Document:

Exhibit 10.9

 

WARRANT
NO. 3

 

THE
SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

WOWIO,
INC.

 

Redeemable
Warrant To Purchase Common Stock

 

Number
of Shares: A number of shares that would equate to 1% of the issued and outstanding Common Stock of the Company

 

Dated
as of August 31, 2012, but effective as of September 21, 2012

 

WOWIO,
Inc., a Texas corporation (the “Company”), hereby certifies that, for Ten United States Dollars ($10.00)
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, TCA Global Credit Master
Fund, LP, a Cayman Islands limited partnership (“Holder”), the registered holder hereof or its permitted
assigns, is entitled, subject to the terms set forth below, to purchase from the Company upon surrender of this Warrant, at any
time or times on or after the date hereof, but not after 11:59 P.M. Eastern Time on the “Expiration Date” (as defined
herein), that number identified above of fully paid and nonassessable shares of “Common Stock” (as defined herein)
of the Company (the “Warrant Shares”) at the exercise price per share provided in Section 1(b)
below or as subsequently adjusted.

 

Section
1.

 

(a)          This
Warrant is the common stock purchase warrant (the “Warrant”) issued pursuant to a Credit Agreement dated
the date hereof by and between the Company and Holder (the “Credit Agreement”).

 

(b)          Definitions.
The following words and terms as used in this Warrant shall have the following meanings:

 

(i)          “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in the State of Florida are
authorized or required by law to remain closed.

 

    	 

    	 

    

 

(ii)          “Common
Stock” means (i) the Company’s common stock, $.001 par value per share, and (ii) any capital stock into which
such Common Stock shall have been changed or any capital stock resulting from a reclassification of such Common Stock.

 

(iii)          “Expiration
Date” means 11:59 P.M. Eastern Time on the date that is five (5) years from the Issuance Date or, if such date does
not fall on a Business Day, the next Business Day thereafter occurring.

 

(iv)          “Issuance
Date” means the “Closing Date” (as such term is defined in the Credit Agreement.

 

(v)          “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a government or any department or agency thereof.

 

(vi)          “Securities
Act” means the Securities Act of 1933, as amended.

 

(vii)          “Warrant”
means this Warrant and all Warrants issued in exchange, transfer or replacement thereof.

 

(viii)        
“Warrant Exercise Price” shall be One Thousandth of One Dollar (US$0,001) per share or as subsequently
adjusted as provided in Section 8 hereof.

 

(ix)          
“Warrant Shares” means the shares of Common Stock issuable at any time upon exercise of this Warrant.

 

(c)          Other
Definitional Provisions.

 

(i)          
Except as otherwise specified herein, all references herein: (A) to the Company shall be deemed to include the Company’s
successors; and (B) to any applicable law defined or referred to herein shall be deemed references to such applicable law as the
same may have been or may be amended or supplemented from time to time.

 

(ii)
          When used in this Warrant, the words “herein”,
“hereof, and “hereunder” and words of similar import, shall refer to this Warrant as a whole and
not to any provision of this Warrant, and the words “Section”, “Schedule”, and “Exhibit”
shall refer to Sections of, and Schedules and Exhibits to, this Warrant unless otherwise specified.

 

(iii)
          Whenever the context so requires, the neuter gender includes the masculine
or feminine, and the singular number includes the plural, and vice versa.

 

    	2

    	 

    

  

Section
2.          Exercise of Warrant. Subject to the terms and conditions
hereof, this Warrant may be exercised by the holder hereof then registered on the books of the Company, in whole or in part, at
any time on any Business Day on or after 9:00 A.M. on such Business Day, commencing with the first day after the Issuance Date,
and prior to 11:59 P.M. Eastern Time on the Expiration Date, by: (i) delivery of a written notice, in the form of the subscription
notice attached as Exhibit A hereto (the “Exercise Notice”), of such holder’s election
to exercise this Warrant, which notice shall specify the number of Warrant Shares to be purchased; and (ii) payment to the Company
of an amount equal to the Warrant Exercise Price(s) applicable to the Warrant Shares being purchased, multiplied by the number
of Warrant Shares (at the applicable Warrant Exercise Price) as to which this Warrant is being exercised (plus any applicable
issue or transfer taxes) (the “Aggregate Exercise Price”) in cash, check from Holder, or wire transfer
of immediately available funds, to a common carrier for overnight delivery to the Company. To effect an exercise of this Warrant,
the Holder shall not be required to physically surrender this Warrant to the Company unless the entire amount of the Warrant is
being exercised. Partial exercises of this Warrant shall have the effect of lowering the amount of Warrant Shares available for
exercise under this Warrant in an amount equal to the applicable exercise. The Holder and the Company shall maintain records showing
the amount of this Warrant exercised and the date of such exercise. The Holder, and any assignee by acceptance of this
Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following an exercise of a portion of this
Warrant, the amount of Warrant shares into which this Warrant is exercisable may be less than the amount stated on the
face hereof. In the event of any exercise of the rights represented by this Warrant in compliance with this Section 2, the
Company shall, no later than the tenth (10th) Business Day following the date of receipt of the Exercise Notice and the Aggregate
Exercise Price (the “Exercise Delivery Documents”), issue and surrender to a common carrier for
overnight delivery to the address specified in the Exercise Notice, a certificate, registered in the name of the Holder or its
nominee, for the number of shares of Common Stock to which the Holder shall be entitled pursuant to such request. Upon delivery
of the Exercise Delivery Documents, the Holder of this Warrant shall be deemed for all corporate purposes to have become the holder
of record of the Warrant Shares with respect to which this Warrant has been exercised. In the case of a dispute as to the determination
of the Warrant Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder
the number of Warrant Shares that is not disputed and shall submit the disputed determinations or arithmetic calculations to the
Holder via e-mail or facsimile within three (3) Business Days of receipt of the holder’s Exercise Notice. If the Holder
and the Company are unable to agree upon the determination of the Warrant Exercise Price or arithmetic calculation of the Warrant
Shares within one (1) day of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company
shall within one (1) Business Day submit via e-mail or facsimile: (i) the disputed determination of the Warrant Exercise Price
to an independent, reputable investment banking firm; or (ii) the disputed arithmetic calculation of the Warrant Shares to its
independent, outside accountant. The Company shall cause the investment banking firm or the accountant, as the case may be, to
perform the determinations or calculations and notify the Company and the Holder of the results no later than forty-eight (48)
hours from the time it receives the disputed determinations or calculations. Such investment banking firm’s or accountant’s
determination or calculation, as the case may be, shall be deemed conclusive absent manifest error. No fractional Warrant Shares
are to be issued upon any partial exercise of this Warrant, but rather the number of Warrant Shares issued upon such exercise
of this Warrant shall be rounded up to the nearest whole number.

 

    	3

    	 

    

  

Section
3.          Covenants as to Common Stock. The Company hereby covenants
and agrees as follows:

 

(a)          This
Warrant is, and any Warrants issued in substitution for or replacement of this Warrant will upon issuance be, duly authorized
and validly issued.

 

(b)          All
Warrant Shares which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly
issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof.

 

(c)          The
Company at all times during the term of this Warrant shall reserve for issuance upon exercise of this Warrant such number of shares
of its Common Stock as shall be required for issuance of all Warrant Shares.

 

(d)          This
Warrant will be binding upon any entity succeeding to the Company by merger, consolidation or acquisition of all or substantially
all of the Company’s assets.

 

Section
4.          Mandatory Redemption.

 

(a)          Unless
this Warrant is exercised in full prior to the “Redemption Date” (as hereinafter defined), the Company shall have
an affirmative obligation to redeem this Warrant, in full, on or prior to September 21, 2013 (the “Redemption Date”)
(provided that if the Redemption Date is not a Business Day, then the next Business Day thereafter occurring), for a redemption
price equal to Thirty Thousand Dollars ($30,000). The Company shall deliver such redemption price to the Holder by wire transfer
of immediately available US funds to an account designated by the Holder by no later than 2:00 PM, EST, on the Redemption Date.

 

(b)          Failure
to redeem this Warrant in accordance with this Section 4 shall constitute a default under this Warrant and the Credit Agreement.

 

Section
5.          Taxes. The Company shall pay any and all taxes, including
any applicable withholding, which may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of
this Warrant.

 

Section
6.          Warrant Holder Not Deemed a Stockholder. Except as otherwise
specifically provided herein or in the Credit Agreement, no holder, as such, of this Warrant shall be entitled to vote or receive
dividends or be deemed the holder of shares of capital stock of the Company for any purpose, nor shall anything contained in this
Warrant be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right
to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock,
consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the issuance to the holder of this Warrant of the Warrant Shares which he or she is then entitled to receive upon the
due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on
such holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether
such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company will
provide the holder of this Warrant with copies of the same notices and other information given to the stockholders of the Company
generally, contemporaneously with the giving thereof to the stockholders.

 

    	4

    	 

    

  

Section
7.          Ownership and Transfer.

 

(a)          The
Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by
notice to the holder hereof), a register for this Warrant, in which the Company shall record the name and address of the person
in whose name this Warrant has been issued, as well as the name and address of each transferee. The Company may treat the person
in whose name any Warrant is registered on the register as the owner and holder thereof for all purposes, notwithstanding any
notice to the contrary, but in all events recognizing any transfers made in accordance with the terms of this Warrant.

 

(b)          Subject
to compliance with any applicable securities laws and the conditions set forth herein, this Warrant and all rights hereunder are
transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company, together with a written
assignment of this Warrant and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such
surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee
or assignees and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor
a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. A Warrant,
if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

Section
8.          Adjustment of Warrant Exercise Price and Number of Shares.
The Warrant Exercise Price and the number of shares of Common Stock issuable upon exercise of this Warrant shall be adjusted from
time to time as follows:

 

(a)          Subdivision
or Combination of Shares. The number and kind of securities purchasable upon the exercise of this Warrant and the Warrant
Exercise Price shall be subject to adjustment from time to time upon the happening of any of the following. In case the Company
shall (i) pay a dividend in shares of Common Stock or make a distribution in shares of Common Stock or any other security of the
Company or its subsidiaries (“Other Securities”) to holders of its outstanding Common Stock, (ii) subdivide
its outstanding shares of Common Stock into a greater number of shares, (iii) combine its outstanding shares of Common Stock into
a smaller number of shares of Common Stock, or (iv) issue any shares of its capital stock in a reclassification of the Common
Stock, then the number of Warrant Shares purchasable upon exercise of this Warrant immediately prior thereto shall be adjusted
so that the Holder shall be entitled to receive the kind and number of Warrant Shares or Other Securities of the Company which
it would have owned or have been entitled to receive had such Warrant been exercised in advance thereof. Upon each such adjustment
of the kind and number of Warrant Shares or Other Securities of the Company which are purchasable hereunder, the Holder shall
thereafter be entitled to purchase the number of Warrant Shares or Other Securities resulting from such adjustment at a Warrant
Exercise Price per Warrant Share or other security obtained by multiplying the Warrant Exercise Price in effect immediately prior
to such adjustment by the number of Warrant Shares purchasable pursuant hereto immediately prior to such adjustment and dividing
by the number of Warrant Shares or Other Securities of the Company resulting from such adjustment. An adjustment made pursuant
to this paragraph shall become effective immediately after the effective date of such event retroactive to the record date, if
any, for such event.

 

    	5

    	 

    

  

(b)          Reorganization,
Reclassification, Consolidation, Merger or Sale. If any recapitalization, reclassification or reorganization of the share
capital of the Company, or any consolidation or merger of the Company with another Person, or the sale of all or substantially
all of its shares and/or assets or other transaction (including, without limitation, a sale of substantially all of its assets
followed by a liquidation) shall be effected in such a way that holders of Common Stock shall be entitled to receive shares, securities
or other assets or property, then, as a condition of such recapitalizations, reclassifications, reorganizations, consolidations,
mergers or sales, lawful and adequate provisions shall be made by the Company whereby the Holder hereof shall thereafter have
the right to purchase and receive (in lieu of the Warrant Shares of the Company immediately theretofore purchasable and receivable
upon the exercise of the rights represented hereby) such shares, securities or other assets or property as may be issued or payable
with respect to or in exchange for the number of outstanding Warrant Shares which such Holder would have been entitled to receive
had such Holder exercised this Warrant immediately prior to the consummation of such recapitalizations, reclassifications, reorganizations,
consolidations, mergers or sales. The Company or its successor shall promptly issue to Holder a new Warrant for such new securities
or other property. The new Warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to
give effect to the adjustments provided for in this Section including, without limitation, adjustments to the Warrant Exercise
Price and to the number of securities or property issuable upon exercise of the new Warrant. The provisions of this Section shall
similarly apply to successive recapitalizations, reclassifications, reorganizations, consolidations, mergers or sales.

 

(c)          Notice
of Adjustment. Whenever the number of Warrant Shares or number or kind of securities or other property purchasable upon the
exercise of this Warrant or the Warrant Exercise Price is adjusted, as herein provided, the Company shall give notice thereof
to the Holder, which notice shall state the number of Warrant Shares (and Other Securities or property) purchasable upon the exercise
of this Warrant and the Warrant Exercise Price of such Warrant Shares (and Other Securities or property) after such adjustment,
setting forth a brief statement of the facts requiring such adjustment and setting forth the computation by which such adjustment
was made.

 

(d)          Notice
to Allow Exercise by Holder. If: (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C)
the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any
sale or transfer of all or substantially all of the assets of the Company, of any compulsory share exchange whereby the Common
Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office
or agency maintained for the purpose of exercise of this Warrant, and shall cause to be delivered to the Holder at its last address
as it shall appear upon the Company’s records, at least twenty (20) calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating: (x) the date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common
Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined, or (y) the
date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their
shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof
shall not affect the validity of the corporate action required to be specified in such notice. The Holder is entitled to exercise
this Warrant during the 20-day period commencing on the date of such notice through the effective date of the event triggering
such notice.

 

    	6

    	 

    

  

Section
9.          Restrictive Legend. This Warrant and the Warrant Shares have
not been registered under the United States Securities Act of 1933, as amended, (the “Securities Act”) and
the Warrants have been and the Warrant Shares, upon exercise of the Warrants, will be issued pursuant to exemptions from the registration
requirements of the Securities Act. Neither this Warrant nor any of the Warrant Shares or any other security issued or issuable
upon exercise of this Warrant may be sold, transferred, pledged or hypothecated in the absence of an effective registration statement
under the Securities Act relating to such security or an exemption from the registration requirements of the Securities Act. The
Holder understands that this Warrant constitutes and the Warrant Shares upon issuance will constitute “restricted securities”
under the Securities Act. The Holder acknowledges and agrees that, unless registered, all certificates representing the Warrant
Shares will be endorsed with the following legend:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”),
AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT. SUCH SECURITIES MAY NOT BE REOFFERED
FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE
WITH THE ACT.”

 

Section
10.          Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant
is lost, stolen, mutilated or destroyed, the Company shall promptly, on receipt of an indemnification undertaking (or, in the
case of a mutilated Warrant, the Warrant), issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen,
mutilated or destroyed.

 

    	7

    	 

    

  

Section
11.          Notices. All notices of request, demand and other communications
hereunder shall be addressed to the parties as follows:

 

	If to the Company:	WOWIO, Inc.
	 	6310 San Vicente Blvd., Suite 240
	 	Los Angeles, CA 90048
	 	Attn: Brian Altounian, President
	 	E-Mail: baltounian@wowio.com
	 	 
	With a copy to:	 
	 	 
	 	 
	If to the Holder:	TCA Global Credit Master Fund, LP
	 	1404 Rodman Street
	 	Hollywood, FL 33020
	 	Attn: Mr. Robert Press
	 	Telephone: (786) 323-1650
	 	Facsimile: (786) 323-1651
	 	E-Mail: bpress@trafcap.com
	 	 
	With a copy to:	David Kahan, P.A.
	 	6420 Congress Ave., Suite 1800
	 	Boca Raton, Florida 33487
	 	Attn: David Kahan, Esq.
	 	E-Mail: david@dkpalaw.com

 

unless
the address is changed by the party by like notice given to the other parties. Notice shall be in writing and shall be deemed
delivered: (i) if mailed by certified mail, return receipt requested, postage prepaid and properly addressed to the address below,
then three (3) Business Days after deposit of same in a regularly maintained U.S. Mail receptacle; or (ii) if mailed by Federal
Express, UPS or other nationally recognized overnight courier service, next business morning delivery, then one (1) Business Day
after deposit of same in a regularly maintained receptacle of such overnight courier; or (iii) if hand delivered, then upon hand
delivery thereof to the address indicated on or prior to 5:00 p.m., EST, on a Business Day. Any notice hand delivered after 5:00
p.m., EST, shall be deemed delivered on the following Business Day. Notwithstanding the foregoing, notice, consents, waivers or
other communications referred to in this Warrant may be sent by facsimile, e-mail, or other method of delivery, but shall be deemed
to have been delivered only when the sending party has confirmed (by reply e-mail or some other form of written confirmation)
that the notice has been received by the other party.

 

Section
12.          Amendment and Waiver. Except as otherwise provided herein,
the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act
herein required to be performed by it, only if the Company has obtained the written consent of the Holder.

 

    	8

    	 

    

  

Section
13.          Descriptive Headings; Governing Law. The descriptive headings
of the several sections and paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this
Warrant. The corporate laws of the State of Nevada shall govern all issues concerning the relative rights of the Company and its
stockholders. All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be governed by the internal laws of the State of Nevada without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of Nevada or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of Nevada. Each party hereby irrevocably submits to the exclusive jurisdiction of the state courts sitting
in Clark County, Nevada and the United States District Court for the District of Nevada for the adjudication of any dispute hereunder
or in connection herewith or therewith, or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action
or proceeding is improper. Nothing herein shall limit or impair the Holder’s ability to enforce this Warrant in any other
jurisdiction. Each party hereby irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Warrant and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law.

 

Section
14.          Waiver of Jury Trial. AS A MATERIAL INDUCEMENT FOR EACH
PARTY HERETO TO ENTER INTO THIS WARRANT, THE PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED
IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH THIS TRANSACTION.

 

[Signatures
on the following page]

 

    	9

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed as of the date first set forth above.

 

	 	WOWIO, INC.
	 	 
	 	By:	/s/
    Brian K. Altounian
	 	Name: 	Brian
    K. Altounian
	 	Title:	Chief
    Executive Officer

 

    	10

    	 

    

 

EXHIBIT
A TO WARRANT

 

EXERCISE
NOTICE

 

TO
BE EXECUTED 

BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

 

WOWIO,
INC.

 

The
undersigned holder hereby exercises the right to purchase___________ of the shares of Common Stock (“Warrant Shares”)
of WOWIO, Inc., a Texas corporation (the “Company”), evidenced by the attached Warrant (the “Warrant”).
Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.          Payment
of Warrant Exercise Price. The holder herewith pays the sum of $_______ to the Company in accordance with the terms of the
Warrant.

 

2.          Delivery
of Warrant Shares. The Company shall deliver to the holder ______ Warrant Shares in accordance with the terms of the Warrant.

 

	Date:	___________ __, ____
	 	 
	Name of Registered Holder
	 	 
	By:	 	 
	Name: 	 	 
	Title:	 	 

 

    	A-1STANDARD
OFFICE LEASE

 

BY
AND BETWEEN

 

CARRILLO
FOSTER LLC,

a Delaware
limited liability company,

 

AS
LANDLORD,

 

 

AND

 

 

WOWIO,
INC., 

a Texas
corporation

 

AS
TENANT

 

 

 

 

SUITE
240,

 

6310 San
Vicente Boulevard, Los Angeles, CA 90048

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	 	PAGES
	ARTICLE 1	Basic Lease Provisions	 	1
	 	 	 	 
	ARTICLE 2	Term / Premises	 	2
	 	(a)   	Term	 	2
	 	(b)  	Premises	 	3
	 	 	 	 
	ARTICLE 3	Rental	 	3
	 	(a)	Basic Rental	 	3
	 	(b)   	Increase in Direct Costs	 	3
	 	(c)   	Definitions	 	4
	 	(d)  	Determination of Payment	 	5
	 	(e)   	Audit Right	 	6
	 	(f)   	Rent Concesssions; Free Basic Rental	 	6
	 	 	 	 
	ARTICLE 4	Security Deposit	 	7
	 	 	 	 
	ARTICLE 5	Holding Over	 	7
	 	 	 	 
	ARTICLE 6	Other Taxes	 	8
	 	 	 	 
	ARTICLE 7	Use	 	8
	 	 	 	 
	ARTICLE 8	Condition of Premises	 	9
	 	 	 	 
	ARTICLE 9	Repairs and Alterations	 	9
	 	(a)	Landlord’s Obligation	 	9
	 	(b)	Tenant’s Obligation	 	9
	 	(c)   	Alterations	 	9
	 	(d)	Insurance Liens	 	10
	 	(e)	Costs and Fees; Removal	 	10
	 	 	 	 
	ARTICLE 10	Liens	 	10
	 	 	 	 
	ARTICLE 11	Project Services	 	11
	 	(a)   	Basic Services	 	11
	 	(b)   	Excess Usage	 	11
	 	(c)	Additional Electrical Services	 	11
	 	(d)	HVAC Balance	 	11
	 	(e)   	Telecommunications	 	12
	 	(f) 	After-Hours Use	 	12
	 	(g)	Reasonable Charges	 	12
	 	(h)   	Sole Electrical Representative	 	12
	 	 	 	 
	ARTICLE 12	Rights of Landlord	 	13
	 	(a)   	Right of Entry	 	13
	 	(b)   	Maintenance Work	 	13
	 	(c)   	Rooftop	 	13
	 	 	 	 
	ARTICLE 13	Indemnity; Exemption of Landlord from Liability	 	13
	 	(a)   	Indemnity	 	13
	 	(b)	Exemption of Landlord from Liability	 	14
	 	(c)	Security	 	14
	 	 	 	 
	ARTICLE 14	Insurance	 	14
	 	(a)	Tenant’s Insurance	 	14

	 	(b)  	Form of Policies	 	15
	 	(c)   	Landlord’s Insurance	 	15
	 	(d)	Waiver of Subrogation	 	15
	 	(e)   	Compliance with Law	 	15
	 	 	 	 
	ARTICLE 15	Assignment and Subletting	 	16

 

    	 

    	 

    

 

