Document:

Exhibit 10.1 

 

Execution Copy

  

LEASE

 

BETWEEN

 

PDM 930 UNIT, LLC

 

AND

 

AEROVATE THERAPEUTICS, INC.

 

FOR PREMISES LOCATED AT

 

RESERVOIR WOODS

  

    	 		 

     

    

  

TABLE OF CONTENTS

  

	 	 	Page
	 	 	 
	Article 1.	Demised Premises - Term of Lease	1
	Section 1.01.	Demised Premises	1
	Section 1.02.	Special Appurtenant Rights	2
	Section 1.03.	Term Commencement	3
	Section 1.04.	Entry Prior to Commencement	3
	 	 	 
	Article 2.	Rent	4
	Section 2.01.	Base Rent	4
	Section 2.02.	Additional Rent for Operating Expenses and Taxes	4
	Section 2.03.	Payment of Rent	12
	Section 2.04.	Rent from Real Property	13
	Section 2.05.	Security Deposit	13
	 	 	 
	Article 3.	Utility Services	14
	Section 3.01.	Electricity	14
	Section 3.02.	Other Landlord Services	15
	Section 3.03.	Normal Building Hours	15
	 	 	 
	Article 4.	Insurance	15
	Section 4.01.	Compliance with Property Insurance	15
	Section 4.02.	Tenant’s Required Insurance	16
	Section 4.03.	Landlord’s Required Insurance	17
	Section 4.04.	Tenant Work Insurance	18
	Section 4.05.	Waiver of Subrogation	18
	Section 4.06.	Certificates of Insurance	18
	 	 	 
	Article 5.	Use of Demised Premises	18
	Section 5.01.	Permitted Use	18
	Section 5.02.	Compliance With Laws	18
	Section 5.03.	Hazardous Materials Indemnity	19
	Section 5.04.	Rules and Regulations	20
	 	 	 
	Article 6.	Compliance with Legal Requirements	21
	Section 6.01.	Legal Requirements	21
	 	 	 
	Article 7.	Construction, Condition, Repairs and Maintenance of Demised Premises	21
	Section 7.01.	Landlord Maintenance Obligations	21
	Section 7.02.	Tenant’s Maintenance Obligations	21
	Section 7.03.	Landlord’s Right of Entry	22
	Section 7.04.	Service Interruptions	22
	 	 	 
	Article 8.	Alterations and Additions	22
	Section 8.01.	Tenant Work	23
	 	 	 
	Article 9.	Discharge of Liens	23
	Section 9.01.	No Liens	24

 

    	 	i	 

     

    

 

	Article 10.	Subordination	24
	Section 10.01.	Lease Subordinate to Mortgages	24
	Section 10.02.	Estoppel Certificates	24
	Section 10.03.	Notices to Mortgagees	26
	Section 10.04.	Assignment of Rents	27
	 	 	 
	Article 11.	Fire, Casualty and Eminent Domain	27
	Section 11.01.	Rights to Terminate the Lease	27
	Section 11.02.	Restoration Obligations	27
	 	 	 
	Article 12.	Indemnification	28
	Section 12.01.	General Indemnity	28
	Section 12.02.	Defense Obligations	28
	 	 	 
	Article 13.	Mortgages, Assignments and Subleases by Tenant	29
	Section 13.01.	Right to Transfer	29
	Section 13.02.	Tenant Remains Bound	29
	 	 	 
	Article 14.	Default	32
	Section 14.01.	Events of Default	33
	Section 14.02.	Landlord’s Right to Cure	33
	Section 14.03.	No Waiver	34
	Section 14.04.	Late Payments	35
	Section 14.05.	Remedies Cumulative	35
	Section 14.06.	Landlord’s Obligation to Make Payments	35
	Section 14.07.	Landlord Defaults	36
	 	 	 
	Article 15.	Surrender	36
	Section 15.01.	Obligation to Surrender	36
	Section 15.02.	Holdover Remedies	36
	 	 	 
	Article 16.	Quiet Enjoyment	36
	Section 16.01.	Covenant of Quiet Enjoyment	37
	 	 	 
	Article 17.	Acceptance of Surrender	37
	Section 17.01.	Acceptance of Surrender	37
	 	 	 
	Article 18.	Notices - Service of Process	37
	Section 18.01.	Means of Giving Notice	37
	 	 	 
	Article 19.	Separability of Provisions	37
	Section 19.01.	Severability	38
	 	 	 
	Article 20.	Miscellaneous	38
	Section 20.01.	Amendments	38
	Section 20.02.	Governing Law	38
	Section 20.03.	Counterparts	38
	Section 20.04.	Successors and Assigns	38
	Section 20.05.	Merger Clause	39
	Section 20.06.	Notice of Lease	39
	Section 20.07.	No Lease	39
	Section 20.08.	Reimbursements	39

 

    	 	ii	 

     

    

 

	Section 20.09.	Financial Statements	39
	Section 20.10.	Parking	39
	Section 20.11.	Future Development	40
	Section 20.12.	Signage	40
	Section 20.13.	Brokers	41
	Section 20.14.	Force Majeure	41
	Section 20.15.	Limitations on Liability	41
	Section 20.16.	Certain Definitions	41
	Section 20.17.	Prevailing Parties	42
	Section 20.18.	Waiver of Trial by Jury	42
	Section 20.19.	Landlord’s Reserved Rights	42
	Section 20.20.	Tenant as non-Specially Designated National or Blocked Person	42
	Section 20.21.	Authority	43
	Section 20.22.	Environmental Representation	43
	 	 	 
	Article 21.	Rooftop License	44
	Section 21.01.	Rooftop License	44
	Section 21.02.	Installation and Maintenance of Rooftop Equipment	44
	Section 21.03.	Indemnification	44
	Section 21.04.	Removal of Rooftop Equipment	45
	Section 21.05.	Interference by Rooftop Equipment	45
	Section 21.06.	Relocation of Rooftop Equipment	45
	 	 	 
	Article 22.	Option	46
	Section 22.01.	Option to Extend	47
	Section 22.02.	Extension Rent	47
	Section 22.03.	Market Rent	47
	Section 22.04.	Tenant’s Right to Dispute Market Rent	47
	Section 22.05.	Arbitration of Market Rent	48

 

    	 	iii	 

     

    

 

LEASE

 

LEASE dated as of August 6,
2021, by and between PDM 930 Unit, LLC, a Delaware limited liability company (hereinafter called “Landlord”), and Aerovate
Therapeutics, Inc., a Delaware corporation (hereinafter called “Tenant”).

 

Article 1.

 

Demised Premises - Term of Lease

 

Section 1.01.         Demised
Premises. Upon and subject to the conditions and limitations hereinafter set forth, Landlord does hereby lease and demise unto Tenant
a portion of the mezzanine floor of the building with an address of 920, 930 and 940 Winter Street, Waltham, Massachusetts (the “Building”),
as such demised premises is more particularly described on Exhibit 1.01-1 (the “Demised Premises”), together
with the right to use, in common with others, the walkways, driveways, parking areas, and utility lines and other common areas and facilities
serving the Demised Premises. The Building consists of three wings, each with its own street address. The parties agree that the rentable
area of the Demised Premises shall conclusively be deemed to be 5,003 square feet. The Demised Premises is located in the portion
of the Building known as 930 Winter Street. Landlord shall have the right to alter, relocate or eliminate common areas and facilities
in the Building from time to time so long as is there is no material adverse effect on access to, or use and occupancy of, the Demised
Premises for the Permitted Use or Tenant’s parking rights hereunder.

 

The Building is a unit within
a commercial condominium regime known as Reservoir Woods Primary Condominium, which currently consists of the Building and a building
known as 850 Winter Street, Waltham, Massachusetts. Landlord’s interest in the Condominium is sometimes referred to herein as the
 “Property” and is more particularly described on Exhibit 1.01-2. The portion of the Building shown on Exhibit
1.01-1 as 930 Winter Street is referred to herein as “930 Winter”). This Lease, and Tenant’s leasehold
interest in the Demised Premises, are subject to, the terms, covenants and conditions of agreements, easements and restrictions of record
applicable to the Property, all of which Tenant shall perform and observe insofar as the same are applicable to the Demised Premises;
provided, however, that notwithstanding anything contained herein to the contrary, Tenant shall not be bound by any easements or restrictions
made after the date of this Lease that materially affect Tenant’s rights and obligations under this Lease unless and until Landlord
has obtained Tenant’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed. Landlord hereby represents
and warrants that none of the existing agreements, easements and restrictions of record, including without limitation any and all condominium
documents affecting the Property, prohibit or restrict use of the Demised Premises for the Permitted Use.

 

    1 

     

    

 

Landlord reserves the right
from time to time, without unreasonable (except in the event of an emergency) interruption of Tenant’s use and access to the Demised
Premises: (i) to make additions to or reconstructions of the Building and to install, use, maintain, repair, replace and relocate
for service to the Demised Premises and other parts of the Building, or either, pipes, ducts, conduits, wires and appurtenant fixtures,
wherever located in the Demised Premises, the Building, or elsewhere in the Property, provided that such additions or reconstructions
are of substantially similar quality; (ii) to alter or relocate any other common area or facility, including the drives, lobbies
and entrances and (iii) to grant easements and other rights with respect to the Property, provided that (a) no such installations,
replacements or relocations in the Demised Premises shall be placed below dropped ceilings, to the inside of interior walls, or above
floors, to the extent reasonably practicable, (b) all such work necessitating entry into the Demised Premises shall be subject to
the provisions of Section 7.04, and (c) in any event, except in the event of an emergency, such installations, replacements
or relocations do not materially and adversely affect the Demised Premises, Tenant’s use of the Demised Premises for the Permitted
Use, or access to the Demised Premises.

 

The Demised Premises exclude
common areas and facilities of the Property, including without limitation exterior walls, the common stairways and stairwells, the parking
garage and bridge to the parking garage entranceways and the main lobby, elevators and elevator wells, fan rooms, electric and telephone
closets (other than those exclusively serving the Demised Premises, if any), janitor closets, freight elevators, and pipes, ducts, conduits,
wires and appurtenant fixtures serving other parts of the Property (exclusively or in common) and other common areas and facilities from
time to time designated as such by Landlord; provided that, in any event, the designation of such common areas and facilities does not
materially and adversely affect the Demised Premises, Tenant’s use of the Demised Premises for the Permitted Use, or access to the
Demised Premises. The Demised Premises also exclude the common corridors, elevator lobby and toilets located on each floor of the Building
that includes the Demised Premises.

 

The Demised Premises are being
leased in their broom-clean, “as-is” condition without representation or warranty by Landlord and Landlord shall not be required
to perform any work in connection with Tenant’s occupancy of the Demised Premises except for Landlord’s Work (as hereinafter
defined) and as otherwise expressly provided for herein. Notwithstanding the foregoing, prior to the Commencement Date, Landlord, at Landlord’s
cost and expense, shall paint the interior walls, replace the carpet throughout the Demised Premises and install vinyl flooring within
the Demised Premises (collectively, the “Landlord’s Work”); provided the same are part of Landlord’s Building
standard materials and finishes, the paint, carpet and tile selection shall be subject to Tenant’s prior approval, which approval
shall not be unreasonably withheld, conditioned or delayed.

 

Section 1.02.         Special Appurtenant Rights. Tenant shall, subject to reasonable closures for repairs and the like, casualty, and condemnation,
have the appurtenant non-exclusive right to use in common with others: (a) the common fitness center (subject only to nominal charges
for use of basic services) and (b) the cafeteria in the Building, in each case subject to reasonable rules established by Landlord from
time to time pursuant to Section 5.04 of this Lease (the facilities referred to in clauses (a) and (b), collectively, the “Amenities”).

 

    2 

     

    

 

Section 1.03.         Term Commencement. The term of this Lease (the “Term”) shall commence on the date (the “Commencement
Date”) that Landlord delivers the Demised Premises to Tenant with Landlord’s Work substantially completed and in the Delivery
Condition (as defined below) and shall expire at 11:59 p.m. on the last day of the thirty-sixth (36th) full calendar month
following the Rent Commencement Date, unless extended or earlier terminated pursuant to the terms hereof. The Commencement Date is anticipated
to occur on September 1, 2021 (the “Anticipated Commencement Date”). If (i) the Commencement Date has not occurred
by January 1, 2022, which date is subject to delays caused by Force Majeure or the action or inaction of Tenant, Tenant shall have the
right to terminate this Lease upon thirty (30) days’ written notice to Landlord. For the purposes hereof, “Delivery Condition”
shall mean that the Landlord’s Work has been substantially completed and the Premises are vacant, broom clean, free of debris, weathertight
with all doors and windows intact, with all existing plumbing, electrical and mechanical equipment and fixtures in good working order
and condition, and free of Hazardous Materials in violation of applicable laws, and in compliance with applicable codes and regulations.
The determination of substantial completion by Landlord’s architect or contractor shall be deemed conclusive between the parties.
When the Commencement Date has been determined in accordance with the preceding sentence, at Landlord’s
request, Tenant shall execute a document setting forth said date and said document shall be deemed a supplement to and part of this Lease.
Tenant may access the Demised Premises prior to the Commencement Date in accordance with and subject to the terms and conditions
of Section 1.04 below. Landlord represents and warrants that the mechanical, electrical, and plumbing systems serving the Demised
Premises will be in good working order as of the Commencement Date. The terms and provisions of this Lease shall be effective as of the
date of this Lease.

 

Section 1.04          Entry
Prior to Commencement. Tenant may, at Tenant’s sole risk and expense, enter the Demised Premises prior to the Commencement
Date upon at least two (2) days’ prior written notice to Landlord, for the purpose of installing Tenant’s tele data and computer
cabling, furniture, fixtures and equipment. The provisions of this Section 1.04 shall apply only during the period prior to the
Commencement Date.

 

During any such entry into
the Demised Premises prior to the Commencement Date, Tenant shall comply with and perform, and shall cause its employees, agents, contractors,
subcontractors, material suppliers and laborers to comply with and perform, all Tenant’s obligations under this Lease except the
obligations to pay Base Rent and additional charges and other charges and other obligations the performance of which would be clearly
incompatible with the installation of decorations, movable furnishings, and business fixtures and equipment pursuant hereto.

 

Any independent contractor
of Tenant (or any employee or agent of Tenant) performing any work in the Demised Premises prior to the Commencement Date shall be subject
to all of the terms, conditions and requirements contained therein (including without limitation the provisions of Article 4).
Neither Tenant nor any Tenant contractor shall interfere in any way with construction of, nor damage, the common areas or other parts
of the Building. Without limitation, Tenant shall require each Tenant contractor to adjust and coordinate any work or installation in
or to the Demised Premises to meet the schedule or requirements of other work being performed by or for Landlord throughout the Building
which shall in all cases have precedence. Neither Tenant, nor any Tenant contractor, shall cause any labor disharmony, and Tenant shall
be responsible for all costs required to produce labor harmony in connection with an entry under this Section. In all events, Tenant shall
indemnify Landlord in the manner provided in Article 12 of this Lease against any claim, loss or cost arising out of any interference
with, or damage to any work in the Building, or any delay thereto, or any increase in the cost thereof to the extent due in whole or in
part to any act, omission, neglect or default by Tenant or any Tenant contractor.

 

    3 

     

    

 

Any requirements of any such
Tenant contractor for services from Landlord or Landlord’s contractor, such as hoisting, electrical or mechanical needs, shall be
paid for by Tenant and arranged between such Tenant contractor and Landlord or Landlord’s contractor. Neither Landlord nor Landlord’s
contractor shall ever be required or obliged to alter the method, time or manner for performing work elsewhere in the Building, on account
of the work of any such Tenant contractor. Tenant shall cause each Tenant contractor performing work on the Demised Premises to clean
up regularly and remove its debris from the Demised Premises and Building.

 

THIS LEASE IS MADE UPON THE COVENANTS, AGREEMENTS,
TERMS, PROVISIONS, CONDITIONS AND LIMITATIONS SET FORTH HEREIN, ALL OF WHICH TENANT AND LANDLORD EACH COVENANT AND AGREE TO PERFORM AND
COMPLY WITH, EXCEPTING ONLY AS TO THE COVENANTS OF THE OTHER:

 

Article 2.

 

Rent

 

Section 2.01.        Base Rent. The “Rent Commencement Date” shall mean the one hundred twenty-first (121st) day
following the Commencement Date. Tenant shall pay to Landlord base rent (“Base Rent”) in equal monthly installments,
in advance, commencing on the Rent Commencement Date and thereafter on the first day of each calendar month during the term, pursuant
to the following schedule:

 

	Period	 	Annual Base Rent	 	Monthly Base Rent	 
	Lease Year 1	 	$215,129.00.00 per annum 
($43.00 per rentable square foot)	 	$	17,927.42	 
	Lease Year 2	 	$220,132.00 per annum 
($44.00 per rentable square foot)	 	$	18,344.33	 
	Lease Year 3	 	$225,135.00 per annum 
($45.00 per rentable square foot)	 	$	18,761.25	 

 

The first “Lease Year”
shall mean the period from the Rent Commencement Date through and including the last day of the calendar month in which the first anniversary
of the Rent Commencement Date occurs; each subsequent Lease Year shall mean the next succeeding 12 month period.

 

Section 2.02.       Additional Rent for Operating Expenses and Taxes.(a)Tenant shall pay as Additional Rent to Landlord Tenant’s Pro Rata
Share of Taxes (as defined below) in excess of Taxes attributable to the Tax Base Year and Tenant’s Pro Rata Share of all Operating
Expenses (as defined below) in excess of the Operating Expenses attributable to the Operating Expense Base Year. “Tax Base Year”
shall mean the City of Waltham fiscal year 2022 (i.e. July 1, 2021 through June 30, 2022). “Operating Expense Base Year”
shall mean calendar year 2022. If at any time within any calendar year, including the Operating Expense Base Year, less than ninety-five
percent (95%) of the rentable space of the Building or Property is leased under agreements for which the Term has commenced, Operating
Expenses for that calendar year during the Term shall be computed and adjusted upward so that Operating Expenses shall at all times equal
the greater of (i) actual Operating Expenses or (ii) an amount extrapolated as if the Building or Property, as applicable, were ninety-five
percent (95%) occupied.

 

    4 

     

    

 

Additional Rent computed under
this Section 2.02 shall be prorated on a per diem basis should this Lease commence or terminate before: (i) the end of
any fiscal tax year for that portion related to Taxes; or (ii) the end of any calendar year for that portion related to Operating
Expenses. Tenant shall make monthly payments of Additional Rent, in advance, commencing on the Rent Commencement Date and the first of
each month thereafter equal to one-twelfth (1/12) of the annual amount of such Additional Rent reasonably projected by Landlord to
be due from Tenant (pro-rated on a per diem basis for any partial month at the beginning or end of the Term) from time to time. Tenant’s
monthly payments may be reasonably revised by Landlord from time to time so that Tenant’s aggregate monthly payments shall equal
the Additional Rent then projected to be due for the real estate tax and/or operating period in question. A final accounting and payment
for each real estate tax and operating period shall be made within thirty (30) days after written notice from Landlord of the exact
amount of such Additional Rent for the fiscal tax year or calendar year in question. In the event Taxes for the Demised Premises, based
upon which Tenant shall have paid Additional Rent, are subsequently reduced or abated, Tenant shall be entitled to receive its allocable
share of the amount abated, provided that the amount of the rebate allocable to Tenant shall in no event exceed the amount of Additional
Rent paid by Tenant for such fiscal year on account of Taxes under this Section 2.02, and further provided the rebate allocable
to Tenant shall be reduced by its allocable share of the reasonable cost of obtaining such reduction or abatement not otherwise paid by
Tenant. The obligations of this paragraph shall survive the expiration of the Lease.

 

“Tenant’s Pro
Rata Share” is calculated by dividing the rentable square foot area of the Demised Premises by the rentable square foot area
of the Building, as of the date of the computation. Tenant’s Pro Rata Share is initially 1.117% and is subject to adjustment if
the rentable square footages of the Demised Premises changes on account of any amendment to the Lease or the Building changes on account
of any reconstruction or expansion by Landlord. The Building, consists of approximately 448,071 rentable square feet.

 

(b)        
“Operating Expenses” for the purpose of this Section shall mean:

 

(1)          All reasonable expenses incurred by Landlord or its agents which shall be directly related to
employment of day and night supervisors, janitors, handymen, engineers, mechanics, electricians, plumbers, porters, cleaners,
accounting and management personnel, and other personnel (including amounts incurred for wages, salaries and other compensation for
services, payroll, social security, unemployment and similar taxes, workers’ compensation, insurance, disability benefits,
pensions, hospitalization, retirement plans and group insurance, uniforms and working clothes and the cleaning thereof, and expenses
imposed on Landlord or its agents pursuant to any collective bargaining agreement), for services in connection with the operation,
management, repair, maintenance, cleaning and protection of the Property and appurtenant common areas and facilities serving the
Demised Premises in a manner customarily provided to first-class suburban mixed-use office parks in suburban Boston, including
without limitation repair and maintenance and providing the services required by this Lease, and, subject to clause (c)(1)
below, personnel engaged in supervision of any of the persons mentioned above (collectively the “Operation of the
Property”);

 

    5 

     

    

 

(2)            
The reasonable cost of services, materials and supplies furnished or used in the Operation of the Property;

 

(3)            
The reasonable cost of replacements for tools and equipment used in the Operation of the Property;

 

(4)            
Commercially reasonable management fees paid to managing agents and for reasonable legal and other professional fees relating to
the Operation of the Property, but excluding legal and other professional fees paid in connection with negotiation, administration or
enforcement of leases; provided, however, that so long as an affiliate of Landlord manages the Property, management fees for the Property
shall not exceed three percent (3%) of the gross rental income of the Property exclusive of the property management fee (including
Base Rent and all Additional Rent) computed on an annual basis plus reimbursements for personnel at the property manager level and below;

 

(5)            
Reasonable insurance premiums in connection with the Operation of the Property, including without limitation for such insurance
coverages and amounts as Landlord or its mortgagees may require from time to time;

 

(6)           
The reasonable costs of plowing and snow removal, maintaining landscaping and storm water drainage systems, and maintaining parking
garages (if any), other parking areas, driveways, roadways, light poles, entry areas, and loading docks in good repair reasonably free
of snow and ice (costs for shared facilities shall be allocated as set forth in clause 8 below);

 

(7)            
Reasonable amounts paid to independent contractors for services, materials and supplies furnished for the Operation of the Property.

 

(8)           
All other reasonable expenses incurred in connection with the Operation of the Property, including capital expenditures (but subject
to paragraph 2.02(c)(15) below) costs of waste removal, security and life safety systems testing, common area electricity and cleaning,
cleaning of tenant premises, and utilities, any expenses in the nature of common area charges for operation, maintenance and repair of
driveways, parking garages, if any, and other facilities or services shared with other buildings or premises to the extent allocable to
the Demised Premises, and any condominium common expenses assessed against a condominium unit comprising the Demised Premises.

 

(c)       
Operating Expenses shall be computed on an accrual basis and shall be determined in accordance with generally accepted accounting
principles consistently applied. They may be incurred directly or by way of reimbursement and shall include taxes applicable thereto.
The following shall be excluded from Operating Expenses:

 

(1)            
Salaries and related benefits or any portion thereof for officers and executives of Landlord or Landlord’s managing agent
above the level of property manager.

 

    6 

     

    

 

(2)            
Depreciation of the Demised Premises or any improvements thereon.

 

(3)            
Interest and amortization on indebtedness (except as expressly provided above).

 

(4)            
Expenses for which Landlord, by the terms of this Lease or otherwise, makes a separate charge.

 

(5)            
The cost of any electric current or other utilities or services paid for by Tenant as a separate charge.

 

(6)            
Leasing fees or commissions.

 

(7)            
Repairs or other work occasioned by the exercise of right of eminent domain.

 

(8)            
Renovating or otherwise improving or decorating, painting or redecorating space for tenants or other occupants or vacant tenant
space, other than maintenance and repairs required by this Lease and work in common areas.

 

(9)            
Landlord’s costs of utilities and other services sold separately to tenants for which Landlord is entitled to be reimbursed
by such tenants as an additional charge over and above the base rent, operating expense, or other rental amounts payable under the lease
with such tenant.

 

(10)          
Expenses in connection with services or other benefits of a type which Tenant is not entitled to receive under the Lease but which
are provided to another tenant or occupant.

 

(11)          
Expenses, including rental, created under any ground or underlying leases.

 

(12)          
Any particular items and services for which a tenant otherwise reimburses Landlord by direct payment over and above the base rent,
operating expenses and other rental amounts payable under the applicable lease.

 

(13)          
Any expense for which Landlord is compensated through proceeds of insurance, condemnation or otherwise.

 

(14)           
Expenses for periods of time not included within the Term.

 

    7 

     

    

 

(15)         
Expenses that are considered capital expenditures under generally accepted accounting principles, except capital expenditures that
(A) will, in Landlord’s reasonable estimate, result in a reduction in Operating Expenses payable by Tenant (in which case Landlord
shall only include each year in Operating Expenses the amount of Landlord’s reasonable estimate of such annual reduction in Operating
Expenses, but may recover the aggregate of such anticipated annual savings over the course of 12 months in equal installments, rather
than over the useful life of such capital item), or (B) are required by changes in law occurring after the Commencement Date. Any
capital expenditures not excluded from Operating Expenses pursuant to this paragraph shall be amortized over the useful life of the item
in question, together with interest at Landlord’s actual interest rate incurred in financing such capital expenditures, or, if no
part of such expenditure is financed, at an imputed interest rate equal to the prime rate of interest as reported by Bank of America,
N.A., plus three percent (3%).

 

(16)          
Cost of rebuilding after casualty or taking, other than insurance deductibles, or in the removal, abatement or remediation of hazardous
substances or materials caused by Landlord or persons other than Tenant, other than in types and amounts customary in the operation of
a first-class office building.

 

(17)        
All Operating Expenses shall be reduced by the amount (net of reasonable collection costs) of any insurance reimbursement, discount
or allowance received by Landlord in connection with such costs.

 

(18)          
Costs incurred in the acquisition, development and renovation of the Property.

 

(19)          
Environmental testing, and the cost of complying with applicable federal, state and local laws, regulations and rules dealing with
handling, storage and disposal of Hazardous Materials (other than those ordinarily found or used in the customary operation of first-class
office buildings), including clean-up costs, and any related matters, except in each case to the extent caused by Tenant or any party
for whom Tenant is legally responsible.

 

(20)          
That portion of employee expenses allocable to work that is not for the benefit of the Property or common areas and facilities
serving the same; if employees work at more than one location, their compensation and other labor costs shall be properly allocated.

 

(21)          
Administrative fees and compensation for Landlord’s and managing agent’s general administrative staff, to the extent
not directly attributable to the management, operation, maintenance and repair of the Property or common areas and facilities serving
the Property (other than the management fee referred to in subsection (b)(4), above).

 

(22)          
Franchise or income taxes imposed on Landlord.

 

(23)          
Costs incurred by Landlord as a result of any violation by Landlord or any other tenant of the terms and conditions of any lease
of space.

 

(24)          
Costs incurred in connection with the operation of the common fitness room and cafeteria, other than utility charges and ordinary
and reasonable maintenance expenses to the extent not covered by fees for use of such facilities.

 

(25)           
Except for Landlord’s deductible, expenses incurred by Landlord for repairs or other work occasioned by fire, windstorm,
or other insurable casualty or condemnation.

 

    8 

     

    

 

(26)          
Expenses incurred by Landlord to lease space to new tenants or to retain existing tenants including leasing commissions, advertising
and promotional expenditures.

 

(27)          
Expenses incurred by Landlord to resolve disputes, enforce or negotiate lease terms with prospective or existing tenants.

 

(28)          
Expenses for the replacement of any item covered under warranty.

 

(29)          
Cost of any penalty or fine incurred by Landlord due to Landlord’s violation of any federal, state or local law or regulation
and cost of any interest or penalties due to late payment by Landlord of any item included in Operating Expenses.

 

(30)          Any expense for which Landlord is reimbursed by a specific tenant including Tenant (other than as a payment for Operating Expenses),
or the cost of any item for which Landlord has been paid or reimbursed by insurance, warranties, service contracts, or condemnation proceeds.

 

(31)          
Costs related to maintaining Landlord’s existence, either as a corporation, partnership, or other entity.

 

(32)          
Payments to affiliates of Landlord but only to the extent that they exceed market charges (Tenant acknowledging that the property
management fee set forth in item (4) in the definition of Operating Expenses above does not exceed market charges).

 

(33)         
Costs relating to the investigations of, encapsulation of, testing for, or removal of Hazardous Substances other than ordinary
and customary disposal of Hazardous Substances that are used in the operation, repair, and maintenance of similar first class Buildings.

 

(34)          
Costs for reserves.

 

(35)          
Except as stated in item (1) of the definition of Operating Expenses, the costs associated with the operation of the business of
the ownership or entity which constitutes “Landlord”, including costs of selling, syndicating, financing or mortgaging any
of Landlord’s interest in the Property.

 

(36)          
Rentals payable under any ground or underlying lease, if any.

 

(37)          Costs
incurred by Landlord to comply with Applicable Laws with respect to conditions existing prior to the Commencement Date.

 

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(d)   
    “Taxes” means all taxes, assessments, betterments, excises, user fees imposed by governmental authorities, and
all other governmental charges and fees of any kind or nature, or impositions or agreed payments in lieu thereof or voluntary payments
made in connection with the provision of governmental services or improvements of benefit to the Building or the Property), assessed or
imposed against the Building or the Property (including without limitation any personal property taxes levied on such property or on fixtures
or equipment used in connection therewith), other than a federal or state income tax of general application. Notwithstanding anything
to the contrary herein, Taxes shall exclude (a) any land acquisition costs, and any other fee, cost or tax (other than increases in real
property taxes resulting from reassessments of the Property) associated with the development or construction of the Property, (b) any
interest or penalties for late payments to the extent relating to a period in which Tenant was not in default of its obligations to pay
Tenant’s Pro Rata Share of Taxes, and (c) any income, capital levy, transfer, capital stock, gift, estate or inheritance tax. The
amount of any special taxes, special assessments and agreed or governmentally imposed “in lieu of tax” or similar charges
shall be included in Taxes for any year but shall be limited to the amount of the installment (plus any interest, other than penalty interest,
payable thereon) of such special tax, special assessment or such charge required to be paid during or with respect to the year in question.
Betterments and assessments, whether or not paid in installments, shall be included in Taxes in any tax year as if the betterment or assessment
were paid in installments over the longest period permitted by law, together with the interest thereon charged by the assessing authority
for the payment of such betterment or assessment in installments.

 

If during the Term the present
system of ad valorem taxation of property shall be changed so that, in lieu of or in addition to the whole or any part of such ad valorem
tax there shall be assessed, levied or imposed on such property or on Landlord any kind or nature of federal, state, county, municipal
or other governmental capital levy, income, sales, franchise, excise or similar tax, assessment, levy, charge or fee (as distinct from
the federal and state income tax in effect on the date of this Lease) measured by or based in whole or in part upon building valuation,
mortgage valuation, rents, services or any other incidents, benefits or measures of real property or real property operations, then any
and all of such taxes, assessments, levies, charges and fees shall be included within the term of Taxes, but only to the extent that the
same would be payable if the Property were the only property of Landlord. Taxes shall also include expenses, including reasonable fees
of attorneys, appraisers and other consultants, incurred in connection with any reasonable efforts to obtain abatements or reduction or
to assure maintenance of Taxes for any year wholly or partially included in the Term, whether or not successful and whether or not such
efforts involved filing of actual abatement applications or initiation of formal proceedings.

 

(e)        
Tenant shall have the right for a period of ninety (90) days (the “Audit Period”) following its receipt
of Landlord’s statement of Additional Rent due on account of Operating Expenses and Taxes to examine and copy Landlord’s books
and records concerning Operating Expenses for the calendar year covered by such statement in the offices of the property manager or another
location reasonably designated by Landlord. Tenant’s audit may be conducted by its employees or its designated accountants, provided
that the accountants must not be employed on a contingency fee basis. If, by notice to Landlord given after such examination but during
the Audit Period (which notice shall be accompanied by documentation evidencing the results of Tenant’s audit to Landlord’s
reasonable satisfaction), Tenant disputes the amount of Additional Rent for Operating Expenses shown on the statement, then Tenant may
request that the amount of Additional Rent for Operating Expenses for the year in question be determined by an audit conducted by a certified
public accountant reasonably selected by both parties, provided that if the parties are unable so to agree on an accountant within ten (10)
days after receipt of Tenant’s notice or if Tenant has disputed Landlord’s calculation of the Tax Base Year, then within twenty (20)
days after Tenant’s notice is given Tenant may submit the dispute for determination by an arbitration conducted by a single arbitrator
in the Boston, Massachusetts Office of the American Arbitration Association (“AAA”) in accordance with the AAA’s
Commercial Arbitration Rules. The arbitrator shall be selected by the AAA and shall be a certified public accountant with at least ten (10)
years of experience in auditing office buildings in the suburban Boston area. If, by notice to Landlord given after such examination but
during the Audit Period, Tenant disputes Landlord’s calculation of the Tax Base Year, and the parties are unable to agree on such
calculation within 30 days after such notice, Tenant may submit such dispute to arbitration in the manner set forth above with respect
to disputes regarding Operating Expenses. Tenant and each person reviewing Landlord’s books and records or participating in the
arbitration shall agree in writing that all information obtained from Landlord’s books and records shall be kept confidential and
used only for the purpose of determining amounts properly due under this Lease. If the Additional Rent due is finally determined to be
less than the Additional Rent paid by Tenant on account of Landlord’s calculation of Operating Expenses, Landlord shall either promptly
refund to Tenant the difference or credit same against Rent next due from Tenant. If the Additional Rent due was less than ninety-five
percent (95%) of the Additional Rent paid by Tenant on account of Landlord’s calculation of Operating Expenses, Landlord shall reimburse
Tenant for the reasonable third-party costs of reviewing Landlord’s books and records. Landlord’s statements of Additional
Rent for Operating Expenses and Taxes shall be conclusive and binding on Tenant unless disputed in accordance with the procedures of this
Section 2.02(e).

