELATIONSHIP; STANDARD OF CARE; LOSS LIMITATIONS; AND INDEMNITY.

 

(a)                                 The relationship between VitalCare, Franchisees and Client is that of independent contractors.  Nothing contained herein shall be construed as creating any agency, partnership, joint venture or other form of enterprise, employment or fiduciary relationships between the parties, and no party shall have, or hold itself out as having, authority to contract for or bind the other parties in any manner whatsoever, unless otherwise set forth in this Agreement or the agreement between VitalCare and Franchisees that authorizes VitalCare to bill and collect for products and services on behalf of Franchisees.

 

(b)                                 In performing its obligations hereunder, Franchisees and VitalCare, on behalf of Franchisees, shall be responsible for and comply with all of its express obligations and agreements contained herein.

 

(c)                                  Without limiting the generality of the foregoing, in no event shall Franchisees or VitalCare, on behalf of Franchisees, have liability for any loss or damage attributable to events, circumstances or conditions which constitute a Force Majeure.  Notwithstanding the foregoing, in the event that Franchisees and/or VitalCare, on behalf of Franchisees, anticipates delay, or claims to be delayed, by reason of an event of Force Majeure, Franchisees and/or VitalCare, as applicable, shall promptly notify Client in writing thereof.  The notice shall contain the nature of the claimed event of Force Majeure, the date of commencement of the event, and the anticipated date on which Franchisees and/or VitalCare, as applicable, shall resume the provision of Procedures and Services. VitalCare and Franchisees shall maintain a disaster recovery plan, and shall implement such plan in the event of Force Majeure.

 

(d)                                 NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT, THE PARTIES HERETO SHALL NOT BE LIABLE TO THE OTHERS FOR CONSEQUENTIAL (INCLUDING LOST PROFITS), INDIRECT, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (WHETHER OR NOT CONTEMPLATED OR FORESEEABLE), WHETHER A CLAIM THEREFOR IS BROUGHT AT LAW OR IN EQUITY AND REGARDLESS OF WHETHER ANY CLAIM THEREFOR IS BASED UPON STATUTORY, CONTRACT, TORT, COMMON LAW OR OTHER PRINCIPLES.

 

(e)                                  VitalCare and Franchisees each agree, jointly and severally, to indemnify, defend and save Client harmless from and against any and all claims, injuries, disabilities, losses, fines, penalties, costs, expenses (including attorneys’ fees), damages or liabilities (“Claims”) incurred by Client arising

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

from or in connection with: (i) any negligent or willful act or  omission by VitalCare, Franchisees or their Representatives in the performance of their obligations under this Agreement; (ii) any misrepresentation or breach of the representations made by VitalCare or Franchisees in this Agreement; (iii) any violation of any Law; (iv) any breach or alleged breach of this Agreement by VitalCare and/or Franchisees or their employees, contractors, or other agents; or (v) damage to, or destruction of any property or injury (including death) that Client, any of its employees, or any other person may suffer or sustain as a result of any act or omission of VitalCare and/or Franchisees or their employees, contractors, or other agents.  For any such Claims, VitalCare and Franchisees each agree to release and waive, and hereby releases and waives, all rights of subrogation against Client possessed by VitalCare’s and/or Franchisees’ insurers, as applicable.

 

(f)                                   Client agrees to indemnify, defend and save VitalCare and Franchisees harmless from and against any and all claims, injuries, disabilities, losses, fines, penalties, costs, expenses (including attorneys’ fees), damages or liabilities (“Claims”) incurred by VitalCare and/or Franchisees arising from or in connection with: (i) any negligent or willful act or omission by Client or its Representatives in the performance of its obligations under this Agreement; (ii) any misrepresentation or breach of the representations made by Client in this Agreement; (iii) any violation of any Law; (iv) any breach or alleged breach of this Agreement by Client or its employees, contractors, or other agents; or (v) damage to, or destruction of any property or injury (including death) that VitalCare, Franchisees, or any of their employees, or any other person may suffer or sustain as a result of any act or omission of Client or its employees, contractors, or other agents.  For any such Claims, Client agrees to release and waive, and hereby releases and waives, all rights of subrogation against VitalCare and/or Franchisees, as applicable, possessed by Client’s insurers.

