Document:

Exhibit 10.1

 

LEASE AGREEMENT

 

 

By and Between

 

 

1001 FELL STREET LIMITED PARTNERSHIP,
LLLP

Landlord

 

 

AND

 

 

VACCINOGEN, INC.

Tenant

 

 

PREMISES: 947-949 Fell Street, 1st
and 2nd Floor

Baltimore, MD 21231

 

 

DATED: January 6, 2015

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	SECTION 1	DEFINITIONS	1
	SECTION 2	DEMISE OF PREMISES	4
	SECTION 3	RENT	4
	SECTION 4	LATE PAYMENTS	5
	SECTION 5	SECURITY DEPOSIT	5
	SECTION 6	EXTENSION	6
	SECTION 7	UTILITIES	6
	SECTION 8	TAXES	7
	SECTION 9	COMMON AREAS AND OPERATING EXPENSES	7
	SECTION 10 	ADDITIONS TO THE BUILDING	8
	SECTION 11	RESTRICTIONS ON USE; COMPLIANCE WITH LAW	8
	SECTION 12	SERVICES, REPAIRS, AND MAINTENANCE BY TENANT	12
	SECTION 13	REPAIRS BY LANDLORD	14
	SECTION 14	PLACEMENT OF HEAVY EQUIPMENT	15
	SECTION 15	FORCE MAJEURE	15
	SECTION 16 	FURNITURE	15
	SECTION 17	SURRENDER OF PREMISES	16
	SECTION 18	ABANDONING THE PREMISES OR PERSONAL PROPERTY	17
	SECTION 19	QUIET ENJOYMENT	17
	SECTION 20	INDEMNIFICATION AND WAIVER OF CLAIM	17
	SECTION 21	INSURANCE	19
	SECTION 22	EFFECT ON INSURANCE	21
	SECTION 22	NOTICE OF ACCIDENT OR CASUALTY	22
	SECTION 24 	TOTAL OR PARTIAL DESTRUCTION OF BUILDING	22
	SECTION 25	ALTERATIONS	23
	SECTION 26	MECHANICS' LIENS	24
	SECTION 27	BREACH OR DEFAULT	24
	SECTION 28	EFFECT OF BREACH	25
	SECTION 29	INTENTIONALLY OMITTED	27
	SECTION 30	ACCESS BY LANDLORD	28
	SECTION 31	ASSIGNMENT AND SUBLETTING	29
	SECTION 32	CONDEMNATION	31
	SECTION 33	EXECUTION OF ESTOPPEL CERTIFICATE	32
	SECTION 34	SUBORDINATION AND ATTORNMENT	33
	SECTION 35	SIGNS AND ADVERTISING	34
	SECTION 36	RULES AND REGULATIONS	34
	SECTION 37	INTENTIONALLY OMITTED	34
	SECTION 38	OFAC CERTIFICATION	35
	SECTION 39	INTENTIONALLY OMITTED	35
	SECTION 40	REPAYMENT OF "ABATED RENT"	35
	SECTION 41	ACCORD AND SATISFACTION	36
	SECTION 42	NO PARTNERSHIP	36

 

    	I

    	 

    

 

	SECTION 43	HOLDING OVER	36
	SECTION 44	BROKERAGE COMMISSION	36
	SECTION 45	RECORDATION	37
	SECTION 46 	WAIVERS	37
	SECTION 47 	REMEDIES FOR LANDLORD	37
	SECTION 48 	TABLE OF CONTENTS; CAPTIONS	38
	SECTION 49 	NOTICES	38
	SECTION 50 	APPLICABLE LAW	38
	SECTION 51 	SUCCESSORS AND INCLUDED PERSONS	38
	SECTION 52 	WAIVER OF TRIAL BY JURY	39
	SECTION 53 	RIGHTS OF AND CLAIMS AGAINST LANDLORD	39
	SECTION 54 	CALCULATION OF TIME	40
	SECTION 55 	INTENTIONALLY OMITTED	40
	SECTION 56	INTERPRETATION	40
	SECTION 57 	SEVERABILITY; REDUCTION OF CHARGES	41
	SECTION 58	COUNTERPARTS	41
	SECTION 59 	TOTAL AGREEMENT	41
	SECTION 60 	NO MERGER	41
	SECTION 61 	TIME OF THE ESSENCE	42
	SECTION 62 	COMMERCIAL PURPOSE	42
	SECTION 63	NON-DISTURBANCE AGREEMENT	42

 

EXHIBITS

 

EXHIBIT ARULES AND REGULATIONS

 

    	II

    	 

    

 

THIS LEASE is made as of the 6th
day of January, 2015, by and between 1001 FELL STREET LIMITED PARTNERSHIP, LLLP, a Maryland Limited Partnership
(hereinafter referred to as "Landlord") and VACCINOGEN, INC., a Maryland corporation (hereinafter referred
to as "Tenant").

 

RECITALS

 

WHEREAS, Landlord is the fee simple
owner of the Building, hereinafter defined, having space therein to lease; and

 

WHEREAS, Tenant desires to lease
the Premises, hereinafter defined, within the Building for the purposes set forth in Section 10; and

 

WHEREAS, the parties desire to enter
into this Lease which defines their respective rights, duties and liabilities relating to the Building and the Premises.

 

NOW, THEREFORE, WITNESSETH, in consideration
of the mutual promises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

SECTION 1

DEFINITIONS

 

For the purposes of this Lease, Landlord and Tenant hereby agree
that the following terms shall have the indicated meanings:

 

Additional Rent: all sums of money or charges required
to be paid by Tenant under this Lease other than Annual Rent, whether or not such sums or charges are designated "Additional
Rent".

 

Annual Rent: Two Hundred Seven Thousand Five Hundred
Dollars and Four Cents ($207,500.04) per year beginning June 1, 2015 of the Original Term, and the amount during each remaining
year of the Original Term (as set forth in Section 3) and every year during any Extension Term (as set forth in Section 6).

 

Assignment: any assignment, transfer, mortgage or encumbrance,
whether voluntarily, involuntarily, or by operation of law, of Tenant's interest in this Lease, any sublease by Tenant, any license
by Tenant of space in the Premises, or any concession agreement by Tenant with respect to all or part of the Premises, any agreement
by Tenant giving any other person the right to use all or part of the Premises, or such other events determined to be Assignments
pursuant to Section 31.

 

Building: the building located on the Property and known
as 947-949 Fell Street, Baltimore, MD 21231, consisting of the agreed upon space of 10,000 square feet.

 

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Common Areas: those portions of the Property, other than
the Building which has no common area, which Landlord may from time to time designate for Tenant's non-exclusive use, which may
include parking areas, if any; and any other areas so provided by Landlord but excluding any areas included in any other lease
or part of the Premises specifically limited for use by one or more other designated party.

 

Extension Term: One (1) period of One (1) year, commencing
upon the expiration of the Original Term. The Extension Term is referred to as the "Extension Term".

 

Hazardous Material: any hazardous or toxic substance,
material, or waste including, but not limited to, those substances, materials, and wastes listed in the United States Department
of Transportation Hazardous Materials Table (49 CFR 172.101) or by the Environmental Protection Agency as hazardous substances
(40 CFR Part 302) and amendments thereto, or such substances, materials, and wastes that are or become regulated under any applicable
federal, state, or local law, ordinance, or regulation including, but not limited to, the Resource Conservation and Recovery Act,
the Toxic Substances Control Act, the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”
or “Superfund”), the Clean Air Act, and the Clean Water Act.

 

Landlord: 1001 Fell Street Limited Partnership, LLLP

 

Landlord's Address: Until May 15, 2015: 949 Fell Street,
Baltimore, Maryland 21231; after May 15, 2015: 1820 Portal Street, Baltimore, Maryland 21224.

 

Lease Commencement: With regard to the second floor space
(947 Fell Street), the Lease Commencement shall be February 1, 2015. With regard to the first floor space (949 Fell Street), the
Lease Commencement shall be June 1, 2015.

 

Monthly Installment of Annual Rental: Seventeen Thousand
Two Hundred Ninety-One Dollars and Sixty-Seven Cents ($17,291.67) beginning June 1, 2015 of the Original Term and the amount set
forth in Section 3 during each year of the Original Term and Extension Term.

 

Mortgage: any mortgage, deed of trust, ground lease or
security agreement affecting the Property or, any part thereof, at any time.

 

Mortgagee: the beneficiary of any mortgage.

 

Normal Business Hours: the hours from 8:00 a.m. to 6:00
p.m., Monday through Friday, and 9:00 a.m. to 1:00 p.m. on Saturdays, except
legal holidays.

 

Notices: all notices, requests, demands or other communications
which may be or are required or permitted to be served or given under this Lease.

 

Original Term: a period of three (3) years and five (5)
months commencing February 1, 2015 and ending at 5:00 p.m. on June 30, 2018.

 

    	2

    	 

    

 

Parking Fee for Additional Spaces: If requested by Tenant
(and subject to the parties entering into a separate agreement for the same), Tenant shall have the right (but not the obligation)
to use up to Seven (7) spaces at the rate of Seventy-Five Dollars ($75) per month per Parking Space, which Parking Spaces will
be provided by Landlord, in off-site parking lots adjacent to the Property (“Additional Spaces”).

 

Parking Spaces: At no additional cost or charge to Tenant,
beginning February 1, 2015, Ten (10) parking spaces shall be made available by Landlord for Tenant's exclusive use in the lot adjacent
to the Building. Beginning June 1, 2015, Eighteen (18) parking spaces shall be made available by Landlord for Tenant's exclusive
use in the lot adjacent to the Building.

 

Premises: consisting of the agreed amount of 10,000 square
feet of the first and second floors of the Building, which is the space to be leased by Tenant hereunder.

 

Property: all that tract or parcel of land owned by Landlord
on which the Building is situated.

 

Rent: all Annual Rent, Monthly Installments of Annual
Rent, and Additional Rent payable by Tenant to Landlord under this Lease.

 

Security Deposit: Seventeen Thousand Two Hundred Ninety-One
Dollars and Sixty-Seven Cents ($17,291.67).

 

Taxes: all taxes, assessments, and governmental charges
of any kind and nature whatsoever levied or assessed against the Property.

 

Tenant: Vaccinogen, Inc.

 

	Tenant's Address:	(prior to Lease Commencement Date)
	 	5300 Westview Drive, Suite 406
	 	Frederick, MD 21703
	 	Attn:  _____________________
	 	 
	 	(On and after February 1, 2015)
	 	947 Fell Street
	 	Baltimore, MD  21231
	 	Attn:  _____________________
	 	 
	 	with a copy to:
	 	 
	 	________________________
	 	________________________
	 	Attn:  _____________________

 

    	3

    	 

    

 

Tenant's Percentage: the percentage equivalent to a fraction
having as its numerator the number of square feet in the Premises and its denominator the number of square feet of rentable floor
space in the Building, being seventy-five and two tenths percent (75.2%).

 

 

Term: the Original Term and any Extension Term as to
which Tenant exercises an option.

 

When used herein, the singular shall apply
to the plural, the plural the singular, and the use of any gender shall apply to all genders.

 

SECTION 2

DEMISE OF PREMISES

 

Landlord leases to Tenant and Tenant hereby
leases from Landlord the Premises for the Term, Rent, and upon the terms, covenants, and conditions set forth herein. Except as
set forth below, Tenant hereby accepts the Premises in "AS IS" condition and as complying with all obligations of Landlord
with respect to the condition, order and repair thereof.

 

Prior to Lease Commencement of each respective floor of the
Building, Landlord agrees to re-paint the walls of the Premises in the same color scheme as exists at the time of signing this
Lease. Landlord shall deliver the Premises with all mechanical, electrical and plumbing systems in good working order and condition
and the Premises shall comply with all applicable laws (subject to applicable variances and grandfathering).

 

Subject to Landlord's reasonable regulations, restrictions and
guidelines, Tenant's rights to the Premises include the right, subject to all applicable laws and all other term and conditions
of this Lease, (i) to use and access the janitorial closet, and the electrical and telephone rooms, if any, on the floors containing
the Premises as reasonably necessary for Tenant's effective and efficient use of the Premises, and the right to enter such areas
to service its equipment, and (ii) to use, or access, any ceilings or space above or below the ceilings on the floors containing
the Premises to the extent necessary to service Tenant's equipment in the Premises and to run wires, cables and other conduits
to the Premises and to use such space as necessary for providing utility services to the Premises, such as the installation of
computer cable conduits to the extent permitted by applicable laws.

 

SECTION 3

RENT

 

From February 1, 2015 through May 31, 2015
(the “First Four Months”), provided Landlord has delivered possession of the second floor of the Premises to Tenant,
the Monthly Rental for the second floor of the Premises shall be Nine Thousand One Hundred Sixty Four Dollars and Fifty Eight Cents
($9,164.58). Notwithstanding the above or anything to the contrary herein, Landlord agrees to abate Tenant’s obligation to
pay the Monthly Rental for the First Four Months.

 

    	4

    	 

    

 

Tenant shall pay Monthly Installments of
Annual Rent in advance on the first day of each month for the Term of this Lease, without deduction, set-off, recoupment, counterclaim,
or demand (except as expressly set forth herein), at Landlord's Address or at such other place as shall be reasonably designated
in writing by Landlord. If the Term shall commence or end on a day other than the first day of a month, the Monthly Installments
of Annual Rent for any such partial month of the Term shall be prorated on a per diem basis based upon the number of days in such
month. At the time of Lease execution, Tenant shall pay to Landlord both the Security Deposit and the Monthly Installment of Annual
Rental due for June, 2015.

 

Beginning June 1, 2015, the Annual Rent
shall be the sum of Two Hundred Seven Thousand Five Hundred Dollars and Four Cents ($207,500.04) per annum, payable in equal Monthly
Installments of Seventeen Thousand Two Hundred Ninety-One Dollars and Sixty-Seven Cents ($17,291.67).

 

Commencing June 1, 2016, and every first
of May thereafter, during the Original Term and any Extension Term of this Lease, the Annual Rent shall be increased by two percent
(2%) per annum.

 

Notwithstanding anything above to the contrary,
Landlord agrees to abate Tenant's obligation to pay the Monthly Installment of Annual Rental for the month of June, 2018.

 

SECTION 4

LATE PAYMENTS

 

In the event that any Monthly Installment
of Annual Rent or Additional Rent shall be past due for more than five (5) days, Tenant shall pay to Landlord as Additional Rent
a late charge equal to the greater of (a) five percent (5%) of the unpaid Rent, or (b) the interest on the unpaid Rent from the
date when due until payment at the rate of ten percent (10%) per annum, or, if less, the highest rate permitted by law; The late
charge imposed under this Section is not a penalty and has been agreed to by Landlord and Tenant as necessary to compensate Landlord
for its additional costs associated with late payment.

 

 

SECTION 5

SECURITY DEPOSIT

 

Tenant has deposited with Landlord the
Security Deposit, if any, which sum shall be held without payment of interest as security for the performance by Tenant of its
obligations under this Lease. Landlord is authorized to commingle said security deposit with its own funds, and Landlord shall
not be responsible for the solvency of the depository so long as it is insured by the Federal Deposit Insurance Corporation, Federal
Savings and Loan Insurance Corporation, or similar insurer. If Tenant shall perform all such obligations, the Security Deposit
shall be refunded to Tenant, without interest, within thirty (30) days after termination of this Lease. If Tenant shall default
in any obligation (beyond all applicable notice and cure periods, if any), Landlord shall be entitled to apply any or all of the
Security Deposit toward Landlord's damages resulting therefrom as reasonably determined by Landlord, and Tenant shall, within
five (5) business days after notice thereof, deposit with Landlord an amount sufficient to restore the Security Deposit to its
original amount, which amount shall constitute Additional Rent under this Lease.

 

    	5

    	 

    

 

If Tenant is in default under this Lease
(beyond all applicable notice and cure periods, if any) more than two (2) times within any twelve (12) month period, irrespective
of whether or not such default is cured, then, without limiting Landlord’s other rights and remedies provided for in this
Lease or at law or equity, Landlord may increase the Security Deposit, upon written request to Tenant, to an amount equal to two
(2) times the original Security Deposit (which increased Security Deposit shall be paid by Tenant to Landlord within fifteen (15)
days of the demand therefor).

 

SECTION 6

EXTENSION

 

Upon the expiration of the Original Term,
Tenant shall have One (1) option to extend this Lease for an Extension Term of One (1) year, provided that Tenant gives Landlord
at least six (6) months prior written notice of its unconditional and irrevocable exercise of each such option and provided further
Tenant is not then in defaulthereunder (beyond all applicable notice and cure periods, if any). In the event that Tenant exercises
its option as to any Extension Term, all provisions of this Lease shall apply during each Extension Term except the Annual Rent
and Monthly Installments of Annual Rental which shall be in accordance with Section 3, above.

 

SECTION 7

UTILITIES

 

From and after Lease Commencement, Tenant
shall make arrangements with each utility company and public body to provide, in Tenant's name, gas, electricity, water, sewer
and telephone necessary for Tenant's use of the Premises. Tenant shall pay directly to the companies furnishing utility service
the cost of all service connection fees and the cost of all utilities consumed throughout the Term. If the water and/or sewer service
is not separately metered, Landlord shall pay the water and/or sewer bills for the Property, and Tenant shall pay to Landlord its
Tenant’s Percentage of the cost thereof within 30 days receipt of invoice from Landlord. In the event that Tenant fails to
pay in a timely manner any sum required under this Section, Landlord shall have the right, but not the obligation, to pay any such
sum. Any sum so paid by Landlord shall be deemed to be owed by Tenant to Landlord and due and payable as Additional Rent within
ten (10) business days after written demand is received by Tenant.