 

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(f)        Operating Expenses which are incurred jointly for the benefit of the Building and another building or premises shall be allocated
between the Building and the other building or premises in accordance with the ratio of their respective rentable areas calculated using
a consistent methodology, unless the other building or premises is used for a purpose materially different than the Building, in which
case the affected cost items shall be allocated on a reasonable basis. If the Building and the land appurtenant thereto are not assessed
as a separate tax parcel, then real estate taxes shall be allocated between the Building and the balance of the tax parcel based on the
factors taken into account by the municipal tax assessor or such other reasonably method as Landlord may elect, which may be based on
the relative square footages of the buildings and their use or may be in accordance with the ratio of their respective fair market values.
In the event of a dispute concerning the allocation of Operating Expenses or Taxes, then the matter shall be submitted by Landlord
and Tenant for resolution by arbitration in accordance with the procedures set forth in Section 2.02(e).

 

Section 2.03.             Payment of Rent. The term “Additional Rent” shall mean all amounts due under Section 2.02 for
Operating Expenses and Taxes, and all other amounts (except Base Rent) to be paid by Tenant to Landlord in accordance with the terms of
this Lease, including without limitation payments to Landlord for reimbursement of any costs expended upon an Event of Default by Tenant.
The term “Rent” shall mean Base Rent and Additional Rent. All payments of Rent shall be made without set-off, deduction
or offset except as expressly provided in this Lease. All payments of Rent shall be made to Landlord at c/o Davis Marcus Management,
Inc., c/o The Davis Companies, 125 High Street, Suite 2111, Boston Massachusetts 02110, or as may be otherwise directed by Landlord
in writing. Notwithstanding the foregoing, Tenant may elect to make all payments required under the Lease by electronic payment using
the Automated Clearing House system or other similar system. In such event, Landlord agrees to provide to Tenant the required forms and
information necessary to make such payments. Without limiting the foregoing, except as otherwise expressly provided for herein, Tenant’s
obligation to pay Rent shall be absolute, unconditional, and independent and shall not be discharged or otherwise affected by any law
or regulation now or hereafter applicable to the Demised Premises, or any other restriction on Tenant’s use, or, except as provided
in Article 11, any casualty or taking, or any failure by Landlord to perform or other occurrence; and Tenant assumes the risk of
the foregoing and waives all rights now or hereafter existing to quit or surrender the Demised Premises or any part thereof, to terminate
or cancel this Lease, or to assert any defense in the nature of constructive eviction to any action seeking to recover rent. Subject to
the provisions of this Lease, however, Tenant shall have the right to injunctive relief or to seek judgments for direct money damages
occasioned by Landlord’s breach of its Lease covenants (but may not set-off any such judgment against any rent or other amount owing
hereunder).

 

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Section 2.04.         
Rent from Real Property. It is intended that all Rent payable by Tenant to Landlord, which includes all sums, charges, or
amounts of whatever nature to be paid by Tenant to Landlord in accordance with the provisions of this Lease, shall qualify as “rents
from real property” within the meaning of both Sections 512(b)(3) and 856(d) of the Internal Revenue Code of 1986, as
amended (the “Code”) and the U.S. Department of Treasury Regulations promulgated thereunder (the “Regulations”).
If Landlord, in its sole discretion, determines that there is any risk that all or part of any Rent shall not qualify as “rents
from real property” for the purposes of Section 512(b)(3) or 856(d) of the Code and the Regulations, Tenant agrees (i) to
cooperate with Landlord by entering into such commercially reasonable amendment or amendments to this Lease as Landlord reasonably deems
necessary to qualify all Rent as “rents from real property,” and (ii) to permit an assignment of this Lease; provided,
however, that any adjustments required under this Section shall be made so as to produce the substantially equivalent (in economic terms)
Rent as payable before the adjustment.

 

Section 2.05.          Security Deposit.

 

On the execution on this Lease,
Tenant shall deliver to Landlord as security for the performance of the obligations of Tenant hereunder a security deposit in the initial
amount of Thirty-Five Thousand, Eight Hundred Fifty-Four and 84/100 Dollars ($35,854.84) (the “Security Deposit”).
Tenant’s failure to timely deliver the Security Deposit to Landlord shall constitute an Event of Default under this Lease, without
any notice or cure period under Article 14.

 

Landlord shall be entitled
to use, apply or retain the whole or any part of the Security Deposit following a default by Tenant hereunder, after the expiration of
any applicable notice or cure period (or if Tenant has failed to timely pay Rent or perform any of its other obligations under the Lease
and transmittal of a default notice or running of any cure period is barred or tolled by applicable law). Landlord may, but shall
not be obligated to, apply such amount to the extent necessary to cure the default and/or make any payments due to Landlord hereunder
on account of such default, including without limitation any unpaid Rent, any damages arising from a termination of this Lease in accordance
with its terms, and for any damages arising from any rejection of this Lease in a bankruptcy proceeding commenced by or against Tenant.
The Security Deposit may be mingled with other funds of Landlord, and no fiduciary relationship shall be created with respect to such
Security Deposit, nor shall Landlord be liable to pay Tenant interest thereon. In the event Landlord applies or retains any portion or
all of the Security Deposit, Tenant shall forthwith restore the amount so applied or retained so that at all times the amount deposited
shall be the full amount of the required Security Deposit. Within sixty (60) days after the expiration or sooner termination of the
Term, the Security Deposit, to the extent not applied, shall be returned to Tenant, without interest. For purposes of this Section 2.05,
a default shall also include any default that is prevented or delayed from ripening into an Event of Default due to Landlord’s inability
to give any required notice or the tolling of any grace or cure period caused by any stay or injunction arising from the bankruptcy of
Tenant.

 

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In the event of a sale of
the Property or lease, conveyance or transfer of the Property, Landlord shall have the right to transfer the Security Deposit to the transferee
(“New Landlord”) and Landlord shall thereupon be released by Tenant from all liability for the return of the Security
Deposit; and Tenant agrees to look to the New Landlord solely for the return of said Security Deposit to the extent such Security Deposit
was actually transferred or credited to the New Landlord. The provisions hereof shall apply to every transfer or assignment made of the
security to a New Landlord. Tenant further covenants that it will not assign or encumber or attempt to assign or encumber the monies deposited
herein as security, and that neither Landlord nor its successors or assigns shall be bound by any assignment, encumbrance, attempted assignment
or attempted encumbrance.

 

Article 3.

 

Utility Services

 

Section 3.01.        
Electricity. From and after the Commencement Date, Tenant agrees to pay, or cause to be paid, as Additional Rent, all charges
for electricity consumed in the Demised Premises (or by any special facilities serving the Demised Premises). Tenant’s charges for
such utility usage shall be based upon Tenant’s actual usage as determined by Landlord’s reading of check-meters currently
serving the Demised Premises. Tenant shall make monthly payments of Additional Rent on account of electricity, in advance, on the Commencement
Date and the first of each month thereafter equal to one-twelfth (1/12) of the annual amount of such Additional Rent reasonably projected
by Landlord, based upon prior usage at the relevant building or as projected by Landlord’s engineer, to be due from Tenant (pro-rated
for any partial month at the beginning or end of the Term) from time to time. Tenant’s monthly payments may be reasonably revised
by Landlord from time to time so that Tenant’s aggregate monthly payments shall equal the Additional Rent then projected to be due
for the year in question. Landlord shall provide Tenant with a statement showing Tenant’s actual usage of electricity based on the
reading of Tenant’s check-meters no less often than annually. If the Additional Rent due for electricity is less than the Additional
Rent for electricity paid by Tenant on account of Landlord’s calculation of estimated electrical charges, Landlord shall, at Landlord’s
election, either promptly refund to Tenant the difference or credit same against Rent next due from Tenant. If the Additional Rent due
for electricity is more than Landlord’s calculation of estimated electrical charges, Tenant shall pay such amount to Landlord within
30 days following receipt of the bill therefor. If such usage is not separately metered or check-metered from time to time, such
usage and billing shall be based upon the reasonable estimate of Landlord’s consulting engineer. If Tenant is directed by Landlord
to make payments directly to the utility company for separately metered electricity, then Tenant shall pay such bills directly to the
utility company, Tenant shall contract directly for electric service, and shall pay all bills for such utility service as and when due.
Tenant shall pay all costs associated with obtaining the electricity service, including costs for equipment installation, maintenance
and repair; exit fees, stranded cost charges, and the like; provided, however, Tenant shall not be responsible for costs of the initial
installation of such services.

 

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Section 3.02.        
Other Landlord Services. Landlord shall provide Tenant with access to the Demised Premises 24 hours per day, 365 days
per year, subject to matters described in Section 20.14 and Landlord’s reasonable security measures, and subject to
Landlord’s right to prohibit, restrict or limit access to the Building or the Demised Premises in emergency situations if Landlord
determines, in its reasonable discretion, that it is necessary or advisable to do so in order to prevent or protect against death or injury
to persons or damage to property. Landlord agrees to furnish to the Demised Premises the services, and for the periods, set forth on Exhibit 3.02
(with the cost of such services included in Operating Expenses). All other services necessary for the use, occupancy or operation of the
Demised Premises, or to maintain the same in good condition and repair, shall be provided by Tenant. Landlord shall not be required to
provide services which exceed the capacity of the building systems serving the Demised Premises and shall not be required to act (or prevented
from acting) in any manner which might create unsafe conditions, violate applicable legal requirements, or be inconsistent with standards
for the operation of comparable institutionally-financed office buildings. In any event, subject to Section 7.04 below, Landlord’s
obligation to provide such services shall be subject to interruption due to any act or omission of Tenant (including a failure to pay
for utilities), accident, to the making of repairs, alterations or improvements (other than those due to the gross negligence or willful
misconduct of Landlord), to labor difficulties, to trouble in obtaining fuel, electricity, service or supplies from the sources from which
they are usually obtained for such building, governmental restraints, or to any cause beyond Landlord’s reasonable control. In the
event of any such disruption or interruption (other than an act or omission of Tenant) prior to the time when Tenant is responsible for
providing such services, Landlord will use diligent efforts to restore the services, or to cause the services to be restored, as promptly
as reasonably possible. In no event shall Landlord be liable for any interruption or delay in any of the above services for any of such
causes except as provided in Section 7.04.

 

Section 3.03.          Normal Building Hours. Normal Building hours of operation are Monday through Friday, 8 a.m. to 6 p.m., and with
at least 24 hours’ prior written notice to Landlord, Saturday 8 a.m. to 1 p.m., exclusive of state and federal holidays
and such other days as Landlord may reasonably designate as Building holidays (e.g., the day after Thanksgiving).

 

Article 4.

 

Insurance

 

Section 4.01.         Compliance
with Property Insurance. Tenant shall not permit any use of the Demised Premises which will make voidable any insurance on the Property,
or on the contents of said property, or which shall be contrary to any law or regulation from time to time established by the Insurance
Services Office, or any similar body succeeding to its powers. Tenant shall, within ten (10) days of demand, reimburse Landlord in full
for its allocable share of any extra insurance premiums caused by the particular use or manner of use of the Demised Premises by Tenant
(as opposed to office use, generally).

 

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Section 4.02.            Tenant’s Required Insurance. Tenant shall maintain with respect to the Demised Premises and the property of which
the Demised Premises are a part, the following insurance:

 

(a)      Commercial general liability insurance including Broad Form Project Damage and Contractual Liability with respect to the Demised
Premises, their use, occupancy and operation, under which Tenant is the named insured and Landlord, Landlord’s lenders, managing
agent, the association of unit owners of the Reservoir Woods Primary Condominium, The Prudential
Life Insurance Company of America, and any Landlord agents or contractors (provided that Landlord has identified such mortgagee,
agents and/or contractors by notice to Tenant)are named as additional insureds with respect to their vicarious liability for covered claims
arising from Tenant’s use or occupancy of the Demised Premises or the Property. Such coverage shall be written on an occurrence
basis, with the following minimum limits: General Aggregate $2,000,000.00; Products/Completed Operations Aggregate $2,000,000.00; Each
Occurrence $1,000,000.00; Personal and Advertising Injury $1,000,000.00; Medical Payments $5,000.00 per person. In addition, Tenant shall
maintain Umbrella/Excess Liability insurance on a following form basis with the following minimum limits: General Aggregate $4,000,000.00;
Each Occurrence $4,000,000.00;

 

(b)    
Commercial property insurance on an “all risk” basis, and specifically including sprinkler leakages, vandalism, and
malicious mischief and plate glass damage covering all property of every description owned or brought into the Demised Premises by Tenant,
its employees, agents, contractors, subtenants, or assignees including stock-in-trade, furniture, fittings, installations, alterations,
additions, partitions and fixtures or anything in the nature of a leasehold improvement made or installed by or on behalf of Tenant, including
without limitation any Tenant Work (as defined in Section 8.01, below), in an amount of not less than one hundred percent (100%)
of the full replacement cost thereof as shall from time to time be reasonably approved by Landlord in form satisfactory to Landlord in
its reasonable discretion and plate glass insurance coverage covering all plate glass within the Demised Premises. Landlord shall be named
as loss payee on such property insurance to the extent of its interest;

 

(c)     
Policies of insurance against loss or damage arising from incidents relating to the air-conditioning and/or heating system, electrical
systems, steam pipes, steam turbines, steam engines, steam boilers, other pressure vessels, high pressure piping and machinery, if any,
installed in the Demised Premises in an amount satisfactory to Landlord in its reasonable discretion;

 

(d)    
Workers’ compensation and occupational disease insurance with statutory limits and Employer’s Liability insurance with
the following limits: Bodily injury by disease per person $1,000,000.00; Bodily injury by accident policy limit $1,000,000.00; Bodily
injury by disease policy limit $1,000,000.00;

 

(e)     
Business automobile liability insurance including owned, hired and non-owned automobiles, in an amount not less than One Million
Dollars ($1,000,000) combined single limit per occurrence, with such commercially reasonable increases as Landlord may require from
time to time;

 

(f)       Business interruption insurance insuring interruption or stoppage of Tenant’s business at the Demised Premises for a period
of not less than twelve (12) months; and

 

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(g)    
With increases in the foregoing limits, and any other form or forms of insurance as Landlord may reasonably require from time to
time, with any other form(s) of insurance in amounts and for insurable risks (on commercially reasonable terms) against which a prudent
tenant would protect itself to the extent landlords of comparable buildings in the vicinity of the Property require their tenants to carry
such other form(s) of insurance.

 

Each policy of insurance required
under this Section 4.02 shall be issued by companies rated not less than A-/X by Best’s Rating Service (or its successor)
or otherwise acceptable to Landlord in Landlord’s reasonable discretion and licensed to do business in The Commonwealth of Massachusetts,
and shall be noncancellable with respect to Landlord and any mortgagee (provided that Landlord has identified such mortgagee by notice
to Tenant), without thirty (30) days’ prior notice to Landlord and such mortgagee. Tenant shall deliver to Landlord and any mortgagee
(provided that Landlord has identified such mortgagee by notice to Tenant) certificate(s) of insurance evidencing the coverage required
hereunder upon commencement of the Term and no later than thirty (30) days prior to the expiration of the coverage evidenced by a prior
certificate. Tenant’s liability insurance policy shall be primary with respect to all claims for which Tenant is to indemnify Landlord
under Article 12 to the maximum extent permitted by law, all furnishings, fixtures, equipment, effects and property of Tenant
and of all persons claiming through Tenant which from time to time may be on the Demised Premises or Property or in transit thereto or
therefrom (“Tenant Property”) shall be at the sole risk of Tenant, and if the whole or any part thereof shall be destroyed
or damaged by fire, water or otherwise, or by the leakage or bursting of water pipes, or other pipes, by theft or from any other cause,
no part of said loss or damage is to be charged to or be borne by Landlord. Tenant Property expressly includes, without limitation, all
business and trade fixtures and equipment, including without limitation any security or access control systems installed for the Demised
Premises, filing cabinets and racks, removable cubicles and partitions, kitchen equipment, computers and related equipment, raised flooring,
supplemental cooling equipment, audiovisual and telecommunications equipment, non-building standard signage, and other tenant equipment
installations, in each case including related conduits, cabling and brackets or mounting components therefore and any connectors to base
building systems and in each case whether installed or affixed in or about the Demised Premises, in building core areas, or elsewhere
at the Property, unless, subject to the provisions of Section 4.05, the same is caused by the gross negligence or willful misconduct
of Landlord or its agents, employees or contractors.

 

Section 4.03.          Landlord’s
Required Insurance. Landlord shall maintain at least Five Million Dollars ($5,000,000.00) of commercial general liability insurance
(including so-called umbrella coverage) covering the Building. Landlord shall maintain physical damage and casualty insurance on an “all
risk” basis on the Building (excluding furnishings, fixtures, equipment and other personal property of Tenant) in the amount of
the full replacement cost of the Demised Premises (other than Tenant Work) as reasonably determined by Landlord, and shall also maintain
boiler and rent loss insurance in amounts required by Landlord’s mortgage lender (or, if there is no mortgage lender, consistent
with standards for comparable institutional buildings). Landlord’s insurance shall be issued by companies rated not less than A-/X
by Best’s Rating Service (or its successor) and licensed to do business in The Commonwealth of Massachusetts. Landlord shall cause
the casualty insurance replacement cost coverage to be updated as reasonably necessary. Any or all of Landlord’s insurance may
be provided by blanket coverage maintained by Landlord or any affiliate of Landlord under its insurance program for its portfolio of
properties. Landlord may maintain other coverages in such amounts as are required by Landlord’s mortgage lender or otherwise as
reasonably determined by Landlord.

 

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Section 4.04.          Tenant Work Insurance. In addition, during the performance of any Tenant Work, in addition to the above coverage required
to be maintained by Tenant, Tenant shall cause the general contractor performing any work in the Demised Premises (and the general contractor
shall cause its subcontractors) to carry: (a) workers’ compensation and occupational disease insurance in statutory amounts; (b)
employer’s liability insurance with a limit of not less than One Million Dollars ($1,000,000); (c) commercial general liability
insurance, including personal injury and property damage, on an occurrence basis in the amount of a combined single limit of not less
than One Million Dollars ($1,000,000.00) for each occurrence, such limit to be increased to Five Million Dollars ($5,000,000.00) if the
cost of the work exceeds One Million Dollars ($1,000,0000.00); and (d) all risk installation floater insurance (on the complete value/full
coverage form) to protect Landlord’s interest and that of Tenant, contractors and subcontractors during the course of the construction,
with limits of not less than the total replacement cost of the completed improvements under construction. Such
contractor insurance policies shall be endorsed to include Landlord, The Prudential Life Insurance Company of America, the condominium
association, Landlord’s lenders, managing agent, and any other third party providing services to the Building (provided that Landlord
has identified such mortgagee and/or third parties by notice to Tenant) as additional insureds.

 

Section 4.05.         Waiver
of Subrogation. Any insurance carried by either party with respect to the Demised Premises or property therein or occurrences thereon
shall, if it can be so written without additional premium or with an additional premium which the other party agrees to pay, include
a clause or endorsement denying to the insurer rights of subrogation against the other party to the extent rights have been waived by
the insured hereunder prior to occurrence of injury or loss. Each party, notwithstanding any provisions of this Lease to the contrary,
hereby waives any rights of recovery against the other for injury or loss due to hazards covered by property insurance carried (or required
to be carried) by the party suffering the injury or loss to the extent of the coverage provided (or to be provided) thereunder.

 

Section 4.06.          Certificates of Insurance. Within fifteen (15) days of request, each party shall provide the other with certificates
of all insurance maintained or required to be maintained under this Lease. All such insurance certificates shall provide that such policy
shall not be canceled or reduced as to coverage or amount without at least thirty (30) days prior written notice to each insured
named therein. Tenant shall provide to Landlord certificates of all insurance maintained or required to be maintained under this Lease
prior to any entry into the Demised Premises pursuant to Section 1.04.

 

Article 5.

 

Use of Demised Premises

 

Section 5.01.          Permitted Use. Tenant covenants and agrees to use the Demised Premises only for the purposes of business and professional
office use and for no other purpose (the “Permitted Use”).

 

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Section 5.02.            
Compliance With Laws.

 

(a)       Tenant will not make or permit any occupancy or use of any part of the Demised Premises for any hazardous, offensive, dangerous,
noxious or unlawful occupation, trade, business or purpose or any occupancy or use thereof which is contrary to any law, by-law, ordinance,
rule, permit or license, and will not cause, maintain or permit any nuisance in, at or on the Demised Premises. Tenant shall not conduct
or permit any auctions or sheriff’s sales at the Property. Tenant shall not place any loads upon the floors, walls, or ceiling which
endanger the structure, or place any Hazardous Materials in the drainage system of the Demised Premises or Property, or overload existing
electrical or other mechanical systems. Tenant shall not use any machinery or equipment in the Demised Premises that causes excessive
noise or vibration, as reasonably determined by Landlord, or that unreasonably interferes with the use or enjoyment of the Property by
other tenants or lawful occupants. No refuse shall be dumped upon or permitted to remain outside of the Demised Premises except in trash
containers placed inside exterior enclosures designated by Landlord for that purpose. No sign, antenna or other structure or thing shall
be erected or placed on the Demised Premises or any part of the exterior of any building or on the land comprising the Property or erected
so as to be visible from the exterior of the Building except as expressly permitted pursuant to Section 20.12 of this Lease. Tenant
will not cause or permit any waste, overloading, stripping, damage, disfigurement or injury of or to the Property or the Demised Premises
or any part thereof.

 

(b)     
Tenant agrees not to generate, store or use any Hazardous Materials (as hereinafter defined) on or about the Demised Premises,
except those used by Tenant in its general office operations and janitorial services, in both cases limited to such Hazardous Materials
in such amounts as are customarily used in general office uses and for janitorial service provided to general office uses and in compliance
with applicable Environmental Laws. For purposes of this Lease, “Hazardous Materials” shall mean any substance regulated
under any Environmental Law, including those substances defined in 42 U.S.C. Sec. 9601(14) or any related or applicable federal, state
or local statute, law, regulation, or ordinance, pollutants or contaminants (as defined in 42 U.S.C. Sec. 9601(33), petroleum (including
crude oil or any fraction thereof), any form of natural or synthetic gas, sludge (as defined in 42 U.S.C. Sec. 6903(26A), radioactive
substances, hazardous waste (as defined in 42 U.S.C. Sec. 6903(27)) and any other hazardous wastes, hazardous substances, contaminants,
pollutants or materials as defined, regulated or described in any of the Environmental Laws. As used in this Lease, “Environmental
Laws” means all federal, state and local laws relating to the protection of the environment or health and safety, and any rule
or regulation promulgated thereunder and any order, standard, interim regulation, moratorium, policy or guideline of or pertaining to
any federal, state or local government, department or agency, including but not limited to the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended, the Superfund Amendments and Reauthorization Act of 1986, the Clean Water Act, the Clean Air Act,
the Toxic Substances Control Act, the Occupational Safety and Health Act, the Federal Insecticide, Fungicide and Rodenticide Act, the
Marine Protection, Research, and Sanctuaries Act, the National Environmental Policy Act, the Noise Control Act, the Safe Drinking Water
Act, the Resource Conservation and Recovery Act, as amended, the Hazardous Material Transportation Act, the Refuse Act, the Uranium Mill
Tailings Radiation Control Act and the Atomic Energy Act and regulations of the Nuclear Regulatory Agency, Massachusetts General Laws
Chapters 21C and 21E and any other state and local counterparts or related statutes, laws, regulations, and order and treaties of the
United States.

 

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(c)     
Tenant shall permit Landlord and Landlord’s agents, representatives and employees, including, without limitation, legal
counsel and environmental consultants and engineers, access to the Demised Premises during the Term upon at least twenty-four (24) hours’
prior notice (which may be verbal, and no such prior notice is necessary in the event of an emergency threatening life or property) to
Legal@aerovateTx.com or such other employee of Tenant as Tenant may designate to Landlord from time to time for purposes of conducting
environmental assessments; provided, however, that such assessments may only be conducted if (i) Landlord has reason to believe that
there has been a release or threat of release of Hazardous Materials in a reportable quantity at the Demised Premises or arising from
Tenant’s activities at the Property or (ii) requested by an actual or prospective mortgage lender, purchaser or equity investor.
Landlord shall permit Tenant or Tenant’s representatives to be present during any such assessment, and any investigation, testing
or sampling. In making any such entry, Landlord shall avoid materially interfering with Tenant’s use of the Demised Premises, and
upon completion of Landlord’s assessment, investigation, and sampling, shall substantially repair and restore the affected areas
of the Demised Premises from any damage caused by the assessment. Such assessment shall be at Landlord’s expense, provided that
if the assessment shows that a release of Hazardous Materials by Tenant in violation of this Lease has occurred, then Landlord’s
actual, reasonable, out-of-pocket costs relating to such assessment shall be reimbursed by Tenant within thirty (30) days of Tenant’s
receipt of Landlord’s invoice therefor. Tenant shall reimburse Landlord within thirty (30) days of Tenant’s receipt of Landlord’s
invoice therefor for all costs reasonably incurred by Landlord, for independent consultants or otherwise, in connection with inspections,
investigations, and/or response actions concerning a release or threat of release of Hazardous Materials at the Demised Premises except
to the extent caused by Landlord or its agents, contractors or employees.

 

Section 5.03.            Hazardous
Materials Indemnity. Tenant shall indemnify, defend with counsel reasonably acceptable to Landlord and hold Landlord, Landlord’s
managing agent and any mortgagee of the Demised Premises and any other Indemnitee (as defined in Section 12.01) fully harmless
from and against any and all liability, loss, suits, claims, actions, causes of action, proceedings, demands, costs, penalties, damages,
fines and expenses, including, without limitation, reasonable attorneys’ fees, consultants’ fees, laboratory fees and clean-up
costs, and the costs and expenses of investigating and defending any claims or proceedings, resulting from, or to the extent attributable
to (i) the presence of any Hazardous Materials on the Property or the Demised Premises arising from the action or negligence of
Tenant, its officers, employees, contractors, and agents, or arising out of the generation, storage, treatment, handling, transportation,
disposal or release by such party (or their respective officers, employees, contractors, agents or invitees) of any Hazardous Materials
at or near the Property or the Demised Premises, (ii) any violation(s) by Tenant or its officers, employees, contractors, agents
or invitees of any applicable law regarding Hazardous Materials, and (iii) any breach by Tenant of the obligations set forth in Sections
5.02(b) and (c) of this Lease.

 

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

 

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Section 5.04.        
Rules and Regulations. Rules and regulations, provided the same are not inconsistent with or in limitation of the provisions
of this Lease affecting the cleanliness, safety, occupation and use of the Demised Premises and common areas of the Property, which in
the judgment of Landlord are reasonable, shall be observed by Tenant and its employees, and Tenant shall use reasonable efforts to cause
its agents, contractors, customers and business invitees to comply therewith. Landlord’s rules and regulations shall not restrict
the conduct of Tenant’s employees while they are within the Demised Premises (and not visible from outside the Demised Premises)
except as necessary to comply with law, avoid unsafe conditions, or operate the Property in accordance with first-class office building
in the suburban Boston Area. Tenant acknowledges that the rules and regulations may include provisions necessary to comply with requirements
of governmental approvals. Landlord agrees that the rules and regulations shall not be applied in a discriminatory manner.

 

Article 6.

 

Compliance with Legal
Requirements

 

Section 6.01.         Legal
Requirements. Throughout the Term, Tenant, at its sole cost and expense, will promptly comply with all requirements of law related
in any way to the Demised Premises, any requirements of law related specifically to Tenant Work or to Tenant’s specific use and
occupation of the Demised Premises or with respect to any modifications or renovation to the Demised Premises proposed by Tenant, and
will procure and maintain all permits, licenses and other authorizations required with respect to the Demised Premises, or any part thereof,
for the lawful and proper operation, use and maintenance of the Demised Premises or any part thereof by Tenant or its officers, employees,
contractors, agents or invitees. Tenant shall in each and every event and instance, at its sole cost and expense, be responsible for
compliance with all codes and regulations with respect or relating to the Demised Premises, including, without limitation, those occasioned
by work performed by or for Tenant. Notwithstanding anything contained in this Lease to the contrary, Tenant shall have no obligation
to bring elements of the foundations, exterior walls, structural floors, and roof of the Building, and the portions of the electrical,
heating, ventilation and air conditioning systems of the Building that serve other tenants (collectively, the “Base Building”)
into compliance with applicable laws except to the extent such compliance is required as a result of Tenant Work, Tenant’s particular
use of the Demised Premises, as opposed to office use, generally, Tenant’s negligence or willful misconduct (subject to the provisions
of Section 4.05), or an Event of Default of Tenant under this Lease.

 

Article 7.

 

Construction, Condition, Repairs and Maintenance of Demised Premises

 

Section 7.01.         Landlord Maintenance Obligations. Throughout the Term, and except as provided in Section 7.02, but subject to
the terms of Article 11, Landlord shall make such repairs to the Base Building and the common areas of the Property as may
be necessary to keep them in good condition in accordance with standards for a first-class office building in the suburban Boston area,
reasonable wear and tear excepted.

 

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Section 7.02.             Tenant’s
Maintenance Obligations. Throughout the Term, and except as provided in Section 7.01, but subject to the terms of Article 11,
Tenant shall maintain and repair the Demised Premises, and any Tenant Work, and any Building systems serving exclusively the Demised
Premises in accordance with standards for a first-class office building in the suburban Boston area, reasonable wear and tear excepted.

 

Section 7.03.             Landlord’s Right of Entry. Landlord, or agents or prospective investors, lenders or purchasers of Landlord, at reasonable
times, reserves the right to enter upon the Demised Premises to examine the condition thereof, to make repairs, alterations and additions
as Landlord is required or permitted under the terms of this Lease, and at any reasonable time within twelve (12) months before the
expiration of the Term to show the Demised Premises to prospective tenants. Other than in the event of an emergency, Tenant shall have
the right to have a representative present in connection with any entry by Landlord pursuant to this Section 7.03, but such entry
shall not be conditioned upon such representative being present. In connection with such access, Landlord shall not unreasonably
interfere with the operation or work at the Demised Premises and shall give Tenant reasonable prior notice (except in the event of an
emergency, in which event such notice shall be as prompt as possible under the circumstances) of Landlord’s intent to access the
Demised Premises.

 

Section 7.04.             Service Interruptions. In the event that there shall be an interruption, curtailment or suspension of any service required
to be provided by Landlord pursuant to Exhibit 3.02 (and no reasonably equivalent alternative service or supply is provided
by Landlord) that shall materially interfere with Tenant’s use and enjoyment of all or a portion of the Demised Premises for the
Permitted Use, and Tenant actually ceases to use the affected portion of the Demised Premises (a “Service Interruption”),
and if (i) such Service Interruption shall continue for five (5) consecutive business days following receipt by Landlord of written
notice from Tenant describing such Service Interruption (the “Service Interruption Notice”) and (ii) such Service
Interruption shall not have been caused, in whole or in part, by reasons beyond Landlord’s reasonable control or by an act or omission
in violation of this Lease by Tenant or by any negligence of Tenant, or Tenant’s agents, employees, contractors or invitees (a Service
Interruption that satisfies the foregoing conditions being referred to hereinafter as a “Material Service Interruption”)
then, as liquidated damages and Tenant’s sole remedy at law or equity, Tenant shall be entitled to an equitable abatement of Rent,
based on the nature and duration of the Material Service Interruption, the area of the Demised Premises affected, and the then current
Rent amounts, for the period that shall begin on the commencement of such Material Service Interruption and that shall end on the day
such Material Service Interruption shall cease.

 

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Article 8.

 

Alterations and Additions

 

Section 8.01.             
Tenant Work.

 

(a)        Tenant shall not make any additional alterations or additions, structural or non-structural, to the Demised Premises without first
obtaining the written consent of Landlord on each occasion, which consent shall not be unreasonably withheld, conditioned or delayed.
Any such alterations or additions are referred to herein as “Tenant Work”. For non-structural alterations or additions
valued at less than Fifty Thousand Dollars ($50,000.00) which do not affect any of the exterior, lobbies, elevator, roof, structure, or
building systems in or at the Building, Landlord’s consent shall not be required (“Minor Alterations”); provided,
however, that (i) if such Minor Alteration requires a building permit from the City of Waltham, Landlord’s reasonable consent shall
be required, provided that such consent shall not be unreasonably withheld, conditioned or delayed, and (ii) upon the expiration
or termination of this Lease, Tenant shall not be required to readapt, repair and restore the affected portion of the Demised Premises
to substantially the condition the same were in prior to such Minor Alteration. Landlord shall use commercially reasonable efforts to
provide, in writing, its consent or its withholding of consent to any Alterations request from Tenant within ten (10) days following receipt
of the Alterations request and shall state with reasonable detail the reasons for Landlord’s withholding of consent and the modifications
required to be made to the Alterations in order for Landlord to provide its consent to the same. If Landlord fails to so respond within
such ten (10) day period, Tenant may deliver a second request to Landlord with a legend in bold and prominent print stating that “FAILURE
TO REPLY TO THIS REQUEST FOR APPROVAL OF TENANT’S ALTERATIONS WITHIN FIVE (5) BUSINESS DAYS MAY BE DEEMED TO BE LANDLORD’S
APPROVAL” and, if Landlord fails to approve or disapprove of the Alterations in question within five (5) business days following
delivery of such second notice, then Landlord shall be deemed to have consented to the proposed Alterations. Additionally, Tenant shall
give prior written notice to Landlord of any Minor Alteration regardless of whether Landlord’s consent is required. Wherever consent
is required, it shall include approval of plans, if any, and contractors and the insurance required under Section 4.04. Tenant
shall notify Landlord of all alterations or additions and provide Landlord with copies of any construction plans therefor whether or not
Landlord’s consent is required. All such allowed alterations, including reasonable third-party costs of review in seeking Landlord’s
approval if such approval is required, shall be made at Tenant’s expense by an Approved Contractor (as defined below), in compliance
with all applicable laws, and shall be of a quality at least equal to first-class office standards. All alterations and additions performed
by Tenant (but excluding Minor Alterations) shall be performed by an Approved Contractor providing full payment and completion bonds,
if requested by Landlord, for Tenant Work costing in excess of $250,000.00. Upon the expiration or earlier termination of this Lease,
Tenant shall assign to Landlord (without recourse) all warranties and guaranties then in effect for all work performed by Tenant at the
Demised Premises.

