Document:

Exhibit
10.1

 

AGREEMENT
OF SUBLEASE

 

THIS AGREEMENT OF SUBLEASE (this "Sublease"),
made and entered into as of the 8th day of July, 2015, by and between GBG
USA INC., a Delaware corporation, with offices at 350 Fifth Avenue, New York, New York 10118 ("Sublandlord"),
and XCEL BRANDS, INC., a Delaware
corporation, with offices at 475 Tenth Avenue, 4th Floor, New York, New York 10018 ("Subtenant").

 

W I T N E S S E T H:

 

WHEREAS, ESRT 1333 BROADWAY, L.L.C. (successor
in interest to 1333 Broadway Associates, L.L.C.) ("Landlord") leased to Sublandlord certain premises (the "Premises")
in the building commonly known as 1333 Broadway, New York, New York (the "Building"), pursuant to that certain Agreement
of Lease dated September 22, 2009 (the “Original Lease”), as amended by that certain First Amendment of Lease, dated
as of December 15, 2009 (the “First Amendment”), that certain Second Amendment of Lease, dated as of March 31, 2012
(the “Second Amendment”), that certain Third Amendment of Lease, dated as of September 19, 2013 (the “Third Amendment”),
that certain letter agreement dated as of March 9, 2010 (the “First Letter Agreement”), that certain letter agreement
dated as of May 25, 2011 (the “Second Letter Agreement”), that certain letter agreement dated as of June 14, 2011 (the
“Third Letter Agreement”), and that certain Fourth Amendment of Lease, dated December 10, 2014 (the “Fourth Amendment”,
and together with the Original Lease, the First Amendment, the Second Amendment, the Third Amendment, the First Letter Agreement,
the Second Letter Agreement, and the Third Letter Agreement, collectively, the “Lease”); and

 

WHEREAS, Subtenant now desires to sublease
a portion of the Premises consisting of approximately 29,566 rentable square feet comprising the entire tenth (10th)
floor of the Building, as more particularly described in "Exhibit A" which is attached to this Sublease as an integral
part hereof (the "Subleased Premises"), from Sublandlord, and Sublandlord is willing to sublease the Subleased Premises
to Subtenant, upon the terms and conditions hereinafter set forth;

 

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NOW, THEREFORE, in consideration of the foregoing
premises and the mutual covenants and obligations herein contained, the parties hereby agree as follows:

 

1.Subleased Premises. Sublandlord
hereby subleases the Subleased Premises to Subtenant, and Subtenant hereby hires the Subleased Premises from Sublandlord, upon
and subject to the terms and conditions set forth herein, together with Sublandlord’s right under the Lease to use, subject
to Landlord’s consent, shafts in the Building for the purposes set forth in Article 56 of the Lease.

 

2.Term of Sublease. The term of
the sublease (the "Term") provided for under this Sublease shall commence on January 1, 2016 (the “Commencement
Date”), subject to receipt by Subtenant of the Consent (defined below) issued by Landlord following the signing of this Sublease
by Sublandlord and Subtenant, and shall terminate on October 30, 2027 (the "Expiration Date"), unless sooner terminated
as provided herein. Sublandlord shall deliver possession of the Subleased Premises to Subtenant in its "as is" broom
clean condition on the Commencement Date, provided that the Subleased Premises shall be vacant and free of all tenancies and occupancies,
and, to the best of Sublandlord’s knowledge, with the building systems serving the Subleased Premises in good working order,
and Subtenant shall accept such possession. If a fire or other casualty occurs prior to the Commencement Date that renders a material
portion of the Subleased Premises unusable by Subtenant in a commercially reasonable manner or inaccessible and the damage therefrom
is not substantially repaired by the Commencement Date, or it is apparent that such damage will not be repaired by the Commencement
Date, then Sublandlord (to the extent Sublandlord terminates the Lease as to the Subleased Premises) or Subtenant will have the
right to cancel this Sublease effective upon written notice to the other party to that effect at any time prior to Sublandlord's
delivery of the Subleased Premises in substantially the condition required hereby. In the event of such cancellation, Sublandlord
will return to Subtenant any amounts theretofore paid by Subtenant to Sublandlord and neither party shall have any further rights
or obligations hereunder except pursuant to Section 18.

 

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3.Fixed Rent.

 

(a)Subtenant shall pay Sublandlord fixed
rent ("Fixed Rent") for the Subleased Premises, for the period commencing with the Commencement Date and ending on the
final day of the Term, at the rental rates set forth on “Exhibit B” attached hereto and made a part hereof.

 

(b)Notwithstanding anything to the contrary
in the foregoing, Subtenant shall pay the first monthly installment of Fixed Rent upon the signing of this Sublease by Subtenant.

 

(c)The Fixed Rent for any portion of a
calendar month falling within the Term shall be prorated.

 

(d)The Fixed Rent and all other amounts
payable by Subtenant to Sublandlord under this Sublease (such other amounts are hereinafter called "Additional Rent")
shall be paid promptly when due, without notice or demand therefor, and, except as expressly set forth herein, without deduction,
abatement, counterclaim or setoff of any kind for any reason whatsoever.

 

(e)Fixed Rent and Additional Rent shall
be paid in lawful money of the United States by check drawn on a bank which is a member of or clears through the New York Clearing
House Association to Sublandlord at its address set forth in the preamble to this Sublease or at such other address as Sublandlord
may from time to time designate by notice to Subtenant.

 

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(f)Notwithstanding anything to the contrary
contained in this Paragraph 3, provided this Sublease shall be in full force and effect and Subtenant shall not be in default hereunder
beyond any applicable notice and grace periods, the Fixed Rent shall be abated (i) for the first six (6) months of the Term following
the Commencement Date, and (ii) for the six (6) month period following the first (1st) anniversary of the Commencement
Date.

 

4.Additional Rent.

 

(a)Subtenant shall pay to Sublandlord
all payments applicable to the Subleased Premises on account of “Expenses”, "real estate taxes" or any other
item of "Additional Rent" which is required to be paid by Sublandlord, applicable to the Subleased Premises, pursuant
to the terms of the Lease on or before the earlier of the due dates therefor which are set forth in the Lease or in this Sublease.
However, in calculating the Additional Rents due under this Sublease the term “base tax year” shall mean the real estate
taxes for the twelve (12) month period from January 1, 2016 to December 31, 2016 (i.e., the average of the real estate taxes for
the fiscal years ending June 30, 2016 and June 30, 2017), the term "Base Year" as hereinafter set forth for the determination
of Expenses shall mean the calendar year 2016 and “The Tax Percentage” and “The Operating Expense Percentage”
shall mean 50% of the amount by which Sublandlord is required to expend for the “Additional Space” demised pursuant
to the First Amendment (which is the percentage equivalent to the fraction, the numerator of which is 29,566 (i.e., the rentable
square footage of the Subleased Premises) and the denominator of which is 59,132 (i.e., the rentable square footage of the Additional
Space demised pursuant to the First Amendment). Additionally, the term “comparative year”, for purposes of calculating
Expenses, shall mean 2017.

 

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(b)Beginning on the Commencement Date,
Subtenant shall pay Sublandlord for electricity supplied to the Subleased Premises all amounts paid by Sublandlord to Landlord
therefor. It is understood that Landlord's charge for electricity will be measured by a sub-meter and includes an overhead fee
of five percent (5%). Payments on account of electricity shall be made in each case within (10) days after demand. There shall
be no abatement of the electric charge (except to the extent Sublandlord receives such an abatement from Landlord). Subject to
the terms of the Lease, electrical capacity available to the Subleased Premises is not less than an average demand load of eight
(8) watts per useable square foot demand load, exclusive of electricity for the A/C Equipment. To the best of Sublandlord’s
knowledge, Sublandlord represents and warrants that the submeter measuring consumption of electricity in the Subleased Premises
is and shall be in good working order upon the Commencement Date.

 

(c)Except for Additional Rent which is
paid on the first day of each calendar month together with the Fixed Rent pursuant to the Lease, Sublandlord shall give Subtenant
notice of the amount of any Additional Rent which is due hereunder promptly after its receipt of an invoice from Landlord, and
Subtenant shall make the payment to Sublandlord in each case within ten (10) days after the date of such notice.

 

(d)Sublandlord shall have all of the rights
and remedies for the non-payment of Additional Rent as it has under this Sublease for the non-payment of Fixed Rent.

 

5.Subordination to and Incorporation
of Lease, Etc.

 

(a)Obligations. Subtenant confirms
that it has read the Lease and is familiar with all of the terms and provisions set forth therein. Subject to the modifications
and exclusions set forth in this Sublease, the terms, provisions, covenants, stipulations, conditions, rights, obligations, remedies,
agreements and definitions contained in the Lease are incorporated herein by reference and are made a part hereof and shall, as
between Sublandlord and Subtenant (as if they were the "Landlord" and the "Tenant," respectively, under the
Lease and as if the Subleased Premises were the Premises demised under the Lease), constitute the terms of this Sublease as if
herein set forth at length, mutatis mutandis, except to the extent that they do not relate to the Subleased Premises
or are inapplicable, inconsistent with, or modified by the terms of this Sublease, and except as otherwise set forth herein. Subtenant
agrees to observe, carry out, perform and discharge the terms and provisions of the Lease as they relate to the Subleased Premises
to the extent required to be observed, carried out, performed or discharged by the Sublandlord thereunder, except where inapplicable
or inconsistent with the terms of this Sublease. Sublandlord agrees to deliver to Subtenant copies of all communications and notices
relating to the Subleased Premises (except to the extent same contains confidential information or information relating to other
portions of the Premises, in which event, such information may be redacted prior to delivery) promptly after receipt of the same
from Landlord.