 

Tenant's obligations for payment of the
costs incurred for utilities which serve the Premises prior to the termination of this Lease shall survive such termination.

 

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SECTION 8

TAXES

 

(a)          Tenant
shall be liable for Taxes levied against personal property, trade fixtures, and tenant improvements placed by Tenant in the Premises.
If any such Taxes based on the personal property or trade fixtures placed by Tenant in the Premises are levied against Landlord
or Landlord's property and if Landlord elects to pay the same or if the assessed value of Landlord's property is increased by inclusion
of personal property and trade fixtures placed by Tenant in the Premises and Landlord elects to pay the Taxes based on such increase,
Tenant shall pay to Landlord, within fifteen (15) days of Tenant’s receipt of a written demand therefor (along with a copy
of the applicable tax bill), that part of such Taxes for which Tenant is liable hereunder.

 

(b)          Landlord
shall pay, at its sole cost and expense, all Taxes currently assessed against the Building and the Property and Taxes levied against
any improvements placed by or on behalf of Landlord in, on or about the Building, the Property or the Premises.

 

(c)          If
Tenant should fail to pay any Taxes required to be paid by Tenant hereunder, in addition to any other remedies provided herein,
Landlord may, if it so elects, pay such Taxes. Any sum so paid by Landlord shall be deemed to be owed by Tenant to Landlord and
due and payable as Additional Rent within fifteen(15) days after written demand is received by Tenant.

 

SECTION 9

COMMON AREAS AND OPERATING EXPENSES

 

(a)          In
addition to the use of the Premises, Tenant, its employees, and business invitees shall have the right to use the Common Areas
in common with Landlord and other tenants of the Property, their employees, and business visitors, if any, subject to Landlord’s
rights hereunder. Tenant shall not obstruct Landlord’s access to the Common Areas or use them for any purpose other than
their customary or intended purposes.

 

(b)          Landlord
shall manage and maintain the Common Areas at Landlord’s expense, all in such manner as Landlord, in its sole discretion,
may, from time to time, reasonably determine, and Landlord shall have the sole right and exclusive authority to employ and discharge
all personnel with respect thereto Subject to reasonable prior written notice to Tenant (and, as reasonably requested by Tenant,
scheduling with Tenant), Landlord hereby expressly reserves the right to close temporarily all or any portion of the Common Areas
for the purpose of making repairs, changes or alterations thereto or performing necessary maintenance in connection with any emergency
or for any other commercially reasonable purpose whatsoever, whether such purpose is similar or dissimilar to the foregoing; provided,
however, no prior notice or scheduling shall be required in connection with an emergency. If the size, area, level, location, or
arrangement of such Common Areas or the type of facilities at any time forming a part thereof be changed, altered, rearranged,
or diminished, Landlord shall not be subject to any liability therefor, nor shall Tenant be entitled to any compensation or diminution
or abatement of Rent therefor, nor shall such alteration, rearrangement, revocation, change, or diminution of such Common Areas
be deemed a constructive or actual eviction or otherwise be grounds for terminating or modifying this Lease; provided, however,
no such changes, alterations, rearrangements or diminution shall materially and adversely interfere with Tenant’s permitted
use of or access to the Premises or materially increase Tenant’s obligations under this Lease.

 

 

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SECTION 10

 

ADDITIONS TO THE BUILDING

 

Landlord shall have the exclusive right
to use all or any part of the roof and exterior walls of the Building for any purpose;, however, no such use shall materially and
adversely interfere with Tenant’s permitted use of or access to the Premises or materially increase Tenant’s obligations
under this Lease; provided, further, Landlord shall not be permitted to build additional stories on the Building in which the Premises
is located and/or to build adjoining the same. Subject to the foregoing and the other terms set forth herein and except as otherwise
expressly provided herein: (a) Landlord shall be permitted to erect and maintain in connection with any construction, temporary
scaffolds and other aids to construction on the exterior of the Building; (b) Landlord shall have access to the Premises that may
be necessary or desirable to perform such work; and (c) Tenant shall not be entitled to any abatement of Rent on account thereof.

 

SECTION 11

RESTRICTIONS ON USE; COMPLIANCE WITH
LAW

 

(a)          Tenant
shall not use or permit the Premises, or any part thereof, to be used for any purpose other than general office use and medical
treatments relating to Tenant’s business. Furthermore, no use of the Premises shall be made or permitted to be made that
shall result in: (i) waste of the Premises, or any part thereof; (ii) a public or private nuisance that may disturb the quiet enjoyment
of Landlord or other tenants of the Property; (iii) except as set forth above; improper, unlawful or objectionable use including
sale, storage, or preparation of food, alcoholic beverages, or materials generating an odor on the Premises; or (iv) noises or
vibrations that may disturb the Landlord or other tenants.. Tenant shall comply, at its own expense, with all restrictive covenants
and governmental regulations and statutes affecting the Premises and Tenant's use thereof either now or in the future; provided,
however, Landlord shall obtain Tenant’s prior written approval (not to be unreasonably withheld) of any restrictive covenants
that will be binding on the Premises and/or Tenant and to be recorded after the date hereof.

 

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(b)          After
Lease Commencement, Tenant, at Tenant’s expense, shall comply with all laws, ordinances, and regulations of federal, state,
and local authorities, including, but not limited to, Tenant’s use of the Premises and with the recorded covenants, conditions,
and restrictions, regardless of when they become effective, including, without limitation, all applicable federal, state, and local
laws, ordinances, or regulations pertaining to air and water quality, Hazardous Material, waste disposal, air emissions, and other
environmental matters, all zoning and other land use matters, utility availability, and with any direction of any public officer
or officers, pursuant to law, which shall impose any duty upon Landlord or Tenant with respect to the use or occupation of the
Premises; provided, however, Landlord shall be solely responsible for any required structural upgrades or repairs and capital improvements
required as a result thereof; provided, further, Landlord shall obtain Tenant’s prior written approval (not to be unreasonably
withheld) of any restrictive covenants, conditions, and restrictions that will be binding on the Premises and/or Tenant and to
be recorded after the date hereof .

 

(c)          As
used in this Lease, the term “Hazardous Materials” shall mean and include:  (a) any hazardous or toxic wastes, materials
or substances and other pollutants or contaminants, which are or become regulated by any Environmental Laws (defined below); (b)
petroleum, petroleum by-products, gasoline, diesel fuel, crude oil or any fraction thereof; (c) asbestos and asbestos-containing
materials, in any form, whether friable or non-friable; (d) polychlorinated biphenyls; (e) radioactive materials; (f) lead and
lead-containing materials; (g) any other material, waste or substance displaying toxic, reactive, ignitable or corrosive characteristics,
as all such terms are used in their broadest sense, and are defined or become defined by any Environmental Law; or (h) any materials
which cause or threatens to cause a nuisance upon or waste to any portion of the Property or any surrounding property, or poses
or threatens to pose a hazard to the health and safety of persons on the Premises, any other portion of the Property or any surrounding
property. For purposes of this Lease, the term "Hazardous Materials" shall not include nominal amounts of ordinary household
cleaners, office supplies and janitorial supplies which are not actionable under any Environmental Laws.

 

(d)          Tenant
shall not be entitled to use or store any Hazardous Materials on, in, or about any portion of the Premises and the Property without,
in each instance, obtaining Landlord's prior written consent thereto. If Landlord, in its sole discretion, consents to any such
usage or storage, then Tenant shall be permitted to use and/or store only those Hazardous Materials that are necessary for Tenant's
business that are expressly approved by Landlord in writing, and Tenant shall disclose all such Hazardous Materials in a HazMat
Certificate to be executed by Tenant in a form and with information reasonably specified by Landlord. Any such usage and storage
may only be to the extent of the quantities of Hazardous Materials as specified in the then-applicable HazMat Certificate as expressly
approved by Landlord. In all events, such usage and storage must at all times be in full compliance with any and all local, state
and federal environmental, health and/or safety-related laws, statutes, orders, standards, courts' decisions, ordinances, rules
and regulations (as interpreted by judicial and administrative decisions), decrees, directives, guidelines, permits or permit
conditions, currently existing and as amended, enacted, issued or adopted in the future which are or become applicable to Tenant
or all or any portion of the Premises, including, but not limited to, the Resource Conservation and Recovery Act, the Toxic Substances
Control Act, the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA" or "Superfund"),
the Clean Air Act, and the Clean Water Act (collectively, the "Environmental Laws") and in compliance with reasonable
recommendations of Landlord's consultants. Tenant agrees that any changes to the type and/or quantities of Hazardous Materials
specified in the most recent HazMat Certificate may be implemented only with the prior written consent of Landlord, which consent
may be given or withheld in Landlord's sole discretion. Tenant shall not be entitled nor permitted to install any tanks under,
on or about the Premises for the storage of Hazardous Materials without the express written consent of Landlord, which may be
given or withheld in Landlord's sole discretion. Landlord shall have the right, in Landlord's sole discretion, at all times during
the Term of this Lease, and upon giving reasonable notice to Tenant, to (i) inspect the Premises, (ii) conduct tests and investigations
to determine whether Tenant is in compliance with the provisions of this Section 11 or to determine if Hazardous Materials are
present in, on or about the Property, (iii) request lists of all Hazardous Materials used, stored or otherwise located on, under
or about any portion of the Premises and/or the Common Areas, and (iv require Tenant to complete a survey of its use, storage
and handling of Hazardous Materials in the Premises, using a form and following procedures designated by Landlord, in Landlord's
reasonable discretion (the "Survey"). If, as a result of an inspection, test or survey, Landlord reasonably determines
that Tenant has stored Hazardous Materials on the Premises or Property, other than those disclosed in the Initial HazMat Certificate,
and that safety, security or compliance measures are necessary, Tenant shall within thirty (30) days after written request by
Landlord perform such measures, at Tenant's sole cost and expense. The aforementioned rights granted herein to Landlord and its
representatives shall not create (a) a duty on Landlord's part to inspect, test, investigate, monitor or otherwise observe the
Premises or the activities of Tenant and Tenant Parties with respect to Hazardous Materials, including, without limitation, Tenant's
operation, use and any remediation relating thereto, or (b) liability on the part of Landlord and its representatives for Tenant's
use, storage, disposal or remediation of Hazardous Materials, it being understood that Tenant shall be solely responsible for
all liability in connection therewith.

 

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(e)          Tenant
shall give to Landlord prompt verbal and follow-up written notice of any spills, releases, discharges, disposals, emissions, migrations,
removals or transportation of Hazardous Materials, on, under or about any portion of the Premises or in any Common Areas; provided
that Tenant has actual knowledge of such event(s). Tenant, at its sole cost and expense, covenants and warrants to promptly investigate,
clean up, remove, restore and otherwise remediate (including, without limitation, preparation of any feasibility studies or reports
and the performance of any and all closures) any spill, release, discharge, disposal, emission, migration or transportation of
Hazardous Materials arising from or related to the intentional or negligent acts or omissions of Tenant or Tenant Parties such
that the affected portions of the Property and any adjacent property are returned to the condition existing prior to the appearance
of such Hazardous Materials. Any such investigation, clean up, removal, restoration and other remediation shall only be performed
after Tenant has obtained Landlord's prior written consent, which consent shall not be unreasonably withheld so long as such actions
would not potentially have a material adverse long-term or short-term effect on any portion of the Property. Notwithstanding the
foregoing, Tenant shall be entitled to respond immediately to an emergency without first obtaining Landlord's prior written consent.
Tenant, at its sole cost and expense, shall conduct and perform, or cause to be conducted and performed, all closures as required
by any Environmental Laws or any agencies or other governmental authorities having jurisdiction thereof with respect to environmental
conditions for which Tenant is responsible hereunder. If Tenant fails to so promptly investigate, clean up, remove, restore, provide
closure or otherwise so remediate, Landlord may, but without obligation to do so, take any and all steps reasonably necessary to
rectify the same, and Tenant shall reimburse Landlord, within ten (10) business days after its receipt of a written demand, for
all reasonable, out-of-pocket costs and expenses to Landlord of performing investigation, clean up, removal, restoration, closure
and remediation work. All such work undertaken by Tenant, as required herein, shall be performed in such a manner so as to enable
Landlord to make full economic use of the Premises and other portions of the Property after the satisfactory completion of such
work.

 

    	10

    	 

    

 

(f)          In
addition to Tenant's other indemnity obligations under this Lease, Tenant agrees to, and shall, protect, indemnify, defend (with
counsel reasonably acceptable to Landlord) and hold Landlord and the other Indemnified Parties (as defined below in Section 20)
harmless from and against any and all loss, cost, damage, liability or expense (including, without limitation, diminution in value
of any portion of the Premises or the Property, damages for the loss of or restriction on the use of rentable or usable space,
and from any adverse impact of Landlord's marketing of any space within the Property) arising at any time during or after the term
of this Lease in connection with or related to, directly or indirectly, the use, presence, transportation, storage, disposal, migration,
removal, spill, release or discharge of Hazardous Materials on, in or about any portion of the Property as a result directly or
indirectly) of the intentional or negligent acts or omissions of Tenant or Tenant Parties. Neither the written consent of Landlord
to the presence, use or storage of Hazardous Materials in, on, under or about any portion of the Property, nor the strict compliance
by Tenant with all Environmental Laws, shall excuse Tenant from its obligations of indemnification pursuant hereto. Tenant shall
not be relieved of its indemnification obligations under the provisions of this Section 11 due to Landlord's status as either an
"owner" or "operator" under any Environmental Laws.

 

(a)          Landlord
hereby represents and warrants to Tenant that to the best of Landlord’s knowledge, the Premises do not contain any Hazardous
Materials and Landlord has not received any notices from any governmental authorities identifying the presence of any Hazardous
Materials in, under or about the Property in violation of Environmental Laws.

 

(b)          Tenant's
and Landlord's obligations and liabilities pursuant to the provisions of this Section 11 shall survive the expiration or earlier
termination of this Lease. If it is determined by Landlord that the condition of all or any portion of the Premises and/or Property
is not in compliance with the provisions of this Lease with respect to Hazardous Materials, including, without limitation, all
Environmental Laws at the expiration or earlier termination of this Lease, then Landlord may require Tenant to hold over possession
of the Premises until Tenant can surrender the Premises to Landlord in the condition in which the Premises existed as of the Commencement
Date and prior to the appearance of such Hazardous Materials except for Hazardous Materials conditions not caused by Tenant or
Tenant Parties and further except for reasonable wear and tear, including without limitation, the conduct or performance of any
closures as required by any Environmental Laws. For purposes hereof, the term "reasonable wear and tear" shall not include
any deterioration in the condition or diminution of the value of any portion of the Property in any manner whatsoever related to,
directly or indirectly, Hazardous Materials. Any such holdover by Tenant will be with Landlord's consent, will not be terminable
by Tenant in any event or circumstance and will otherwise be subject to the provisions of Section 42 of this Lease.

 

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SECTION 12

SERVICES, REPAIRS, AND MAINTENANCE
BY TENANT

 

Except as set forth below, Tenant shall
at all times at its own expense keep and maintain the non-structural, interior elements of the Premises in good order and repair,
and in a neat, safe, clean and orderly condition, including, but not limited to, making all nonstructural ordinary and extraordinary,
foreseen and unforeseen, repairs and replacements to the Premises under Landlord's supervision including, without limitation, repairs
and replacements to the plumbing and electrical (but excluding electrical wiring serving the Premises or within the Premises),
apparatus therein, and to the window glass within the Premises; provided, however, Tenant shall not be responsible to repair any
damage to the Premises caused by Landlord or its agents, contractors, employees or invitees (the responsibility for which shall
be Landlord’s responsibility hereunder). Tenant shall not overload the electrical wiring serving the Premises or within the
Premises, and will install at its own expense under Landlord's supervision, but only after obtaining Landlord's written approval
(not to be unreasonably withheld), any additional electrical wiring which may be required in connection with the Premises.

 

Except as caused by the negligent or intentional
act or omission of Tenant, Tenant shall have no responsibility to make any HVAC, elevator maintenance and repairs, which shall
be the obligation of the Landlord under this Lease.

 

Tenant will repair promptly at its own expense
by or under the direction of Landlord any damage (whether structural or nonstructural) to the Premises or the Building caused by
Tenant, its agents, servants and employees, including, but not limited to, any construction or alterations performed by Tenant
or by bringing into the Premises or on the Property any property for Tenant's use, or by the installation or removal of such property,
regardless of fault or by whom such damage shall be caused, unless solely by the negligence or willful misconduct of Landlord or
its contractors or subcontractors or its or their agents or employees.

 

Tenant shall supply to the Premises and
shall be solely responsible, at its own cost and expense, for the following:

 

(a)          janitorial
service and supplies, including cleaning the Premises;

 

(b)          trash
removal;

 

(c)          hot
water and water treatment;

 

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(d)          interior
and exterior window cleaning, and repair and replacement of any glass (including windows) serving all or a part of the Premises;

 

(e)          extermination
services;

 

(f)          restroom
supplies;

 

(g)          light
bulbs and ballasts;

 

(h)          maintain
a reasonable minimum temperature in order to properly maintain and protect the Building and its components;

 

(i)          security
to the Premises;

 

(j)          interior
lighting; and

 

(k)         telephone,
internet and data lines, and related service, and installation and maintenance of same.

 

Tenant shall have no right to direct or
instruct any of Landlord's contractors, subcontractors, agents or employees, except with the prior written agreement of Landlord.