 

For Purposes of this Section
8.01(a), an “Approved Contractor” shall mean a contractor or mechanic identified by Tenant in writing, who has
been approved by Landlord (such approval not to be unreasonably withheld, conditioned or delayed if the proposed contractor is a licensed
and insured contractor with more than ten (10) years’ experience in performing construction of similar tenant improvements in comparable
first-class mixed-use office parks in suburban Boston).

 

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(b)       Except as set forth below, any alterations or additions made by Tenant which are permanently affixed to the Demised Premises or
affixed in a manner so that they cannot be removed without defacing or damaging the Demised Premises shall, except as expressly provided
in this paragraph, become property of Landlord at the termination of occupancy as provided herein. If Landlord notifies Tenant, in connection
with any consent to alterations or additions requested by Tenant, that Tenant shall be required to remove such alterations or additions
at the expiration of the Term, or if any such alterations or additions did not require Landlord’s consent pursuant to the terms
hereof, then such alterations or additions shall be removed by Tenant, at its expense, with minimal disturbance to the Demised Premises
prior to the expiration of the Term. Notwithstanding the immediately preceding sentence to the contrary, Landlord may only require Tenant
to remove items of Tenant Work that are above or otherwise inconsistent with first-class office standards. Tenant’s trade fixtures
and personal property and equipment, which are not affixed or which may be removed with minimal disturbance or repairable damage, may
be removed by Tenant during the Term, and shall be removed prior to the expiration of the Term, provided such disturbance or damage is
restored and repaired so that the Demised Premises are left in at least as good a condition as they were in at the commencement of the
Term, reasonable wear and tear excepted. The Demised Premises shall otherwise be left in the same condition as at the commencement of
the Term, reasonable wear, tear and, to the extent Landlord is required to restore the same, damage by fire or other casualty or taking
or condemnation by public authority excepted.

 

Article 9.

 

Discharge of Liens

 

Section 9.01.             No Liens. Tenant will not create or permit to be created or to remain, and within ten (10) days after notice from Landlord
will discharge or bond off, at its sole cost and expense and to the reasonable satisfaction of Landlord and any mortgagee, any lien, encumbrance
or charge (on account of any mechanic’s, laborer’s, materialmen’s or vendor’s lien, or any mortgage, or otherwise)
made or suffered by Tenant which is or might be or become a lien, encumbrance or charge upon the Demised Premises (or any part thereof
or upon Tenant’s leasehold interest therein), the Property or any part thereof, or the rents, issues, income or profits accruing
to Landlord therefrom, and Tenant will not suffer any other matter or thing within its control whereby the estate, rights and interest
of Landlord in the Demised Premises or any part thereof might be materially impaired. Notice is hereby given that Landlord shall not be
liable for any labor or materials furnished or to be furnished to Tenant and that no mechanic’s or other lien for any such labor
or materials shall attach to or affect the estate or interest of Landlord in and to the Demised Premises or the Property, and upon Landlord’s
request, to the maximum extent permitted by law, Tenant shall cause any Tenant contractor to execute and deliver an acknowledgment confirming
the same in such form as Landlord may from time to time prescribe.

 

Article 10.

 

Subordination

 

Section 10.01.            Lease Subordinate to Mortgages.

 

(a)        The interest of Tenant hereunder shall be subordinate to the rights of any holder of a mortgage or holder of a ground lease of
property which includes the Demised Premises, (any such holder, a “Mortgagee”), and executed and recorded subsequent
to the date of this Lease, unless such Mortgagee shall otherwise so elect, and in any event provided that such holder shall agree to recognize
in writing the right of Tenant to use and occupy the Demised Premises and exercise all of its other rights under this Lease upon the payment
of Rent, and the performance by Tenant of Tenant’s obligations hereunder (but without any assumption by such holder of Landlord’s
obligations under this Lease which relate to periods prior to the date such holder acquired title to or took possession of the Demised
Premises); or

 

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(b)       If any Mortgagee shall so elect, this Lease, and the rights of Tenant hereunder, shall be superior in right to the rights of such
Mortgagee, with the same force and effect as if this Lease had been executed and delivered, and recorded, or a statutory notice hereof
recorded, prior to the execution, delivery and recording of any such mortgage.

 

Any election as to Subsection (b)
above shall become effective upon either notice from such Mortgagee to Tenant in the same fashion as notices from Landlord to Tenant are
to be given hereunder or by the recording in the appropriate registry or recorder’s office of an instrument, in which such Mortgagee
subordinates its rights under such mortgage or ground lease to this Lease.

 

In the event any Mortgagee
shall succeed to the interest of Landlord, whether by judicial or non-judicial foreclosure or otherwise, at the election of such Mortgagee,
Tenant shall, and does hereby agree to attorn to such Mortgagee and to recognize such Mortgagee as its Landlord and Tenant shall promptly
execute and deliver any commercially reasonable instrument that such Mortgagee may reasonably request to evidence such attornment provided
such document contains reasonably satisfactory non-disturbance provisions to allow Tenant to remain in occupancy pursuant to this Lease
and exercise all of its other rights under this Lease as long as no Event of Default exists. The form of instrument attached as Exhibit
10.01 shall be deemed acceptable to Tenant. If requested by any such Mortgagee, Tenant further agrees to enter into a new lease for
the balance of the Term (and otherwise upon the same terms and conditions of this Lease) in the event of a judicial or non-judicial foreclosure
of a mortgage granted to any Mortgagee.

 

Upon such attornment, the
Mortgagee shall not be: (i) liable in any way to Tenant for any act or omission, neglect or default on the part of Landlord under
this Lease except that the Mortgagee shall cure any continuing failure to perform maintenance or repair work (but shall not be liable
for any damages arising prior to the attornment); (ii) responsible for any monies owing by or on deposit with Landlord to the credit
of Tenant unless received by the Mortgagee; (iii) subject to any counterclaim or setoff which theretofore accrued to Tenant against
Landlord; (iv) bound by any modification of this Lease subsequent to such mortgage or by any previous prepayment of regularly scheduled
monthly installments of Base Rent for more than one (1) month, which was not approved in writing by the Mortgagee; (v) liable
to Tenant beyond the Mortgagee’s interest in the Property and the rents, income, receipts, revenues, issues and profits issuing
from such Property; or (vi) liable for any portion of a security deposit not actually received by the Mortgagee.

 

(c)       The covenant and agreement contained in this Lease with respect to the rights, powers and benefits of any such Mortgagee constitute
a continuing offer to any person, corporation or other entity, which by accepting or requiring an assignment of this Lease or by entry
of foreclosure assumes the obligations herein set forth with respect to such Mortgagee.

 

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(d)       No assignment of this Lease and no agreement to make or accept any surrender, termination or cancellation of this Lease and no
agreement to modify so as to reduce the Rent, change the Term, or otherwise materially change the rights of Landlord under this Lease,
or to relieve Tenant of any obligations or liability under this Lease, shall be valid unless consented to in writing by Landlord’s
mortgagees or ground lessors of record, if any.

 

(e)       Tenant agrees on request of Landlord to execute and deliver from time to time any agreement, in recordable form, which may reasonably
be deemed necessary to implement the provisions of this Section 10.01, including, without limitation, the form of agreement
attached as Exhibit 10.01, to the extent that such consent is required pursuant to the terms of the applicable mortgage or ground
lease.

 

Section 10.02.           Estoppel Certificates. Each party agrees to furnish to the other, within ten (10) business days after request therefor (or,
with respect to Tenant, if requested of Tenant by any Mortgagee) from time to time, a written statement setting forth the following information:

 

(a)       Whether and when Tenant accepted possession of the Demised Premises, and the commencement and expiration dates of the Term,

 

(b)       The applicable Rent then being paid, including all Additional Rent based upon the Additional Rent most recently established;

 

(c)       That the Lease is current and the party providing the statement is not aware of any uncured breach of this Lease or specifying
any breach;

 

(d)       That the party providing the statement is not aware of any current claims or offsets against the other party, or specifically listing
any such claims;

 

(e)       The date through which Base Rent and Additional Rent has then been paid;

 

(f)        Such other information relevant to the Lease as the requesting party may reasonably request; and

 

(g)       A statement that any prospective Mortgagee and/or purchaser may rely on all such information.

 

Without limiting the generality of the foregoing,
Tenant has approved the statement form attached as Exhibit 10.02.

 

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Section 10.03.           Notices to Mortgagees. After receiving notice from any person, firm or other entity that it holds a mortgage which includes
the Demised Premises as part of the mortgaged premises, or that it is the ground lessor under a lease with Landlord, as ground tenant,
which includes the Demised Premises as a part of the mortgaged premises, no notice from Tenant to Landlord shall be effective against
such Mortgagee unless and until a copy of the same is given to such Mortgagee, and the curing of any of Landlord’s defaults by such
Mortgagee shall be treated as performance by Landlord. Accordingly, no act or failure to act on the part of Landlord which would entitle
Tenant under the terms of this Lease, or by law, to be relieved of Tenant’s obligations hereunder, to exercise any right of self-help
or to terminate this Lease, shall result in a release or termination of such obligations or a termination of this Lease unless (i) Tenant
shall have first given written notice to such Mortgagee of Landlord’s act or failure to act which could or would give basis for
Tenant’s rights; and (ii) such Mortgagee, after receipt of such notice, has failed or refused to correct or cure the condition
complained of within the applicable cure period afforded Landlord under this Lease or such longer period of time as may be reasonably
required by Mortgagee to cure such default with due diligence (including such time as may be necessary for Mortgagee to obtain possession
or title to the Property, if required to cure the default, but in any event not to exceed 180 days).

 

Section 10.04.           Assignment of Rents. With reference to any assignment by Landlord of Landlord’s interest in this Lease, or the rents
payable hereunder, conditional in nature or otherwise, which assignment is made to the Mortgagee, Tenant agrees:

 

(a)       That the execution thereof by Landlord, and the acceptance thereof by the Mortgagee shall never be treated as an assumption by
such Mortgagee of any of the obligations of Landlord hereunder, unless such Mortgagee shall, by notice sent to Tenant, specifically make
such election; and

 

(b)       That, except as aforesaid, such Mortgagee shall be treated as having assumed Landlord’s obligations hereunder only upon foreclosure
of such Mortgagee’s mortgage or the taking of possession of the Property, or, in the case of a ground lessor, the termination of
the ground lease.

 

Article 11.

 

Fire, Casualty and Eminent Domain

 

Section 11.01.           Rights to Terminate the Lease. Should a substantial portion of the Demised Premises, the Building, or the Property be damaged
by fire or other casualty, or be taken by eminent domain, Landlord, at its sole option, may elect to terminate this Lease provided that
Landlord is then also terminating the lease of any other tenant that is similarly situated. When fire or other unavoidable casualty or
taking renders the Demised Premises substantially unsuitable for its intended use, including without limitation by denying Tenant reasonable
access to the Demised Premises, and Tenant does in fact cease to occupy all or a portion of the Demised Premises on account of such event,
a just and proportionate abatement of Base Rent, Tenant’s Pro Rata Share of Taxes and Tenant’s Pro Rata Share of Operating
shall be made, and Tenant may elect to terminate this Lease if:

 

(a)       The Landlord fails, within ten (10) days following written notice from Tenant of such failure, to give written notice within sixty
(60) days after such casualty of its intention to restore the Demised Premises or provide alternate access, if access has been taken or
destroyed; or

 

(b)       If Landlord gives notice of its intention to restore and, in the reasonable estimate of Landlord’s general contractor, such
restoration will take greater than twelve (12) months to complete, provided that Tenant gives such notice within fifteen (15) days after
receiving Landlord’s notice that it intends to restore the Demised Premises (other than Tenant Work); or

 

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(c)       If Landlord gives notice of its intention to restore (“Landlord’s Restoration Notice”) or if Landlord
is required to restore and Landlord fails to restore the Demised Premises (other than Tenant Work) to substantially the condition prior
to the damage or fails to provide reasonable alternate access within nine (9) months (or such longer period as is specified in Landlord’s
Restoration Notice) of such fire or other unavoidable casualty, or taking; provided however, that (x) in the event Landlord has diligently
commenced repairs to the damaged property and such repair takes more than nine (9) months (or such longer period as is specified in Landlord’s
Restoration Notice) to complete due to causes beyond Landlord’s reasonable control, Landlord shall have the right to complete such
repairs within a reasonable time period thereafter (the “Additional Time”) but in no event shall such Additional Time
be longer than the shorter of (i) ninety (90) days; or (ii) the length of such delays beyond Landlord’s reasonable control
and (y) if Landlord completes such restoration within 30 days following receipt of Tenant’s notice of termination, then
such notice of termination shall be deemed null and void and of no further effect.

 

Landlord reserves, and Tenant
grants to Landlord, all rights which Tenant may have for damages or injury to the Demised Premises for any taking by eminent domain, except
for damages specifically awarded on account of Tenant's trade fixtures, property or equipment. For purposes of this Section, a taking
or damage shall be substantial if it shall affect more than twenty-five percent (25%) of the Demised Premises, the Building or the Property.

 

Section 11.02.           Restoration Obligations. If the Lease has not terminated pursuant to Section 11.01, then, following any casualty
or taking by eminent domain, Landlord shall proceed with diligence, subject to then applicable statutes, building codes, zoning ordinances
and regulations of any governmental authority, and the receipt of insurance proceeds, to repair or cause to be repaired such damage (other
than any Tenant Work, which Tenant shall promptly commence, and proceed with diligence, to restore). All repairs to and replacements of
Tenant’s trade fixtures, equipment and personal property, and any Tenant Work shall be made by and at the expense of Tenant.

 

Article 12.

 

Indemnification

 

Section 12.01.           General Indemnity. Subject to the waiver of claims set forth in Section 4.05, except to the extent arising from
the negligence or willful misconduct of Landlord or Landlord’s agents, contractors or employees, Tenant shall defend, indemnify
and hold harmless Landlord, Landlord’s lenders, managing agent, the association of unit owners of the Reservoir Woods Primary Condominium,
The Prudential Life Insurance Company of America and their respective members, managers,
officers, directors, and employees (the “Indemnitees”) from and against any and all claims, demands, liabilities, damages,
judgments, orders, decrees, actions, proceedings, fines, penalties, costs and expenses, including without limitation, court costs and
reasonable attorneys’ fees, arising from or relating to (a) any third party claim for loss of life, or damage or injury to persons
or property (i) occurring in the Demised Premises or (ii) arising from the negligence or willful misconduct of Tenant (or any
subtenant or other party acting under or through Tenant) or its agents, contractors, employees, or invitees in the common areas on or
serving the Property or (b) any breach of this Lease by Tenant (or any subtenant or other party acting under or through Tenant) or
its agents, contractors, employees, or invitees.

 

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Subject to the waiver of claims
set forth in Section 4.05, except to the extent arising from a breach of this Lease by Tenant or the negligence or willful misconduct
of Tenant (or any subtenant or other party acting under or through Tenant) or Tenant’s agents, contractors, employees, or invitees,
Landlord shall defend, indemnify and hold harmless Tenant from and against any and all claims, demands, liabilities, damages, judgments,
orders, decrees, actions, proceedings, fines, penalties, costs and expenses, including without limitation, court costs and reasonable
attorneys’ fees, arising from or relating to any third party claim for loss of life, or damage or injury to a person or property
caused by any negligence or willful misconduct by Landlord, its agents, employees, or contractors in the common areas of the Property.

 

Section 12.02.           
Defense Obligations. In case any action or proceeding is brought against either party by reason of any such occurrence,
the party required to provide indemnification, upon written notice from the party entitled to indemnification, will, at the sole cost
and expense of the party required to provide indemnification, resist and defend such action or proceeding or cause the same to be resisted
and defended, by counsel designated by the party required to provide indemnification and approved in writing by the party to be defended,
which approval shall not be unreasonably withheld.

 

Article 13.

 

Mortgages, Assignments and Subleases by Tenant

 

Section 13.01.            Right to Transfer.

 

(a)        Tenant’s interest in this Lease may not be mortgaged, encumbered, assigned or otherwise transferred, or made the subject
of any license or other privilege, by Tenant or by operation of law or otherwise, and the Demised Premises may not be sublet, as a whole
or in part, (any of the foregoing events, a “Transfer”) without in each case the prior written consent of Landlord,
and the execution and delivery to Landlord by the assignee or transferee (in either case, a “Transferee”) of a good
and sufficient instrument whereby such Transferee assumes all obligations of Tenant under this Lease. The provisions of this Article 13
shall apply to a transfer (by one or more Transfers) of a controlling portion of or interest in the stock or partnership or membership
interests or other evidences of equity interests of Tenant or sale of all or substantially all of the assets of Tenant as if such Transfer
were an assignment of this Lease; provided, that, if equity interests in Tenant at any time are or become traded on a public stock exchange,
the transfer of equity interests in Tenant on a public stock exchange shall not be deemed an assignment within the meaning of this Article.
Subject to the provisions of this Article 13, Landlord shall not unreasonably withhold, condition or delay its consent to any sublet
of the Demised Premises or any assignment of Tenant’s interest in this Lease. Tenant shall not offer to make or enter into negotiations
with respect to a Transfer to a tenant at the Property (or in the office park known as Reservoir Woods) so long as Landlord (or an affiliate
thereof) has competitive space available for lease at the Property. It shall not be unreasonable for Landlord to disapprove any proposed
Transfer to any party which would be of such type, character or condition as to be inappropriate, in Landlord's reasonable judgment, as
a tenant for a first-class suburban office building.

 

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Nothing herein contained shall
be construed as requiring Tenant to obtain any consent on the part of Landlord (i) as a condition to or any assignment resulting from
any merger, consolidation, or sale of all or substantially all of the assets of Tenant, or acquisition of all or substantially all of
the issued and outstanding capital stock of Tenant or (ii) as a condition to any assignment or sublease to any affiliates controlled by,
controlling, or under common control with Tenant; provided that (a) Tenant gives Landlord at least thirty (30) days prior written notice
of such event or Transfer with evidence reasonably satisfactory to Landlord that the conditions of this paragraph have been satisfied,
(b) in the case of an assignment of this Lease, or a merger, consolidation or asset sale the Transferee shall be at least as creditworthy
as (i) the original Tenant on the date of execution of this Lease and (ii) the then Tenant on the date Landlord receives notice
of such pending event or Transfer, both as demonstrated by audited financial statements or equivalent evidence (the determination of creditworthiness
shall take into account all of the considerations which an institutional investor in real estate would consider in evaluating the credit
of a proposed tenant), (c) the Transferees comply with the provisions of this Lease, including but not limited to Article 5 hereof,
and (d) with respect to a Transfer to any affiliate of Tenant pursuant to clause (ii), above, the provisions of this Article 13
shall apply to such Transfer if, as and when such affiliate ceases to be an affiliate of Tenant. Any Transferee referred to in the immediately
preceding sentence is referred to herein as a “Permitted Transferee”. Notwithstanding the foregoing, the prior notice
and financial statement requirements contained in (a) and (b) above shall not be required to be provided by Tenant to Landlord in the
case of a publicly traded Permitted Transferee on a major stock exchange with a market capitalization of over One Billion and 00/00 Dollars
($1,000,000,000.00). Any such Permitted Transferee, however, shall be subject to the terms and conditions set forth in Section 13.02
below. For purposes of this Article 13, ‘control’ or ‘controlling’ shall mean possession of more than 50
percent ownership of the shares of beneficial interest of the entity in question together with the power to control and manage the affairs
thereof either directly or by election of directors and/or officers.

 

In connection with any request
by Tenant for such consent to Transfer, Tenant shall provide Landlord with all relevant information requested by Landlord concerning the
proposed Transferee’s financial responsibility, credit worthiness and business experience to enable Landlord to make an informed
decision. Tenant shall reimburse Landlord promptly for all reasonable out-of-pocket expenses incurred by Landlord (including reasonable
attorneys’ fees), in connection with the review of Tenant’s request for approval of any Transfer, not to exceed $5,000.00
(which amount shall be increased on the first anniversary of the Commencement Date and annually
thereafter by the annual percentage increase, if any, in the CPI (as defined below) from that in effect on the Commencement Date).
Upon receipt from Tenant of such request and information, Landlord shall have the right, but not the obligation, to be exercised in writing
within ten (10) calendar days after its receipt from Tenant of such request and information, other than with respect to Permitted
Transferees (i) if the request is to assign the Lease, to terminate this Lease, or (ii) if the request is to sublet all or substantially
all of the Demised Premises (or, in combination with prior Transfers, all or substantially all of the Demised Premises in the aggregate),
to terminate this Lease for the balance of the Term with respect to the portion of the Demised Premises proposed to be sublet; in each
case as of the date set forth in Landlord’s notice of exercise of such option, which date (the “Effective Termination Date”)
shall not be less than thirty (30) days nor more than ninety (90) days following the giving of such notice. If Landlord exercises
such right, Tenant may withdraw the request for consent within five (5) days after Landlord gives notice exercising such right, and
if Tenant so withdraws the request then this Lease shall continue in full force and effect with respect to all of the Demised Premises
then leased hereunder. In the event of a Transfer of the Demised Premises where Landlord exercised its option to terminate this Lease,
Tenant shall surrender possession of the Demised Premises, or the applicable part thereof, on a date to be mutually agreed upon, but not
later than the Effective Termination Date, in accordance with the provisions of this Lease relating to surrender of the Demised Premises
at the expiration of the Term, and at Tenant’s sole cost and expense shall separately demise any portion of the Demised Premises
so surrendered and thereafter neither Landlord nor Tenant shall have any further liability with respect thereto, except for such obligations
which by the terms of this Lease expressly survive termination. If this Lease shall be terminated as to a portion of the Demised Premises
only, Base Rent and Tenant’s liability for utilities provided by Landlord (if any), Operating Expenses and Taxes, and the number
of parking spaces for Tenant’s use, shall be readjusted proportionately according to the ratio that the number of square feet and
the portion of the space surrendered compares to the floor area of Tenant’s Demised Premises during the term of the proposed sublet,
and tenants leasing the terminated portion of the Demised Premises shall have the right, in common with Tenant, to use the lobby, elevators,
common corridors and bathrooms and other common areas located on the same floor as the Demised Premises.

 

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Any purported Transfer under
this Article 13 without Landlord’s prior written consent or prior notice (as applicable) to the extent such consent
or notice is required, shall be void and of no effect. No acceptance of Rent by Landlord from or recognition in any way of the occupancy
of the Demised Premises by a Transferee shall be deemed a consent to such Transfer. Without limiting Landlord’s right to withhold
its consent to any Transfer by Tenant, and regardless of whether Landlord shall have consented to any such Transfer, neither Tenant nor
any other person having an interest in the possession, use, or occupancy of any portion of the Demised Premises shall enter into any lease,
sublease, license, concession, assignment, or other transfer or agreement for possession, use, or occupancy of all or any portion of the
Demised Premises which provides for rental or other payment for such use, occupancy, or utilization based, in whole or in part, on the
net income or profits derived by any person or entity from the space so leased, used, or occupied, and any such purported lease, sublease,
license, concession, assignment, or other transfer or agreement shall be absolutely void and ineffective as a conveyance of any right
or interest in the Demised Premises. There shall be no deduction from the rental payable under any sublease or other transfer nor from
the amount of the rental passed on to any person or entity, for any expenses or costs related in any way to the subleasing or transfer
of such space.

 

(b)       In the event Tenant Transfers the Demised Premises or any part thereof for consideration in excess of the obligations of Tenant
to Landlord hereunder allocable to the Transferred portion of the Demised Premises in the aggregate, other than with respect to a Permitted
Transferee, Tenant shall from time to time within thirty (30) days of receipt pay over to Landlord an amount equal to fifty percent
(50%) of the excess, if any, of (1) any consideration, rent or other amounts received by Tenant from such Transferees (other than
a Permitted Transferee), over (2) the sum of the rents and other expenses payable by Tenant to Landlord hereunder, after such excess
is applied to reimburse Tenant on an amortized basis for the actual third-party costs for legal fees, brokerage and advertising costs,
leasehold improvements, out-of-pocket concession payments incurred by Tenant in procuring the Transfer. (Tenant’s reimbursement
for such costs shall be in monthly amounts to amortize such costs on a straight-line basis without interest over the term of the Transfer
in question). Within ten (10) business days after request by Landlord from time to time, Tenant shall provide Landlord with an itemized
statement of all such costs, together with reasonable third party back-up documentation for the same. Without limiting the generality
of the first sentence of this subparagraph, any lump sum payment or series of payments allocable to Tenant’s interest in the Demised
Premises (including the purchase or use of so called leasehold improvements) on account of any Transfer shall be deemed to be in excess
of rent and other charges in its or their entirety.

 

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Section 13.02.       
Tenant Remains Bound. Except where Landlord shall have exercised its option to terminate this Lease or release Tenant from
a portion of the Demised Premises under Section 13.01 above, no Transfer of any interest in this Lease, and no execution and
delivery of any instrument of assumption pursuant to Section 13.01 hereof, shall in any way affect or reduce any of the obligations
of Tenant under this Lease, but this Lease and all of the obligations of Tenant under this Lease shall continue in full force and effect
as the obligations of a principal (and not as the obligations of a guarantor or surety). From and after any such Transfer, the obligations
of each such Transferee and of the original Tenant named as such in this Lease to fulfill all of the obligations of Tenant under this
Lease shall be joint and several. Each violation of any of the covenants, agreements, terms or conditions of this Lease, whether by act
or omission, by any of Tenant’s permitted encumbrances, assignees, employees, transferees, licensees, grantees of a privilege, sub-tenants
or occupancy, shall constitute a violation thereof by Tenant. The consent by Landlord to any Transfer shall not relieve Tenant or any
Transferee from the obligation of obtaining the express consent of Landlord to any modification of such Transfer or a further Transfer
by Tenant or such transferee. Any requested consent to a Transfer shall not be deemed given unless and until Landlord, Tenant, and the
proposed Transferee shall have executed and delivered a consent agreement in form and substance reasonably satisfactory to Landlord.

 

If Tenant enters into any
sublease with respect to the Demised Premises (or any part thereof), Landlord may, at any time and from time to time, require that such
subtenant agree directly with Landlord to be liable, jointly and severally with Tenant, to the extent of the obligation undertaken by
or attributable to such subtenant in the sublease, for the performance of Tenant’s agreements under this Lease (including payment
of rent and other charges under the sublease), and every sublease shall so provide. Landlord may collect rent and other charges from the
subtenant and apply the net amount collected to the rent and other charges hereunder, but no such assignment or collection shall be deemed
a waiver of the provisions of this Section 13.02, or the acceptance of the subtenant, as a tenant, or a release of Tenant from
direct and primary liability for the further performance of Tenant’s covenants hereunder.

 

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Article 14.

Default

 

Section 14.01.       
Events of Default. It shall be an “Event of Default” in the event that:

 

(a)        Tenant
shall default in the due and punctual payment of any installment of Base Rent, or any part thereof, when and as the same shall become
due and payable and such default shall continue for more than five (5) days; provided, however, that for the first two (2) such
defaults in any twelve-month period an Event of Default shall not arise unless the default is not cured within five (5) days after written
notice of the non-payment by Landlord to Tenant;

 

(b)        Tenant
shall default in the payment of any Additional Rent, or any part thereof, when and as the same shall become due and payable, and such
default shall continue for a period of ten (10) days after written notice that such payment is past due; or

 

(c)        Tenant
shall default in the observance or performance of any of Tenant’s covenants, agreements, or obligations under Sections
10.01 and 10.02 of the Lease within the time periods set forth therein, if such default is not cured within three (3)
business days after notice thereof by Landlord to Tenant, or default in the observance or performance of any of Tenant’s
covenants, agreements or obligations under Section 20.06, if such default is not cured within three (3) business days after
notice thereof by Landlord to Tenant;

 

(d)        Tenant shall default in the observance or performance of any of Tenant’s covenants, agreements or obligations hereunder,
other than those referred to in the foregoing clauses (a) and (c), and such default shall not be corrected within thirty (30)
days after written notice; provided, however, if Tenant commenced to cure the default within thirty (30) days and used all due diligence
to effect the cure, but such default was not capable of being cured by Tenant within the said thirty (30) day period, Tenant shall
have such additional time (up to 120 days) as is necessary to cure the default provided Tenant diligently prosecutes the cure to
completion; or

 

(e)        Tenant
shall file a voluntary petition in bankruptcy or shall be adjudicated bankrupt or insolvent, shall file any petition or answer seeking
any reorganization, arrangement, composition, dissolution or similar relief under any present or future federal, state or other statute,
law or regulation relating to bankruptcy, insolvency or other relief for debtors, or shall seek, or consent, or acquiesce in the appointment
of any trustee, receiver or liquidator of Tenant or of all or any substantial part of its properties, or of the Demised Premises, or
shall make any general assignment for the benefit of creditors; or

 

(f)         a petition is filed against Tenant seeking any reorganization, arrangement, composition, dissolution or similar relief under any
present or future federal, state or other statute, law or regulation relating to bankruptcy, insolvency or other relief for debtors, and
such petition is not dismissed within ninety (90) days.

 

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Then, unless and until Landlord
accepts a full cure of the default giving rise to the Event of Default, Landlord shall have the right thereafter, in accordance with applicable
law, to re-enter and take complete possession of the Demised Premises, to declare this Lease terminated by written notice to Tenant and
to remove Tenant’s effects without prejudice to any remedies which might be otherwise used for arrears of Rent or other Event of
Default. Any written notice of termination by Landlord may, at Landlord’s express election, serve as any statutory demand or notice
that is a prerequisite to Landlord’s commencement of eviction proceedings against Tenant, and may, at Landlord’s express election,
be included in any notice of default (provided, however, that any such notice included in a notice of default shall not be effective unless
and until the expiration of applicable notice and cure periods).

 

Tenant shall indemnify Landlord
against all loss of Rent and other payments which Landlord may incur by reason of such termination during the residue of the Term as provided
herein. Without limiting the generality of the foregoing, Landlord may elect by written notice to Tenant following such termination to
be indemnified for loss of Rent by a lump sum payment representing the present value of the amount of Base Rent and Additional Rent which
would have been paid in accordance with this Lease for the remainder of the Term minus the present value of the aggregate fair market
rent and Additional Rent for the Demised Premises on an “as-is” basis during such time period, estimated as of the date of
termination, and taking into account reasonable projections of vacancy and time required to re-let the Demised Premises. (For purposes
of the lump sum calculation, Additional Rent for the last 12 months prior to termination shall be deemed to increase for each year
thereafter by the average annual increase during the immediately preceding 5 years in the Consumer Price Index - All Urban Consumers
for the Boston Metropolitan area published by the U.S. Department of Labor (“CPI”) or a comparable index reasonably
selected by Landlord. The Federal Reserve discount rate, or equivalent, plus 2% shall be used in calculating present values.) In the absence
of such election, Tenant shall indemnify Landlord for the loss of Rent by a payment at the end of each month which would have been included
in the Term equal to the excess of the Base Rent and Additional Rent which would have been paid in accordance with this Lease over the
Rent actually derived from the Demised Premises by Landlord for such month after deducting all costs incurred by Landlord in re-letting
the Demised Premises or any portion thereof.

 

In addition to the payment(s)
due under the prior paragraph, Tenant shall reimburse Landlord for all reasonable expenses arising out of the termination, including without
limitation, all costs incurred by Landlord in attempting to re-let the Demised Premises or parts thereof such as advertising, brokerage
commissions, tenant fit-up costs, and legal expenses. The reimbursement from Tenant shall be due and payable immediately from time to
time upon notice from Landlord of the expense so incurred. Landlord shall use reasonable efforts re-let the Demised Premises in the event
the Lease is terminated pursuant to this Article 14, however, Landlord's obligation shall be subject to the reasonable requirements
of Landlord to lease other available space for comparable use prior to reletting the Demised Premises and to lease to high quality tenants
in a harmonious manner with an appropriate mix of uses, tenants, floor areas and terms of tenancies, and the like. The provisions of this
Section 14.01, and Tenant’s obligations to Landlord hereunder, shall survive the termination of this Lease.