	ARTICLE
    16	Damage
    or Destruction	 	18
	 	 	 	 
	ARTICLE
    17	Subordination	 	18
	 	 	 	 
	ARTICLE
    18	Eminent
    Domain	 	19
	 	 	 	 
	ARTICLE
    19	Default	 	19
	 	 	 	 
	ARTICLE
    20	Remedies	 	20
	 	 	 	 
	ARTICLE
    21	Transfer
    of Landlord’s Interest	 	22
	 	 	 	 
	ARTICLE
    22	Broker	 	22
	 	 	 	 
	ARTICLE
    23	Parking	 	22
	 	 	 	 
	ARTICLE
    24	Waiver	 	23
	 	 	 	 
	ARTICLE
    25	Estoppel Certificate	 	23
	 	 	 	 
	ARTICLE
    26	Liability
    Of Landlord	 	24
	 	 	 	 
	ARTICLE
    27	Inability To Perform	 	24
	 	 	 	 
	ARTICLE
    28	Hazardous Waste	 	24
	 	 	 	 
	ARTICLE
    30	Miscellaneous	 	27
	 	(a)   	Severability;
    Entire Agreement	 	27
	 	(b)   	Attorneys’
    Fees; Waiver of Jury Trial	 	27
	 	(c)	Waivers	 	28
	 	(d)   	Time
    of Essence	 	29
	 	(e)	Headings;
    Joint and Several	 	30
	 	(f)	Reserved
    Area	 	30
	 	(g)	No
    Option	 	30
	 	(h)	Use
    of Project Name: Improvements	 	30
	 	(i)	Rules and Regulations	 	30
	 	(j)	Quiet Possession	 	30
	 	(k)	Rent	 	30
	 	(l)	Successors
    and Assigns	 	30
	 	(m)  	Notices	 	30
	 	(n)   	Persistent Delinquencies	 	31
	 	(o)   	Right of Landlord to Perform	 	31
	 	(p)   	Access,
    Changes in Project, Facilities, Name	 	31
	 	(q)   	Signing
    Authority	 	31
	 	(r)   	Identification
    of Tenant	 	32
	 	(s)  	Substitute Premises	 	32
	 	(t)   	Survival of Obligations	 	33
	 	(u)  	Confidentiality	 	33
	 	(w)  	Office of Foreign Assets Control	 	33
	 	(x)	Financial Statements	 	33
	 	(y)   	Exhibits	 	33
	 	(z)	Independent
    Covenants	 	33
	 	(aa) 	Counterparts	 	33
	 	(ab)  	Non-Discrimination	 	33
	 	 	 	 
	ARTICLE 31	Option
    to Extend	 	34
	 	(a)   	Option
    Right	 	34
	 	(b)	Option
    Rent	 	34
	 	(c)	Exercise
    of Option	 	34
	 	 	 	 
	ARTICLE
    32	Signage
    Directory	 	35
	 	 	 	 
	ARTICLE
    33	Asbestos
    Disclosures	 	35

 

    	 

    	 

    

 

	Exhibit
    “A”	Premises
	Exhibit
    “B”	Rules
    and Regulations
	Exhibit
    “C”	Notice
    of Lease Term Dates and Tenant’s Proportionate Share
	Exhibit
    “D”	Exclusions
    to Operating Costs

 

    	 

    	 

    

 

INDEX OF CERTAIN DEFINED TERMS

 

	DEFINED
    TERMS	 	PAGE
	 	 	 
	ACMs	 	36
	Additional
    Rent	 	5
	Alterations	 	11
	Base
    Year	 	2,
    5
	Basic
    Rental	 	1
	Brokers	 	2
	CCP	 	29
	Claim	 	29
	Commencement
    Date	 	 1
	Court	 	29
	Development	 	7
	Direct
    Costs	 	5
	Dispute
    Notice	 	8
	Estimate	 	7
	Estimate
    Statement	 	7
	Estimated
    Excess	 	7
	Estoppel
    Certificate	 	24
	Event
    of Default	 	20
	Excepted
    Claim	 	29
	Excess	 	7
	Expiration
    Date	 	1
	First
    Month’s Rent	 	2
	Force
    Majeure	 	25
	Generator	 	27
	Hazardous
    Material	 	26
	Improvement
    to the Premises	 	.4
	Interest
    Notice	 	35
	Landlord	 	1
	Landlord
    Parties	 	14
	Landlord’s
    Recapture Costs	 	18
	Landlord’s
    Recapture Notice	 	18
	Laws	 	26
	Lease	 	1
	Lease
    Year	 	4
	Market
    Rent	 	35
	Operating
    Costs	 	6
	Option	 	35
	Option
    Rent	 	35
	Option
    Rent Notice	 	35
	Option
    Term	 	35
	Option
    Term Extension	 	1
	Original
    Tenant	 	35
	Parking
    Passes	 	2
	Partnership
    Tenant	 	33
	Permitted
    Use	 	2
	Premises	 	1
	Producer	 	27
	Project	 	1
	Real
    Property	 	5
	Recapture
    Space	 	18
	Rental	 	5
	Review
    Period	 	7,
    8
	Rules
    and Regulations	 	31
	Security
    Deposit	 	2
	Space
    Plan	 	4
	Square
    Footage	 	1
	Statement	 	7
	Substantial
    Completion	 	4
	Tax
    Costs	 	5
	Temporary
    Premises	 	3
	Tenant	 	1
	Tenant
    Improvements	 	4
	Tenant’s
    Acceptance	 	35
	Tenant’s
    Proportionate Share	 	2
	Tenant’s
    Signage	 	36

  

    	 

    	 

    
 

	Term	 	1
	Transfer	 	18
	Transfer
    Premium	 	18
	Transferee	 	18
	Universal
    Waste	 	27

 

    	 

    	 

    
 

STANDARD
OFFICE LEASE

 

This
Standard Office Lease (“Lease”) is made and entered into as of this 23 day of April, 2012 (the “Effective
Date”), by and between CARRILLO FOSTER LLC, a Delaware limited liability company (“Landlord”), and
WOWIO, INC., a Texas corporation (“Tenant”).

 

Tenant
hereby leases from Landlord the premises described as Suite No. 240, as designated on the plan attached hereto and incorporated
herein as Exhibit “A” (“Premises”), located on the second (2nd) floor of the
building (“Building”) at the project (“Project”) whose address is 6310 San Vicente
Boulevard, Los Angeles, California, for the Term and upon the terms and conditions hereinafter set forth, and Landlord and Tenant
hereby agree as follows:

 

ARTICLE
1

 

BASIC
LEASE PROVISIONS

 

	A.	“Term”:	Thirty-nine
    (39) months.
	 	 	 
	 	“Commencement
    Date”:	The
    date of Substantial Completion of Tenant Improvements in the Premises.
	 	 	 
	 	“Expiration
    Date”:	The
    date immediately preceding the day that is thirty-nine (39) months from the Commencement Date, unless extended or earlier
    terminated pursuant to this Lease.
	 	 	 
	 	Option
    Term Extension:	One
    (1) option to extend the initial Term for the entire Premises for a period of five (5) years, subject to the terms of Article
    31 below.
	 	 	 
	B.	Square
    Footage:	Approximately
    4,171 rentable square feet.
	 	 	 
	C.	Basic
    Rental	 

 

	 	 	 	Annual	 	 	Monthly	 	 	Monthly Basic Rental	 
	Initial Term	 	 	Basic Rental	 	 	Basic Rental	 	 	Per Rentable Square Foot	 
	1	 	 	$	107,611.80	*	 	$	8,967.65	 	 	$	2.15	 
	(Months 1-12)	 	 	 	 	 	 	 	 	 	 	 	 	 
	2	 	 	$	110,614.92	*	 	$	9,217.91	 	 	$	2.21	 
	(Months 13-24)	 	 	 	 	 	 	 	 	 	 	 	 	 
	3	 	 	$	114,118.56	 	 	$	9,509.88	 	 	$	2.28	 
	(Months 25-36)	 	 	 	 	 	 	 	 	 	 	 	 	 
	4	 	 	$	117,622.20	 	 	$	9,801.85	 	 	$	2.35	 
	(Months 37-39)	 	 	 	 	 	 	 	 	 	 	 	 	 

 

	D.	Base
    Year:	2013
	 	 	 
	E.	Tenant’s
    Proportionate Share:	4.1%
	 	 	 
	F.	“Security
    Deposit”:	A
    security deposit of $29,405.55 shall be due and payable by Tenant to Landlord upon Tenant’s execution of this Lease,
    which security deposit shall be subject to reduction pursuant to Section 4(b) below.
	 	 	 
	G.	“Permitted
    Use”:	General
    office use consistent with the character of the Project as a first class office project.

 

 *
Subject to Section 3(f) herein.

 

    	1

    	 

    
 

	H.	Brokers:	Madison
    Partners - Landlord Coldwell Banker Commercial Westmac - Tenant
	 	 	 
	I.	Parking
    Passes:	During
    the Term, Tenant shall have the right to rent twelve (12) unreserved parking passes, with the right to convert up to two (2)
    such unreserved parking passes to reserved parking spaces, all upon the terms and conditions and at the rates provided in
    Article 23 hereof.
	 	 	 
	J..	Initial
    Installment of Basic Rental:	The
    first full month’s Basic Rental of $8,967.65 shall be due and payable by Tenant to Landlord upon Tenant’s execution
    of this Lease.
	 	 	 
	L.	Improvements
    to the Premises:	Landlord
    shall, at Landlord’s sole cost and expense, using Building standard methods, materials, and finishes, cause the following
    work (the “Landlord Work”) to be performed in the Premises: (i) recarpeting of the carpeted floors of the
    Premises, with Building standard carpet, in a Building standard color, to be selected by Tenant upon request from Landlord,
    subject to availability; and (ii) repainting of the painted walls of the Premises using one (1) coat of Building standard
    paint, in a Building standard color selected by Tenant upon demand by Landlord, subject to availability.
	 	 	 
	 	 	The
    existing leasehold improvements, as modified by the Landlord Work, may be collectively referred
    to herein as the “Tenant Improvements”. For purposes of this Lease, “Substantial Completion”
    of the Landlord Work shall occur upon the completion of the Landlord Work, with the exception of any punch list items
    and any tenant fixtures, work-stations, built-in furniture, or equipment to be installed by Tenant.
	 	 	 
	 	 	Except
    as specifically set forth in this Lease, Tenant hereby agrees to accept the Premises in its “as-is” condition
    and Tenant hereby acknowledges that Landlord shall not be obligated to provide or pay for any improvement work or services
    related to the improvement of the Premises. Tenant also acknowledges that Landlord has made no representation or warranty
    regarding the condition of the Premises. Notwithstanding the foregoing, Landlord covenants that on the Commencement Date,
    the heating, ventilating and air-conditioning, mechanical, and electrical systems serving the Premises shall be in good working
    order, and the components of the fire, life safety, and sprinkler systems located in the Premises shall be in compliance with
    applicable laws.

 

ARTICLE
2

 

TERM/PREMISES

 

(a)    Term.
The provisions of this Lease shall be effective as of the date of this Lease. The Term of this Lease shall commence on the Commencement
Date as set forth in Article l.A. of the Basic Lease Provisions and shall end on the Expiration Date set forth in Article
l.A. of the

  

    	2

    	 

    
 

Basic
Lease Provisions. For purposes of this Lease, the term “Lease Year” shall mean each consecutive twelve (12)
month period during the Term, with the first Lease Year commencing on the Commencement Date; provided, however, (a) if
the Commencement Date falls on a day other than the first day of a calendar month, the first Lease Year shall end on the
last day of the eleventh (11th) month after the Commencement Date and the second (2nd) and each succeeding Lease Year shall commence
on the first day of the next calendar month, and (b) the last Lease Year shall end on the Expiration Date.

 

(b)    Premises.
Landlord and Tenant hereby stipulate that the Premises contains the number of rentable square feet specified in Article l.B.
of the Basic Lease Provisions, except that the rentable square feet of the Premises is subject to verification from time to
time by Landlord’s architect/space planner. If Landlord’s architect/space planner determines that the rentable square
footage of the Premises is less than the amount set forth in Article LB. above, then all amounts, percentages and figures
appearing or referred to in this Lease based upon such incorrect amount (including, without limitation, the amount of the Basic
Rental and Tenant’s Proportionate Share) shall be modified in accordance with such determination, provided that if the rentable
square footage of the Premises is found to be greater than the amount set forth in Article l.B. above, the amount of Rental
payable by Tenant under this Lease shall not be increased to reflect such additional square footage. If such determination is
made, it will be confirmed in writing by Landlord to Tenant. Landlord may deliver to Tenant a Commencement Letter in a form substantially
similar to that attached hereto as Exhibit “C\ which Tenant shall execute and return to Landlord within five (5)
days of receipt thereof. Failure of Tenant to timely execute and deliver the Commencement Letter shall constitute an acknowledgment
by Tenant that the statements included in such notice are true and correct, without exception.

 

ARTICLE 3

 

RENTAL

 

(a)    Basic
Rental. Tenant agrees to pay to Landlord during the Term, at Landlord’s office or to such other person or at such other
place as directed from time to time by written notice to Tenant from Landlord, the monthly and annual sums as set forth in Article
l.C. of the Basic Lease Provisions, payable in advance, on or before the first day of each calendar month, without any prior
demand, abatement, setoff or deduction, and in the event this Lease commences or the date of expiration of this Lease occurs other
than on the first day or last day of a calendar month, the rent for such month shall be prorated. Notwithstanding the foregoing,
the first full month’s Basic

 

Rental
shall be paid to Landlord in accordance with Article l.J. of the Basic Lease Provisions, and, if the Commencement Date
is not the first day of a month, Basic Rental for the partial month commencing as of the Commencement Date shall be prorated based
upon the actual number of days in such month and shall be due and payable upon the Commencement Date. Any and all amounts due
and payable by Tenant pursuant to this Lease (other than Basic Rental and the Security Deposit) shall be deemed “Additional
Rent” and Landlord shall be entitled to exercise the same rights and remedies upon default in these payments as Landlord
is entitled to exercise with respect to defaults in monthly Basic Rental payments. Basic Rental and Additional Rental are sometimes
herein collectively referred to as “Rental”. All Rental payments shall be in United States dollars, either
in the form of a check or by electronically transmitted funds. If any noncash payment made by Tenant is not paid by the bank or
other institution on which it is drawn, Landlord shall have the right, exercised by notice to Tenant, to require that Tenant make
all future payments by certified funds or cashier’s check.

 

(b)    Increase
in Direct Costs. The term “Base Year” means the calendar year set forth in Article l.D. of the Basic
Lease Provisions. If, in any calendar year during the Term of this Lease, the “Direct Costs” (as hereinafter defined)
paid or incurred by Landlord shall be higher than the Direct Costs for the Base Year, Tenant shall pay an additional sum for each
such subsequent calendar year equal to the product of Tenant’s Proportionate Share set forth in Article I.E. of the
Basic Lease Provisions multiplied by such increased amount of Direct Costs. In the event the Premises is expanded or reduced,
then Tenant’s Proportionate Share shall be appropriately adjusted, and as to the calendar year in which such change occurs,
Tenant’s Proportionate Share for such calendar year shall be determined on the basis of the number of days during that particular
calendar year that such Tenant’s Proportionate Share was in effect. In the event this Lease shall terminate on any date
other than the last day of a calendar year, the additional sum payable hereunder by Tenant during the calendar year in which this
Lease terminates shall be prorated on the basis of the relationship which the number of days which have elapsed from the commencement
of said calendar year to and including said date on which this Lease terminates bears to three hundred sixty five (365).

 

    	3

    	 

    
 

(c)    Definitions.
As used herein the term “Direct Costs” shall mean the sum of the following:

 

(i)    “Tax
Costs”, which shall mean any and all real estate taxes and other similar charges on real property or improvements, assessments,
water and sewer charges, and all other charges assessed, reassessed or levied upon the Project and appurtenances thereto and the
parking or other facilities thereof, or the real property thereunder (collectively, the “Real Property”) or
attributable thereto or on the rents, issues, profits or income received or derived therefrom which are assessed, reassessed or
levied by the United States, the State of California or any local government authority or agency or any political subdivision
thereof, and shall include Landlord’s reasonable legal fees, costs and disbursements incurred in connection with proceedings
for reduction of Tax Costs or any part thereof; provided, however, if at any time after the date of this Lease the methods
of taxation now prevailing shall be altered so that in lieu of or as a supplement to or a substitute for the whole or any part
of any Tax Costs, there shall be assessed, reassessed or levied (a) a tax, assessment, reassessment, levy, imposition or charge
wholly or partially as a net income, capital or franchise levy or otherwise on the rents, issues, profits or income derived therefrom,
or (b) a tax, assessment, reassessment, levy (including but not limited to any municipal, state or federal levy), imposition or
charge measured by or based in whole or in part upon the Real Property and imposed upon Landlord, then except to the extent such
items are payable by Tenant under Article 6 below, such taxes, assessments, reassessments or levies or the part thereof
so measured or based, shall be deemed to be included in the term “Direct Costs.” In no event shall Tax Costs included
in Direct Costs for any year subsequent to the Base Year be less than the amount of Tax Costs included in Direct Costs for the
Base Year. In addition, when calculating Tax Costs for the Base Year, special assessments shall only be deemed included in Tax
Costs for the Base Year to the extent that such special assessments are included in Tax Costs for the applicable subsequent calendar
year during the Term.

 

(ii)    “Operating
Costs”, expressly subject to the exclusions set forth on Exhibit “D” hereto and incorporated herein by this
reference, shall mean all costs and expenses paid or incurred by Landlord in connection with the maintenance, operation, replacement,
ownership and repair of the Project, the equipment, the intrabuilding cabling and wiring, adjacent walks, malls and landscaped
and common areas and the parking structure, areas and facilities of the Project. Subject to the exclusions set forth on Exhibit
“D” hereto, Operating Costs shall include but not be limited to, salaries, wages, medical, surgical and general welfare
benefits and pension payments, payroll taxes, fringe benefits, employment taxes, workers’ compensation, uniforms and dry
cleaning thereof for all persons who perform duties connected with the operation, maintenance and repair of the Project, its equipment,
the intrabuilding cabling and wiring and the adjacent walks and landscaped areas, including janitorial, gardening, security, parking,
operating engineer, elevator, painting, plumbing, electrical, carpentry, heating, ventilation, air conditioning and window washing;
hired services; a reasonable allowance for depreciation of the cost of acquiring or the rental expense of personal property used
in the maintenance, operation and repair of the Project; accountant’s fees incurred in the preparation of rent adjustment
statements (including, without limitation, bookkeeping and other property accounting costs); legal fees; real estate tax consulting
fees; personal property taxes on property used in the maintenance and operation of the Project; fees, costs, expenses or dues
payable pursuant to the terms of any covenants, conditions or restrictions or owners’ association pertaining to the Project;
capital expenditures incurred to effect economies of operation of, or stability of services to, the Project or otherwise incurred
in order to enhance or upgrade the safety, security, fire/life/safety or other operating systems of the Project, and capital expenditures
required by government regulations, laws, or ordinances including, without limitation, the Americans with Disabilities Act; provided,
however, that any such permitted capital expenditure shall be amortized (with interest at ten percent (10%) per annum)
over its useful life and only the amortized portion (together with accrued interest thereon) shall be included in Operating Costs
for such year; costs incurred (capital or otherwise) on a regular recurring basis every three (3) or more years for certain maintenance
projects (e.g., parking lot slurry coat or replacement of lobby and elevator cab carpeting); the cost of all charges for electricity,
gas, water and other utilities furnished to the Project, including any taxes thereon; the cost of all charges for fire and extended
coverage, liability and all other insurance in connection with the Project carried by Landlord; the

 

    	4

    	 

    
 

cost
of all building and cleaning supplies and materials; the cost of all charges for cleaning, maintenance and service contracts and
other services with independent contractors and administration fees; a property management fee (which fee may be imputed if Landlord
has internalized management or otherwise acts as its own property manager) and license, permit and inspection fees relating to
the Project. In the event, during any calendar year, the Project is less than ninety-five percent (95%) occupied at all times,
Operating Costs shall be adjusted to reflect the Operating Costs of the Project as though ninety-five percent (95%) were occupied
at all times, and the increase or decrease in the sums owed hereunder shall be based upon such Operating Costs as so adjusted.
In no event shall costs for any item of utilities included in Direct Costs for any year subsequent to the Base Year be less than
the amount included in Direct Costs for the Base Year for such utility item.

 

Notwithstanding
anything to the contrary set forth in this Article 3, when calculating Operating Costs for the Base Year, Operating Costs
shall exclude (a) increases due to extraordinary circumstances including, but not limited to, labor-related boycotts and strikes,
utility rate hikes, utility conservation surcharges, or other surcharges, insurance premiums resulting from terrorism coverage,
catastrophic events and/or the management of environmental risks, and (b) amortization of any capital items including, but not
limited to, capital improvements, capital repairs and capital replacements (including such amortized costs where the actual improvement,
repair or replacement was made in prior years). Furthermore, if a category or categories of services are provided or an unexpected
increase in services are provided by Landlord in the Base Year, but not in “subsequent” calendar year(s), the Base
Year shall be retroactively adjusted to reflect the Direct Costs which would have been incurred during the Base Year had such
category or categories of services or unexpected increase in services not been provided during the Base Year.

 

(d)    
Determination of Payment.

 

(i)    
If for any calendar year ending or commencing within the Term, Tenant’s Proportionate Share of Direct Costs for such calendar
year exceeds Tenant’s Proportionate Share of Direct Costs for the Base Year, then Tenant shall pay to Landlord, in the manner
set forth in Sections 3(d)(ii) and (iii), below, and as Additional Rent, an amount equal to the excess (the “Excess”).

 

(ii)    
Landlord shall give Tenant a yearly expense estimate statement (the “Estimate Statement”) which shall set forth
Landlord’s reasonable estimate (the “Estimate”) of what the total amount of Direct Costs for the
then-current calendar year shall be and the estimated Excess (the “Estimated Excess”) as calculated by comparing
Tenant’s Proportionate Share of Direct Costs for such calendar year, which shall be based upon the Estimate, to Tenant’s
Proportionate Share of Direct Costs for the Base Year. The failure of Landlord to timely furnish the Estimate Statement for any
calendar year shall not preclude Landlord from subsequently enforcing its rights to collect any Estimated Excess under this Article
3, once such Estimated Excess has been determined by Landlord. If pursuant to the Estimate Statement an Estimated Excess is
calculated for the then-current calendar year, Tenant shall pay, with its next installment of Monthly Basic Rental due, a fraction
of the Estimated Excess for the then-current calendar year (reduced by any amounts paid pursuant to the last sentence of this
Section 3(d)(ii)). Such fraction shall have as its numerator the number of months which have elapsed in such current calendar
year to the month of such payment, both months inclusive, and shall have twelve (12) as its denominator. Until a new Estimate
Statement is furnished, Tenant shall pay monthly, with the Monthly Basic Rental installments, an amount equal to one-twelfth (1/12)
of the total Estimated Excess set forth in the previous Estimate Statement delivered by Landlord to Tenant.