 

10.                               TERM AND TERMINATION.

 

(a)                                 Unless sooner terminated in accordance with this Agreement, the term of this Agreement shall commence on the Effective Date and end on April 1, 2019 (the “Initial Term”).  Thereafter, Client may, in its sole discretion, renew this Agreement for one (1) or two (2) successive twelve (12) month periods (each a “Client Renewal Term”), unless, at least ninety (90) days prior to the expiration of the Initial Term or applicable Client Renewal Term then in effect, Client notifies VitalCare or Franchisees in writing of its intent not to renew this Agreement.  In the event that this Agreement remains in effect fifty-four (54) months following the Effective Date, this Agreement shall automatically renew for successive twelve (12) month periods (each a “Mutual Renewal Term”), unless, at least one hundred eighty (180) days prior to the expiration of the applicable Mutual Renewal Term then in effect, Client or VitalCare, as applicable, notifies the other party in writing of its intent not to renew this Agreement.  Collectively, the Initial Term and each Client Renewal Term and each Mutual Renewal Term are referred to as the “Term”).

 

(b)                                 If VitalCare believes that Client has breached any provision of this Agreement, or if Client believes that VitalCare or Franchisees has breached any provision of this Agreement, and such party desires to terminate this Agreement because of such breach, such party (“Aggrieved Party”) shall give written notice of such intent to the breaching party (“Breaching Party”) and shall grant the Breaching Party thirty (30) days in which to remedy or cure the cause for termination.  During such period, the parties shall make a good-faith effort to assist each other to remedy or cure the breach.  If the breach is not remedied, cured or waived by the end of such period, then the Aggrieved Party may terminate this Agreement, effective as of the last day of such 30-day period, by giving notice of such termination to the Breaching Party.

 

(c)                                  In addition to other available remedies, VitalCare or Client may terminate this Agreement immediately for cause upon written notice to the other party upon the other party’s or Franchisees’: (i)

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

filing an application for or consenting to appointment of a trustee, receiver or custodian of its assets; (ii) having an order for relief entered in Bankruptcy Code proceedings; (iii) making a general assignment for the benefit of creditors; (iv) having a trustee, receiver, or custodian of its assets appointed unless proceedings and the person appointed are dismissed within thirty (30) days; (v) insolvency within the meaning of Uniform Commercial Code Section 1-201 or failing generally to pay its debts as they become due within the meaning of Bankruptcy Code Section 303(h)(1), as amended; or (vi) certification in writing of its inability to pay its debts as they become due (and any party may periodically require the other parties’ to certify their ability to pay its debts as they become due).

 

(d)                                 In addition to the termination rights set forth above, Client also may terminate this Agreement for any reason or no reason at all upon sixty (60) days’ written notice to VitalCare; provided that Client may terminate this Agreement immediately upon the termination or expiration of its agreement with the Product Support Team.

 

(e)                                  In addition to the termination rights set forth above, VitalCare also may terminate this Agreement for any reason or no reason at all upon one hundred eighty (180) days’ written notice to the other parties; provided that VitalCare may terminate this Agreement upon ninety (90) days’ written notice to the other parties in the event that [***] of the claims for Product purchased from Client that VitalCare submits for reimbursement in a [***] have been denied for payment by the Payers and are not subject to further appeal.

 

(f)                                   The: (i) obligation of Client to pay Services Fee earned by VitalCare prior to the expiration or effective date of termination of this Agreement; (ii) obligation of Franchisees and VitalCare, on behalf of Franchisees, to remit to Client all payments for the purchase or other reimbursement of Product; and (iii) obligations of each party pursuant to Sections 2, 3(a)(iv), 3(a)(vi), 3(a)(vii), 5(b), 7, 8, 9, this Section 10(e), 10(h), 11, 12, and 13 hereof, shall survive the termination or expiration of this Agreement in accordance with their terms.

 

(g)                                  In the event that VitalCare or Client notifies the other of its intent to terminate this Agreement, Franchisees and VitalCare, on behalf of Franchisees, shall continue to perform the Procedures and provide Services in accordance with the terms and conditions of this Agreement until the effective date of termination.

 

(h)                                 Notwithstanding anything contained herein to the contrary, if any Product is no longer authorized for sale in the United States by the United States Food and Drug Administration (“FDA”), Client shall promptly notify Franchisees and Franchisees’ and VitalCare’s, on behalf of Franchisees, obligation to perform the Procedures and provide Services with respect to such Product shall continue for Product processed or otherwise arranged for by the Product Support Team prior to the effective date of the FDA’s action and for Product processed or otherwise arranged for by the Product Support Team once Product authorization has been reinstated.

 

(i)                                     Upon expiration or termination of this Agreement, Franchisees and VitalCare, on behalf of Franchisees, shall, subject to applicable Laws, provide Client with copies of all Payer information (including, but not limited to, Payer names and reimbursement information) and other information maintained by Franchisees, VitalCare or their Representatives, except for information confidential to Franchisees and Payers, regarding the Procedures performed and the Services provided by Franchisees and/or by VitalCare, on behalf of Franchisees, pursuant to this Agreement (collectively, the “Data”) and reasonably requested by Client.  Franchisees and VitalCare, on behalf of Franchisees, shall use commercially reasonable efforts to provide all such Data to Client within [***] days of the effective date of such expiration or termination and shall use commercially reasonable efforts to provide post-

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

termination transition assistance for [***] days following the effective date of expiration or termination of this Agreement to Client in connection with Client’s new vendor and/or program.