 

Section 14.02.       Landlord’s
Right to Cure. If an Event of Default occurs or Landlord reasonably determines that an emergency exists, Landlord, without being
under any obligation to do so and without thereby waiving its rights with regard to the Event of Default, may remedy the default giving
rise to the Event of Default for the account and at the expense of Tenant. If Landlord makes any reasonable expenditures or incurs any
obligations for the payment of money in connection therewith, including but not limited to reasonable attorney’s fees in instituting,
prosecuting or defending any action or proceeding, such sums paid or obligation incurred and costs, shall be paid upon demand to Landlord
by Tenant, together with an administrative fee of ten percent (10%), as Additional Rent and if not paid within ten (10) days of
demand with interest at the rate of eighteen percent (18%) per annum calculated as of the date such payments were due.

 

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Section 14.03.       No
Waiver. No failure by either party to insist upon strict performance of any covenant, agreement, term or condition of this Lease,
or to exercise any right or remedy consequent upon breach thereof, and no acceptance by Landlord of full or partial Rent during the continuance
of any breach, shall constitute a waiver of any such breach or of any covenant, agreement, term or condition. No covenant, agreement,
term or condition of this Lease to be performed or complied with by either party, and no breach thereof, shall be waived, altered or
modified except by written instrument executed by the other party. No waiver of any breach shall affect or alter this Lease, but each
and every covenant, agreement, term and condition of this Lease shall continue in full force and effect with respect to any other then
existing or subsequent breach thereof.

 

Section 14.04.       Late Payments. In the event (i) any payment of Rent is not paid within five (5) days of the due date, or (ii) a
check received by Landlord from Tenant shall be dishonored, then because actual damages for a late payment or for a dishonored check are
extremely difficult to fix or ascertain, but recognizing that damage and injury result therefrom, Tenant agrees to pay 5% of the amount
due in (i)  as liquidated damages for each late payment and 2.5% of the amount due in (ii)  as liquidated damages for each time
a check is dishonored. Notwithstanding the foregoing, no payment shall be due under the foregoing sentence for the first late payment
of Rent in any twelve (12) month period if such Rent payment is made within five (5) days after notice from Landlord to Tenant.
(The grace period herein provided is strictly related to the liquidated damages for a late payment and shall in no way modify or stay
Tenant’s obligation to pay Rent when it is due, nor shall the same preclude Landlord from pursuing its remedies under this Article 14,
or as otherwise allowed by law.) In the event that two (2) or more Tenant’s checks are dishonored in any 24-month period, Landlord
shall have the right, in addition to all other rights under this lease, to require all future payments by certified check or wire transfer.
Furthermore, if any payment of Rent shall not be paid when due, the same shall bear interest, from the date when the same was due until
the date paid, at the rate of eighteen percent (18%) per annum. Such interest shall constitute Additional Rent payable hereunder.

 

Section 14.05.       
Remedies Cumulative. Each right and remedy of Landlord provided for in this Lease shall be cumulative and concurrent and
shall be in addition to every other right or remedy provided for in this Lease now or hereafter existing at law or in equity or by statute
or otherwise, and the exercise or beginning of the exercise by Landlord of any one or more of the rights or remedies provided for in this
Lease now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous exercise by Landlord
of any or all other rights or remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise.

 

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Section 14.06.       Landlord’s Obligation to Make Payments. Whenever, under any provision of this Lease, Tenant shall be entitled to receive
any payment from Landlord or to exercise any privilege or right under this Lease, Landlord shall not be obligated to make any such payment
and Tenant shall not be entitled to exercise any such privilege or right so long as an Event of Default exists. Tenant shall not be entitled
to offset against Rent any payments due from Landlord to Tenant.

 

Section 14.07.       Landlord
Defaults. Landlord shall in no event be in default in the performance of any of Landlord's obligations under the terms of this Lease
unless and until Landlord shall have failed to perform such obligation within thirty (30) days after notice by Tenant to Landlord (“Tenant
Default Notice”) specifying the manner in which Landlord has failed to perform any such obligations (provided that if correction
of any such matter reasonably requires longer than 30 days and Landlord so notifies Tenant within thirty (30) days after such Tenant
Default Notice is given together with an estimate of the reasonable time required for such cure, Landlord shall be allowed such longer
period, but only if cure is begun within such thirty (30) day period and diligently prosecuted to completion).

 

Article 15.

Surrender

 

Section 15.01.       Obligation
to Surrender. Tenant shall, upon any expiration or earlier termination of this Lease, remove all Tenant Property from the Demised
Premises unless otherwise approved by Landlord in writing; provided, however, Tenant shall not be required to remove any data/telecommunications
cabling and wiring installed at the Demised Premises. Tenant shall peaceably vacate and surrender to Landlord the Demised Premises and
deliver all keys, locks thereto, and subject to Section 8.01 all alterations and additions made to or upon the Demised Premises,
in the same condition as they were at the commencement of the Term, or as they were put in during the Term, reasonable wear and tear
and, to the extent Landlord is required to restore the same, damage by fire or other casualty or taking or condemnation by public authority
or as a result of Landlord’s negligence or willful misconduct only excepted. In the event of Tenant’s failure to remove any
Tenant Property from the Demised Premises, Landlord is hereby authorized, without liability to Tenant for loss or damage thereto, and
at the sole risk of Tenant, to remove and store any of the property at Tenant’s expense, or to retain same under Landlord’s
control or to sell at public or private sale, after thirty (30) days’ notice to Tenant at its address last known to Landlord,
any or all of the property not so removed and to apply the net proceeds of such sale to the payment of any sum due hereunder, or to destroy
such property.

 

Section 15.02.       
Holdover Remedies. If Tenant (or anyone claiming by, through, or under Tenant) shall remain in possession of the Demised
Premises or any part thereof after the expiration or earlier termination of this Lease with respect thereto without any agreement in writing
executed with Landlord, Tenant shall be deemed a tenant at sufferance. After the expiration or earlier termination of the Term, Tenant
shall pay Base Rent at the times and in the manner set forth in Article 2 at the rate equal to (x) for the first thirty (30) days
of such holdover, 150% of the Base Rent in effect immediately preceding such expiration or termination, and (y) thereafter, 200% of the
Base Rent in effect immediately preceding such expiration or termination, plus 100% of all of the Additional Rent payable and covenants
of Tenant in force as otherwise herein provided. Tenant shall not be responsible for consequential damages as a result of any holding
over by Tenant.

 

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Article 16.

Quiet Enjoyment

 

Section 16.01.       
Covenant of Quiet Enjoyment. Tenant, subject to any ground leases, deeds of trust and mortgages to which this Lease is from
time to time subordinate, upon paying the Rent and performing and complying with all covenants, agreements, terms and conditions of this
Lease on its part to be performed or complied with, shall not be prevented by Landlord, or anyone claiming by, through or under Landlord,
from lawfully and quietly holding, occupying and enjoying the Demised Premises during the Term, except as specifically provided for by
the terms hereof. This covenant is in lieu of any other so-called quiet enjoyment covenant, either express or implied.

 

Article 17.

Acceptance of Surrender

 

Section 17.01.       
Acceptance of Surrender. No surrender to Landlord of this Lease or of the Demised Premises or any part thereof or of any
interest therein by Tenant shall be valid or effective unless required by the provisions of this Lease or unless agreed to and accepted
in writing by Landlord. No act on the part of any representative or agent of Landlord (such as receipt of keys delivered by Tenant to
Landlord’s managing agent), and no act on the part of Landlord other than such a written agreement and acceptance by Landlord, shall
constitute or be deemed an acceptance of any such surrender.

 

Article 18.

Notices - Service of Process

 

Section 18.01.       
Means of Giving Notice. All notices, demands, requests and other instruments which may or are required to be given by either
party to the other under this Lease shall be in writing. All notices, demands, requests and other instruments from Landlord to Tenant
shall be deemed to have been properly given if sent by United States certified mail, return receipt requested, postage prepaid, or if
sent by prepaid Federal Express or other similar overnight delivery service which provides a receipt, addressed to Tenant at the Demised
Premises, Attn: Chief Executive Officer (and, until Tenant occupies the Demised Premises, to Tenant at 200 Berkeley Street, 18th
Floor, Boston, MA 02116) or at such other address or addresses as Tenant from time to time may have designated by written notice
to Landlord, with a copy to Legal@AerovateTx.com and to Langer & McLaughlin LLP, 535 Boylston Street, Third Floor, Boston,
Massachusetts 02114, Attn.: Doug McLaughlin. All notices, demands, requests and other instruments from Tenant to Landlord shall be deemed
to have been properly given if sent by United States certified mail, return receipt requested, postage prepaid or if sent by prepaid
Federal Express or other similar overnight delivery service which provides a receipt, addressed to Landlord, c/o Davis Marcus Management,
Inc., c/o The Davis Companies, 125 High Street, Suite 2111, Boston Massachusetts 02110, with
copies to: PGIM Real Estate, 7 Giralda Farms, Madison, New Jersey 07940, Attn.: Amy Ziegler; and Richard D. Rudman, Esq., DLA Piper
LLP (US), 33 Arch Street, Boston, Massachusetts 02110. A copy of all notices sent to Landlord via any of the foregoing delivery
methods shall simultaneously be sent via email to notices@marcuspartners.com. Any notice shall be deemed to be effective upon
receipt by, or attempted delivery to, the intended recipient. Any notice under this Lease may be given by counsel to the party giving
such notice.

 

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Article 19.

Separability of Provisions

 

Section 19.01.       
Severability. If any term or provision of this Lease or the application thereof to any person or circumstance shall, to
any extent, be invalid or contrary to applicable law or unenforceable, the remainder of this Lease, and the application of such term or
provision to persons or circumstances other than those as to which it is held invalid or contrary to applicable law or unenforceable,
as the case may be, shall not be affected thereby, and each term and provision of this Lease shall be legally valid and enforced to the
fullest extent permitted by law.

 

Article 20.

Miscellaneous

 

Section 20.01.       
Amendments. This Lease may not be modified or amended except by written agreement duly executed by the parties hereto.

 

Section 20.02.       
Governing Law. This Lease shall be governed by and construed and enforced in accordance with the laws of The Commonwealth
of Massachusetts.

 

Section 20.03.      
Counterparts. This Lease may be executed in several counterparts, each of which shall be an original but all of which shall
constitute but one and the same instrument. The parties hereby acknowledge and agree that electronic signatures utilizing DocuSign®
or similar method considered to be legally effective under the laws of The Commonwealth of Massachusetts or signatures transmitted by
electronic mail in so-called “pdf” format shall be legal and binding and shall have the same full force and effect as if an
original of this Lease had been delivered. Landlord and Tenant (i) intend to be bound by the signatures on any document sent by electronic
mail, (ii) are aware that the other party will rely on such signatures, and (iii) hereby waive any defenses to the enforcement of the
terms of this Lease based on the foregoing forms of signature.

 

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Section 20.04.       
Successors and Assigns. The covenants and agreements herein contained shall, subject to the provisions of this Lease, bind
and inure to the benefit of Landlord, its successors and assigns, and Tenant, and Tenant’s permitted successors and assigns, and
no extension, modification or change in the terms of this Lease effected with any successor, assignee or transferee shall cancel or affect
the obligations of the original Tenant hereunder unless agreed to in writing by Landlord. The term “Landlord” as used herein
and throughout the Lease shall mean only the owner or owners at the time in question of Landlord’s interest in this Lease. Upon
any transfer of such interest, from and after the date of such transfer, Landlord herein named (and in case of any subsequent transfers
the then transferor), shall be relieved of all liability for the performance of any obligations on the part of Landlord contained in this
Lease except for acts or omissions in violation of the terms of this Lease by Landlord prior to such transfer or monies owed by Landlord
to Tenant and which were not assigned to and repayment or performance thereof assumed by such transferee, provided that if any monies
are in the hands of Landlord or the then transferor at the time of such transfer, and in which Tenant has an interest, shall be delivered
to the transferee, then Tenant shall look only to such transferee for the return thereof.

 

Section 20.05.       
Merger Clause. This Lease (including the exhibits) contains the entire and only agreement between the parties regarding
the lease of the Demised Premises, and no oral statements or representations or prior written matter not contained in this Lease shall
have any force or effect.

 

Section 20.06.       
Notice of Lease. Tenant shall not cause this Lease or a copy thereof to be recorded. In the event this Lease or a copy thereof
shall be recorded by Tenant, then such recording shall constitute an Event of Default by Tenant under Article 14 hereof unless
such recording is removed from the records within five (5) business days of notice from Landlord.

 

Section 20.07.       
No Lease. The submission of this Lease for review or comment shall not constitute an agreement between Landlord and Tenant
until both have signed and delivered copies thereof.

 

Section 20.08.       
Reimbursements. Whenever Tenant is required to obtain Landlord’s approval hereunder, Tenant agrees to reimburse Landlord
all reasonable out-of-pocket expenses incurred by Landlord, including reasonable attorney fees in order to review documentation or otherwise
determine whether to give its consent.

 

Section 20.09.       
Financial Statements. Unless Tenant is a publicly traded company, in which case this Section 20.09 shall not apply, upon
Landlord’s written request following an Event of Default of Tenant hereunder, Tenant shall furnish to Landlord an accurate, up-to-date
financial statement of Tenant showing Tenant’s financial condition for the immediately preceding calendar quarter and calendar year,
such annual statement to be audited if available. Tenant shall also provide the foregoing financial statements for any Transferee of more
than 2,500 square feet which is not a publicly traded company subject to the reporting requirements of the SEC. If any such financial
statements are not publicly available, Landlord shall treat the financial statements confidentially, but shall be permitted to provide
them to prospective and current lenders and prospective purchasers and to disclose them where required pursuant to applicable law or in
connection with any dispute between Landlord and Tenant. If requested by Tenant, Landlord shall sign a reasonable confidentiality agreement
with respect to the disclosure of such financial information, the terms of which agreement shall be made known to any recipients of such
information.

 

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Section 20.10.       
Parking. Landlord agrees that during the Term, Tenant shall have the right (at no additional charge other than to the extent
provided as Operating Expenses) to use 17 (based on a ratio of 3.3 spaces per 1,000 rentable square feet of the Demised Premises) non-designated
parking spaces as may be reasonably necessary to accommodate officers, employees, guests, invitees and clients, in connection with the
operation of its business following the Commencement Date, and which such non-designated spaces shall be located in the areas designated
at the Property by Landlord from time to time. At Landlord’s election and at no cost to Tenant, Landlord may designate parking spaces
for exclusive use by Tenant and other tenants of the Property and may install signage or implement a pass or sticker system to control
parking use, and may employ valet parking to meet the requirements of this Section, so long as the number of parking spaces available
to Tenant shall not be reduced thereby. To the extent applicable to Tenant’s use of the parking spaces, the provisions of the Lease
shall apply, including rules and regulations of general applicability from time to time promulgated by Landlord.

 

Section 20.11.      
Future Development. (a) Landlord reserves all rights as may be necessary or desirable to construct one or more additions
to the Building. Furthermore, Tenant acknowledges that Landlord may develop or redevelop other buildings or facilities at the Property.
In connection with any such additional development, exterior common areas and facilities at the Property may be eliminated, altered, or
relocated and may also be utilized to serve the Building addition(s) and other new improvements. The rights set forth above shall include
rights to use portions of the Property (other than the Demised Premises) for the purpose of temporary construction staging and related
activities and to implement valet parking for reserved and unreserved parking spaces for the purpose of facilitating construction during
such activities. Landlord agrees that it shall not construct any additions to the Building that will materially and adversely impact the
use of, or access to, the Demised Premises for the Permitted Use (other than on a temporary basis consistent with the operation of a first-class
office building in the suburban Boston area) or which are inconsistent in any material respect with Tenant’s rights under this Lease.

 

(b)        
Landlord reserves the right to develop additions and other improvements at the Property as it may determine in its discretion (provided
that nothing in this Section 20.11(b) shall diminish Landlord’s obligations with respect to the third paragraph of Section 1.01
of this Lease). This may entail subdivision of the land at the Property, a separate ground lease of a portion of the land at the Property,
creation of a subsidiary condominium or common interest community in a manner that allows development of any addition or other improvements
as an independent project, or the exercise of development rights under a condominium regime. In the case of the development of any addition
or other improvements as an independent project, the same shall be excluded from the term “Property” as used in this Lease.
In the event the Property, as originally defined herein, is subdivided, then the term “Property” shall be deemed to refer
only to the parcel or parcels of land on which the Demised Premises are located and at the request of either Landlord or Tenant Exhibit 1.01-2
shall be amended accordingly. In the event the Building is submitted to a subsidiary condominium regime or development rights in the condominium
regime are exercised, the Property shall be deemed to be the condominium unit in which the Demised Premises is located and all common
areas and facilities serving such unit of the condominium, and, at the request of either Landlord or Tenant, Exhibit 1.01-2
shall be amended accordingly. This Lease shall be subject and subordinate to any such subdivision, ground lease, or condominium (and covenants
and easements granted in connection therewith) so long as the same are not inconsistent in any material respect with Tenant’s rights
under this Lease. Tenant agrees to enter into any instruments reasonably requested by Landlord in connection with the foregoing so long
as the same are not inconsistent with the rights of Tenant under this Lease, including a subordination of this Lease to a ground lease
or documents creating a subsidiary condominium or common interest community at the Property. Tenant agrees not to take any action to oppose
any application by Landlord for any permits, consents or approvals from any governmental authorities for any redevelopment or additional
development of all or any part of the Property, and will use all commercially reasonable efforts to prevent any of Tenant’s subtenants
or assigns, and Tenant’s and their respective officers, directors, employees, agents, contractors and consultants (collectively,
 “Tenant Responsible Parties”) from doing so. For purposes hereof, action to oppose any such application shall include,
without limitation, communications with any governmental authorities requesting that any such application be limited or altered. Also
for purposes hereof, commercially reasonable efforts shall include, without limitation, commercially reasonable efforts, upon receiving
notice of any such action to oppose any application on the part of any Tenant Responsible Parties, to obtain injunctive relief, and, in
the case of a subtenant, exercising remedies against the subtenant under its sublease.

 

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Section 20.12.       
Signage. Landlord shall provide, at Landlord’s expense, building standard signage on the exterior monument adjacent
to the main lobby, in the main lobby and on any multi-tenant floor identifying Tenant or a Permitted Transferee designated by Tenant on
the floor on which the Demised Premises is located. Any signage requested by Tenant at Tenant’s entry or in the interior of the
Demised Premises shall be the responsibility of Tenant and subject to Landlord’s prior written approval, which approval shall not
be unreasonably withheld, conditioned or delayed.

 

Section 20.13.       
Brokers. Landlord and Tenant each represent and warrant that they have not directly or indirectly dealt with any broker
with respect to the leasing of the Demised Premises other than CBRE New England (“Broker”). Each party agrees to exonerate
and save harmless and indemnify the other against any loss, cost, claim or expense (including reasonable attorney’s fees) resulting
from a breach of the forgoing representation and warranty. Broker is to be paid by Landlord pursuant to the terms of a separate agreement.

 

Section 20.14.      
Force Majeure. In the event Landlord or Tenant shall be delayed or hindered in or prevented from the performance of any
act (excluding monetary obligations) required under this Lease to be performed by such party by reason of strikes, lockouts, labor troubles,
inability to procure materials, failure of power, restricted governmental law or regulations, riots, insurrection, war or other reason
of a like nature not the fault of such party, then performance of such act shall be excused for the period of the delay, and the period
for the performance of any such act shall be extended for a period equivalent to the period of such delay. Nothing in this Section
20.14 shall excuse Landlord or Tenant’s failure to make payments under this Lease when due.

 

Section 20.15.      
Limitations on Liability. None of the provisions of this Lease shall cause Landlord to be liable to Tenant, or anyone claiming
through or on behalf of Tenant, for any special, indirect or consequential damages, including, without limitation, lost profits or revenues.
None of the provisions of this Lease shall cause Tenant to be liable to Landlord, or anyone claiming through or on behalf of Landlord,
for any special, indirect or consequential damages, including, without limitation, lost profits or revenues, except for a breach of Article
15 or Section 5.02(b)-(c) of this Lease, and provided that no remedy expressly set forth in this Lease shall be deemed special,
indirect or consequential. In no event shall any individual partner, officer, shareholder, trustee, beneficiary, director, agent or similar
party be liable for the performance of or by Landlord or Tenant under this Lease or any amendment, modification or agreement with respect
to this Lease. Tenant agrees to look solely to Landlord’s interest in the Property and the proceeds thereof in connection with the
enforcement of Landlord’s obligations in this Lease.

 

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Section 20.16.       Certain
Definitions. The expression “the original term” means the period of years referred to in Article 2. Prior to the
exercise by Tenant of any election to extend the original term, the expression “the term of this Lease”, the “Term”,
or any equivalent expression shall mean the original term; after the exercise by Tenant of the aforesaid election or other extension
of the term, the expression “the term of this Lease”, the “Term”, or any equivalent expression shall mean the
original term as extended. The expression “attorneys’ fees” includes reasonable fees of in-house and external counsel.

 

Section 20.17.       Prevailing Parties. Landlord shall pay all reasonable attorney’s fees incurred by Tenant in connection with any legal
action concerning an alleged breach of this Lease to the extent that Tenant is the prevailing party. Tenant shall pay all reasonable attorney’s
fees incurred by Landlord in connection with any legal action concerning an alleged breach of this Lease to the extent that Landlord is
the prevailing party.

 

Section 20.18.       
Waiver of Trial by Jury. LANDLORD AND TENANT WAIVE TRIAL BY JURY IN ANY ACTION TO WHICH THEY ARE PARTIES, and further agree
that any action arising out of this Lease (except an action for possession by Landlord, which may be brought in whatever manner or place
provided by law) shall be brought in the state or federal courts for the county where the Demised Premises are located. Tenant expressly
submits and consents in advance to such jurisdiction in any action or proceeding commenced in such court.

 

Section 20.19.       Landlord’s
Reserved Rights. Landlord reserves the right from time to time, without unreasonable (except in emergency) interruption of Tenant’s
use and access to the Demised Premises: (i) to make additions to or reconstructions of the Building and to install, use, maintain,
repair, replace and relocate for service to the Demised Premises and other parts of the Building, or either, pipes, ducts, conduits,
wires and appurtenant fixtures, wherever located in the Demised Premises, the Building, or elsewhere in the Property; (ii) to grant
easements and other rights with respect to the Property, provided that (a) no such installations, replacements or relocations in
the Demised Premises shall be placed, to the extent reasonably practicable, below dropped ceilings, to the inside of interior walls,
or above floors and (b) all such work necessitating entry into the Demised Premises shall be subject to the provisions of Section 7.03,
and (iii) to alter, relocate or eliminate common areas and facilities in the Building, or on or serving the Property, including
with limitation the alteration or relocation (but not the elimination of) the Amenities, from time to time. Landlord shall use reasonable
efforts not to interfere with the conduct of Tenant’s business and to minimize the extent and duration of any inconvenience, annoyance
or disturbance to Tenant resulting from any work pursuant to this paragraph in or about the Demised Premises or Building, consistent
with accepted construction practice, and so long as Landlord uses such reasonable efforts Landlord shall not be liable to Tenant for
any compensation or reduction of Rent by reason of inconvenience or annoyance or for loss of business resulting from any act by Landlord
pursuant to this paragraph.

 

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Section 20.20.       Tenant
as non-Specially Designated National or Blocked Person. Tenant hereby warrants, represents and certifies Tenant is not acting, directly
or indirectly, for or on behalf of any person, group, entity, or nation named by any Executive Order or the United States Treasury Department
as a terrorist, “Specially Designated National and Blocked Person”, or other banned or blocked person, group, entity, nation,
or transaction pursuant to any law, order, rule, or regulation that is enforced or administered by the Office of Foreign Assets Control
and that it is not engaged in this transaction, directly or indirectly, on behalf of, or instigating or facilitating this transaction,
directly or indirectly, on behalf of any such person, group, entity, or nation. Tenant hereby agrees to defend, indemnify, and hold harmless
Landlord from and against any and all claims, damages, losses, risks, liabilities, and expenses (including attorneys’ fees and
costs) arising from or related to any breach of the foregoing warranty, representation, and certification. Tenant shall cause each Transferee
(including any Permitted Transferee), for the benefit of Landlord, to reaffirm, on behalf of such Transferee, the representations of,
and to otherwise comply with the obligations set forth in, this Section 20.20, and it shall be reasonable for Landlord to
refuse to consent to a Transfer in the absence of such reaffirmation and compliance. Tenant agrees that breach of the representations
and warranties set forth in this Section 20.20 shall at Landlord’s election be a default under this Lease if such default
is not cured within three (3) business days of such breach. This Section 20.20 shall survive the termination or earlier expiration
of the Lease.

 

Section 20.21.       
Authority. (a) Tenant warrants and represents that (i) Tenant is duly organized, validly existing and in good standing
under the laws of the State of Delaware; (ii) Tenant has the authority to own its property and to carry on its business as contemplated
under this Lease; (iii) Tenant has received no written notice that it is not in compliance with any laws and orders of public authorities
applicable to Tenant; (iv) Tenant has duly executed and delivered this Lease; (v) the execution, delivery and performance by
Tenant of this Lease (A) are within the powers of Tenant, (B) have been duly authorized by all requisite action, (C) will
not violate any provision of law or any order of any court or agency of government, or any agreement or other instrument to which Tenant
is a party or by which it or any of its property is bound, and (D) will not result in the imposition of any lien or charge on any
Tenant Property, except by the provisions of this Lease; and (vi) the Lease is a valid and binding obligation of Tenant in accordance
with its terms. This Section 20.21(a) shall survive the termination or earlier expiration of the Lease.

 

(b)   Landlord warrants and represents that (i) Landlord is duly organized, validly existing and in good standing under the laws
of the State of Delaware; (ii) Landlord has the authority to own its property and to carry on its business as contemplated under
this Lease; (iii) Landlord has duly executed and delivered this Lease; (iv) the execution, delivery and performance by Landlord
of this Lease (A) are within the powers of Landlord, (B) have been duly authorized by all requisite action, and (C) will
not violate any provision of law or any order of any court or agency of government, or any agreement or other instrument to which Landlord
is a party or by which it or any of its property is bound; and (v) the Lease is a valid and binding obligation of Landlord in accordance
with its terms. This Section 20.21(b) shall survive the termination or earlier expiration of the Lease.

 

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Section 20.22.       Environmental
Representation. Landlord represents and warrants that, on the Commencement Date, the Demised Premises shall not contain any Hazardous
Materials other than materials customarily used in the construction or operation of comparable suburban office buildings.

 

Article 21.

Rooftop License

 

Section 21.01.       Rooftop
License. If requested by Tenant in writing, Landlord shall grant Tenant the appurtenant, non-exclusive, and irrevocable (except upon
the expiration or earlier termination of this Lease) license at no additional charge, but otherwise subject to the terms and conditions
of this Lease, to use a contiguous portion of the roof of the Building approved by Landlord (the “Rooftop Installation Area”)
to operate, maintain, repair and replace telecommunications and other customary rooftop equipment for Tenant’s own exclusive use,
such as a satellite dish, microwave dish, and the like, appurtenant to the Permitted Use installed as permitted pursuant to Article
8 (“Rooftop Equipment”). The exact location and layout of the Rooftop Installation Area shall be approved by Landlord
in its reasonable discretion and shall not exceed in area the Tenant’s Pro Rata Share of rooftop areas made available to tenants
in the Building for similar purposes.

 

Section 21.02.       Installation
and Maintenance of Rooftop Equipment. Tenant shall install Rooftop Equipment at its sole cost and expense, at such times and in such
manner as Landlord may reasonably designate and in accordance with all of the provisions of this Lease, including without limitation
Article 8. Tenant shall not install or operate Rooftop Equipment until it receives prior written approval of the plans for such
work in accordance with Article 8, which approval shall not be unreasonably withheld, conditioned or delayed. Landlord may withhold
approval if the installation or operation of Rooftop Equipment reasonably would be expected to damage the structural integrity of the
Building. Tenant shall cooperate with Landlord as reasonably required to accommodate any re-roofing of the Building by Landlord during
the Term and Tenant shall be responsible for any and all costs associated with moving or temporarily relocating Tenant’s Roof Equipment,
provided Landlord gives Tenant reasonable prior written notice of any need to move or relocate Tenant’s Roof Equipment. Landlord
shall use commercially reasonable efforts to minimize interference with the operation of Tenant’s Roof Equipment as a result of
any such re-roofing work. Tenant’s access to the rooftop for the purposes of exercising its rights and obligations under this Article 21
shall be limited to Normal Business Hours by prior appointment with the property manager, except in the case of emergencies threatening
life or personal property.

 

Tenant shall engage Landlord’s
roofer before beginning any rooftop installations or repairs of Rooftop Equipment, whether under this Article 21 or otherwise,
and, provided that Tenant shall have received a copy thereof, shall always comply with the roof warranty governing the protection of the
roof and modifications to the roof. Tenant shall obtain a letter from Landlord’s roofer following completion of such work stating
that the roof warranty remains in effect. If Tenant installs Rooftop Equipment in the Rooftop Installation Area, Tenant, at its sole cost
and expense, shall cause a qualified roofer to inspect the Rooftop Installation Area at least once a month and correct any loose bolts,
fittings or other appurtenances and shall repair any damage to the roof caused by the installation or operation of Rooftop Equipment.
If Tenant installs Rooftop Equipment in the Rooftop Installation Area, Tenant shall pay Landlord following a written request therefor,
with the next payment of Rent, (i) all applicable taxes or governmental charges, fees, or impositions imposed on Landlord because of Tenant’s
use of the Rooftop Installation Area and (ii) the amount of any increase in Landlord’s insurance premiums as a result of the installation
of Rooftop Equipment. All Rooftop Equipment shall be screened or otherwise designed so that it is not visible from the ground level of
the Property.

 

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Section 21.03.       Indemnification.
Tenant agrees that the installation, operation and removal of Rooftop Equipment shall be at its sole risk. Tenant shall indemnify and
defend Landlord and the other Indemnitees against any liability, claim or cost, including reasonable attorneys’ fees, incurred
in connection with the loss of life, personal injury, damage to property or business or any other loss or injury (except to the extent
due to the negligence or willful misconduct of Landlord or its employees, agents, contractors or invitees) arising out of the installation,
use, operation, or removal of Rooftop Equipment by Tenant or its employees, agents, contractors, or invitees, including any liability
arising out of Tenant’s violation of this Article 21. Subject to the provisions of Section 21.05, Landlord assumes
no responsibility for interference in the operation of Rooftop Equipment caused by other tenants’ equipment, or for interference
in the operation of other tenants’ equipment caused by Rooftop Equipment, and Tenant hereby waives any claims against Landlord
arising from such interference. The provisions of this Section 21.03 shall survive the expiration or earlier termination
of this Lease.

 

Section 21.04.       Removal of Rooftop Equipment. Upon the expiration or earlier termination of the Lease, Tenant, unless and to the extent
otherwise instructed by Landlord in writing, at Tenant’s sole cost and expense, shall (i) remove Rooftop Equipment from the
Rooftop Installation Area in accordance with the provisions of this Lease and (ii) leave the Rooftop Installation Area in good order and
repair, reasonable wear and tear excepted. If Tenant does not remove Rooftop Equipment and restore the Rooftop Installation Area when
so required, Landlord may remove and dispose of it and charge Tenant for all reasonable costs and expenses incurred.

 

Section 21.05.       Interference
by Rooftop Equipment. Landlord may have granted and may hereafter grant roof rights to other parties, and Landlord shall use commercially
reasonable efforts to cause such other parties to minimize interference with Rooftop Equipment. If Rooftop Equipment (i) causes physical
damage to the structural integrity of the Building, (ii) materially interferes with any telecommunications, mechanical or other systems
located at or servicing (as of the Commencement Date) the Building or any building, premises or location in the vicinity of the Building,
(iii) interferes with any other service provided to other tenants in the Building by rooftop installations installed prior to the installation
of Rooftop Equipment or (iv) interferes with any other tenants’ business, in each case in excess of that permissible under F.C.C.
or other regulations (to the extent that such regulations apply and do not require such tenants or those providing such services to correct
such interference or damage), Tenant shall within two (2) business days of notice of a claim of interference or damage cooperate with
Landlord or any other tenant or third party making such claim to determine the source of the damage or interference and effect a prompt
solution at Tenant’s expense (if Rooftop Equipment caused such interference or damage). In the event Tenant disputes Landlord’s
allegation that Rooftop Equipment is causing a problem with the Building (including, but not limited to, the electrical, HVAC, and mechanical
systems of the Building) and/or any other Building tenants’ equipment in the Building, in writing delivered within three (3) business
days of receiving Landlord’s notice claiming such interference, then Landlord and Tenant shall meet to discuss a solution, and
if within seven (7) days of their initial meeting Landlord and Tenant are unable to resolve the dispute, then the matter shall be submitted
to arbitration in accordance with the provisions set forth below.

 

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The parties shall direct the
Boston office of the AAA to appoint an arbitrator who shall have a minimum of ten (10) years’ experience in commercial real estate
disputes and who shall not be affiliated with either Landlord or Tenant. Both Landlord and Tenant shall have the opportunity to present
evidence and outside consultants to the arbitrator.

 

The arbitration shall be conducted
in accordance with the commercial real estate arbitration rules of the AAA insofar as such rules are not inconsistent with the provisions
of this Lease (in which case the provisions of this Lease shall govern). The cost of the arbitration (exclusive of each party's witness
and attorneys’ fees, which shall be paid by such party) shall be borne equally by the parties.

 

Within ten (10) days of appointment,
the arbitrator shall determine whether or not Rooftop Equipment is causing a problem with the Building and/or any other Building tenants’
equipment in the Building, and the appropriate resolution, if any. The arbitrator’s decision shall be final and binding on the parties.
If Tenant shall fail to cooperate with Landlord in resolving any such interference or if Tenant shall fail to implement the arbitrator’s
decision within ten (10) days after it is issued, Landlord may at any time thereafter (i) declare an Event of Default and/or (ii) relocate
the item(s) of Rooftop Equipment in dispute in a manner consistent with the arbitral decision.