 

(iii)    In
addition, Landlord shall endeavor to give to Tenant as soon as reasonably practicable following the end of each calendar year,
a statement (the “Statement”) which shall state the Direct Costs incurred or accrued for such preceding calendar
year, and which shall indicate the amount, if any, of the Excess. Upon receipt of the Statement for each calendar year during
the Term, if amounts paid by Tenant as Estimated Excess are less than the actual Excess as specified on the Statement, Tenant
shall pay the full amount of the Excess for such calendar year, less the amounts, if any> paid during such calendar year as
Estimated Excess (the “Difference”), which Difference shall be paid in two (2) equal installments concurrently
with the next two (2) installments of monthly Basic Rental. If, however, the Statement indicates that amounts paid by Tenant as
Estimated Excess are greater than the actual Excess as specified on the Statement, such overpayment shall be credited against
Tenant’s next installments of

 

    	5

    	 

    
 

Estimated
Excess. The failure of Landlord to timely furnish the Statement for any calendar year shall not prejudice Landlord from enforcing
its rights under this Article 3, once such Statement has been delivered. Even though the Term has expired or been terminated
and Tenant has vacated the Premises, when the final determination is made of Tenant’s Proportionate Share of the Direct
Costs for the calendar year in which this Lease terminates, if an Excess is present, Tenant shall immediately pay to Landlord
an amount as calculated pursuant to the provisions of this Section 3(d). The provisions of this Section 3(d)(iii)
shall survive the expiration or earlier termination of the Term.

 

(iv)    If
the Project is a part of a multi-building development (the “Development”), those Direct Costs attributable
to such development as a whole (and not attributable solely to any individual building therein) shall be allocated by Landlord
to the Project and to the other buildings within the Development on an equitable basis, as reasonably determined by Landlord.

 

(e)    Audit
Right.

 

Within
seventy-five (75) days after receipt of a Statement by Tenant (“Review Period”), if Tenant disputes the amount
set forth in the Statement, Tenant’s employees or an independent certified public accountant (which accountant is a member
of a nationally or regionally recognized accounting firm and is not retained on a contingency fee basis), designated by Tenant,
may, after reasonable notice to Landlord (“Review Notice”) and at reasonable times, inspect Landlord’s
records at Landlord’s offices, provided that Tenant is not then in default under this Lease and provided further that Tenant
and such accountant or representative shall, and each of them shall cause their respective agents and employees to, maintain all
information contained in Landlord’s records in strict confidence. Notwithstanding the foregoing, Tenant shall only have
the right to review Landlord’s records one (1) time during any twelve (12) month period. If after such inspection, but no
later than forty-five (45) days after the Review Period, Tenant notifies Landlord in writing (“Dispute Notice”)
that Tenant still disputes such amounts, a certification as to the proper amount shall be made in accordance with Landlord’s
standard accounting practices, at Tenant’s expense, by an independent certified public accountant selected by Landlord and
who is a member of a nationally or regionally recognized accounting firm. Tenant’s failure to deliver the Review Notice
within the Review Period or to deliver the Dispute Notice within forty-five (45) days after the Review Period shall be deemed
to constitute Tenant’s approval of such Statement and Tenant, thereafter, waives the right or ability to dispute the amounts
set forth in such Statement. If Tenant timely delivers the Review Notice and the Dispute Notice, Landlord shall cooperate in good
faith with Tenant and the accountant to show Tenant and the accountant the information upon which the certification is to be based.
However, if such certification by the accountant proves that the Direct Costs charged to Tenant, as set forth in the Statement
were overstated by more than ten percent (10%), then the cost of the accountant and the cost of such certification shall be paid
for by Landlord, provided that in no event shall Landlord be responsible for costs hereunder in excess of the amount of such overstatement.
Promptly following the parties receipt of such certification, the parties shall make such appropriate payments or reimbursements,
as the case may be, to each other, as are determined to be owing pursuant to such certification. Tenant agrees that this section
shall be the sole method to be used by Tenant to dispute the amount of any Direct Costs payable by Tenant pursuant to the terms
of this Lease, and Tenant hereby waives any other rights at law or in equity relating thereto.

 

(f)    Rent
Concessions; Free Basic Rental. Notwithstanding Section 3(a) above, as a concession to Tenant and only if Tenant is
not in default under this Lease, Tenant shall not have to pay the Basic Rental for the second, third and thirteenth full calendar
months of the initial Term (collectively, the “Abated Base Rent”). If Tenant shall be in default under this
Lease, or if this Lease is terminated for any reason other than Landlord’s breach of this Lease, then Landlord may elect,
in Landlord’s sole option that (i) the dollar amount of the unapplied portion of the Abated Base Rent as of the date of
such default or termination, as the case may be, shall be converted to a credit to be applied to the Base Rent applicable at the
end of Lease Term and Tenant shall immediately be obligated to begin paying Basic Rental for the Premises in full, or (ii) all
Abated Base Rent shall become due and payable within thirty (30) days from the date Landlord notifies Tenant that it has elected
this item (ii), together with interest on such amounts as provided in Section 20(e) of this Lease from the date such Basic
Rental would have otherwise been due but for the Abated Base Rent provided herein. The payment by Tenant of the Abated Base Rent
in the event of an Event of Default shall not limit or affect any of Landlord’s other rights, pursuant to this Lease or
at law or in equity.

 

    	6

    	 

    
 

ARTICLE
4

 

SECURITY
DEPOSIT

 

(a)    In
General. Tenant has deposited or concurrently herewith is depositing with Landlord the sum set forth in Article l.F.
of the Basic Lease Provisions as security for the full and faithful performance of every provision of this Lease to be performed
by Tenant. If Tenant breaches any provision of this Lease, including but not limited to the payment of rent, Landlord may use
all or any part of the Security Deposit for the payment of any rent or any other sums in default, or to compensate Landlord for
any other loss or damage which Landlord may suffer by reason of Tenant’s default. If any portion of said deposit is so used
or applied, Tenant shall, within fifteen (15) days after written demand therefor, deposit cash with Landlord in an amount sufficient
to restore the Security Deposit to its full amount. During any renewal or extension of the Term, the amount of the Security Deposit
required to be maintained by Tenant shall be increased so as to maintain, at all times and from time to time, the same ratio to
monthly Basic Rental as applicable on the Commencement Date. Tenant agrees that Landlord shall not be required to keep the Security
Deposit in trust, segregate it or keep it separate from Landlord’s general funds, but Landlord may commingle the Security
Deposit with its general funds and Tenant shall not be entitled to interest on the Security Deposit. At the expiration of the
Term, and provided there exists no default by Tenant hereunder, the Security Deposit or any balance thereof shall be returned
to Tenant (or, at Landlord’s option, to Tenant’s “Transferee,” as such term is defined in Article 15
below), provided that subsequent to the expiration of this Lease, Landlord may retain from said Security Deposit (i) an amount
reasonably estimated by Landlord to cover potential Direct Cost reconciliation payments due with respect to the calendar year
in which this Lease terminates or expires (such amount so retained shall not, in any event, exceed ten percent (10%) of estimated
Direct Cost payments due from Tenant for such calendar year through the date of expiration or earlier termination of this Lease
and any amounts so retained and not applied to such reconciliation shall be returned to Tenant within thirty (30) days after Landlord’s
delivery of the Statement for such calendar year), (ii) any and all amounts reasonably estimated by Landlord to cover the anticipated
costs to be incurred by Landlord to remove any signage provided to Tenant under this Lease, to remove cabling and other items
required to be removed by Tenant under Section 29(b) below and to repair any damage caused by such removal (in which case
any excess amount so retained by Landlord shall be returned to Tenant within thirty (30) days after such removal and repair),
and (iii) any and all amounts permitted by law or this Article 4. Tenant hereby waives the provisions of Section 1950.7
of the California Civil Code and all other provisions of law, now or hereafter in effect, which provide that Landlord may claim
from a Security Deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused
by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums specified in this Article
4 above, and all of Landlord’s damages under this Lease and California law including but not limited to any damages
accruing upon termination of this Lease under Section 1951.2 of the California Civil Code and/or those sums reasonably necessary
to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the acts or omissions of Tenant or
any officer, employee, agent, contractor or invitee of Tenant.

 

(b)    Reduction
of Security Deposit. Notwithstanding any provision to the contrary contained in this Article 4 above, if Tenant conducts
an initial offering of its stock on a public stock exchange, and Tenant is not then in default under this Lease, then the Security
Deposit shall be reduced by an amount equal to $9,801.85. If the foregoing conditions have been satisfied, Landlord shall return
such amount to Tenant promptly after Landlord receives written notice from Tenant that such initial public offering has occurred.

 

ARTICLE
5

 

HOLDING
OVER

 

Should
Tenant, without Landlord’s written consent, hold over after termination of this Lease, Tenant shall, at Landlord’s
option, become either a tenant at sufferance or a month-to-month tenant upon each and all of the terms herein provided as may
be applicable to such a tenancy and any such holding over shall not constitute an extension of this Lease. During such holding
over, Tenant shall pay in advance, monthly, Basic Rental at a rate equal to 150% of the rate in effect for the last month of the
Term of this Lease in addition to, and not in lieu of, all other payments required to be made by Tenant hereunder including but
not limited to Tenant’s

 

    	7

    	 

    

 

Proportionate
Share of any increase in Direct Costs. Nothing contained in this Article 5 shall be construed as consent by Landlord to
any holding over of the Premises by Tenant, and Landlord expressly reserves the right to require Tenant to surrender possession
of the Premises to Landlord as provided in this Lease upon the expiration or earlier termination of the Term. If Tenant
fails to surrender the Premises upon the expiration or termination of this Lease, Tenant agrees to (i) indemnify, defend and hold
Landlord harmless from all costs, loss, expense or liability, including without limitation, claims made by any succeeding tenant
and real estate brokers claims and attorney’s fees and costs, and (ii) compensate Landlord for all costs, losses, expenses
and/or liabilities incurred by Landlord as a result of such holdover, including without limitation, losses due to the loss of
a succeeding tenancy.

 

ARTICLE
6

 

OTHER
TAXES

 

Tenant
shall pay, prior to delinquency, all taxes assessed against or levied upon trade fixtures, furnishings, equipment and all other
personal property of Tenant located in the Premises. In the event any or all of Tenant’s trade fixtures, furnishings, equipment
and other personal property shall be assessed and taxed with property of Landlord, or if the cost or value of any leasehold improvements
in the Premises exceeds the cost or value of a Project-standard build-out as determined by Landlord and, as a result, real property
taxes for the Project are increased, Tenant shall pay to Landlord, within fifteen (15) days after delivery to Tenant by Landlord
of a written statement setting forth such amount, the amount of such taxes applicable to Tenant’s property or above-standard
improvements. Tenant shall assume and pay to Landlord at the time Basic Rental next becomes due (or if assessed after the expiration
of the Term, then within fifteen (15) days), any excise, sales, use, rent, occupancy, garage, parking, gross receipts or other
taxes (other than net income taxes) which may be assessed against or levied upon Landlord on account of the letting of the Premises
or the payment of Basic Rental or any other sums due or payable hereunder, and which Landlord may be required to pay or collect
under any law now in effect or hereafter enacted. In addition to Tenant’s obligation pursuant to the immediately preceding
sentence, Tenant shall pay directly to the party or entity entitled thereto all business license fees, gross receipts taxes and
similar taxes and impositions which may from time to time be assessed against or levied upon Tenant, as and when the same become
due and before delinquency. Notwithstanding anything to the contrary contained herein, any sums payable by Tenant under this Article
6 shall not be included in the computation of “Tax Costs.”

 

ARTICLE 7

 

USE

 

Tenant
shall use and occupy the Premises only for the use set forth in Article l.G. of the Basic Lease Provisions and shall not
use or occupy the Premises or permit the same to be used or occupied for any other purpose without the prior written consent of
Landlord, which consent may be given or withheld in Landlord’s sole and absolute discretion, and Tenant agrees that it will
use the Premises in such a manner so as not to interfere with or infringe upon the rights of other tenants or occupants in the
Project. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances, governmental regulations
or requirements now in force or which may hereafter be in force relating to or affecting (i) the condition, use or occupancy of
the Premises or the Project (excluding structural changes to the Project not related to Tenant’s particular use of the Premises),
and (ii) improvements installed or constructed in the Premises by or for the benefit of Tenant. Tenant shall not permit more than
ten (10) people (including visitors) per one thousand (1,000) rentable square feet of the Premises to occupy the Premises at any
time. Tenant shall not do or permit to be done anything which would invalidate or increase the cost of any fire and extended coverage
insurance policy covering the Project and the property located therein and Tenant shall comply with all rules, orders, regulations
and requirements of any organization which sets out standards, requirements or recommendations commonly referred to by major fire
insurance underwriters, and Tenant shall promptly upon demand reimburse Landlord for any additional premium charges for any such
insurance policy assessed or increased by reason of Tenant’s failure to comply with the provisions of this Article. In addition
to complying with other provisions of this Lease concerning the use of the Premises: (a) Tenant shall not use or allow any person
to use the Premises for any purpose that is contrary to the Rules and Regulations (as defined below), that violates any applicable
laws and orders, that constitutes waste or nuisance, or that would unreasonably annoy other occupants of the Project or the owners
or occupants of buildings adjacent to the Project; and (b) Tenant shall comply with all recorded covenants, conditions, and restrictions
that now or later affect the Real Property.

 

 

    	8

    	 

    
 

ARTICLE
8

 

CONDITION
OF PREMISES

 

Subject
to and except as expressly set forth in Article l.K. of the Basic Lease Provisions, Tenant hereby agrees that the Premises
shall be taken “as is”, “with all faults”, “without any representations or warranties”, and
Tenant hereby agrees and warrants that it has investigated and inspected the condition of the Premises and the suitability of
same for Tenant’s purposes, and Tenant does hereby waive and disclaim any objection to, cause of action based upon, or claim
that its obligations hereunder should be reduced or limited because of the condition of the Premises or the Project or the suitability
of same for Tenant’s purposes. Tenant acknowledges that neither Landlord nor any agent nor any employee of Landlord has
made any representation or warranty with respect to the Premises or the Project or with respect to the suitability of either for
the conduct of Tenant’s business and Tenant expressly warrants and represents that Tenant has relied solely on its own investigation
and inspection of the Premises and the Project in its decision to enter into this Lease and let the Premises in the above-described
condition. The taking of possession of the Premises by Tenant shall conclusively establish that the Premises and the Project were
at such time in satisfactory condition. Tenant hereby waives subsection 1 of Section 1932 and Sections 1941 and 1942 of the Civil
Code of California or any successor provision of law.

 

ARTICLE
9

 

REPAIRS
AND ALTERATIONS

 

(a)    Landlord’s
Obligation. Landlord shall (i) maintain the structural portions of the Project, and (ii) maintain and repair the basic mechanical,
electrical, life safety, plumbing, sprinkler systems and heating, ventilating and air-conditioning systems (provided, however,
that Tenant shall be responsible to repair and maintain such systems that are a package unit or separate system throughout the
Premises).

    
 

(b)    Tenant’s
Obligation. Except as expressly provided as Landlord’s obligation in this Article 9, Tenant shall keep the Premises
in good condition and repair. All damage or injury to the Premises or the Project resulting from the act or negligence of Tenant,
its employees, agents or visitors, guests, invitees or licensees, or by the use of the Premises, shall be promptly repaired by
Tenant at its sole cost and expense, to the satisfaction of Landlord; provided, however, that for damage to the Project
as a result of casualty or for any repairs that may impact the mechanical, electrical, plumbing, heating, ventilation or air-conditioning
systems of the Project, Landlord shall have the right (but not the obligation) to select the contractor and oversee all such repairs.
Landlord may make any repairs which are not promptly made by Tenant after Tenant’s receipt of written notice and the reasonable
opportunity of Tenant to make said repair within ten (10) days from receipt of said written notice, and charge Tenant for the
cost thereof, which cost shall be paid by Tenant within ten (10) days from invoice from Landlord. Tenant shall be responsible
for the design and function of all non-standard improvements of the Premises, whether or not installed by Landlord at Tenant’s
request. Tenant waives all rights to make repairs at the expense of Landlord, or to deduct the cost thereof from the rent.

 

(c)    Alterations.
Tenant shall make no alterations, installations, changes or additions in or to the Premises or the Project (collectively, “Alterations”)
without Landlord’s prior written consent. Any Alterations approved by Landlord must be performed in accordance with
the terms hereof, using only contractors or mechanics approved by Landlord in writing and upon the approval by Landlord in writing
of fully detailed and dimensioned plans and specifications pertaining to the Alterations in question, to be prepared and submitted
by Tenant at its sole cost and expense. Tenant shall at its sole cost and expense obtain all necessary approvals and permits pertaining
to any Alterations approved by Landlord. Tenant shall cause all Alterations to be performed in a good and workmanlike manner,
in conformance with all applicable federal, state, county and municipal laws, rules and regulations, pursuant to a valid building
permit, and in conformance with Landlord’s construction rules and regulations. If Landlord, in approving any Alterations,
specifies a commencement date therefor, Tenant shall not commence any work with respect
to such Alterations prior to such date. Tenant shall reimburse Landlord for the reasonable fees and costs of any architects, engineers,
or other consultants retained by Landlord to review the proposed Alterations. Tenant hereby agrees to indemnify, defend, and hold
Landlord free and harmless from all liens and claims of lien, and all other liability, claims and demands arising out of any work
done or material supplied to the Premises by or at the request of Tenant in connection with any Alterations.

 

    	9

    	 

    
 

(d)    Insurance;
Liens. Prior to the commencement of any Alterations, Tenant shall provide Landlord with evidence that Tenant carries “Builder’s
All Risk” insurance in an amount approved by Landlord covering the construction of such Alterations, and such other insurance
as Landlord may reasonably require, it being understood that all such Alterations shall be insured by Tenant pursuant to Article
14 of this Lease immediately upon completion thereof. In addition, Landlord may, in its discretion, require Tenant to obtain
a lien and completion bond or some alternate form of security satisfactory to Landlord in an amount sufficient to ensure the lien
free completion of such Alterations and naming Landlord as a co-obligee.

 

(e)    
Costs and Fees; Removal. If permitted Alterations are made, they shall be made at Tenant’s sole cost and expense
and shall be and become the property of Landlord, except that Landlord may, by written notice to Tenant given prior to the end
of the Term, require Tenant at Tenant’s expense to remove all partitions, counters, railings, cabling and other Alterations
installed by Tenant, and to repair any damage to the Premises and the Project caused by such removal. Any and all costs attributable
to or related to the applicable building codes of the city in which the Project is located (or any other authority having jurisdiction
over the Project) arising from Tenant’s plans, specifications, improvements, Alterations or otherwise shall be paid by Tenant
at its sole cost and expense. With regard to repairs, Alterations or any other work arising from or related to this Article 9,
Landlord shall be entitled to receive an administrative/coordination fee (which fee shall vary depending upon whether or not Tenant
orders the work directly from Landlord) sufficient to compensate Landlord for all overhead, general conditions, fees and other
costs and expenses arising from Landlord’s involvement with such work. On completion of any Alteration, Tenant shall: (i)
cause a timely notice of completion to be recorded in the office of the recorder of the county in which the Project is located,
in accordance with Civil Code section 3093 or any successor statute; and (ii) deliver to Landlord evidence of full payment and
unconditional final waivers of all liens for labor, services, or materials.

 

ARTICLE
10

 

LIENS

 

Tenant
shall keep the Premises and the Project free from any mechanics’ liens, vendors liens or any other liens arising out of
any work performed, materials furnished or obligations incurred by Tenant, and Tenant agrees to defend, indemnify and hold Landlord
harmless from and against any such lien or claim or action thereon, together with costs of suit and reasonable attorneys’
fees and costs incurred by Landlord in connection with any such claim or action. Before commencing any work of alteration, addition
or improvement to the Premises, Tenant shall give Landlord at least twenty (20) days’ written notice of the proposed commencement
of such work (to afford Landlord an opportunity to post appropriate notices of non-responsibility). In the event that there shall
be recorded against the Premises or the Project or the property of which the Premises is a part any claim or lien arising out
of any such work performed, materials furnished or obligations incurred by Tenant and such claim or lien shall not be removed
or discharged within twenty (20) days of filing, Landlord shall have the right but not the obligation to pay and discharge said
lien without regard to whether such lien shall be lawful or correct (in which event Tenant shall reimburse Landlord for any such
payment made by Landlord within five (5) days following written demand therefor), or to require that Tenant promptly deposit with
Landlord in cash, lawful money of the United States, one hundred fifty percent (150%) of the amount of such claim, which sum may
be retained by Landlord until such claim shall have been removed of record or until judgment shall have been rendered on such
claim and such judgment shall have become final, at which time Landlord shall have the right to apply such deposit in discharge
of the judgment on said claim and any costs, including attorneys’’ fees and costs incurred by Landlord, and shall
remit the balance thereof to Tenant. All expenses (including reasonable attorneys’ fees) incurred by Landlord in connection
with any such liens shall be considered Additional Rental under this Lease and be immediately due and payable by Tenant.

 

    	10

    	 

    

 

ARTICLE
11

 

PROJECT
SERVICES

 

(a)    
Basic Services, Landlord agrees to furnish to the Premises, at a cost to be included in Operating Costs, from 8:00
a.m. to 6:00 p.m. Mondays through Fridays and 9:00 a.m. to 1:00 p.m. on Saturdays, excepting local and national holidays, air
conditioning and heat all in such reasonable quantities as in the judgment of Landlord is reasonably necessary for the comfortable
occupancy of the Premises. In addition, Landlord, at a cost to be included in Operating Costs, shall provide electric current
for normal lighting and normal office machines, elevator service and water on the same floor as the Premises for lavatory and
drinking purposes in such reasonable quantities as in the judgment of Landlord is reasonably necessary for general office use
and in compliance with applicable codes. Janitorial and maintenance services shall be furnished as part of Operating Costs, five
(5) days per week, excepting local and national holidays. Tenant shall comply with all rules and regulations which Landlord may
establish for the proper functioning and protection of the common area air conditioning, heating, elevator, electrical, intrabuilding
cabling and wiring and plumbing systems. Except as expressly provided in Section 11 (i) below, Landlord shall not be liable
for, and there shall be no rent abatement as a result of, any stoppage, reduction or interruption of any such services caused
by governmental rules, regulations or ordinances, riot, strike, labor disputes, breakdowns, accidents, necessary repairs or other
cause. Such failure, delay, or diminution shall not be considered to constitute an eviction or a disturbance of Tenant’s
use and possession of the Premises. Landlord shall not be liable under any circumstances for a loss of or injury to property or
for injury to or interference with Tenant’s business, including loss of profits through, in connection with, or incidental
to a failure to furnish any of the utilities or services under this Article 11. Landlord may comply with mandatory or voluntary
controls or guidelines promulgated by any government entity relating to the use or conservation of energy, water, gas, light,
or electricity or the reduction of automobile or other emissions without creating any liability of Landlord to Tenant under this
Lease as long as compliance with voluntary controls or guidelines does not materially and unreasonably interfere with Tenant’s
use of the Premises. Except as specifically provided in this Article 11, Tenant agrees to pay for all utilities and other
services utilized by Tenant and any additional building services furnished to Tenant which are not uniformly furnished to all
tenants of the Project, at the rate generally charged by Landlord to tenants of the Project for such utilities or services. Tenant
shall cooperate with Landlord in energy conservation, complying with any government mandated energy regulations and Landlord’s
actions to convert the Project to a “Green Building.”

