Document:

Exhibit 10.11.1

 

FIRST AMENDMENT TO OFFICE LEASE

 

THIS FIRST AMENDMENT TO OFFICE LEASE (this “Amendment”) is entered into this 15  day of July, 2016 (“Effective Date”) by and between AveXis, INC., a Delaware corporation (“Tenant”)  and WANXIANG BANNOCKBURN, L.L.C., an Illinois limited liability company (“Landlord”).

 

RECITALS

 

A.                               Landlord and Tenant entered into that certain Office Lease dated as of July, 2015 (the “Lease”)  with respect to those certain premises previously known as “Suite 160” (“Suite 160”)  comprised of approximately 2,988 rentable square feet and “Suite 150” (“Suite 150”),  comprised of approximately 1,807 rentable square feet (Suite 150, together with Suite 160, the “Existing Premises”) located in the building commonly known as Bannockburn Atrium, 2275 Half Day Road, Bannockburn, Illinois (the “Building”).

 

B.                               Tenant has requested, and Landlord and Tenant have agreed to relocate the leased premises to certain premises containing approximately 15,668 rentable square feet in the northeast wing on the second floor of the Building (the “Relocation Premises”, as depicted in the plan attached hereto as Exhibit A) which Relocation Premises will be known as “Suite 200”.

 

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

 

1.                                 Recitals. The Recitals are incorporated into this Amendment as if fully set forth in this Section 1.

 

2.                                 Definitions. All terms used herein, unless otherwise specified, shall have the meaning ascribed to them in the Lease.

 

3.                                 Identification of Existing Premises. Tenant hereby acknowledges and agrees that, while the Existing Premises are currently known as Suite 160, the Existing Premises are comprised of the premises identified in the Lease as Suite 150 and Suite 160.

 

4.                                 Relocation Premises.

 

(a)                                 Turnover Date. Commencing on the later of: (i) the date that the Relocation Premises Work (as defined below) is substantially complete, and (ii) November 1, 2016 (the “Turnover Date”), (A) Tenant shall have the right to take possession of the Relocation Premises; and (B) the term “Premises” shall be defined as the Existing Premises and the Relocation Premises.

 

(b)                                 Relocation Commencement Date. Commencing on the date that is ten (10) days subsequent to the Turnover Date (the “Relocation Commencement Date”) the Premises shall consist of the Relocation Premises, only.

 

 

(c)                                  Surrender.      On or before the Relocation Commencement Date, Tenant will surrender and deliver up the Existing Premises to Landlord, broom clean, in good order, condition and repair, reasonable wear and tear excepted, and otherwise in strict conformance with the terms of the Lease. “Broom clean” means free from all debris, dirt, rubbish, and personal property of Tenant.

 

(d)                                      Removal.       Prior to the Relocation Commencement Date, Tenant shall remove from the Existing Premises Tenant’s Property. Tenant shall repair any injury or damage to the Existing Premises which may result from such removal. If Tenant does not remove Tenant’s Property from the Existing Premises prior to the Relocation Commencement Date, then Landlord may, at its option, remove the same and deliver the same to any other place of business of Tenant or warehouse the same, and Tenant shall pay the cost of such removal (including the repair of any injury or damage to the Existing Premises resulting from such removal), delivery and warehousing to Landlord on demand, or Landlord may treat Tenant’s Property as having been conveyed to Landlord with this Amendment as a bill of sale, without further payment or credit by Landlord to Tenant.

 

(e)                                  Holdover.       If Tenant retains possession of the Existing Premises or any part thereof after the Relocation Commencement Date, then Tenant shall pay to Landlord Rent, at one hundred fifty percent (150%) of the rate payable for the month immediately preceding said holding over (including increases for Additional Rent which Landlord may reasonably estimate), computed on a per diem basis, for each month or part thereof (without reduction for any such partial month) that Tenant remains in possession of the Existing Premises. The provisions of this paragraph do not limit the Landlord’s rights of re-entry or any other right of Landlord under the Lease.

 

5.                                      Term.             The Termination Date of the Lease shall hereafter be defined as the date that is seven (7) years and seven (7) months subsequent to the Relocation Commencement Date.

 

6.                                      Base Year.  Commencing  on the Relocation Commencement Date, (a) “Base Expense Year” shall be deemed to mean “2017”; and (b) “Base Tax Year” shall be deemed to mean “2017”.

 

7.                                      Building Hours and Security.  Normal Building hours are 6 AM to 7 PM M-F and 6 AM to 1 PM on Saturday. Tenant shall have the right to install its proprietary security system at the entrance to the Relocation Premises, subject to Landlord’s prior written approval, which shall not be unreasonably withheld, and shall have 24/7/52 access to the Building using the Landlord provided security key fob.

 

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8.                                      Rent. Prior to the Relocation Commencement Date, Tenant shall continue to pay Base Rent, the Rent Adjustment, Additional Rent, and the Electric Charge, all as provided for in the Lease. Commencing on the Relocation Commencement Date (the “Relocation Rent Commencement Date”), Tenant shall pay Rent in accordance with the following Rent Schedule and shall pay Additional Rent in the manner and at the time specified in the Lease:

 

Base Rent Schedule:

 

	
Period
    	
 
    	
Monthly Base Rent
    	
 
    
	
Relocation Commencement   Date – date that is eight (8) months subsequent to the Relocation   Commencement Date
    	
 
    	
$
    	
10,189.38
    	
**
    
	
Subsequent twelve (12)   months
    	
 
    	
$
    	
33,294.50
    	
 
    
	
Subsequent twelve (12)   months
    	
 
    	
$
    	
33,947.33
    	
 
    
	
Subsequent twelve (12)   months
    	
 
    	
$
    	
34,600.17
    	
 
    
	
Subsequent twelve (12)   months
    	
 
    	
$
    	
35,253.00
    	
 
    
	
Subsequent twelve (12)   months
    	
 
    	
$
    	
35,905.83
    	
 
    
	
Subsequent twelve (12)   months
    	
 
    	
$
    	
36,558.67
    	
 
    
	
Subsequent eleven (11)   months
    	
 
    	
$
    	
37,211.50
    	
 
    

 

Landlord and Tenant shall enter into the Memorandum of Understanding attached hereto as Exhibit B to memorialize, among other things, the Relocation Rent Commencement Date and Termination Date.