 

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(b)Subordination, Etc. Subtenant
hereby agrees that (i) this Sublease is and shall remain in all respects subject and subordinate to the Lease (other than the redacted
portions thereof) and to any matters to which the Lease is or shall be subordinate, (ii) except to the extent otherwise expressly
permitted by this Sublease, Subtenant will occupy the Subleased Premises in accordance with the terms of the Lease, will maintain
the Subleased Premises in accordance with the provisions of the Lease as though it were the "Tenant" thereunder and will
not do or cause to be done, or suffer any act or omit to do, any act which might result in a violation of or a default under any
of the terms, conditions, covenants or agreements of the Lease. Sublandlord hereby represents, warrants and covenants to Subtenant
that Sublandlord shall not modify or amend the Lease in any manner which would reduce Subtenant’s rights (except to a de
minimis extent) or increase Subtenant’s obligations (except to a de minimis extent) hereunder, or voluntarily surrender the
Lease or enter into any termination thereof, without the prior written consent of Subtenant.

 

(c)Conflicting Terms. Except as
otherwise specifically provided herein, in the event that any term and/or condition of this Sublease shall conflict with, or be
inconsistent with, any term and/or condition of the Lease, this Sublease will govern, unless such term and/or condition would constitute
a default under or breach of the Lease, in which case the Lease will govern. Subtenant shall not take or suffer any action which
would constitute a default under, or be a violation of, the Lease.

 

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(d)Excluded Articles. The following
provisions of the Original Lease shall be deemed to be excluded from this Sublease: the recital, Section 2(A), Section 3(C)(v),
Section 4(I), Section 4(R), Item (i) in the first paragraph of Article 5, Section 8(F), Section 13(E), Section 15(E), Article 17(B)
and (C), Section 22(C) (except as set forth in Section (g) below), the last clause of the second sentence and last sentence of
Article 23, Section 27(E), Article 32, the second clause of the second sentence of Article 39 (including the parenthetical clause),
Article 40, Article 53, Article 55 through Article 57, Article 59 (except to the extent Landlord consents to same), Exhibit A-1
through Exhibit C, and Exhibit F. For purposes of this Sublease, (i) Subtenant shall be obligated to provide any termination notice
pursuant to Section 11(B) and Section 14(E), five (5) days prior to the date that Sublandlord is to give notice, and (ii) the reference
to days in Section 8(E) to “Five Hundred Thousand and 00/100 ($500,000.00)” shall be deemed omitted and replaced with
“One Hundred Fifty Thousand and 00/100 ($150,000.00)”.

 

The following provisions of the First Amendment
shall be deemed to be excluded from this Sublease: the recitals, Article 1, Section 2(A), Section 2(B), Section 3(B), Article 4
through Article 8, Exhibit A-1, and Exhibit B. The Second Amendment, the Third Amendment, the Fourth Amendment, the First Letter
Agreement, the Second Letter Agreement and the Third Letter Agreement shall be deemed to be excluded from this Sublease in its
entirety.

 

(e)Termination of Lease. Subject
to the terms and conditions of any non-disturbance agreement entered into between Landlord and Subtenant pursuant to Section 4(R)
of the Lease, in the event that the term of the Lease is terminated prior to the Expiration Date, this Sublease shall automatically
cease and terminate on the date of such termination. In the event of such termination, Sublandlord shall return to Subtenant that
portion of Fixed Rent and Additional Rent paid in advance by Subtenant, if any, pro-rated as of the date of such termination.

 

(f)Entry and Inspection. Sublandlord
and Landlord shall have the right to enter and inspect the Subleased Premises pursuant to the applicable provisions of the Lease.

 

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(g)Services.

 

(i)Subtenant shall be entitled to the
services, utilities and repairs which Landlord is obligated to furnish or make to Sublandlord pursuant to the terms of the Lease,
but Sublandlord shall have no obligation to make any repairs or provide such utilities or services. Sublandlord shall in no event
be liable to Subtenant nor, except to the extent set forth herein, shall the obligations of Subtenant thereunder be impaired, or
the performance thereof be excused, because of any failure or delay on the part of Landlord in furnishing such services or utilities
or in making such repairs unless and to the extent such failure or delay results from a default by Sublandlord under the Lease.
If Landlord shall default in any of its obligations to perform services with respect to the Subleased Premises, Sublandlord will
reasonably assist Subtenant's efforts to obtain such services from Landlord in accordance with Paragraph 12 below. Subtenant shall
have the right to request services directly from Landlord and to make direct payment to Landlord for same. If the obligation of
Sublandlord to pay Fixed Rent and/or Additional Rent under the Lease with respect to the Subleased Premises is actually abated
due to a failure by Landlord to provide services in respect of the Subleased Premises or for any other reason relating to the Subleased
Premises, the Fixed Rent and Additional Rent payable hereunder by Subtenant shall be similarly abated, on a pro-rata basis, during
any such period. Sublandlord agrees to maintain the two (2) 275 ton cooling towers located on the Building roof (which provide
chilled water to the HVAC servicing the Subleased Premises) (the “Water Tower”). If as a result of Sublandlord’s
control of the Water Tower, the HVAC system servicing the Subleased Premises is inoperable for three (3) or more consecutive business
days, then Subtenant shall be entitled to an abatement of Fixed Rent, which abatement shall commence as of the first day after
the expiration of such three (3) day period, as the case may be, and shall be based on the extent of Subtenant’s inability
to utilize the Subleased Premises.

 

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(h)Consents and Notices. In all
provisions of this Sublease (including provisions of the Lease incorporated herein) requiring the approval or consent of Sublandlord,
Subtenant shall be required to obtain the approval or consent of Sublandlord as well as the approval or consent of Landlord. At
the request of Subtenant, Sublandlord shall promptly apply to Landlord for any such approval or consent and Sublandlord will cooperate
with Subtenant and use reasonable efforts, both at Subtenant’s sole expense, in attempting to obtain the consent of Landlord
when such consent is required hereunder or under the Lease. In all provisions of this Sublease (including provisions of the Lease
incorporated herein) requiring that notice be given, Subtenant shall be required to give notice to both Sublandlord and Landlord.
Notwithstanding anything to the contrary set forth in this Sublease, any covenants, representations or other undertakings of Landlord
under the Lease shall not be deemed to be made by, or otherwise constitute obligations of, Sublandlord under this Sublease. Notwithstanding
the foregoing, to the extent (i) Landlord’s consent is not required under the Lease, Sublandlord’s consent shall automatically
be deemed granted, and (ii) to the extent Landlord’s consent has been granted, Sublandlord shall not unreasonably withhold,
delay or condition its consent.

 

(i)Landlord's Consent to Sublease.

 

(i)Sublandlord shall, promptly after
execution of this Sublease by both parties, submit a copy of same to Landlord and shall use reasonable efforts to obtain Landlord's
consent to this Sublease (the “Consent”); provided, however, that Sublandlord shall not be required to make any payments
or commence any action or proceeding in order to obtain the Consent and shall not in any event be liable to Subtenant for any failure
to obtain same (as long as Sublandlord shall have used reasonable efforts as aforesaid to obtain the Consent). Subtenant shall
fully cooperate with Sublandlord in order to obtain the Consent, including, but not limited to, promptly supplying such financial,
business or other information or documentation as Landlord may reasonably request of Sublandlord in connection with this Sublease.
In the event that the Consent is not obtained within forty-five (45) days after the date of this Sublease, either party may terminate
this Sublease at any time prior to the issuance of such Consent by giving written notice of termination to the other party. If
this Sublease is terminated pursuant to the immediately preceding sentence of this Paragraph 5(i)(i), Sublandlord shall promptly
return to Subtenant (A) the first monthly installment of Fixed Rent which was paid by Subtenant pursuant to Paragraph 3(b) above
and (B) the Security Deposit (as hereinafter defined) which was submitted by Subtenant pursuant to Section 19(a) below and, except
as aforesaid or as provided in Section 18 below, neither party shall have any further obligation to the other party under this
Sublease.

 

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(ii)Except as expressly set forth in
the Consent, Landlord's consent to this Sublease shall not be deemed or construed to modify, amend or affect the terms and provisions
of the Lease, or Sublandlord's obligations thereunder, which shall continue to apply to the Premises, including the Subleased Premises,
and the occupants thereof, as if the Sublease had not been made.

 

(iii)Sublandlord shall request that
the Consent include the following provisions, provided Sublandlord shall not be responsible to Subtenant if Landlord shall fail
or refuse to issue a Consent containing same:

 

(A) a non-disturbance provision;

 

(B) a waiver of subrogation from
Landlord in favor of Subtenant;

 

(C) a right to shaft space within
the Building; and

 

(D) a right to signage in the elevator
bank.

 

6.Use of Subleased Premises; Quiet
Enjoyment.