 

In the event Tenant fails in the performance
to Landlord's satisfaction of any of its obligations under this Lease, and such failure continues for a period of ten (10) days
after written notice from Landlord (except that in an emergency no notice shall be required), Landlord, in addition to Landlord's
other remedies under this Lease, at or in equity, may (but shall not be obligated to do so) cure such default on behalf of Tenant,
and Tenant shall reimburse Landlord, as Additional Rent, within ten (10) business days of its receipt of a written demand, for
any reasonable, actual, out-of-pocket sums paid or costs incurred during curing such default and the late charge specified under
Section 4 shall accrue from the expiration of such 10-business day period until it is reimbursed therefor.

 

Tenant understands and acknowledges that
one or more of the aforesaid services or utilities may be suspended or reduced by reason of accident, emergency or reason specified
in Section 15, or for repairs, alterations, replacements, or improvements which in the reasonable judgment of Landlord are desirable
or necessary to be made. Except as expressly set forth herein, no such interruption or suspension of services or utilities shall
be deemed an eviction or disturbance to Tenant's use and enjoyment of the Premises or any part thereof, nor shall any such interruption
or suspension of services or utilities render Landlord liable to Tenant for damages.

 

Tenant hereby acknowledges that Landlord
shall have no obligation whatsoever to provide guard service or other security measures for the benefit of the Premises or the
Property, and Landlord shall have no liability to Tenant due to its failure to provide such services. Tenant assumes all responsibility
for the protection of Tenant, its agents, employees, contractors and invitees and the property of Tenant and of Tenant's agents,
employees, contractors and invitees from acts of third parties. Nothing herein contained shall prevent Landlord, at Landlord's
sole option and cost, from implementing reasonable security measures for the Property or any part thereof, in which event Tenant
shall participate in such security measures.

 

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SECTION 13

REPAIRS BY LANDLORD

 

Except as set forth in Section 12 above,
Landlord shall make all structural repairs, including, but not limited to, structural columns and floors (excluding floor coverings,
such as carpet and floor tile) of the Premises, the roof and roof membrane of the Building, the load bearing and exterior walls
of the Building (excluding glass), foundation, floor slab, footings and underground utilities, provided Tenant gives Landlord written
notice specifying the need for and nature of such repairs.

 

If by reason of the negligence or willful
misconduct of Landlord, its agents, servants or employeesor the failure of Landlord to comply with all of its obligations hereunder
(including, without limitation, this Section 13 and Section 11(g) above), twenty percent (20%) or more of the rentable floor area
of the Building shall be rendered untenantable, the Annual Rent and Additional Rent shall be abated proportionally as to the portion
of the Premises rendered untenantable while it is untenantable, except such abatement shall not apply to the extent of any business
interruption insurance required to be maintained by Tenant under Section 21.

 

Except as provided herein, Landlord shall
have no liability to Tenant by reason of any inconvenience, annoyance, interruption, or injury to business arising from the making
of any repairs or changes which Landlord is required or permitted by this Lease to make, or by any other tenant's lease or required
by law to make in or to any portion of the Premises, Building or Common Areas.

 

If, without Landlord's prior consent, Tenant
performs or permits to be performed any alterations, additions, improvements, changes, affixations of chattels, or other work which
affects the structural portions of the Premises and/or the roof of the Building or which affects the structural integrity of the
Building, such action by Tenant shall release and discharge Landlord as of the commencement of such alteration, addition, improvement,
affixation, or other work of and from such repair obligation. Thereafter, Tenant agrees to be solely responsible under Landlord's
supervision for the maintenance, repair, and replacement of any or all such structural portions and/or roof which have been affected
as aforesaid, and Tenant shall commence promptly after demand by Landlord to make all such repairs and replacements and proceed
diligently to complete them. In the event Tenant shall fail in the performance, to Landlord's reasonable satisfaction, of such
responsibilities, Landlord, in addition to Landlord's other remedies under this Lease, at law or in equity, may (but shall not
be obligated to do so) cure such failure on behalf of Tenant without any liability of Landlord for damage to Tenant’s fixtures
or other property or to Tenant’s business by reason thereof, and Tenant shall reimburse Landlord, as Additional Rent, within
ten (10) business days of Tenant’s receipt of a written demand, for sums paid or costs incurred in curing such failure and
the late charge specified under Section 4 shall accrue from the expiration of such 10-business day period until Landlord is reimbursed
therefor. For the purpose of the foregoing, if Tenant performs or permits to be performed any such alterations, additions, improvements,
changes, affixations, or other work in a manner not consistent with Landlord's prior consent thereto, such work shall be deemed
to have been performed without Landlord's consent.

 

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SECTION 14

PLACEMENT OF HEAVY EQUIPMENT

 

Tenant shall not place a load upon any floor
of the Premises exceeding the floor load per square foot area which such floor was designed to carry or which may be allowed by
law.

 

SECTION 15

FORCE MAJEURE

 

This Lease and the obligation of Tenant
to pay Rent hereunder and perform all of the other covenants and agreements hereunder on the part of Tenant to be performed shall
not be affected, impaired or excused because Landlord is unable to fulfill any of its obligations under this Lease or is unable
to supply, or is delayed in supplying, any service to be supplied by it under the terms of this Lease or is unable to make, or
is delayed in making, any repairs, additions, alterations, or decorations, or is unable to supply or is delayed in supplying, any
equipment or fixtures, if Landlord is prevented or delayed or otherwise hindered from doing so by reason of any outside cause whatsoever,
including, without limitation, acts of God; fire; earthquake; flood; explosion; action of the elements; declared or undeclared
war; riots; civil disturbances; inability to procure or a general shortage of labor, equipment, energy, materials, or supplies
in the open market; breakage or accident to machinery; partial or entire failure of utilities; failure of transportation; strikes;
lockouts; action of labor unions; condemnation; injunction; court order or decree; governmental preemption; any rule, order or
regulation of any department or subdivision of any government agency; or the conditions of supply and demand which have been or
are affected by war or other emergency. Similarly, Landlord shall not be liable for any interference with any services supplied
to Tenant by others. Nothing contained in this Section shall be deemed to impose any obligation on Landlord not expressly imposed
by other provisions of this Lease. Notwithstanding the foregoing, except for Tenant's obligation to pay rent or any other sums
owed to Landlord hereunder, Tenant shall not be liable to Landlord for any delay in the performance of its obligations under this
Lease to the extent and for the time such delay is made impossible by reason of any cause listed above whatsoever. Tenant shall
take all reasonable efforts to comply with the performance of its obligations under this Lease as soon as Tenant is once again
able to do so under the circumstances.

 

SECTION 16

FURNITURE

 

During the Original Term of this Lease and
the Extension Term, Tenant shall have the use (but not ownership), without further charge, of the following items located in the
Premises at Lease execution:

 

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1.          The
cubicles and file cabinets located on the second floor

2.          The
furniture located in the reception lobby of the first floor

3.          The
large conference room table located in the first floor large conference room.

 

SECTION 17

SURRENDER OF PREMISES

 

(a)          At
the expiration or earlier termination of the Term of this Lease, Tenant shall peaceably surrender the Premises in broom clean condition
and good order and repair and otherwise in the same condition as the Premises were upon the commencement of this Lease, except
(i) ordinary wear and tear; and (ii) damage by fire or other casualty.

 

(b)          If
Landlord elects, in connection with its consent thereto or approval thereof, to require that alterations, installations, changes,
replacements, additions, or improvements made by or on behalf of Tenant to the Premises after the Lease Commencement be removed
at the termination of this Lease, Tenant hereby agrees to cause the same to be removed at its sole cost and expense. If Tenant
fails to remove the same, Landlord may cause them to be removed at Tenant's expense, and Tenant hereby agrees to reimburse Landlord
for the reasonable, out-of-pocket cost of such removal together with all and any damages which Landlord may suffer and sustain
by reason of failure of Tenant to remove the same. At Landlord's election, any or all of the alterations, installations, changes,
replacements, additions to, or improvements made by Tenant upon the Premises shall remain at the termination of this Lease and
not be removed. Tenant shall surrender to Landlord all keys for the Premises at the place then fixed for the payment of Rent and
shall notify Landlord in writing of all combinations of locks, safes, and vaults, if any, in the Premises. Tenant's obligation
to observe and perform the covenants set forth in this Section shall survive the expiration or earlier termination of this Lease.

 

(c)          At
the termination of this Lease, and except as otherwise provided in subsection 17(b) above, Tenant shall immediately remove all
property which it owns and is permitted to remove from the Premises under the provisions of this Lease, and failing to do so, Landlord
at its option may either (i) cause that property to be removed at the risk and expense of Tenant (both as to loss and damage),
and Tenant hereby agrees to pay all reasonable, out-of-pocket costs and expenses incurred thereby, including sums paid to store
the property elsewhere and the cost of any repairs to the Premises caused by the removal of the property, or (ii) upon fifteen
(15) days' written notice to Tenant, which the parties agree is commercially reasonable, sell at public or private sale any or
all such property, whether exempt or not from sale under execution or attachment (such property being deemed charged with a lien
in favor of Landlord for all sums due hereunder), with the proceeds to be applied as set forth in subsection 28(a), or (iii) at
Landlord's option, title shall pass to Landlord.

 

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SECTION 18

ABANDONING THE PREMISES OR PERSONAL
PROPERTY

 

Tenant shall not permanently vacate or abandon
the Premises (without intent to return or to Transfer) at any time during the Term of this Lease, but if Tenant does permanently
vacate or abandon the Premises or is dispossessed by process of law, any personal property belonging to Tenant and left on the
Premises may, at the option of Landlord, be deemed to have been abandoned by Tenant, and the provisions of subsection 17(c) shall
apply.

 

SECTION 19

QUIET ENJOYMENT

 

Landlord warrants that Tenant shall be granted
peaceable and quiet enjoyment of the Premises free from any eviction or interference by Landlord if Tenant pays the Annual Rent
and Additional Rent provided herein, and otherwise fully performs the terms, covenants and conditions imposed herein.

 

SECTION 20

INDEMNIFICATION AND WAIVER OF CLAIM

 

Tenant hereby agrees to indemnify, defend
and hold harmless Landlord and its board of directors, officers, employees, partners, members, managers, agents, contractors, and
lenders (said Persons and entities are hereinafter collectively referred to as the "Indemnified Parties") and save them
harmless from and against any and all liability, cost, damage, claims, loss of rents, liens, judgments, penalties, fines, settlement
costs, investigation costs, cost of consultants and experts, attorneys fees, court costs and other legal expenses, effects of environmental
contamination, cost of environmental testing, removal, remediation and/or abatement of Hazardous Materials (as said term is defined
above), insurance policy deductibles and other expenses (hereinafter collectively referred to as "Damages") arising out
of or related to an Indemnified Matter (as defined below). For purposes of this Section, an "Indemnified Matter" shall
mean any matter for which one or more of the Indemnified Parties incurs liability or Damages if the liability or Damages arise
out of, are related to or involve, directly or indirectly, (a) Tenant's or its employees', agents', contractors' or invitees' (all
of said persons or entities are hereinafter collectively referred to as "Tenant Party") use or occupancy of the Premises
or the Property, (b) any negligence or willful misconduct of a Tenant Party, (c) Tenant's failure to perform any of its obligations
under the Lease, (d) the existence, use or disposal of any Hazardous Material brought on to the Property by a Tenant Party or (e)
any other matters for which Tenant has agreed to indemnify Landlord or other Indemnified Parties pursuant to any other provision
of this Lease. Tenant's obligations hereunder shall include, but shall not be limited to (f) compensation the Indemnified Parties
for Damages arising out of Indemnified Matters within ten (10) business days after written demand from an Indemnified Party, and
(g) providing a defense, with counsel reasonably satisfactory to the Indemnified Party, at Tenant's sole expense, within ten (10)
business days after written demand from the Indemnified Party, of any claims, action or proceeding arising out of or relating to
an Indemnified Matter whether or not litigated or reduced to judgment and whether or not well founded. If Tenant is obligated to
compensate an Indemnified Party for Damages arising out of an Indemnified Matter, Landlord shall have the immediate and unconditional
right, but not the obligation, without notice or demand to Tenant, to pay the damages, and Tenant shall, upon ten (10) business
days' advance written notice from Landlord, reimburse Landlord for the costs incurred by Landlord. By way of example, and not limitation,
Landlord shall have the immediate and unconditional right to cause any damages to the Common Areas, another tenant’s premises
or to any other part of the Property to be repaired and to compensate other tenants of the Property or
other persons or entities for Damages arising out of an Indemnified Matter. The Indemnified Parties need not first pay any
Damages to be indemnified hereunder. This indemnity is intended to apply to the fullest extent permitted by applicable law. Tenant's
obligations under this Section shall survive the expiration or termination of this Lease unless specifically waived in writing
by Landlord after said expiration or termination. Notwithstanding anything above to the contrary, Tenant shall have no obligation
to indemnify, defend or hold harmless Landlord or the other Indemnified Parties if the liability, loss, cost, damage, claim, etc.
is caused by the negligence or intentional act or omission of Landlord or any of the other Indemnified Parties or their breach
of Landlord’s obligations under this Lease.

 

    	17

    	 

    

 

Tenant hereby agrees that Landlord shall
not be liable for injury to Tenant's business or any loss of income therefrom or for loss of or damage to the merchandise, Tenant
improvements, fixtures, furniture, equipment, computers, files, automobiles or other property of Tenant, Tenant's employees, agents,
contractors or invitees, or any other person in or about the Property, nor shall Landlord be liable for injury to the person of
Tenant, Tenant's employees, agents, contractors or invitees, whether such damage or injury is caused by or results from any cause
whatsoever, including, but not limited to, theft, criminal activity at the Property, negligent security measures, bombings or bomb
scares, Hazardous Materials, fire, steam, electricity, gas, water or rain, flooding, breakage of pipes, sprinklers, plumbing, air
conditioning or lighting fixtures, or from any other cause, whether said damage or injury results from conditions arising upon
the Premises or upon other portions of the Property, or from other sources or places, or from new construction or the repair, alteration
or improvement of any part of the Property, unless the cause of the damage or injury arises out of Landlord's or its employees',
agents' or contractors' negligent or intentional acts, willful misconduct or breach of its obligations hereunder. Landlord shall
not be liable for any damages arising from any act or neglect of any employees, agents, contractors or invitees of any other tenant,
occupant or user of the Property, nor from the failure of Landlord to enforce the provisions of the lease of any other tenant of
the Property.Tenant, as a material part of the consideration to Landlord hereunder, hereby, except to the extent arising out of,
caused by or related to Landlord's breach of this Lease, Landlord’s negligence or intentional acts or the negligence or intentional
acts of its employees, agents or contractors, and Hazardous Materials existing prior to Lease Commencement: (a) assumes all risk
of damage to Tenant's Property or business or injury to persons in, upon or about the Property arising from any cause; and (b)
waives all claims in respect thereof against Landlord, its employees, agents or contractors

 

Landlord shall indemnify, defend, protect, and hold harmless
Tenant and the Tenant Parties from any and all Damages incurred in connection with or arising from any cause in, on or about the
Building, which arise out of or are caused by the gross negligence or willful misconduct of Landlord or any Landlord Party. Notwithstanding
the foregoing, Landlord’s indemnity of Tenant shall not apply to any Damages to the extent resulting from the negligence,
willful misconduct of or breach of this Lease by Tenant or the Tenant Parties.

 

    	18

    	 

    

 

Notwithstanding anything to the contrary
herein contained, Landlord and Tenant do mutually each release and discharge the other, and all persons against whom their insurance
company or companies would have a right or claim by virtue of subrogation, of and from all suits, claims, and demands whatsoever,
for loss or damage to the property of the other, even if caused by or occurring through or as a result of any negligent act or
omission of the party released hereby or its contractors, subcontractors, agents, or employees, so long as and to the extent that
such loss or damage is covered by insurance benefitting the party suffering such loss or damage or was required to be so covered
under this Lease. Each party further agrees that each will cause its policies of insurance to be so written as to include a waiver
of subrogation by causing such policies to contain a clause in substantially the following form:

 

“It is hereby stipulated that this insurance
shall not be invalidated should the insured or any of them waive in writing prior to a loss any or all right of recovery against
any person or entity for loss occurring to the property described herein.”

 

If either party shall elect to be a self-insurer
of its property to the extent permitted by this Lease, such waiver of subrogation shall be applicable thereto to the same extent
as if any loss or damage were covered by insurance.

 

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

 

SECTION 21

INSURANCE

 

(a)          Tenant
will keep in force with companies licensed to do business in the State of Maryland and which have a policyholder's rating of A-
or better from Best's Key Rating Guide and Supplemental Service, Property Casualty (or comparable insurance rating service), at
Tenant's expense at all times during the Term of this Lease and during such other times as Tenant occupies the Premises or any
part thereof:

 

(i)          Commercial
general liability policy of insurance written, which protects Tenant and Landlord (as an additional insured) against claims for
bodily injury, personal injury and property damage based upon, involving or arising out of the ownership, use, occupancy or maintenance
of the Premises and/or Property and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single-limit
coverage in an amount not less than Three Million Dollars ($3,000,000.00) per occurrence with an "additional Insured-Managers
and Landlords of Premises Endorsement" (or otherwise provide for such coverage) and contain coverage for bodily injury or
property damage caused by heat, smoke or fumes from fire. The Three Million Dollars ($3,000,000.00) per occurrence limit may be
satisfied through a combination of commercial general liability and umbrella coverage. The commercial general liability policy
shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability
assumed under this Lease as an "insured contract" for the performance of Tenant's indemnity obligations under this Lease.
If the nature of Tenant's operation is such as to place any or all of its employees under the coverage of applicable workers' compensation
or similar statutes, Tenant shall also keep in force, at its own expense, workers' compensation or similar insurance affording
statutory coverage and containing statutory limits; and if the nature of Tenant’s operation is such as to involve the use
of automobiles or other motor vehicles, Tenant shall also keep in force, at its own expense, automobile liability insurance with
limits no less than One Million Dollars ($1,000,000.00) per occurrence, which can be satisfied through a combination of automobile
liability and umbrella coverage.