 

9.                                      Rent Abatement. Pursuant to Section 8, above, but subject to the terms hereof, Tenant shall receive an eight (8) month gross rent abatement on 10,873 square feet, which abatement is equal to the aggregate amount of $184,841.00 (the “Abatement Amount”). In lieu of utilizing the Abatement Amount toward rent abatement, (a) Tenant shall have the right to apply a portion of the Abatement Amount, up to a maximum amount equal to $5.00 per rentable square foot in the Relocation Premises (i.e., $78,340), toward the cost of the Relocation Premises Work (such applied amount of the Abatement Amount, the “Applied Abatement Amount”); and (b) in the event of such application, the Abatement Amount shall be reduced by the Applied Abatement Amount and the Base Rent Schedule shall be amended to reflect such reduction.

 

10.                               Electric Charge. Commencing on the Relocation Rent Commencement Date, the Monthly Electric Charge shall be $1,762.65.

 

*Incorporates 8-month gross abatement on 10,873 sq.ft.

 

 

11.                              Temporary Space License.

 

(a)                                 Temporary Space. Tenant hereby acknowledges that another tenant in the Building is currently, pursuant to a license agreement, occupying Suite 150 on the 1st floor of the Building (the “Temporary Space”) which Temporary Space contains approximately 3,690 rentable square feet. Commencing on the date that is two (2) business days subsequent to the date that Landlord provides to Tenant written notice that the Temporary Space is vacant and terminating on the first day of the Relocation Commencement Date (the “Temporary Space License Period”), Tenant shall have a license (the “License”)  to use the Temporary Space. During the Temporary Space License Period, the Temporary Space shall be utilized for the general office use.

 

(b)                                 Surrender. On or before the Relocation Commencement Date, Tenant will surrender and deliver up the Temporary Space to Landlord, broom clean, in good order, condition and repair, reasonable wear and tear excepted, and otherwise in strict conformance with the terms of the Lease. “Broom clean” means free from all debris, dirt, rubbish, and personal property of Tenant.

 

(c)                                  Removal. Prior to the Relocation Commencement Date, Tenant shall remove from the Temporary Space Tenant’s Property. Tenant shall repair any injury or damage to the Temporary Space which may result from such removal. If Tenant does not remove Tenant’s Property from the Temporary Space prior to the Relocation Commencement Date, then Landlord may, at its option, remove the same and deliver the same to any other place of business of Tenant or warehouse the same, and Tenant shall pay the cost of such removal (including the repair of any injury or damage to the Temporary Space resulting from such removal), delivery and warehousing to Landlord on demand, or Landlord may treat Tenant’s Property as having been conveyed to Landlord with this Amendment as a bill of sale, without further payment or credit by Landlord to Tenant.

 

(d)                                 Holdover. If Tenant retains possession of the Temporary Space or any part thereof after the Relocation Commencement Date, then Tenant shall pay to Landlord Rent, at one hundred fifty percent (150%) of the rate applicable to the Existing Premises payable as of the date hereof (including increases for Additional Rent which Landlord may reasonably estimate), computed on a per diem basis, for each month or part thereof (without reduction for any such partial month) that Tenant remains in possession of the Temporary Space. The provisions of this paragraph do not limit the Landlord’s rights of re-entry or any other right of Landlord under the Lease.

 

12.                               Tenant’s Right to Terminate. Paragraph 31 of the Lease is hereby deleted in its entirety and replaced with the following:

 

“31.                         Early Termination. Provided that Tenant is not in monetary default hereunder (beyond any applicable notice or cure period), Tenant shall have the right to terminate the Lease effective at 11:59 p.m. on the date that represents a date subsequent to the final day of the sixty-fifth (65th) month subsequent to the Relocation Commencement

 

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Date by: (a) giving Landlord at least twelve (12) months’ prior written notice of: (i) Tenant’s intention to terminate the Lease; and (ii) the date that Tenant intends to terminate the Lease; and (b) paying to Landlord, at the time of such notice, a termination fee in the amount of $375,045.07, which fee represents the sum of the following: (i) the unamortized leasing commissions under the Lease (using an 8% factor), plus (ii) the unamortized cost of the Work (using an 8% factor), plus (iii) an unamortized portion of the Abatement Amount (using an 8% factor).”

 

13.                               Landlord’s Right to Relocate Tenant. Paragraph 22 of the Lease is hereby deleted in its entirety.

 

14.                               Right of First Refusal.

 

(a)                                 In the 2nd line of Paragraph 32(A) of the Lease, the phrase, “which is contiguous to the Premises” is hereby deleted and replaced with “which is contiguous to, and on the same floor as, the Relocation Premises”

 

(b)                                 In the 8th line of Paragraph 32(B) of the Lease, the phrase, “Commencement Date” is hereby deleted and replaced with “Relocation Commencement Date”

 

15.                               Signage. The monument sign for the Building facing I-94 shall include Tenant’s corporate identification, the size and type of such identification to be mutually agreed upon by Landlord and Tenant (but including at least one panel).

 

16.                               Conference Room. For so long as Landlord continues to offer the use of a conference room to Building tenants, Tenant shall have the right to use such conference room, at no cost to Tenant, subject to prior scheduling by Landlord.