 

11.                               INSURANCE.

 

(a)                                 Client shall maintain during the Term or as otherwise provided in Section 11(c) hereof the following insurance coverage:

 

(i)                                     Commercial general liability insurance, including products liability insurance on Products, which insurance shall be fully sufficient (in terms of coverage and policy limits) to cover bodily injury or death arising from the Products.  Such insurance shall be written on an ISO occurrence form CG 00 01 12 04 (or a substitute form providing equivalent coverage) and shall cover, among other things, bodily injury arising from products-completed operations and liability assumed under an insured contract.  The limits of such insurance shall not be less than $[***] per occurrence.

 

Upon execution of this Agreement and thereafter upon demand, Client shall promptly provide Franchisees with insurance certificates evidencing Client’s compliance with the foregoing insurance requirements.

 

(b)                                 VitalCare and Franchisees each shall maintain during the Term or as otherwise provided in Section 11(c) hereof the following insurance coverage:

 

(i)                                     Worker’s Compensation insurance as required by Law.

 

(ii)                                  Commercial general liability insurance and umbrella insurance, including products liability insurance, having a combined limit of not less than $[***] per occurrence and $[***] annual aggregate.  Such insurance shall be written on an ISO occurrence form CG 00 02 04 13 (or a substitute for providing equivalent coverage) and shall name Client and its Affiliates as additional insureds.

 

(iii)                               Professional Liability insurance, having a combined limit of not less than $[***] per claim and $[***] annual aggregate.

 

(iv)                              Privacy and Security Liability insurance, having a combined limit of not less than $[***] per claim and $[***] annual aggregate.

 

Upon execution of this Agreement and thereafter upon demand, VitalCare and Franchisees each promptly shall provide Client with insurance certificates evidencing its compliance with the foregoing requirements.

 

(c)                                  All insurance required hereunder shall be with insurance companies rated “A-” or better by A. M. Best, and shall not have deductibles or self-insured retentions in excess of $[***].  If any insurance required hereunder is provided on a claims-made basis, then said insurance shall be maintained in full force and effect by the responsible party for at least [***] after the expiration or termination of this Agreement (including any renewals hereunder).

 

12.                               NOTICES

 

Any notice provided for herein shall be given in writing and shall be deemed given to a party at the earlier of: (a) when actually delivered to such party or (b) when mailed to such party by registered or certified U.S. Mail (return receipt requested) or sent by overnight courier, confirmed by receipt, and

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

addressed to such party at the address designated below for such party (or to such other address for such party as such party may have substituted by notice pursuant to this Section):

 

If to Franchisees:

 

Sartins’s Vital Care, Inc.

4300 15th Street, Suite 1

Gulfport, MS 39501

ATTN: Pharmacy Owner

 

Burnham’s Vital Care, LLC

4931 Main Street, Suite B

Moss Point, MS 39563

ATTN: Pharmacy Owner

 

Atticus Group, LLC

276 Nissan Parkway, Building A

Canton, MS 39046

ATTN: Pharmacy Owner

 

If to VitalCare:

 

Vital Care, Inc.

1170 Northeast Industrial Park Road

Meridian, Mississippi 39301

ATTN: General Counsel

 

If to Client:                                                                                 Vericel Corporation

64 Sidney Street

Cambridge, MA  02139

ATTN:  Chief Operating Officer

With a Copy to: Vice President and General Counsel

 

13.                               MISCELLANEOUS.

 

(a)                                 This Agreement constitutes the entire understanding of the parties with respect to the subject matter hereof, and supersedes all other previous or contemporaneous proposals, agreements, statements and understandings (including confidentiality or non-disclosure agreements), whether written or oral.  Subject to the terms and conditions set forth in Exhibit A, this Agreement may not be amended, supplemented or otherwise modified except by an instrument in writing executed by each party hereto and making express reference to this Agreement.  The terms and conditions of this Agreement shall prevail over any contradictory  or inconsistent terms or conditions contained in any unilateral purchase order, acceptance, acknowledgment, agreement, other standard forms or correspondence used by the parties in performing this Agreement.

 

(b)                                 No waiver by any party of any of the provisions of this Agreement shall be effective unless expressly set forth in writing and signed by the party so waiving.  Except as otherwise set forth in this Agreement, no failure to exercise or delay in exercising any right or remedy shall operate or be construed as a waiver thereof; and, no single waiver or partial exercise of a right, remedy, power or

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

privilege hereunder shall preclude any other or further exercise of any other right, remedy, power or privilege.