 

(a)Subtenant covenants that it will use
and occupy the Subleased Premises solely for the purposes permitted by Section 1 of the Lease and subject to the restrictions set
forth in said Section 1.

 

(b)As long as Subtenant pays, when due,
all Fixed Rent and Additional Rent due hereunder and performs and observes all of the terms, covenants and conditions of this Sublease,
Subtenant shall have, hold and enjoy the Subleased Premises peaceably and quietly during the Term hereof without hindrance or molestation
by Sublandlord, or any party claiming through or under Sublandlord, subject to the terms and conditions of this Sublease and the
Lease.

 

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7.Improvements. Subtenant shall
make no improvements, alterations or refurbishing of the Subleased Premises (collectively, "improvements") and shall
not install any signs outside the Subleased Premises or in any other common areas of the Building without the prior written consent
of Sublandlord, such consent not to be unreasonably withheld, and Landlord, which shall be granted or denied in accordance with
the terms of the Lease. All Subtenant improvements shall be performed by Subtenant at its sole cost and expense. Subtenant's rights
and obligations with respect to improvements within the Subleased Premises shall be further governed and limited by the relevant
provisions of the Lease. At the request of Subtenant, Sublandlord shall request that Landlord list Subtenant's name in the Building
directory, provided that (a) in no event shall Subtenant’s listings exceed its pro rata share of Sublandlord’s allotted
listings and (b) any charges imposed by Landlord for directory listings shall be paid by Subtenant.

 

8.Default by Subtenant.

 

(a)The following shall constitute events
of default (each an "Event of Default"):

 

(i)if (A) Subtenant shall fail to pay
any Fixed Rent or Additional Rent on the due date thereof and such default shall continue for a period of three (3) business days
after notice by Sublandlord to Subtenant of such default (provided, however, that Sublandlord shall not be required to deliver
such notice more than two (2) times in any twelve (12) month period, it being understood that any further failure to pay any Fixed
Rent or Additional Rent on the due date thereof within such twelve (12) month period shall constitute an immediate Event of Default),
or (B) Subtenant shall fail to comply with any term, provision or covenant of this Sublease or any applicable term, provision or
covenant of the Lease (to the extent incorporated herein by reference), and Subtenant shall fail to remedy such failure within
twenty (20) days after notice from Sublandlord, or if such failure complained of shall be of a nature that the same cannot be completely
cured and remedied within said twenty (20) day period, and Subtenant shall not (1) promptly upon the giving by Sublandlord of such
notice, advise Sublandlord of Subtenant's intention to institute all steps necessary to remedy such situation, (2) promptly institute
and thereafter diligently pursue all steps necessary to remedy the same and (3) effect such remedy within a reasonable time not
to exceed sixty (60) days after the date of the giving of said notice by Sublandlord and in any event prior to such time as would
either (y) subject Landlord, Sublandlord, Sublandlord's agents or any mortgagee or ground lessee to civil or criminal liability
or prosecution for a crime, or (z) cause a default under any applicable mortgage or ground lease;

 

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(ii)if (A) any petition is filed by
Subtenant under any provision of Federal or state bankruptcy laws or other statute whether domestic or foreign involving creditors'
rights or the insolvency of debtors or any such petition is filed against Subtenant and Subtenant fails to secure a dismissal or
stay thereof within thirty (30) days, or (B) Subtenant shall become insolvent or make an assignment for the benefit of creditors,
or (C) a receiver is appointed for all or substantially all of the assets of Subtenant and Subtenant fails to secure a dismissal
or stay thereof within thirty (30) days; or

 

(iii)if Subtenant fails to deliver the
Letter of Credit as required pursuant to Section 19(a).

 

(b)Upon the occurrence of an Event of
Default Sublandlord shall have the right, at its option, to do and perform any one or more of the following, in addition to, and
not in limitation of any other remedy or right permitted it by law, by this Sublease or by the Lease:

 

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(i)terminate this Sublease, in which
event Subtenant shall immediately surrender the Subleased Premises to Sublandlord, but if Subtenant shall fail to do so, Sublandlord
may, without prejudice to any other right or remedy Sublandlord may have, either by law or under this Sublease or otherwise, obtain
possession or rent in arrears or damages for breach of contract, enter upon the Subleased Premises and expel or remove Subtenant
and Subtenant's personal property, with or without force and without being liable to Subtenant, and Subtenant agrees to indemnify
and hold Sublandlord harmless for all losses or damage which Sublandlord may suffer by reason of such termination, whether through
inability to relet the Subleased Premises or through decrease in rent or by damage to the Subleased Premises, or otherwise, or

 

(ii)enter the Subleased Premises and
remove Subtenant and its improvements and personal property therefrom without terminating this Sublease or being liable to Subtenant
in any manner whatsoever for such acts, and, at Sublandlord's option, relet the Subleased Premises as the agent of Subtenant and
receive rent therefor, and in such event Subtenant shall be liable on a monthly basis when rent is otherwise due and payable to
Sublandlord for any deficiency which may arise by reason of such reletting during the remainder of the Term of this Sublease, but
shall not be entitled to any surplus so arising. In the event of a conflict between the provisions of this Paragraph 8 and the
provisions of the Lease, the provisions of this Paragraph 8 shall prevail.

 

9.Subletting and Assignment.

 

(a)Subtenant shall not assign, mortgage,
pledge, encumber or in any manner transfer this Sublease or any part thereof nor sublet or suffer the Subleased Premises or any
part thereof to be used by others, except as expressly permitted by this Sublease and the Lease. Subject to the terms of this Sublease
and the Consent, it is understood that a change in control of Subtenant shall be deemed to constitute an assignment of this Sublease,
except to the extent such change of control is not deemed an assignment pursuant to the Lease.

 

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(b)If this Sublease is assigned in violation
of the provisions of this Sublease, Sublandlord may and is hereby empowered to collect rent from the assignee. In such event, Sublandlord
may apply the net amount received by it to the Fixed Rent, Additional Rent or any other payments herein reserved or provided for,
and no such collection shall be deemed a waiver of the covenant herein against assignment, mortgage, pledge or encumbrance, or
an acceptance of the assignee as a tenant or subtenant under this Sublease or a release of Subtenant from the further performance
of its covenants herein. If the Subleased Premises or any part thereof is sublet or occupied by others in violation of the provisions
of this Sublease, Sublandlord is hereby empowered to collect rent from the subtenant or other occupant, and to apply the same to
the curing of any default hereunder in any order of priority Sublandlord may elect, any unexpended balance to be applied by Sublandlord
against any rental or other obligations subsequently becoming due. The making of any assignment, mortgage, pledge, encumbrance
or subletting in whole or in part, and whether or not in violation of the provisions of this Sublease, shall not operate to relieve
Subtenant from its obligations under this Sublease and, notwithstanding any such assignment, mortgage, pledge, encumbrance or subletting,
Subtenant shall remain liable for the payment of all Fixed Rent, Additional Rent and other charges and for the due performance
of all the covenants, agreements, terms and provisions of this Sublease until the end of the Term. Each and every assignee, whether
as assignee or as successor in interest of Subtenant or as assignee or successor in interest of any assignee, shall immediately
be and become and remain liable jointly and severally with Subtenant and with each other for the payment of the Fixed Rent, Additional
Rent and other charges payable under this Sublease and for the due performance of all the covenants, agreements terms and provisions
of this Sublease on the part of Subtenant to be paid and performed until the end of the Term.

 

(c)Any proposal by Subtenant to assign
this Sublease or to further sublet the Subleased Premises or any portion thereof shall be subject to the prior written consent
of Landlord (in each case, to the extent Landlord’s consent is required under the Lease) and Sublandlord. Sublandlord shall
not unreasonably withhold its consent to a proposed assignment or subletting of all or a part of the Subleased Premises, provided
that Landlord has given its consent therefor. Subtenant shall reimburse Sublandlord for all reasonable out-of-pocket expenses incurred
in connection with a proposed assignment or subletting, including without limitation the fees and disbursements of Sublandlord's
attorneys, provided under no circumstances shall same exceed Five Thousand and 00/100 Dollars ($5,000.00).

 

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(d)If Sublandlord shall consent to any
assignment of this Sublease, Subtenant shall pay to Sublandlord, as consideration therefor, an amount equal to fifty percent (50%)
of all sums and other consideration paid to Subtenant by the assignee in connection with such assignment, including sums paid for
the purchase of the alterations and improvements which are present in the Subleased Premises less transaction costs set forth in
Section 4(J) of the Lease. The foregoing payment shall be made by Subtenant to Sublandlord within ten (10) Business Days after
Sublandlord has given its consent to the assignment (after accounting for the deductions set forth above). Sublandlord shall pay
to Landlord any payments required to be made under the Lease in connection therewith.

 

(e)If Sublandlord shall consent to any
further sublease of all or a portion of the Subleased Premises, Subtenant shall pay to Sublandlord, as consideration therefor,
an amount equal to fifty percent (50%) of the rent, additional rent and all other payments received by Subtenant under or in connection
with such sublease, including without limitation, any sums paid for the purchase of the alterations and improvements which are
present in the applicable premises less (i) the Fixed Rent and the Additional Rent payable pursuant to Paragraph 4(a) of this Sublease
with respect to the applicable premises and (ii) the transaction costs set forth in Section 4(J) of the Lease. Subtenant shall
pay such excess amounts to Sublandlord within ten (10) Business Days after receipt by Subtenant in each case (after accounting
for the deductions set forth above). Sublandlord shall pay to Landlord any payment required to be made under the Lease in connection
therewith.