 

(b)    
Excess Usage. Tenant will not, without the prior written consent of Landlord, which shall not be unreasonably withheld,
use any apparatus or device in the Premises which will in any way increase the amount of electricity or water usually furnished
or supplied for use of the Premises as general office space; nor connect any apparatus, machine or device with water pipes or
electric current (except through existing electrical outlets and pipe connections in the Premises), for the purpose of using electric
current or water.

 

(c)    
Additional Electrical Service. If Tenant shall require electric current in excess of that which Landlord is obligated
to furnish under Section 11(a) above, Tenant shall first obtain the written consent of Landlord, which Landlord may refuse
in its sole and absolute discretion. Additionally, Landlord may cause an electric current meter or submeter to be installed in
or about the Premises to measure the amount of any such excess electric current consumed by Tenant in the Premises. The cost of
any such meter and of installation, maintenance and repair thereof shall be paid for by Tenant and Tenant agrees to pay to Landlord,
promptly upon demand therefor by Landlord, for all such excess electric current consumed by any such use as shown by said meter
at the rates charged for such service by the city in which the Project is located or the local public utility, as the case may
be, furnishing the same, plus any additional expense incurred by Landlord in keeping account of the electric current so consumed.

 

(d)    
HVAC Balance. If any lights, machines or equipment (including but not limited to computers and computer systems
and appurtenances) are used by Tenant in the Premises which materially affect the temperature otherwise maintained by the air
conditioning system, or generate substantially more heat in the Premises than would be generated by the building standard lights
and usual office equipment, Landlord shall have the right to install any machinery and equipment which Landlord reasonably deems
necessary to restore temperature balance, including but not limited to modifications to the standard air conditioning equipment,
and the cost thereof, including the cost of installation and any additional
cost of operation and maintenance occasioned thereby, shall be paid by Tenant to Landlord upon demand by Landlord.

 

    	11

    	 

    
 

(e)    
Telecommunications. Upon request from Tenant from time to time, Landlord will provide Tenant with a listing of telecommunications
and media service providers serving the Project, and Tenant shall have the right to contract directly with the providers of its
choice. If Tenant wishes to contract with or obtain service from any provider which does not currently serve the Project or wishes
to obtain from an existing carrier services which will require the installation of additional equipment, such provider must, prior
to providing service, enter into a written agreement with Landlord setting forth the terms and conditions of the access to be
granted to such provider. In considering the installation of any new or additional telecommunications cabling or equipment at
the Project, Landlord will consider all relevant factors in a reasonable and non-discriminatory manner, including, without limitation,
the existing availability of services at the Project, the impact of the proposed installations upon the Project and its operations
and the available space and capacity for the proposed installations. Landlord may also consider whether the proposed service may
result in interference with or interruption of other services at the Project or the business operations of other tenants or occupants
of the Project. In no event shall Landlord be obligated to incur any costs or liabilities in connection with the installation
or delivery of telecommunication services or facilities at the Project. All such installations shall be subject to Landlord’s
prior approval, which shall not be unreasonably withheld, and shall be performed in accordance with the terms of Article 9.
If Landlord approves the proposed installations in accordance with the foregoing, Landlord will deliver its standard form agreement
upon request and will use commercially reasonable efforts to promptly enter into an agreement on reasonable and non-discriminatory
terms with a qualified, licensed and reputable carrier confirming the terms of installation and operation of telecommunications
equipment consistent with the foregoing.

 

(f)    
After-Hours Use. If Tenant requires heating, ventilation and/or air conditioning during times other than the times provided
in Section 11(a) above, Tenant shall give Landlord such advance notice as Landlord shall reasonably require and shall pay
Landlord’s standard charge for such after-hours use.

 

(g)    
Reasonable Charges. Landlord may impose a reasonable charge for any utilities or services (other than electric current
and heating, ventilation and/or air conditioning which shall be governed by Sections 11(c) and (f) above) utilized by Tenant
in excess of the amount or type that Landlord reasonably determines is typical for general office use.

 

(h)    Sole
Electrical Representative. Tenant agrees that Landlord shall be the sole and exclusive representative with respect to, and
shall maintain exclusive control over, the reception, utilization and distribution of electrical power, regardless of point or
means of origin, use or generation. Tenant shall not have the right to contract directly with any provider of electrical power
or services.

 

(i)    Interruption
of Services. In the event that Tenant is prevented from using, and does not use, more than fifty percent (50%) of the rentable
square feet of the Premises, as a result of (i) any repair, maintenance or alteration performed by Landlord in the Project
or that Landlord was required to perform under this Lease and failed to do so; or (ii) any failure by Landlord to provide services
or utilities as required by this Lease (any such set of circumstances as set forth in items (i) or (ii), above, to be known as
an “Abatement Event”), then Tenant shall give Landlord written notice of such Abatement Event, and if such
Abatement Event continues for ninety (90) consecutive days after Landlord’s receipt of such notice (in either of such events,
the “Eligibility Period”), then the Basic Rental shall be abated or reduced, as the case may be, for such time
that Tenant continues to be so prevented from using, and does not use the affected portion of the Premises, in the proportion
that the rentable area of the portion of the Premises that Tenant is prevented from using, and actually does not use (“Unusable
Area”), bears to the total rentable area of the Premises. Such right to abate Basic Rental shall be Tenant’s sole
and exclusive remedy at law or in equity for an Abatement Event.

 

    	12

    	 

    
 

ARTICLE
12

 

RIGHTS
OF LANDLORD

 

(a)    
Right of Entry. Landlord and its agents shall have the right to enter the Premises at all reasonable times for the
purpose of cleaning the Premises, examining or inspecting the same, serving or posting and keeping posted thereon notices as provided
by law, or which Landlord deems necessary for the protection of Landlord or the Project, showing the same to prospective tenants
(in which event Landlord shall provide at least twenty-four (24) hours prior notice to Tenant), lenders or purchasers of the Project,
in the case of an emergency, and for making such alterations, repairs, improvements or additions to the Premises or to the Project
as Landlord may deem necessary or desirable. If Tenant shall not be personally present to open and permit an entry into the Premises
at any time when such an entry by Landlord is necessary or permitted hereunder, Landlord may enter by means of a master key, or
may forcibly enter in the case of an emergency, in each event without liability to Tenant and without affecting this Lease. Tenant
waives any claims for damages caused by Landlord’s entry, including damage claims for injuries, inconvenience to or interference
with Tenant’s business; lost profits; and loss of occupancy or quiet enjoyment of the Premises.

 

(b)    
Maintenance Work. Landlord reserves the right from time to time, but subject to payment by and/or reimbursement
from Tenant as otherwise provided herein; (i) to install, use, maintain, repair, replace, relocate and control for service to
the Premises and/or other parts of the Project pipes, ducts, conduits, wires, cabling, appurtenant fixtures, equipment spaces
and mechanical systems, wherever located in the Premises or the Project, (ii) to alter, close or relocate any facility in the
Premises or the common areas or otherwise conduct any of the above activities for the purpose of complying with a general plan
for fire/life safety for the Project or otherwise, and (iii) to comply with any federal, state or local law, rule or order. Landlord
shall attempt to perform any such work with the least inconvenience to Tenant as is reasonably practicable, but, except as otherwise
expressly set forth in Section 11 (e) above, in no event shall Tenant be permitted to withhold or reduce Basic Rental or
other charges due hereunder as a result of same, make any claim for constructive eviction or otherwise make any claim against
Landlord for interruption or interference with Tenant’s business and/or operations.

 

(c)    
Rooftop. If Tenant desires to use the rooftop of the Project for any purpose, including the installation of communication
equipment to be used from the Premises, such rights will be granted in Landlord’s sole discretion and Tenant must negotiate
the terms of any rooftop access with Landlord or the rooftop management company or lessee holding rights to the rooftop from time
to time. Any rooftop access granted to Tenant will be at prevailing rates and will be governed by the terms of a separate written
agreement or an amendment to this Lease.

 

ARTICLE
13 

 

INDEMNITY;
EXEMPTION OF LANDLORD FROM LIABILITY

 

(a)    Indemnity
by Tenant. Tenant shall indemnify, defend and hold Landlord, its representatives, their subsidiaries, partners, parental and
other affiliates and their respective members, shareholders, officers, directors, employees, agents and contractors (collectively,
“Landlord Parties”) harmless from any and all claims arising from Tenant’s use of the Premises or
the Project or from the conduct of its business or from any activity, work or thing which may be permitted or suffered by Tenant
in or about the Premises or the Project and shall further indemnify, defend and hold Landlord and the Landlord Parties harmless
from and against any and all claims, liabilities, damages, expenses and losses arising from any breach or default in the performance
of any obligation on Tenant’s part to be performed under this Lease or arising from any negligence or willful misconduct
of Tenant or any of its agents, contractors, employees or invitees, patrons, customers or members in or about the Project and
from any and all costs, attorneys’ fees and costs, expenses and liabilities incurred in the defense of any claim or any
action or proceeding brought thereon, including negotiations in connection therewith. Tenant hereby assumes all risk of damage
to property or injury to persons in or about the Premises from any cause, and Tenant hereby waives all claims in respect thereof
against Landlord and the Landlord Parties, excepting where the damage is caused solely by the gross negligence or willful misconduct
of Landlord or the Landlord Parties.

 

    	13

    	 

    
 

(b)    
Indemnity by Landlord. Landlord shall indemnify, defend and hold Tenant, its representatives, their subsidiaries,
partners, parental and other affiliates and their respective members, shareholders, officers, directors, employees, agents and
other contractors (collectively, “Tenant Parties”) harmless from and against any and all claims, liabilities,
damages, expenses and losses arising from: (i) any gross negligence or willful misconduct in the performance of any obligation
on Landlord’s part to be performed under this Lease; (ii) any gross negligence or willful misconduct of Landlord or any
of its agents, contractors or employees in or about the Project; (iii) any Hazardous Materials not otherwise disclosed in this
Lease existing in the Premises, Building or Project on the Commencement Date, or that comes to exist on the Premises, Building
or Project during the Lease Term as a result of the acts of Landlord or Landlord’s agents, contractors or employees; and
(iv) from any and all costs, attorneys’ fees and costs, expenses and liabilities incurred in the defense of any claim or
any action or proceeding brought thereon, including negotiations in connection therewith.

 

(c)    
Exemption of Landlord from Liability. Notwithstanding anything to the contrary set forth in this Lease Landlord
and the Landlord Parties shall not be liable for injury to Tenant’s business, or loss of income, loss of opportunity or
loss of goodwill therefrom, or any consequential, punitive, special or exemplary damages, however occurring (including, without
limitation, from any failure or interruption of services or utilities or as a result of Landlord’s negligence). Without
limiting the foregoing, except in connection with damage or injury resulting from the gross negligence or willful misconduct of
Landlord or the Landlord Parties, Landlord and the Landlord Parties shall not be liable for damage that may be sustained by the
person, goods, wares, merchandise or property of Tenant, its employees, invitees, customers, agents, or contractors, or any other
person in, on or about the Premises directly or indirectly caused by or resulting from any cause whatsoever, including but not
limited to fire, steam, electricity, gas, water, or rain which may leak or flow from or into any part of the Premises, or from
the breakage, leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning, light
fixtures, or mechanical or electrical systems, or from intrabuilding cabling or wiring, whether such damage or injury results
from conditions arising upon the Premises or upon other portions of the Project or from other sources or places and regardless
of whether the cause of such damage or injury or the means of repairing the same is inaccessible to Tenant. Landlord and the Landlord
Parties shall not be liable to Tenant for any damages arising from any willful or negligent action or inaction of any other tenant
of the Project.

 

(d)
Security. Tenant acknowledges that Landlord’s election whether or not to provide any type of mechanical surveillance
or security personnel whatsoever in the Project is solely within Landlord’s discretion; Landlord and the Landlord Parties
shall have no liability in connection with the provision, or lack, of such services, and Tenant hereby agrees to hold Landlord
and the Landlord Parties harmless with regard to any such potential claim. Landlord and the Landlord Parties shall not be liable
for losses due to theft, vandalism, or like causes. Tenant shall defend, indemnify, and hold Landlord and the Landlord Parties
harmless from any such claims made by any employee, licensee, invitee, contractor, agent or other person whose presence in, on
or about the Premises or the Project is attendant to the business of Tenant.

 

ARTICLE 14

 

INSURANCE

 

(a)
Tenant’s Insurance. Tenant, shall at all times during the Term of this Lease, and at its own cost and expense, procure
and continue in force the following insurance coverage: (i) Commercial General Liability Insurance, written on an occurrence basis,
with a combined single limit for bodily injury and property damages of not less than Two Million Dollars ($2,000,000.00) per occurrence
and Three Million Dollars ($3,000,000.00) in the annual aggregate, including products liability coverage if applicable, owners
and contractors protective coverage, blanket contractual coverage including both oral and written contracts, and personal injury
coverage, covering the insuring provisions of this Lease and the performance of Tenant of the indemnity and exemption of Landlord
from liability agreements set forth in Article 13 hereof; (ii) a policy of standard fire, extended coverage and
special extended coverage insurance (all risks), including a vandalism and malicious mischief endorsement, sprinkler leakage coverage
and earthquake sprinkler leakage where sprinklers are provided in an amount equal to the full replacement value new without deduction
for depreciation of all (A) Tenant Improvements, Alterations, fixtures and other improvements in the Premises, including but not
limited to all

 

    	14

    	 

    

 

mechanical,
plumbing, heating, ventilating, air conditioning, electrical, telecommunication and other equipment, systems and facilities, and
(B) trade fixtures, furniture, equipment and other personal property installed by or at the expense of Tenant; (iii) Worker’s
Compensation coverage as required by law; and (iv) business interruption, loss of income and extra expense insurance covering
any failure or interruption of Tenant’s business equipment (including, without limitation, telecommunications equipment)
and covering all other perils, failures or interruptions sufficient to cover a period of interruption of not less than twelve
(12) months. Tenant shall carry and maintain during the entire Term (including any option periods, if applicable), at Tenant’s
sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 14
and such other reasonable types of insurance coverage and in such reasonable amounts covering the Premises and Tenant’s
operations therein, as may be reasonably required by Landlord.

 

(b)    
Form of Policies. The aforementioned minimum limits of policies and Tenant’s procurement and maintenance thereof
shall in no event limit the liability of Tenant hereunder. The Commercial General Liability Insurance policy shall name Landlord,
the Landlord Parties, Landlord’s property manager, Landlord’s lender(s) and such other persons or firms as Landlord
specifies from time to time, as additional insureds with an appropriate endorsement to the policy(s). All such insurance policies
carried by Tenant shall be with companies having a rating of not less than A-VTII in Best’s Insurance Guide. Tenant shall
furnish to Landlord, from the insurance companies, or cause the insurance companies to furnish, certificates of coverage. The
deductible under each such policy shall be reasonably acceptable to Landlord. No such policy shall be cancelable or subject to
reduction of coverage or other modification or cancellation except after thirty (30) days prior written notice to Landlord by
the insurer. All such policies shall be endorsed to agree that Tenant’s policy is primary and that any insurance carried
by Landlord is excess and not contributing with any Tenant insurance requirement hereunder. Tenant shall, at least ten (10) days
prior to the expiration of such policies, furnish Landlord with renewals or binders. Tenant agrees that if Tenant does not take
out and maintain such insurance or furnish Landlord with renewals or binders in a timely manner, Landlord may (but shall not be
required to) procure said insurance on Tenant’s behalf and charge Tenant the cost thereof, which amount shall be payable
by Tenant upon demand with interest (at the rate set forth in Section 20(e) below) from the date such sums are expended.
Tenant shall have the right to provide such insurance coverage pursuant to blanket policies obtained by Tenant, provided such
blanket policies expressly afford coverage to the Premises and to Tenant as required by this Lease.

 

(c)    
Landlord’s Insurance. Landlord may, as a cost to be included in Operating Costs, procure and maintain at all
times during the Term of this Lease, a policy or policies of insurance covering loss or damage to the Project in the amount of
the full replacement costs without deduction for depreciation thereof, providing protection against all perils included within
the classification of fire and extended coverage, vandalism coverage and malicious mischief, sprinkler leakage, water damage,
and special extended coverage on the building. Additionally, Landlord may carry: (i) Bodily Injury and Property Damage Liability
Insurance and/or Excess Liability Coverage Insurance; and (ii) Earthquake and/or Flood Damage Insurance; and (iii) Rental Income
Insurance; and (iv) any other forms of insurance Landlord may deem appropriate or any lender may require. The costs of all insurance
carried by Landlord shall be included in Operating Costs.

 

(d)    
Waiver of Subrogation. Landlord and Tenant each agree to require their respective insurers issuing the insurance
with respect to the Project or Premises to waive any rights of subrogation that such companies may have against the other party.
Tenant hereby waives any right that Tenant may have against Landlord and Landlord hereby waives any right that Landlord may have
against Tenant as a result of any loss or damage to the extent such loss or damage is insurable under such policies.

 

(e)    
Compliance with Law, Tenant agrees that it will not, at any time, during the Term of this Lease, carry any stock
of goods or do anything in or about the Premises that will in any way tend to increase the insurance rates upon the Project. Tenant
agrees to pay Landlord forthwith upon demand the amount of any increase in premiums for insurance that may be carried during the
Term of this Lease, or the amount of insurance to be carried by Landlord on the Project resulting from the foregoing, or from
Tenant doing any act in or about the Premises that does so increase the insurance rates, whether or not Landlord shall have consented
to such act on the part of Tenant. If Tenant installs upon the Premises any electrical equipment which causes an overload of electrical
lines of the Premises, Tenant shall at its own cost and expense, in accordance
with all other Lease provisions (specifically including but not limited to the provisions of Articles 9, 10 and
JT hereof), make whatever changes are necessary to comply with requirements of the insurance underwriters and any governmental
authority having jurisdiction thereover, but nothing herein contained shall be deemed to constitute Landlord’s consent to
such overloading. Tenant shall, at its own expense, comply with all insurance requirements applicable to the Premises including
without limitation, the installation of fire extinguishers or an automatic dry chemical extinguishing system.

 

    	15

    	 

    
 

ARTICLE
15

 

ASSIGNMENT
AND SUBLETTING

 

Tenant
shall have no power to, either voluntarily, involuntarily, by operation of law or otherwise, sell, assign, transfer or hypothecate
this Lease, or sublet the Premises or any part thereof, or permit the Premises or any part thereof to be used or occupied by anyone
other than Tenant or Tenant’s employees without the prior written consent of Landlord, which consent shall not be unreasonably
withheld. If Tenant is a corporation, unincorporated association, partnership or limited liability company, the sale, assignment,
transfer or hypothecation of any class of stock or other ownership interest in such corporation, association, partnership or limited
liability company in excess of fifty-five percent (55%) in the aggregate shall be deemed a “Transfer” within the meaning
and provisions of this Article 15. Notwithstanding the foregoing, Tenant shall have the right to conduct an initial public
offering of stock and subsequent issuances of its stock without obtaining Landlord’s prior consent thereto, provided that
such stock issuances do not result in a change of the voting control of the business and affairs of Tenant. Tenant may transfer
its interest pursuant to this Lease only upon the following express conditions, which conditions are agreed by Landlord and Tenant
to be reasonable:

 

(a)    That
the proposed Transferee (as hereafter defined) shall be subject to the prior written consent of Landlord, which consent will not
be unreasonably withheld but, without limiting the generality of the foregoing, it shall be reasonable for Landlord to deny such
consent if:

 

(i)    The
use to be made of the Premises by the proposed Transferee is (a) not generally consistent with the character and nature of all
other tenancies in the Project, or (b) a use which conflicts with any so-called “exclusive” then in favor of, or for
any use which might reasonably be expected to diminish the rent payable pursuant to any percentage rent lease with another tenant
of the Project or any other buildings which are in the same complex as the Project, or (c) a use which would be prohibited
by any other portion of this Lease (including but not limited to any Rules and Regulations then in effect);

 

(ii)    The
financial responsibility of the proposed Transferee is not reasonably satisfactory to Landlord or in any event not at least equal
to those which were possessed by Tenant as of the date of execution of this Lease;

 

(iii)    The
proposed Transferee is either a governmental agency or instrumentality thereof;

 

(iv)    Either
the proposed Transferee or any person or entity which directly or indirectly controls, is controlled by or is under common control
with the proposed Transferee (A) occupies space in the Project at the time of the request for consent, or (B) is negotiating with
Landlord or has negotiated with Landlord during the six (6) month period immediately preceding the date of the proposed
Transfer, to lease space in the Project; or

 

(v)    The
rent charged by Tenant to such Transferee during the term of such Transfer, calculated using a present value analysis, is less
than the rent being quoted by Landlord at the time of such Transfer for comparable space in the Project for a comparable term,
calculated using a present value analysis.