 

    	19

    	 

    

 

(ii)          Special
Form property insurance covering the full replacement cost value of (A) all of Tenant's contents, furniture, furnishings, machinery,
such equipment as is not affixed to the Premises, trade fixtures, and signs, (B) Tenant's interest in all of the improvements and
betterments installed in the Premises by Tenant, and (C) the furniture and items owned by Landlord and used by Tenant under Section
16.

 

(iii)          Business
interruption insurance with respect to Tenant's loss of incoming in an amount not to exceed One Million Dollars ($1,000,000).

 

(b)          Before
Lease Commencement, Tenant will provide Landlord with certificates of insurance evidencing the insurance coverages required by
this Section. Failure to provide such certificates of insurance shall not relieve Tenant of its obligations to obtain and keep
in force insurance coverage required by this Lease.

 

(c)          Tenant
shall use commercially reasonable efforts to have its insurance companies provide thirty (30) days’ notice of cancellation
(ten (10) days in the case of non-payment) to Landlord for all policies of insurance required to be carried by Tenant under this
Section. Excluding the worker's compensation policy, all such policies shall name Landlord as an additional insured as its interest
may appear. Tenant shall furnish Landlord with renewal certificates of insurance upon request. All insurance obtained by Tenant
shall be primary to any similar insurance carried by Landlord, whose insurance shall be considered
excess only.

 

(d)          If
Tenant shall not comply with its covenants made in this Section, Landlord, in addition to Landlord's other remedies hereunder,
may (but shall not be obligated to), following five (5) business days advance written notice to Tenant of its intent to do so,
cause insurance as aforesaid to be issued, and in such event Tenant agrees to pay the premium for such insurance as Additional
Rent within five (5) business days of Landlord's written demand (along with a copy of the invoice for such premium).

 

(e)          Landlord
will keep in force with companies licensed to do business in the State of Maryland at all times during the term of this Lease:

 

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(i)          All
Risk property insurance covering the Building, and the Premises, including all leasehold improvements therein in an amount equal
to the replacement value thereof, exclusive of land;

 

(ii)          Commercial
general liability insurance in an amount not less than One Million Dollars ($1,000,000.00) per occurrence with respect to the Building
and Premises; and

 

(iii)          Rental
interruption insurance with respect to Landlord's loss of income; for a period of twelve (12) months.

 

(f)          If
for any reason including, but not limited to, the abandonment of the Premises, Tenant’s failure to pay any insurance premium,
or Tenant’s failure to occupy the Premises as herein permitted, Tenant fails to provide and keep in force any or all of the
insurance policies set forth in this Section, then in such event Tenant shall indemnify and hold Landlord and the other Indemnified
Parties harmless against any and all claims, actions, damages, liability, and expense (including, but not limited to, attorney’s
fees) which would have been covered by such insurance.

 

SECTION 22

EFFECT ON INSURANCE

 

Tenant will not do, omit to do, or suffer
to be done or keep or suffer to be kept anything in, upon or about the Property which will violate the provisions of Landlord's
policies insuring the Premises and the Property against loss or damage by fire or other hazards (including, but not limited to,
public liability), which will adversely affect Landlord's fire or liability insurance premium rating or which will prevent Landlord
from procuring such policies in companies acceptable to Landlord. If anything done, omitted to be done, or suffered to be done
by Tenant, or kept or suffered by Tenant to be kept in, upon or about the Property shall cause the premium rate of fire or other
insurance on the Premises or the Property in companies acceptable to Landlord to be increased beyond the established rate from
time to time fixed by the appropriate underwriters with regard to the use of the Premises for the purposes permitted under this
Lease or to the Property for the use or uses being made thereof, Tenant will pay the amount of such increase as Additional Rent
within Fifteen (15) days after receipt of Landlord's written demand (along with a copy of the insurance company’s invoice
therefor) and will thereafter pay the amount of such increase, as the same may vary from time to time, with respect to every premium
relating to coverage of the Premises and the Property during a period falling within the Term of this Lease until such increase
is eliminated. In addition, if applicable, Landlord may, at its option rectify the condition existing on the Property which is
causing or is a contributing cause of the increased premium rate in the event that the Tenant should fail to do so, and Landlord
may charge the cost of such action to Tenant as Additional Rent, payable within fifteen (15) days after receipt of Landlord's written
demand therefor. In determining whether increased premiums are the result of Tenant's use of the Premises or elsewhere on the Property,
a schedule, issued by the organization setting the insurance rate on the Premises and the Property, showing the various components
of such rate, shall be conclusive evidence of the several items and charges which make up the fire insurance on the Premises and
the Property.

 

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SECTION 23

NOTICE OF ACCIDENT OR CASUALTY

 

To the extent that Landlord does not have
actual knowledge thereof, Tenant covenants that it will give written notice to Landlord of any accident or damage affecting the
Building, Premises or Property, whether such accident or damage is caused by insured or uninsured casualty, occurring in, on or
about the Building, Premises or the Property promptly following the occurrence of such accident or damage.

SECTION 24

TOTAL OR PARTIAL DESTRUCTION OF BUILDING

 

(a)          Within
thirty (30) days after Landlord becomes aware of any damage to the Building or Premises from an accident or casualty, Landlord
shall notify Tenant in writing (“Landlord’s Damage Notice”) of the estimated time, in Landlord’s reasonable
judgment, required to substantially complete the repairs of such damage. Landlord may elect not to rebuild and/or restore the Premises
and/or the Building and instead terminate this Lease by notifying Tenant in writing of such termination within thirty (30) days
after Landlord becomes aware of such damage, but Landlord may so elect only if one or more of the following conditions is present:
(i) repairs cannot in Landlord’s opinion, as set forth in Landlord’s Damage Notice, reasonably be completed within
one hundred eighty (180) days after the date Landlord becomes aware of such damage (when such repairs are made without the payment
of overtime or other premiums); or (ii) the damage is not fully covered by Landlord’s insurance policies obtained or required
to be obtained by Landlord pursuant to this Lease. If Landlord exercises any of its options to terminate this Lease as provided
above in this Section 24(a): (A) this Lease shall cease and terminate as of the date set forth in Landlord’s termination
notice, which termination date shall be no less than thirty (30) days and no more than one hundred twenty (120) days after such
termination notice is delivered to Tenant; (B) Tenant shall pay the Annual Rent and Additional Rent, properly apportioned up to
such date of termination and subject to abatement as provided below; and (C) both parties hereto shall thereafter be freed and
discharged of all further obligations hereunder, except as provided for in provisions of this Lease which by their terms survive
the expiration or earlier termination of the Lease Term.

 

(b)          Notwithstanding
the foregoing, if Landlord estimates that the restoration period applicable to the Premises (“Restoration Period”)
will be longer than one hundred eighty (180) days after the date of the damage, and Landlord has not otherwise elected to terminate
this Lease pursuant to Section 24(a), Tenant shall have the right to terminate this Lease by giving Landlord written notice of
such termination within ten (10) days after the date Tenant receives the estimate of the Restoration Period from Landlord. Notwithstanding
the foregoing, if Landlord has not completed the repair and restoration of the Premises by the expiration of the Restoration Period
for any reason other than a Force Majeure delay (not to exceed ninety (90) days), then Tenant may terminate this Lease by giving
Landlord written notice of such termination within ten (10) days after the expiration of the Restoration Period (as may extended).
Tenant’s failure to give written notice of termination of the Lease within the time periods required above shall be deemed
Tenant’s waiver of its termination rights. If Tenant gives written notice of termination of this Lease in accordance with
this Section 24(b), this Lease shall terminate unless Landlord completes the repair and restoration of the Premises and delivers
the same to Tenant within thirty (30) days after the date Landlord receives Tenant’s written termination notice.

 

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(c)          Notwithstanding
the foregoing, if the Premises is damaged or destroyed during the last six (6) months of this Lease and Landlord’s architect
reasonably estimates, by written notice given to the parties within thirty (30) days after the date of such damage, that the time
required to repair and restore the Premises exceeds the period of time remaining under the Lease Term, then either party may terminate
this lease by giving written notice of such termination to the other party within fifteen (15) days after the date of such notice
from Landlord’s architect.

 

SECTION 25

ALTERATIONS

 

Tenant agrees that it will not make any
structural alterations, improvements, additions, repairs, or changes to the interior or exterior of the Premises or non-structural
changes to the exterior of the Building during the Term of this Lease without in each instance obtaining Landlord's prior written
consent, which consent may be withheld in the sole and absolute discretion of Landlord. Tenant agrees that it will not make any
non-structural alterations, additions, repairs or changes to the interior of the Building, during the Term of this Lease, without
in each instance obtaining Landlord's prior written consent, which shall not be unreasonably withheld or delayed. Together with
each request for consent, Tenant shall present to Landlord reasonably detailed plans and specifications for such proposed alterations,
improvements, additions, repairs or changes; provided, however, approval of such plans and specifications by Landlord shall not
constitute any assumption of responsibility by Landlord for their accuracy or sufficiency, and Tenant shall be solely responsible
for such items.

 

          All
alterations, improvements, additions, repairs or changes shall be done either by or under the direction of Landlord, but at the
expense of Tenant; provided, however, Landlord shall only engage contractors which are competitively prices and reasonably available
to complete the proposed alterations, improvements, additions or changes. All alterations, improvements, additions, repairs or
changes made by Tenant, shall, unless Landlord gives notice to Tenant to remove the same, remain upon the Premises at the expiration
or earlier termination of the Term of this Lease and shall become the property of Landlord immediately upon installation thereof.
The same shall remain the property of Landlord (without any obligation of Landlord to pay compensation therefor) unless Landlord
gives Tenant written notice to remove any or all of the aforesaid, in which event Tenant shall remove at Tenant's expense such
of the same as may be specified in Landlord's notice to Tenant, and Tenant shall promptly restore the Premises to the same good
order and condition as it was at the commencement of the Term of this Lease except (i) to the extent the Premises is not required
to be repaired and/or maintained by Tenant, and (ii) damage by fire or other casualty. Should Tenant fail to do so, Landlord may
do so, collecting, at Landlord's option, the cost and expense thereof from Tenant, as Additional Rent, within ten (10) business
days of Landlord’s written demand therefor. Landlord consent shall not be required for non-structural alterations such as
partitions, painting, decorating and alterations not exceeding Five Thousand Dollars ($5,000.00).

 

    	23

    	 

    

 

SECTION 26

MECHANICS' LIENS

 

Tenant and other Tenant Parties shall not
do or suffer to be done any act, matter or thing whereby Landlord's or Tenant's interest in the Premises, or any part thereof,
may be encumbered by any mechanics' lien. Tenant shall discharge or stay the enforcement by bond or otherwise, within ten (10)
business days after the date Tenant receives written notice of any mechanics' liens filed against Tenant's interest in the Premises,
or any part thereof, purporting to be for labor or material furnished to Tenant. Landlord may, at its option, discharge any such
mechanics' lien not discharged by Tenant within such ten (10) business day period, and Tenant, within ten (10) business days of
Landlord’s written demand, shall reimburse Landlord for any such expense incurred by Landlord. Any monies expended by Landlord
shall be deemed Additional Rent, collectible as such by Landlord and the late charge specified in Section 4 shall accrue from the
sexpiration of such 10-business day period. Landlord shall not be liable for any labor or materials furnished
or to be furnished to Tenant upon credit, and no mechanics' or other lien for labor or materials shall attach to or affect the
reversionary or other estate or interest of Landlord in and to the Premises or the Building.

SECTION 27

BREACH OR DEFAULT

 

(a)          Tenant
shall have breached this Lease and shall be considered in default hereunder if (a) Tenant files a petition in bankruptcy or insolvency
or for reorganization under any bankruptcy or insolvency law or act, or makes an assignment for the benefit of creditors; (b) involuntary
proceedings are instituted against Tenant under any bankruptcy or insolvency law or act (which are not dismissed within thirty
(30) days); (c) Tenant fails to pay any Annual Rent, Monthly Installment of Annual Rent, or Additional Rent when due (subject to
the cure period set forth below); and (d) Tenant fails to perform or comply with any of the covenants or conditions of this Lease
or the rules and regulations now or hereinafter established for the Premises, Building or Property within thirty (30) days after
written notice from Landlord, provided that if such failure cannot reasonably be cured within such thirty (30) days period, Tenant
shall have an additional reasonable time to cure such failure so long as Tenant promptly commences such cure and diligently pursues
such cure to completion. The preceding notwithstanding, Landlord shall provide written notice of default to Tenant and Tenant shall
have the opportunity to cure any and all monetary defaults within a reasonable period not to exceed thirty (30) days and non-monetary
defaults within ninety (90) days.

 

(b)          Landlord
shall have breached this Lease and shall be considered in default hereunder if Landlord fails to perform or comply with any of
the covenants or conditions of this Lease within sixty (60) days after written notice from Tenant, provided that if such failure
cannot reasonably be cured within such sixty (60) day period, Landlord shall have a reasonable time to cure such failure so long
as Landlord promptly commences such cure and diligently pursues such cure to completion.

 

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SECTION 28

EFFECT OF BREACH

 

(a)          In
the event of a breach of this Lease as set forth in Section 27(a), Landlord shall have the option to do any of the following in
addition to and not in limitation of any other remedy permitted by law or by this Lease: (i) following termination of this Lease,
to re-enter the Premises, using force if necessary, to dispossess Tenant and all other occupants from the Premises and to remove
any or all of Tenant's property at the Premises; (ii) thereafter, to store Tenant's property in a public warehouse or elsewhere
at the cost, risk, and expense of Tenant, without Landlord's being deemed guilty of trespass or becoming liable for any loss or
damage, which may occur on Tenant's property; and (iii) upon thirty (30) days' written notice to Tenant, which the parties agree
is commercially reasonable, to sell at public or private sale any or all of said property, whether exempt or not from sale under
execution or attachment (such property being deemed charged with a lien in favor of Landlord for all sums due hereunder), with
the proceeds of sale to be applied: first, to the costs and expenses of retaking, removal, storage, preparing for sale, and sale
of the property (including reasonable attorneys' fees); and second, to the payment of any sum due hereunder to Landlord (including
Rent, Additional Rent, charges, and damages, both theretofore and thereafter accruing); and, third, any surplus to Tenant.

 

(b)          Further,
upon the occurrence of any such breach, Landlord, in addition to any other remedies it may have at law, in equity, by statute,
or under any other provision of this Lease, shall have the right to terminate this Lease, as well as all right, title, and interest
of Tenant hereunder, by giving to Tenant not less than thirty (30) days' advance written notice of Landlord's election to cancel
and to terminate this Lease. Upon the expiration of the time fixed in the notice of termination, this Lease and the balance of
the Term then remaining, as well as all of the right, title, and interest of Tenant under this Lease, shall expire in the same
manner and with the same force and effect (except for the Tenant's liability as hereinafter set forth) as if the expiration of
the time fixed in the notice of termination was the date upon which the Term would normally have expired. Tenant shall then immediately
quit and surrender the Premises and each and every part thereof to Landlord, and Landlord may enter upon the Premises, by force,
summary proceedings, or otherwise. In any of such events, Landlord shall be entitled to the benefit of all provisions of the ordinances
and public local laws of the city or county where the Property is located and of the Public General Laws of the State of Maryland
dealing with the speedy recovery of lands and tenements held over by tenants or proceedings in forcible entry and detainer. Upon
termination of the Lease and any entry or re-entry by Landlord thereafter, with or without legal process, Landlord shall also have
the right (but not the obligation) to re-let all or part of the Premises, from time to time, at the risk and expense of Tenant.
No re-entry by Landlord following the termination of this Lease shall be deemed a release of the Tenant's liability for damages
under the provisions of this Section.

 

(c)          Tenant
further agrees (i) if this Lease is terminated by reason of Tenant's default, or (ii) if Landlord, following any of the foregoing
events, elects to let or re-let the Premises (whether once or more than once during the remainder of the Term, and upon such conditions
as are satisfactory to Landlord) that Tenant shall, nevertheless, in each instance, remain liable for the performance of any covenant
of this Lease then in default and for all Rent and all other charges and damages which may be due or sustained before and after
the date of default, together with the cost of seizure and repossession of the Premises and reasonable attorneys' fees incurred
by Landlord as a result of the breach of this Lease, subject to Landlord's obligation to mitigate its damages.

 

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(d)          In
any of the events described in the preceding subsection, Tenant agrees that it will remain liable to Landlord for liquidated damages
to be calculated and paid, at Landlord=’s
option, in either of the following ways:

 

(i)          the
Rent that, but for the termination of this Lease, would have become due during the remainder of the Term, less the amount or amounts
of rent, if any, that Landlord shall receive during such period from others to whom the Premises may be rented net of all reasonable
costs and expenses incurred by Landlord in connection with Tenant’s default, including, but not limited to, the cost to repair,
restore, renovate, or decorate the Premises for a new tenant, reasonable attorney’s fees, real estate commissions, the cost
of any legal actions against Tenant, in which case liquidated damages shall be computed and payable in monthly installments, in
advance, on the first day of each calendar month following the termination of this Lease and shall continue until the date on which
the Term would have expired but for such termination; or

 

(ii)          the
Rent that, but for the termination of this Lease, would have become due during the remainder of the Term, less the fair rental
value of the Premises, as reasonably determined by an independent real estate appraiser selected by Landlord, in which case such
liquidated damages shall be payable to Landlord in one lump sum within ten (10) business days of a written demand and shall bear
interest at the interest rate specified in Section 4 until paid. In no event shall Landlord be required to account to Tenant for
any amounts by which the fair rental value shall have exceeded the stipulated Rent at the time of such termination. Liquidated
damages shall be payable in accordance with (i) above unless and until Landlord elects liquidated damages to be paid in accordance
with (ii).