 

Section 21.06.       Relocation
of Rooftop Equipment. Based on Landlord’s good faith determination that such a relocation is necessary, Landlord reserves the
right to cause Tenant to relocate Rooftop Equipment located on the roof to comparably functional (i.e., similar in size and utility)
space on the roof by giving Tenant thirty (30) days’ prior notice of such intention to relocate, which comparably functional space
shall then become the Rooftop Installation Area. If within thirty (30) days after receipt of such notice Tenant has not agreed with Landlord
on the space to which Rooftop Equipment is to be relocated, the timing of such relocation, and the terms of such relocation, then Landlord
shall have the right to make all such determinations in its reasonable judgment. Landlord shall pay the reasonable cost of moving Rooftop
Equipment to such other space, taking such other steps necessary to ensure comparable functionality of Rooftop Equipment, and finishing
such space to a condition comparable to the then condition of the current location of Rooftop Equipment. Such payment by Landlord shall
not constitute an Operating Expense under this Lease. Tenant shall arrange for the relocation of Rooftop Equipment within sixty (60)
days after a comparable space is agreed upon or selected by Landlord, as the case may be. In the event Tenant fails to arrange for said
relocation within the sixty-(60)-day period, Landlord shall have the right to arrange for the relocation of Rooftop Equipment at Landlord’s
expense, all of which shall be performed in a manner designed to minimize interference with Tenant’s business.

 

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Article 22.

Option

 

Section 22.01.       Option
to Extend. Provided that (i) Tenant is not in default hereunder, after any applicable notice and cure periods have expired,
at the time Tenant gives its Extension Notice or at the time the Option Term would commence, or (ii) no Transfer is then in effect
that required Landlord’s consent under Article 13, Tenant shall have the right, at its election, to extend the original term
of this Lease for one (1) additional period of three (3) years (the “Option Term”) commencing upon the expiration
of the original term, provided that Tenant shall give Landlord an irrevocable written notice (an “Extension Notice”)
in the manner provided in Section 18.01 of the exercise of its election to so extend at least nine (9) months, and no more than
twelve (12) months, prior to the expiration of the term of this Lease. Except for this Article 22, and as expressly otherwise
provided in this Lease, all the agreements and conditions in this Lease contained shall apply to the Option Term, including without limitation
the obligation to pay Additional Rent for Tenant’s Pro Rata Share of Taxes and Tenant’s Pro Rata Share of Operating Expenses.
If Tenant shall give written notice as provided in Section 18.01 of the exercise of the election in the manner and within the time
provided aforesaid, the Term shall be extended upon the giving of the notice without the requirement of any action on the part of Landlord.
If Tenant fails to timely provide the Extension Notice (time being of the essence), then the option for the Option Term shall be terminated.
The provisions of this Article 22 are personal to the original Tenant named under this Lease (or an assignee of Tenant that is a
Permitted Transferee).

 

Section 22.02.       
Extension Rent. The annual Base Rent payable for each year during the Option Term (the “Extension Rent Rate”)
shall be the Market Rent as determined in the manner set forth in Sections 22.03, 22.04 and 22.05, below.

 

Section 22.03.       Market
Rent. If Tenant gives Landlord timely notice of its election to extend the term of this Lease, then within sixty (60) days thereafter,
Landlord shall give Tenant written notice of Landlord’s estimate of the Extension Rent Rate. For purposes hereof, the “Market
Rent” shall mean the fair market rent for Tenant’s space, based on the rent for similar space in the Property or if no such
space is available, rent for similar space in similar first class suburban buildings in the Route 128 West submarket for the Demised
Premises in its then as-is condition (or such better condition as Tenant shall be required to maintain under this Lease), taking into
account all of the factors that a landlord and tenant would consider in negotiating an arms-length rent.

 

Section 22.04.       Tenant’s
Right to Dispute Market Rent. In the event that Tenant disputes the Extension Rent Rate set forth in Landlord’s notice, Tenant
may, within fifteen (15) days of its receipt of notice from Landlord, either (i) elect to withdraw its request for an extension,
in which case there shall be no extension of the term of this Lease, or (ii) give notice to Landlord of such dispute and thereupon
the matter shall be submitted to arbitration in accordance with the terms set forth in Section 22.05 below. If Tenant does
not so dispute Landlord’s estimate of the Extension Rent Rate within the fifteen (15) day period, Tenant shall be deemed to
have accepted Landlord’s estimate of the Extension Rent Rate.

 

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Notwithstanding the submission
of the issue of “Market Rent” to arbitration, Base Rent for the next ensuing year of the term of this Lease shall be paid
at Landlord’s estimate of the Extension Rent Rate until the arbitration is completed. If, upon completion of the arbitration, it
is determined that the Extension Rent Rate is less or more than that set by Landlord, then an adjustment based upon such lower or greater
rent shall be made based on the number of months previously paid by Tenant. In no event shall the extension of the term of this Lease
be affected by the determination of the Extension Rent Rate, such exercise of extension being fixed at the time at which notice is given.

 

Section 22.05.       
Arbitration of Market Rent. In the event Landlord and Tenant shall be unable to agree on the Market Rent for the Option
Term, the Market Rent shall be established in the following manner of arbitration:

 

(a)            Each
of Tenant and Landlord shall choose an arbitrator knowledgeable in the field of establishing fair rental values in this area;

 

(b)           The arbitrators selected in accordance with “(a)” above shall select a third arbitrator who is a qualified real estate
appraiser with at least ten (10) years’ experience in the appraisal of first class office buildings in the suburban Boston
area;

 

(c)            The
selections shall be completed no later than twenty-one (21) days after Tenant’s notice disputing Landlord’s estimate
of the Market Rent. If any selection is not made within the 21-day time period, either party may petition the Boston office of the American
Arbitration Association to make the selection;

 

(d)          
Within thirty (30) days after their appointment, the arbitrators shall determine the Market Rent for the Demised Premises
for the Option Term, and shall notify Tenant and Landlord of such determination within seven (7) days, which determination shall
be final and binding upon Tenant and Landlord. If the arbitrators are unable to agree upon the fair market rent, the Market Rent will
be deemed to be the average of the Market Rents proposed by the arbitrators, except that (i) if the lowest proposed Market Rent is
less than 90% of the second to lowest proposed Market Rent, the lowest proposed Market Rent will automatically be deemed to be 90% of
the second to lowest proposed Market Rent and (ii) if the highest proposed Market Rent is greater than 110% of the second to highest
proposed Market Rent, the highest proposed Market Rent will automatically be deemed to be 110% of the second to highest proposed Market
Rent.

 

(e)          
The foregoing arbitration shall be conducted in accordance with the rules of the American Arbitration Association or its successors;

 

(f)            Landlord and Tenant shall each pay all costs of the arbitrator it selected and one-half (1/2) of all other costs of the arbitration
proceedings.

 

For the purpose of determining
Market Rent the parties shall use as a guideline the average rental rates for similar available space in similar buildings owned by Landlord
or its affiliates in the Route 128 West submarket.

 

It is intended that this instrument
will take effect as a sealed instrument.

 

[Remainder of page intentionally left blank.]

 

    48

     

    

 

IN WITNESS WHEREOF, Landlord
and Tenant have signed the same as of the date first noted above.

 

	 	LANDLORD:
	 	 	 
	 	PDM 930 UNIT, LLC
	 	 	 
	 	By: PD Winter Street, LLC, its sole member
	 	 	 
	 	By:	/s/ Paul R. Marcus
	 	Name:      Paul R. Marcus
	 	Title:        President
	 	 	 
	 	AEROVATE THERAPEUTICS, INC.
	 	 	 
	 	By:	/s/ Benjamin Dake
	 	Name:      Benjamin Dake
	 	Title:        President
	 	 	 
	 	By:	/s/ George Eldridge
	 	Name:      George Eldridge
	 	Title:        Treasurer

 

    49

     

    

 

EXHIBIT 1.01-1

Premises Plan

 

 

    EXHIBIT 1.01-1 - 1

     

    

 

EXHIBIT 1.01-2

Property Description

 

The 930 Unit of the Reservoir Woods Primary Condominium,
which Condominium was created by that certain Master Deed dated as of February 26, 2007, and recorded with the Middlesex South Registry
of Deeds in Book 49037, Page 229, as affected by First Amendment to Master Deed dated as of December 2, 2008, recorded in Book 51992,
Page 472 (as further amended from time to time, the “Master Deed”), together with the undivided interests appurtenant
thereto in and to the limited common elements of the Condominium and together with, and subject to, the benefit of the rights, easements,
restrictions, covenants, agreements, obligations, conditions and other provisions referred to or set forth in the Master Deed, the provisions
of the Reservoir Woods Primary Condominium Trust dated as of February 26, 2007, and recorded with the Middlesex South Registry of Deeds
in Book 49037, Page 260 (as amended from time to time), and the by-laws and rules and regulations referred to therein (as amended from
time to time), being incorporated herein by reference with the same force and effect as if set forth herein in full. Specifically excluded
from the 930 Unit and its undivided interests appurtenant thereto are any rights expressly reserved to the Declarant under the Master
Deed, including without limitation any phasing or development rights expressly reserved to the Declarant pursuant to Section 15
of the Master Lease.

 

The 930 Unit is located at 920, 930 and 940 Winter
Street, Waltham, Middlesex County, Commonwealth of Massachusetts and is further described in the Master Deed to which reference is hereby
made for a more particular description.

 

    EXHIBIT 1.01-2 - 1

     

    

 

EXHIBIT 3.02

Landlord’s Services

 

	I.	CLEANING
	 	 
	A.	DAILY ON BUSINESS DAYS

 

		1.	Change waste basket liners as necessary.

 

		2.	Remove all waste material to building loading dock or recycling area using janitor carriages, including
boxes and cartons as necessary.

 

		3.	Spot clean by damp wiping fingerprints, smears and smudges on walls, doors, frames, kick and push plates,
handles, and light switches.

 

		4.	Clean spots and stains on rug and V.C.T.

 

		5.	Damp wipe all Formica countertops, sinks, and table tops.

 

		6.	Wash and clean all water fountains and adjacent floor area.

 

		7.	Wipe clean all brass and other bright work.

 

		8.	Vacuum rugs, floor mats and carpeting in major traffic areas (corridors, reception areas, etc.) and, as
needed, in offices.

 

		9.	Dust all chair rails and trim within normal hand reach and all baseboards.

 

		10.	Dust and spot clean all telephones.

 

		11.	Sweep and buff resilient floors, wet mopping if necessary.

 

		12.	Remove all cobwebs from ceiling, wall and light fixtures, as necessary.

 

		13.	Wash ceramic tile, marble and terrazzo flooring in entrance foyers.

 

		14.	Sweep private stairways, wash as necessary.

 

		15.	Empty recycling baskets at desks into central hampers in each tenant space.

 

		16.	Clean all entrance doors.

 

		17.	Wipe down any desks or surfaces that have been cleared off.

 

		18.	Upon completion of cleaning, all furniture, receptacles, etc. will be returned to their original location,
all lights will be turned off and doors locked, leaving the premises in an orderly condition.

 

    EXHIBIT 3.02 - 1

     

    

 

		19.	Hand dust and wipe clean with treated cloths all horizontal surfaces, including furniture, office equipment,
window sills, door ledges, chair rails and counter tops, within normal reach.

 

		20.	Upon completion of cleaning all alarms will be engaged if applicable.

 

	B.	TWICE WEEKLY

 

		1.	Move and dust under all lightweight desk equipment and telephones and replace same.

 

		2.	Hand dust grill work.

 

		3.	Vacuum all rugs, floor mats and carpeting, moving light furniture other than desks, file cabinets, etc.,
including carpet edges and corners.

 

	C.	WEEKLY

 

		1.	Wash all glass at tenant entrance doors.

 

		2.	Wash all glass tenant entrance sidelights.

 

		3.	Dust all closet shelving, coat racks, etc.

 

		4.	Brush and hand dust all carpet edges and other areas inaccessible to vacuum attachments.

 

		5.	Brush seat cushions on chairs, sofas, etc.

 

		6.	Clean and shine all window mullions and related metal work.

 

		7.	Dust moldings, ledges, sills, shelves, door frames, ventilation grills, and partitions with a treated
cloth.

 

		8.	Wipe down doors, frames and light switches.

 

		9.	Disinfect telephones.

 

		10.	Transport recycling hamper to loading dock for weekly pick-up.

 

	D.	MONTHLY

 

		1.	Render high dusting not reached in nightly cleaning to include:

 

		a)	dusting of all pictures, frames, charts, graphs, and similar wall

		b)	dusting of all vertical surfaces, such as walls, partitions, doors and door frames, etc.

 

    EXHIBIT 3.02 - 2

     

    

 

		c)	dusting of all pipes, ducts, and high moldings; and

		d)	dusting of all Venetian blinds. hangings;

 

		2.	Spray buff all resilient floors.

 

		3.	Thoroughly vacuum seat cushions on chairs, sofas, etc. Damp wipe all vinyl or plastic covered office furniture.

 

		E.	QUARTERLY

 

		1.	Strip and apply approved finishes to all resilient tile floor areas.

 

		2.	Wash thoroughly all interior glass doors, side lites and partitions.

 

		3.	Rub down metal and other high level bright work as necessary, but not less than quarterly.

 

LAVATORIES

 

	A.	DAILY ON BUSINESS DAYS

 

		1.	Sweep, wash, and rinse all floors thoroughly, using an approved disinfectant.

 

		2.	Empty and disinfect paper towel and sanitary disposal receptacles. Replace liners back into receptacles.

 

		3.	Refill tissue holders, soap dispensers, towel dispensers and sanitary dispensers.

 

		4.	Wash and polish all mirrors, powder shelves, brightwork, flushometers, piping and toilet seat hinges,
etc.

 

		5.	Remove waste paper and refuse to designated areas on the premises.

 

		6.	Clean and sanitize all fixtures including toilet bowls, shower stalls, urinals and basins with a germicidal
cleaner.

 

		7.	Wash and wipe dry both sides of toilet seats with a disinfectant.

 

		8.	Spot clean partitions, doors, doorframes and light switches.

 

		9.	Remove all cobwebs from walls and ceilings.

 

		10.	Add water to floor drains.

 

    EXHIBIT 3.02 - 3

     

    

 

	B.	WEEKLY

 

		1.	Wash all partitions and walls.

 

		2.	Vacuum all air vents.

 

		3.	Wipe down all high light fixtures.

 

		4.	Check and refill, if necessary, all automatic deodorizing equipment.

 

	C.	MONTHLY

 

		1.	Machine scrub all tile floors with an approved germicidal detergent solution as necessary, but not less
than monthly.

 

		2.	Scrub and disinfect partitions.

 

		3.	Dust and wash all ventilation grilles, lighting fixtures, vents and diffusers.

 

	D.	SEMI-ANNUALLY

 

		1.	Strip and apply an approved finish to all vinyl tile floors.

 

ELEVATORS

 

	A.	DAILY ON BUSINESS DAYS

 

		1.	Clean interior walls, doors, and bright work, including ceiling.

 

		2.	Vacuum floors.

 

		3.	Clean door sills or tracks.

 

		4.	Clean exterior elevator doors, and frames.

 

LOBBIES AND COMMON AREAS

 

	A.	DAILY ON BUSINESS DAYS

 

		1.	Empty all waste baskets and change liners. Remove waste material to designated area.

 

		2.	Spot clean all interior glass in partitions and doors.

 

		3.	Clean and sanitize drinking fountains.

 

		4.	Hand dust and wipe clean with treated cloths all furniture, picture frames, window sills, railings, and
planters.

 

    EXHIBIT 3.02 - 4

     

    

 

		5.	Clean any and all metal work inside lobby.

 

		6.	Sweep main stairwell and dust handrails.

 

		7.	Vacuum all carpets, rugs and floor mats.

 

		8.	Wipe down mailboxes.

 

		9.	Spot clean (shampoo if necessary) carpeted areas, as needed.

 

		10.	Wipe down and clean main lobby directory and glass.

 

		11.	Clean and disinfect public telephones.

 

		12.	Dust and spot clean security desk, security podiums and monitors.

 

		13.	Remove cobwebs from wall and ceiling.

 

		14.	Dry mop, damp mop, or spray all lobby flooring to maintain a high, clean shine.

 

		15.	Dust lobby furniture.

 

		16.	Spot clean walls, doorframes, door handles and light switches.

 

		17.	Dust and spot clean windowsills

 

		18.	Dust chair rails, furniture and exhibits in all common areas.

 

		19.	Police all stairwells for litter.

 

		20.	Police loading dock area for litter. Sweep up any build-up of sand and remove any standing water.

 

		21.	Damp mop all freight service vestibule flooring.

 

		22.	Spot clean and wipe fingerprints, smears and smudges on walls, door, frames, kick and push plates, handles, light switches and glass
surfaces.

 

	B.	WEEKLY

 

		1.	Clean and polish lobby furniture.

 

		2.	Vacuum all upholstered furniture.

 

		3.	Dust all wall hangings.

 

		4.	Dust and clean all baseboards.

 

    EXHIBIT 3.02 - 5

     

    

 

		5.	Dust and sweep all stairwells including landings.

 

		6.	Damp mop and buff resilient floors in freight elevator service vestibule.

 

		7.	Dust ventilation and air conditioning louvers, grills, diffusers and high moldings.

 

	C.	MONTHLY

 

		1.	Machine scrub brick or granite lobby floor.

 

		2.	Dust fire extinguishers and hose cabinets.

 

		3.	Dust walls from ceiling to floor.

 

		4.	Dust all lighting fixtures.

 

		5.	Wash stairwells (walls, rails, pipes, etc.) and landings.

 

	D.	QUARTERLY

 

		1.	Strip and wax all resilient floors.

 

		2.	Shampoo all common area carpeting.

 

		3.	Polish high level bright work as necessary.

 

		4.	Dust all Venetian blinds as needed, but not less than quarterly.

 

		5.	Clean inside and out of stairwell lighting covers.

 

		E.	SEMI-ANNUALLY

 

		1.	Clean all ceiling lights, globes and fixtures.

 

		2.	Dust and wash as necessary all marble wall surfaces.

 

JANITORIAL CLOSETS

 

		A.	NIGHTLY

 

		1.	Scour and disinfect wash basins.

 

		2.	Sweep and damp mop flooring using germicidal disinfectant solution.

 

		3.	Keep all closets neat and free from odors, debris and materials.

 

    EXHIBIT 3.02 - 6

     

    

 

MISCELLANEOUS

 

		A.	DAILY

 

		1.	Change light bulbs as necessary.

 

		2.	Report all maintenance deficiencies to building management e.g., inoperable light fixture, plumbing problems,
roof leaks, etc.

 

	B.	WEEKLY

 

		1.	Check supplies and order as necessary.

 

	C.	MONTHLY

 

		1.	Shampoo elevator carpets.

 

DAILY DAY PORTER/MATRON SPECIFICATIONS

 

		1.	Check and clean all common areas as needed.

 

		2.	Sweep, mop, and vacuum main lobby floor as necessary.

 

		3.	Clean main lobby glass and bright work as necessary.

 

		4.	Dust horizontal surfaces, woodwork, artwork, etc., in main lobby as necessary.

 

		5.	Change common area light bulbs as necessary.

 

		6.	Spread ice melt on all building walks and entrances as needed.

 

		7.	Respond to tenant and management requests as needed.

 

		8.	Provide emergency assistance as needed.

 

		9.	Police areas in lobbies, spot cleaning where necessary.

 

		10.	Police elevator cabs, vacuuming and dusting where necessary.

 

		11.	Clean glass on all entrance doors, keeping glass free of fingerprints.

 

		12.	Clean all areas that are not accessible at night. Areas to be determined by Manager.

 

		13.	Clean loading dock area as directed by Manager.

 

    EXHIBIT 3.02 - 7

     

    

 

		14.	Police lobby.

 

		15.	Tour restrooms 3 times daily (as needed), replacing paper products and sweeping floors as needed. Keep sinks and sink counters wiped
down, and provide general pick-up of floors.

 

		16.	Police common area carpeting, vacuuming or carpet sweeping as needed.

 

		17.	Police all stairwells, at least twice daily, keeping free of litter.

 

		18.	Sweep exterior entranceways to parking lots and buildings.

 

		19.	Police exterior areas and parking areas removing trash from receptacles as needed, also keeping grounds and parking garage free of
debris.

 

		20.	Present Manager with a complete list of maintenance repairs or adjustments needed to bathroom fixtures, flushometers, lamps needing
to be replaced, etc.

 

		21.	Maintain inventory of all needed restroom supplies and present manager with any orders as needed. All supplies to be stored in basement
area, in a neat and orderly way.

 

Tenants requiring services in excess of those described
above shall request same through Landlord. If Landlord determines that Tenant’s use or occupancy of the Demised Premises necessitates
the same, Landlord may provide such services without request. In either case, such services shall be at Tenant’s expense.

 

II.         HEATING, VENTILATING,
AIR CONDITIONING

 

Landlord shall provide for Building heating and
cooling capacities as further consistent with that for first-class office space. Landlord shall furnish space heating and cooling as normal
seasonal changes may require to provide reasonably comfortable space temperature and ventilation for the Demised Premises and the common
areas within the Building under normal business operation, daily from 8:00 a.m. to 6:00 p.m. (Saturdays to 1:00 p.m. with
notice), Sundays, and holidays excepted. If Tenant shall require air conditioning or heating or ventilation outside the hours and days
above specified, Landlord shall furnish such service at Tenant’s expense.

 

III.        WATER

 

A.     Cold
water at temperatures supplied by the City of Waltham water mains for drinking, lavatory, ordinary office cleaning and toilet purposes
and hot water for lavatory purposes only from regular building supply at prevailing temperatures. If Tenant requires, uses or consumes
water for any other purpose, Landlord may, at Tenant’s expense, install a meter or meters to measure the water so supplied, in which
case Tenant shall upon Landlord’s request reimburse Landlord for the cost of the water (including heating or cooling thereof) consumed
in such areas and the sewer use charges resulting therefrom.

 

    EXHIBIT 3.02 - 8

     

    

 

IV.        ELEVATORS

 

A.     The
passenger elevator system shall operate automatically during business hours. At least one elevator shall be available to Tenant at all
times.

 

V.         ELECTRICAL SERVICE

 

A.     Landlord
shall, at Tenant’s expense, provide electric power to the Demised Premises for Tenant’s lighting and equipment power at 6.0
watts connected load per square foot of rentable floor area of the Demised Premises.

 

B.     Tenant’s
use of electricity is measured by check-meters currently serving the Demised Premises. Landlord will furnish and install at Tenant’s
expense all replacement lighting tubes, lamps, and ballasts required by Tenant for Building standard lighting. Landlord will clean lighting
fixtures on a regularly scheduled basis at Tenant’s expense.

 

    EXHIBIT 3.02 - 9

     

    

 

 

EXHIBIT 10.01

Form of SNDA

 

	RECORDING
                                            REQUESTED 
 BY AND WHEN 
 RECORDED RETURN TO:

                                                                                 

                                                                                                                           , Esq.

                                                                                 

                                                                                ____________________

                                                                                 

                                                                                
	 

 

SUBORDINATION,

NONDISTURBANCE

AND ATTORNMENT AGREEMENT

 

		NOTICE:	THIS SUBORDINATION, NONDISTURBANCE AND ATTORNMENT AGREEMENT RESULTS IN YOUR LEASEHOLD ESTATE IN THE
PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT.

 

DEFINED TERMS

	Execution Date:  As of [_________________]
	
    Lender & Address:

    MetLife Real Estate Lending LLC, a Delaware limited liability company

    _______________________

    _______________________

    _______________________

    Attention: [_____________]

     

    and:

     

    MetLife Real Estate Lending LLC

    One MetLife Way

    Whippany, New Jersey 07981

    Attention: [_____________]

    

     

 

    EXHIBIT 10.01 - 1

     

    

 

	
    Tenant & Address:

    [_________________]

    

     

	
    Tenant & Address:

    [_________________]

    

     

	
    Landlord & Address:

    [_________________]

    

     

	Loan: A first mortgage loan in the original principal amount of $[_________________] from Lender to Landlord
	
    Note: A Promissory Note executed by Landlord to Lender in the
    amount of the Loan dated as of [_________________]

    

     

	
    Security Instrument: A [Mortgage/Deed of Trust], Security Agreement
    and Fixture Filing dated as of [_________________], executed by Landlord [to/for the benefit of] Lender securing repayment of the Note.
    The Security Instrument will be recorded in the records of the County in which the Property is located.

    

     

	Loan Agreement:  A Loan Agreement dated as of [_________________] by and between Landlord and Lender
	
    Lease and Lease Date: The lease entered into by Landlord and
    Tenant dated as of [_____________] covering the Premises.

    [Add amendments]

     

	
    Property: [Property Name]

    [Street Address]

    [City, State, Zip]

     

    The Property is more particularly described on
    Exhibit A.

    

     

 

THIS SUBORDINATION, NONDISTURBANCE
AND ATTORNMENT AGREEMENT (this “Agreement”) is made by and among Tenant, Landlord, and Lender and affects the Property
described in Exhibit A. Certain terms used in this Agreement are defined in the Defined Terms. This Agreement is entered into as
of the Execution Date with reference to the following facts:

 

A.                Landlord and Tenant have entered into the Lease covering certain space in the improvements located in and upon the Property (the
 “Premises”).

 

    EXHIBIT 10.01 - 2

     

    

 

B.                
Lender has made or is making the Loan to Landlord evidenced by the Note. The Note is secured, among other documents, by the Security
Instrument.

 

C.                
Landlord, Tenant and Lender all wish to subordinate the Lease to the lien of the Security Instrument.

 

D.               
Tenant has requested that Lender agree not to disturb Tenant’s rights in the Premises pursuant to the Lease in the event
Lender forecloses the Security Instrument, [or acquires the Property pursuant to the power of sale contained in the Security Instrument]
or receives a transfer of the Property by a conveyance in lieu of foreclosure of the Property (collectively, a “Foreclosure Sale”)
but only if Tenant is not then in default under the Lease and Tenant attorns to Lender or a third party purchaser at the Foreclosure Sale
(a “Foreclosure Purchaser”).

 

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

 

 

Section 1.               Subordination. The Lease and the leasehold estate created by the Lease and all of Tenant’s rights under the
Lease are and shall remain subordinate to the Security Instrument and the lien of the Security Instrument, to all rights of Lender under
the Security Instrument and to all renewals, amendments, modifications and extensions of the Security Instrument.

 

Section 2.               Acknowledgments by Tenant. Tenant agrees that: (a) Tenant has notice that the Lease and the rent and all other sums
due under the Lease have been or are to be assigned to Lender as security for the Loan; (b) in the event that Lender notifies Tenant of
a default under the Security Instrument and requests Tenant to pay its rent and all other sums due under the Lease to Lender, Tenant shall
pay such sums directly to Lender or as Lender may otherwise request; (c) Tenant shall send a copy of any notice or statement under the
Lease to Lender at the same time Tenant sends such notice or statement to Landlord and (d) this Agreement satisfies any condition or requirement
in the Lease relating to the granting of a nondisturbance agreement.

 

    EXHIBIT 10.01 - 3

     

    

 

Section 3.                Foreclosure and Sale. In the event of a Foreclosure Sale,

 

(a)            So long as Tenant complies with this Agreement and is not in default under any of the provisions of the Lease, the Lease
shall continue in full force and effect as a direct lease between Lender and Tenant, and Lender will not disturb the possession of Tenant,
subject to this Agreement. To the extent that the Lease is extinguished as a result of a Foreclosure Sale, a new lease shall automatically
go into effect upon the same provisions as contained in the Lease between Landlord and Tenant, except as set forth in this Agreement,
for the unexpired term of the Lease. Tenant agrees to attorn to and accept Lender as landlord under the Lease and to be bound by and perform
all of the obligations imposed by the Lease, or, as the case may be, under the new lease, in the event that the Lease is extinguished
by a Foreclosure Sale. Upon Lender’s acquisition of title to the Property, Lender will perform all of the obligations imposed on
the Landlord by the Lease except as set forth in this Agreement; provided, however, that Lender shall not be: (i) liable for any act or
omission of a prior landlord (including Landlord); or (ii) subject to any offsets or defenses that Tenant might have against any prior
landlord (including Landlord); or (iii) bound by any rent or additional rent which Tenant might have paid in advance to any prior landlord
(including Landlord) for a period in excess of one month or by any security deposit, cleaning deposit or other sum that Tenant may have
paid in advance to any prior landlord (including Landlord); or (iv) bound by any amendment, modification, assignment or termination of
the Lease made without the written consent of Lender; or (v) obligated or liable with respect to any representations, warranties or indemnities
contained in the Lease; or (vi) liable to Tenant or any other party for any conflict between the provisions of the Lease and the provisions
of any other lease affecting the Property which is not entered into by Lender.

 

(b)            Upon
the written request of Lender after a Foreclosure Sale, the parties shall execute a lease of the Premises upon the same provisions as
contained in the Lease between Landlord and Tenant, except as set forth in this Agreement, for the unexpired term of the Lease.

 

(c)            Notwithstanding
any provisions of the Lease to the contrary, from and after the date that Lender acquires title to the Property as a result of a Foreclosure
Sale, (i) Lender will not be obligated to expend any monies to restore casualty damage in excess of available insurance proceeds; (ii)
Tenant shall not have the right to make repairs and deduct the cost of such repairs from the rent without a judicial determination that
Lender is in default of its obligations under the Lease; (iii) in no event will Lender be obligated to indemnify Tenant, except where
Lender is in breach of its obligations under the Lease or where Lender has been actively negligent in the performance of its obligations
as landlord; and (iv) other than determination of fair market value, no disputes under the Lease shall be subject to arbitration unless
Lender and Tenant agree to submit a particular dispute to arbitration.

 

Section 4.               Subordination
and Release of Purchase Options. Tenant represents that it has no right or option of any nature to purchase the Property
or any portion of the Property or any interest in the Landlord. To the extent Tenant has or acquires any such right or option, these
rights or options are acknowledged to be subject and subordinate to the Security Instrument and are waived and released as to Lender
and any Foreclosure Purchaser.

 

Section 5.               Acknowledgment
by Landlord. In the event of a default under the Security Instrument, at the election of Lender, Tenant shall and is directed
to pay all rent and all other sums due under the Lease to Lender.

 

Section 6.               Construction
of Improvements. Lender shall not have any obligation or incur any liability with respect to the completion of tenant improvements
for the Premises.

 

Section 7.               Notice. All notices under this Agreement shall be deemed to have been properly given if delivered by overnight courier
service or mailed by United States certified mail, with return receipt requested, postage prepaid to the party receiving the notice at
its address set forth in the Defined Terms (or at such other address as shall be given in writing by such party to the other parties)
and shall be deemed complete upon receipt or refusal of delivery.

 

    EXHIBIT 10.01 - 4

     

    

 

Section 8.              Miscellaneous.
Lender shall not be subject to any provision of the Lease that is inconsistent with this Agreement. Nothing contained in this Agreement
shall be construed to derogate from or in any way impair or affect the lien or the provisions of the Security Instrument. This Agreement
shall be governed by and construed in accordance with the laws of the State in which the Property is located.

 

Section 9.               Liability
and Successors and Assigns. In the event that Lender acquires title to the Premises or the Property, Lender shall have
no obligation nor incur any liability in an amount in excess of $3,000,000 and Tenant’s recourse against Lender shall in no extent
exceed the amount of $3,000,000. This Agreement shall run with the land and shall inure to the benefit of the parties and their respective
successors and permitted assigns including a Foreclosure Purchaser. If a Foreclosure Purchaser acquires the Property or if Lender assigns
or transfers its interest in the Note and Security Instrument or the Property, all obligations and liabilities of Lender under this Agreement
shall terminate and be the responsibility of the Foreclosure Purchaser or other party to whom Lender’s interest is assigned or
transferred. The interest of Tenant under this Agreement may not be assigned or transferred except in connection with an assignment of
its interest in the Lease which has been consented to by Lender.

 

[NO FURTHER TEXT ON THIS PAGE]

 

    EXHIBIT 10.01 - 5

     

    

 

IN WITNESS WHEREOF, the
parties have executed this Subordination, Nondisturbance and Attornment Agreement as of the Execution Date.

 

IT IS RECOMMENDED THAT THE PARTIES CONSULT
WITH THEIR ATTORNEYS PRIOR TO THE EXECUTION OF THIS SUBORDINATION, NONDISTURBANCE AND ATTORNMENT AGREEMENT.

 

 

	LENDER:	METLIFE REAL ESTATE LENDING LLC,
	 	a Delaware limited liability company

 

		By:	MetLife Investment Management, LLC,

a Delaware limited liability company,

its investment manager

 

	 	By:	
	 	 	Name:	 
	 	 	Title:	Authorized Signatory and [Director/Managing Director]

 

ACKNOWLEDGMENT

 

[INSERT STATE SPECIFIC ACKNOWLEDGMENT]

 

    EXHIBIT 10.01 - 6

     

    

 

	TENANT:	[TENANT]

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

ACKNOWLEDGMENT

 

[INSERT STATE SPECIFIC ACKNOWLEDGMENT]

 

    EXHIBIT 10.01 - 7

     

    

 

	LANDLORD:	[LANDLORD]

 

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

ACKNOWLEDGMENT

 

[INSERT STATE SPECIFIC ACKNOWLEDGMENT]

 

    EXHIBIT 10.01 - 8

     

    

 

EXHIBIT A

 

PROPERTY DESCRIPTION

 

    EXHIBIT 10.01 - 9

     

    

 

The undersigned guarantor to the Lease hereby
consents to the foregoing Subordination, Nondisturbance and Attornment Agreement and reaffirms that the [Guaranty of Lease] dated [_________________________]
remains in full force and effect as of the date of the foregoing Subordination, Nondisturbance and Attornment Agreement.