 

(f)Sublandlord shall be entitled to exercise
any recapture right that it may have pursuant to this Sublease (including the provisions of the Lease which have been incorporated
herein) in connection with a proposed assignment or subletting of the Subleased Premises, or a portion thereof.

 

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(g)Notwithstanding anything in this Sublease
to the contrary (and provided Landlord consents to same), Sublandlord’s consent shall not be required (provided Sublandlord
and Landlord have been given prior notice and Landlord has consented to same), for transactions entered into with (i) any entity
which is controlled by, under common control with or which controls Tenant, or (ii) a corporation into or with which Subtenant
is merged or consolidated or with an entity to which all or substantially all of Subtenant’s assets are transferred, provided
(x) such merger, consolidation or transfer of assets is for a valid business purpose and not principally for the purpose of transferring
the leasehold estate created hereby, and (y) the assignee or successor entity has a net worth (determined in accordance with generally
accepted accounting principles consistently applied) at least equal to or in excess of the net worth of Subtenant immediately prior
to such merger, consolidation or transfer and Sublandlord has been provided with reasonable proof thereof prior to such transaction.
The term control shall mean ownership of more than fifty (50%) percent of all the voting stock of a corporation or more than fifty
(50%) percent of all the legal and equitable interest in any other entity. The original named Subtenant covenants that, notwithstanding
any assignment or transfer, whether or not in violation of the provisions of this Sublease, and notwithstanding the acceptance
of fixed rent and/or additional rent by Sublandlord from an assignee, transferee, or any other party, the originally named Subtenant
shall remain fully liable for the payment of the fixed rent and additional rent and for the other obligations of this Sublease
on the part of Subtenant to be performed or observed.

 

10.Liability; Insurance.

 

(a)Neither Sublandlord nor its successors,
assigns, employees or agents shall be liable for any loss of or damage to property of Subtenant or Subtenant's subtenants, assigns,
employees, agents or visitors, except for loss or damage resulting from Sublandlord's gross negligence or willful misconduct. With
respect to the Subleased Premises, Sublandlord, its successors, assigns, employees and agents shall not be liable for any injury
or damage to persons or property except for loss or damage resulting from the gross negligence or willful misconduct of Sublandlord,
its successors, assigns, employees and agents.

 

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(b)Subtenant shall maintain with respect
to the Subleased Premises comprehensive general public liability insurance, property insurance and other insurance in the manner
and with the minimum limits and maximum deductibles set forth in the Lease, with insurance companies qualified to do business in
the State of New York and otherwise meeting the standards set forth in the Lease, insuring Subtenant, Sublandlord, Landlord and
any other parties required in accordance with the Lease as named insureds, against, inter alia, claims and liabilities for bodily
injury or death to persons, and damage to property. Each party shall look exclusively to any insurance carried by it pursuant to
this Sublease and the Lease for loss or damage to property resulting from the negligence of the other party or its agents, servants,
employees, contractors, invitees or licensees, and, to the extent permitted by law, Sublandlord and Subtenant each hereby releases
and waives all right of recovery against the other or anyone claiming through or under each of them by way of subrogation or otherwise,
provided that such waivers of liability are permitted and are available under both Sublandlord's and Subtenant's policies of insurance
or such waivers are approved by their insurance carriers. Each party agrees to pay the added cost, if any, of obtaining such approval
from its insurance carrier. Subtenant shall deliver a certificate of insurance to Sublandlord with respect to all insurance required
under this Sublease and the Lease concurrently with its signing of this Sublease. Each of Subtenant's policies of insurance shall
provide that such policy may not be materially changed, amended, canceled or allowed to lapse except upon thirty (30) days' prior
written notice to Sublandlord, Landlord and any other parties required in accordance with the Lease. Such insurance shall be subject
to Sublandlord's reasonable approval as to form, content, coverage and expiration dates, which approval shall be deemed granted
if not refused within fifteen (15) days after delivery of the certificate of insurance to Sublandlord.

 

11.Indemnification.

 

(a)Except as provided in Paragraph 10
hereof, Subtenant shall indemnify and hold harmless Sublandlord from and against all claims, losses, costs, damages, expenses and
liabilities (including, but not limited to, the costs of legal proceedings and reasonable attorneys' fees and disbursements) (collectively
referred to hereinafter as “Claims”) which Sublandlord may incur, pay or have asserted against it by reason of any
injuries to persons occurring in, on or about the Premises and the Building caused by the acts or omissions of Subtenant, its agents,
employees, guests or invitees or by reason of any breach, failure or default under the Sublease or the Lease on Subtenant's part,
including any breach or default which results in a breach of or possible termination or forfeiture of the Lease. In the event of
a conflict between the provisions of this Paragraph 11 and any provision of the Lease, the provisions of this Paragraph 11 shall
prevail. The provisions of this Paragraph 11 shall survive the expiration or earlier termination of this Sublease.

 

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(b)Except as provided in Paragraph 10
hereof, and to the extent not arising from the willful acts or negligence of Subtenant or Subtenant's agents, employees, contractors,
licensees, guests or invitees, Sublandlord shall indemnify and hold harmless Subtenant from and against all Claims which Subtenant
may incur, pay or have asserted against it by reason of (A) any injuries to persons or property occurring in, on or about the Subleased
Premises caused by the acts, omissions or negligence of Sublandlord, its agents, employees, contractors, licensees, guests or invitees,
(B) by reason of any breach, failure or default hereunder on Sublandlord's part, including any breach or default which results
in a breach of or possible termination or forfeiture of the Lease, or (C) a termination of this Sublease as a result of Sublandlord’s
default under the Lease.

 

(c)Notwithstanding anything contained
in this Sublease to the contrary, except to the extent resulting from Subtenant’s holdover in the Subleased Premises, in
no event shall either party to this Sublease be liable to the other party under this Sublease for any special, consequential or
punitive damages of any nature whatsoever.

 

12.Subtenant's Rights. Notwithstanding
anything to the contrary herein set forth, Subtenant shall in no case have any rights in respect of the Subleased Premises greater
than the rights of Sublandlord under the Lease. Subtenant will look solely to Landlord for the enforcement of Subtenant's rights.
Sublandlord agrees to use commercially reasonable efforts (not including the expenditure of funds or the institution of litigation
except as set forth herein) to obtain for the benefit of Subtenant any services or other benefits provided by Landlord under the
Lease which relate to the use and enjoyment of the Subleased Premises (which efforts shall be at Subtenant’s expenses unless
the request is for Sublandlord’s other space in the Building as well, in which event the costs will be appropriately prorated).
In furtherance of the foregoing, Sublandlord agrees to (i) cooperate with Subtenant, at the sole cost and expense of Subtenant,
by promptly delivering to Landlord, in Sublandlord’s name if necessary, any communications or notices pertaining to the Subleased
Premises received from Subtenant and directed to Landlord, as Subtenant shall reasonably request; and (ii) upon request by
Subtenant, and at the sole cost and expense of Subtenant, either join with Subtenant in any proper action or proceeding, in the
name of Sublandlord, permit Subtenant to commence such action in the name of Sublandlord alone or have Sublandlord commence the
action alone, if necessary, to require and obtain performance by Landlord under the Lease and/or to collect damages resulting from
a breach by Landlord of its obligations under the Lease, at the sole cost and expense of Subtenant. For the purpose of such an
action and only to such extent, all of the rights of Sublandlord under the Lease are hereby conferred upon and assigned to Subtenant,
Subtenant is hereby subrogated to such rights and Sublandlord agrees to reasonably cooperate, at Subtenant's expense, with Subtenant's
prosecution of any such action. In addition to the indemnification provided under Paragraph 11 hereof, Subtenant hereby indemnifies
and agrees to hold harmless Sublandlord from and against all claims, losses, costs, damages, expenses and liabilities (including
but not limited to, the costs of legal proceedings and reasonable attorneys' fees and disbursements) which Sublandlord may incur,
pay or have asserted against it by reason of the prosecution of any such action by Subtenant or Sublandlord's cooperation therewith.
The provisions of the foregoing sentence shall survive the expiration or earlier termination of this Sublease.

 

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13.Possession, Care and Condition of
Subleased Premises.

 

(a)Possession and Condition.

 

(i)Subtenant acknowledges that Sublandlord
has afforded Subtenant the opportunity for full and complete investigation, examination and inspection of the Subleased Premises.
Subtenant acknowledges that it has examined the Subleased Premises and that it is leasing the Subleased Premises in their "as
is" broom clean condition on the date hereof, normal wear and tear excepted. Sublandlord shall deliver the Subleased Premises
with, to the best of Sublandlord’s knowledge, the existing HVAC units in good working order, which HVAC unit specifications
are set forth on Exhibit “C’ attached hereto and made a part hereof. Additionally, Sublandlord shall deliver to Subtenant
the ACP-5 certificate received from Landlord. Except as otherwise provided herein, Sublandlord shall have no obligation to perform
any work or supply any materials to prepare the Subleased Premises for Subtenant's occupancy. Subtenant shall, at its sole cost
and expense, make all improvements required to prepare the Subleased Premises for its occupancy. Sublandlord has made no representation
or warranty concerning the condition of the Subleased Premises except as expressly set forth in this Sublease.