 

(e)          Suit
or suits for the recovery of such deficiency or damages or for a sum equal to any Monthly Installment or Installments of Annual
Rent and Additional Rent and other charges payable hereunder may be brought by Landlord from time to time, at Landlord's election.
Nothing herein contained shall be deemed to require Landlord to await the date when this Lease or the Term would have normally
expired had there been no such default by Tenant or no such termination by Landlord.

 

(f)          In
connection with any of the Premises re-letting(s), Landlord shall have the absolute right, without such actions being or being
deemed to be a surrender of its rights or as a termination of this Lease or as a release of the Tenant's liability hereunder for
the balance of the Term or Extension Term, to let or re-let the Premises for a longer or shorter term than that remaining after
Tenant's default, to lease more or less area than that contained in the Premises, to lease the Premises together with other premises
or property owned or controlled by Landlord, and to change the character or use of the Premises.

 

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(g)          No
entry or re-entry by Landlord, whether had or taken under summary proceedings or otherwise, nor any letting or re-letting shall
absolve or discharge Tenant from liability hereunder. Tenant's liability hereunder, even if there be no letting or re-letting,
shall survive the issuance of any dispossess warrant, order of court terminating this Lease, or any other termination based upon
Tenant's default. The words "enter", "re-enter", and "re-entry" as used in this Section and elsewhere
in this Lease are not restricted to their technical legal meanings.

 

(h)          No
payment received by Landlord from Tenant after re-entry or the termination of this Lease in any lawful manner shall reinstate,
continue or extend the Term of this Lease or affect any notice theretofore given to Tenant by Landlord or operate as a waiver of
the right of Landlord to recover possession of the Premises by proper suit, action, proceedings, or other remedy.

 

(i)           In
the event Tenant fails to vacate the Premises after a breach of this Lease by Tenant, or at any time after termination of this
Lease as provided above, Tenant shall pay double Additional Rent for the holdover period.

 

(j)           Nothing
in this Section shall limit or prejudice the right of Landlord to prove and to obtain, as liquidated damages by reason of a termination
arising out of the provisions of this Section, an amount equal to the maximum allowed by any statute or rule of law in effect as
of the time when, and governing the proceedings in which such damages are to be proved, whether or not such amount be greater,
equal to, or less than the amount of liquidated damages computed under this Section.

 

(k)          In
the event of a breach of this Lease by Landlord, as set forth in Section 27(b), Tenant, subject to the other terms and provisions
of this Lease and, in addition to any other remedies it may have at law, in equity, by statute,
or under any other provisions of this Lease, shall have the right to terminate this Lease by giving to Landlord not less than thirty
(30) days' advance written notice of Tenant's election to cancel and to terminate this Lease.

 

SECTION 29

INTENTIONALLY OMITTED

 

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SECTION 30

ACCESS BY LANDLORD

 

(a)          Upon
twenty-four (24) hours written notice, Landlord and its contractors and subcontractors, and its or their agents and employees may
at all reasonable times during Normal Business Hours during the Term of this Lease enter to inspect the Premises and/or may show
the Premises and Property to others, provided that such entrance is with the prior notice to Tenant and consistent with Tenant's
security obligations; provided, however, except for emergencies, any such access or other entry into the Premises shall (i) be
performed in an expeditious manner so as not to unreasonably interfere with Tenant’s use of the Premises, and (2) to the
extent commercially reasonable, be scheduled with Tenant so that Tenant, at Tenant’s option, may provide a representative
to accompany Landlord. Landlord agrees to take no photographs of any active work areas in the Premises without Tenant’s prior
consent and agrees that any confidential business information obtained by any entry into the Premises by Landlord or its employees,
agents or contractors shall be kept strictly confidential. In the event of notice of termination of this Lease or during the last
six (6) months of the Term, unless Tenant has previously properly exercised any remaining option to extend this Lease, Landlord
shall have the right from the date of such notice to display (but not so as to unreasonably obstruct the view thereof or access
thereto) the customary "For Rent" or "For Lease" sign, and Landlord may show the Premises and all parts thereof
to prospective tenants during Normal Business Hours. 

 

(b)          Subject
to the foregoing, Landlord also reserves the right after notice of intention to so enter (except that in the event of an emergency,
no notice shall be required) to enter the Premises at any time and from time to time to make such repairs, additions, or alterations
or remedy any contamination as it may deem necessary for the safety, improvement, preservation, or condition thereof, or of the
Property, but Landlord assumes no obligation to do so, and the performance thereof by Landlord shall not constitute a waiver of
Tenant's default in failing to perform the same. To the extent Landlord complies with the terms of this Lease, Landlord shall in
no event be liable for any inconvenience, disturbance, loss of business, or other damage to Tenant by reason of the performance
by Landlord of any work in, upon, above, under, or outside the Premises. If Tenant shall have vacated or abandoned the Premises,
or in the event of an emergency, or if in any other instance after Landlord has given notice of Landlord's intention to enter,
Tenant or Tenant's agents or employees shall not be personally present to permit an entry into the Premises, then in such event,
Landlord and its contractors and subcontractors and its or their agents and employees may enter the same by the use of reasonable
force or otherwise without rendering Landlord liable therefor, and without in any manner affecting Tenant's obligations under this
Lease. Tenant shall have the right to accompany Landlord and its contractors and subcontractors during inspections or other such
entry onto the Premises.

 

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(c)          If
during the last month of the Term, Tenant has permanently vacated the Premises and removed all or substantially all of its personal
property, Landlord may immediately enter and alter, renovate, and redecorate the Premises. The exercise of any such reserved right
by Landlord shall not be deemed an eviction or disturbance of Tenant's use and possession of the Premises and shall not render
Landlord liable in any manner to Tenant or to any other person, nor shall the same constitute any grounds for an abatement of Rent
hereunder.

 

(d)          Notwithstanding
anything to the contrary set forth in this Section 30, Tenant may reasonably designate certain areas of the Premises as “Secured
Areas” should Tenant require such areas for the purpose of securing certain valuable property or confidential information.
In connection with the foregoing, Landlord shall not enter such Secured Areas except in the event of an emergency. Landlord shall
only maintain or repair such secured areas to the extent (i) such repair or maintenance is required in order to maintain and repair
the Building structure and/or the Building systems and/or to prevent or repair damage to other portions of the Building; (ii) as
required by applicable laws, or (iii) in response to specific requests by Tenant and in accordance with a schedule reasonably and
mutually determined by the parties

 

SECTION 31

ASSIGNMENT AND SUBLETTING

 

(a)          Notwithstanding
anything to the contrary herein, Tenant shall have the right to sublease or assign all or any portion of the Premises to an Affiliate
(as defined hereinbelow) without the consent of Landlord, provided that the following conditions are satisfied: (a) the Affiliate
is a bona fide entity engaged in a business substantially similar to Tenant; (b) the Affiliate shall assume the obligations of
Tenant under this Lease by signing a commercially reasonable assumption agreement; and (c) such assignment or sublease shall not
be a subterfuge by Tenant to avoid its obligations under this Lease. For purposes of this Section 31, an "Affiliate"
shall mean and refer to: (i) an entity which acquires all or substantially all of the assets or stock of Tenant; (ii) a corporation,
partnership, limited liability company or other entity that controls, is controlled by or is under common control with Tenant;
and/or (iii) an entity created by a merger or consolidation with Tenant. "Control," as used in this Section, shall mean
the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person
or entity, whether by the ownership of voting securities, by contract or otherwise. In the event of any such sublease or assignment,
the Tenant shall also remain liable under this Lease.

 

(b)          As
to other assignments or subleases, Tenant shall not make or permit an Assignment of this Lease or any interest of Tenant herein,
in whole or in part, by operation of law or otherwise, without first obtaining in each and every instance the prior written consent
of Landlord, which consent may not be unreasonably withheld so long as the assignee or subtenant's use complies with this Lease
and the assignee or subtent’s use does not interfere with other tenant’s use of the Property or their premises and
the assignee or subtenant meets Landlord's financial requirements in Landlord’s sole discretion. No less than ten (10) business
days prior to the effective date of a proposed Assignment of the Lease or an Assignment of the Premises for the remainder of the
then applicable Term, Tenant shall offer to re-convey to Landlord, as of the effective date, the Premises, which offer shall contain
an undertaking by Tenant to accept, as full and adequate consideration for the re-conveyance, Landlord’s
release of Tenant from all future Rent and other obligations under this Lease with respect to the Premises. Landlord, in its absolute
discretion, shall accept or reject the offered re-conveyance within ten (10) business days of the offer, and, if Landlord accepts,
the re-conveyance shall be evidenced by an agreement in form and substance reasonably acceptable to Landlord. If Landlord fails
to accept or reject the offer within the ten (10) business day period, Landlord shall be deemed to have rejected the offer; however,
no such rejection by Landlord shall be deemed to be consent to an Assignment.

 

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(c)          Any
consent by Landlord to an Assignment shall be held to apply only to the specific transaction thereby authorized and shall not constitute
a waiver of the necessity for such consent to any subsequent Assignment, including, but not limited to, a subsequent Assignment
by any trustee, receiver, liquidator, or personal representative of Tenant. In the event Tenant executes an agreement to effect
an Assignment, such agreement shall provide (i) that the subtenant or other occupier of space shall take subject to this Lease,
(ii) that the occupier shall also fulfill all obligations of Tenant under this Lease as they pertain to the portion of the Premises
set forth in the Assignment, and (iii) that with respect to such portion of the Premises, the occupier shall be deemed to be the
Tenant under this Lease.

 

(d)          If
this Lease or any interest herein is assigned or if the Premises or any part thereof be sublet, used, or occupied by anyone
other than Tenant without Landlord's prior written consent having been obtained thereto, Landlord may nevertheless collect
Rent (including Additional Rent) from the assignee, sublessee, user, or occupant and apply the net amount collected to the
Rents herein reserved. Furthermore, in any such event Tenant shall pay to Landlord monthly, as Additional Rent, fifty percent
(50%) of the excess (net of brokerage fees) of consideration received or to be received for such Assignment (whether or not
denoted as rent) over the sum of (i) the Annual Rent reserved for such month in this Lease applicable to such portion of the
Premises so assigned, sublet, or occupied, . No such Assignment or collection shall be deemed a waiver of the covenant herein
against Assignment by others, or the acceptance of the assignee, subtenant, user or occupant as Tenant hereunder, or
constitute a release of Tenant from the further performance by Tenant of the terms and provisions of this Lease. If this
Lease or any interest of Tenant herein be assigned or if the whole or any part of the Premises be sublet or used or occupied
by others, after having obtained Landlord's prior written consent thereto, Tenant shall nevertheless remain fully liable for
the full performance of all obligations under this Lease to be performed by Tenant, and Tenant shall not be released
therefrom in any manner.

 

(e)          If
Tenant is a corporation and if at any time during the Term of this Lease any part or all of the corporate shares of Tenant, or
of a parent corporation of which Tenant is a direct or indirect subsidiary, shall be transferred by sale, assignment, bequest,
inheritance, operation of law, or other disposition so as to result in a change in the present effective voting control of Tenant
or of such parent corporation by the person or persons owing or controlling a majority of the shares of Tenant or of such parent
corporation on the date of this Lease, Tenant shall promptly notify Landlord in writing of such change, and such change in voting
control shall constitute an Assignment of this Lease for all purposes of this Section; provided, however, that this provision shall
not apply in the event that as of the date of this Lease over fifty percent (50%) of the voting power of the Tenant corporation
or of such parent corporation is held by fifty (50) or more unrelated shareholders or distributed to such number of unrelated shareholders
in a public distribution of securities.

 

    	30

    	 

    

 

(f)          If
Tenant is a partnership and if at any time during the Term of this Lease any person or entity which at the time of the execution
of this Lease owns a general partner's interest ceases to own such general partner's interest, such cessation of ownership shall
constitute an Assignment of this Lease for all purposes of this Section, and Tenant shall promptly notify Landlord in writing of
such change.

 

SECTION 32

CONDEMNATION

 

If the whole of the Premises shall be taken
by a public or quasi-public authority under the power of eminent domain, condemnation, or expropriation or in the event of a conveyance
in lieu thereof, then this Lease shall terminate as of the date on which possession of the Premises is required to be surrendered
to the condemning authority, and Tenant shall have no claim against Landlord or the condemning authority for the value of the unexpired
Term of this Lease.

 

If any part of the Premises shall be so
taken or conveyed, and if such partial taking or conveyance shall render the Premises unsuitable for the business of Tenant, then
the Term of this Lease shall cease and terminate as of the date on which possession of the part of the Premises so taken or conveyed
is required to be surrendered to the condemning authority, and Tenant shall have no claim against Landlord or the condemning authority
for the value of any unexpired Term of this Lease. In the event such partial taking or conveyance is not extensive enough to render
the Premises unsuitable for the business of Tenant, this Lease shall continue in full force and effect except that the Annual Rent
shall be reduced in the same proportion that the floor area of the Premises so taken or conveyed bears to such floor area immediately
prior to such taking or conveyance, such reduction commencing as of the date Tenant is required to surrender possession of such
part of the Premises so taken or conveyed. Landlord shall promptly restore the Premises, to the extent of condemnation proceeds
available for such purpose, as nearly as practicable to a condition comparable to its condition at the time of such condemnation
less the part lost in the taking or conveyance, and thereafter Tenant shall promptly make all necessary repairs, restoration, and
alterations of Tenant's fixtures, equipment, and furnishings and shall promptly reenter the Premises. For purposes of determining
the amount of funds available for restoration of the Premises from the condemnation awarded, said amount will be deemed to be that
part of the award which remains after payment of Landlord's reasonable expenses incurred in recovering the condemnation award and
of any amounts due to Landlord's Mortgagee, and which represents a portion of the total sum so available (excluding any award or
other compensation for land) which is equitably allocable to the Premises.

 

If the whole Building shall be so taken
or conveyed, Landlord or Tenant shall have the right and power, at their option to be exercised by written notice to the other
party, to terminate this Lease effective either the date title vests in the condemning authority or the date Landlord is required
to deliver possession of the part so taken or conveyed. In any event, Tenant shall have no claim against Landlord .

 

    	31

    	 

    

 

Although all damages in the event of any
condemnation are to belong to the Landlord and Landlord's Mortgagee as aforesaid, whether such damages are awarded as full compensation
for diminution in value of the leasehold or the fee of the Premises, Tenant shall have the right to the extent that same shall
not diminish the Landlord's or such Mortgagee's award to claim and recover from the condemning authority, but not from Landlord
or such Mortgagee, such compensation as may be separately awarded or recoverable by Tenant under law, in Tenant's own right for
or on account of, and limited solely to, goodwill and any cost to which
Tenant might be put in removing Tenant's furniture, fixtures, leasehold improvements, and equipment.

 

SECTION 33

EXECUTION OF ESTOPPEL CERTIFICATE

 

At any time, and from time to time, upon
the written request of Landlord or any Mortgagee, Tenant, within twenty (20) days of the date of such written request, agrees to
execute and deliver to Landlord or such Mortgagee, without charge and in a form reasonably satisfactory to Landlord and/or such
Mortgagee, a written statement: (a) ratifying this Lease; (b) confirming the commencement and expiration dates of the Term of this
Lease; (c) certifying that Tenant is in occupancy of the Premises, and that the Lease is in full force and effect and has not been
modified, assigned, subleased, supplemented, or amended except by such writings as shall be stated; (d) certifying that all conditions
and agreements under this Lease to be satisfied or performed by Landlord have been satisfied and performed except as stated; (e)
certifying that, to Tenant’s actual knowledge, Landlord is not in default under the Lease and there are no defenses, set-offs,
recoupments, or counterclaims against the enforcement of this Lease by Landlord, or stating the defaults, defenses, set-offs, recoupments,
and/or counterclaims, claimed by Tenant; (f) reciting the amount of advance Rent, if any, paid by Tenant and the date to which
such Rent has been paid; (g) reciting the amount of Security Deposit held by Landlord, if any; and (h) containing any other information
which Landlord or the Mortgagee shall reasonably require.

 

The failure of Tenant to execute, acknowledge,
and deliver to Landlord and/or any Mortgagee a statement in accordance with the provisions of this Section within the period set
forth herein shall constitute an acknowledgment by Tenant that may be relied upon by any person holding or intending to acquire
any interest whatsoever in the Premises or the Building, that this Lease has not been assigned, amended, changed, or modified,
is in full force and effect, and that the Annual Rent and Additional Rent have been duly and fully paid not beyond
the respective due dates immediately preceding the date of the request for such statement
and that there are no defaults by Landlord or defenses, set-offs, recoupments, or counterclaims against the enforcement
of this Lease by Landlord which may exist prior to the date of the written request.