 

	GUARANTOR:	[GUARANTOR]

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

    EXHIBIT 10.01 - 10

     

    

 

EXHIBIT 10.02

Form of Tenant Estoppel Certificate

 

TENANT ESTOPPEL CERTIFICATE

 

______________________________
(“Tenant”), with the understanding that __________________________ will rely upon Tenant's agreements and representations
made in this Certificate, hereby certifies, represents, warrants and agrees as follows:

 

(a)
Tenant is the tenant under that certain lease dated __________________________ [and amended _________________________________] ([as so
amended], the “Lease”) between Tenant and PDM 930 Unit, LLC (which, together with its successors in interest, will
be called “Landlord”), concerning Tenant’s occupancy of 5,003 rentable square feet of space (the “Premises”)
located at a building known and numbered as 920, 930 and 940 Winter Street, Waltham, Massachusetts. The Lease contains all of the understandings
and agreements between Tenant and Landlord, and is in existence and in full force and effect without modification, addition, extension
or renewal on the date hereof, except as specifically noted above.

 

(b)  
Tenant is in actual possession of the Premises and all work required to be completed pursuant to the Lease has been satisfactorily
completed [or, if not, describe any incomplete work].

 

(c)  
The current term of the Lease commenced on _________________________, and will expire on ___________________________. Tenant
has no right to renew or extend the Lease term or to terminate the Lease.

 

(d)  
Tenant commenced the payment of rent on __________________________ and has paid rent and all other charges due under the
Lease through ____________________________. The current annual base or fixed rent payable by Tenant under the Lease is $____________.
No rent under the Lease has been or will be paid more than thirty (30) days in advance of its due date. Except as expressly set forth
in Section 2.01 of the Lease, Tenant has no agreement with Landlord concerning free rent, partial rent, rebate of rental payments
or any other type of rental concession except as follows: _______________________________________________________.

 

(e)  
Tenant has delivered a security deposit to Landlord in the amount of $______________________.

 

(f)   
Tenant has no exclusive business rights, rights of first refusal, rights of first offer or other rights to expand or purchase
the Premises or any other part of the building(s) or land upon which the Premises is located except as follows:_______________________________________________________________.

 

    EXHIBIT 10.02 - 1

     

    

 

(g)  
As of the date of this Certificate: (a) neither Tenant nor Landlord is in default under any of the terms of the Lease; (b)
all obligations and conditions under the Lease to be performed to date by Landlord have been satisfied; (c) no event has occurred which,
with the passage of time or the giving of notice or both, would constitute an event of default by Landlord under the Lease; and (d) Tenant
has no current defenses or claims against Landlord or rights of offset against any rents payable to Landlord under the Lease or otherwise;
in all cases, except as follows: _________________________.

 

(h)  
Tenant has not assigned the Lease nor sublet, licensed, mortgaged or otherwise encumbered all or any portion of the Premises
[except as follows:].

 

(i)    
Tenant has received no notice by any governmental authority or person claiming a violation of, or requiring compliance with,
any federal, state or local statute, ordinance, rule, regulation or other requirement of law, for environmental contamination at the Premises
and no hazardous, toxic or polluting substances or wastes have been generated, treated, manufactured, stored, refined, used, handled,
transported, released, spilled, disposed of or deposited on, in or under the Premises [except as follows:]

 

IN WITNESS WHEREOF,
the undersigned has caused this Certificate to be duly executed and delivered this ________ day of ______________________, 20__.

 

	 	TENANT:
	 	 
	 	 
	 	(Exact formal name of Tenant)

 

	 	By:	 

	 	Name (Print):

 

    EXHIBIT 10.02 - 2

     

    

 

SECRETARY’S CERTIFICATE

 

I, _____________________________, Secretary of
Aerovate Therapeutics, Inc. (the “Company”), hereby certify that by unanimous consent of the Directors of the Company,
approval was given for the Company, as Tenant, to enter into a Lease with PDM 930 Unit, LLC as Landlord, for certain premises located
in a building known as 930 Winter Street, Waltham, Massachusetts, a copy of which is attached hereto and made a part hereof.

 

I further certify that ____________________, _____________
of the Company, has authority to execute and deliver to the Landlord said Lease on behalf of the Company upon the above terms.

 

Witness the hand and seal of the Company as of ______________, 2021.

 

	 	 
	 	_________________, Secretary

 

    EXHIBIT 10.02 - 3Document

Exhibit 10.1
FORM OF ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (the “Agreement’) is made and entered into as of the 27th day of July, 2021 (the “Effective Date”) by and among GrowGeneration Michigan Corp., a Delaware corporation (“Buyer”), GrowGeneration Corp., a Colorado Corporation (“Issuer”), HGS Walled Lake LLC, a Michigan limited liability company (“Seller”), Tony Allos (“Tony”), Christopher Kiryakoza (“Christopher”), and Rocky Shaeena (“Rocky”) (each of Tony, Christopher and Rocky individually being a “Principal” and collectively, the “Principals”). 

R E C I T A L S

A.Seller is a limited liability company doing business as “HGS Hydro” and/or “Powered by HGS Hydro” including without limitation the business operated by Seller at 690 N. Pontiac Trail, Walled Lake, MI 48390 (the “Business”).

B.The Business operates a hydroponics and gardening business.

C.Subject to the terms and conditions of this Agreement, Buyer is willing to purchase, and Seller is willing to sell, certain of the assets, rights and properties of the Business. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

AGREEMENT

1.DEFINITIONS. For the purposes of this Agreement, the terms set forth below shall have the following meanings:

1.1“Acquired Contracts” means all right, title, and interest in and to all of the contracts of Sellers, other than the Excluded Contracts.  For avoidance of doubt, Acquired Contracts shall include any agreements listed on Schedule 2.2(c) with unpaid balances at Closing.

1.2“Additional Consideration” means such number of the shares of Issuer’s restricted common stock equal to $1,750,000 at a price per share that is the lower of (i) the 90-day “VWAP”  on the Effective Date or (ii) the price per share at the end of the day prior to Closing; which Additional Consideration Seller hereby agrees to assign to Principals under separate agreement.

1.3“Affiliate” means, with respect to any specified Person at any time, each Person directly or indirectly controlling, controlled by or under direct or indirect common control with such specified Person at such time.  The term “control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of 

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the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

1.4“Assets” shall be as defined in Section 2.1.

1.5“Cash” means all cash, cash equivalents (including marketable securities and short term investments), cash deposits (including any bank deposits in transit) of the Seller, determined in accordance with GAAP, less (i) any outstanding checks delivered by the Seller to any third party that have not been cashed as of the Closing Date and (ii) any customer deposits and restricted cash, including any restricted cash held in reserve pursuant to any letter of credit or held in escrow to guaranty any obligations of the Seller.  

1.6“Cash Amount” means all Cash of the Seller as of immediately prior to the Closing Date.

1.7“Closing” shall be as defined in Section 2.7.
 
1.8“Closing Shares” shall mean such number of the shares of Issuer’s restricted common stock equal to $2,509,165 at a per share that is the lower of (i) the 90-day “VWAP” on the Effective Date or (ii) the price per share at the end of the day prior to Closing.
 
1.9“Code” means the Internal Revenue Code of 1986, as amended.

1.10“Environmental Law” shall mean any federal, state or local law, statute, rule, order, directive, judgment, Permit or regulation or the common law relating to the environment, occupational health and safety, or exposure of persons or property to Materials of Environmental Concern, including any statute, regulation, administrative decision or order pertaining to: (i) the presence of or the treatment, storage, disposal, generation, transportation, handling, distribution, manufacture, processing, use, import, export, labeling, recycling, registration, investigation or remediation of Materials of Environmental Concern or documentation related to the foregoing; (ii) air, water and noise pollution; (iii) groundwater and soil contamination; (iv) the release, threatened release, or accidental release into the environment, the workplace or other areas of Materials of Environmental Concern, including emissions, discharges, injections, spills, escapes or dumping of Materials of Environmental Concern; (v) transfer of interests in or control of real property which may be contaminated; (vi) community or worker right-to-know disclosures with respect to Materials of Environmental Concern; (vii) the protection of wild life, marine life and wetlands, and endangered and threatened species; (viii) storage tanks, vessels, containers, abandoned or discarded barrels and other closed receptacles; and (ix) health and safety of employees and other persons.  As used above, the term “release” shall have the meaning set forth in CERCLA.

1.11“EIDL Lender” means The Small Business Administration, an Agency of the U.S. Government.
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1.12“EIDL Loan” means a loan pursuant to the Covid-19 Economic Injury Disaster Loan, under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).

1.13“Employee Benefit Plan” means  any “employee pension benefit plan” (as defined in Section 3(2) of ERISA), any “employee welfare benefit plan” (as defined in Section 3(1) of ERISA), and any other written or oral plan, agreement or arrangement involving direct or indirect compensation, including insurance coverage, cafeteria plan benefits, dependent care benefits, severance benefits, disability benefits, deferred compensation, bonuses, stock options, stock purchase, phantom stock, stock appreciation or other forms of incentive compensation or post-retirement compensation.

1.14 “Excluded Contract” means all the contracts of Sellers which are listed in Schedule 3.10(b).

1.15“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

1.16“ERISA Affiliate” shall mean any entity which is, or at any applicable time was, a member of (1) a controlled group of corporations (as defined in Section 414(b) of the Code), (2) a group of trades or businesses under common control (as defined in Section 414(c) of the Code), or (3) an affiliated service group (as defined under Section 414(m) of the Code or the regulations under Section 414(o) of the Code), any of which includes or included the Sellers.
 
1.17“Excluded Tax Liability” means: (i) Taxes of the Seller and its owners with respect to any taxable period; (ii) all Taxes related to or arising from the transactions contemplated under this Agreement or any other related agreement (other than the portion of Transfer Taxes for which Buyer is liable pursuant to Section 2.2.2); (iii) all Taxes that are the responsibility of Seller pursuant to Section 9.17; (iv) all Taxes asserted against the Assets or the Business for any Pre-Closing Period; and (v) all Taxes of another person with respect to the Assets or Business imposed on Seller as a transferee or successor, by contract, pursuant to any law, under Treasury Regulations 1.1502-6 or any similar provision of state, local or non-U.S. laws, or otherwise.
 
1.18“Fundamental Representation” means any representation or warranty set forth in Sections 3.1 (Organization; Authority; No Violation of Other Instruments.), 3.2 (Capitalization; Subsidiaries), 3.3 (Ownership and Delivery of Assets), 3.5 (Compliance with Laws), 3.13 (Intellectual Property), 3.17 (Environmental Matters), 3.20 (Accredited Investor), and 3.28 (Brokers and Finders).
 
1.19“Funds Flow” means that certain flow of funds dated as of the Closing Date by and between Seller, Principals, Buyer and Issuer setting forth the payments (including 
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payment for any security deposit held by a landlord under an acquired lease and other closing date prorations) to be made by Buyer or Issuer, as applicable, at Closing, in such form and substance as reasonably acceptable to the Parties and attached hereto as Exhibit J.

1.20“GAAP” shall mean generally accepted accounting principles of the United States of America consistently applied, as in effect from time to time.

1.21“Governmental Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

1.22“Indebtedness” means the principal amount, plus any related accrued and unpaid interest, fees, premiums, penalties and costs, and other amounts payable (including rental payments), with respect to: (a) all indebtedness for borrowed money (including all outstanding amounts under notes, bonds, debentures, mortgages and similar instruments), (b) owed under a credit facility, (c) evidenced by any note, debenture or other debt security, (d) obligations in respect of capitalized leases, (e) obligations to pay the deferred purchase or acquisition price of property or services, other than trade accounts payable arising, and accrued expenses incurred, in the ordinary course of business and not more than 90 days overdue, including without limitation earn out or other contingent payment liabilities of the Seller, (f) the face amount of all letters of credit issued for the account of the Seller and, without duplication, all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments for which the Seller is liable, (g) amounts payable or otherwise due to any Affiliate of the Seller, in each case, as of such date, (h) obligations in respect of any accrued interest, prepayment penalties, interest rate swap breakage costs, make-whole premiums or penalties and all costs and expenses associated with the repayment of any of the foregoing, (i) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to property acquired by the Seller (even though the rights and remedies of the Seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (j) the principal balance outstanding under any synthetic lease, off balance sheet loan or similar off balance sheet financing product or (k) all direct or indirect liability, contingent or otherwise, of the Seller with respect to any other Indebtedness of another Person if the primary purpose or intent of incurring such Indebtedness, or the primary effect thereof, is to provide assurance to the obligee of such Indebtedness that such Indebtedness will be paid or discharged.

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1.23“Intellectual Property” shall mean all intellectual property rights including without limitation: 
 
1.23.1patents, patent applications, inventions, invention disclosures and all related continuation, continuation-in-part, divisional, reissue, reexamination, utility model, certificate of invention and design patents, patent applications, registrations and applications for registrations; 
 
1.23.2trademarks, service marks, trade dress, Internet domain names, social media accounts, logos, trade names and corporate names and registrations and applications for registration thereof; 
 
1.23.3copyrights and registrations and applications for registration thereof including without limitation works of authorship, website and social media content, packaging, and any other promotional and advertising materials; 
 
1.23.4mask works and registrations and applications for registration thereof; 
 
1.23.5computer software, (including all related code), interfaces, applications, data, databases and related documentation; 
 
1.23.6trade secrets and confidential business information (such as formulations, recipes, and other confidential information), know-how, manufacturing and product processes and techniques, research and development information, financial, marketing and business data, pricing and cost information, business and marketing plans and customer and supplier lists and information; 
 
1.23.7other proprietary rights relating to any of the foregoing (including remedies against infringements thereof and rights of protection of interest therein under the laws of all jurisdictions); 
 
1.23.8all goodwill represented by and/or associated with any of the foregoing; and
 
1.23.9all copies and tangible embodiments of any of the foregoing.

1.24“Internal Systems” shall mean the internal information technology (IT) systems of the Seller that are used in the operation of the Business, including without limitation computer hardware systems and all equipment associated therewith, software applications, interfaces, databases and embedded systems.

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1.25“Liens” shall mean all liens, charges, easements, security interests, mortgages, conditional sale contracts, equities, rights of way, restrictions, title defects, objections, claims or other encumbrances.

1.26“Material Adverse Effect” shall mean an event which has a material adverse effect on the condition, financial or otherwise, of the Assets, Business, prospects or results of operations of the Business.
 
1.27“Materials of Environmental Concern” shall mean any:  pollutants, contaminants or hazardous substances (as such terms are defined under CERCLA), pesticides (as such term is defined under the Federal Insecticide, Fungicide and Rodenticide Act), fertilizers, solid wastes and hazardous wastes (as such terms are defined under the Resource Conservation and Recovery Act), chemicals, other hazardous, radioactive or toxic materials, oil, petroleum and petroleum products (and fractions thereof), or any other material (or article containing such material) listed or subject to regulation under any law, statute, rule, regulation, order, Permit, or directive due to its potential, directly or indirectly, to harm the environment or the health of humans or other living beings.
 
1.28“Most Recent Balance Sheet” shall mean the unaudited consolidated balance sheet of the Seller as of the Most Recent Balance Sheet Date.
 
1.29“Most Recent Balance Sheet Date” shall mean June 30, 2021 at the Effective Date and the last day of the month immediately preceding the Closing Date at Closing.

1.30“Obsolete Inventory” means any inventory on hand at the Closing that has not sold within the preceding twelve months from the Closing Date.

1.31“Permits” shall mean all permits, licenses, registrations, certificates, orders, approvals, franchises, variances and similar rights issued by or obtained from any Governmental Authority (including those issued or required under any Environmental Law, those relating to the purchase, possession, use or sale of any of the Assets, or the occupancy or use of owned or leased real property).

1.32“Permitted Liens” means (i) statutory Liens for Taxes reflected on the financial statements and that are not yet due and payable or are being contested in good faith and for which adequate reserves have been made with respect thereto, which are not yet due and payable; (ii) mechanics’, carriers’, workers’, repairers’ and similar liens arising or incurred in the ordinary course of business securing amounts that are not delinquent; (iii) Liens relating to Indebtedness which will be repaid at Closing in full and released; (iv) statutory Liens of landlords with respect to any premise leased pursuant to any lease arising or incurred in the ordinary course of business; and (v) easements, rights of way, zoning ordinances and other similar encumbrances affecting premises subject to each 
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lease which do not, individually or in the aggregate, prohibit, or interfere in any material respect with, the current operation of the Business.

1.33“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, any other business entity, or a governmental entity (or any department, agency, or political subdivision thereof).
 
1.34“PPP Forgivable Uses” means uses of proceeds of a PPP Loan that are eligible for forgiveness under Section 1106 of the CARES Act and otherwise in compliance with all other provisions or requirements of the CARES Act applicable in order for such PPP Loan to be eligible for forgiveness.
 
1.35“PPP Lender” means Citizens Bank.

1.36“PPP Loans” means any and all Paycheck Protection Program loans under the Small Business Administration 7(a) loan program received by the Seller in connection with the CARES Act, as supplemented by the Paycheck Protection Program and Health Care Enhancement (PPPHCE) Act.
 
1.37“PPP Loan Escrow Agreement” means the escrow agreement by and between the PPP Lender and the Seller, in the form provided by Seller to Buyer.

1.38“Pre-Closing Period” means any taxable period ending on or prior to the Closing Date, and with respect to any Straddle Period, the portion of such Straddle Period deemed to end on and include the Closing Date.

1.39“Retained Liabilities” shall mean any and all liabilities or obligations (whether known or unknown, absolute or contingent, liquidated or unliquidated, due or to become due and accrued or unaccrued, and whether claims with respect thereto are asserted before or after the Closing) of the Seller which are not Assumed Liabilities.  The Retained Liabilities shall include, without limitation, all liabilities and obligations of the Seller:

1.39.1arising out of or relating to Excluded Assets, including without limitation Excluded Contracts, whether arising prior to or after the Closing;

1.39.2arising out of or attributable to any Excluded Tax Liability;

1.39.3for Seller Transaction Expenses (other than the portion of Transfer Taxes for which Buyer is liable pursuant to Section 2.2.2 as detailed herein);

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1.39.4arising prior to the Closing under the Acquired Contracts, and all liabilities for any breach, act or omission by the Seller prior to the Closing under any Acquired Contract;

1.39.5arising out of events, conduct or conditions existing or occurring prior to the Closing that constitute a violation of or non-compliance with any law, rule or regulation, any judgment, decree or order of any Governmental Authority, or any Permit or that give rise to liabilities or obligations with respect to materials of environmental concern;

1.39.6for any claims for wages or other benefits, bonuses, accrued vacation, workers’ compensation, deferred compensation, severance, retention, termination or other payments to any present or former employees, officers, directors, managers, retirees, independent contractors or consultants of Seller, including any liabilities of any Seller for employer FICA and unemployment taxes incurred and any liabilities for federal or state income tax and FICA taxes of employees of Seller which the Seller is legally obligated to withhold, and all liabilities resulting from the termination of employment of employees of the Seller prior to the Closing that arose under any federal or state law or under any Seller Plan established or maintained by the Seller;

1.39.7for payment of all bonuses for employees as of the Closing, where such Retained Liability shall consist of (i) the pro-rata portion of any annual bonuses due to non-Principal employees during 2021 (equal to the number of days that have transpired in 2021 from January 1 to the date of Closing, divided by 365, with such amount multiplied by the gross amount of annual bonuses due to such employees for fiscal 2021), and (ii) the total amount of any annual bonuses due to the Principals for fiscal year 2021, all as set forth on Schedule 1.39.7;

1.39.8with respect to any insurance policies, to indemnify any person or entity by reason of the fact that such person or entity was a director, officer, employee, or agent of the Sellers or was serving at the request of the Sellers as a partner, trustee, director, officer, employee, or agent of another entity (whether such indemnification is for judgments, damages, penalties, fines, costs, amounts paid in settlement, losses, expenses, or otherwise and whether such indemnification is pursuant to any statute, charter document, bylaw, agreement, or otherwise);
 
1.39.9for injury to or death of persons or damage to or destruction of property occurring prior to the Closing (including any workers compensation claim); 
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1.39.10for any guarantees (personal or otherwise), whether arising out of an Acquired Contract or otherwise; and

1.39.11for all Indebtedness of Seller, including without limitation all PPP Loans and EIDL Loans.

1.40“Seller’s knowledge” or any other similar knowledge qualification (whether of Seller or the Principals), means the actual knowledge of any of the Principals or managers of Seller after commercially reasonable inquiry of appropriate agents and of those employees of Seller who, by virtue of such employees’ job functions and duties, have or should have knowledge of the matter subject to such inquiry.

1.41“Seller Plan” shall mean any Employee Benefit Plan maintained, or contributed to, by the Seller, any Subsidiary or any ERISA Affiliate.
 
1.42“Seller Transaction Expenses” means (i) all of the fees, costs and expenses incurred by Seller, its members or managers or Principals in connection with, in anticipation of or incident to the negotiation, execution, and delivery of this Agreement or any agreements related hereto, or the transactions contemplated hereby or thereby, or in connection with or in anticipation of any alternative transactions with respect to the Seller, including all fees, costs and expenses payable to attorneys, financial advisors, accountants, consultants or other advisors and all obligations under any engagement letter or other agreement or understanding with any investment bank or broker, (ii) all payments by Seller or Principals to obtain any third party consent required under any Acquired Contract in connection with the consummation of the transactions contemplated by this Agreement, (iii) all obligations that arise in whole or in part as a result of the consummation of the transactions contemplated by this Agreement under any Acquired Contract, Excluded Contract or Seller Plan, including all change of control, severance, retention, stock appreciation, phantom stock or similar obligations or any other accelerations of or increases in rights or benefits, and all employer side payroll Taxes and mandatory matching obligations that are payable or incurred by Seller in connection with or as a result of the satisfaction of such obligations, and (iv) 50% of any Transfer Taxes that are the responsibility of the Seller pursuant to Section 2.2.2.
 
1.43“Shares” means, collectively, the Closing Shares and the Additional Consideration.

1.44“Slow-Moving Inventory” means inventory on hand with respect to any product that (i) is in excess of the average number of units of such product sold during the 12 months prior to the Closing, or (ii) is not used or sold at any of Buyer’s current locations.  For avoidance of doubt, Slow-Moving Inventory shall not include any product that has not been on hand for at least twelve months.

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1.45“Straddle Period” means any taxable period beginning on or before and ending after the Closing Date.
 
1.46“Target Working Capital Amount” shall be determined by the Parties following the pre-closing physical inventory described in Section 1.50 below.

1.47“Tax” means any (i) federal, state, local or foreign income, gross receipts, franchise, estimated, alternative minimum, add-on minimum, sales, use, transfer, real property gains, registration, value added, excise, escheat, unclaimed property, tax on “global intangible low-taxed income (as defined in Section 951A of the Code), natural resources, severance, stamp, occupation, premium, windfall profit, environmental, customs, duties, real property, personal property, shares, social security, unemployment, disability, payroll, license, employee or other withholding, or other tax, of any kind whatsoever and any fee, custom, impost, assessment, obligation, levy, tariff, charge or duty in the nature of a tax, including any interest, penalties or additions to tax or additional amounts in respect thereto, whether disputed or not, and (ii) any liability in respect of any items described in clause (i) immediately foregoing by reason of (A) being a transferee or successor or by having been a member of a combined, affiliated, unitary, consolidated or similar group or otherwise by operation of Law or (B) by contract or otherwise, in each case, under clauses (i) or (ii) immediately foregoing regardless of whether affirmatively asserted by a Governmental Authority.

1.48“Tax Return” means any form, return, declaration, report, claim for refund, information return certificate, bill, document, declaration of estimated Taxes, schedule or other information (including any schedule, appendix or attachment thereto) and any amendment thereof, required or permitted to be filed in connection with the imposition, determination, assessment or collection of any Tax or the administration, implementation or enforcement of or compliance with any Laws relating to any Tax.
 
1.49“Transfer Taxes” means, collectively, all transfer, documentary, sales, use, stamp, registration, conveyance, value added or other similar Taxes or charges (together with any related fee, penalties, interest and additions to such Taxes) arising out of or incurred in connection with, or associated with, this Agreement or the transactions contemplated by this Agreement.
 
1.50“Working Capital” means as of immediately prior to the Closing Date (a) the current assets (excluding any Cash Amount, any Tax assets, and any Excluded Assets) of the Seller, minus (b) the current liabilities (excluding Seller Transaction Expenses, Tax liabilities, Indebtedness, any intercompany payables and any Retained Liabilities) of the Seller.  The calculation of Working Capital shall be prepared in accordance with GAAP.  For illustrative purposes, an example calculation of Working Capital is set forth on Exhibit H (the “Working Capital Example”). The parties shall cause a physical 
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inventory to be taken, and completed not more than one day before Closing, by individuals designated by Buyer (the “Inventory Team”).
 
1.51“Working Capital Deficit” means the amount by which the Working Capital is less than the Target Working Capital Amount.
 
1.52“Working Capital Surplus” means the amount by which the Working Capital is greater than the Target Working Capital Amount.

2.SALE AND PURCHASE OF ASSETS

2.1    Sale of Assets. On the terms and subject to the conditions of this Agreement and for the consideration set forth herein, Seller shall at the Closing, sell, convey, assign, transfer and deliver to Buyer, and Buyer shall purchase and acquire from Seller, all of the assets, rights and properties of any kind owned by the Seller, including without limitation those used in the Business, other than Excluded Assets (as defined below) (collectively, the “Assets”), in each case, free and clear of any and all Liens, other than Permitted Liens, including the Assets detailed below:

2.1.1Inventories. Subject to the immediately following sentence and except for Obsolete Inventory, all inventories of, finished goods, inventory for resale, supplies and repair materials of Seller (taken as a whole), as of the Closing Date (the “Inventory”) it being expressly agreed that all Obsolete Inventory will not be included in the Assets and will constitute Excluded Assets.  In addition, Assets shall include Seller’s Slow-Moving Inventory, provided that, for purposes of calculating the Asset Purchase Price, any Slow-Moving Inventory included in the Assets will be valued at sixty percent (60%) of the applicable Seller’s actual cost. A summary of such Slow-Moving Inventory on hand as of July 16, 2021 is attached hereto as Schedule 2.1.1. For clarity, it is expressly agreed by the Parties that Seller has the right to keep all Obsolete Inventory, all of which shall constitute Excluded Assets.  

2.1.2Fixed Assets and Tangible Personal Property. All fixed assets and tangible personal property of the Business (other than the Excluded Assets enumerated in Section 2.5) as it relates to this transaction, including all equipment, supplies, furniture, fixtures, hardware. A list of such fixed assets and tangible personal property is attached hereto as Schedule 2.1.2.

2.1.3Intangible Personal Property. All intangible property of the Seller as of the Closing (collectively, “Intangible Assets”) including without limitation, goodwill, software including all object and source code, data and databases, confidential and proprietary information including without limitation customer lists, customer files, customer records, vendor lists, files and records, trade and other association 
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memberships, if any and to the extent transferable. A detailed list of such assets is attached hereto as Schedule 2.1.3.

2.1.4Contracts. All rights in and to all Acquired Contracts. 
 
2.1.5Intellectual Property. Any and all Intellectual Property (i) owned or purported to be owned by Seller or that is licensed by Seller pursuant to any Acquired Contract; and (ii) owned by any of the Principals, if any, that is held for use in or used in the Business (the “Acquired IP”).  The Acquired IP shall include, without limitation, the Intellectual Property identified in Schedule 3.13 and any Acquired IP that is identified in Schedule 2.1.3.  In the event of any such Intellectual Property owned by Principals, Principals shall, for the consideration set forth herein, at the Closing, sell, convey, assign, transfer and deliver to Buyer, and Buyer shall purchase and acquire from Principals, all such Intellectual Property related to the Business and held in the name of the Principals.

2.2    Asset Purchase Price. Subject to the terms and conditions of this Agreement, and in full consideration for the transfer of such Assets at Closing, the aggregate purchase price (the “Purchase Price”) shall be: (a) the actual cost of Seller’s inventory minus Obsolete Inventory and including Slow-Moving Inventory to the extent determined according to Section 2.1.1, which is estimated to be $6,373,794; plus (b) the sum of $219,910 for Seller’s fixed assets; plus (c) the amounts shown on Schedule 2.2(c) (which shall be updated to reflect actual outstanding out-of-pocket costs of Seller at Closing); plus (d) $8,782,079 in cash; ((a), (b), (c) and (d) together, the “Cash Purchase Price”); plus (e) the Closing Shares; plus (f) the Additional Consideration. The Purchase Price shall also be subject to any and all adjustments, if any, pursuant to Article 8.

2.2.1 Subject to the terms and conditions set forth herein, at the Closing:

    (a)    Buyer shall pay to the applicable obligees thereof, on behalf of the Seller and for Seller’s account, as a deduction from the Cash Purchase Price, the aggregate amount of Indebtedness outstanding as of the Closing and Seller Transaction Expenses, in each case as set forth on the Estimated Closing Statement;

    (b)    Buyer shall deduct from the Cash Purchase Price and deposit with an escrow agent designated by Buyer (the “Escrow Agent”), an amount equal to $250,920 (the “Adjustment Escrow Amount”), and such funds plus all income accrued thereon (the “Adjustment Escrow Fund”) shall be maintained by Escrow Agent to secure Seller’s obligations under Section 2.3 of this Agreement and shall be administered and payable in accordance with an escrow agreement by and among the Seller, Buyer and Escrow Agent in a form satisfactory to Buyer (the “Escrow Agreement”);

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    (c)    Buyer shall deduct from the Cash Purchase Price the amount required by the PPP Lender and deposit the same in accordance with the PPP Loan Escrow Agreement; and 

    (d)    Buyer shall pay to Seller the Estimated Closing Amount (as defined in Section 2.3.1 below).

2.2.2 Transfer Taxes. Buyer and Seller shall each pay 50% of any Transfer Taxes that may become payable in connection with the sale of the Assets to Buyer. Buyer shall timely file or cause to be timely filed all necessary tax returns with respect to Transfer Taxes, and the Seller will cooperate in filing such tax returns and reducing or eliminating such Transfer Taxes. The Seller shall pay 50% of the amount due with respect to such Tax Return to the Buyer no less than three (3) business days prior to the due date for filing thereof. Buyer and Seller will each use commercially reasonable efforts to avail itself of any available exemptions from any such Transfer Taxes.

2.2.3  Bulk Transfer Laws. The Seller shall indemnify and hold harmless the Buyer against any and all liabilities which may be asserted by any third parties against the Buyer as a result of noncompliance with any applicable bulk transfer statutes should any exist.