 

A.Subtenant shall pay to Sublandlord
within ten (10) business days after Sublandlord’s written demand, its proportionate share of Sublandlord’s actual costs
to operate and maintain the Water Tower (based on Subtenant’s proportionate share of usage as compared to usage by all additional
floors in the Premises being serviced by the Water Tower). Subtenant shall be required to pay Sublandlord an annual fee of $500.00
per ton for water usage relating to the supplemental HVAC unit presently servicing the IDF room (which unit is 1 1⁄2 ton unit)
and for water usage for any additional supplement HVAC unit installed in the Subleased Premises after the Commencement Date. Additionally,
(i) if Subtenant chooses to hook up to the Water Tower for use in any additional HVAC equipment, Subtenant shall hook up same at
Subtenant’s sole cost and expense utilizing Sublandlord’s subcontractor (which is presently React Technical, Inc.)
or another subcontractor reasonably acceptable to Sublandlord, and (ii) Sublandlord shall be entitled to charge Subtenant on a
monthly basis for all after hours HVAC use based on a commercially reasonable per hour charge, as reasonable determined by Sublandlord,
based on Sublandlord’s actual costs, if any, for providing such overtime usage. Sublandlord’s HVAC hours shall be Monday
through Friday from 7:00AM to 6:00PM. If Subtenant requires HVAC after the usual business hours of the Building, then Subtenant
shall give notice (which may be by e-mail) to Sublandlord’s facilities department not later than 2:00 p.m. on the day prior
to the date on which such after hour services are required (i.e., after hours, weekends and/or holidays). Sublandlord’s current
standard charge for overtime HVAC service is $15.00 per unit per hour, provided that the Sublandlord acknowledges that overtime
charges shall not be charged for the supplemental HVAC unit servicing the IDF room.

 

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(b)On the date upon which the Term shall
expire and come to an end, whether by expiration, by lapse of time or otherwise, Subtenant, at its sole cost and expense, shall
quit and surrender the Subleased Premises to Sublandlord in good order and condition, reasonable wear and tear and damage by fire
or other casualty excepted, and broom clean. Subtenant shall, prior to such expiration, remove any Specialty Alteration (as defined
in the Lease) for which removal thereof is required pursuant to the Lease. In the event of any removal, Subtenant shall perform
same and restore the Subleased Premises to their condition prior to the installation of such Specialty Alteration or other improvements
and alterations, reasonable wear and tear and damage by casualty excepted. Should Landlord require Sublandlord to remove any Specialty
Alteration made prior to the Commencement Date, Sublandlord shall notify Subtenant of such requirement at least ninety (90) days
prior to the Expiration Date, in which case, same shall be either (a) removed by Subtenant prior to the Expiration Date and Sublandlord
shall within ten (10) business days of demand, reimburse Subtenant for the reasonable costs of removal of the Previous Improvements
thereof, or (b) upon mutual agreement between Sublandlord and Subtenant, removed by Sublandord at Sublandlord’s sole cost
and expense, provided Subtenant shall provide to Sublandlord reasonably sufficient access to the Subleased Premises, prior to the
Expiration Date, to perform such removal. Should Subtenant fail to provide such necessary access, all such Previous Improvements
shall be removed by Subtenant prior to the Expiration Date, subject to Sublandlord’s obligation to reimburse Subtenant for
same.

 

(c)Furniture and Equipment. Sublandlord
shall leave the furniture, moveable fixtures and equipment which are presently situated in the Subleased Premises and which are
listed on "Exhibit E" attached hereto and made a part hereof (the "Included Property") in the Subleased Premises
upon delivery of the Subleased Premises to Subtenant on the Commencement Date. Subtenant shall take possession of the Included
Property in its "as is", "where is" condition. The parties confirm that the Included Property shall not include
telephones. Sublandlord makes no representations or warranties with respect to the Included Property. The Included Property shall
remain the property of Sublandlord during the Term. Subtenant shall be responsible for any damage to or loss of any of the Included
Property, reasonable wear and tear excepted. If the Term has not been terminated prior to the Expiration Date, then title to the
Included Property shall pass to Subtenant on the Expiration Date, and Subtenant shall thereupon have all rights and responsibilities
associated with the ownership of the Included Property.

 

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(d)Holdover. Notwithstanding anything
to the contrary provided elsewhere in this Sublease, Subtenant shall pay to Sublandlord upon demand one hundred twenty-five percent
(125%) of all amounts that Sublandlord is required to pay and actually pays to Landlord pursuant to the Lease which are attributable
to a holdover by Subtenant in the Subleased Premises after the Expiration Date (provided that if any such amounts are also attributable
to a holdover by Sublandlord in its premises in the Building, such amounts shall be prorated between Sublandlord and Subtenant).
Additionally, Subtenant agrees to indemnify and save Sublandlord harmless from and against all claims, losses, damages (including,
without limitation, consequential, punitive, indirect or similar damages), liabilities, costs and expenses (including, without
limitation, reasonable attorneys’ fees and disbursements) resulting from delay by Subtenant in surrendering the Subleased
Premises at the expiration of the Term.

 

(e)Construction Allowance. Subtenant
shall be entitled to receive a construction allowance for Subtenant’s build out of the Subleased Premises in the amount of
Three Hundred Sixty Nine Thousand Five Hundred Seventy Five and 00/100 Dollars ($369,575.00) (the "Allowance"). The Allowance
shall be used for the "hard" construction costs of labor and materials actually incurred by Subtenant for construction
of permanent improvements to prepare the Subleased Premises for Subtenant's initial occupancy ("Subtenant's Work"). Notwithstanding
the forgoing to the contrary, Subtenant may utilize up to fifteen percent (15%) of the Allowance towards soft costs, including
architectural, engineering and filing fees associated with Subtenant’s initial build-out. Upon completion of Subtenant's
Work, as evidenced by a certificate from Subtenant's architect to such effect delivered to Sublandlord, Subtenant shall submit
to Sublandlord a written request for payment of the Allowance. During the performance of Subtenant’s Work, Subtenant may
submit draw requests (each a "Draw Request") at any time (but not more frequently than monthly) for the disbursement
of the lesser of (A) 90% of the cost of the applicable portion of Subtenant’s Work or (B) 90% of the portion of the total
cost of Subtenant’s Work represented by such portion of Subtenant’s Work. Each Draw Request shall be in writing and
shall be accompanied by (i) paid invoices for the applicable portion of Subtenant’s Work, (ii) a certificate signed by Subtenant’s
architect certifying that such portion of Subtenant’s Work has been satisfactorily completed in accordance with the final
plans therefor approved by Landlord and Sublandlord, and (iii) lien waivers or releases from all contractors and subcontractors
who have performed such portion of Subtenant’s Work with respect to all claims against Landlord and Sublandlord arising out
of such portion of Subtenant’s Work. Upon completion of Subtenant's Work, Subtenant shall submit to Sublandlord a written
request for payment of (x) the balance of the Allowance or (y) the balance of the amount actually expended by Subtenant for Subtenant's
Work, whichever is the lesser, but subject to the limitation on "soft costs" set forth above. Such request shall be accompanied
by (i) all paid invoices for Subtenant's Work not yet provided to Sublandlord, (ii) a certificate signed by Subtenant's architect
certifying that Subtenant's Work has been satisfactorily completed in accordance with the final plans therefor approved by Landlord
and Sublandlord, (iii) copies of all Buildings Department sign-offs and inspection certificates and all other permits required
to be issued by public authorities or governmental entities or insurance boards having jurisdiction over Subtenant's Work, and
(iv) final lien waivers or releases from all contractors and subcontractors who have performed any of Subtenant's Work (to the
extent not previously provided to Sublandlord) with respect to all claims against Landlord and Sublandlord arising out of such
Subtenant's Work. Within twenty (20) days after receipt of each Draw Request from Subtenant and supporting documentation, Sublandlord
shall pay the amount due pursuant to this Paragraph 13(d). If Sublandlord fails to disburse to Subtenant any portion of the Allowance
to which Subtenant is entitled (and which is not then in dispute), then Subtenant may give Sublandlord notice of such failure which
notice shall state in bold that IF SUBLANDLORD SHALL CONTINUE TO FAIL TO MAKE DISBURSEMENTS OF THE ALLOWANCE FOR TEN (10) BUSINESS
DAYS AFTER THE DATE OF Sublandlord’s receipt of notice, then Subtenant shall have
the right to deduct or recoup the sum owed from, or offset or net the sums owed against, the Fixed Rent and Additional rent next
becoming due under the Sublease. Should such failure continue for more than ten (10) business days after Sublandlord’s
receipt of such notice, Subtenant shall have the right to deduct or recoup the sum owed from, or offset or net the sums owed against,
the Fixed Rent and Additional Rent next becoming due under the Sublease.

 

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(f)Subtenant shall be allocated up to
twenty-four (24) hours of overtime freight elevator service during Subtenant’s build-out and initial move-in at no cost to
Subtenant, which service shall be scheduled pursuant to the terms of the Lease. Any cost associated with the initial twenty-four
(24) hours of overtime freight service during Subtenant’s build-out and initial move out shall be borne by Sublandlord.