 

    	32

    	 

    

 

SECTION 34

SUBORDINATION AND ATTORNMENT

 

(a)           Tenant
agrees, at Landlord's discretion: (i) that, except as hereinafter provided, this Lease is, and all of Tenant's rights hereunder
are and shall always be, subject and subordinate to any Mortgage now existing or hereafter given by Landlord and to all advances
made or to be made thereunder and to the interest thereon, and all renewals, replacements, modifications, consolidations, or extensions
thereof; and (ii) that if any Landlord's Mortgagee or if the purchaser at any foreclosure sale or at any sale under a power of
sale or assent to decree contained in any such Mortgage shall at its sole option so request, Tenant will attorn to, and recognize
such Mortgagee or purchaser, as the case may be, as Landlord under this Lease for the balance then remaining of the Term of this
Lease, subject to all terms of this Lease; and (iii) that the aforesaid provisions shall be self-operative, and no further instrument
or document shall be necessary unless required by any such Mortgagee or purchaser. Tenant's obligation set forth in this subsection
(a) shall be conditioned upon Landlord's Mortgagee agreeing in writing that neither it nor any purchaser at a foreclosure sale
shall disturb Tenant's quiet possession of the Premises so long as Tenant is not in default of this Lease (beyond all applicable
notice and cure periods, if any). 

 

(b) Notwithstanding anything to the contrary
set forth above, any Landlord's Mortgagee may at any time subordinate its Mortgage to this Lease, without Tenant's consent, by
execution of a written document subordinating such Mortgage to this Lease to the extent set forth therein, and thereupon this
Lease shall be deemed prior to such Mortgage to the extent set forth in such written document without regard to their respective
dates of execution, delivery and/or recording. In that event, to the extent set forth in such written document, such Mortgagee
shall have the same rights with respect to this Lease as though this Lease had been executed and this Lease or memorandum thereof
recorded prior to the execution, delivery, and recording of the Mortgage. Should Landlord or any Mortgagee or purchaser desire
confirmation of either such subordination or such attornment, as the case may be, Tenant upon written request, and from time to
time, will execute and deliver without charge and in form reasonably satisfactory to Landlord, the Mortgagee, or the purchaser
all instruments and/or documents that may be requested to acknowledge such subordination and/or agreement to attorn, in recordable
form, within fifteen (15) days of such request.

 

(c)          Tenant
agrees that no Landlord's Mortgagee, Landlord's Mortgagee-in-possession, or purchaser shall be bound by any payment of Rent made
more than thirty (30) days prior to its due date, and any such sum shall be due and payable on the due date. Tenant further agrees
that no Landlord's Mortgagee, Landlord's Mortgagee-in-possession, or purchaser shall be responsible for the Security Deposit or
other similar funds in respect of this Lease not actually paid to it.

 

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SECTION 35

SIGNS AND ADVERTISING

 

Landlord shall permit Tenant to erect building
signage on the exterior of the Building, subject to Landlord’s reasonable approval, as long as the signage is consistent
in design and size with other historic Fell’s Point properties and complies with all governmental codes and regulations.
Except as set forth above, Tenant shall not inscribe, paint, affix, or display any sign, notice, or advertisement on any of the
windows, doors, walls, or any part of the outside or inside of the Premises and the remainder of the Property without the prior
written consent of Landlord. Any installation of signage shall be at Tenant’s expense and be under the supervision of Landlord.
In the event such consent is given, Landlord shall nevertheless have the right to claim from Tenant such costs as Additional Rent
as may be necessary to maintain such signs and also to remove such signs at the termination of the Lease and to restore the Building
or the Premises to its state before the placing of said signs. Tenant shall first obtain Landlord's written approval as to size,
location, material and design.

 

SECTION 36

RULES AND REGULATIONS

 

Tenant agrees to be bound by the rules
and regulations set forth on Exhibit A. Landlord reserves the right from time to time to adopt and promulgate reasonable, non-discriminatory
rules and regulations applicable to the Premises, the Building and to the Property, and to supplement such rules and regulations,
and Tenant agrees to be bound thereby. Notice of such rules and regulations and of any amendment and supplements thereto shall
be given to Tenant, and Tenant agrees thereupon to comply with and observe all such rules and regulations. A breach of any of
such rules and regulations, whether now existing or hereinafter adopted, shall be deemed a breach of this Lease. Landlord shall
not be liable to Tenant or responsible for any costs or damages for failure to enforce the rules and regulations uniformly.

 

SECTION 37

PARKING SPACES

 

Landlord shall make available for Tenant's
use the Parking Spaces without cost. Upon Tenant’s written request, Landlord shall provide Additional Parking Spaces pursuant
to a separate Parking Sublease Agreement to be entered into by Landlord and Tenant, attached hereto as Exhibit B, attached hereto
and made a part hereof. Tenant shall pay for each Additional Parking Space, the Parking Fee, set forth above, payable monthly as
Additional Rent. Landlord reserves the right to designate the type and location of the Parking Spaces, and the right from time
to time to change the type and location of Additional Parking Spaces.

 

At Landlord's sole discretion, Tenant shall
provide Landlord with the license plate number, year, make and model of the automobiles entitled to use the Parking Spaces, and
if requested by Landlord, such automobiles shall be identified by stickers provided by Landlord, and only such designated automobiles
(along with Tenant’s business visitors and guests) shall be entitled to use the Parking Spaces.

 

    	34

    	 

    

 

The Additional Parking Spaces are subject
to terms and provisions of the Parking Sublease Agreement set forth in Exhibit B, and the rules and regulations as established
from time to time by the owner of the Additional Parking Spaces, and Tenant agrees to fully comply with all such rules and regulations,
and Landlord reserves the right to terminate Tenant’s use of such spaces if Tenant fails to so comply after reasonable notice.

 

Landlord assumes no responsibility or liability
to Tenant of any kind whatsoever from any cause with respect to the use of the Parking Spaces, the Additional Parking Spaces or
other parking spaces, adjoining streets, sidewalks, driveways, property, and passage ways, or the use thereof of anyone entitled
to use the area.

 

SECTION 38

OFAC CERTIFICATION

 

Tenant certifies that: (i) it is not acting,
directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the United States
Treasury Department as a terrorist, "Specially Designated National and Blocked Person," or other banned or blocked person,
entity, nation or transaction pursuant to any law, order, rule or regulation, that is enforced or administered by the Office of
Foreign Assets Control; and (ii) it is not engaged in this transaction, directly or indirectly on behalf of, or instigating or
facilitating this transaction, directly or indirectly on behalf of, any such person, group, entity or native.

 

SECTION 39

INTENTIONALLY OMITTED

 

SECTION 40

REPAYMENT OF "ABATED RENT"

 

If this Lease provides for a postponement
of any monthly rental payments, a period of "free" rent or other rent concession, such postponed rent or "free"
rent is called the "Abated Rent". Tenant shall be credited with having paid all of the Abated Rent upon the expiration
of the Term only if Tenant has fully, faithfully and punctually performed all of Tenant's obligations hereunder, including the
payment of all Rent (other than Abated Rent) and all other monetary obligations and the surrender of the Premises in the physical
condition required by this Lease. Tenant acknowledges that its right to receive credit for the Abated Rent is absolutely conditioned
upon Tenant's full, faithful and punctual performance of its obligations under this Lease. If prior to the end of the Original
Term of this Lease, Tenant defaults and does not cure within any applicable grace period and Landlord terminates the Lease, the
Abated Rent shall immediately become due and payable in full and this Lease shall be enforced as if there were no such rent abatement
or other rent concession. In such case, Abated Rent shall be calculated based on the full initial rent payable under this Lease.

 

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SECTION 41

ACCORD AND SATISFACTION

 

No payment by Tenant or receipt by Landlord
of a lesser amount than any payment of Annual Rent or Additional Rent herein stipulated shall be deemed to be other than on account
of the earliest stipulated Annual Rent or Additional Rent due and payable, nor shall any endorsement or statement on any check
or any letter accompanying any check or payment as Rent be deemed an accord and satisfaction. Landlord may accept such check or
payment without prejudice to Landlord's right to recover the balance of such Rent or pursue any other remedy provided in this Lease,
at law or in equity.

 

SECTION 42

NO PARTNERSHIP

 

Landlord does not, in any way or for any
purpose, become a partner of Tenant in the conduct of its business, or otherwise, or joint venturer or a member of a joint enterprise
with Tenant. This Lease establishes a relationship solely of landlord and tenant.

 

SECTION 43

HOLDING OVER

 

Should Tenant hold over in possession of
the Premises after the expiration of this Lease, Tenant shall be deemed to be occupying the Premises from month to month, subject
to such occupancy's being terminated by either party upon at least thirty (30) day's written notice, at one hundred fifty percent
(150%) of the Annual Rent in effect at the expiration of this Lease, all calculated from time to time as though this Lease had
continued, and otherwise subject to all of the other terms, covenants, and conditions of this Lease insofar as the same may be
applicable to a month-to-month tenancy. In addition, if Landlord has given Tenant at least fifteen (15) days’
prior notice that Landlord has leased the Premises or any part thereof to another tenant, Tenant shall pay as Additional
Rent to Landlord for all damages sustained by reason of Tenant's retention of possession. Nothing in this Section excludes Landlord's
right of re-entry or any other right hereunder.

 

SECTION 44

BROKERAGE COMMISSION

 

Tenant represents and warrants to Landlord
that Tenant has had no dealings, negotiations, or consultations with respect to the Premises, the Building, or this transaction
with any real estate agent, broker or finder other than Cushman & Wakefield of Maryland, Inc. and that no real estate, broker
or finder other than Cushman & Wakefield of Maryland, Inc. called the Premises or any other space in the Building to Tenant's
attention for lease. In the event that any real estate agent, broker or finder claims to have submitted the Premises or any other
spaces in the Building to Tenant, to have induced Tenant to lease the Premises, the Building, or this transaction, Tenant agrees
to cooperate fully with Landlord in defending against any such claim.

 

    	36

    	 

    

 

At the time of Lease Commencement, Landlord
agrees to compensate Tenant's exclusive broker, in accordance with a commission agreement executed between Landlord and Cushman
Wakefield.

 

SECTION 45

RECORDATION

 

Tenant shall not record this Lease without
the written consent of Landlord. Upon Landlord's request or with Landlord's written consent, the parties agree to execute a short
form of this Lease for recording purposes containing such terms as Landlord believes appropriate or desirable, the expense thereof
to be borne by Landlord (unless Tenant requests the recording in which case the expense shall be borne by Tenant). If such a short
form of this Lease is recorded, upon the termination of this Lease Tenant shall execute, acknowledge, and deliver to Landlord an
instrument in writing releasing and quitclaiming to Landlord all right, title, and interest of Tenant in and to the Premises arising
from this Lease or otherwise, all without cost or expense to Landlord (unless Landlord requested the recording of the short form
in which case it shall be Landlord’s cost and expense).

 

SECTION 46

WAIVERS

 

The failure of Landlord to insist for a
period of time on strict performance of any one or more of the terms, covenants, or conditions hereof shall not be deemed a waiver
of the rights or remedies that such party may have, and shall not be deemed a waiver of any subsequent breach or default in any
term, covenant, or condition hereof. No waiver by Landlord or Tenant of any provision hereof shall be deemed to have been made
unless expressed in writing and signed by such party.

 

SECTION 47

REMEDIES FOR LANDLORD

 

Any and all remedies available to Landlord
for the enforcement of the provisions of this Lease are cumulative and not exclusive, and Landlord shall be entitled to pursue
either the rights enumerated in this Lease or remedies authorized by law, or both. Tenant shall be liable for any costs or expenses
incurred by Landlord in enforcing any terms of this Lease, or in pursuing legal action for the enforcement of Landlord's rights,
including court costs and reasonable attorneys' fees, in amounts to be affixed by court, if Landlord prevails in such action or
enforcement. Landlord shall be liable for any costs or expenses incurred by Tenant in enforcing any terms of this Lease, or in
pursuing legal action for the enforcement of Tenant's rights, or in defending any wrongful claim of Landlord, including court costs
and reasonable attorneys' fees, in amounts to be affixed by court, if Tenant prevails in such action or enforcement.

 

    	37

    	 

    

 

SECTION 48

TABLE OF CONTENTS; CAPTIONS

 

The Table of Contents and captions appearing
in this Lease are inserted only as a matter of convenience and do not define, limit, construe or describe the scope or intent of
the Sections of this Lease nor in any way affect this Lease.

 

SECTION 49

NOTICES

 

Any and all notices permitted or required
to be given hereunder shall be in writing and shall be deemed duly given three (3) days after the time such notice shall be deposited
into the United States mail, if delivery is by postage paid, registered or certified, return receipted mail, or one (1) day after
the time such notice is sent by overnight delivery by a national delivery service.

 

Any Notice in any other manner shall be
deemed given when actually received. Such Notice shall be sent to the respective party at the address given in this Lease or to
any other address that the respective party may designate by Notice delivered pursuant hereto. Nothing herein contained shall be
construed to preclude personal service of any Notice in the manner prescribed for personal service of a summons or other legal
process.

 

SECTION 50

APPLICABLE LAW

 

This Lease shall be governed by and construed
in accordance with the laws of the State of Maryland without regard to choice of law principles, and the parties hereto agree to
submit to the exclusive jurisdiction of the Courts of the State of Maryland for the resolution of any disputes arising hereunder.

 

SECTION 51

SUCCESSORS AND INCLUDED PERSONS

 

All rights, obligations and liabilities
herein given to, or imposed upon, the respective parties hereto shall extend to and bind the several respective personal representatives,
successors, and assigns of the said parties; and if Tenant shall consist of more than one person or entity, they shall all be bound
jointly and severally by the terms, covenants, and conditions herein. No rights, however, shall inure to the benefit of any personal
representative, successor, or assign of Tenant unless the Assignment to such party has been approved by Landlord in writing as
provided in Section 31.

 

In any provision of this Lease involving
Landlord’s being defended, released from liability, indemnified, held harmless, or not being deemed to be liable for any
action, omission, or circumstance, the term “Landlord” shall include Landlord and Landlord's contractors and subcontractors
and its or their present and future controlling persons, directors, officers, employees, and agents.

 

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In any provision of this Lease involving
Tenant’s being defended, released from liability, indemnified, held harmless or not being deemed to be liable for any action,
omission or circumstance, the term “Tenant” shall include Tenant and Tenant’s contractors and subcontractors
and its or their present and future controlling persons, directors, officers, employees, and agents.

 

SECTION 52

WAIVER OF TRIAL BY JURY

 

LANDLORD AND TENANT HEREBY WAIVE TRIAL BY
JURY IN ANY ACTION OR PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER PARTY HERETO AGAINST THE OTHER PARTY ON ANY AND EVERY MATTER,
DIRECTLY OR INDIRECTLY, ARISING OUT OF OR WITH RESPECT TO THIS LEASE.

 

SECTION 53

RIGHTS OF AND CLAIMS AGAINST LANDLORD

 

(a)          Tenant
waives all rights to bring a counterclaim in any action brought by Landlord for the non-payment of Rent or any other summary proceeding
thereon. The foregoing shall not preclude Tenant from bringing a separate action against Landlord in the event of any breach of
Landlord's obligations and covenants set forth in this Lease.

 

(b)          Except
to the extent specifically provided herein to the contrary, whenever Landlord's consent or approval is required to be given under
any provision of this Lease, such consent or approval may be withheld in the sole and absolute subjective discretion of Landlord,
and Landlord shall not be required to respond to any request for consent or approval within a time period determined by Tenant.
Whenever Landlord is authorized to exercise discretion, Landlord shall have the sole and absolute subjective right to determine
how to exercise such discretion.

 

(c)          All
obligations of Landlord hereunder shall be construed as covenants, not conditions.

 

(d)          Landlord
may transfer all or part of its interest in the Premises and assign this Lease without the consent of Tenant, at any time and from
time to time. Tenant agrees that in the event of such a transfer, Landlord shall automatically be released from all future liability
under this Lease; and Tenant hereby agrees to look solely to Landlord's transferee for the performance of Landlord's obligations
hereunder after the date of the transfer.

 

(e)          If
Tenant obtains a money judgment against Landlord or its successors or assigns under any provisions of, or with respect to this
Lease or on account of any matter, condition or circumstance arising out of the relationship of the parties under this Lease, Tenant's
occupancy of the Premises or Landlord's ownership of the Premises, Tenant shall be entitled to have execution upon such judgment
only upon Landlord's estate in the Property (including any sales, rental, insurance and condemnation proceeds therefrom) and not
out of any other assets of Landlord, any of its partners, or its successors or assigns; and Landlord shall be entitled to have
any such judgment so qualified as to constitute a lien only on Landlord's estate (including any sales, rental, insurance and condemnation
proceeds therefrom), subject to any liens antedating such judgment; provided, however, that this sentence shall be inapplicable
to the extent that judgment against Landlord is covered by insurance.

 

    	39

    	 

    

 

(f)          At
any time when there is an outstanding Mortgage covering Landlord's interest in the Premises, Tenant may not exercise any remedies
for default by Landlord hereunder unless and until the Mortgagee shall have received written notice of such default and a period
of thirty (30) days to cure such default after Landlord's period to cure shall have elapsed.

 

(g)          No
board member, office, member, partner, employee or agent of Landlord or Tenant shall be personally liable for the performance of
such party's obligations hereunder or be named as a party in any lawsuit arising out of or related to, directly or indirectly,
this Lease and the obligations of such party hereunder. The obligations under this Lease do not constitute personal obligations
of the individuals or member entities of Landlord or Tenant, if any, and neither Landlord nor Tenant shall seek recourse against
the said individuals or member entities of the other party or their assets.

 

SECTION 54

CALCULATION OF TIME

 

In computing any period of time prescribed
or allowed by any provision of this Lease, the day of the act, event or default from which the designated period to time begins
to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, Sunday or a legal
holiday, in which event the period runs until the end of the next day which is not a Saturday, Sunday or legal holiday. Unless
otherwise provided herein, all Notice and other periods expire as of 5:00 p.m. (local time in Maryland) on the last day of the
Notice or other period.