 

(c)                                  This Agreement shall inure to the benefit of the parties and their permitted successors and assigns.  The rights and obligations under this Agreement may not be assigned to a third party by any party, by merger, consolidation, operation of law or otherwise, without obtaining the prior written consent of the other parties (which consent shall not unreasonably be withheld or delayed).  Notwithstanding the foregoing, any party may assign, without obtaining the consent of the other parties, all or any of the assignor’s rights and obligations of this Agreement: (i) to its Affiliates or (ii) in connection with the sale or transfer (including any by merger, consolidation or operation of law) of all or substantially all of the assignor’s business to which this Agreement pertains; provided, however, that any such assignee shall execute and deliver to the other parties hereto an agreement, in form and substance reasonably satisfactory to the other parties hereto, assuming all of the assignor’s obligations hereunder.  No such assignment or assumption, however, shall relieve the assignor of its obligations hereunder.

 

(d)                                 This Agreement  shall be governed by the internal laws of the Commonwealth of Massachusetts, and shall be construed without giving effect to any rule of construction concerning the party responsible for the drafting thereof.

 

(e)                                  No party shall issue or release any announcement, statement, press release or other publicity or marketing materials relating to this Agreement without the prior consent of the other parties (which consent shall not unreasonably be withheld or delayed); provided, however that Client may identify VitalCare and/or Franchisees as a provider of Services hereunder, and VitalCare and/or Franchisees may identify Client as a customer of Services hereunder, without obtaining the consent of the other parties.  Furthermore, if Client files a copy of this Agreement with any Regulatory Authority or any stock exchange, Client shall notify VitalCare and Franchisees in advance.

 

(f)                                   The parties agree that this Agreement may be duly executed and delivered (i) in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement; and (ii) by facsimile or electronically in PDF format. The parties agree that facsimile or PDF copies of signatures shall have the same effect as original signatures, and this Agreement shall be deemed fully executed and delivered, regardless of whether manually signed copies are exchanged.

 

[SIGNATURE PAGE(S) TO FOLLOW]

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

 

	
 
    	
SARTIN’S VITAL   CARE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Alvin Craig Sartin
    
	
 
    	
Name:
    	
Alvin   Craig Sartin
    
	
 
    	
Its:
    	
Owner
    
	
 
    	
 
    	
 
    
	
 
    	
BURNHAM’S VITAL CARE,   LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John McKinney
    
	
 
    	
Name:
    	
John   McKinney
    
	
 
    	
Its:
    	
Owner
    
	
 
    	
 
    	
 
    
	
 
    	
ATTICUS GROUP, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Illegible
    
	
 
    	
Name:
    	
Illegible
    
	
 
    	
Its:
    	
Owner
    
	
 
    	
 
    	
 
    
	
 
    	
VITAL CARE, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Logan E. Davis
    
	
 
    	
Name:
    	
Logan   E. Davis
    
	
 
    	
Its:
    	
Director   of Franchise Development
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VERICEL CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dominick Colangelo
    
	
 
    	
Name:
    	
Dominick   Colangelo
    
	
 
    	
Its:
    	
President   & CEO
    

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

EXHIBIT A

 

PAYERS

 

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

 

For the above Payers, the [***] shall be [***].

 

The Payers set forth in this Exhibit A may be changed at any time by Client as follows: (a) to add a new payer, upon mutual agreement by Client and VitalCare, and (b) to delete a current Payer, as determined in the sole discretion of Client, upon thirty (30) days prior written notice to VitalCare.

 

Subject to approval by Dohmen Life Science Services, LLC, Client and VitalCare are evaluating whether to add the following new payers to this Exhibit A.  The definitive list and [***] of such payers to be added to Exhibit A shall be mutually agreed in writing by Client and VitalCare:

 

[***]

[***]

[***]

[***]

[***]

[***]

[***]

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

 

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

EXHIBIT B

 

PRODUCTS

 

The term “Products” means the following products, together with all other such products  mutually agreed to by VitalCare and Client:

 

1.              Carticel® (autologous cultured chondrocytes), an autologous chondrocyte implant for the treatment of cartilage defects in the knee

 

2.              MACI (upon approval of the Biologics License Application for MACI submitted by Client), a third-generation autologous chondrocyte implant for the treatment of cartilage defects in the knee

 

21

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[***]”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 24B-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

EXHIBIT C

 

SERVICES FEE

 

As full consideration for the Services, Client will pay VitalCare a Services Fee in the amount of [***] for each patient who is a member of a Payer and has undergone a Product implant for which VitalCare, on behalf of Franchisees, has submitted a claim in accordance with the requirements set forth in this Agreement.  The Services Fee shall be due and payable by Client to VitalCare no later than [***] following receipt by Client of the Services Fee invoice provided by VitalCare to Client.

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