 

(g)Obligation to Repair. Subtenant
shall take good care of the Subleased Premises and the fixtures and appurtenances therein. All damage or injury to the Subleased
Premises and to its fixtures, appurtenances and equipment or to the Building caused by Subtenant's moving of Subtenant's property
in or out of the Building or by Subtenant's installation or removal of furniture, fixtures or other property, or resulting from
Subtenant's negligent acts, omissions or misconduct shall be promptly repaired by Subtenant, at its sole cost and expense, to the
reasonable satisfaction of Sublandlord and Landlord. If a request is made by Landlord for Sublandlord to repair the Subleased Premises
in accordance with the Lease, Subtenant shall undertake such repair at its cost in accordance with the Lease. All of said repairs
required to be made by Subtenant shall be in conformance with the terms of the Lease. If Subtenant fails to make such repairs,
the same may be made by Sublandlord or Landlord at the expense of Subtenant and all sums so spent and expenses incurred by Sublandlord
shall be collectible as Additional Rent and shall be paid by Subtenant to Sublandlord within five(5) business days after rendition
of a bill or statement therefor. Notwithstanding anything to the contrary in the foregoing, Subtenant shall maintain and operate
the HVAC equipment in the Subleased Premises at its sole cost and expense.

 

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(h)Sublandlord represents and warrants,
as of the date of this Sublease, as follows:

 

(i)Neither Sublandlord nor, to its knowledge,
Landlord is in default under the Lease;

 

(ii)Sublandlord has not received from
Landlord any notice of default, which default remains uncured;

 

(iii)attached hereto as Exhibit F is
a true and complete (redacted) copy of the Lease;

 

(iv)the Lease is currently in full force
and effect;

 

(v)Sublandlord has not assigned its
interest in the Lease or sublet any portion of the Subleased Premises other than pursuant to this Sublease; and

 

(vi)Sublandlord has not made
any written material complaints regarding the building systems in and/or servicing the Subleased Premises, including the HVAC and
the supplemental air conditioning, electrical and plumbing systems.

 

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14.Notices. Notices, demands and
any other communications hereunder shall be in writing and shall be given or made by personal delivery, by overnight delivery by
a recognized national courier service or by certified mail, return receipt requested, addressed to Sublandlord at its address hereinabove
set forth, to the attention of Robert K. Smits, and addressed to Subtenant at the address hereinabove set forth, or at such other
address which either party may hereafter designate for such purpose by a written notice; provided, however, that after Subtenant
has moved into the Subleased Premises, notices, demands and any other communications shall be sent to Subtenant at the Subleased
Premises, in each case to the attention of Jim Harris, Chief Financial Officer. In the case of any notice of default, a copy of
such notice shall be sent to Blank Rome LLP, 405 Lexington Avenue, New York, New York 10174, Attention: Brad L. Shiffman, Esq..
Notices, demands and other communications shall be deemed given (a) if delivered by personal delivery or by overnight courier service,
on the date of delivery or rejection of delivery, or (b) if sent by certified mail, upon receipt or rejection of such delivery.
Sublandlord shall, within five (5) days after receipt thereof, give to Subtenant a copy of each notice or demand received from
Landlord relating to the Subleased Premises, and Subtenant shall, within five (5) days after receipt thereof, give to Sublandlord
a copy of each notice or demand received from Landlord relating to the Subleased Premises.

 

15.Miscellaneous. This Sublease
contains the entire agreement of the parties with respect to the transactions contemplated hereby, supersedes all prior agreements
or understandings between the parties and may not be changed or modified in any way unless such change or modification is in writing
and signed by the parties hereto. Neither Sublandlord nor Subtenant has made any representations or warranties with respect to
this Sublease except as expressly set forth herein. If any provision of this Sublease shall be held to be invalid or unenforceable
in any respect, the validity or enforceability of the remaining portions of this Sublease shall be unaffected thereby. This Sublease
shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns.
The headings in this Sublease are for convenience only and shall not be used in construing the intentions of the parties. This
Sublease shall be governed by and construed in accordance with the laws of the State of New York. Sublandlord and Subtenant each
represent that it has full right and authority to enter into this Sublease and that the officer signing this Sublease on its behalf
is authorized to do so. This Sublease may be signed in counterparts, each of which shall constitute an original but all of which,
when taken together, shall constitute one instrument. Sublandlord and Subtenant each waives, to the extent permitted by law, the
right to a jury trial in any action or legal proceeding between the parties arising out of this Sublease or Subtenant's occupancy
of the Subleased Premises. Terms used with initial capitalization and not defined herein shall have the meanings given to them
in the Lease.

 

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16.Attorneys' Fees. If either party
hereto is made or becomes a party to any litigation commenced by or against the other party involving the enforcement of any of
the rights and remedies of such party, or arising on account of the default of the other party in the performance of such party's
obligations hereunder, then the prevailing party in such litigation, or the party becoming involved in such litigation because
of a claim against such other party, as the case may be, shall be reimbursed by the other party for all costs and reasonable attorneys'
fees incurred by such party in such litigation.

 

17.Interest; Late Charges. Subtenant
shall, on demand, pay interest on any Fixed Rent, Additional Rent and other amounts payable by Subtenant to Sublandlord pursuant
hereto if any such amount is not received prior to its due date. Interest will accrue at a fluctuating rate per annum equal to
four percent (4%) above the rate of interest announced by JPMorgan Chase Bank, N.A., or its successor, from time to time as its
prime or base lending rate (but in no event at a rate in excess of the maximum legal rate permitted by law) from the date such
amounts of Fixed Rent, Additional Rent or other amounts first became due hereunder until the same are received by Sublandlord.
Notwithstanding the foregoing, Subtenant shall not be responsible for the payment of the late charge for the first late payment
in any twelve (12) month period, provided same is paid within five (5) days of the due date thereof. In addition, if any Fixed
Rent, Additional Rent or other amount payable by Subtenant to Sublandlord pursuant hereto is not paid within fifteen (15) days
after its due date, Subtenant shall pay to Sublandlord a late charge of five cents ($.05) for each Dollar of the overdue amount
to defray Sublandlord's administrative costs for handling the late payment. The right of Sublandlord to collect interest and late
charges shall be without derogation of any other right of Sublandlord hereunder. The amounts payable under this Paragraph 17 shall
be deemed to be Additional Rent for purposes of this Sublease.

 

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18.Brokerage. Each party represents
and warrants to the other that it has had no dealings or communications with any broker or agent in connection with this Sublease
other than Jones Lang LaSalle Americas, Inc. and Newmark Grubb Knight Frank (collectively, the Broker”). In the event any
broker or agent (other than the Broker) claims that it is entitled to a commission due to the acts of Subtenant, Subtenant covenants
and agrees to pay, hold harmless and indemnify Sublandlord from and against any and all costs, expenses or liability incurred by
Sublandlord in connection with or relating to any claims for compensation, commissions and fees asserted by such broker or agent
with respect to this Sublease or the negotiation hereof (including, without limitation, the cost of legal fees and related expenses
incurred in connection with defending against such claims). In the event any broker or agent (including the Broker) claims that
it is entitled to a commission due to the acts of Sublandlord, Sublandlord covenants and agrees to pay, hold harmless and indemnify
Subtenant from and against any and all costs, expenses or liability incurred by Subtenant in connection with or relating to any
claims for compensation, commissions and fees asserted by such broker or agent with respect to this Sublease or the negotiation
hereof (including, without limitation, the cost of legal fees and related expenses incurred in connection with defending against
such claims). The commission due to the Broker shall be paid by Sublandlord pursuant to a separate agreement or agreements. Each
party’s liability under this Section 18 shall survive any expiration or termination of this Sublease.

 

19.Security Deposit.

 

(a)As security for the full and punctual
performance by Subtenant of all of the terms and conditions of this Sublease, Subtenant shall submit to Sublandlord three (3) business
days after Landlord delivers Landlord’s consent to this Sublease (which delivery may be via electronic delivery) an irrevocable
standby letter of credit (such letter of credit and all renewals and replacements thereof are referred to herein as the "Letter
of Credit") in an amount equal to nine (9) months average Fixed Rent (i.e. One Million One Hundred Eight Thousand Seven Hundred
Twenty Four and 90/100 Dollars ($1,108,724.90)) (the "Security Deposit") in the form of "Exhibit D" which is
attached hereto as an integral part hereof and otherwise in form and substance satisfactory to Sublandlord. The Letter of Credit
shall be issued in the Borough of Manhattan, State of New York to Sublandlord as the sole beneficiary thereunder by a bank or trust
company (the "Issuing Institution") acceptable to Sublandlord and shall, in each case, have an expiration date of not
earlier than one (1) year after its date of issuance. The Letter of Credit shall not limit the number of times that Sublandlord
is entitled to draw thereunder and shall be transferable by Sublandlord to any successor to Sublandlord's position as sublandlord
under this Sublease without cost to Sublandlord or such successor. The final Letter of Credit established hereunder shall have
an expiration date which falls no earlier than December 15, 2027. Provided that (i) this Sublease shall be in full force and effect
and Subtenant shall not then be in default hereunder, and (ii) Sublandlord has not previously drawn on the Security Deposit by
reason of Default on the part of Subtenant, the Security Deposit shall be reduced to an amount equal to six (6) months average
Fixed Rent hereunder (i.e., Seven Hundred Thirty Nine Thousand One Hundred Forty Nine and 90/100 Dollars ($739,149.90)) at the
expiration of the fifth (5th) anniversary of the Commencement Date. Sublandlord shall consent to a modification of the
letter of credit to reduce the amount thereof in accordance herewith (the form and substance of such modification to be satisfactory
to Sublandlord in its sole but reasonable discretion) or shall accept a replacement letter of credit in the reduced amount which
is in form and substance reasonably satisfactory to Sublandlord and which otherwise satisfies the requirements hereof and shall
thereupon return to Subtenant the original letter of credit then being held by Sublandlord.