2.3    Purchase Price Adjustment. 
2.3.1. Estimated Closing Amount. At least three (3) business days before the Closing Date, the Seller shall prepare and deliver to Buyer a schedule (the “Estimated Closing Statement”) setting forth Seller’s good faith estimate of Working Capital, Indebtedness and Seller Transaction Expenses as of 12:01 a.m. on the Closing Date, in each case calculated in accordance with GAAP.  The “Estimated Closing Amount” shall be (a) Cash Purchase Price, minus (b) the Seller’s good faith estimate of the outstanding amount of all Indebtedness as of immediately prior to the Closing, minus (c) the Seller’s good faith estimate of the Seller Transaction Expenses, minus (d) the Seller’s good faith estimate of the amount by which Working Capital is less than the Target Working Capital Amount, if any, plus (e) the Seller’s good faith estimate of the amount by which Working Capital is greater than the Target Working Capital Amount, if any minus (f) the Adjustment Escrow Amount, minus (g) any amounts shown on Schedule 1.39.7 that are accrued but not yet paid by Seller. The Seller and the Principals shall provide the Buyer and its representatives with reasonable access to the books and records of the Seller and shall cause the personnel of the Seller to reasonably cooperate with the Buyer and its representatives, the foregoing being for the purpose of, and to the extent necessary for, enabling the Buyer to review the Seller’s determination of all amounts and estimates in the Estimated Closing Statement and each component thereof.  In the event Buyer disagrees with the Estimated Closing Amount, the Buyer shall (a) promptly notify the Seller in writing of such disagreement, setting forth the basis of such disagreement and (b) specify in reasonable detail the nature of its objections to the Sellers’ estimates.  The 
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Sellers and the Buyer in good faith shall seek to resolve in writing any objections set forth in the Buyer’s notice of disagreement prior to the Closing, and the Sellers shall make such revisions to the disputed items as may be mutually agreed between the Sellers and the Buyer; provided that if and to the extent that the Buyer and the Sellers have not resolved all such differences by the close of business on the Business Day prior to the anticipated Closing Date, the parties shall proceed to close based upon the Estimated Closing Statement as prepared by the Sellers (with such modifications as may have been mutually agreed between the Sellers and Buyer prior to the Closing Date) or as otherwise agreed to by the parties before the Closing Date. 
2.3.2 Final Closing Statement. 
    (a)    On or before the date that is ninety (90) days following the Closing Date, Buyer or its representatives shall prepare a schedule setting forth its determination of Working Capital, Indebtedness and Seller Transaction Expenses (the “Final Closing Statement”) and shall deliver the Final Closing Statement to the Seller.  Working Capital shall be determined disregarding any effects on the assets and liabilities of the Seller of (i) purchase accounting adjustments arising from or resulting as a consequence of the consummation of the transactions contemplated hereby or (ii) any cash, cash equivalents, or stock contributed to Seller by Buyer or any of its Affiliates on the Closing Date.
    (b)    Prior to the date which is thirty (30) days after Buyer’s delivery of the Final Closing Statement (the “Protest Date”), the Seller may deliver written notice to Buyer (the “Protest Notice”) setting forth any objections which the Seller may have to the Final Closing Statement.  The Protest Notice shall specify in reasonable detail any contested amounts and the basis therefor and shall include a schedule setting forth the Seller’s determination of Working Capital, Indebtedness and Seller Transaction Expenses.  If a Protest Notice is not delivered prior to the Protest Date, the Working Capital, Indebtedness and Seller Transaction Expenses as set forth on the Final Closing Statement shall be final, binding and non-appealable by the Sellers.  If a Protest Notice is delivered prior to the Protest Date, any amounts not disputed therein shall be final, binding and non-appealable by the Seller.  Upon receipt of the Final Closing Statement, the Seller and its accountants will be given reasonable access upon reasonable notice to the relevant books, records, workpapers and personnel during regular business hours for the purpose of verifying Working Capital, Indebtedness and Seller Transaction Expenses. The parties will thereafter negotiate any objections in the Protest Notice in good faith.
(c)    The “Final Closing Amount” shall be equal to (i) the Cash Purchase Price, minus (ii) the amount of Indebtedness as finally determined pursuant to this Section 2.3, minus (iii) the amount of Seller Transaction Expenses as finally determined pursuant to this Section 2.3.2, plus (iv) the amount, if any, by which the Working Capital as finally determined pursuant to this Section 2.3.2 (the “Final Working Capital”) is greater than the Target Working Capital Amount, minus (v) the amount, if any, by which the Final Working Capital is less than the Target Working Capital Amount, plus (vi) 
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Buyer’s Hawthorne Adjustment.  Within ten (10) days after the determination of the Final Closing Amount:
    (x)    If the Final Closing Amount is less than the Estimated Closing Amount, then such difference shall be disbursed from the Adjustment Escrow Fund to Buyer; provided, however, that if the amount of the funds in the Adjustment Escrow Fund is less than the amount payable to Buyer under this Section 2.3.2(c)(x), in addition to the payment of the entire Adjustment Escrow Fund to Buyer, Seller and Principals shall be jointly and severally obligated to pay to Buyer an amount equal to the balance of such difference not satisfied from the Adjustment Escrow Fund; or
    (y)    If the Final Closing Amount is greater than the Estimated Closing Amount, Buyer shall pay to Seller an amount equal to such difference.
(d)    Buyer agrees to work with and assist Seller to obtain rebates from Hawthorne Gardening Company (“Hawthorne”) for hitting purchasing targets during the period from October 1, 2020 through September 30, 2021 (the “Hawthorne Rebate”). In the event that Hawthorne fails to deliver all or a portion of the Hawthorne Rebate to Seller on or before December 31, 2021, Buyer agrees to deliver payment to Seller in an amount equal to fifty percent (50%) of the unpaid portion of the Hawthorn Rebate, which shall in no event, however, exceed an agreed cap (aggregated to include the rebates for all of Seller’s Affiliates to be purchased by Buyer on the Closing Date) of $300,000 (“Buyer’s Hawthorne Adjustment”). Such payment, if any, shall be paid at the same time as delivery of the Final Closing Amount. Upon delivery of Buyer’s Hawthorne Adjustment to Seller, Buyer shall thereupon be entitled to reimbursement of fifty percent (50%) of all or any portion of the Hawthorn Rebate thereafter received by Seller or its Affiliates from Hawthorne.
    Within ten (10) days after the determination of the Final Closing Amount, Buyer and the Seller shall deliver a joint written instruction to the Escrow Agent instructing it to distribute all of the funds in the Adjustment Escrow Fund as follows: (A) to Buyer, the amount, if any, payable to Buyer under Section 2.3.2(d)(x), and (B) to Seller, the amount, if any, equal to all of the funds in the Adjustment Escrow Fund minus the amount, if any, payable to Buyer under Section 2.3.2(c)(x).
2.4    Intentionally Omitted. 
2.5    Excluded Assets. Notwithstanding any term herein to the contrary, Seller is not selling, assigning, transferring, or delivering to Buyer, and Buyer is not purchasing, accepting, or acquiring from Seller, any assets specifically set forth below (the “Excluded Assets”):
a)all Cash of Seller, certificates of deposits, cash equivalents and bank accounts of the Sellers;
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b)any and all rebates, refunds, awards, credit, or amounts due to Seller for business it conducted prior to the date of Closing;
c)any and all assets that may not be transferred to Buyer under applicable law; 
d)any and all Excluded Contracts;
e)any and all Seller Plans; 
f)any non-transferrable Permits; 
g)Tax refunds to Seller attributable to Taxes paid by Seller in a Pre-Closing Period;
h)all Excluded Assets listed on Schedule 2.5.
2.6    Liabilities. Upon and subject to the terms and conditions of this Agreement, from and after the Closing the Buyer shall assume and become responsible solely for the obligations and liabilities under each Acquired Contract occurring from and after the Closing, to the extent that such obligations and liabilities do not arise from any breach, default or violation of such Acquired Contract by the Seller prior to the Closing (“Assumed Liabilities”).  All other obligations and liabilities shall remain with and be the obligations and liabilities of the Seller.  Notwithstanding the terms of this Section 2.6 or any other provision of this Agreement to the contrary, the Buyer shall not assume or become responsible for, and the Seller shall remain liable for the Retained Liabilities.
2.7    Closing.
    2.7.1    Closing Date. Subject to the satisfaction or waiver of the conditions to Closing set forth in Section 5 (other than those to be satisfied at the Closing, but subject to their satisfaction or waiver at the Closing), the closing of the purchase and sale of the Assets (the “Closing”) shall be effected by exchanging true, complete and accurate copies of executed originals via electronic mail at 10:00 a.m. EST on the third Business Day following the satisfaction or waiver by the Party entitled to the benefit thereof of the conditions to Closing set forth in Error! Reference source not found. (other than those to be satisfied at the Closing, but subject to their satisfaction or waiver at the Closing), unless the Parties agree to effect the Closing at any other place, time or date.  The date on which the Closing occurs is referred to herein as the “Closing Date” and the effective time at which the Closing occurs shall be 12:01 a.m. EST on the Closing Date.

2.7.2    Seller’s Deliveries at Closing. At the Closing, Seller will deliver or cause to be delivered to Buyer:

(a)A Bill of Sale in the form attached as Exhibit A-1 and Assignment and Assumption Agreement in the form attached as Exhibit A-2;
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(b)A Manager Certificate in the form attached as Exhibit B duly executed by a duly authorized Manager of the Company, dated as of the Closing Date, certifying to the (i) organizational documents of the Seller (including the current limited liability company agreement and all amendments thereto), (ii) a certificate of good standing of the Seller issued by the Secretary of State of its organization within ten (10) days prior to the Closing Date, including a certified certificate of incorporation or comparable organizational document of Seller, (iii) the resolutions adopted by all of the manager(s) and members of the Seller authorizing Seller’s execution of this Agreement and the transactions contemplated hereby, and (iv) the incumbency of the manager of Seller executing this Agreement and the other transaction documents contemplated hereby by or on behalf of the Seller; 

(c)Non-Disclosure and Non-Compete Agreements executed by Seller, Principals, and any non-Principal owners of Seller, in the form attached as Exhibit C;

(d)An Assignment of Intangible Assets and Intellectual Property Agreement executed by Seller in the form attached as Exhibit D (the “IP Assignment”); 
 
(e)A countersigned copy of the employment agreements between Buyer and each of the Principals, respectively, in the forms attached hereto as Exhibit E-1, E-2, and E-3 (collectively, the “Employment Agreements”); 

(f)a Form W-9 duly executed by Seller;
 
(g)a clearance certificate or similar document(s) with respect to the relevant state and local tax jurisdictions in which the Seller is conducting the Business or holding any Assets;
 
(h)an executed payoff letter in a form as is acceptable to the Buyer in its reasonable discretion for all Indebtedness (other than Assumed Indebtedness and for the PPP Loan, but including the EIDL Loan), which include a per diem interest amount and an authorization (upon payment of such Indebtedness) to file all UCC termination statements and releases necessary to evidence satisfaction and termination of such Indebtedness and to enable the release of any Liens relating thereto, along with wire transfer instructions for each holder of such Indebtedness; 
 
(i)a counterpart to the Funds Flow executed by Seller and Principals;
 
(j)Intentionally omitted; 
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(k)Intentionally omitted;
 
(l)An executed Escrow Agreement executed by Seller and Escrow Agent;
 
(m)A final copy of the Working Capital Example;
 
(n)Executed copies of all consents, approvals, orders or authorizations of, or registrations, declarations or filings with, or notices to, any Governmental Authority or other Person listed in Schedule 3.10(c), including without limitation the consent of the landlord under any Lease, which consent shall be obtained at Seller’s sole cost and expense;
 
(o)The Estimated Closing Statement; 
 
(p)A copy of the fully executed PPP Loan Escrow Agreement by Seller and PPP Lender, and evidence reasonably satisfactory to Buyer that the escrow account for the PPP Loan is fully funded as required under SBA guidance and the PPP Lender has consented to the transactions contemplated by this Agreement;

(q)a non-foreign affidavit dated as of the Closing Date from the Seller, sworn under penalty of perjury and in form and substance required under the Treasury Regulations issued pursuant to Section 1445 of the Code stating that the Seller is not a “foreign person” as defined in Section 1445 of the Code (a “FIRPTA Certificate”); 

(r)The Financial Statements, to the extent not already provided; and

(s)Such other documents and instruments as may be reasonably requested to effect the transactions contemplated hereby.

                    Simultaneously with such deliveries, Seller shall use commercially reasonable efforts to take such steps as are necessary to put Buyer in actual possession and control of the Assets at Closing.

2.7.3    Buyer’s Deliveries at Closing. At the Closing, Buyer shall deliver or cause to be delivered to or for the benefit of Seller the following instruments:
    
(a) A wire transfer to be delivered to Seller in the total amount of the Estimated Closing Amount;

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(b)Resolutions from the Buyer and Issuer authorizing consummation of the transactions contemplated by the Agreement in the form attached as Exhibit G-1 and G-2, respectively;

(c)evidence of book-entry delivery of the Closing Shares and Additional Consideration; 

(d)A counterpart signature to each of the Employment Agreements executed by Buyer; 
 
(e)A counterpart signature to the IP Assignment executed by Buyer;
 
(f)A counterpart signature to the Funds Flow executed by Buyer;

(g)An executed Escrow Agreement executed by Buyer; and
 
(h)Such other documents and instruments as may be reasonably requested to effect the transactions contemplated hereby.

3.REPRESENTATIONS AND WARRANTIES OF SELLER AND PRINCIPALS

Subject to the disclosures set forth in the Disclosure Schedules attached hereto, Seller and Principals, jointly and severally, represent and warrant to Buyer and Issuer that the statements contained in this Article 3 are true and correct as of the Effective Date and will be true and correct as of the Closing Date, in each case except to the extent any such representations and warranties are specifically made as of a particular date (in which case such representations and warranties need only be true and correct as of such date):

3.1Organization; Authority; No Violation of Other Instruments. 
 
3.1.1Seller is a limited liability company doing business as “HGS Hydro” and “Powered by HGS Hydro.” Seller is duly organized, validly existing and in good standing under the laws of the state of its formation, and has full power and authority to own, operate or lease the Assets of the Business. The Seller is duly qualified to conduct business under the laws of each jurisdiction in which the nature of the Business or the ownership of the Assets or ownership or leasing of its properties requires such qualification.
 
3.1.2The execution and delivery of this Agreement and the performance hereunder by Seller have been duly authorized by all necessary actions on the part of Seller and, assuming execution of this Agreement by Buyer and Issuer, this Agreement will constitute a legal, valid and binding obligation of Seller and Principals, duly enforceable against Seller and Principals, except as such 
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enforcement may be limited by the application of bankruptcy, insolvency, reorganization, moratorium, or other laws affecting creditors’ rights generally and as such enforcement may be limited by the availability of specific performance and the application of equitable principles, regardless of whether enforcement is sought in a proceeding at law or in equity.

3.2Capitalization; Subsidiaries. All capital and voting interests in the Seller are owned by the Members as shown on Schedule 3.2. The Seller has no subsidiaries or parents. 

3.3Ownership and Delivery of Assets. Seller is the true and lawful owner of the Assets and has all necessary power and authority to transfer the Assets to Buyer free and clear of all liens and encumbrances other than Permitted Liens. No other person will have on the Closing Date, any direct or indirect interest in any of the Assets. Upon delivery to Buyer of the Bill of Sale attached as Exhibit A-1, and other instruments of conveyance with respect to the Assets as indicated in Section 2.7.2, Buyer will acquire good and valid title to the Assets free and clear of all Liens other than Permitted Liens. The Assets are sufficient for the conduct of the Seller’s Business as presently conducted and together with the Excluded Assets comprise all of the assets and material rights of Seller currently used in the Business. Each tangible Asset is free from material defects, has been maintained, in all material respects, in ordinary course of Seller’s business, and is in good operating condition and repair (subject to normal wear and tear and routine maintenance) and is suitable for the purposes for which it presently is used.  Except as detailed on Schedule 3.3, the Seller does not own nor has it ever owned any real property or any interest in real property.
 
3.4Indebtedness.  All of the Indebtedness of Seller as of the Effective Date is set forth in Schedule 3.4(a).  Except as set forth on Schedule 3.4(b) (the “Assumed Indebtedness”), any and all Indebtedness as of the Closing Date, including Indebtedness in respect of which Liens encumber the Assets, shall be paid off in full or otherwise fully satisfied, before or at the Closing.

3.5Compliance with Law; No Conflicts. The Seller holds and has at all times since inception of the Business held, all licenses, Permits and authorizations necessary for the lawful conduct of the Business pursuant to all applicable statutes, laws, ordinances, rules and regulations of all governmental bodies, agencies and subdivisions having, asserting or claiming jurisdiction over the Business or over any part of the Business’ operations, and to Seller’s knowledge, the Business is  not in violation thereof. The Seller has not received written notice of violation of any decree, judgment, order, law or regulation of any court or other governmental body. Schedule 3.5 lists all Permits of the Seller, each of which is current and in good standing. The execution, delivery and performance of this Agreement and its Exhibits, the consummation of the transactions contemplated hereby and thereby and the fulfillment of the terms hereof and thereof will not: (a) conflict with, or result in a breach or violation of the Seller organizational documents or operating agreement; (b) conflict with, or result in a material default (or would constitute a default but for a requirement of notice or lapse of time or both) under any document, 
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agreement or other instrument to which Seller is a party or result in the creation or imposition of any Lien, charge or encumbrance on any of Seller’s properties pursuant to (i) any law or regulation to which the  Seller  or any of its  property or assets are subject, or (ii) any judgment, order or decree to which Seller  is bound or any of its property or assets are subject; or (c) violate any law, order, judgment, rule, regulation, decree or ordinance to which Seller is  subject, or by which Seller is bound.

3.6Investments in Others. Neither the Seller nor the Principals (nor any of their respective affiliates) operates any part of the Business through any other person or entity. As of the Closing Date, the Seller and its respective Affiliates (including without limitation, Principals) do not own or operate any Competitive Business (as defined below).  For purposes of this Agreement, “Competitive Business” means a business that consists of the sale of hydroponic equipment and supplies for any market, including without limitation retail, wholesale, e-commerce and commercial sales, or any business that otherwise competes, directly or indirectly, with the Seller’s Business.

3.7Financial Statements; Inventory; PPP Loans; EIDL Loans. 

3.7.1Schedule 3.7.1 attaches or will attach audited consolidated financial statements of the Seller for each of 2019 and 2020 (the “Audited Financial Statements” to be attached at Closing), the Most Recent Balance Sheet (for the Effective Date and the Closing Date), and the unaudited consolidated financial statements of the Seller for the first quarter of 2021 (on the Effective Date), and for any additional completed quarter of 2021 at the time of Closing (the “Interim Financial Statements” and together with the Audited Financial Statements and the Most Recent Balance Sheets, the “Financial Statements”).  For the avoidance of doubt, Schedule 3.7.1 will be updated to attach Financial Statements received after the Effective Date.   The books and records of the Seller accurately reflect, in all material respects, the assets, liabilities, business, financial condition and results of operations of the Seller.  The Financial Statements are consistent with the books and records of the Sellers, and accurately present the financial condition of the Seller as of the respective dates they were prepared and the results of the operations of the Seller for the periods indicated. 
 
3.7.2Other than Obsolete Inventory or Slow-Moving Inventory, all Inventory of the Sellers, whether or not reflected on the Most Recent Balance Sheet, consists of a quality and quantity usable and saleable in the ordinary course of Seller’s business, except for obsolete items and items of below-standard quality which have been written-off or written-down to net realizable value on the Financial Statements.
 
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3.7.3Schedule 3.7.3 sets forth a complete and correct list of all outstanding PPP Loans and EIDL Loans for the Seller, as well as the outstanding balance thereof, as of the most recent date for which balances were available, and the status of any requests for forgiveness of such PPP Loans.  The Seller has provided to the Buyer true, complete and correct copies of the Buyer’s application for the PPP Loans and EIDL Loans, and all information submitted to the PPP Lender and EIDL Lender in support thereof.  To its Knowledge in good faith, Seller meets the eligibility requirements for application and receipt of the PPP Loan and EIDL Loan and is otherwise in compliance in all material respects with the CARES Act with respect to the same.  Seller has used 100% of the proceeds of such PPP Loan solely for PPP Forgivable Uses, and has used the EIDL Loan solely for permitted purposes under the Covid-19 Economic Injury Disaster Loan terms pursuant to the CARES Act.
3.7.4The Seller has completed an application for the forgiveness of the PPP Loan reflecting that the Seller has used 100% of the proceeds of the PPP Loan for PPP Forgivable Uses, which application has been submitted, together with any and all required supporting documentation (collectively, with such application, a “Forgiveness Application”), to the PPP Lender and the PPP Lender has not rejected and has accepted the Forgiveness Application.  Without limiting the foregoing, except for the consent of the PPP Lender, no other consent is required to be obtained from the PPP Lender and the Small Business Administration with respect to the PPP Loan in connection with the consummation of the transactions contemplated hereunder, and no default, event of default or similar condition that gives the PPP Lender or the Small Business Administration the right to accelerate the PPP Loan or reject the eligibility of all or a portion of the PPP Loan for forgiveness.  The Seller is responsible for making its own independent judgment with respect to the PPP Loan and the process leading thereto and all considerations thereafter, including with respect to any application for forgiveness of the PPP Loan, and has not relied on Buyer or any of its respective Affiliates with respect to the PPP Loan and the process leading thereto and all considerations thereafter, including with respect to any application for forgiveness of the PPP Loan, and acknowledges and agrees that the Buyer and its Affiliates have not rendered services, or provided any advice, of any nature in connection with the PPP Loan, the CARES Act or the process leading thereto, any application for forgiveness or otherwise (and will not make any claim that any Buyer or any Affiliates thereof have rendered any such services or provided such advice).
 
3.7.5Without limiting the foregoing, except for the consent of the EIDL Lender, no other consent is required to be obtained from the EIDL Lender and the Small Business Administration with respect to the EIDL Loan in connection with the consummation of the transactions contemplated hereunder, and no default, 
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event of default or similar condition that gives the EIDL Lender or the Small Business Administration the right to accelerate the EIDL Loan.  The Seller is responsible for making its own independent judgment with respect to the EIDL Loan and the process leading thereto and all considerations thereafter, and has not relied on Buyer or any of its respective Affiliates with respect to the EIDL Loan and the process leading thereto and all considerations thereafter, and acknowledges and agrees that the Buyer and its Affiliates have not rendered services, or provided any advice, of any nature in connection with the EIDL Loan, the CARES Act or the process leading thereto (and will not make any claim that any Buyer or any Affiliates thereof have rendered any such services or provided such advice).

3.8Absence of Undisclosed Liabilities. The Business does not have any Indebtedness or liabilities (fixed or contingent, known or unknown, accrued or unaccrued) other than those enumerated in the Financial Statements. 

3.9Taxes. Seller is a limited liability company which is classified for U.S. federal, State and local income tax purposes as a partnership. Seller has prepared and timely filed all Tax Returns required to be filed by it with respect to the Business and Assets, each such Tax Return has been prepared in compliance with all applicable laws and regulations, and all such Tax Returns are true, complete and accurate. All Taxes with respect to the Assets or Business due and payable by the Seller or its owners (whether or not shown or required to be shown on any Tax Return) have been timely paid, with or without permitted extensions of time to file any Tax Return. The Seller has or will have withheld and timely paid to the appropriate Governmental Authority all Taxes required to have been withheld and paid by it in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party, and all Forms W-2 and 1099 required with respect thereto have been properly completed and timely filed. Schedule 3.9 attached hereto sets forth each jurisdiction in which Seller or its owners has filed, or will file for the current period, Tax Returns that relate to the Assets or the Business.  There is no proceeding pending or, to Seller’s knowledge, threatened with respect to any Taxes for which the Seller or its owners have or may have any liability. The Seller (or its Members and/or Managers on behalf of Seller) have not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency. There are no Liens for Taxes on any of the Assets. The Seller (i) is not a party to any Tax sharing, Tax allocation, Tax indemnity or similar contract other than any such contract entered into in the ordinary course of business the primary purpose of which is not related to Taxes, (ii) has never been a member of an affiliated, consolidated, combined, or unitary group and (iii) has no liability for the Taxes of any other Person. In accordance with and to the extent required by applicable law, the Seller has properly (x) collected and remitted all sales and similar Taxes with respect to sales made to its customers and (y) for all sales that are exempt from sales and similar Taxes and that were made without charging or remitting sales or similar Taxes, obtained, filed or delivered, as the case may be, valid sales and other transfer tax exemption certificates for all transactions in which the Seller or any customer of the Seller has relied on such certificates for exemption from sales or similar 
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transfer taxes; and each such exemption certificate was correct and complete in all material respects at the time of the applicable sale or other transfer.  The Seller (or its Members and/or Managers behalf of Seller) are not currently the beneficiary of any extension of time within which to file any Tax Return. There have never been any claims by any Governmental Authority in a jurisdiction where the Seller or its owners do not file Tax Returns that any of them is or may be subject to taxation by that jurisdiction. Seller or its owners are not a “foreign person” within the meaning of Section 1445 of the Code. The Seller or its owners are not subject to any private ruling of the Internal Revenue Service or comparable ruling of another Governmental Authority. The Assets do not include any stock or other equity interests in any Person. No power of attorney that is currently in effect has been granted by the Seller that will remain in effect after the Closing (other than powers of attorney granted to a payroll provider).  None of the Assets is tax-exempt use property within the meaning of Section 168(h) of the Code.  None of the Assets is (i) required to be treated as owned by another person pursuant to the so-called “safe harbor lease” provisions of former Section 168(g)(1)(A) of the Internal Revenue Code of 1954, as amended, or (ii) subject to Section 168(g)(1)(A) of the Code, (iii) subject to a disqualified leaseback or long-term agreement as defined in Section 467 of the Code, or (iv) subject to any long term contract within the meaning of Code Section 460. The Seller is not currently, and has not been, a party to any “listed transaction” or “reportable transaction” as defined in Section 6707A(c)(2) of the Code and Section 1.6011-4(b)(2) of the Treasury Regulations (as modified by published IRS guidance).

3.10Contracts.  The Seller has delivered to the Buyer a complete and accurate copy of all “Acquired Contracts” and “Excluded Contracts,” which together constitute all contracts to which Seller is a party, and listed the same in Schedules 3.10(a) and 3.10(b), respectively, showing for each, the names of the parties, the name of the contract and the effective date of the same.  With respect to each Acquired Contract and Excluded Contract:  (i) the agreement is legal, valid, binding and enforceable against the Seller and to Seller’s knowledge the other party or parties thereto and in full force and effect; (ii) each Acquired Contract is assignable by Seller to the Buyer without the consent or approval of the counterparty(ies) thereto or any other third party or Governmental Authority (except as specified in Schedule 3.10(c)); and (iii) neither the Seller nor, to Seller’s knowledge, any other party to each Acquired Contract or Excluded Contract, is in breach or violation of, or default under, any such Acquired Contract or Excluded Contract, and no event has occurred, is pending or, to the Seller’s knowledge is threatened, which, after the giving of notice, with lapse of time, or otherwise, would constitute a breach or default by the Seller or, to Seller’s knowledge, any other party under such Acquired Contract or Excluded Contract. 
 
3.11Customers and Suppliers. Schedule 3.11 sets forth a list of (a) Seller’s top twenty customers based on the revenues derived from customers during the 12-month period immediately prior to the Effective Date and the amount of revenues accounted for by each such customer during such period (each a “Material Customer” and collectively, the “Material Customers”), and (b) each supplier that is Seller’s sole and exclusive supplier of any material product or service supplied to Seller, as well as Seller’s top twenty suppliers based on the 
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payments made to such suppliers during the 12-month period immediately prior to the Effective Date and the amount of payments made to each such supplier during such period (each a “Material Supplier” and collectively, the “Material Suppliers”). No such Material Customer or Material Supplier has provided Seller with written notice (or to Seller’s knowledge, oral notice) within the past year that it will stop, or decrease the rate of, buying or supplying products or services to or from Seller. In the past year, there has not been any (x) loss of a Material Supplier or Material Customer, or (y) to the Seller’s knowledge, indication from any Material Supplier or Material Customer that it intends to (i) materially reduce the level of business which it does with Seller, (ii) amend the material terms of any agreement between such supplier or customer and Seller, or (iii) terminate or not renew any Contract it may have with Seller.

3.12Warranties. No product or service sold or delivered by Seller is subject to any guaranty, warranty, right of return, right of credit or other indemnity.
 
3.13Intellectual Property.
 
3.13.1Schedule 3.13.1 lists all material Intellectual Property owned or purported to be owned by Seller and identifies all applications or registrations therefor including without limitation all patents, patent applications, material unregistered copyrights, copyright registrations or applications therefor, mask work registrations or applications therefor, common law trademarks and service marks, registrations and applications for trademarks and service marks,  domain name registrations, and social media accounts for Seller. Such Schedule also provides, where applicable, the specific owner of record for each item, the current status, the jurisdiction, and deadlines associated with maintenance or prosecution coming due in the next 6 months.

3.13.2The Seller owns or has the right to use all Intellectual Property necessary to operate the Business (the “Seller IP”) and all such ownership or rights (in the case of licensed Intellectual Property) in the Seller IP is included in the  Assets.  The Seller has taken reasonable measures to maintain in confidence all trade secrets and confidential information, that it owns or uses and is in compliance with any non-disclosure or similar contracts that it has entered into.  No other person or entity has any rights to any of the Intellectual Property owned or purported to be owned by the Seller (except pursuant to agreements or licenses specified in Schedule 3.13.4), and, to Seller’s knowledge, no other person or entity is infringing, violating or misappropriating any of the Intellectual Property owned or purported to be owned by the Seller.
 
3.13.3Neither the operation of the Business nor any of the Intellectual Property owned by or purported to be owned by the Seller, or the marketing, distribution, provision or use thereof, infringes or violates, or constitutes a 
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misappropriation of, any Intellectual Property rights of any person or entity. Schedule 3.13.3 lists any written complaint, claim or notice, or written threat thereof, received by the Seller in the past three (3) years alleging any infringement, violation or misappropriation of any Intellectual Property rights of any person or entity by the Seller. 

3.13.4Schedule 3.13.4 identifies each license or other agreement pursuant to which the Seller has granted a right to any third party, including license, sublicense, distribution, or other rights to any third party with respect to, any of the Seller IP.  Except as explicitly identified in Schedule 3.13.4, the Seller has not agreed to indemnify any person or entity against any infringement, violation or misappropriation of any Intellectual Property rights.
 
3.13.5Other than off the shelf software programs licensed by the Seller pursuant to “shrink wrap” or “click-through” licenses, Schedule 3.13.5 identifies each item of Intellectual Property used or held for use by the Seller that is owned by a party other than the Seller, and the license or agreement pursuant to which  Seller uses it. The Seller does not own any proprietary software.
 
3.13.6All of the Intellectual Property owned or purported to be owned by Seller has been created by (i) employees of the Seller within the scope of their employment by the Seller and either governed by the doctrine of work-for-hire or expressly assigned to Seller in a written and enforceable assignment; or (ii) independent contractors of the Seller who have executed written and enforceable agreements providing a present assignment of all right, title and interest in such Intellectual Property to the Seller.  No party other than the Seller owns any of the Intellectual Property owned or purported to be owned by Seller.  No person owns any of the Seller IP except for Seller.
 
3.13.7In connection with any collection or use of personally identifiable information from third parties, which is described on Schedule 3.13.7, the Seller has complied with (i) all applicable laws in all relevant jurisdictions including without limitation all laws relating to privacy and data protection; (ii) all industry guidance and best practices, and (ii) its publicly available privacy policy relating to the collection, storage, use and transfer of all personally identifiable information collected by the Seller.  There have been no security incidents related to any personally identifiable information collected or held by Seller including without limitation any actual or suspected unauthorized access to or use of any of Seller’s Internal Systems or any personally identifiable information held by Seller.

3.14Absence of Certain Changes or Events. Since December 31, 2020, there have been no events or changes giving rise to a Material Adverse Effect and Seller has operated the Business 
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in the ordinary course consistent with past practices. Without limiting the generality of the foregoing, except as disclosed on Schedule 3.14, since December 31, 2020:

    (a) Seller has not entered into any contract involving more than $10,000 in payments to or from Seller in any given calendar year, or any contract outside the ordinary course of business, or ordered Inventory outside of the ordinary course of business, 

    (b) No party (including Seller) has terminated, cancelled, or amended, modified or accelerated any Acquired Contract,

    (c) Seller has not imposed or become subject to any Liens upon any of its assets or property, other than Permitted Liens,

(d) Seller has not created, incurred, assumed, or guaranteed any Indebtedness,

    (e) Seller has not sold leased, transferred, or assigned any of its material assets, other than sales of inventory in the ordinary course of business, 

    (f) Seller has not made any material change in accounting policies, principles, or methodologies or in the manner Seller keeps its books and records or any change by Seller of its current practices with regard to accounting for sales, receivables, payables, or accrued expenses (including any change in depreciation or amortization policies or rates),

    (g) Seller has not failed to pay and discharge any current liabilities or agree with any party to extend the payment of any current liabilities,

    (h) Seller has not, other than with respect to this Agreement, sold, assigned, transferred, leased, licensed, or otherwise disposed of, or agreed to sell, assign, transfer, lease, license, or otherwise dispose of, any asset or property having a value in excess of $10,000 individually, or $25,000 in the aggregate,

    (i) Seller has not made any capital expenditure or commitment for additions to property and equipment or intangible capital assets in excess of $25,000, individually, or $50,000 in the aggregate,

    (j) Seller has not (i) increased the base salary, annual bonus, benefits or any other form of
compensation payable to any of the Seller's Employees or (ii) entered into, adopted or, except as and to the extent required by applicable Law, amended any Seller Plan,

    (k) Seller has not entered into any collective bargaining agreement or relationship with any labor organization, and

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    (l) Seller has not authorized or entered into any contract to do any of the foregoing.

3.15Litigation. Except as set forth on Schedule 3.15, Seller is not a party to any pending or, to the knowledge of Seller, threatened action, suit, proceeding or investigation, at law or in equity or otherwise in, for or by any court or other Governmental Authority; nor, to the knowledge of Seller, does any basis exist for any action, suit, proceeding or investigation. The Business and Assets are not subject to any decree, judgment, order, law or regulation of any court or other governmental body. There is no action, proceeding, or investigation pending or threatened, or any basis therefor known to Seller, that questions the validity of the Agreement and Exhibits or the right of Seller and Principals to enter into the Agreement and the Exhibits or to consummate the transactions contemplated by the Agreement and the Exhibits.

3.16Affiliate Transactions. Except as set forth on Schedule 3.16, no officer, employer, director or affiliate of the Seller or Principals (nor any ancestor, sibling, descendant or spouse of any of such persons, or any trust, partnership or corporation in which any of such Persons has or has had an economic interest) has or has had, directly or indirectly, (i) an economic interest in any person that purchases from or sells or furnishes to, the Seller, any material goods or services, or (ii) a beneficial interest in any Acquired Contract or Excluded Contract to which the Seller is a party or by which its properties or assets are bound.

3.17Environmental Matters.
 
3.17.1The Seller has complied with all applicable Environmental Laws.  There is no pending or, to Seller’s knowledge, threatened civil or criminal litigation, written notice of violation, formal administrative proceeding, or investigation, inquiry or information request by any Governmental Authority, relating to any Environmental Law involving Seller, any Permits or the Assets.

3.17.2The Seller has no liabilities or obligations arising from the release of any Materials of Environmental Concern into the environment or from the storage, disposal or handling of any Materials of Environmental Concern.

3.17.3The Seller is not a party to or bound by any court order, administrative order, consent order or other agreement with any Governmental Authority entered into in connection with any legal obligation or liability arising under any Environmental Law. 

3.17.4The Seller is not aware of any material environmental liability of any solid or hazardous waste transporter or treatment, storage or disposal facility that has been used by the Seller.
 