 

17.                               Fitness Center. For so long as Landlord continues to offer the use of a fitness center to Building tenants, Tenant’s employees shall have the right to use such fitness center at no out-of-pocket cost to Tenant’s employees.

 

18.                               Extension Option.

 

(a)                                 Rent Adjustment. Provided Tenant is not in default under the terms of the Lease (beyond any applicable notice or cure period), Landlord hereby grants Tenant one option (“Extension Option”) to extend the current Term of the Lease for an additional period of five (5) consecutive years from the expiration of the Term (“Extension Period”), on the same terms and conditions then in effect under this Lease during the Initial Lease Term, except as modified by the “Market Rates, Terms and Conditions” further described below, and Tenant shall have no further option to extend. Tenant may exercise the Extension Option only by giving Landlord written notice thereof (“Tenant’s Exercise Notice”) no later than twelve (12) full calendar months prior to commencement of the subject Extension Period. Tenant’s Exercise Notice shall be unconditional and irrevocable (except as expressly provided herein).

 

(b)                                 Landlord’s Notice of Market Rates, Terms and Conditions; Disagreement. Within thirty (30) days after receiving Tenant’s Exercise Notice, Landlord shall provide

 

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Tenant with notice (“Landlord’s Notice”) of the Market Rates, Terms and Conditions, subject to the other provisions hereof. The term “Market Rates, Terms and Conditions” herein shall mean Landlord’s good faith determination of fair market Rent and other terms and conditions (including, but not limited to any scheduled increases in Rent, any years or stops for taxes or expenses, and any improvements or an allowance therefor) for renewing the Lease for the Leased Premises during the Extension Period, taking into account comparable renewals of comparable tenants of comparable financial condition in comparable non-sublease space in comparable buildings in the same market area. If the Market Rates, Terms and Conditions determined by Landlord are not acceptable to Tenant, then Tenant may revoke its exercise of the Extension Option by notice (“Tenant Revocation Notice”) to Landlord given no later than fifteen (15) days after Landlord’s Notice, in which case the Extension Option and Tenant’s exercise thereof shall thereupon be null and void. If Tenant fails to so revoke such exercise of the Extension Option, then Tenant shall be deemed to have unconditionally and irrevocably exercised the Extension Option and accepted the Market Rates, Terms and Conditions contained in Landlord’s Notice.

 

(c)                             General Matters. If Tenant validly exercises the Extension Option, Tenant shall execute an amendment (“Extension Amendment”) to confirm the extension of the Term, within fifteen (15) days after Landlord reasonably prepares and provides the same to Tenant. The Extension Option herein shall, at Landlord’s election, be conditioned on the Lease being in full force and effect, and Tenant not then being in default beyond any applicable cure period under the Lease, at the time Tenant seeks to exercise the Extension Option, or at any time thereafter and prior to commencement of the Extension Period. If Tenant shall fail to properly and timely exercise the Extension Option, then the Extension Option shall thereupon terminate. STRICT COMPLIANCE AND TIMELINESS IN GIVING TENANT’S NOTICES AND SIGNING THE EXTENSION AMENDMENT HEREUNDER IS OF THE ESSENCE OF THIS PROVISION. The rights granted in this Section 18 are personal to Tenant as named in this Lease document. Under no circumstance whatsoever shall the assignee under a complete or partial assignment of the Lease document (unless to a related entity or affiliate of Tenant as outlined in Paragraph 16 of the Office Lease), or a subtenant under a sublease of the Existing Premises or Relocation Premises, have any right to exercise the rights of Tenant under this Section 18 (unless to a related entity or affiliate of Tenant as outlined in Paragraph 16 of the Office Lease). If Tenant shall sublease or assign the Lease with respect to all or any portion of the Existing Premises or Relocation Premises, then immediately upon such sublease or assignment Tenant’s rights under this Section 18 shall concurrently terminate and become null and void (unless to a related entity or affiliate of Tenant as outlined in Paragraph 16 of the Office Lease).

 

19.                               Parking.  Notwithstanding anything to the contrary contained in Paragraph 29 of the Lease, commencing on the Relocation Commencement Date, Tenant shall be entitled to utilize four (4) parking stalls per one thousand (1,000) rentable square feet in the Relocation Premises.

 

20.                               Condition of Relocation Premises. Tenant shall lease the Relocation Premises in an “AS-IS” condition, and Landlord shall not be required to perform any work therein. Landlord shall perform or cause to be performed certain work in the Relocation Premises (the “Relocation Premises Work”), all in strict accordance with the Workletter, attached hereto as Exhibit C. With respect to the Relocation Premises Work, Landlord shall provide to Tenant a construction

 

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allowance (the  “Relocation Construction Allowance”) equal to $45.65 per rentable square foot in the Relocation Premises (i.e., $715,244.20).

 

21.                          Other Terms; Certain Provisions Deleted. Except to the extent inconsistent herewith or provided to the contrary herein: (a) commencing on the Relocation Commencement Date, the Relocation Premises shall be substituted for the Existing Premises and become the Premises under the Lease, and all applicable provisions then or thereafter in effect under the Lease shall apply to the Relocation Premises, and (b) all provisions of the Lease currently in effect or scheduled to become effective shall remain in effect and become effective in accordance with their terms, except for any provisions which by their express terms have lapsed or are scheduled to lapse.