 

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(b)Whenever Subtenant is in default under
this Sublease and such default has continued after any applicable notice has been delivered to Subtenant and beyond any applicable
cure period or whenever Sublandlord has obtained a judgment against Subtenant based on a claim arising out of this Sublease, Sublandlord
may draw the amount of such default or judgment, as the case may be, against the Letter of Credit, to the extent required for the
payment of any Fixed Rent or Additional Rent or for any sum which Sublandlord may expend or be required to expend by reason of
Subtenant's default. The Letter of Credit may be drawn upon by presentation to the Issuing Institution of a statement of any officer
of Sublandlord certifying that Sublandlord is entitled to draw such amount pursuant to the terms of this Sublease. Subtenant shall
have no right to demand that the Security Deposit be applied to any of the obligations of Subtenant hereunder and such application
shall not constitute the cure by Subtenant of the underlying default to which the Security Deposit is so applied.

 

(c)If any Letter of Credit required to
be maintained under this Paragraph 19 is not renewed or replaced on or before the thirtieth (30th) day prior to its expiration
with a renewal or replacement Letter of Credit meeting the requirements of this Paragraph 19, then Sublandlord, at any time after
such thirtieth (30th) day and prior to such renewal or replacement, may draw on such Letter of Credit for the undrawn amount of
such Letter of Credit and deposit the proceeds of such draw into an account maintained by Sublandlord (which account may not include
other funds of Sublandlord) and Sublandlord shall have the right to draw on such proceeds whenever Sublandlord would have had the
right to draw on the Letter of Credit, if such Letter of Credit had been renewed or replaced. Any renewal or replacement Letter
of Credit shall be deposited with and held by Sublandlord.

 

(d)In the case of every use, application
or retention of the Security Deposit, Subtenant shall, within ten (10) business days after demand, increase the Letter of Credit
by such sum, so that the Security Deposit shall be replenished to the amount which Subtenant is required to maintain hereunder
and the failure to do so shall constitute an Event of Default hereunder without any notice or cure period.

 

    	27

    	 

    

  

(e) As security for the full and punctual
performance by Subtenant of all of the terms and conditions of this Sublease, until such time as Subtenant delivers the Letter
of Credit to Sublandlord, first month’s rent in the amount of One Hundred Seventeen Thousand Thirty Two Dollars and 08/100
($117,032.08) shall be deemed to be additional security hereunder, which amount may be applied as if same where the Security Deposit
hereunder.

 

20.Consent to Jurisdiction. Each
of the parties hereto hereby irrevocably consents and agrees that any legal action or proceeding with respect to this Sublease
may be brought in any of the Federal or State courts having subject matter jurisdiction located in the Borough of Manhattan, The
City of New York, and, by its execution and delivery of this Sublease, each such party hereby (a) accepts the non-exclusive jurisdiction
of the aforesaid courts, (b) irrevocably agrees to be bound by any final judgment (after any appeal) of any such court with respect
to this Sublease, and (c) irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding with respect to this Sublease brought in any such court, and further
irrevocably waives, to the fullest extent permitted by law, any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum.

 

21.Confidentiality. Subtenant and
Sublandlord each agree that the other party may not use the name or logo of the other party or any of their respective subsidiaries,
divisions and affiliates, in any press release, marketing material, advertising campaign or other public document without the prior
written consent of the other party. No public announcement or press release concerning this Sublease, its contents, transactions
contemplated herein or the negotiations related thereto may be issued by any party without the written approval of all parties
to this Sublease.

 

    	28

    	 

    

  

22.Due Authorization. Each party
represents and warrants to the other party that (i) each party, on its own behalf, has all necessary power and authority to execute
and deliver this Sublease, to perform its respective obligations hereunder, and to consummate the transactions contemplated hereunder,
(ii) no other proceedings on the part of any party are necessary to authorize the execution and delivery of this Sublease or to
consummate the transactions contemplated hereunder and (iii) this Sublease has been duly and validly executed and delivered by
each party hereto and shall constitute a valid, legal and binding agreement of each of respective party, enforceable against each
party in accordance with and subject to the terms and conditions of this Sublease.

 

23.Defined Terms. Terms used with
initial capitalization and not defined herein shall have the meanings given to them in the Lease.

 

 

 

[Remainder of Page
Intentionally Left Blank]

 

 

 

 

 

 

    	29

    	 

    

 

IN WITNESS WHEREOF, this Sublease has been
executed by the duly authorized representatives of the parties as of the day and year first above written.

 

	 	 	SUBLANDLORD:
	 	 	 
	 	 	GBG USA INC.
	 	 	 
	 	 	 	By:	/s/ Robert K. Smits
	 	 	 	 	 	Name:	Robert K. Smits
	 	 	 	 	 	Title:	EVP – Secretary

 

	 	 	SUBTENANT:
	 	 	 
	 	 	XCEL BRANDS, INC.
	 	 	 
	 	 	 	By:	/s/ Robert D’Loren
	 	 	 	 	 	Name:	Robert D’Loren
	 	 	 	 	 	Title:	Chairman, CEO

 

 

    	30

    	 

    

 

EXHIBIT
A

 

Floor Plan

of

Subleased Premises

 

    	A-1

    	 

    

 

EXHIBIT
B

 

Fixed Rent

 

Subleased Premises

 

 

 

	Period	 	Annual Fixed Rent	 	 	Monthly Fixed Rent	 
	Commencement Date – day preceding fifth anniversary of the Commencement Date (“First Date”)	 	$	1,404,385.00	 	 	$	117,032.08	 
	Day following First Date – Expiration Date	 	$	1,552,215.00	 	 	$	129,351.25	 

 

    	B-1

    	 

    

  

EXHIBIT
C

 

HVAC
UNITS

 

 

The Subleased Premises presently has two (2), forty (40) ton
(Trane) units covering the Subleased Premises, and one (1), one and a half (1 1⁄2) ton (Trane) unit covering the IDF room.
All units are water-cooled and are tied into the Water Tower.

 

    	C-1

    	 

    

 

EXHIBIT
D

 

Form
of Letter of Credit

 

	 	Date:	
	 	L/C No.:	
	 	Amount:	$

 

GBG USA INC.

350 Fifth Avenue, 9th Floor

New York, New York 10118

Attention: Robert K. Smits

 

Ladies/Gentlemen:

 

We hereby establish our Irrevocable Standby Letter of Credit
No. ___________ in favor of GBG USA INC. for the account of XCEL BRANDS, INC. for a sum not exceeding $______________, available
by your drafts at sight on us effective immediately and expiring at our counters at our close of business on ______________.

 

Drafts drawn hereunder must be accompanied by a statement signed
by one of your officers reading as follows: "The amount of the accompanying draft is due and payable to GBG USA INC. by XCEL
BRANDS, INC. under a certain Agreement of Sublease between GBG USA INC., as sublandlord, and XCEL BRANDS. INC., as subtenant."

 

Drafts drawn hereunder must indicate: "Drawn under Letter
of Credit No. _________ of [Name of Issuing Bank]."

 

It is a condition of this Letter of Credit that it shall be
automatically extended without amendment for further periods of one year from the present and each future expiration date, unless,
at least thirty (30) days prior to such date, we shall send you notice in writing by registered or certified mail, return receipt
requested, that we elect not to renew this Letter of Credit for such additional period. Any such notice will be effective two (2)
days after being sent by us, and thereafter you may draw draft(s) on us at sight for amounts up to the remaining balance of this
Letter of Credit on or before the then applicable expiration date, and such draft(s) need not be accompanied by any statement.

 

This Letter of Credit is transferable in its entirety to any
assignee or transferee of your interest in the Agreement of Sublease referred to above without any fee or charge on your part or
on the part of the transferee.

 

Partial drawings under this Letter of Credit are permitted.
The amount and date of presentation of any draft drawn and presented pursuant to the terms of this Letter of Credit shall be noted
on this Letter of Credit by us. After making such notation, this Letter of Credit shall be returned immediately to you, unless
any such draft presented and paid shall have exhausted this credit, in which case this Letter of Credit shall be retained by us.

 

We hereby engage with the drawers, endorsers and bona fide holders
of drafts drawn under and in compliance with the terms of this Letter of Credit that such drafts will be duly honored if presented
for payment at our office located at ___________________________________ or at our principal office in New York City prior to the
time of expiration hereof. Such drafts will be paid in immediately available funds before 2:00 p.m. New York time on the Banking
Day after the day on which such draft is so presented. "Banking Day" means a day on which commercial banks are open for
business in New York.