 

(b)    Upon
Tenant’s submission of a request for Landlord’s consent to any such Transfer, Tenant shall pay to Landlord Landlord’s
then standard processing fee and reasonable attorneys’ fees and costs incurred in connection with the proposed Transfer,
which the parties hereby stipulate to be One Thousand Five Hundred and 00/100 Dollars ($1,500.00);

 

    	16

    	 

    
 

(c)    
That the proposed Transferee shall execute an agreement pursuant to which it shall agree to perform faithfully and be bound
by all of the terms, covenants, conditions, provisions and agreements of this Lease applicable to that portion of the Premises
so transferred; and

 

(d)    
That an executed duplicate original of said assignment and assumption agreement or other Transfer on a form reasonably approved
by Landlord, shall be delivered to Landlord within five (5) days after the execution thereof, and that such Transfer shall not
be binding upon Landlord until the delivery thereof to Landlord and the execution and delivery of Landlord’s consent thereto.
It shall be a condition to Landlord’s consent to any subleasing, assignment or other transfer of part or all of Tenant’s
interest in the Premises (a “Transfer”) that, (i) upon Landlord’s consent to any Transfer, Tenant shall
pay and continue to pay fifty percent (50%) of any Transfer Premium (as defined below), received by Tenant from the Transferee
(as defined below); (ii) any sub lessee of part or all of Tenant’s interest in the Premises shall agree that in the event
Landlord gives such sub lessee notice that Tenant is in default under this Lease, such sub lessee shall thereafter make all sublease
or other payments directly to Landlord, which will be received by Landlord without any liability whether to honor the sublease
or otherwise (except to credit such payments against sums due under this Lease), and any sub lessee shall agree to attorn to Landlord
or its successors and assigns at their request should this Lease be terminated for any reason, except that in no event shall Landlord
or its successors or assigns be obligated to accept such attornment; (iii) any such Transfer and consent shall be effected on
forms supplied by Landlord and/or its legal counsel; (iv) Landlord may require that Tenant not then be in default hereunder in
any respect; and (v) Tenant or the proposed subtenant or assignee (collectively, “Transferee”) shall agree
to pay Landlord, upon demand, as Additional Rent, a sum equal to the additional costs, if any, incurred by Landlord for maintenance
and repair as a result of any change in the nature of occupancy caused by such subletting or assignment. “Transfer Premium”
shall mean all rent, Additional Rent or other consideration payable by a Transferee in connection with a Transfer in excess
of the Basic Rental and Direct Costs payable by Tenant under this Lease during the term of the Transfer and if such Transfer is
for less than all of the Premises, the Transfer Premium shall be calculated on a rentable square foot basis. The calculation of
“Transfer Premium” shall also include, but not be limited to, key money, bonus money or other cash consideration paid
by a Transferee to Tenant in connection with such Transfer, and any payment in excess of fair market value for services rendered
by Tenant to the Transferee and any payment in excess of fair market value for assets, fixtures, inventory, equipment, or furniture
transferred by Tenant to the Transferee in connection with such Transfer. Any Transfer of this Lease which is not in compliance
with the provisions of this Article 15 shall be voidable by written notice from Landlord and shall, at the option of Landlord,
terminate this Lease. In no event shall the consent by Landlord to any Transfer be construed as relieving Tenant or any Transferee
from obtaining the express written consent of Landlord to any further Transfer, or as releasing Tenant from any liability or obligation
hereunder whether or not then accrued and Tenant shall continue to be fully liable therefor. No collection or acceptance of rent
by Landlord from any person other than Tenant shall be deemed a waiver of any provision of this Article 15 or the acceptance
of any Transferee hereunder, or a release of Tenant (or of any Transferee of Tenant). Notwithstanding anything to the contrary
in this Lease, if Tenant or any proposed Transferee claims that Landlord has unreasonably withheld or delayed its consent under
this Article 15 or otherwise has breached or acted unreasonably under this Article 15, then-sole remedies shall
be a declaratory judgment and an injunction for the relief sought without any monetary damages, and Tenant hereby waives all other
remedies, including, without limitation, any right at law or equity to terminate this Lease, on its own behalf and, to the extent
permitted under all applicable laws, on behalf of the proposed Transferee.

 

Notwithstanding
anything to the contrary contained in this Article 15, Landlord shall have the option, by giving written notice to Tenant
(“Landlord’s Recapture Notice”) within thirty (30) days after Landlord’s receipt of a request for
consent to a proposed Transfer, to terminate this Lease as to the portion of the Premises that is the subject of the proposed
Transfer (hereinafter, the “Recapture Space”). If this Lease is so terminated with respect to less than the
entire Premises, (i) the Basic Rental and Tenant’s Proportionate Share shall be prorated based on the number of rentable
square feet retained by Tenant as compared to the total number of rentable square feet previously contained in the Premises, and
this Lease as so amended shall continue thereafter in full force and effect, and upon the request of either party, the parties
shall execute written confirmation of the same, and (ii) Tenant shall be responsible for all costs incurred by Landlord in connection
with separately demising the Recapture Space separate and apart from the balance of the Premises, including without limitation,
all ductwork, systems work, demising wall installation and compliance with governmental requirements relating thereto (“Landlord’s
Recapture Costs”). Tenant shall reimburse Landlord for Landlord’s Recapture Costs within three (3) business days
following written demand therefor from Landlord. The effective date of any such termination shall be set forth in Landlord’s
Recapture Notice.

 

    	17

    	 

    
 

ARTICLE
16 

 

DAMAGE OR DESTRUCTION

 

If
the Project is damaged by fire or other insured casualty and the insurance proceeds have been made available therefor by the holder
or holders of any mortgages or deeds of trust covering the Premises or the Project, the damage shall be repaired by Landlord to
the extent such insurance proceeds are available therefor and provided such repairs can, in Landlord’s sole opinion, be
completed within two hundred seventy (270) days after the necessity for repairs as a result of such damage becomes known to Landlord,
without the payment of overtime or other premiums, and until such repairs are completed rent shall be abated in proportion to
the part of the Premises which is unusable by Tenant in the conduct of its business (but there shall be no abatement of rent by
reason of any portion of the Premises being unusable for a period equal to one (1) day or less). However, if the damage is due
to the fault or neglect of Tenant, its employees, agents, contractors, guests, invitees and the like, there shall be no abatement
of rent, unless and to the extent Landlord receives rental income insurance proceeds. Upon the occurrence of any damage to the
Premises, Tenant shall assign to Landlord (or to any party designated by Landlord) all insurance proceeds payable to Tenant under
Section 14(a)(ii)(A) above; provided, however, that if the cost of repair of improvements within the Premises
by Landlord exceeds the amount of insurance proceeds received by Landlord from Tenant’s insurance carrier, as so assigned
by Tenant, such excess costs shall be paid by Tenant to Landlord prior to Landlord’s repair of such damage. If repairs cannot,
in Landlord’s opinion, be completed within two hundred seventy (270) days after the necessity for repairs as a result of
such damage becomes known to Landlord without the payment of overtime or other premiums, Landlord may, at its option, either (i)
make such repairs in a reasonable time and in such event this Lease shall continue in effect and the rent shall be abated, if
at all, in the manner provided in this Article 16, or (ii) elect not to effect such repairs and instead terminate this
Lease, by notifying Tenant in writing of such termination within sixty (60) days after Landlord learns of the necessity for repairs
as a result of damage, such notice to include a termination date giving Tenant sixty (60) days to vacate the Premises. In addition,
Landlord may elect to terminate this Lease if the Project shall be damaged by fire or other casualty or cause, whether or not
the Premises are affected, if the damage is not fully covered, except for deductible amounts, by Landlord’s insurance policies.
Finally, if the Premises or the Project is damaged to any substantial extent during the last twelve (12) months of the Term, then
notwithstanding anything contained in this Article 16 to the contrary, Landlord shall have the option to terminate this
Lease by giving written notice to Tenant of the exercise of such option within sixty (60) days after Landlord learns of the necessity
for repairs as the result of such damage. A total destruction of the Project shall automatically terminate this Lease. Except
as provided in this Article 16., there shall be no abatement of rent and no liability of Landlord by reason of any injury
to or interference with Tenant’s business or property arising from such damage or destruction or the making of any repairs,
alterations or improvements in or to any portion of the Project or the Premises or in or to fixtures, appurtenances and equipment
therein. Tenant understands that Landlord will not carry insurance of any kind on Tenant’s furniture, furnishings, trade
fixtures or equipment, and that Landlord shall not be obligated to repair any damage thereto or replace the same. Tenant acknowledges
that Tenant shall have no right to any proceeds of insurance carried by Landlord relating to property damage. With respect to
any damage which Landlord is obligated to repair or elects to repair, Tenant, as a material inducement to Landlord entering into
this Lease, irrevocably waives and releases its rights under the provisions of Sections 1932 and 1933 of the California Civil
Code.

 

ARTICLE
17

 

SUBORDINATION

 

This
Lease is subject to and Tenant agrees to comply with all matters of record affecting the Real Property. This Lease is also subject
and subordinate to all ground or underlying leases, mortgages and deeds of trust which affect the Real Property, as well as all
renewals,

 

    	18

    	 

    
 

modifications,
consolidations, replacements and extensions thereof; provided, however, if the lessor under any such lease or the
holder or holders of any such mortgage or deed of trust shall advise Landlord that they desire or require this Lease to be prior
and superior thereto, upon written request of Landlord to Tenant, Tenant agrees to promptly execute, acknowledge and deliver any
and all documents or instruments which Landlord or such lessor, holder or holders deem necessary or desirable for purposes thereof.
Landlord shall have the right to cause this Lease to be and become and remain subject and subordinate to any and all ground or
underlying leases, mortgages or deeds of trust which may hereafter be executed covering the Premises, the Project or the property
or any renewals, modifications, consolidations, replacements or extensions thereof, for the full amount of all advances made or
to be made thereunder and without regard to the time or character of such advances, together with interest thereon and subject
to all the terms and provisions thereof; provided, however, that Landlord obtains from the lender or other party
in question a written undertaking in favor of Tenant to the effect that such lender or other party will not disturb Tenant’s
right of possession under this Lease if Tenant is not then or thereafter in breach of any covenant or provision of this Lease.
Tenant agrees, within ten (10) days after Landlord’s written request therefor, to execute, acknowledge and deliver upon
request any and all documents or instruments requested by Landlord or necessary or proper to assure the subordination of this
Lease to any such mortgages, deed of trust, or leasehold estates. Tenant agrees that in the event any proceedings are brought
for the foreclosure of any mortgage or deed of trust or any deed in lieu thereof, to attorn to the purchaser or any successors
thereto upon any such foreclosure sale or deed in lieu thereof as so requested to do so by such purchaser and to recognize such
purchaser as the lessor under this Lease; Tenant shall, within five (5) days after request execute such further instruments or
assurances as such purchaser may reasonably deem necessary to evidence or confirm such attornment. Tenant agrees to provide copies
of any notices of Landlord’s default under this Lease to any mortgagee or deed of trust beneficiary whose address has been
provided to Tenant and Tenant shall provide such mortgagee or deed of trust beneficiary a commercially reasonable time after receipt
of such notice within which to cure any such default. Tenant waives the provisions of any current or future statute, rule or law
which may give or purport to give Tenant any right or election to terminate or otherwise adversely affect this Lease and the obligations
of the Tenant hereunder in the event of any foreclosure proceeding or sale.

 

ARTICLE
18

 

EMINENT DOMAIN

 

If
the whole of the Premises or the Project or so much thereof as to render the balance unusable by Tenant shall be taken under power
of eminent domain, or is sold, transferred or conveyed in lieu thereof, this Lease shall automatically terminate as of the date
of such condemnation, or as of the date possession is taken by the condemning authority, at Landlord’s option. No award
for any partial or entire taking shall be apportioned, and Tenant hereby assigns to Landlord any award which may be made in such
taking or condemnation, together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof;
provided, however, that nothing contained herein shall be deemed to give Landlord any interest in or to require
Tenant to assign to Landlord any award made to Tenant for the taking of personal property and trade fixtures belonging to Tenant
and removable by Tenant at the expiration of the Term hereof as provided hereunder or for the interruption of, or damage to, Tenant’s
business. In the event of a partial taking described in this Article 18, or a sale, transfer or conveyance in lieu thereof,
which does not result in a termination of this Lease, the rent shall be apportioned according to the ratio that the part of the
Premises remaining useable by Tenant bears to the total area of the Premises. Tenant hereby waives any and all rights it might
otherwise have pursuant to Section 1265.130 of the California Code of Civil Procedure.

 

ARTICLE
19

 

DEFAULT

 

Each
of the following acts or omissions of Tenant or of any guarantor of Tenant’s performance hereunder, or occurrences, shall
constitute an “Event of Default”:

 

(a)
Failure or refusal to pay Basic Rental, Additional Rent or any other amount to be paid by Tenant to Landlord hereunder within
five (5) calendar days after notice that the same is due or payable hereunder; said five (5) day period shall be in lieu of, and
not in addition to, the notice requirements of Section 1161 of the California Code of Civil Procedure or any similar or successor
law;

 

    	19

    	 

    
 

(b)    
Except as set forth in items (a) above and (c) through and including (g) below, failure to perform or observe any other
covenant or condition of this Lease to be performed or observed within thirty (30) days following written notice to Tenant of
such failure. Such thirty (30) day notice shall be in lieu of, and not in addition to, any required under Section 1161 of the
California Code of Civil Procedure or any similar or successor law;

 

(c)    
Abandonment or vacating or failure to accept tender of possession of the Premises or any significant portion thereof;

 

(d)    
The taking in execution or by similar process or law (other than by eminent domain) of the estate hereby created;

 

(e)    
The filing by Tenant or any guarantor hereunder in any court pursuant to any statute of a petition in bankruptcy or insolvency
or for reorganization or arrangement for the appointment of a receiver of all or a portion of Tenant’s property; the filing
against Tenant or any guarantor hereunder of any such petition, or the commencement of a proceeding for the appointment of a trustee,
receiver or liquidator for Tenant, or for any guarantor hereunder, or of any of the property of either, or a proceeding by any
governmental authority for the dissolution or liquidation of Tenant or any guarantor hereunder, if such proceeding shall not be
dismissed or trusteeship discontinued within thirty (30) days after commencement of such proceeding or the appointment of such
trustee or receiver; or the making by Tenant or any guarantor hereunder of an assignment for the benefit of creditors. Tenant
hereby stipulates to the lifting of the automatic stay in effect and relief from such stay for Landlord in the event Tenant files
a petition under the United States Bankruptcy laws, for the purpose of Landlord pursuing its rights and remedies against Tenant
and/or a guarantor of this Lease;

 

(f)    
Tenant’s failure to cause to be released any mechanics liens filed against the Premises or the Project within twenty
(20) days after the date the same shall have been filed or recorded;

 

(g)    
Tenant’s failure to observe or perform according to the provisions of Articles 7, ii 12 or 25 within
two (2) business days after notice (following such failure) from Landlord; or

 

(h)    A
default by Tenant or any entity owned or controlled by or otherwise affiliated with Tenant under any other lease with Landlord
or any affiliate of Landlord.

 

All
defaults by Tenant of any covenant or condition of this Lease shall be deemed by the parties hereto to be material,

 

ARTICLE 20

 

REMEDIES

 

(a)
Upon the occurrence of an Event of Default under this Lease as provided in Article 19 hereof, Landlord may exercise all
of its remedies as may be permitted by law, including but not limited to the remedy provided by Section 1951.4 of the California
Civil Code, and including without limitation, terminating this Lease, reentering the Premises and removing all persons and property
therefrom, which property may be stored by Landlord at a warehouse or elsewhere at the risk, expense and for the account of Tenant.
If Landlord elects to terminate this Lease, Landlord shall be entitled to recover from Tenant the aggregate of all amounts permitted
by law, including but not limited to: (i) the worth at the time of award of the amount of any unpaid rent which had been earned
at the time of such termination; plus (ii) the worth at the time of award of the amount by which the unpaid rent which would have
been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been
reasonably avoided; plus (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the Term
after the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus (iv)
any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform
its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, specifically including,
without limitation, tenant

 

    	20

    	 

    
 

improvement
expenses, brokerage commissions and advertising expenses incurred, expenses of remodeling the Premises or any portion thereof
for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant; and (v) at
Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time
by applicable law. The term “rent” as used in this Section 20(a) shall be deemed to be and to mean all sums of every
nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used in items (i)
and (ii), above, the ’^orth at the time of award” shall be computed by allowing interest at the rate set forth in
item (e), below, but in no case greater than the maximum amount of such interest permitted by law. As used in item (iii), above,
the “worth at the time of award” shall be computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of award plus one percent (1%).

 

(b)    
Nothing in this Article 20 shall be deemed to affect Landlord’s right to indemnification for liability or
liabilities arising prior to the termination of this Lease for personal injuries or property damage under the indemnification
clause or clauses contained in this Lease.

 

(c)    
Notwithstanding anything to the contrary set forth herein, Landlord’s re-entry to perform acts of maintenance or
preservation of or in connection with efforts to relet the Premises or any portion thereof, or the appointment of a receiver upon
Landlord’s initiative to protect Landlord’s interest under this Lease shall not terminate Tenant’s right to
possession of the Premises or any portion thereof and, until Landlord does elect to terminate this Lease, this Lease shall continue
in full force and effect and Landlord may enforce all of Landlord’s rights and remedies hereunder including, without limitation,
the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee’s breach
and abandonment and recover rent as it becomes due, if lessee has the right to sublet or assign, subject only to reasonable limitations).
Accordingly, if Landlord does not elect to terminate this Lease on account of any default by Tenant, Landlord may, from time to
time, without terminating this Lease, enforce all of its rights and remedies under this Lease, including the right to recover
all rent as it becomes due.

 

(d)    
All rights, powers and remedies of Landlord hereunder and under any other agreement now or hereafter in force between Landlord
and Tenant shall be cumulative and not alternative and shall be in addition to all rights, powers and remedies given to Landlord
by law, and the exercise of one or more rights or remedies shall not impair Landlord’s right to exercise any other right
or remedy.

 

(e)    
Any amount due from Tenant to Landlord hereunder which is not paid when due shall bear interest at the lower of twelve
percent (12%) per annum or the maximum lawful rate of interest from the due date until paid, unless otherwise specifically provided
herein, but the payment of such interest shall not excuse or cure any default by Tenant under this Lease. In addition to such
interest: (i) if Basic Rental is not paid on or before the fifth (5th) day of the calendar month for which the same is due or
Rental is not paid on or before the fifth (5th) day after the due date thereof, a late charge equal to ten percent (10%) of the
amount overdue or One Hundred and 00/100 Dollars ($100.00), whichever is greater, shall be immediately due and owing and shall
accrue for each calendar month or part thereof until such rental, including the late charge, is paid in full, which late charge
Tenant hereby agrees is a reasonable estimate of the damages Landlord shall suffer as a result of Tenant’s late payment
and (ii) an additional charge of Twenty-Five and 00/100 Dollars ($25.00) shall be assessed for any check given to Landlord by
or on behalf of Tenant which is not honored by the drawee thereof; which damages include Landlord’s additional administrative
and other costs associated with such late payment and unsatisfied checks and the parties agree that it would be impracticable
or extremely difficult to fix Landlord’s actual damage in such event. Such charges for interest and late payments and unsatisfied
checks are separate and cumulative and are in addition to and shall not diminish or represent a substitute for any or all of Landlord’s
rights or remedies under any other provision of this Lease.

 

(f)    
Whether or not Landlord elects to terminate this Lease on account of any default by Tenant, as set forth in this Article
20, Landlord shall have the right to terminate any and all subleases, licenses, concessions or other consensual arrangements
for possession entered into by Tenant and affecting the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s
interest in such subleases, licenses, concessions or arrangements. In the event of Landlord’s election
to succeed to Tenant’s interest in any such subleases, licenses, concessions or arrangements, Tenant shall, as of the date
of notice by Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder.

 

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(g)    Landlord
shall not be in default under this Lease unless Landlord fails to perform obligations required of Landlord within sixty (60) days
after written notice is delivered by Tenant to Landlord and to the holder of any mortgages or deeds of trust (collectively, “Lender”)
covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing, specifying
the obligation which Landlord has failed to perform; provided, however, that if the nature of Landlord’s obligation
is such that more than sixty (60) days are required for performance, then Landlord shall not be in default if Landlord or Lender
commences performance within such sixty (60) day period and thereafter diligently prosecutes the same to completion.

 

(h)    In
the event of any default, breach or violation of Tenant’s rights under this Lease by Landlord, Tenant’s exclusive
remedies shall be an action for specific performance or action for actual damages. Without limiting any other waiver by Tenant
which may be contained in this Lease, Tenant hereby waives the benefit of any law granting it the right to perform Landlord’s
obligation, or the right to terminate this Lease on account of any Landlord default.

 

ARTICLE
21

 

TRANSFER
OF LANDLORD’S INTEREST

 

In
the event of any transfer or termination of Landlord’s interest in the Premises or the Project by sale, assignment, transfer,
foreclosure, deed-in-lieu of foreclosure or otherwise whether voluntary or involuntary, Landlord shall be automatically relieved
of any and all obligations and liabilities on the part of Landlord from and after the date of such transfer or termination, including
furthermore without limitation, the obligation of Landlord under Article 4 and California Civil Code 1950.7 above to return
the Security Deposit, provided said Security Deposit is transferred to said transferee. Tenant agrees to attorn to the transferee
upon any such transfer and to recognize such transferee as the lessor under this Lease and Tenant shall, within five (5) days
after request, execute such further instruments or assurances as such transferee may reasonably deem necessary to evidence or
confirm such attornment.

 

ARTICLE
22

 

BROKER

 

In
connection with this Lease, Tenant warrants and represents that it has had dealings only with firm(s) set forth in Article
1 .H. of the Basic Lease Provisions and that it knows of no other person or entity who is or might be entitled to a commission,
finder’s fee or other like payment in connection herewith and does hereby indemnify and agree to hold Landlord, its agents,
members, partners, representatives, officers, affiliates, shareholders, employees, successors and assigns harmless from and against
any and all loss, liability and expenses that Landlord may incur should such warranty and representation prove incorrect, inaccurate
or false.

 

ARTICLE
23

 

PARKING

 

Tenant
shall rent from Landlord, commencing on the Commencement Date, the number of unreserved parking passes set forth in Article
1.1. of the Basic Lease Provisions, which parking passes shall pertain to the Project parking facility. Tenant shall have
the right, upon at least twenty (20) days prior written notice to Landlord, to convert up to two (2) such unreserved parking passes
to reserved parking spaces in the Project parking facility, to be leased on a month-to-month basis, subject to availability.
As of the date of this Lease and subject to change as set forth herein, parking rates are One Hundred and Twenty-Five and 00/100
Dollars ($125.00) per unreserved space per month, One Hundred Sixty-Five and 00/100 Dollars ($165.00) per reserved space per month.
Notwithstanding the foregoing, Tenant shall pay to Landlord for parking passes the prevailing rate charged from time to time at
the location of such parking passes. In addition, Tenant shall be responsible for the full amount of any taxes imposed by any
governmental authority in connection with the renting of such parking passes by Tenant or the

 

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use
of the parking facility by Tenant. Tenant’s continued right to use the parking passes is conditioned upon Tenant abiding
by all rules and regulations which are prescribed from time to time for the orderly operation and use of the parking facility
where the parking passes are located, including any sticker or other identification system established by Landlord, Tenant’s
cooperation in seeing that Tenant’s employees and visitors also comply with such rules and regulations, and Tenant not being
in default under this Lease. Landlord specifically reserves the right to change the size, configuration, design, layout and all
other aspects of the Project parking facility at any time and Tenant acknowledges and agrees that Landlord may, without incurring
any liability to Tenant and without any abatement of rent under this Lease, from time to time, close-off or restrict access to
the Project parking facility for purposes of permitting or facilitating any such construction, alteration or improvements. Landlord
may, from time to time, relocate any reserved parking spaces (if any) rented by Tenant to another location in the Project parking
facility. Landlord may delegate its responsibilities hereunder to a parking operator or a lessee of the parking facility in which
case such parking operator or lessee shall have all the rights of control attributed hereby to the Landlord. The parking passes
rented by Tenant pursuant to this Article 23 are provided to Tenant solely for use by Tenant’s own personnel and
such passes may not be transferred, assigned, subleased or otherwise alienated by Tenant without Landlord’s prior written
approval, which shall not be unreasonably withheld. Tenant may validate visitor parking by such method or methods as Landlord
may establish, at the validation rate from time to time generally applicable to visitor parking.