 

22.                          Security Deposit.  The last full sentence of Paragraph 24 of the Lease is hereby deleted in its entirety. Concurrently with its execution hereof, Tenant shall deposit with Landlord an amount equal to $116,261.26. Thereafter, “Security Deposit” as defined in Paragraph 1(J) of the Lease shall be deemed to be $175,000.00. Notwithstanding the foregoing, as long as no event of default exists under the Lease after notice and opportunity to cure (such condition being referred to as in “Good Standing”), then following the expiration of each Lease Year subsequent to the Relocation Commencement Date (presuming Tenant has remained in Good Standing), the Security Deposit shall be reduced by an amount equal to $25,000. For example, after the 1st Lease Year subsequent to the Relocation Commencement Date, the Security Deposit shall be reduced to $150,000; after the 2nd Lease Year subsequent to the Relocation Commencement Date, the Security Deposit shall be reduced to $125,000. To the extent that Tenant is entitled to a reduction in the Security Deposit, in strict accordance with the foregoing, the amount of such reduction (i.e., $25,000) shall be returned to Tenant by no later than thirty (30) days subsequent to the beginning of the applicable Lease Year.

 

23.                          No Other Modification.  The Lease is only modified as set forth herein and in all other respects remains in full force and effect.

 

24.                          No Default.  Tenant acknowledges that the Lease is in full force and effect and that there are no defaults by Landlord thereunder or any conditions which with only the passage of time or giving of notice or both would become a default by Landlord thereunder.

 

25.                          Successors and Assigns.  This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

 

26.                          Modification.  This Amendment may not be modified or amended except by written agreement executed by the parties hereto.

 

27.                          Governing Law.  The validity, meaning and effect of this Amendment shall be determined in accordance with the laws of the State of Illinois.

 

28.                          Counterparts.  This Amendment may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

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29.                               Severability. The parties hereto intend and believe that each provision in this Amendment comports with all applicable local, state and federal laws and judicial decisions. However, if any provision in this Amendment is found by a court of law to be in violation of any applicable ordinance, statute, law, administrative or judicial decision, or public policy, and if such court should declare such provision to be illegal, void or unenforceable as written, then such provision shall be given force to the fullest possible extent that the same is legal, valid and enforceable and the remainder of this Amendment shall be construed as if such provision was not contained therein.

 

30.                               Construction. The headings of this Amendment are for convenience only and shall not define or limit the provisions hereof. Where the context so requires, words used in singular shall include the plural and vice versa, and words of one gender shall include all other genders. In the event of a conflict between the terms and conditions of the Lease and the terms and conditions of this Amendment, the terms and conditions of this Amendment shall prevail.

 

31.                               No Third Party Beneficiaries. This Amendment shall inure to the sole benefit of the parties hereto. Nothing contained herein shall create, or be construed to create, any right in any person not a party to this Amendment.

 

32.                               Legal Review. The parties hereto acknowledge that they have been advised by legal counsel of their choice in connection with the interpretation, negotiation, drafting and effect of this Amendment and they are satisfied with such legal counsel and the advice which they have received.

 

33.                               Facsimile or PDF Signatures. The parties hereto agree that the use of facsimile or pdf signatures for the negotiation and execution of this Amendment shall be legal and binding and shall have the same full force and effect as if originally signed.

 

34.                               Brokers.  The parties hereby represent and warrant that the only real estate brokers involved in the negotiation and execution of this Amendment are Cushman & Wakefield and CBRE, Inc. (together, the “Brokers”)  and that no other party is entitled, as a result of the actions of the respective party, to a commission or other fee resulting from the execution of this Lease. Each party shall indemnify the other from any and all liability for the breach of this representation and warranty on its part and shall pay any compensation to any other broker or person who may be entitled thereto. Landlord shall pay any commissions due Brokers based on this Lease pursuant to separate agreements between Landlord and Brokers.

 

[Signatures appear on the following page.]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date set forth above.

 

	
TENANT:
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
AVEXIS, INC., a Delaware   corporation
    	
 
    	
WANXIANG BANNOCKBURN, LLC, an   
    
	
 
    	
 
    	
 
    	
Illinois limited   liability company
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Thomas J Dee
    	
 
    	
By: WANXIANG AMERICA   REAL
    
	
Name:
    	
Thomas   J Dee
    	
 
    	
ESTATE GROUP, LLC, an   Illinois
    
	
Title:
    	
Sr VP,   CFO
    	
 
    	
limited liability   company, its Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ Lawrence J. Krueger
    
	
 
    	
 
    	
 
    	
Name:
    	
Lawrence J. Krueger
    
	
 
    	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page - First Amendment]

 

 

EXHIBIT A

 

RELOCATION PREMISES

 

[See attached.]

 

 

 

 

EXHIBIT B

 

MEMORANDUM OF UNDERSTANDING

 

RE:                           First Amendment to Lease Agreement, dated                                                     , 2016 (the “Lease”) between Avexis, Inc., a Delaware corporation (“Tenant”) and Wanxiang Bannockburn, LLC an Illinois limited liability company (“Landlord”) for the Leased Premises commonly known as Suite 200, located at 2275 Half Day Road, Bannockburn, Illinois (the “Leased Premises”)

 

The undersigned, Tenant, hereby certifies to Landlord as follows:

 

1.              The Relocation Commencement Date under the Lease is                          , 201 .

 

2.              The Relocation Rent Commencement Date under the Lease is                          , 201 .

 

3.              The Termination Date under the Lease is                          , 201 .

 

4.                The Lease (including amendments or guaranty, if any) is the entire agreement between Landlord and Tenant as to the leasing of the Leased Premises and is in full force and effect.

 

5.     The Landlord has completed the improvements designated as Landlord Work under the Lease (excluding punchlist items as agreed upon by Landlord and Tenant), if any, and Tenant has accepted the Leased Premises as of the Relocation Commencement Date.

 

6.     To the best of the undersigned’s knowledge, there are no uncured events of default by either Tenant or Landlord under the Lease.

 

[Signature page follows.]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding as of  August 15, 2016.