 

This Letter of Credit is subject to the Uniform Customs and
Practice for Documentary Credits (2007 Revision) of the International Chamber of Commerce (Publication No. 600).

 

	 	Very truly yours,
	 	[Name of Issuing Bank]
	 	 
	 	 
	 	Authorized Signature

 

    	D-1

    	 

    

 

 

EXHIBIT E

 

List of Included Property

 

    	E-1

    	 

    

 

 

EXHIBIT F

 

Lease

 

    	F-1Exhibit 4.7

 

SECURED PROMISSORY NOTE

 

	$345,000.00 	May 1, 2015
	 	New York, New York

 

 

FOR VALUE RECEIVED,
PROTALEX, INC., a Delaware corporation (“Protalex”), having an address at 131 Columbia Turnpike, Suite 1, Florham Park,
NJ 07932 (the “Company”), unconditionally promise to pay to the order of NIOBE VENTURES, LLC, a Delaware limited liability
company (hereinafter referred to as the “Holder”), at the offices of Morse, Zelnick, Rose & Lander LLP, 825 Third
Avenue, 16th floor, New York, New York 10022, or at such other place as Holder may designate in writing, the principal sum of Three
Hundred Forty Five Thousand and 00/100 Dollars ($345,000.00) (the “Principal Sum”), with interest thereon computed
from the date hereof until maturity, whether on the Maturity Date (as hereinafter defined), by acceleration, or otherwise, at the
rate of three percent (3.00%) per annum (the “Interest Rate”), and thereafter, in accordance with the terms of this
Note, at the Default Rate (as hereinafter defined and governed), together with any costs, expenses and attorneys’ fees incurred
by Holder pursuant to the provisions hereof. Any amounts that remain unpaid after the Maturity Date shall thereafter bear interest
at the rate of twelve percent (12%) per annum (the “Default Rate”). Interest as aforesaid shall be calculated on the
basis of actual number of days elapsed over a year of 360 days.

 

The Principal Sum and
all accrued interest on this Note shall be due on September 1, 2016, or such earlier date as provided for in Section 5 hereof (the
“Maturity Date”). The Maturity Date is subject to acceleration in accordance with Section 4 hereof.

 

Section 1.
Promissory Note. This Note is a direct debt obligation of the Company and, pursuant to the Consolidated, Amended and Restated
Security Agreement dated the date hereof (the “A/R Security Agreement”) all of the Company’s obligations hereunder
are secured by a first priority perfected security interest in all of the assets of the Company (the “Security”) for
the benefit of the Holder.

 

Section 2.Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Note the following terms shall have the following meanings:

 

“Business
Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or
a day on which banking institutions in the State of New York are authorized or required by law or other government action to close.

 

“Event
of Default” shall have the meaning set forth in Section 6.

 

“Fundamental
Transaction” shall have the meaning set forth in Section 4.

 

“Liquidity
Event” shall have the meaning set forth in Section 5.

 

“Original
Issue Date” means the date of the first issuance of this Note regardless of the number of transfers of any Note and regardless
of the number of instruments which may be issued to evidence such Note.

 

“Person”
means a corporation, an association, a partnership, organization, a business, an individual, a government or political subdivision
thereof or a governmental agency.

 

“Subsidiary”
means any Person in which the Company owns more than 50% of the outstanding equity.

 

    	1

    	 

    

 

Section 3.Registration of Transfers and Exchanges.

 

a)Different
Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations
as requested by the Holder surrendering the same, No service charge will be made for such registration of transfer or exchange.

 

b)Reliance
on Note Register. Prior to due presentment to the Company for transfer of this Note, the Company and any agent of the Company
may treat the Person in whose name this Note is duly registered on the Company’s books and records as the owner hereof for
the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither
the Company nor any such agent shall be affected by notice to the contrary.

 

Section 4.Acceleration of
Maturity Date. If, at any time while this Note is outstanding: (A) the Company effects any merger or consolidation of the Company
with or into another Person, (B) the Company effects any sale of all or substantially all of its assets in one or a series of related
transactions, (C) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company
effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental Transaction”),
then, immediately prior to the occurrence of such Fundamental Transaction the Principal Sum and all accrued but unpaid interest
payable hereunder shall automatically become, at the Holder’s election, immediately due and payable in cash.

 

Section 5. Mandatory Prepayment,
Partial Prepayment. If, at any time while this Note is outstanding, the Company receives in the aggregate, from a single or
multiple “Liquidity Events” (as defined below), gross proceeds in excess of $10,000,000 (“Gross Proceeds”),
then, in such event, a payment, in the aggregate (each, a “Mandatory Prepayment Amount”), in reduction of the amount
then outstanding under this Note and any other note from the Company to the Holder shall immediately be due and payable in an amount
equal to twenty-five (25%) percent of the Gross Proceeds received (each, a “Mandatory Prepayment Event”). The Mandatory
Prepayment Amount shall be allocated pro rata to reduce the amount then outstanding under this Note and any other note from the
Company to the Holder. A “Liquidity Event” shall mean each of (a) the sale of any of the Company’s equity, or
equity-linked, securities, and (b) the receipt of proceeds, directly or indirectly related to a development and/or commercialization
relationship entered into with an unaffiliated third party.

 

Section 6.Events of Default.

 

a)Event of
Default. Wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary
or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or
regulation of any administrative or governmental body):

 

i.any
default in the payment of (A) the principal, or (B) interest on this Note or any other note issued by the Company to the Holder
as and when the same shall become due and payable (whether on the Maturity Date, upon a Mandatory Prepayment Event or by acceleration
or otherwise) which default is not cured within ten (10) Business Days after written notice from the Holder;

 

    	2

    	 

    

 

ii.(A)
there is commenced against the Company or any Subsidiary thereof a case under any applicable bankruptcy or insolvency laws as now
or hereafter in effect or any successor thereto, or any other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect
relating to the Company or any Subsidiary thereof which remains undismissed for a period of 60 days; or (B) the Company or any
Subsidiary thereof is adjudicated by a court of competent jurisdiction insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or (C) the Company or any Subsidiary thereof suffers any appointment of any custodian
or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days.

 

b)Remedies
Upon Event of Default. If any Event of Default occurs, the full principal amount of this Note, together with interest and other
amounts owing in respect thereof, to the date of acceleration shall become, at the Holder’s election, immediately due and
payable in cash. The Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of
any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies
hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Holder
at any time prior to payment hereunder and the Holder shall have all rights as a Note holder until such time, if any, as the full
payment under this Section shall have been received by it. No such rescission or annulment shall affect any subsequent Event of
Default or impair any right consequent thereon.

 

Section 7.Miscellaneous.

 

a) Priority
of Payment. Payments under this Note shall be applied first to accrued and unpaid interest and then to the Principal
Sum outstanding. All amounts due under this Note shall be payable without setoff, counterclaim or any other deduction whatsoever.

 

bNotices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder shall be in writing and delivered
personally, by facsimile, sent by a nationally recognized overnight courier service, addressed to the Company, at 133 Summit Avenue,
Suite 22, Summit, NJ 07901, attention: Chief Financial Officer, or such other address or facsimile number as the Company may specify
for such purposes by notice to the Holder delivered in accordance with this Section. Any and all notices or other communications
or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, sent by a nationally
recognized overnight courier service addressed to the Holder at the facsimile, telephone number or address of such Holder appearing
on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of
the Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i)
the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified
in this Section prior to 5:30 p.m. (New York City time), (ii) the date after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile telephone number specified in this Section later than 5:30 p.m. (New York City time)
on any date and earlier than 11:59 p.m. (New York City time) on such date, (iii) the second Business Day following the date of
mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice
is required to be given.

 

c)Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, interest and liquidated damages (if any) on, this Note at the time,
place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company.

 

    	3

    	 

    

 

d)Lost or
Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed
Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed but only upon receipt of evidence
of such loss, theft or destruction of such Note, and of the ownership hereof; and indemnity, if requested, all reasonably satisfactory
to the Company.

 

e)Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note, and any claim, controversy
or dispute arising under or related to this Note, the relationship of the parties, and/or the interpretation and enforcement of
the rights and duties of the parties hereunder shall be governed by and construed and enforced in accordance with the internal
laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings
concerning the interpretations or enforcement of this Note (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, employees or agents) shall be commenced in the state or federal courts sitting in the City of
New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, or such New York Courts are improper or inconvenient venue for such proceeding. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby. If either
party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing party in such action or
proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such action or proceeding.

 

f)Waiver.
Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a
waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company or
the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note. Any waiver
must be in writing.

 

g)Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any
provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
If it shall be found that any interest or other amount deemed interest due hereunder violates applicable laws governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The
Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive
the Company from paying all or any portion of the principal of or interest on this Note as contemplated herein, wherever enacted,
now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture, and due Company
(to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it
will not, by resort to any such law, binder, delay or impeded the execution of any power herein granted to the Holder, but will
suffer and permit the execution of every such as though no such law has been enacted.

 

    	4

    	 

    

 

h)Next Business
Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day.

 

i)Headings.
The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit
or affect any of the provisions hereof.

 

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

 

	 	PROTALEX, INC.
	 	 	 
	 	By:     	/s/ Kirk M. Warshaw
	 	     	Kirk M. Warshaw, Chief Financial Officer

 

    	5

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