 

SECTION 55

ATTORNEY FEES

 

          Except
as may be set forth elsewhere in this Lease, in any litigation by which one party to this Lease either seeks to enforce its rights
under this Agreement or seeks a declaration of any rights or obligations under this Lease, the prevailing party shall be entitled
to an award of its reasonable attorney fees and costs and expenses incurred.

 

SECTION 56

INTERPRETATION

 

          This
Lease shall be interpreted as if it was prepared by both parties and ambiguities shall not be resolved in favor of Tenant because
all or a portion of this Lease was prepared by Landlord. The captions contained in this Lease are for convenience only and shall
not be deemed to limit or alter the meaning of this Lease. As used in this Lease, the words Tenant and Landlord include the plural
as well as the singular. Words used in the neuter gender include the masculine and feminine gender.

 

    	40

    	 

    

 

SECTION 57

SEVERABILITY; REDUCTION OF CHARGES

 

(a) It is agreed that, for the purpose
of any lawsuit brought or based on this Lease, this Lease shall be construed to be a divisible contract, to the end that successive
actions may be maintained thereon as successive periodic sums shall mature to be due hereunder, and it is further agreed that
failure to include in any lawsuit or action any sum or sums then matured or due shall not be a bar to the maintenance of any lawsuit
or action for the recovery of said sum or sums so omitted; and each party agrees that it will not in any suit or suits brought
or arising under this Lease for a matured sum for which judgment has not previously been obtained or entered, plead, rely on or
interpose the defenses of res adjudicate, former recovery, extinguishment, merger, election of remedies or other similar defense
as a defense to said suit or suits.

 

(b)          If
any term, clause or provision of this Lease is declared invalid by a court of competent jurisdiction, the validity of the remainder
of this Lease shall not be affected thereby but shall remain in full force and effect.

 

(c)          In
the event that any late charge, interest rate or other payment provided herein exceeds the maximum applicable charge legally allowed,
such late charge, interest rate or other payment shall be reduced to the maximum legal charge, rate or amount.

 

SECTION 58

COUNTERPARTS

 

This Lease may be executed in multiple counterparts
or in duplicate, and when so executed by all parties shall constitute one agreement.

 

SECTION 59

TOTAL AGREEMENT

 

This Lease contains the entire agreement
between the parties and cannot be changed or modified except by a written instrument subsequently executed by the parties hereto.

 

SECTION 60

NO MERGER

 

There shall be no merger of this Lease or
of the leasehold estate hereby created with the fee estate in the Premises or any part thereof by reason of the fact that the same
person, firm, corporation or other legal entity may acquire or hold, directly or indirectly, this Lease or the leasehold estate
and the fee estate in the Premises or any interest in such fee estate, without the prior written consent of Landlord's Mortgagee.

 

    	41

    	 

    

 

SECTION 61

TIME OF THE ESSENCE

 

Time is of the essence in all provisions
of this Lease to be performed by or on behalf of either party.

 

SECTION 62

COMMERCIAL PURPOSE

 

The parties stipulate that the Premises
is being leased exclusively for business, commercial, manufacturing, mercantile or industrial purposes within the meaning of Section
8-110(a) of the Real Property Article of the Annotated Code of Maryland, and that the provisions of Section 8-110(b) of such Article
(or any future statute) pertaining to the redemption of reversionary interests under leases shall be inapplicable to this Lease.

 

SECTION 63

NON-DISTURBANCE AGREEMENT

 

So long as the Lease is in full force and
effect, Tenant is not in default under any provision of this Lease after applicable cure periods, and no event has occurred which
has continued to exist for a period of time (after notice, if any, required by this Lease) as would entitle Landlord to terminate
this Lease or with cause, without further action by Landlord, the termination of this Lease or would entitle Landlord to dispossess
the Tenant thereunder;

 

(a)          Tenant's
rights under this Lease, including the right of possession of the Premises shall not be terminated or disturbed
by any steps or proceeding taken by Lender in the exercise of any right under any mortgage or the indebtedness secured thereby;
and

 

(b)          This
Lease shall not be terminated or effected by said exercise of any remedy provided for in the mortgage, and the Lender hereby covenants
that any sale by it of the Property pursuant to the exercise of any rights and remedies under the mortgage or otherwise, shall
be made subject to this Lease and rights of the Tenant hereunder.

 

(c)          Landlord
agrees to use reasonable efforts to obtain from any future lender as to the Property acknowledgement of this non-disturbance provision.

 

LANDLORD AND TENANT ACKNOWLEDGE THAT THEY HAVE CAREFULLY READ
AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN AND, BY EXECUTION OF THIS LEASE, SHOW THEIR INFORMED AND VOLUNTARY
CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
AND EFFECTUATE THE INTENT AND PURPOSE OF LANDLORD AND TENANT WITH RESPECT TO THE PREMISES. TENANT
ACKNOWLEDGES THAT IT HAS BEEN GIVEN THE OPPORTUNITY TO HAVE THIS LEASE REVIEWED BY ITS LEGAL COUNSEL PRIOR TO ITS EXECUTION. PREPARATION
OF THIS LEASE BY LANDLORD OR LANDLORD'S AGENT AND SUBMISSION OF SAME TO TENANT SHALL NOT BE DEEMED AN OFFER BY LANDLORD TO LEASE
THE PREMISES TO TENANT OR THE GRANT OF AN OPTION TO TENANT TO LEASE THE PREMISES. THIS LEASE SHALL BECOME BINDING UPON LANDLORD
ONLY WHEN FULLY EXECUTED BY BOTH PARTIES AND WHEN LANDLORD HAS DELIVERED A FULLY EXECUTED ORIGINAL OF THIS LEASE TO TENANT.

 

    	42

    	 

    

 

IN WITNESS WHEREOF, Landlord and
Tenant have caused this Lease to be executed, under seal, as of the date and year first above written.

 

	ATTEST/WITNESS:	 	LANDLORD:
	 	 	1001 FELL STREET LIMITED PARTNERSHIP, LLLP
	 	 	 
	 	 	By:	 	(SEAL)
	 	 	 	S. A. BROWN, III	 
	 	 	 	Partner	 
	 	 	 
	ATTEST/WITNESS:	 	TENANT:
	 	 	 
	 	 	VACCINOGEN, INC.,
	 	 	a Maryland corporation
	 	 	 
	 	 	By:	 	(SEAL)
	 	 	 	ANDREW L. TUSSING	 
	 	 	 	President and Chief Executive Officer	 

 

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EXHIBIT A

RULES AND REGULATIONS

 

1.          Tenant
shall not obstruct or permit its agents, employees, customers, contractors, visitors, or licensees to obstruct, in any way, the
Common Areas, including, without limitation, the parking lot, sidewalks, entry passages, corridors, halls, stairways, or elevators
of the Building, or use the above-specified areas in any way other than as a means of passage to and from the Premises; bring in,
store, use any materials on the Property which could cause a fire or an explosion or produce any fumes or vapor; make or permit
any improper or disturbing noises; throw substances of any kind out of windows or doors, or down passages or in the halls or passageways;
or place anything upon the window sills. Any trash or rubbish created by moving Tenant into the Premises, or any heavy or excessive
waste materials resulting from Tenant’s occupancy and use of the Premises, shall be removed from the Property by Tenant at
Tenant’s sole cost and expense.

 

2.          Plumbing
facilities shall not be used for any purpose other than those for which they were constructed; and no sweepings, rubbish, ashes,
newspapers, or other substances of any kind shall be thrown into them. Waste and excessive or unusual use of electricity or water
is prohibited.

 

3.          Tenant
shall not obstruct the windows, doors, partitions, or lighting that permit, reflect, or admit light into the halls or other Common
Areas or space occupied in the Building by any person other than Tenant.

 

4.          Intentionally
Omitted.

 

5.          Intentionally
Omitted.

 

6.          No
motorcycles, bicycles, vehicles other than automobiles, or animals of any kind (other than seeing-eye animals) shall be brought
into or kept in or about the Property except with prior written approval of Landlord.

 

7.          Tenant
shall not conduct, or permit any other person to conduct, any auction upon the Premises, without the prior written approval of
Landlord, except the storage of usual supplies and inventory to be used by Tenant in the conduct of its business; permit the Premises
to be used for gambling; make any unusual noises on the Property; permit to be played any musical instrument in the Premises; permit
to be played any radio, television, recorded, or wired music in such a loud manner as to disturb or annoy other tenants or other
occupants of the Property; or permit any unusual odors to be produced upon the Premises.

 

8.          No
awnings or other projections shall be attached to the outside walls of the Building without the prior written consent of Landlord.

 

9.          Canvassing,
soliciting, and peddling on the Property are prohibited, and Tenant shall cooperate to prevent the same.

 

    	-i-

    	 

    

 

10.          Landlord
shall have the right to prohibit any signs or advertising by Tenant which in Landlord’s reasonable opinion tends to impair
the reputation of the Building or its desirability as a building for offices, and upon written notice from Landlord, Tenant shall
refrain from or discontinue such advertising.

 

11.          Landlord
hereby reserves to itself any and all rights not granted to Tenant hereunder, including, but not limited to, the following rights
which are reserved to Landlord for its purposes in operating the Building.

 

(a)          the
exclusive right to use of the name of the Building for all purposes, except that Tenant shall use the name as its business address
and for no other purposes;

 

(b)          the
right to change the name or address of the Building, without incurring any liability to Tenant for so doing;

 

(c)          except
as set forth in the Lease, the right to install and maintain a sign or signs on the exterior of the Building;

 

(d)          the
exclusive right to use the use of the roof of the Building;

 

(e)          the
right to grant anyone the right to conduct any particular business or undertaking in the Building.

 

12.          Moving
in and out of the Building must be coordinated with Landlord at least twenty-four (24) hours in advance of the move-in or move-out
date.

 

    	-ii-exhibit4-1.htm

 

 

EXHIBIT 4.1

Form of Series A Warrants

 

TAPIMMUNE INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

Series A Warrant No.: 1-12-15 – [--]

 

Date of Issuance:  January 12, 2015 (“Issuance Date”)

 

TapImmune Inc., a Nevada corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, [---------], the registered holder hereof or its permitted assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, upon exercise of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times on or after the Issuance Date but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), [---------] (subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (as defined below) (the “Warrant Shares”).  Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 16.  This Warrant is one of the Warrants to Purchase Common Stock (the “SPA Warrants”) issued pursuant to that certain Securities Purchase Agreement, dated as of January 12, 2015, by and among the Company and the investor(s) thereunder (the “Buyer” or “Buyers” as applicable) referred to therein (the “Securities Purchase Agreement”).

1.           EXERCISE OF WARRANT.

 

(a)           Mechanics of Exercise.  Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section 1(f)), this Warrant may be exercised by the Holder on any day on or after the Issuance Date in whole or in part, by delivery (whether via facsimile or otherwise) of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant.  Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so exercised (in respect of such specific exercise, the “Aggregate Exercise Price”) in cash or via wire transfer of immediately available funds if the Holder did not notify the Company in such Exercise Notice that such exercise was made pursuant to a Cashless Exercise (as defined in Section 1(d)).  The Holder shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder.  Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this Warrant certificate and issuance of a new Warrant certificate evidencing the right to purchase the remaining number of Warrant Shares.  Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant certificate after delivery of the Warrant Shares in accordance with the terms hereof.  On or before the first (1st) Trading Day following the date on which the Company has received an Exercise Notice, the Company shall transmit by facsimile an acknowledgment of

 

  

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confirmation of receipt of such Exercise Notice, in the form attached hereto as Exhibit B to the Holder and the Company’s transfer agent (the “Transfer Agent”).  On or before the third (3rd ) Trading Day following the date on which the Company has received such Exercise Notice, the Company shall (X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program (which the Company shall cause the Transfer Agent to do at Holder’s request), upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit/ Withdrawal at Custodian system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the Holder or, at the Holder’s instruction pursuant to the Exercise Notice, the Holder’s agent or designee, in each case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice), for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise.  Upon delivery of an Exercise Notice, the Holder 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, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Shares (as the case may be).  If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 8(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised.  No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number.  The Company shall pay any and all taxes and fees which may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant.

 

(b)           Exercise Price.  For purposes of this Warrant, “Exercise Price” means $1.50 subject to adjustment as provided herein.

 

(c)           Company’s Failure to Timely Deliver Securities.  If the Company shall fail, for any reason or for no reason, to issue (or cause to be issued) to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of shares of Common Stock to which the Holder is entitled and register such shares of Common Stock on the Company’s share register or to credit the Holder’s balance account with DTC for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant (as the case may be), then, in addition to all other remedies available to the Holder, the Company shall pay in cash to the Holder on each Trading Day after such third (3rd) Trading Day that the issuance of such shares of Common Stock is not timely effected an amount equal to 1% of the product of (A) the aggregate number of shares of Common Stock not issued to the Holder on a timely basis and to which the Holder is entitled and (B) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the last possible date on which the Company could have issued such shares of Common Stock to the Holder

 

  

2

  

without violating Section 1(a).  In addition to the foregoing, if within three (3) Trading Days after the Company’s receipt of the applicable Exercise Notice, the Company shall fail to issue and deliver (or cause to be issued and delivered) a certificate to the Holder without restrictive legend and register such shares of Common Stock on the Company’s share register or to credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be), and if on or after such third (3rd ) Trading Day the Holder (or any other Person in respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder 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, issuable upon such exercise that the Holder so anticipated receiving from the Company, then, in addition to all other remedies available to the Holder, the Company shall within three (3) Business Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and reasonable out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s obligation to so issue and deliver such certificate or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such shares of Common Stock or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock multiplied by (B) ”B” as set out in the formula in Section 1(d).

 

(d)           Cashless Exercise. Notwithstanding anything contained herein to the contrary (other than Section 1(f) below), if at the time of exercise hereof the Warrant Shares to be received upon the cash exercise of this Warrant shall not be freely tradable by Holder without restriction of any kind or nature, then the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (a “Cashless Exercise”):

 

Net Number = (A x B) - (A x C)

               B

                     

For purposes of the foregoing formula:

 

A= the total number of shares with respect to which this Warrant is then being exercised.

 

  

3

  

B= as applicable: (i) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the date of the applicable Exercise Notice if such Exercise Notice is (1) both executed and delivered pursuant to Section 1(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 1(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) the Bid Price of the Common Stock as of the time of the Holder’s execution of the applicable Exercise Notice if such Exercise Notice is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter pursuant to Section 1(a) hereof or (iii) the Closing Sale Price of the Common Stock on the date of the applicable Exercise Notice if the date of such Exercise Notice is a Trading Day and such Exercise Notice is both executed and delivered pursuant to Section 1(a) hereof after the close of “regular trading hours” on such Trading Day.

 

C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise

 

(e)           Disputes.  In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the terms hereof (including, without limitation, the Net Number), the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed, provided that following such issuance to Holder such dispute shall be resolved in accordance with Section 13.

 

(f)           Limitations on Exercises.  Notwithstanding anything to the contrary contained in this Warrant, this Warrant shall not be exercisable by the Holder hereof to the extent (but only to the extent) that the Holder or any of its affiliates would beneficially own in excess of 4.9% (the “Maximum Percentage”) of the Common Stock after giving effect to such exercise.  To the extent the above limitation applies, the determination of whether this Warrant shall be exercisable (vis-à-vis other convertible, exercisable or exchangeable securities owned by the Holder or any of its affiliates) and of which such securities shall be exercisable (as among all such securities owned by the Holder) shall, subject to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion, exercise or exchange (as the case may be).  No prior inability to exercise this Warrant pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability.  For the purposes of this paragraph, beneficial ownership and all determinations and calculations (including, without limitation, with respect to calculations of percentage ownership) shall be determined in accordance with Section 13(d) of the 1934 Act (as defined in the Securities Purchase Agreement) and the rules and regulations promulgated thereunder.  The provisions of this paragraph shall be implemented in a manner otherwise than in strict conformity with the terms of this paragraph to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Maximum Percentage beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such Maximum Percentage limitation.  The limitations contained in this paragraph shall apply to a successor Holder of this Warrant.  The holders of Common Stock shall be third party beneficiaries of this paragraph and the Company may not waive this paragraph without the consent of holders of a majority of its

 

  

4

  

Common Stock.  For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding, including by virtue of any prior conversion or exercise of convertible or exercisable securities into Common Stock, including, without limitation, pursuant to this Warrant or securities issued pursuant to the Securities Purchase Agreement.   Upon delivery of a written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage will not be effective until the sixty-first (61st ) day after such notice is delivered to the Company and (ii) any such increase or decrease will apply only to the Holder sending such notice and not to any other Holder.  For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Warrant in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act.

 

(g)           Insufficient Authorized Shares.  The Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock as shall be necessary to satisfy the Company’s obligation to issue shares of Common Stock hereunder (without regard to any limitation otherwise contained herein with respect to the number of shares of Common Stock that may be acquirable upon exercise of this Warrant).  If, notwithstanding the foregoing, and not in limitation thereof, at any time while any of the SPA Warrants remain outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of the SPA Warrants at least a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of all of the SPA Warrants then outstanding (the “Required Reserve Amount”) (an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for all the SPA Warrants then outstanding.  Without limiting the generality of the foregoing sentence, to the extent required by law or the rules of the Eligible Market on which the Common Stock is traded or quoted, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its shareholders for the approval of an increase in the number of authorized shares of Common Stock.  In connection with such meeting, to the extent required by law or the rules of the Eligible Market on which the Common Stock is traded or quoted, the Company shall provide each shareholder with a proxy statement and shall use its reasonable efforts to solicit its shareholders’ approval of such increase in authorized shares of Common Stock.