 

	
TENANT:
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
AVEXIS, INC., a Delaware   corporation
    	
 
    	
WANXIANG BANNOCKBURN, LLC, an   
    
	
 
    	
 
    	
 
    	
Illinois limited liability   company
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By: WANXIANG AMERICA   REAL
    
	
Name:
    	
Thomas   J Dee
    	
 
    	
ESTATE GROUP, LLC, an   Illinois
    
	
Title:
    	
Sr VP,   CFO
    	
 
    	
limited liability   company, its Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
Lawrence J. Krueger
    
	
 
    	
 
    	
 
    	
Title:
    	
Managing Director
    

 

 

EXHIBIT C

 

WORK LETTER

 

1.              Acceptance of Premises. Except as set forth in this Exhibit, Tenant accepts the Relocation Premises in their “AS-IS” condition on the date that the Lease is entered into. However, Landlord shall ensure that the modulines within the Relocation Premises are in good working order.

 

2.              Working Drawings.

 

A.                                    Tenant shall provide Landlord with a detailed plan (the “Space Plan”) prepared by Interwork Architects, Inc. (“Architect”) including a fully dimensioned floor plan and drawn to scale, showing: (i) demising walls, interior walls and other partitions, including type of wall or partition and height, and any demolition or relocation of walls, and details of space occupancy and density, (ii) doors and other openings in such walls or partitions, including type of door and hardware, (iii) electrical and computer outlets, circuits and anticipated usage therefor, (iv) any special purpose rooms, any sinks or other plumbing facilities, heavy items, and any other special electrical, HVAC or other facilities or requirements, including all special loading and related calculations, (v) any space planning considerations to comply with fire or other codes or other governmental or legal requirements, (vi) finish selections, and (vii) any other details or features reasonably required, in order for the Space Plan to serve as a basis for Landlord to contract and obtain permits for Landlord’s Work (as defined below), or for the Space Plan to serve as a basis for preparing Working Drawings (as defined below). The costs associated with the creation of the Space Plan, and two (2) revisions thereto, shall be borne by Landlord and shall not be included toward Landlord’s Contribution (as defined below).

 

B.                                    The final and approved Space Plan shall be utilized to create working drawings depicting improvements to be installed in the Premises (once finalized, the “Working Drawings”). The parties agree that the scope of the Landlord’s Work (as defined herein) shall consist of only that work which is shown in detail on the Working Drawings.

 

C.                                    If any of Tenant’s proposed construction work will affect the Building’s structure or the Building’s systems, then the portion of the Working Drawings pertaining thereto must be approved by Landlord’s Project engineer of record. As used herein, “Landlord’s Work” means all improvements to be constructed by Landlord in accordance with and as indicated on the Working Drawings. Landlord’s approval of the Working Drawings shall not be a representation or warranty of Landlord that such drawings are adequate for any use or comply with any Law, but shall merely be the consent of Landlord thereto. Tenant represents and warrants to Landlord that Tenant has reviewed and approved the Working Drawings. Tenant shall, at Landlord’s request, sign the Working Drawings to evidence Tenant’s review and approval thereof. After the Working Drawings have been approved by Landlord, Landlord shall cause the Landlord’s Work to be performed in substantial accordance with the Working Drawings, using contractors and subcontractors selected by Landlord.

 

D.                                    Tenant may initiate change to Landlord’s Work. Each such change must receive the prior written approval of Landlord, such approval shall be granted or withheld

 

 

in Landlord’s reasonable discretion; additionally, if any such requested change might (1) delay the Turnover Date by more than fourteen (14) days, or, (2) leave any portion of the Relocation Premises not fully finished and ready for occupancy, then Landlord may withhold its consent in its sole and absolute discretion. If Tenant requests any changes to Landlord’s Work, as described in the Working Drawings, then such increased costs and any additional design costs incurred in connection therewith as the result of any such change shall be added to the cost of Landlord’s Work.

 

3.                                      Definitions. As used herein, “Substantial Completion,” “Substantially Completed” and any derivations thereof mean the Landlord’s Work in the Premises is substantially completed (as reasonably determined by Landlord’s Architect) in substantial accordance with the Working Drawings. Substantial Completion shall have occurred even though minor details of construction, decoration, landscaping and mechanical adjustments remain to be completed by Landlord.

 

4.                                      Walk-Through; Punchlist. When Landlord’s Architect considers the Landlord’s Work in the Premises to be Substantially Completed, Landlord will notify Tenant and, within 3 business days thereafter, Landlord’s representative and Tenant’s representative shall conduct a walk-through of the Premises and identify any necessary touch-up work, repairs and minor completion items that are necessary for final completion of the Landlord’s Work. Neither Landlord’s representative nor Tenant’s representative shall unreasonably withhold his or her agreement on punchlist items. Landlord shall use reasonable efforts to cause the contractor performing the Landlord’s Work to complete all punchlist items within 30 days after agreement thereon; however, Landlord shall not be obligated to engage overtime labor in order to complete such items. With respect to any dispute by Tenant or disagreement between Landlord and Tenant with respect to any item to be included on the punchlist, the Architect shall be the sole arbitrator and Architect’s decision on punchlist items shall be final and binding on both Landlord and Tenant.

 

5.                                      Costs. Landlord shall make a dollar contribution as set forth in Section 20 of the First Amendment to the Lease (“Landlord’s Contribution”) for application toward the cost of the Landlord’s Work (including, but not limited to, costs and fees associated with architectural, construction hard and soft costs, management fees, permitting, low voltage cabling, furniture, fixtures and equipment). If the cost of the Landlord’s Work exceeds Landlord’s Contribution, Tenant shall have the sole responsibility for the payment of such excess cost. Notwithstanding anything herein to the contrary, the following amounts shall be drawn from Landlord’s Contribution: (a) amounts due to Landlord’s architects, engineers, or construction managers related to Landlord’s Work; and/or (b) amounts related to building permit fees related to Landlord’s Work.