3.18Real Property Leases. Schedule 3.18 lists all leases and subleases for real property to which Seller is a party (collectively, the “Leases”) and lists the term of each such Lease, any 
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extension options, and the rent payable thereunder.  The Seller has delivered to the Buyer complete and accurate copies of all Leases.  The premises leased by Seller under each such Lease is suitable for use in the ordinary course of business of the Business as currently conducted and, to Seller’s knowledge, is not subject to any material damage (other than ordinary wear and tear). With respect to each Lease: (a) there are no oral agreements, forbearance programs or to Seller’s Knowledge, disputes in effect as to such Lease, in each case between Seller and the counterparty thereto; and (b) to Seller’s knowledge, there is no Lien, easement, covenant or other restriction applicable to the real property subject to such Lease which would reasonably be expected to materially impair the current uses or the occupancy by the Seller of the property subject thereto.

3.19Limitations on Transferability. Seller acknowledges that the Shares are being issued pursuant to exemption from registration as securities under applicable federal and state law. Seller covenants that in no event will Seller dispose of any of the Shares (other than pursuant to Rule 144 or any similar or analogous rule) without the prior written consent of Issuer, which shall not unreasonably be withheld, conditioned or delayed. The stock certificate representing the Shares shall display the following legend:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS.”

3.20Accredited Investor.  Seller hereby warrants that it is an Accredited Investor under the Securities Act of 1933 (the “Act”).
 
3.21No Registration of Shares.  Seller is aware that the Shares have not been registered under the Act, and that the Shares are deemed to constitute “restricted securities” under Rule 144 promulgated under the Securities Act (“Rule 144”).  Seller also understands that the Shares are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon Seller’s representations contained in this Agreement.
 
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3.22Purchase for Own Account. As of the Closing, Seller is acquiring the Shares for its own account and has no present intention of distributing or selling the Shares, except as permitted under the Act and applicable state securities laws.
 
3.23Knowledge and Experience. Seller has sufficient knowledge and experience in business and financial matters to evaluate the Buyer and the Issuer, its existing and proposed activities and the risks and merits of this investment.  Seller has the ability to accept the risk inherent in this type of investment.
 
3.24Adequate Review. Seller hereby represents and warrants to the Issuer and the Buyer that: (i) it has been advised by the Issuer to review the periodic reports, and filings made by the Issuer under the Securities Exchange Act of 1934 together with other public filings the Issuer has made on the SEC EDGAR system; (ii) that all documents, records, and books pertaining to the acquisition of the Shares as may have been requested by the Seller have been made available or delivered to, and have been examined by, the Seller; (iii) it has received all of the information it has requested from Buyer or Issuer that it considers necessary or appropriate for deciding whether to acquire the Shares; (iv) it has had an opportunity to ask questions and receive answers from Buyer and Issuer regarding the Shares; (v) it has not relied upon the Issuer, the Buyer or any of their respective representatives for any such investigation or assessment of risk; and (v) it understands the significant risks of this investment, including but not limited to the fact that the value of the Shares can increase or decrease after the date of issuance.

3.25 Independent Investigation. Seller represents that, except as set forth in this Agreement, no representations or warranties have been made to Seller by the Buyer, the Issuer or any of their respective officers, directors or agents, employees or affiliates of any of them, and that in entering into this transaction, the Seller is not relying upon information other than that contained in this Agreement and the results of its own independent investigation.
 
3.26Capacity to Protect Own Interests. Seller has the capacity to protect its own interests in connection with the acquisition of the Shares by virtue of its business or financial expertise.
 
3.27Residence. Seller represents that the office of Seller in which its investment decision was made is located at the address of Seller set forth on the signature page hereto.
 
3.28Brokers and Finders. The Seller represents that it has not retained any Brokers in connection with the transactions contemplated hereby.
 
3.29Employees.
 
3.29.1Schedule 3.29.1 contains a list of all employees of the Seller (the “Seller Employees”), and with respect to each such Seller Employee, the date of hire, position and the annual rate of compensation (including wages, commissions and bonus opportunity); vacation accrued as of a recent date; and service 
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credited as of a recent date for purposes of vesting and eligibility to participate under any Seller Plan; and all bonuses and any other amounts to be paid by the Seller at or in connection with the Closing.  Schedule 3.29.1 also sets forth the legal employment status of each Seller Employee who is not a U.S. citizen.  

3.29.2Each such agreement referenced in the preceding sentence is assignable by the Seller to the Buyer, without the consent or approval of any party and will continue to be legal, valid, binding and enforceable and in full force and effect immediately following the Closing to the same extent as in effect immediately prior to the Closing.  No Seller Employee has been promised, orally or in writing, any increase in compensation, bonus or benefits, and no Seller Employee has indicated to the Seller any dissatisfaction with his or her current compensation level.  To the knowledge of the Seller, no Seller Employee has any plans to terminate employment with the Seller (other than for the purpose of accepting employment with the Buyer following the Closing) or not to accept employment with the Buyer.  

3.29.3Schedule 3.29.3 sets forth a true and complete list of all independent contractors of the Seller, including for each such independent contractor, the contractor’s beginning service date, the beginning and end of any prior terms of service and the current compensation payable to such contractor.

3.29.4Except as set forth in Schedule 3.29.4, the Seller is, and at all times has been, in compliance with all applicable Laws relating to employees and employment matters, including applicable wage and hour Laws, nondiscrimination Laws and immigration Laws. There are no pending, or the knowledge of the Seller, threatened, complaints before any employment standards tribunal or human rights tribunal, court or employment tribunal and there are no pending or threatened workers’ compensation, discrimination or other employee claims.  All individuals characterized and treated by the Seller as independent contractors are properly treated as independent contractors under all applicable Laws.  The Seller has maintained all records required by applicable Law and good human resources practices regarding the employment of each Seller Employee. The Seller has provided all Seller Employees with all wages, benefits, service payments, per diem, relocation benefits, commissions, equity, stock options, bonuses and incentives and any and all other compensation (in whatever form or nature) which became due and payable through the date of
this Agreement and in compliance with all Laws.

3.29.5The Seller is not a party to nor is bound by any collective bargaining agreement, nor has it experienced any strikes, grievances, claims of unfair labor practices or other collective bargaining disputes.  The Seller has no 
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knowledge of any organizational effort made or threatened, either currently or within the past three years, by or on behalf of any labor union with respect to Seller Employees.

3.30Seller Plans.
 
3.30.1Schedule 3.30.1 contains a complete and accurate list of each Seller Plan. Complete and accurate copies of (i) all Seller Plans which have been reduced to writing, (ii) written summaries of all unwritten Seller Plans, and (iii) all related trust agreements, insurance contracts and summary plan descriptions have been delivered or made available to the Buyer. 

3.30.2Each Seller Plan is and at all times has been operated and maintained in material compliance with its terms and the requirements of applicable Law, including the Code and ERISA. With respect to each Seller Plan, as of the Closing Date, all contributions and other payments (including all premiums, employer contributions and employee salary reduction contributions) required to be made to, under or with respect to each Seller Plan for any period ending on the Closing Date will have been made, and there are no pending or, to the Knowledge of the Seller, threatened, Actions with respect to the Seller Plans other than routine claims for benefits. The Buyer shall not be subject to any Liability with respect to a Seller Plan.

3.30.3At no time has the Seller or any ERISA Affiliate been obligated to contribute to any “multiemployer plan” (as defined in Section 4001(a)(3) of ERISA), any defined benefit plan subject to the provisions of Section 412 of the Code, any “multiple employer welfare arrangement” (as defined in Section 3(40) of ERISA), or any multiple employer plan (as defined in Section 413(c) of the Code).

3.30.4There are no unfunded obligations under any Seller Plan providing benefits after termination of employment to any Seller Employee (or to any beneficiary of any such Seller Employee), including but not limited to retiree health coverage and deferred compensation, but excluding continuation of health coverage required to be continued under Section 4980B of the Code or other applicable law and insurance conversion privileges under state law.

3.30.5The execution and delivery of this Agreement and performance of the transactions contemplated hereby will not (either alone or upon the occurrence of any additional or subsequent events) (i) entitle any current or former Seller Employee to severance pay, or a transaction or retention bonus, unemployment compensation or any other payment or additional compensation, (ii) accelerate the time of payment or vesting, or increase the 
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amount of compensation due any such employee, officer, director or independent contractor, or (iii) result in any breach or violation of, or a default under, any Seller Plan.

3.31Full Disclosure. The representations and warranties of Seller and Principals contained in this Agreement and the schedules hereto, when read together, do not contain any untrue statement of a material fact or omit any material fact necessary to make the statements contained therein or herein in view of the circumstances under which they were made not misleading.

4.REPRESENTATIONS AND WARRANTIES OF BUYER AND ISSUER

Buyer and Issuer hereby jointly and severally represent and warrant to Seller and Principals the following, which are true and correct as of the Effective Date, in each case except to the extent any such representations and warranties are specifically made as of a particular date (in which case such representations and warranties need only be true and correct as of such date):

4.1Corporate Organization and Authority. Buyer and Issuer are Delaware and Colorado Corporations, respectively, duly organized, validly existing, authorized to exercise their respective corporate powers, rights and privileges in Delaware and Colorado, and in good standing in the States of Delaware and Colorado, respectively.

4.2Authorization. All corporate action on the part of Buyer and Issuer, its officers, directors, and stockholders necessary for the authorization, execution, delivery, and performance of all obligations under this Agreement and for the issuance of the Shares has been taken, and this Agreement constitutes a legally binding and valid obligation of Buyer and Issuer, respectively, enforceable in accordance with its terms.

4.3Corporate Power. Buyer and Issuer have all requisite legal and corporate power and authority to execute and deliver this Agreement and Exhibits, to sell and issue the Shares, and to carry out and perform their respective obligations under the terms of the Agreement.

4.4Litigation. There is no action, proceeding, or investigation pending or threatened, or any basis therefor known to Buyer or Issuer, that questions the validity of the Agreement or the right of Buyer or Issuer to enter into the Agreement or to consummate the transactions contemplated hereby. No event has occurred, or circumstances exist that may give rise or serve as a basis for any such action.

4.5Brokers and Finders. Each of the Buyer and Issuer represents that it has not retained a Broker in connection with the transactions contemplated by this Agreement, and Buyer and Issuer shall jointly and severally indemnify, defend and hold Seller harmless from any breach of the representation herein set forth

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4.6No Conflicts.  The execution, delivery and performance of this Agreement and its Exhibits, the consummation of the transactions contemplated hereby and thereby and the fulfillment of the terms hereof and thereof will not: (a) conflict with, or result in a breach or violation of the Buyer or Issuer organizational documents; (b) conflict with, or result in a default (or would constitute a default but for a requirement of notice or lapse of time or both) under any document, agreement or other instrument to which Buyer or Issuer is a party or result in the creation or imposition of any lien, charge or encumbrance on any of Buyer’s or Issuer’s properties pursuant to (i) any law or regulation to which the  Buyer or Issuer  or any of their  property is subject, or (ii) any judgment, order or decree to which Buyer or Issuer  is bound or any of its property is subject; or (c) violate any law, order, judgment, rule, regulation, decree or ordinance to which Buyer or Issuer is  subject, or by which Buyer or Issuer is bound. 

4.7Validity of Shares. As of the Closing, the Shares will be duly authorized and, when issued and paid for in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable to Seller, free of any liens, claims or other encumbrances, except for restrictions on transfer provided for herein or under the Act, or other applicable securities laws. The sale and issuance of the Shares hereunder is exempt from the registration requirements of the Securities Act and other applicable securities laws.

4.8Sufficient Funds.  Buyer will have at the Closing (through existing credit arrangements, capital calls or otherwise) sufficient funds available to pay the Cash Purchase Price.

4.9Independent Investigation.  Buyer has had the opportunity to conduct all such due diligence investigation of the Assets, Assumed Contracts and the Assumed Liabilities as Buyer deems necessary or advisable in connection with entering into this Agreement and the other transactions contemplated hereby and have conducted to Buyer’s satisfaction an independent investigation and verification of the current condition and affairs of the Assets, Assumed Contracts and the Assumed Liabilities.

4.10Exclusivity of Representations.  The representations and warranties made by Buyer in this Article 4 and in any Exhibit, Schedule or certificate delivered pursuant hereto are the exclusive representations and warranties made by Buyer.  Buyer hereby disclaims any other express or implied representations or warranties with respect to itself.

5.CLOSING CONDITIONS. 
 
5.1Conditions to Buyer’s Obligations. The obligation of Buyer to consummate the transactions contemplated by this Agreement is subject to the satisfaction of the following conditions at or prior to the Closing, any of which may be waived only in writing by the Buyer in its sole discretion:
 
5.1.1Representations and Warranties.
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(a)Each of the Fundamental Representations shall be true and correct in all but de minimis respects on and as of the date hereof and at and as of the Closing as if made on and as of the Closing Date.
(b)Each of the representations and warranties contained in Article 3 (other than the Fundamental Representations), disregarding all materiality, Material Adverse Effect or similar qualifications or exceptions contained therein, shall be true and correct in all respects on and as of the date hereof and on and as of the Closing Date with the same effect as if made on and as of the Closing Date (other than such representations and warranties that are made as of a specified date, which representations and warranties shall be true and correct as of such date).
5.1.2Performance of Covenants.  Each Principal and the Seller shall have performed in all of the covenants and agreements required to be performed by it under this Agreement prior to or at the Closing, including without limitation all conditions and deliverables listed in Section 2.7.2.
5.1.3No Orders or Proceedings.  No order, rule, regulation or law shall have been entered or adopted or be in effect, and no proceeding shall be pending or overtly threatened by or before any Governmental Authority, that could reasonably be expected to enjoin, prevent, restrain or materially delay consummation of any of the transactions contemplated by this Agreement or the agreements contemplated hereby.
5.1.4No Material Adverse Effect.  No fact, event, condition or circumstance has occurred or arisen since the date of this Agreement that, individually or in combination with any other facts, events, conditions or circumstances, has had or would reasonably be expected to have a Material Adverse Effect.
5.1.5Deliveries by Seller and the Principals.  At the Closing, Seller and the Principals shall have delivered or caused to be delivered to Buyer:
(a)a certificate executed and delivered by a manager of the Seller, dated the date of the Closing, stating that the conditions specified in Sections 5.1.1, 5.1.2 and 5.1.4 have been satisfied as of the Closing; and
(b)such other documents and instruments as Buyer may reasonably require in order to effectuate the transactions that are the subject of this Agreement, including, without limitation, (i) an unqualified audit opinion of Seller’s Audited Financial Statements confirming that Seller’s Business (including, for this purpose, that of its 
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affiliates also being purchased by Buyer on the Closing Date) generated no less than $5,000,000 in EBITDA during 2020, (ii) Interim Financial Statements confirming that Seller’s Business (including, for this purpose, that of its affiliates also being purchased by Buyer on the Closing Date) generated no less than $5,000,000 in EBITDA during the first half of 2021 and is on track to generate no less than $7,000,000 in EBITDA for fiscal year 2021, as supported by Seller’s books and records, and (iii) such other updated Exhibits and Schedules as provided for herein.
5.1.6    Inventory.  The Inventory Team shall have completed a physical inventory and determined the Inventory value, which shall be binding upon the parties, prior to Closing.  
        
All documents and instruments delivered to Buyer shall be in form and substance reasonably satisfactory to Buyer.

5.2Conditions to Seller’s and Principals’ Obligations. The obligation of Seller and Principals to consummate the transactions contemplated by this Agreement is subject to the satisfaction of the following conditions at or prior to the Closing, any of which may be waived only in writing by the Seller and Principals in their sole discretion:

5.2.1Representations and Warranties. Each of the representations and warranties contained in Article 4, disregarding all materiality, Material Adverse Effect or similar qualifications or exceptions contained therein, shall be true and correct in all respects on and as of the date hereof and on and as of the Closing Date with the same effect as if made on and as of the Closing Date (other than such representations and warranties that are made as of a specified date, which representations and warranties shall be true and correct as of such date).
5.2.2Performance of Covenants.  Buyer shall have performed in all of the covenants and agreements required to be performed by it under this Agreement prior to or at the Closing, including without limitation all conditions and deliverables listed in Section 2.7.3.
5.2.3No Orders or Proceedings.  No order, rule, regulation or law shall have been entered or adopted or be in effect, and no proceeding shall be pending or overtly threatened by or before any Governmental Authority, that could reasonably be expected to enjoin, prevent, restrain or materially delay consummation of any of the transactions contemplated by this Agreement or the agreements contemplated hereby.
6.TERMINATION.
 
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6.1Termination.  This Agreement may be terminated at any time prior to the Closing as follows:

6.1.1by the mutual written consent of Buyer and Seller;

6.1.2by Buyer, if (i) a breach or failure to perform any material representation, warranty, covenant or agreement on the part of Seller or any Principal set forth in this Agreement shall have occurred which is not cured within thirty (30) days following Buyer’s written notice to Seller of such breach; and (ii) Buyer is not in material breach of any provision of this Agreement;

6.1.3by the Seller if (i) a breach or failure to perform any material representation, warranty, covenant or agreement on the part of the Buyer set forth in this Agreement shall have occurred which is not cured within thirty (30) days following the Seller’s written notice to the Buyer of such breach and renders impossible the satisfaction of one or more of the conditions set forth in Section 5.2 and (ii) Seller and Principals are not in material breach of any provision of this Agreement;

6.1.4by either the Buyer or the Seller if the Closing has not occurred on or before the date that is the later of (i) thirty days after the receipt by Buyer of Seller’s Audited Financial Statements, or (ii) sixty days after the Effective Date (collectively, the “Outside Date”), provided that the party seeking to terminate shall not be entitled to terminate pursuant to this Section 6.1.4 if the failure of the Closing to occur was primarily caused by the failure of the Buyer (if it is seeking to terminate) or Seller (if it is seeking to terminate) to perform in any material respect any of the covenants or agreements to be performed by it prior to the Closing; or

6.1.5by either Buyer or the Seller if a Law is enacted, adopted, promulgated or enforced that makes consummation of the transactions contemplated hereby illegal or otherwise prohibited or if the consummation of the transactions contemplated hereby would violate any order, law, rule or regulation of any Governmental Authority having competent jurisdiction.

In the event of termination pursuant to this Section 6.1, written notice thereof (describing in reasonable detail the basis therefor) shall forthwith be delivered to the other parties hereto.

6.2Effect of Termination.  In the event of termination of this Agreement in accordance with Section 6.1, this Agreement shall immediately terminate and have no further force and effect and there shall be no liability on the part of any Party to any other Party under this Agreement, except that (a) the covenants and agreements set forth in this Section 6.2, the provisions of Article 9 (other than 
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Section 9.12) and all definitions herein necessary to interpret any of the foregoing provisions shall remain in full force and effect and survive such termination indefinitely and (b) such termination shall not function as a release of liability for any willful, intentional and material breach by the Seller or any of the Principals of this Agreement prior to such termination. 

7.EMPLOYMENT MATTERS.

7.1Independent Contractors and Employees. Effective upon the Closing, Buyer or one of its Affiliates (the “Hiring Entity”)  shall offer employment to each of the employees listed in Exhibit I, which may be updated by mutual agreement the parties prior to the Closing Date, at a compensation amount to be determined by Buyer. Such offer of employment shall be conditioned upon each such employee’s successful (as determined by Buyer in accordance with its hiring policies maintained in the ordinary course of its business consistent with past practices) completion of the pre-employment screening required of all of the Hiring Entity’s employees.  Any such Employee who accepts the Hiring Entity’s offer of employment described herein and successfully completes the pre-employment screening shall be deemed a “Hired Employee” effective as of the Closing.  The Seller shall bear any and all obligations and liabilities under the WARN Act resulting from employment losses.

7.2Liabilities in Respect of Employees. Buyer shall have no liability for Seller’s liabilities in respect of accrued wages (including salaries, bonuses and commissions), severance pay, accrued vacation, sick leave or other benefits, or employee agreements of any type or nature on account of Seller, retention of or termination of independent contractors or employment of or termination of employees, and Seller and the Principals shall indemnify Buyer and Issuer and hold the same harmless against liability arising out of any claims for such pay or benefits or any other claims arising from Seller’s retention of or employment of or termination of such independent contractors or employees.
 
8.INDEMNITY

8.1Seller’s Indemnity. The Seller and Principals, jointly and severally, shall indemnify and hold harmless Buyer and Issuer, and their respective affiliates, parents, subsidiaries, officers, directors, successors, agents and assigns, from and against any and all losses, costs, expenses, liabilities, obligations, claims, demands, causes of action, suits, settlements and judgments of every nature, including the costs and expenses associated therewith and reasonable attorneys’ fees (“Buyer’s Damages”) which arise out of: (i) the breach of any representation or warranty made by Seller and/or Principals pursuant to this Agreement; (ii) the non-performance or breach, partial or total, of (x) any covenant made by Seller and/or Principals pursuant to this Agreement or (y) any of the terms of the Seller’s deliverables in Section 2.7.2; (iii) claims of any type or nature relating to the retention of the Business’ independent contractors or employment of the Business’ employees by Seller or any termination of such independent contractors or 
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employees by Seller; (iv) the Retained Liabilities; (v) the ownership or operation of the Assets by Seller or in connection with the Business of Seller, in each case prior to the Closing Date or arising from acts or omissions occurring prior to the Closing Date; (vi) any PPP Loans and/or EIDL Loans; and (vi) Seller’s portion of the Transfer Taxes pursuant to Section 2.2.2. The representations and warranties of Seller herein set forth shall survive for a period of eighteen (18) months following the Closing Date (the “Claims Period”); provided, however, that the Claims Period with respect to any Fundamental Representation or fraud shall be sixty (60) months or the applicable statute of limitations, whichever is longer, and provided further that the Claims Period with respect to Section 3.9 (Taxes) and 9.17 (Tax Matters) shall survive the Closing Date for a period of sixty (60) days after the expiration of the applicable statute of limitations. Buyer shall not be entitled to indemnification pursuant to this Section  with respect to any breach or misrepresentation of any representation or warranty or other indemnification obligation until such time as its respective aggregate right to such indemnification exceeds Twenty-Five Thousand Dollars ($25,000) (it being agreed that in the event such threshold is reached and exceeded, Seller will be liable for losses from the first dollar of such amount).

8.2Buyer’s and Issuer’s Indemnity. Buyer and Issuer shall jointly and severally indemnify and hold harmless Seller from and against any and all losses, costs, expenses, liabilities, obligations, claims, demands, causes of action, suits, settlements and judgment s of every nature, including the costs and expenses associated therewith and reasonable attorneys’ fees (“Seller’s Damages”), which arise out of:  (i) the breach by Buyer or Issuer of any representation or warranty made by Buyer or Issuer pursuant to this Agreement, (ii) the non-performance, partial or total, of any covenant made by Buyer or Issuer pursuant to this Agreement; (iii) the use or ownership of the Assets or the activities of or on behalf of the Buyer related to the Assets on and subsequent to the Closing Date (solely to the extent not arising from acts or omissions occurring prior to the Closing Date); (iv) Buyer’s portion of any Transfer Taxes pursuant to Section 2.2.2; and (v) any Assumed Liabilities.
 
8.3Adjustment to Purchase Price for Tax Purposes. The Parties shall treat any indemnity payment made under this Agreement pursuant to this Article 8 as an adjustment to the Purchase Price for all Tax purposes to the maximum extent permitted by applicable law. No party shall take any position on any Tax Return or filing, or before any Governmental Authority, that is inconsistent with such treatment unless otherwise required by any applicable law.

9.MISCELLANEOUS

9.1Allocation of Purchase Price.  Schedule 9.1 sets forth  the allocation agreed to by Seller and Buyer of the Purchase Price and Assumed Liabilities among the  Assets being transferred by Seller to Buyer for purposes of determining the income tax consequences of the transactions contemplated by this Agreement.  The Parties intend that Schedule 9.1 conform to the requirements of Section 1060 of the Internal Revenue Code, and they agree to be bound thereby 
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and to act in accordance with it in the preparation and filing of Tax Returns (including Internal Revenue Service From 8594 and any exhibits thereto), information returns, schedules or other filings made with the Internal Revenue Service or other Governmental Authorities. Any adjustments to the Purchase Price pursuant to Section 2.3 or Article 8 shall be allocated in a manner consistent with this Section 9.1 and Schedule 9.1.  Each Party shall promptly notify the other of any challenge by any Governmental Authority to any allocation pursuant to this Section 9.1.

9.2Confidentiality. No party hereto shall issue a press release or otherwise publicize the Agreement or transactions contemplated hereby or otherwise disclose the nature or contents of this Agreement until the Closing has occurred.  From and after Closing, any such press release or other public announcement shall not be issued without the written approval of Buyer (which such approval shall not be unreasonably withheld, conditioned or delayed), except as may be required by law or any applicable listing agreement with a national securities exchange as determined in the good-faith judgment of the party or affiliate of a party proposing to make such release or communication (in which case, such party or affiliate of a party shall not issue or cause the publication of such press release or other public announcement without providing the other parties a reasonable opportunity to review and comment upon such press release or other public announcement).

9.3Expenses. Each party will pay its own costs and expenses, including legal and accounting expenses, related to the transactions provided for herein, irrespective of when incurred. In the event of any legal action to enforce any of the obligations set forth in the Agreement, the prevailing party shall be entitled to recover costs and reasonable legal fees.

9.4Notices. Any notice or other communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given on the date of service if served personally or by email, or five days after the date of mailing if mailed by first class mail, registered or certified, postage prepaid. Notices shall be addressed as follows:

If to Issuer or Buyer:    GrowGeneration Corp. and 
            GrowGeneration Michigan Corp.
            ATTN: Darren Lampert
    930 W 7th Ave, Suite A
    Denver, CO 80204

with a copy to        Robinson + Cole
            ATTN:  Mitchell Lampert
            1055 Washington Boulevard
            Stamford, CT 06901

If to Seller:        HGS Walled Lake LLC
            c/o HGS HOLDINGS, LLC
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ATTN: Rocky Shaeena
            2238 Auburn Road
            Shelby Township, MI 48317

with a copy to:        Elia Law, PLLC
ATTN: Salam Elia
550 West Merrill Street, Suite 100
Birmingham, MI 48009

or to such other address as a party has designated by notice in writing to the other party in the manner provided by this section.

9.5Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan, without respect to its conflict of laws principles.

9.6Successors and Assigns.  This Agreement and Exhibits and the rights of the parties hereunder and thereunder may not be assigned by any party without the prior written consent of the other parties, and shall be binding upon and shall inure to the benefit of the parties hereto and the successors and permitted assigns of Buyer, Issuer and the Seller, respectively. 

9.7Entire Agreement; Counterparts.  This Agreement, together with the schedules and Exhibits hereto, sets forth the entire understanding of the parties hereto with respect to the transactions contemplated hereby and thereby.  Any and all previous agreements and understandings between or among the parties regarding the subject matter hereof or thereof, whether written or oral, are superseded and replaced by this Agreement.  This Agreement may be executed in two or more counterparts (including those delivered by facsimile or other electronic means), each of which will be deemed an original, but all of which together will constitute one and the same instrument.

9.8Amendment.  This Agreement shall not be amended or modified except by a written instrument duly executed by each of the parties hereto.  

9.9Waiver.  Any extension or waiver by any party of any provision hereto shall be valid only if set forth in an instrument in writing signed on behalf of such party. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver.

9.10Schedules and Exhibits.  Each of the Schedules and Exhibits to this Agreement is incorporated herein by this reference and expressly made a part of this Agreement.

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9.11Partnership.  The relationship of the parties is that of “buyer”, “issuer” and “seller,” and nothing contained herein shall be deemed to create a partnership or joint venture between or among the parties.

9.12Specific Performance; Remedies.  Each party hereto acknowledges that the other parties will be irreparably harmed and that there will be no adequate remedy at law for any violation by any of them of any of the covenants or agreements contained in this Agreement and its Exhibits, including the confidentiality obligations set forth in this Agreement or in any other agreement between any of the parties hereto.  It is accordingly agreed that, in addition to any other remedies which may be available upon the breach of any such covenants or agreements, each party hereto shall have the right to obtain injunctive relief to restrain a breach or threatened breach of, or otherwise to obtain specific performance of, covenants and agreements of other parties contained in this Agreement.  An action for specific performance must be commenced within ninety (90) calendar days from the other party’s breach of this Agreement (beyond the cure period), and failure to commence an action within the ninety (90) day period shall be deemed to have the non-breaching party waived its right to specific performance/injunctive relief.

9.13Severability.  If any provision of this Agreement or any Exhibit or the application thereof to any person or circumstances is held invalid or unenforceable in any jurisdiction, the remainder hereof and thereof, and the application of such provision to such person or circumstances in any other jurisdiction, shall not be affected thereby, and to this end the provisions of this Agreement or Exhibit, as applicable, shall be severable.

9.14Further Representations.  Each party to this Agreement acknowledges and represents that it has been represented by its own legal counsel in connection with the transactions contemplated by this Agreement, with the opportunity to seek advice as to its legal rights from such counsel.  Each party further represents that it is being independently advised as to the tax consequences of the transactions contemplated by this Agreement and is not relying on any representation or statements made by any other party as to such tax consequences.
 
9.15Further Assurances.  The parties shall, at any time from and after the Closing, upon the request of any other party and without further consideration, do, execute, acknowledge and deliver, and cause to be done, executed, acknowledged and delivered, all such further acts, deeds, instruments, assignments, transfers, conveyances, powers of attorney or assurances as may be reasonably required to evidence and make effective the transactions contemplated by this Agreement, including to transfer, convey, grant, and confirm to and vest in Buyer good title to all of the Assets, free and clear of all Liens (other than Permitted Liens).

9.16Consent to Jurisdiction.  Each party irrevocably submits to the exclusive jurisdiction of the federal and state courts of the County of Oakland, Michigan, for the purposes of any action, proceeding, suit, or claim arising out of this Agreement. Each party agrees to commence any such action, proceeding, suit, or claim in the state or federal courts of the County of Oakland, Michigan.  Each party irrevocably and unconditionally waives any objection to the laying of 
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venue of any action, proceeding, suit, or claim arising out of this Agreement or the transactions contemplated hereby in the state or federal courts of the County of Oakland, Michigan, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, proceeding, suit, or claim brought in any such court has been brought in an inconvenient forum.
9.17Tax Matters. The following provisions shall govern the allocation of responsibility as between the Buyer and the Seller for certain Tax matters following the Closing Date:
(a)The Buyer shall prepare and timely file all Tax Returns with respect to Property Taxes relating to the Assets for the Straddle Period.  The Buyer will provide such Tax Returns for the Straddle Period to the Seller at least fifteen (15) days before the due date for filing of any such Tax Returns for its review and comment (and the Buyer shall consider all reasonable comments of Seller in good faith).   The Buyer shall pay and discharge all Taxes shown to be due on such Tax Returns for the Straddle Period, subject to the indemnification rights of the Buyer under Section 8.1.  No later than ten (10) business days prior to the due date of such Tax Return, the Seller shall pay to the Buyer the amount of Taxes shown due on such Tax Return which is attributable to the pre-Closing portion of the Straddle Period.
(b)Seller shall include the income of the Business on Seller’s federal, state, and local income tax returns for all periods (or portions thereof) ending on or prior to the Closing Date and pay any federal, state, and local income taxes attributable to such income.
(c)Buyer shall include the income of the Business after the Closing Date on Buyer’s federal, state, and local income tax returns for all periods (or portions thereof) commencing after the Closing Date (provided that the Closing shall have occurred) and pay any income taxes attributable to such income.
(d)The amount of real property, personal property, and similar taxes (not based on income, profits or gains) relating to the Assets (“Property Taxes”), and any Tax refunds relating to such Property Taxes, attributable to the pre-Closing portion of any Straddle Period shall be determined based upon the relative number of days in the pre-Closing and post-Closing portions of such Straddle Period, in each case over the total number of days in such Straddle Period.  For any Taxes other than Property Taxes (such as franchise Taxes, Taxes that are based upon or related to income or receipts or net income, Taxes based upon production or occupancy or imposed in connection 
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with any sale or other transfer or assignment of property) for a Straddle Period the amount of any such Taxes attributable to the pre-Closing portion such Straddle Period shall be determined based upon a hypothetical closing of the taxable year on such Closing Date with the Closing Date being included in the pre-Closing portion of such Straddle Period.  Notwithstanding any provision in this Agreement to the contrary, the Buyer shall not be required to make any payment or disbursal to Seller or any Governmental Authority relating to any Taxes attributable to the Assets or the Business for a taxable year (or portion thereof) ending on or before the Closing Date.  Each party agrees to cooperate with each other party in paying or reimbursing their respective Tax obligations in accordance with this Section 9.17.
(e)The Buyer and Seller shall cooperate fully, as and to the extent reasonably requested by the other Party, in preparing and filing Tax Returns with respect to the Assets and the Business, including providing complete and accurate records concerning the Tax basis of the Assets and such other information as may be reasonably necessary with respect to the preparation and filing of such Tax Returns, and in connection with any audit or other proceeding with respect to Taxes related to the Assets or the Business. Such cooperation shall include the retention and (upon the other party’s request) the provision of records and information which are reasonably relevant to any such audit or other proceeding.

[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have caused this Asset Purchase Agreement to be executed as of the Effective Date.
                 
SELLER:                              BUYER:                

HGS WALLED LAKE LLC                GROWGENERATION MICHIGAN                                CORP. 
                     

By:                             By:                    
       Rocky Shaeena, Manager                              Darren Lampert, CEO
                                                       

                               
ISSUER:                                        
PRINCIPALS:
            GROWGENERATION CORP.                                                                                     

_______________________                By:                    
Rocky Shaeena                                   Darren Lampert, CEO

________________________
Christopher Kiryakoza

________________________
Tony Allos                    
			
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Asset Purchase Agreement

			
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