 

2.           ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES.  The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

 

  

5

  

(a)           Stock Dividends and Splits.  If the Company, at any time on or after the date of the Securities Purchase Agreement, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case (a) the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event and (b) the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).  Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of shareholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.  If any event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

 

(b)           Adjustment Upon Issuance of Shares of Common Stock. Except in the event of an Excluded Issuance, if and whenever on or after the date of the Securities Purchase Agreement, the Company issues or sells, or in accordance with this Section 2 is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding any Excluded Securities (as defined in the Securities Purchase Agreement) issued or sold or deemed to have been issued or sold) for a consideration per share (the “New Issuance Price”) less than a price equal to the Exercise Price in effect immediately prior to such issue or sale or deemed issuance or sale (such Exercise Price then in effect is referred to as the “Applicable Price”) (the foregoing a “Dilutive Issuance”), then immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to an amount equal to the New Issuance Price. For all purposes of the foregoing (including, without limitation, determining the adjusted Exercise Price and consideration per share under this Section 2(b), the following shall be applicable:

 

(i)           Issuance of Options. If the Company in any manner grants or sells any Options and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price per share. For purposes of this Section 2(b)(i), the “lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option” shall be equal to (1) the sum of the lowest

 

  

6

  

amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the granting or sale of such Option, upon exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option minus (2) the sum of all amounts paid or payable to the holder of such Option (or any other Person) upon the granting or sale of such Option, upon exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option plus the value of any other consideration received or receivable by, or benefit conferred on, the holder of such Option (or any other Person). Except as contemplated below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock or of such Convertible Securities upon the exercise of such Options or upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities.

 

(ii)           Issuance of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share.  For the purposes of this Section 2(b)(ii), the “lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof” shall be equal to (1) the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to one share of Common Stock upon the issuance or sale of the Convertible Security and upon conversion, exercise or exchange of such Convertible Security minus (2) the sum of all amounts paid or payable to the holder of such Convertible Security (or any other Person) upon the issuance or sale of such Convertible Security plus the value of any other consideration received or receivable by, or benefit conferred on, the holder of such Convertible Security (or any other Person). Except as contemplated below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of this Warrant has been or is to be made pursuant to other provisions of this Section 2(b), except as contemplated below, no further adjustment of the Exercise Price shall be made by reason of such issue or sale.

 

(iii)           Change in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional consideration, if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases or decreases at any time, the Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise Price which would have been in effect at such time had such Options or Convertible Securities provided for such increased or decreased purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 2(b)(iii), if the terms of any Option or Convertible Security that was outstanding as of the date of issuance of this Warrant are increased or decreased in the manner described in the immediately preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 2(b) shall be made if such adjustment would result in an increase of the Exercise Price then in effect.

 

  

7

  

(iv)           Calculation of Consideration Received. If any Option or Convertible Security is issued in connection with the issuance or sale or deemed issuance or sale of any other securities of the Company, together comprising one integrated transaction, (x) such Option or Convertible Security (as applicable) will be deemed to have been issued for consideration equal to the Black Scholes Consideration Value thereof and (y) the other securities issued or sold or deemed to have been issued or sold in such integrated transaction shall be deemed to have been issued for consideration equal to the difference of (I) the aggregate consideration received by the Company minus (II) the Black Scholes Consideration Value of each such Option or Convertible Security (as applicable).  If any shares of Common Stock, Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount of consideration received by the Company therefor. If any shares of Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of such consideration, except where such consideration consists of publicly traded securities, in which case the amount of consideration received by the Company for such securities will be the arithmetic average of the VWAPs of such security for each of the five (5) Trading Days immediately preceding the date of receipt. If any shares of Common Stock, Options or Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable to such shares of Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or publicly traded securities will be determined jointly by the Company and the Holder. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such consideration will be determined within five (5) Trading Days after the tenth (10th) day following such Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Holder. The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the Company.

 

(v)           Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase (as the case may be).

 

  

8

  

(c)           Other Events. In the event that the Company (or any Subsidiary (as defined in the Securities Purchase Agreement)) shall take any action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company’s board of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 2(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then such dispute shall be settled pursuant to the terms of Section 13 of this Warrant.

 

(d)           Calculations.  All calculations under this Section 2 shall be made by rounding to the nearest 1/100th of cent and the nearest 1/100th of a share, as applicable.  The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

3.           RIGHTS UPON DISTRIBUTION OF ASSETS. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Maximum Percentage) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder’s right to participate in any such Distributions would result in the Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (or the beneficial ownership of any such shares of Common Stock as a result of such Distribution to such extent) and such Distribution to such extent shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Maximum Percentage).

 

  

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4.           PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)           Purchase Rights.  In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Maximum Percentage) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Maximum Percentage).

 

(b)           Fundamental Transactions.  The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor Entity assumes in writing all of the obligations of the Company under this Warrant and the other Transaction Documents (as defined in the Securities Purchase Agreement) in accordance with the provisions of this Section 4(b) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction) and (ii) the Successor Entity (including its Parent Entity) is a publicly traded corporation whose common stock is quoted on or listed for trading on an Eligible Market. Upon the consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of the applicable Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in lieu

 

  

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of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of publicly traded common stock (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder.

 

(c)           Black Scholes Value. Notwithstanding the foregoing and the provisions of Section 4(b) above, at the request of the Holder delivered at any time commencing on the earliest to occur of (x) the public disclosure of any Fundamental Transaction, (y) the consummation of any Fundamental Transaction and (z) the Holder first becoming aware of any Fundamental Transaction through the date that is ninety (90) days after the public disclosure of the consummation of such Fundamental Transaction by the Company pursuant to a Current Report on Form 8-K filed with the SEC, the Company or the Successor Entity (as the case may be) shall purchase this Warrant from the Holder on the date of such request by paying to the Holder cash in an amount equal to the Black Scholes Value.

 

(d)           Application. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants, options or other instruments or securities) were fully exercisable and without regard to any limitations on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the benefit of the Maximum Percentage, applied however with respect to shares of capital stock registered under the 1934 Act and thereafter receivable upon exercise of this Warrant (and any such subsequent warrants, options or other instruments or securities)).

 

  

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5.           NONCIRCUMVENTION.  The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation (as defined in the Securities Purchase Agreement), Bylaws (as defined in the Securities Purchase Agreement) or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, for the purpose of avoiding or seeking to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder.  Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant (or such other securities, cash, assets or other property then deliverable on exercise of this Warrant), and (iii) shall, so long as any of the SPA Warrants are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the SPA Warrants, the maximum number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the SPA Warrants then outstanding (without regard to any limitations on exercise).

 

6.           WARRANT HOLDER NOT DEEMED A SHAREHOLDER.  Except as otherwise specifically provided herein, the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as the Holder of this Warrant, any of the rights of a shareholder 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 the Warrant Shares which it 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 the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a shareholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company.  Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the shareholders of the Company generally, contemporaneously with the giving thereof to the shareholders; provided that the Company shall not be obligated to provide such information if it is filed with the SEC through EDGAR and available to the public through the EDGAR system.

 

7.           REISSUANCE OF WARRANTS.

 

(a)           Transfer of Warrant.  If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.  Prior to transferring this Warrant, the Holder shall inform the transferee of the total number of Warrant Shares then underlying this Warrant.

 

  

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(b)           Lost, Stolen or Mutilated Warrant.  Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

 

(c)           Exchangeable for Multiple Warrants.  This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

 

(d)           Issuance of New Warrants.  Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

 

8.           NOTICES.  Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance with Section 8(f) of the Securities Purchase Agreement.  The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor.  Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) as soon as practicable upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s).  If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock (other than a dividend payable solely in shares of Common Stock) or (ii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall deliver to each Holder a notice describing the material terms and conditions of such dividend, distribution or transaction.  Notwithstanding anything to the contrary in this Section 8, the failure to deliver any notice under this Section 8 or any defect therein shall not affect the validity of the corporate action required to be described in such notice.  Until the exercise of its, his or her Warrant or any portion of such Warrant, a Holder shall not have nor exercise any rights by virtue of ownership of a Warrant as a shareholder of the Company (including without limitation the right to notification of shareholder meetings or the right to receive any notice or other communication concerning the business and affairs of the Company other than as provided in this Section 8.

 

  

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9.           AMENDMENT AND WAIVER.  Except as otherwise provided herein, the provisions of this Warrant (other than Section 1(f)) 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. The Holder shall be entitled, at its option, to the benefit of any amendment of (i) any other similar warrant issued under the Securities Purchase Agreement or (ii) any other similar warrant. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

 

10.           SEVERABILITY.  If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties.  The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

11.           GOVERNING LAW.  This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York.  The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith 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 contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to the Holder or to enforce a judgment or other court ruling in favor of the Holder.  THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

12.           CONSTRUCTION; HEADINGS.  This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any Person as the drafter hereof.  The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant.  Terms used in this Warrant but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date (as defined in the Securities Purchase Agreement) in such other Transaction Documents unless otherwise consented to in writing by the Holder.

 

  

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13.           DISPUTE RESOLUTION.  In the case of a dispute as to the determination of the Exercise Price, the Closing Sale Price, the Bid Price or fair market value or the arithmetic calculation of the Warrant Shares (as the case may be), the Company or the Holder (as the case may be) may submit the disputed determinations or arithmetic calculations (as the case may be) via facsimile (i) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the Company or the Holder (as the case may be) or (ii) if no notice gave rise to such dispute, at any time after the Holder or the Company (as the case may be) learned of the circumstances giving rise to such dispute.  If the Holder and the Company are unable to agree upon such determination or calculation (as the case may be) of the Exercise Price, the Closing Sale Price, the Bid Price or fair market value or the number of Warrant Shares (as the case may be) within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business Days submit via facsimile (a) the disputed arithmetic calculation of the Warrant Shares, the disputed determination of the Exercise Price, the Closing Sale Price, the Bid Price or fair market value (as the case may be) to an independent, reputable investment bank of nationally recognized standing selected by the Holder and reasonably acceptable to the Company or (b) if acceptable to the Holder, the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant.  The Company shall cause at its expense the investment bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations (as the case may be).  Such investment bank’s or accountant’s determination or calculation (as the case may be) shall be binding upon all parties absent demonstrable error.  The party whose determination or calculation is furthest from that determined or calculation by the investment bank or accountant shall pay the costs of such determination or calculation.

 

14.           REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.  The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual or consequential damages for any failure by the Company to comply with the terms of this Warrant.  The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein.  Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof).  The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate.  The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required.  The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Warrant (including, without limitation, compliance with Section 2 hereof).  The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance or stamp tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

 

  

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15.           TRANSFER.  This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company.

 

16.           CERTAIN DEFINITIONS.  For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)           “Bid Price” means, for any security as of the particular time of determination, the bid price for such security on the Principal Market as reported by Bloomberg as of such time of determination, or, if the Principal Market is not the principal securities exchange or trading market for such security, the bid price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg as of such time of determination, or if the foregoing does not apply, the bid price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg as of such time of determination, or, if no bid price is reported for such security by Bloomberg as of such time of determination, the average of the bid prices of all of the market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC) (the “Pink Sheets”) as of such time of determination.  If the Bid Price cannot be calculated for a security as of the particular time of determination on any of the foregoing bases, the Bid Price of such security as of such time of determination shall be the fair market value as mutually determined by the Company and the Holder.  If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 13.  All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

(b)           “Black Scholes Consideration Value” means the value of the applicable Option or Convertible Security (as the case may be) as of the date of issuance thereof calculated using the Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg utilizing (i) an underlying price per share equal to the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the public announcement of the execution of definitive documents with respect to the issuance of such Option or Convertible Security (as the case may be), (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of such Option or Convertible Security (as the case may be) as of the date of issuance of such Option or Convertible Security (as the case may be) and (iii) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the date of issuance of such Option or Convertible Security (as the case may be).

 

  

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(c)           “Black Scholes Value” means the value of the unexercised portion of this Warrant remaining on the date of the Holder’s request pursuant to Section 4(c), which value is calculated using the Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg utilizing (i) an underlying price per share equal to the greater of (1) the highest Closing Sale Price of the Common Stock during the period beginning on the Trading Day immediately preceding the earliest to occur of (x) the public disclosure of the applicable Fundamental Transaction, (y) the consummation of the applicable Fundamental Transaction and (z) the date on which the Holder first became aware of the applicable Fundamental Transaction and ending on the Trading Day of the Holder’s request pursuant to Section 4(a) and (2) the sum of the price per share being offered in cash in the applicable Fundamental Transaction (if any) plus the value of the non-cash consideration being offered in the applicable Fundamental Transaction (if any), (ii) a strike price equal to the Exercise Price in effect on the date of the Holder’s request pursuant to Section 4(c), (iii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the greater of (1) the remaining term of this Warrant as of the date of the Holder’s request pursuant to Section 4(c) and (2) the remaining term of this Warrant as of the date of consummation of the applicable Fundamental Transaction or as of the date of the Holder’s request pursuant to Section 4(c) if such request is prior to the date of the consummation of the applicable Fundamental Transaction and (iv) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the earliest to occur of (x) the public disclosure of the applicable Fundamental Transaction, (y) the consummation of the applicable Fundamental Transaction and (z) the date on which the Holder first became aware of the applicable Fundamental Transaction.

 

(d)           “Bloomberg” means Bloomberg, L.P.

 

(e)           “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

 

(f)            “Closing Sale Price” means, for any security as of any date, the last closing trade price, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing trade price (as the case may be) then the last trade price of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last trade price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of all of the market makers for such security as reported in the Pink Sheets.  If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price (as the case may be) of such security on such date shall be the fair market value as mutually determined by the Company and the Holder.  If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 13.  All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

  

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(g)           “Common Stock” means (i) the Company’s shares of common stock, $0.001 par value per share, and (ii) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(h)           “Convertible Securities” means any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

 

(i)           “Eligible Market” means The New York Stock Exchange, the NYSE Amex, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or the Principal Market.

 

(j)           “Excluded Issuance” means (i) any issuance of Common Stock or Convertible Securities prior to March 1, 2015 to Dart Asset Management (or any affiliate thereof) on terms that are materially similar to (or less advantageous to Dart Asset Management (or an affiliate thereof) than) those under which the Buyer purchased the Securities, (ii) any issuance of Common Stock or Convertible Securities pursuant to the Company’s Omnibus Stock Option Plan and (iii) any issuance of Common Stock or Convertible Securities for assets, the conversion of existing debt or any other consideration other than cash or a cash equivalent.

 

(k)           “Expiration Date” means the date that is the fifth (5th) anniversary of the Issuance Date or, if such date falls on a day other than a Business Day or on which trading does not take place on the Principal Market (a “Holiday”), the next date that is not a Holiday.

 

(l)           “Fundamental Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related transactions, (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation) any other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other Person, or (3) allow any other Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (5) (I) reorganize, recapitalize or reclassify the Common Stock, (II) effect or consummate a stock combination, reverse stock split or other similar transaction involving the Common Stock or (III) make any public announcement or disclosure with respect to any stock combination, reverse stock split or other similar transaction involving the Common Stock (including, without limitation, any public announcement or disclosure of (x) any potential, possible or actual stock combination, reverse stock split or other similar transaction involving the Common Stock or (y) board or shareholder approval thereof, or the intention of the Company to seek board or shareholder approval of any stock combination, reverse stock split or other similar transaction involving the Common Stock), or (ii) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

 

  

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(m)           “Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(n)           “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

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

 

(p)           “Principal Market” means the Over-the-Counter Bulletin Board of the Financial Industry Regulatory Authority, Inc.

 

(q)           “Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

 

(r)           “Trading Day” means, as applicable, (x) with respect to all price determinations relating to the Common Stock, any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) or (y) with respect to all determinations other than price determinations relating to the Common Stock, any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

(s)           “Voting Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency).

 

  

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(t)           “VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its “Volume at Price” function or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 13. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

[signature page follows]

 

 

  

20

  

IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

TAPIMMUNE INC.

 

By:           

Name:

Title:

 

 

  

21

  

EXHIBIT A

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

TAPIMMUNE INC.

 

The undersigned holder hereby exercises the right to purchase                                                                                                                     of the shares of Common Stock (“Warrant Shares”) of TapImmune Inc., a Nevada corporation (the “Company”), evidenced by Series A Warrant No.  (the “Warrant”).  Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.           Form of Exercise Price.  The Holder intends that payment of the Exercise Price shall be made as:

 

	
  _____________________         

	
a “Cash Exercise” with respect to ______________ Warrant Shares; and/or

 

	
  _____________________         

	
a “Cashless Exercise” with respect to ___________ Warrant Shares.

 

In the event that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder at[a.m.][p.m.] on the date set forth below and (ii) if applicable, the Bid Price as of such time of execution of this Exercise Notice was $.

 

2.           Payment of Exercise Price.  In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares, the Holder shall pay the Aggregate Exercise Price in the sum of $ to the Company in accordance with the terms of the Warrant.

 

3.           Delivery of Warrant Shares and Net Number of shares of Common Stock.  The Company shall deliver to Holder, or its designee or agent as specified below, shares of Common Stock in respect of the exercise contemplated hereby.  Delivery shall be made to Holder, or for its benefit, to the following address:

 

__________________

 

__________________

 

__________________

 

Date:  ___________

 

  

22

  

Name of Registered Holder

 

By:      _______________________                                              

Name:

Title:

 

Account

Number:          ___________________________________________                                                                                                                          

(if shares are delivered by electronic book entry transfer)

 

Transaction Code

Number:         ____________________________________________                                                                                                                               

(if shares are delivered by electronic book entry transfer)

 

  

23

  

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges this Exercise Notice and hereby directs ______________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated _________, 20__, from the Company and acknowledged and agreed to by _______________.

 

TAPIMMUNE INC.

                                                                By:____________________________________

Name:

Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 24

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