 

6.                                      Miscellaneous. To the extent not inconsistent with this Exhibit, Sections 9 and 21 of the Lease shall govern the performance of the Landlord’s Work and Landlord’s and Tenant’s respective rights and obligations regarding the improvements installed pursuant thereto.Exhibit 4.1

 

August 18, 2016

 

 

Re:Reset Offer of Common Stock Purchase
Warrant

 

To Whom It May Concern:

 

We are pleased to offer
to you the opportunity to exercise all of the Common Stock Purchase Warrants (“the Warrants”) issued pursuant
to that certain Securities Purchase Agreement, dated as of December 17, 2015 (the “Purchase Agreement”) and
currently held by you (the “Holder”). The Warrants, and the shares underlying the Warrants (the “Warrant
Shares”) have been registered for sale pursuant to a registration statement on Form S-3 (File No. 333-196720) (the “Registration
Statement”). The Registration Statement is currently effective and, upon exercise of the Warrants pursuant to this letter
agreement, will be effective for the issuance of the Warrant Shares. Capitalized terms not otherwise defined herein shall have
the meanings set forth in the Purchase Agreement.

 

In consideration for exercising
in full all of the Warrants held by you (the “Warrant Exercise”) as set forth on the signature page hereto,
the Company shall issue to you or your designee a new Common Stock Purchase Warrant (“New Warrant”) pursuant
to Section 4(a)(2) of the Securities Act of 1933 (“Securities Act”) to purchase up to a number of shares of
Common Stock equal to 133% of the number of Warrant Shares issued pursuant to the undersigned’s exercise hereunder,
which New Warrant shall be in all other respects substantially similar to the Warrants, except that such New Warrant shall: (a)
be restricted; (b) be non-exercisable for six months from the date of issuance; and (c) have a term of five and a half years from
the issuance date.

 

Expressly subject to the paragraph immediately
following this paragraph below, Holder may accept this offer by signing this letter below, with such acceptance constituting Holder’s
exercise in full of the Warrants for an aggregate exercise price as set forth on the Holder’s signature page hereto (the
“Warrants Exercise Price”). A Holder may withdraw (the “Withdrawal Rights”) his/her/its exercise
at any time before the Expiration Time (defined below). This offer Withdrawal Rights expire at 11:59 pm ET on August 18, 2016 (the
“Expiration Time”).

 

Additionally, the parties
hereby agree to their respective representations, warranties and covenants set forth on Annex A attached hereto.

 

From the date hereof
until 75 days after the date hereof neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce
the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents. Notwithstanding the foregoing, this
provision shall not apply in respect of an Exempt Issuance (as defined in the Purchase Agreement).

From the date hereof
until the 12 month anniversary of the date hereof, the Company shall be prohibited from effecting or entering into an agreement
to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination
of units thereof) involving a Variable Rate Transaction (as defined in the Purchase Agreement).

    

     

    

If this offer is accepted
and the transaction documents are executed on August 18, 2016, then on or before 9:30 a.m. Eastern Time on August 19, 2016, the
Company shall issue a press release disclosing the material terms hereunder. The Company represents, warrants and covenants that,
upon acceptance of this offer, the shares underlying the Warrants shall be issued free of any legends or restrictions on resale
by Holder, unless Holder is an Affiliate of the Company, and all of the Warrant Shares shall be delivered electronically through
the Depository Trust Company within 1 business day of the date the Company receives the Warrants Exercise Price (or, with respect
to shares in that would otherwise be in excess of the Beneficial Ownership Limitation, within 2 business days of the date the Company
is notified by Holder that its ownership is less than the Beneficial Ownership Limitation). The terms of the Warrants, including
but not limited to the obligations to deliver the Warrant Shares, shall otherwise remain in effect as if the acceptance of this
offer were a formal Notice of Exercise (including but not limited to any liquidated damages and compensation in the event of late
delivery of the Warrant Shares).

 

Within three Trading Days
from the Holder’s execution of this letter: the Holder shall deliver the Warrant Exercise Price to Alerus Financial, N.A.,
a North Dakota chartered bank (the “Escrow Agent”) by wire transfer to the account specified in writing by the
escrow agreement, by and among the Company, the Escrow Agent and the Placement Agent (as defined in the Purchase Agreement); the
Holder shall surrender to the Company the Warrants for immediate cancellation; and the Company shall deliver to the Holder the
Warrant Shares via The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”), registered
in the name of the Holder; and a New Warrant registered in the name of the Holder to purchase up to ______ shares of Common Stock.

 

To accept this offer, Holder
must counter execute this letter agreement and return the fully executed agreement to the Company at e-mail: __________, attn.:
_________, with a copy to __________ (__________) on or before the Expiration Time.

 

Please do not hesitate
to call me if you have any questions.

	 	Sincerely yours,
	 	 
	 	EMAGIN CORPORATION
	 	 
	 	By: 	
	 	Name:

Title:	             

  

Accepted and Agreed to:

 

Name of Holder: ________________________________________________________

Signature of Authorized Signatory of Holder:
_________________________________

Name of Authorized Signatory: _______________________________________________

Title of Authorized Signatory: ________________________________________________

 

Warrant Shares being exercised: _______

Aggregate Holder Exercise Price: $

New Warrant Shares (133% of Warrants exercised):

DTC Instructions:

 

Address for Delivery of the New Warrants:

 

Company Wire Instructions:

Bank Name:

Bank Address:

Routing/ABA #

Swift Code #

Account #

Beneficiary Name:.