 

ARTICLE
24

 

WAIVER

 

No
waiver by Landlord of any provision of this Lease shall be deemed to be a waiver of any other provision hereof or of any subsequent
breach by Tenant of the same or any other provision. No provision of this Lease may be waived by Landlord, except by an instrument
in writing executed by Landlord. Landlord’s consent to or approval of any act by Tenant requiring Landlord’s consent
or approval shall not be deemed to render unnecessary the obtaining of Landlord’s consent to or approval of any subsequent
act of Tenant, whether or not similar to the act so consented to or approved. No act or thing done by Landlord or Landlord’s
agents during the Term of this Lease shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept
such surrender shall be valid unless in writing and signed by Landlord. The subsequent acceptance of rent hereunder by Landlord
shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than
the failure of Tenant to pay the particular rent so accepted, regardless of Landlord’s knowledge of such preceding breach
at the time of acceptance of such rent. Any payment by Tenant or receipt by Landlord of an amount less than the total amount then
due hereunder shall be deemed to be in partial payment only thereof and not a waiver of the balance due or an accord and satisfaction,
notwithstanding any statement or endorsement to the contrary on any check or any other instrument delivered concurrently therewith
or in reference thereto. Accordingly, Landlord may accept any such amount and negotiate any such check without prejudice to Landlord’s
right to recover all balances due and owing and to pursue its other rights against Tenant under this Lease, regardless
of whether Landlord makes any notation on such instrument of payment or otherwise notifies Tenant that such acceptance or negotiation
is without prejudice to Landlord’s rights.

 

ARTICLE
25 

 

ESTOPPEL CERTIFICATE

 

Tenant
shall, at any time and from time to time, upon not less than fifteen (15) days’ prior written notice from Landlord, execute,
acknowledge and deliver to Landlord a statement in writing (the “Estoppel Certificate”) certifying the following
information, (but not limited to the following information in the event further information is requested by Landlord); (i) that
this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying
that this Lease, as modified, is in full force and effect); (ii) the dates to which the rental and other charges are paid in advance,
if any; (iii) the amount of Tenant’s Security Deposit, if any; and (iv) acknowledging that there are not, to Tenant’s
knowledge, any uncured defaults on the part of Landlord hereunder, and no events or conditions then in existence which,
with the passage of time or notice or both, would constitute a default on the part of Landlord hereunder, or specifying such defaults,
events or conditions, if any are claimed. It is expressly understood and agreed that any such statement may be relied upon by
any prospective

 

    	23

    	 

    
 

purchaser
or encumbrancer of all or any portion of the Real Property. Tenant’s failure to deliver such statement within such time
shall constitute an admission by Tenant that all statements contained therein are true and correct. Furthermore, if Tenant fails
to timely deliver an Estoppel Certificate to Landlord pursuant to the terms of this Article 25, then without limiting any other
rights and remedies of Landlord, Landlord shall have the right to charge Tenant an amount equal to Two Hundred Fifty Dollars ($250.00)
per day for each day thereafter until Tenant delivers to Landlord an Estoppel Certificate pursuant to the terms hereof. Tenant
acknowledges and agrees that (A) such charge compensates Landlord for the administrative costs caused by the delinquency, and
(B) Landlord’s damage would be difficult to compute and the amount stated in this paragraph represents a reasonable estimate
of such damage. Tenant hereby irrevocably appoints Landlord as Tenant’s attorney-in-fact and in Tenant’s name, place
and stead to execute any and all documents described in this Article 25 if Tenant fails to do so within the specified time
period.

 

ARTICLE
26

 

LIABILITY
OF LANDLORD

 

Notwithstanding
anything in this Lease to the contrary, any remedy of Tenant for the collection of a judgment (or other judicial process) requiring
the payment of money by Landlord in the event of any default by Landlord hereunder or any claim, cause of action or obligation,
contractual, statutory or otherwise by Tenant against Landlord or the Landlord Parties concerning, arising out of or relating
to any matter relating to this Lease and all of the covenants and conditions or any obligations, contractual, statutory, or otherwise
set forth herein, shall be limited solely and exclusively to an amount which is equal to the lesser of (i) the interest of Landlord
in and to the Project, and (ii) the interest Landlord would have in the Project if the Project were encumbered by third party
debt in an amount equal to ninety percent (90%) of the then current value of the Project (as such value is reasonably determined
by Landlord). No other property or assets of Landlord or any Landlord Party shall be subject to levy, execution or other enforcement
procedure for the satisfaction of Tenant’s remedies under or with respect to this Lease, Landlord’s obligations to
Tenant, whether contractual, statutory or otherwise, the relationship of Landlord and Tenant hereunder, or Tenant’s use
or occupancy of the Premises.

 

ARTICLE
27

 

INABILITY TO PERFORM

 

This
Lease and the obligations of Tenant hereunder shall not be affected or impaired because Landlord is unable to fulfill any of its
obligations hereunder or is delayed in doing so, if such inability or delay is caused by reason of any prevention, delay, stoppage
due to strikes, lockouts, acts of God, inability to obtain services, labor or materials or reasonable substitutes for those items;
government actions or inactions; civil commotions; acts of terrorism, riots; war; enemy or hostile government action; judicial
orders; fire or other casualty; delay; failure or interruption of any utility services; or any other cause previously, or at such
time, beyond the reasonable control or anticipation of Landlord (collectively, a “Force Majeure”) and Landlord’s
obligations under this Lease shall be forgiven and suspended by any such Force Majeure. Tenant’s obligation to pay Rental,
however, is not excused by this Article 27.

 

ARTICLE 28

 

HAZARDOUS WASTE

 

(a)    Tenant
shall not cause or permit any Hazardous Material (as defined in Section 28(d) below) to be brought, kept or used
in or about the Project by Tenant, its agents, employees, contractors, or invitees, other than Universal Waste (as defined in
Section 28(f) below) on the Premises with respect to which Tenant is a Generator (as defined in Section 28(g) below)
or Producer (as defined in Section 28(g) below). Tenant shall be responsible, at its sole expense, for disposing of or
causing to be disposed of all Universal Waste in accordance with Chapter 23 of Title 22 of the California Code of Regulations.
Tenant indemnifies Landlord and the Landlord Parties from and against any breach by Tenant of the obligations stated in the preceding
two sentences, and agrees to defend and hold Landlord and the Landlord Parties harmless from and against any and all claims, judgments,
damages, penalties, fines, costs, liabilities, or losses (including, without limitation, diminution in value of the Project, damages

 

    	24

    	 

    
 

for
the loss or restriction or use of rentable or usable space or of any amenity of the Project, damages arising from any adverse
impact or marketing of space in the Project, and sums paid in settlement of claims, attorneys’ fees and costs, consultant
fees, and expert fees) which arise during or after the Term of this Lease as a result of such breach. This indemnification of
Landlord and the Landlord Parties by Tenant includes, without limitation, costs incurred in connection with any investigation
of site conditions or any cleanup, remedial, removal, or restoration work required by any federal, state, or local governmental
agency or political subdivision because of Hazardous Material present in the soil or ground water on or under the Project. Without
limiting the foregoing, if the presence of any Hazardous Material on the Project caused or permitted by Tenant results in any
contamination of the Project, then subject to the provisions of Articles 9, 10 and H hereof, Tenant shall promptly take
all actions at its sole expense as are necessary to return the Project to the condition existing prior to the introduction of
any such Hazardous Material and the contractors to be used by Tenant for such work must be approved by Landlord, which
approval shall not be unreasonably withheld so long as such actions would not potentially have any material adverse long-term
or short-term effect on the Project and so long as such actions do not materially interfere with the use and enjoyment of the
Project by the other tenants thereof; provided, however, Landlord shall also have the right, by written notice to Tenant,
to directly undertake any such mitigation efforts with regard to Hazardous Materials in or about the Project due to Tenant’s
breach of its obligations pursuant to this Section 28(a), and to charge Tenant, as Additional Rent, for the costs thereof.
If, during the Term, Tenant becomes aware of (a) any actual or threatened release of any Hazardous Material on, under, or about
the Premises or the Building or (b) any inquiry, investigation, proceeding, or claim by any government agency or other person
regarding the presence of Hazardous Material on, under, or about the Premises or the Building, Tenant shall give Landlord written
notice of the release or investigation within five (5) days after learning of it and shall simultaneously furnish to Landlord
copies of any claims, notices of violation, reports, or other writings received by Tenant that concern the release or investigation.

 

(b)    
Landlord and Tenant acknowledge that Landlord may become legally liable for the costs of complying with Laws (as defined
in Section 28(e) below) relating to Hazardous Material which are not the responsibility of Landlord or the responsibility
of Tenant, including the following: (i) Hazardous Material present in the soil or ground water on the Project of which Landlord
has no knowledge as of the effective date of this Lease; (ii) a change in Laws which relate to Hazardous Material which make that
Hazardous Material which is present on the Real Property as of the effective date of this Lease, whether known or unknown to Landlord,
a violation of such new Laws; (iii) Hazardous Material that migrates, flows, percolates, diffuses, or in any way moves on to,
or under, the Project after the effective date of this Lease; or Hazardous Material present on or under the Project as a result
of any discharge, dumping or spilling (whether accidental or otherwise) on the Project by other lessees of the Project or their
agents, employees, contractors, or invitees, or by others. Accordingly, Landlord and Tenant agree that the cost of complying with
Laws relating to Hazardous Material on the Project for which Landlord is legally liable and which are paid or incurred by Landlord
shall be an Operating Cost (and Tenant shall pay Tenant’s Proportionate Share thereof in accordance with Article 3)
unless the cost of such compliance as between Landlord and Tenant, is made the responsibility of Tenant pursuant to Section
28(a) above. To the extent any such Operating Cost relating to Hazardous Material is subsequently recovered or reimbursed
through insurance, or recovery from responsible third parties or other action, Tenant shall be entitled to a proportionate reimbursement
to the extent it has paid its share of such Operating Cost to which such recovery or reimbursement relates.

 

(c)    
It shall not be unreasonable for Landlord to withhold its consent to any proposed Transfer if (i) the proposed Transferee’s
anticipated use of the Premises involves the generation, storage, use, treatment, or disposal of Hazardous Material; (ii) the
proposed Transferee has been required by any prior landlord, lender, or governmental authority to take remedial action in connection
with Hazardous Material contaminating a property if the contamination resulted from such Transferee’s actions or use of
the property in question; or (iii) the proposed Transferee is subject to an enforcement order issued by any governmental authority
in connection with the use, disposal, or storage of a Hazardous Material.

 

(d)    
As used herein, the term “Hazardous Material” means any hazardous or toxic substance, material, or waste
which is or becomes regulated by any local governmental authority, the State of California or the United States Government. The
term “Hazardous Material” includes, without limitation, any material or substance which is (i) defined as “Hazardous

 

    	25

    	 

    
 

Waste,”
“Extremely Hazardous Waste,” or “Restricted Hazardous Waste” under Sections 25115, 25117 or 25122.7, or
listed pursuant to Section 25140, of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control
Law), (ii) defined as a “Hazardous Substance” under Section 25316 of the California Health and Safety Code, Division
20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a “Hazardous Material,”
“Hazardous Substance,” or “Hazardous Waste” under Section 25501 of the California Health and Safety Code,
Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a “Hazardous Substance”
under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances),
(v) petroleum, (vi) asbestos, (vii) regulated by Section 26100 et seq. of the California Health and Safety Code, Division 20,
Chapter 18 (Toxic Mold Protection Act of 2001), (viii) listed under Article 9 or defined as Hazardous or extremely hazardous
pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as a “Hazardous
Substance” pursuant to Section 311 of the Federal Water Pollution Control Act (33 U.S.C. § 1317), (x) defined as a
“Hazardous Waste” pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. §
6901 et seq. (42 U.S.C. § 6903), (xi) defined as a “Hazardous Substance” pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq. (42 U.S.C. § 9601), (xii) any pollutant,
contaminant, or hazardous, dangerous, or toxic chemical, material, or substance, within the meaning of any other applicable federal,
state, or local law, regulation, ordinance, or requirement (including consent decrees and administrative orders imposing liability
or standards of conduct concerning any hazardous, dangerous, or toxic waste, substance, or material, now or hereafter in effect);
or (xiii) polychlorinated biphenyls and substances or compounds containing polychlorinated biphenyls.

 

(e)    
As used herein, the term “Laws” means any applicable federal, state or local law, ordinance, or regulation
relating to any Hazardous Material affecting the Project, including, without limitation, the laws, ordinances, and regulations
referred to above in Article 28(d).

 

(f)    
As used herein, the term “Universal Waste” means any substance defined as Universal Waste pursuant to Section
66273.9 of Title 22 of the California Code of Regulations.

 

(g)    
As used herein, the term “Generator” or “Producer” of Universal Waste is defined
pursuant to Section 66273.9 of Title 22 of the California Code of Regulations.

 

ARTICLE
29

 

SURRENDER
OF PREMISES; REMOVAL OF PROPERTY

 

(a)    
The voluntary or other surrender of this Lease by Tenant to Landlord, or a mutual termination hereof, shall not work a
merger, and shall at the option of Landlord, operate as an assignment to it of any or all subleases or sub tenancies affecting
the Premises.

 

(b)    
Upon the expiration of the Term of this Lease, or upon any earlier termination of this Lease, Tenant shall quit and surrender
possession of the Premises to Landlord in good order and condition, reasonable wear and tear and repairs which are Landlord’s
obligation excepted, and shall, without expense to Landlord, remove or cause to be removed from the Premises all debris and rubbish,
all furniture, equipment, business and trade fixtures, free-standing cabinet work, moveable partitioning, telephone and data cabling
and other articles of personal property in the Premises (except to the extent Landlord elects by notice to Tenant to exercise
its option to have any subleases or sub tenancies assigned to it), and Tenant shall repair all damage to the Premises or the Project
resulting from the removal of such items from the Premises.

 

(c)    
Whenever Landlord shall reenter the Premises as provided in Article 20 hereof, or as otherwise provided in this
Lease, any property of Tenant not removed by Tenant upon the expiration of the Term of this Lease (or within forty-eight (48)
hours after a termination by reason of Tenant’s default), as provided in this Lease, shall be considered abandoned and Landlord
may remove any or all of such items and dispose of the same in any manner or store the same in a public warehouse or elsewhere
for the account and at the expense and risk of Tenant, and if Tenant shall fail to pay the cost of storing any such property after
it has been stored for a period of thirty (30) days or more, Landlord may sell any or all of such property at public or private
sale, in such manner and at such times and places as Landlord, in its sole discretion, may deem proper, without notice to or demand
upon Tenant, for the payment of all or any part of such charges or the
removal of any such property, and shall apply the proceeds of such sale as follows: first, to the cost and expense of such sale,
including reasonable attorneys’’ fees and costs for services rendered; second, to the payment of the cost of or charges
for storing any such property; third, to the payment of any other sums of money which may then or thereafter be due to Landlord
from Tenant under any of the terms hereof; and fourth, the balance, if any, to Tenant.

 

    	26

    	 

    
 

(d)    All
Tenant Improvements, Alterations and/or appurtenances attached to or built into the Premises prior to or during the Term, whether
by Landlord or Tenant and whether at the expense of Landlord or Tenant, or of both, shall be and remain part of the Premises and
shall not be removed by Tenant at the end of the Term unless otherwise expressly provided for in this Lease or unless such removal
is required by Landlord. Such fixtures, Tenant Improvements, Alterations and/or appurtenances shall include but not be limited
to: all floor coverings, drapes, paneling, built-in cabinetry, molding, doors, vaults (including vault doors), plumbing systems,
security systems, electrical systems, lighting systems, silencing equipment, communication systems, supplemental air conditioning
systems, all fixtures and outlets for the systems mentioned above and for all telephone, radio and television purposes, and any
special flooring or ceiling installations.

 

ARTICLE
30

 

MISCELLANEOUS

 

(a)    
SEVERABILITY; ENTIRE AGREEMENT. ANY PROVISION OF THIS LEASE WHICH SHALL PROVE TO BE INVALID, VOID,
OR ILLEGAL SHALL IN NO WAY AFFECT, IMPAIR OR INVALIDATE ANY OTHER PROVISION HEREOF AND SUCH OTHER PROVISIONS SHALL REMAIN IN FULL
FORCE AND EFFECT. THIS LEASE AND THE EXHIBITS AND ANY ADDENDUM ATTACHED HERETO CONSTITUTE THE ENTIRE AGREEMENT BETWEEN THE PARTIES
HERETO WITH REGARD TO TENANT’S OCCUPANCY OR USE OF ALL OR ANY PORTION OF THE PROJECT, AND NO PRIOR AGREEMENT OR UNDERSTANDING
PERTAINING TO ANY SUCH MATTER SHALL BE EFFECTIVE FOR ANY PURPOSE. NO PROVISION OF THIS LEASE MAY BE AMENDED OR SUPPLEMENTED EXCEPT
BY AN AGREEMENT IN WRITING SIGNED BY THE PARTIES HERETO OR THEIR SUCCESSOR IN INTEREST. THE PARTIES AGREE THAT ANY DELETION OF
LANGUAGE FROM THIS LEASE PRIOR TO ITS MUTUAL EXECUTION BY LANDLORD AND TENANT SHALL NOT BE CONSTRUED TO HAVE ANY PARTICULAR MEANING
OR TO RAISE ANY PRESUMPTION, CANON OF CONSTRUCTION OR IMPLICATION INCLUDING, WITHOUT LIMITATION, ANY IMPLICATION THAT THE PARTIES
INTENDED THEREBY TO STATE THE CONVERSE, OBVERSE OR OPPOSITE OF THE DELETED LANGUAGE.

 

(b)    
Attorneys’ Fees; Waiver of Jury Trial,

 

(i)    In
any action to enforce the terms of this Lease, including any suit by Landlord for the recovery of rent or possession of the Premises,
the losing party shall pay the successful party a reasonable sum for attorneys’ fees and costs in such suit and such attorneys’
fees and costs shall be deemed to have accrued prior to the commencement of such action and shall be paid whether or not such
action is prosecuted to judgment. Tenant shall also reimburse Landlord for all costs incurred by Landlord in connection with enforcing
its rights under this Lease against Tenant following a bankruptcy by Tenant or otherwise, including without limitation, legal
fees, experts’ fees and expenses, court costs and consulting fees.

 

(ii)    Should
Landlord, without fault on Landlord’s part, be made a party to any litigation instituted by Tenant or by any third party
against Tenant, or by or against any person holding under or using the Premises by license of Tenant, or for the foreclosure of
any lien for labor or material furnished to or for Tenant or any such other person or otherwise arising out of or resulting from
any act or transaction of Tenant or of any such other person, Tenant covenants to save and hold Landlord harmless from any judgment
rendered against Landlord or the Premises or any part thereof and from all costs and expenses, including reasonable attorneys’
fees and costs incurred by Landlord in connection with such litigation.

 

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(c)    WAIVERS.

 

(i)    JURY
TRIAL.    THE PARTIES HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO
A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON THE LEASE, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS LEASE, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER ORAL OR WRITTEN) OR ACTION OF ANY PARTY HERETO. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR LANDLORD ENTERING INTO THIS LEASE. EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS
LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS
SUBSECTION IS SUBJECT IN ITS ENTIRETY TO SUBSECTION (c)(ii) IMMEDIATELY BELOW.

 

(ii)    APPOINTMENT
OF REFEREE. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, AND NOTWITHSTANDING ANY COURSE OF CONDUCT, COURSE
OF DEALING, STATEMENT (WHETHER ORAL OR WRITTEN) OR ACTION OF ANY PARTY HERETO, UNTIL SUCH TIME (IF AT ALL) AS THE CALIFORNIA LEGISLATURE
ENACTS A LAW THAT WOULD RENDER THE JURY TRIAL WAIVER SET FORTH IN SUBSECTION (c)(i) IMMEDIATELY ABOVE VALID AND ENFORCEABLE,
THE REFERENCE PROVISION SET FORTH IN SUBSECTION (c)(iii) BELOW SHALL APPLY TO ANY SUIT, ACTION OR PROCEEDING COMMENCED PRIOR TO
SUCH TIME IN LIEU OF THE JURY TRIAL WAIVER SET FORTH IN SUBSECTION (c)(i) ABOVE; PROVIDED THAT SUCH REFERENCE PROVISION SHALL
NOT APPLY TO ANY UNLAWFUL DETAINER ACTION OR ANY ACTION FOR EQUITABLE OR INJUNCTIVE RELIEF.

 

(iii)    REFEREE.

 

(A)    
The parties prefer that any dispute between them be resolved in litigation subject to a jury trial waiver as set forth
in Subsection (c)(i) above, but that method of dispute resolution is not currently available as a result of the decision of the
California Supreme Court in Grafton Partners v. Superior Court, 36 Cal. 4th 944 (Cal. 2005). Accordingly, until such time
(if at all) as the California legislature enacts a law that would render the jury trial waiver set forth in Subsection (c)(i)
hereof valid and enforceable, this Subsection (c)(iii) shall apply to any suit, action or proceeding commenced prior to such time
in lieu of the jury trial waiver set forth in Subsection (c)(i); provided that such reference provision shall not apply to any
unlawful detainer action or any action for equitable or injunctive relief.

 

(B)    
Other than a controversy, dispute or claim involving the appointment of a receiver or the exercise of other provisional remedies
(each, an “Excepted Claim”) (any one or more of which may be initiated pursuant to applicable law) or any unlawful
detainer action or any action for equitable or injunctive relief, any controversy, dispute or claim (each, a “Claim”)
among the parties arising out of or relating to this Lease, or any course of conduct, course of dealing, statement (whether
verbal or written) or action of any party hereto will be resolved by a reference proceeding in the State of California in accordance
with the provisions of Sections 638 et seq. of the California Code of Civil Procedure (“CCP”), or their successor
sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject
to the reference proceeding. Except as otherwise provided in this Agreement, venue for the reference proceeding will be in the
Superior Court or Federal District Court in the County or District where venue is otherwise appropriate under applicable law (the
“Court”).

 

(C)    
The referee shall be a retired judge or justice selected by mutual written agreement of the parties within thirty (30)
days after any party to this Agreement gives written notice to the other parties that it wishes to resolve a Claim (other than
an Excepted Claim) by a reference proceeding as contemplated herein. If the parties do not timely agree, the referee shall be
selected by the presiding judge of the Court (or his or her representative). A request for appointment of a referee may be heard
on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief were
not granted. The referee shall be appointed to sit with all of the powers provided by law. Each party shall have one peremptory
challenge pursuant to CCP Section 170.6. Pending appointment of the referee, the Court has power to issue temporary or provisional
remedies.

 

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(D)    The
parties agree that time is of the essence in conducting any reference proceeding. Accordingly, the referee shall be requested
to (1) set the matter for a status and trial-setting conference within fifteen (15) days after the date of selection of the referee,
(2) if practicable, try all issues of law or fact within ninety (90) days after the date of the conference and (3) report a statement
of decision within twenty (20) days after the matter has been submitted for decision. Any decision rendered by the referee will
be final, binding and conclusive, and judgment shall be entered pursuant to CCP Section 644(a).