Beneficiary Address:

 

 

    2 

     

    

Annex A

 

	1.	Representations,
                                         Warranties and Covenants of the Company. The Company hereby makes the following representations
                                         and warranties to the undersigned:

 

(a)               
Affirmation of Prior Representations, Warranties and Covenants. The Company hereby represents and warrants to the
undersigned that the Company’s representations and warranties as set forth in Section 3.1 and as set forth covenants listed
in Article IV of the Securities Purchase Agreement, dated as of December 17, 2015 (the “Purchase Agreement”),
together with any updates in the Company’s SEC Reports subsequent to the Purchase Agreement, are true and correct as of the
date hereof or the date set forth in the applicable representation or warranty and have been fully performed as of the date hereof.
Capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement.

(b)              
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this letter agreement and otherwise to carry out its obligations hereunder and thereunder. The
execution and delivery of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby
have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company,
its board of directors or its stockholders in connection therewith. This letter agreement has been duly executed by the Company
and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and
(iii) insofar as indemnification and contribution provisions may be limited by applicable law.

(c)               
No Conflicts. The execution, delivery and performance of this letter agreement by the Company and the consummation
by the Company of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s
certificate or articles of incorporation, bylaws or other organizational or charter documents; or (ii) conflict with, or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien
upon any of the properties or assets of the Company in connection with, or give to others any rights of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) of, any material agreement, credit facility, debt
or other material instrument (evidencing Company debt or otherwise) or other material understanding to which such Company is a
party or by which any property or asset of the Company is bound or affected; or (iii) subject to the Required Approvals (as defined
in the Purchase Agreement), conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree
or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities
laws and regulations), or by which any property or asset of the Company is bound or affected, except, in the case of each of clauses
(ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect (as defined in the Purchase
Agreement).

    3 

     

    

(d)              
Issuance of the New Warrant. The issuance of the New Warrant is duly authorized and, upon the execution of this letter
agreement by the undersigned, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens (as defined
in the Purchase Agreement) imposed by the Company. The shares of Common Stock issuable upon exercise of the New Warrant (“the
New Warrant Shares”), when issued in accordance with the terms of the New Warrant, will be validly issued, fully paid
and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital
stock a number of shares of Common Stock for issuance of the New Warrant Shares in full.

(e)               
Equal Consideration. Except as set forth in this letter agreement, no consideration has been offered or paid to any
person to amend or consent to a waiver, modification, forbearance or otherwise of any provision of any of the Purchase Agreement
or the Warrant.

(f)               
Legends. Transfer Restrictions.

(i)                
The New Warrant and New Warrant Shares may only be disposed of in compliance with state and federal securities laws. In
connection with any transfer of New Warrant or New Warrant Shares other than pursuant to an effective registration statement or
Rule 144, to the Company or to an Affiliate of a undersigned or in connection with a pledge as contemplated in Section 4.1(b),
the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect
that such transfer does not require registration of such transferred New Warrant and New Warrant Shares under the Securities Act.
As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this letter agreement.

(ii)              
The undersigned agrees to the imprinting, so long as is required by this Section (i), of a legend on any of the New Warrant
and New Warrant Shares in the following form:

THIS SECURITY
HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED
BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)
UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

The Company
acknowledges and agrees that a undersigned may from time to time pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the New Warrant to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and, if required under the terms of such arrangement, the undersigned
may transfer pledged or secured New Warrant to the pledgees or secured parties. Such a pledge or transfer would not be subject
to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in
connection therewith. Further, no notice shall be required of such pledge. At the appropriate undersigned’s expense, the
Company will execute and deliver such reasonable documentation as a pledgee or secured party of New Warrant may reasonably request
in connection with a pledge or transfer of the New Warrant or New Warrant Shares.

    4 

     

    

(iii)            
Certificates evidencing the New Warrant Shares shall not contain any legend (including the legend set forth in Section (f)(ii)
hereof), (i) while a registration statement covering the resale of such security is effective under the Securities Act, (ii) following
any sale of such New Warrant Shares pursuant to Rule 144, (iii) if such New Warrant Shares are eligible for sale under Rule 144,
or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the
Transfer Agent if required by the Transfer Agent to effect the removal of the legend hereunder. If all or any portion of a New
Warrant is exercised at a time when there is an effective registration statement to cover the resale of the New Warrant Shares,
or if such New Warrant Shares may be sold under Rule 144 and the Company is then in compliance with the current public information
required under Rule 144, or if the New Warrant Shares may be sold under Rule 144 without the requirement for the Company to be
in compliance with the current public information required under Rule 144 as to such New Warrant Shares or if such legend is not
otherwise required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued
by the staff of the Commission) then such New Warrant Shares shall be issued free of all legends. The Company agrees that following
such time as such legend is no longer required under this Section (f), it will, no later than three (3) Trading Days following
the delivery by a undersigned to the Company (or its transfer agent) of a certificate representing New Warrant Shares, as the case
may be, issued with a restrictive legend (such third Trading Day, the “Legend Removal Date”), deliver or cause
to be delivered to the undersigned a certificate representing such shares that is free from all restrictive and other legends.
The Company may not make any notation on its records or give instructions to the transfer agent that enlarge the restrictions on
transfer set forth in this Section 1(f)(iii). Certificates for New Warrant Shares subject to legend removal hereunder shall be
transmitted by the Transfer Agent to the undersigned by crediting the account of the undersigned’s prime broker with the
Depository Trust Company System as directed by the undersigned.

(iv)            
In addition to the undersigned’s other available remedies, the Company shall pay to the undersigned, in cash, (i)
as partial liquidated damages and not as a penalty, for each $1,000 of New Warrant Shares (based on the VWAP of the Common Stock
on the date such Securities are submitted to the Transfer Agent) delivered for removal of the restrictive legend and subject to
Section 1(f)(iii), $5 per Trading Day (increasing to $10 per Trading Day five (5) Trading Days after such damages have begun to
accrue) for each Trading Day after the Legend Removal Date until such certificate is delivered without a legend and (ii) if the
Company fails to (a) issue and deliver (or cause to be delivered) to the undersigned by the Legend Removal Date a certificate representing
the Securities so delivered to the Company by the undersigned that is free from all restrictive and other legends and (b) if after
the Legend Removal Date the undersigned purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by the undersigned of all or any portion of the number of shares of Common Stock, or a sale of a number
of shares of Common Stock equal to all or any portion of the number of shares of Common Stock that the undersigned anticipated
receiving from the Company without any restrictive legend, then, an amount equal to the excess of the undersigned’s total
purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased
(including brokerage commissions and other out-of-pocket expenses, if any) (the “Buy-In
Price”) over the product of (A) such number of New Warrant Shares that the Company was required to deliver to
the undersigned by the Legend Removal Date multiplied by (B) the lowest closing sale price of the Common Stock on any Trading Day
during the period commencing on the date of the delivery by the undersigned to the Company of the applicable New Warrant Shares
(as the case may be) and ending on the date of such delivery and payment under this clause (iv).

    5 

     

    

 

(g)              
Public Information Failure. At any time during the period commencing from the six (6) month anniversary of
the date hereof and ending at such time that all of the Securities may be sold without the requirement for the Company to be in
compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, if the Company (i) shall fail
for any reason to satisfy the current public information requirement under Rule 144(c) or (ii) has ever been an issuer described
in Rule 144(i)(1)(i) or becomes an issuer in the future, and the Company shall fail to satisfy any condition set forth in Rule
144(i)(2) (a “Public Information Failure”) then, in addition to the undersigned’s other available remedies,
the Company shall pay to the undersigned, in cash, as partial liquidated damages and not as a penalty, by reason of any such delay
in or reduction of its ability to sell the New Warrant Shares, an amount in cash equal to two percent (2.0%) of the aggregate Exercise
Price of the undersigned’s New Warrant on the day of a Public Information Failure and on every thirtieth (30th)
day (pro-rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such Public Information
Failure is cured and (b) such time that such public information is no longer required  for the undersigned to transfer the
New Warrant Shares pursuant to Rule 144.  The payments to which the undersigned shall be entitled pursuant to this Section
(g) are referred to herein as “Public Information Failure Payments.”  Public Information Failure Payments
shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments
are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information
Failure Payments is cured.  In the event the Company fails to make Public Information Failure Payments in a
timely manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month (prorated for
partial months) until paid in full. Nothing herein shall limit the undersigned’s right to pursue actual damages for the Public
Information Failure, and the undersigned shall have the right to pursue all remedies available to it at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief.

(h)              
Listing of Common Stock. The Company shall apply to list or quote all of the New Warrant Shares on the Trading
Market and promptly secure the listing of all of the New Warrant Shares on such Trading Market.

(i)                
Private Placement. Assuming the accuracy of the Holder’s representations
and warranties set forth in Section 2 herein, no registration under the Securities Act is required for the offer and issuance of
the New Warrants or the New Warrant Shares by the Company to the Holder as contemplated hereby.

(j)                
No General Solicitation. Neither the Company nor any Person acting on
behalf of the Company has offered or issued any of the New Warrant or New Warrant Shares by any form of general solicitation or
general advertising. The Company has offered the New Warrants and New Warrant Shares only to the Holder and certain other “accredited
investors” within the meaning of Rule 501 under the Securities Act.

		2.	Representations, Warranties and Covenants of the undersigned. The undersigned hereby represents,
warrants and covenants as of the date hereof to the Company as follows (unless as of a specific date therein, in which case they
shall be accurate as of such date):

                                                
(a)              
Own Account. The undersigned understands that the New Warrant is a “restricted security” and has not
been registered under the Securities Act or any applicable state securities law and is acquiring the New Warrant as principal for
its own account and not with a view to or for distributing or reselling such New Warrant or any part thereof in violation of the
Securities Act or any applicable state securities law, has no present intention of distributing any of such New Warrant or New
Warrant Shares in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution of such New Warrant in violation of the Securities
Act or any applicable state securities law. The undersigned is acquiring the New Warrant hereunder in the ordinary course of its
business.

                                               
(b)              
Status. At the time the undersigned was offered the New Warrant, it was, and as of the date hereof it is, and on
each date on which it exercises any New Warrant, it will be an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act.

    6 

     

    

                                                
(c)              
Experience of The undersigned. The undersigned, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the New Warrant, and has so evaluated the merits and risks of such investment. The undersigned is able to bear the
economic risk of an investment in the New Warrant and, at the present time, is able to afford a complete loss of such investment.

                                               
(d)              
Access to Information. The undersigned acknowledges that it has had the opportunity to review the Transaction Documents
(including all exhibits and schedules thereto) and the SEC Reports and has been afforded (i) the opportunity to ask such questions
as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions
of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about the Company
and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate
its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. 
The undersigned acknowledges and agrees that neither the Placement Agent nor any Affiliate of the Placement Agent has provided
the undersigned with any information or advice with respect to the New Warrant nor is such information or advice necessary or desired. 
Neither the Placement Agent nor any Affiliate has made or makes any representation as to the Company or the quality of the New
Warrant and the Placement Agent and any Affiliate may have acquired non-public information with respect to the Company which the
undersigned agrees need not be provided to it.  In connection with the issuance of the New Warrant to the undersigned, neither
the Placement Agent nor any of its Affiliates has acted as a financial advisor or fiduciary to the undersigned.

 

7

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