 

(E)    The
referee will have power to expand or limit the amount and duration of discovery. The referee may set or extend discovery deadlines
or cutoffs for good cause, including a party’s failure to provide requested discovery for any reason whatsoever. Unless
otherwise ordered, no party shall be entitled to “priority” in conducting discovery, depositions may be taken by either
party upon seven (7) days’ written notice, and all other discovery shall be responded to within fifteen (15) days after
service. All disputes relating to discovery which cannot be resolved by the parties shall be submitted to the referee, whose decision
shall be final and binding.

 

(F)    Except
as expressly set forth herein, the referee shall determine the manner in which the reference proceeding is conducted, including
the time and place of hearings, the order of presentation of evidence, and all other questions that arise with respect to the
course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be conducted
without a court reporter, except that when any party so requests, a court reporter will be used at any hearing conducted before
the referee, and the referee will be provided a courtesy copy of the transcript. The party making such a request shall have the
obligation to arrange for and pay the court reporter. Subject to the referee’s power to award costs to the prevailing party,
the parties will equally share the cost of the referee and the court reporter at trial.

 

(G)    The
referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of
California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference
proceeding. The referee shall be empowered to enter equitable as well as legal relief, provide all temporary or provisional remedies,
enter equitable orders that will be binding on the parties and rule on any motion which would be authorized in a trial, including
motions for summary judgment or summary adjudication. At the close of the reference proceeding, the referee shall issue a decision
which disposes of all claims of the parties that are the subject of the reference.
 The referee’s decision shall be entered
by the Court as a judgment or an order in the same manner as if the action had been tried by the Court. The parties reserve the
right to appeal from the final judgment or order or from any other appealable decision or order entered by the referee. The parties
reserve the right to findings of fact, conclusions of law, a written statement of decision, and the right to move for a new trial
or a different judgment, which new trial, if granted, is also to be a reference proceeding under this provision.

 

(H)
If the enabling legislation that provides for appointment of a referee is repealed (and no successor statute is enacted), any
dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration.
The arbitration will be conducted by a retired judge or justice in accordance with the California Arbitration Act, CCP Sections
1280-1294.2 (as amended from time to time). The limitations with respect to discovery and the reserved rights, including, without
limitation, the reserved rights to appeal, set forth above shall apply to any such arbitration proceeding.

 

(I)
EACH PARTY RECOGNIZES AND AGREES THAT ALL DISPUTES RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT
BY A JURY, AND THAT SUCH PARTY IS IN EFFECT WAIVING ITS RIGHT TO TRIAL BY JURY IN AGREEING TO THIS REFERENCE PROVISION, AFTER
CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY AND
FOR THE MUTUAL BENEFIT OF ALL PARTIES AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY DISPUTE AMONG THE PARTIES
WHICH IN ANY WAY ARISES OUT OF OR IS RELATED TO THIS AGREEMENT.

 

(d)    Time
of Essence. Each of Tenant’s covenants herein is a condition and time is of the essence with respect to the performance
of every provision of this Lease.

 

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(e)    
Headings; Joint and Several. The article headings contained in this Lease are for convenience only and do not in
any way limit or amplify any term or provision hereof The terms “Landlord” and “Tenant*’ as used herein
shall include the plural as well as the singular, the neuter shall include the masculine and feminine genders and the obligations
herein imposed upon Tenant shall be joint and several as to each of the persons, firms or corporations of which Tenant may be
composed.

 

(f)    
Reserved Area. Tenant hereby acknowledges and agrees that the exterior walls of the Premises and the area between
the finished ceiling of the Premises and the slab of the floor of the Project there above have not been demised hereby and the
use thereof together with the right to install, maintain, use, repair and replace pipes, ducts, conduits, wiring and cabling leading
through, under or above the Premises or throughout the Project in locations which will not materially interfere with Tenant’s
use of the Premises and serving other parts of the Project are hereby excepted and reserved unto Landlord.

 

(g)    
NO OPTION. THE SUBMISSION OF THIS LEASE BY LANDLORD, ITS AGENT OR REPRESENTATIVE FOR EXAMINATION OR EXECUTION
BY TENANT DOES NOT CONSTITUTE AN OPTION OR OFFER TO LEASE THE PREMISES UPON THE TERMS AND CONDITIONS CONTAINED HEREIN OR A RESERVATION
OF THE PREMISES IN FAVOR OF TENANT, IT BEING INTENDED HEREBY THAT THIS LEASE SHALL ONLY BECOME EFFECTIVE UPON THE EXECUTION HEREOF
BY LANDLORD AND TENANT AND DELIVERY OF A FULLY EXECUTED LEASE TO TENANT.

 

(h)    Use
of Project Name; Improvements. Tenant shall not be allowed to use the name, picture or representation of the Project, or words
to that effect, in connection with any business carried on in the Premises or otherwise (except as Tenant’s address) without
the prior written consent of Landlord. In the event that Landlord undertakes any additional improvements on the Real Property
including but not limited to new construction or renovation or additions to the existing improvements, except as expressly set
forth in Section 11 (e) above. Landlord shall not be liable to Tenant for any noise, dust, vibration or interference with
access to the Premises or disruption in Tenant’s business caused thereby.

 

(i)    Rules
and Regulations. Tenant shall observe faithfully and comply strictly with the rules and regulations attached to this Lease
as Exhibit “B” and made a part hereof (the “Rules and Regulations”), and such other Rules
and Regulations as Landlord may from time to time reasonably adopt for the safety, care and cleanliness of the Project, the facilities
thereof, or the preservation of good order therein. Landlord shall not be liable to Tenant for violation of any such Rules and
Regulations, or for the breach of any covenant or condition in any lease by any other tenant in the Project. A waiver by Landlord
of any Rule or Regulation for any other tenant shall not constitute nor be deemed a waiver of the Rule or Regulation for this
Tenant.

 

(j)    Quiet
Possession, Upon Tenant’s paying the Basic Rental, Additional Rent and other sums provided hereunder and observing and
performing all of the covenants, conditions and provisions on Tenant’s part to be observed and performed hereunder, Tenant
shall have quiet possession of the Premises for the entire Term hereof, subject to all of the provisions of this Lease.

 

(k)    Rent-
All payments required to be made hereunder to Landlord (other than the Security Deposit) shall be deemed to be rent, whether or
not described as such.

 

(1)    Successors
and Assigns. Subject to the provisions of Article 15 hereof, all of the covenants, conditions and provisions of this
Lease shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives,
successors and assigns.

 

(m)    Notices.
Any notice required or permitted to be given hereunder shall be in writing and may be given by personal service evidenced by a
signed receipt or sent by registered or certified mail, return receipt requested, or via overnight courier, and shall be effective
upon proof of delivery, addressed to Tenant at the Premises with a copy to Tenant’s attorney, Joshua D. Brinen, Esq., at
7 Dev Street, Suite 1503, New York, New York 10007, or to Landlord at the management office for the Project, with a copy to Landlord,
c/o Cambra Realty, 9601 Wilshire Blvd., Penthouse, Beverly Hills, California 90210, Attn: Michael Schlesinger, and a copy to

 

    	30

    	 

    
 

Sutton,
Pakfar & Courtney LLP, 9777 Wilshire Blvd., Ste. 810, Beverly Hills, California 90212, Attn: Nader Pakfar, Esq. Either party
may by notice to the other specify a different address for notice purposes except that, upon Tenant’s taking possession
of the Premises, the Premises shall constitute Tenant’s address for notice purposes. A copy of all notices to be given to
Landlord hereunder shall be concurrently transmitted by Tenant to such party hereafter designated by notice from Landlord to Tenant.
Any notices sent by Landlord regarding or relating to eviction procedures, including without limitation three (3) day notices,
may be sent by regular mail.

 

(n)    Persistent
Delinquencies. In the event that Tenant shall be delinquent by more than fifteen (15) days in the payment of rent on three
(3) separate occasions in any twelve (12) month period, or if there are three (3) or more non-monetary defaults by Tenant in any
twelve (12) month period, without limiting any other rights or remedies of Landlord, Landlord shall have the right to terminate
this Lease by thirty (30) days written notice given by Landlord to Tenant within thirty (30) days of the last such delinquency.

 

(o)    Right
of Landlord to Perform. All covenants and agreements to be performed by Tenant under any of the terms of this Lease shall
be performed by Tenant at Tenant’s sole cost and expense and, except as otherwise expressly permitted under this Lease,
without any abatement of rent. If Tenant shall fail to pay any sum of money, other than rent, required to be paid by it hereunder
or shall fail to perform any other act on its part to be performed hereunder, and such failure shall continue beyond any applicable
cure period set forth in this Lease, Landlord may, but shall not be obligated to, without waiving or releasing Tenant from any
obligations of Tenant, make any such payment or perform any such other act on Tenant’s part to be made or performed as is
in this Lease provided. All sums so paid by Landlord and all reasonable incidental costs, together with interest thereon at the
rate specified in Section 20(e) from the date of such payment by Landlord, shall be payable to Landlord on demand
and Tenant covenants to pay any such sums, and Landlord shall have (in addition to any other right or remedy of Landlord) the
same rights and remedies in the event of the nonpayment thereof by Tenant as in the case of default by Tenant in the payment of
the rent.

 

(p)    Access,
Changes in Project, Facilities, Name.

 

(i)    Every
part of the Project except the inside surfaces of all walls, windows and doors bounding the Premises (including exterior building
walls, the rooftop, core corridor walls and doors and any core corridor entrance), and any space in or adjacent to the Premises
or within the Project used for shafts, stacks, pipes, conduits, fan rooms, ducts, electric or other utilities, sinks or other
building facilities, and the use thereof, as well as access thereto through the Premises for the purposes of operation, maintenance,
decoration and repair, are reserved to Landlord.

 

(ii)    Tenant
shall permit Landlord to install, use and maintain pipes, ducts and conduits within the walls, columns and ceilings of the Premises
and throughout the Project.

 

(iii)    Landlord
reserves the right, without incurring any liability to Tenant therefor, to make such changes in or to the Project and the fixtures
and equipment thereof, as well as in or to the street entrances, halls, passages, elevators, stairways and other improvements
thereof, as it may deem necessary or desirable.

 

(iv)    Landlord
may adopt any name for the Project and Landlord reserves the right, from time to time, to change the name and/or address of the
Project at any time.

 

(q)    Signing
Authority. If Tenant is a corporation, partnership or limited liability company, each individual executing this Lease on behalf
of said entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of said entity
in accordance with: (i) if Tenant is a corporation, a duly adopted resolution of the Board of Directors of said corporation or
in accordance with the By-laws of said corporation, (ii) if Tenant is a partnership, the terms of the partnership agreement, and
(iii) if Tenant is a limited liability company, the terms of its operating agreement, and that this Lease is binding upon said
entity in accordance with its terms. Concurrently with Tenant’s execution of this Lease, Tenant shall provide to Landlord
a copy of: (i) if Tenant is a corporation, such resolution of the Board of Directors authorizing the execution of this Lease on
behalf of such corporation, which copy of resolution shall be duly certified by the secretary or an assistant secretary of the
corporation to be a true copy of a resolution duly adopted by the Board of Directors of said corporation and shall

 

    	31

    	 

    
 

be
in a form reasonably acceptable to Landlord, (ii) if Tenant is a partnership, a copy of the provisions of the partnership agreement
granting the requisite authority to each individual executing this Lease on behalf of said partnership, and (iii) if Tenant is
a limited liability company, a copy of the provisions of its operating agreement granting the requisite authority to each individual
executing this Lease on behalf of said limited liability company. In the event Tenant fails to comply with the requirements set
forth in this Section 30(g),, then each individual executing this Lease shall be personally liable, jointly and severally
along with Tenant, for all of Tenant’s obligations in this Lease.

 

(r)    Identification
of Tenant.

 

(i)    If
Tenant constitutes more than one person or entity, (A) each of them shall be jointly and severally liable for the keeping, observing
and performing of all of the terms, covenants, conditions and provisions of this Lease to be kept, observed and performed by Tenant,
(B) the term “Tenant” as used in this Lease shall mean and include each of them jointly and severally, and (C) the
act of or notice from, or notice or refund to, or the signature of, any one or more of them, with respect to the tenancy of this
Lease, including but not limited to any renewal, extension, expiration, termination or modification of this Lease, shall be binding
upon each and all of the persons or entities executing this Lease as Tenant with the same force and effect as if each and all
of them had so acted or so given or received such notice or refund or so signed.

 

(ii)    If
Tenant is a partnership (or is comprised of two or more persons, individually and as co-partners of a partnership) or if Tenant’s
interest in this Lease shall be assigned to a partnership (or to two or more persons, individually and as co-partners of a partnership)
pursuant to Article 15 hereof (any such partnership and such persons hereinafter referred to in this Section 30(r)(ii)
as “Partnership Tenant”), the following provisions of this Lease shall apply to such Partnership Tenant:

 

(A)    
The liability of each of the parties comprising Partnership Tenant shall be joint and several.

 

(B)    
Each of the parties comprising Partnership Tenant hereby consents in advance to, and agrees to be bound by, any written
instrument which may hereafter be executed, changing, modifying or discharging this Lease, in whole or in part, or surrendering
all or any part of the Premises to the Landlord, and by notices, demands, requests or other communication which may hereafter
be given, by the individual or individuals authorized to execute this Lease on behalf of Partnership Tenant under Section 30(q)
above.

 

(C)    
Any bills, statements, notices, demands, requests or other communications given or rendered to Partnership Tenant or to
any of the parties comprising Partnership Tenant shall be deemed given or rendered to Partnership Tenant and to all such parties
and shall be binding upon Partnership Tenant and all such parties.

 

(D)    
If Partnership Tenant admits new partners, all of such new partners shall, by their admission to Partnership Tenant, be
deemed to have assumed performance of all of the terms, covenants and conditions of this Lease on Tenant’s part to be observed
and performed.

 

(E)    Partnership
Tenant shall give prompt notice to Landlord of the admission of any such new partners, and, upon demand of Landlord, shall cause
each such new partner to execute and deliver to Landlord an agreement in form satisfactory to Landlord, wherein each such new
partner shall assume performance of all of the terms, covenants and conditions of this Lease on Partnership Tenant’s part
to be observed and performed (but neither Landlord’s failure to request any such agreement nor the failure of any such new
partner to execute or deliver any such agreement to Landlord shall terminate the provisions of clause (D) of this Article 30(q)
(ii) or relieve any such new partner of its obligations thereunder).

 

(s)    Substitute
Premises. Landlord shall have the right at any time during the Term hereof, upon giving Tenant not less than one hundred five
(105) days prior notice, to relocate Tenant to space elsewhere in the Project of comparable size as to Premises, with Landlord
to pay all verified and previously approved costs and expenses incurred as a result of such movement to such new space. If Landlord
relocates Tenant to such new space, this Lease and each and all of its terms, covenants and conditions shall remain in
full force and effect and shall apply to such new space and such new space shall thereafter be deemed to be the “Premises”
as though Landlord and Tenant had entered into an express written amendment of this Lease with respect thereto.

 

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(t)    Survival
of Obligations. Any obligations of Tenant under this Lease shall survive the expiration or earlier termination of this Lease.

 

(u)    Confidentiality.
Tenant acknowledges that the content of this Lease and any related documents are confidential information. Tenant shall keep such
confidential information strictly confidential and shall not disclose such confidential information to any person or entity other
than Tenant’s financial, legal and space planning consultants and any proposed Transferees, or as Tenant may be compelled
to disclose by court order.

 

(v)    Governing
Law. This Lease shall be governed by and construed in accordance with the laws of the State of California. No conflicts of
law rules of any state or country (including, without limitation, California conflicts of law rules) shall be applied to result
in the application of any substantive or procedural laws of any state or country other than California. All controversies, claims,
actions or causes of action arising between the parties hereto and/or their respective successors and assigns, shall be brought,
heard and adjudicated solely and exclusively by the courts of the State of California, with venue in the County of Los Angeles.
Each of the parties hereto hereby consents to personal jurisdiction by the courts of the State of California in connection with
any such controversy, claim, action or cause of action, and each of the parties hereto consents to service of process by any means
authorized by California law and consent to the enforcement of any judgment so obtained in the courts of the State of California
on the same terms and conditions as if such controversy, claim, action or cause of action had been originally heard and adjudicated
to a final judgment in such courts. Each of the parties hereto further acknowledges that the laws and courts of California were
freely and voluntarily chosen to govern this Lease and to adjudicate any claims or disputes hereunder.

 

(w)    Office
of Foreign Assets Control. Tenant certifies to Landlord that (i) Tenant is not entering into this Lease, nor acting,
for or on behalf of any person or entity named as a terrorist or other banned or blocked person or entity pursuant to any law,
order, rule or regulation of the United States Treasury Department or the Office of Foreign Assets Control, and (ii) Tenant shall
not assign this Lease or sublease to any such person or entity or anyone acting on behalf of any such person or entity. Landlord
shall have the right to conduct all reasonable searches in order to ensure compliance with the foregoing. Tenant hereby agrees
to indemnify, defend and hold Landlord and the Landlord Parties harmless from any and all claims arising from or related to any
breach of the foregoing certification.

 

(x)    Financial
Statements. Within twenty (20) days after Tenant’s receipt of Landlord’s written request, Tenant shall provide
Landlord with current financial statements of Tenant and financial statements for the two (2) calendar or fiscal years (if Tenant’s
fiscal year is other than a calendar year) prior to the current financial statement year. Any such statements shall be prepared
in accordance with generally accepted accounting principles and, if the normal practice of Tenant, shall be audited by an independent
certified public accountant.

 

(y)    Exhibits.
The Exhibits attached hereto are incorporated herein by this reference as if fully set forth herein.

 

(z)    Independent
Covenants. This Lease shall be construed as though the covenants herein between Landlord and Tenant are independent (and not
dependent) and Tenant hereby expressly waives the benefit of any statute to the contrary and agrees that if Landlord fails to
perform its obligations set forth herein, Tenant shall not be entitled to make any repairs or perform any acts hereunder at Landlord’s
expense or to set off of any of the rent or other amounts owing hereunder against Landlord.

 

(aa)    Counterparts.
This Lease may be executed in counterparts, each of which shall be deemed an original, but such counterparts, when taken together,
shall constitute one agreement.

 

(bb)    Non-Discrimination.
Tenant herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons
claiming under or through him or her, and this Lease is made and accepted upon and subject to the following conditions:

 

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“That
there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed,
religion, sex, marital status, national origin or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure or
enjoyment of the Premises, nor shall Tenant himself or herself, or any person claiming under or through him or her, establish
or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use
or occupancy of tenants, subtenants or vendees in the Premises.”

 

ARTICLE
31

 

OPTION TO EXTEND

 

(a)    
Option Right. Landlord hereby grants the Tenant named in this Lease (the “Original Tenant”) one
(1) option (each an “Option”) to extend the Term for the entire Premises for a period of five (5) years (the
“Option Term”), which Option shall be exercisable only by written notice delivered by Tenant to Landlord as
set forth below. The rights contained in this Article 31 shall be personal to the Original Tenant and may only be exercised
by the Original Tenant (and not any assignee, sub lessee or other transferee of the Original Tenant’s interest in this Lease)
if the Original Tenant occupies the entire Premises as of the date of Tenant’s Acceptance (as defined in Section 31(c)
below).

 

(b)    
Option Rent. Within thirty (30) days after Landlord’s receipt of an Interest Notice (as defined below), Landlord
shall deliver to Tenant in writing Landlord’s determination of prevailing market value for purposes of calculating the Basic
Rental due during the Option Term(s) (the “Option Rent”). The Option Rent shall be equal to the Market Rent
(as defined below), but in no event shall the Option Rent be less than Tenant is paying under the Lease on the month immediately
preceding the Option Term for monthly Basic Rental, including all escalations, Direct Costs, Additional Rent and other charges.
“Market Rent” shall mean a sum equal to the fair rental value, including all escalations, Direct Costs, additional
rent and other charges at which tenants, as of the time of Landlord’s Option Rent Notice (as defined below), are entering
into leases for non-sublease space which is not encumbered by expansion rights and which is comparable in size, location and quality
to the Premises in non-renewal transactions for a term comparable to the Option Term, in an arms-length transaction, which comparable
space is located in the Project and office buildings comparable to the Project within a five (5) mile radius of the Project (as
reasonably determined by Landlord), taking into consideration reasonable monetary concessions (i.e., free rent and improvements)
and the value of the existing improvements in the Premises to Tenant, as compared to the value of the existing improvements in
such comparable space, with such value to be based upon the age, quality and layout of the improvements and the extent to which
the same could be utilized by Tenant with consideration given to the fact that the improvements existing in the Premises are specifically
suitable to Tenant. The determination of Market Rent shall not take into account any period of rental abatement, if any, granted
to tenants in comparable transactions for the design, permitting and construction of tenant improvements in such comparable spaces.
In addition to the Option Rent, the Base Year for each Option Term shall be adjusted from that which is set forth in Article
LP. of the Basic Lease Provisions to the year in which the Option Term begins.

 

(c)    
Exercise of Option. The Option shall be exercised by Tenant only in the following manner: (i) Tenant shall not be
in default, and shall not have been in default under this Lease more than twice, on the delivery date of the Interest Notice and
Tenant’s Acceptance; (ii) Tenant shall deliver written notice (“Interest Notice”) to Landlord not more
than nine (9) months nor less than six (6) months prior to the expiration of the Term, stating that Tenant is interested in exercising
the Option; (iii) within fifteen (15) business days of Landlord’s receipt of Tenant’s written notice, Landlord shall
deliver notice (“Option Rent Notice”) to Tenant setting forth the Option Rent; and (iv) if Tenant desires to
exercise such Option, Tenant shall provide Landlord written notice within ten (10) business days after receipt of the Option Rent
Notice (“Tenant’s Acceptance”). Tenant’s failure to deliver the Interest Notice on or before the
date specified above shall be deemed to constitute Tenant’s election not to exercise the Option. Tenant’s failure
to deliver Tenant’s Acceptance on or before the date specified above shall be deemed to be an acceptance by Tenant of Landlord’s
determination of Option Rent. If Tenant timely and properly exercises its Option, the Term shall be extended for the Option Term
upon all of the terms and conditions set forth in this Lease, except that
the rent for the Option Term shall be as indicated in the Option Rent Notice.

 

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ARTICLE
32

 

SIGNAGE
DIRECTORY

 

Provided
Tenant is not in default hereunder, Tenant, at Tenant’s sole cost and expense, shall have the right to have its business
name and corresponding suite number listed in the lobby directory during the Term. Provided Tenant is not in default hereunder,
Tenant shall have the right, at Tenant’s sole cost and expense to install a Project standard sign on the entrance of the
Premises in conformity with all applicable laws and ordinances (“Tenant’s Signage”). Tenant’s Signage
shall be subject to Landlord’s approval as to, without limitation, size, design, location, graphics, materials, colors and
similar specifications and shall be consistent with the exterior design, materials and appearance of the Project and the Project’s
signage program and shall be further subject to all matters of record and all applicable governmental laws, rules, regulations,
codes and Tenant’s receipt of all permits and other governmental approvals and any applicable covenants, conditions and
restrictions. Tenant’s Signage shall be personal to the Tenant and may not be assigned to any assignee or sub lessee, or
any other person or entity. Landlord has the right, but not the obligation, to oversee the installation of Tenant’s Signage.
The cost to maintain and operate, if any, Tenant’s Signage shall be paid for by Tenant, and Tenant shall be separately metered
for such expense (the cost of separately metering any utility usage shall also be paid for by Tenant). Upon the expiration of
the Term, or other earlier termination of this Lease, Tenant shall, at Tenant’s sole cost, cause the removal of Tenant’s
Signage (provided that Landlord shall have the right, at its election, to perform such removal on behalf of Tenant, at
Tenant’s expense). Such costs shall (i) be payable within ten (10) business days following written demand therefor from
Landlord, and (ii) include, without limitation, the cost to repair and restore the Project to its original condition, normal wear
and tear excepted.

 

ARTICLE
33

 

ASBESTOS
DISCLOSURES

 

Tenant
acknowledges that Landlord has advised Tenant that the Project contains or, because of its age, is likely to contain, asbestos-containing
materials (“ACMs”). If Tenant undertakes any Alterations or repairs to the Premises (to the extent permitted under
Article 9), Tenant shall, in addition to complying with the requirements of Article 9, undertake the Alterations
or repairs in a manner that avoids disturbing any ACMs present in the Project. If ACMs are likely to be disturbed in the course
of such work, Tenant shall encapsulate or remove the ACMs in accordance with an approved asbestos-removal plan and otherwise in
accordance with all applicable environmental laws, including giving all notices required by the California Health and Safety Code.

 

[The
remainder of this page is intentionally left blank. Signatures are on the following page.]

 

    	35

    	 

    
 

IN
WITNESS WHEREOF, the parties have executed this Lease, consisting of the foregoing provisions and Articles, including all exhibits
and other attachments referenced therein, as of the date first above written.

 

	“LANDLORD”	CARRILLO FOSTER LLC,
	 	a Delaware limited liability company
	 	By:	/s/
    Thomas J. Hofheimer
	 	 	Name:	Thomas J. Hofheimer
	 	 	Its:	Vice President

 

	“TENANT”	WOWIO, INC.,
	 	a Texas corporation
	 	By:	/s/
    Brian Altounian
	 	 	Name:	Brian Altounian
	 	 	Its:	Vice President

 

	 	By:	 
	 	 	Name:	
	 	 	Its:	

 

SIGNATURE
PAGE TO STANDARD OFFICE LEASE

 

    	36

    	 

    

 

EXHIBIT
“A”

 

PREMISES

 

[TO
BE PROVIDED]

 

*    This
Exhibit “A” is provided for informational purposes only and is intended to be only an approximation of the
layout of the Premises and shall not be deemed to constitute any representation by Landlord as to the exact layout or configuration
of the Premises.

 

    	37

    	 

    

 

EXHIBIT
“B”

 

RULES
AND REGULATIONS

 

1.    
No sign, advertisement or notice shall be displayed, printed or affixed on or to the Premises or to the outside or inside of the
Project or so as to be visible from outside the Premises or Project without Landlord’s prior written consent. Landlord shall
have the right to remove any non-approved sign, advertisement or notice, without notice to and at the expense of Tenant, and Landlord
shall not be liable in damages for such removal. All approved signs or lettering on doors and walls shall be printed, painted,
affixed or inscribed at the expense of Tenant by Landlord or by a person selected by Landlord and in a manner and style acceptable
to Landlord.

 

2.    
Tenant shall not obtain for use on the Premises ice, waxing, cleaning, interior glass polishing, rubbish removal, towel
or other similar services, or accept barbering or boot blackening, or coffee cart services, milk, soft drinks or other like services
on the Premises, except from persons authorized by Landlord and at the hours and under regulations fixed by Landlord. No vending
machines or machines of any description shall be installed, maintained or operated upon the Premises without Landlord’s
prior written consent.

 

3.    
The sidewalks, halls, passages, exits, entrances, elevators and stairways shall not be obstructed by Tenant or used for
any purpose other than for ingress and egress from Tenant’s Premises. Under no circumstances is trash to be stored in the
corridors. Notice must be given to Landlord for any large deliveries. Furniture, freight and other large or heavy articles, and
all other deliveries may be brought into the Project only at times and in the manner designated by Landlord, and always at Tenant’s
sole responsibility and risk. Landlord may impose reasonable charges for use of freight elevators after or before normal business
hours. All damage done to the Project by moving or maintaining such furniture, freight or articles shall be repaired by Landlord
at Tenant’s expense. Tenant shall not take or permit to be taken in or out of entrances or passenger elevators of the Project,
any item normally taken, or which Landlord otherwise reasonably requires to be taken, in or out through service doors or on freight
elevators. Tenant shall move all supplies, furniture and equipment as soon as received directly to the Premises, and shall move
all waste that is at any time being taken from the Premises directly to the areas designated for disposal.

 

4.    
Toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for any purpose other than for which they were
constructed and no foreign substance of any kind whatsoever shall be thrown therein.

 

5.    
Tenant shall not overload the floor of the Premises or mark, drive nails, screw or
drill into the partitions, ceilings or floor or in any way deface the Premises except to install artwork and shelving that is
of a general office nature. Tenant shall not place typed, handwritten or computer generated signs in the corridors or any other
common areas. Should there be a need for signage additional to the Project standard tenant placard, a written request shall be
made to Landlord to obtain approval prior to any installation. All costs for said signage shall be Tenant’s responsibility.

 

6.    
In no event shall Tenant place a load upon any floor of the Premises or portion of any such flooring exceeding the floor load
per square foot of area for which such floor is designed to carry and which is allowed by law, or any machinery or equipment which
shall cause excessive vibration to the Premises or noticeable vibration to any other part of the Project. Prior to bringing any
heavy safes, vaults, large computers or similarly heavy equipment into the Project, Tenant shall inform Landlord in writing of
the dimensions and weights thereof and shall obtain Landlord’s consent thereto. Such consent shall not constitute a representation
or warranty by Landlord that the safe, vault or other equipment complies, with regard to distribution of weight and/or vibration,
with the provisions of this Rule 6 nor relieve Tenant from responsibility for the consequences of such noncompliance, and any
such safe, vault or other equipment which Landlord determines to constitute a danger of damage to the Project or a nuisance to
other tenants, either alone or in combination with other heavy and/or vibrating objects and equipment, shall be promptly removed
by Tenant, at Tenant’s cost, upon Landlord’s written notice of such determination and demand for removal thereof.

 

    	38

    	 

    
 

7.    
Tenant shall not use or keep in the Premises or Project any kerosene, gasoline or inflammable, explosive or combustible
fluid or material, or use any method of heating or air-conditioning other than that supplied by Landlord.

 

8.    
Tenant shall not lay linoleum, tile, carpet or other similar floor covering so that the same shall be affixed to the floor of
the Premises in any manner except as approved by Landlord.

 

9.    
Tenant shall not install or use any blinds, shades, awnings or screens in connection with any window or door of the Premises and
shall not use any drape or window covering facing any exterior glass surface other than the standard drapes, blinds or other window
covering established by Landlord.

 

10.    
Tenant shall cooperate with Landlord in obtaining maximum effectiveness of the cooling system by closing window coverings
when the sun’s rays fall directly on windows of the Premises. Tenant shall not obstruct, alter, or in any way impair the
efficient operation of Landlord’s heating, ventilating and air-conditioning system. Tenant shall not tamper with or change
the setting of any thermostats or control valves.

 

11.    
The Premises shall not be used for manufacturing or for the storage of merchandise except as such storage may be incidental
to the permitted use of the Premises. Tenant shall not, without Landlord’s prior written consent, occupy or permit any portion
of the Premises to be occupied or used for the manufacture or sale of liquor or tobacco in any form, or a barber or manicure shop,
or as an employment bureau. The Premises shall not be used for lodging or sleeping or for any improper, objectionable or immoral
purpose. No auction shall be conducted on the Premises.

 

12.    
Tenant shall not make, or permit to be made, any unseemly or disturbing noises, or disturb or interfere with occupants
of Project or neighboring buildings or premises or those having business with it by the use of any musical instrument, radio,
phonographs or unusual noise, or in any other way.

 

13.    
No bicycles, vehicles or animals of any kind shall be brought into or kept in or about the Premises, and no cooking shall
be done or permitted by any tenant in the Premises, except that the preparation of coffee, tea, hot chocolate and similar items
for tenants, their employees and visitors shall be permitted. No tenant shall cause or permit any unusual or objectionable odors
to be produced in or permeate from or throughout the Premises. The foregoing notwithstanding, Tenant shall have the right to use
a microwave and to heat microwavable items typically heated in an office. No hot plates, toasters, toaster ovens or similar open
element cooking apparatus shall be permitted in the Premises.

 

14.    
The sashes, sash doors, skylights, windows and doors that reflect or admit light and air into the halls, passageways or other
public places in the Project shall not be covered or obstructed by any tenant, nor shall any bottles, parcels or other articles
be placed on the window sills.

 

15.    
No additional locks or bolts of any kind shall be placed upon any of the doors or windows by any tenant, nor shall any
changes be made in existing locks or the mechanisms thereof unless Landlord is first notified thereof, gives written approval,
and is furnished a key therefor. Each tenant must, upon the termination of his tenancy, give to Landlord all keys and key cards
of stores, offices, or toilets or toilet rooms, either furnished to, or otherwise procured by, such tenant, and in the event of
the loss of any keys so furnished, such tenant shall pay Landlord the cost of replacing the same or of changing the lock or locks
opened by such lost key if Landlord shall deem it necessary to make such change. If more than two keys for one lock are desired,
Landlord will provide them upon payment therefor by Tenant. Tenant shall not key or re-key any locks. All locks shall be keyed
by Landlord’s locksmith only.

 

16.    
Landlord shall have the right to prohibit any advertising by any tenant which, in Landlord’s opinion, tends to impair
the reputation of the Project or its desirability as an office building and upon written notice from Landlord any tenant shall
refrain from and discontinue such advertising.

 

    	39

    	 

    

 

17.    
Landlord reserves the right to control access to the Project by all persons after reasonable hours of generally recognized
business days and at all hours on Sundays and legal holidays and may at all times control access to the equipment areas of the
Project outside the Premises. Each tenant shall be responsible for all persons for whom it requests after hours access and shall
be liable to Landlord for all acts of such persons. Landlord shall have the right from time to time to establish reasonable rules
and charges pertaining to freight elevator usage, including the allocation and reservation of such usage for tenant’ initial
move-in to their premises, and final departure therefrom. Landlord may also establish from time to time reasonable rules and charges
for accessing the equipment areas of the Project, including the risers, rooftops and telephone closets.

 

18.    
Any person employed by any tenant to do janitorial work shall, while in the Project and outside of the Premises, be subject
to and under the control and direction of the Office of the Project or its designated representative such as security personnel
(but not as an agent or servant of Landlord, and the Tenant shall be responsible for all acts of such persons).

 

19.    
All doors opening on to public corridors shall be kept closed, except when being used for ingress and egress. Tenant shall
cooperate and comply with any reasonable safety or security programs, including fire drills and air raid drills, and the appointment
of “fire wardens” developed by Landlord for the Project, or required by law. Before leaving the Premises unattended,
Tenant shall close and securely lock all doors or other means of entry to the Premises and shut off all lights and water faucets
in the Premises.

 

20.    
The requirements of tenants will be attended to only upon application to the Office of the Project.

  
 

21.    
Canvassing, soliciting and peddling in the Project are prohibited and each tenant shall cooperate to prevent the same.

 

22.    
All office equipment of any electrical or mechanical nature shall be placed by tenants in the Premises in settings approved by
Landlord, to absorb or prevent any vibration, noise or annoyance.

 

23.    
No air-conditioning unit or other similar apparatus shall be installed or used by any tenant without the prior written
consent of Landlord. Tenant shall pay the cost of all electricity used for air-conditioning in the Premises if such electrical
consumption exceeds normal office requirements, regardless of whether additional apparatus is installed pursuant to the preceding
sentence.

 

24
     There shall not be used in any space, or in the public halls of the Project, either by any
tenant or others, any hand trucks except those equipped with rubber tires and side guards.

 

25.    
All electrical ceiling fixtures hung in offices or spaces along the perimeter of the Project must be fluorescent and/or of a quality,
type, design and bulb color approved by Landlord. Tenant shall not permit the consumption in the Premises of more than 2lA
watts per net usable square foot in the Premises in respect of office lighting nor shall Tenant permit the consumption in
the Premises of more than 1V4 watts per net usable square foot of space in the Premises in respect of the power outlets therein,
at any one time. In the event that such limits are exceeded, Landlord shall have the right to require Tenant to remove lighting
fixtures and equipment and/or to charge Tenant for the cost of the additional electricity consumed.

 

26.    
Parking.

 

(a)    
Project parking facility hours shall be determined by Landlord from time to time by Landlord.

(b)    
Automobiles must be parked entirely within the stall lines on the floor.

(c)    
All directional signs and arrows must be observed.

(d)    
The speed limit shall be 5 miles per hour.

(e)    
Parking is prohibited in areas not striped for parking.

(f)    
Parking cards or any other device or form of identification supplied by Landlord (or its operator) shall remain the property of
Landlord (or its operator). Such parking identification device must be displayed as requested and may not be mutilated in any
manner. The serial number of the parking identification device may not be obliterated. Devices are not transferable
or assignable and any device in the possession of an unauthorized holder will be void. There will be a replacement charge to the
Tenant or person designated by Tenant of Twenty-Five and 00/100 Dollars ($25.00) for loss of any parking card. There shall be
a security deposit of Twenty-Five and 00/100 Dollars ($25.00) due at issuance for each card key issued to Tenant.

 

    	40

    	 

    
 

(g)    The
monthly rate for parking is payable one (1) month in advance and must be paid by the third business day of each month. Failure
to do so will automatically cancel parking privileges and a charge at the prevailing daily rate will be due. No deductions or
allowances from the monthly rate will be made for days parker does not use the parking facilities.

 

(h)    Tenant
may validate visitor parking by such method or methods as the Landlord may approve, at the validation rate from time to time generally
applicable to visitor parking.

 

(i)    Landlord
(and its operator) may refuse to permit any person who violates the within rules to park in the Project parking facility, and
any violation of the rules shall subject the automobile to removal from the Project parking facility at the parker’s expense.
In either of said events, Landlord (or its operator) shall refund a prorata portion of the current monthly parking rate and the
sticker or any other form of identification supplied by Landlord (or its operator) will be returned to Landlord (or its operator).

 

(j)    Project
parking facility managers or attendants are not authorized to make or allow any exceptions to these Rules and Regulations.

 

(k)    All
responsibility for any loss or damage to automobiles or any personal property therein is assumed by the parker.

 

(1)    Loss
or theft of parking identification devices from automobiles must be reported to the Project parking facility manager immediately,
and a lost or stolen report must be filed by the parker at that time.

 

(m)    The
parking facilities are for the sole purpose of parking one automobile per space. Washing, waxing, cleaning or servicing of any
vehicles by the parker or his agents is prohibited.

 

(n)    Landlord
(and its operator) reserves the right to refuse the issuance of monthly stickers or other parking identification devices to any
Tenant and/or its employees who refuse to comply with the above Rules and Regulations and all City, State or Federal ordinances,
laws or agreements.

 

(o)
Tenant agrees to acquaint all employees with these Rules and Regulations.

 

(p)
No vehicle shall be stored in the Project parking facility for a period of more than one (1) week.

 

27.    
The Project is a non-smoking Project. Smoking or carrying lighted cigars or cigarettes in the Premises or the Project,
including the elevators in the Project, is prohibited.

 

28.    
Tenant shall not, without Landlord’s prior written consent (which consent may be granted or withheld in Landlord’s
absolute discretion), allow any employee or agent to carry any type of gun or other firearm in or about any of the Premises, Building
or Project.

 

    	41

    	 

    
 

EXHIBIT
“C”

 

NOTICE
OF TERM DATES 

AND
TENANT’S PROPORTIONATE SHARE

 

	TO:	 	 	DATE:	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 

	RE:	Lease dated _________, 20
    ____, between ____________________________________________________
	 	________________________________ (“Lanlord”),
    and _______________________________________
	 	________________________________ (“Tenant”),
    concerning Suite _________, located at
	 	_________________________________________________________.

 

Ladies and Gentlemen:

 

In accordance with the Lease, Landlord
wishes to advise and /or confirm the following :

 

1.    That
the Premises have been accepted herewith by the Tenant as being substantially complete in accordance with the Lease and that there
is no deficiency in construction.

 

2.    That
the Tenant has taken possession of the Premises and acknowledges that under the provisions of the Lease the Term of said Lease
shall commence as of_____________________ for a term of _________________ ending on _______________________.

 

3.    That
in accordance with the Lease, Basic Rental commenced to accrue on _______________________.

 

4.    If
the Commencement Date of the Lease is other than the first day of the month, the first billing will contain a prorate adjustment.
Each billing thereafter shall be for the full amount of the monthly installment as provided for in said Lease.

 

5.    Rent
is due and payable in advance on the first day of each and every month during the Term of said Lease. Your rent checks should
be made payable to ______________________________ at _________________.

 

6.    The
exact number of rentable square feet within the Premises is _______________ square feet.

7.    Tenant’s
Proportionate Share, as adjusted based upon the exact number of rentable square feet within the Premises is _____________%.

 

AGREED AND ACCEPETED:

 

TENANT:

 

	WOWIO, INC.,	 
	a Texas corporation	 
	By:	/s/
    Brian Altounian	 
	 	Its:	CFO & President	 

 

EXHIBIT
ONLY 

 ***DO
NOT SIGN - INITIAL ONLY***

 

    	42

    	 

    
 

EXHIBIT
“D”

 

EXLCUSIONS
TO OPERATING COSTS

 

THE
DEFINITION OF “OPERATING COSTS,” AS USED IN THIS LEASE, SHALL EXCLUDE THE FOLLOWING:

 

a.    Any
ground lease rental;

 

b.    Except
as otherwise expressly permitted in Section 3(c)(ii) of this Lease, costs of capital repairs, improvements and equipment
and costs of capital tools not in excess of Ten Thousand Dollars ($10,000) in any twelve (12) month accounting period;

 

c.    Rentals
for items (except when needed in connection with normal repairs and maintenance of permanent systems) which if purchased, rather
than rented, would constitute a capital improvement which is specifically excluded in section (b) above (excluding, however, equipment
not affixed to the Project which is used in providing janitorial or similar services);

 

d.    Costs
incurred by Landlord for the repair of damage to the Project, to the extent that Landlord is reimbursed by insurance proceeds;

 

e.    Costs,
including permit, license and inspection costs, incurred with respect to the installation of tenant or other occupants improvements
made for tenants or other occupants in the Project or incurred in renovating or otherwise improving, decorating, painting or redecorating
vacant space for tenants or other occupants of the Project; provided, however, such exclusion does not include costs incurred
with respect to the common areas of the Project or that service Project tenants in general rather than one particular tenant;

 

f.    Depreciation,
amortization and interest payments, except as provided herein pursuant to sections (b) and (c) above, and except on materials,
tools, supplies and vendor-type equipment purchased by Landlord to enable Landlord to supply services Landlord might otherwise
contract for with a third party where such depreciation, amortization and interest payments would otherwise have been included
in the charge for such third party’s services, all as determined in accordance with sound real estate management and accounting
principles, consistently applied and when depreciation or amortization is permitted or required, the item shall be amortized over
its reasonably anticipated useful life (as reasonably determined by
 Landlord);

 

g.    Leasing
commissions, attorney’s fees, space planning costs, and other costs and expenses in connection with negotiations with present
or prospective tenants or other occupants of the Project, except those attorney’s fees and other costs and expenses incurred
relating to Operating Costs, enforcement of Project Rules and Regulations, and such other matters relating to the maintenance
of standards required by Landlord under this Lease;

 

h.    Expenses
in connection with services or other benefits which are neither offered nor
provided to Tenant, or for which Tenant is charged for directly but which are provided to another tenant or occupant of the Project;

 

i.    Costs
incurred by Landlord due to the violation by Landlord or any tenant or occupant
of the terms and conditions of a lease of space in the Project;

 

j.    Overhead
and profit increments paid to Landlord or to subsidiaries or affiliates of Landlord
for goods and/or services in the Project to the extent the same exceeds the costs of such goods and/or services rendered by unaffiliated
third parties on a competitive basis of comparable skill, competence, stature and reputation;

 

k.    Except
as specifically permitted by section (b) above, interest, principal, points and fees on debts or amortization on any mortgage
or mortgages or any other debt instrument encumbering the Project;

 

1.    Except
for making repairs or keeping permanent systems in operation while repairs are being made, rentals and other related expenses
incurred in leasing air conditioning systems, or elevators, excluding equipment not affixed to the Project which is used in providing
janitorial or similar services;

 

    	43

    	 

    
 

m.    All
items and services for which Tenant or any occupant of the Project actually reimburses Landlord (other than through Operating
Costs);

 

n.    Advertising
and promotional expenditures primarily directed toward leasing tenant space in the Project, and the costs of acquiring and installing
signs in or on the Project (except the Building directories) identifying the owner of the Project or any tenant or occupant of
the Building;

 

o.    Electric
power costs for which any tenant or occupant directly contracts with the

 

local
public service company (provided that the charge for such services shall be computed for purposes of the gross-up provisions to
reflect an average charge for power costs);

 

p.    Services
provided, taxes attributable to, and costs incurred in connection with upgrading the Project to comply with handicap, life, fire
and safety codes in effect and enforced prior to the date upon which the building permit for the Project was issued;

 

q.    Tax
penalties incurred as a result of Landlord’s negligence, inability or unwillingness
to make payments when due, unless Landlord in good faith disputes a charge and subsequently loses or settles that dispute or the
penalties are caused by Tenant’s failure to timely pay Rent or Operating Costs, as such terms are defined in this Lease;

 

r.    Costs
arising from the presence of Hazardous Material that was installed by Landlord,
its agents or employees in or about the Building or Project (including without limitation in the ground water or soil underlying
the Building or Project), and that, at the time of such installation, Landlord knew or should have known was Hazardous Material;

 

s.    Capital
costs for sculpture, paintings, or other objects of art; and

 

t.    Landlord’s
general corporate overhead and general and administrative expenses, except
to the extent related to the operation and management of the Building.

 

    	44

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