Document:

Exhibit 10.7

 

FLEX
LEASING POWER & SERVICE LLC

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement (this “Agreement”) is entered by and between Flex Leasing Power & Service LLC, a Delaware limited
liability company (the “Company”), and Doug Baltzer (“Executive”).

 

1.            Duties
and Scope of Employment.

 

(a)            Title
and Duties. As of the Effective Date (as defined in Section 3 below), Executive will be employed and serve as President
of the Company. During the Employment Term, and without any additional compensation in connection with such service, Executive shall
also serve as an officer of such affiliates of the Company as the Board may determine from time to time. During the Employment Term (as
defined in Section 3 below), Executive will have authority and render such business and professional services in the performance
of Executive’s duties as are customarily associated with Executive’s position(s) provided above, and Executive agrees
to perform such other duties and functions as may from time to time be reasonably determined by the Board. The “Board”
means (i) the board of directors of FlexEnergy Green Solutions, Inc. (“FGS”) if the Company is a direct
or indirect subsidiary of FGS; or (ii) the board of directors or analogous governing body of the Company if the Company is not a
direct or indirect subsidiary of FGS.

 

(b)            Obligations.
During the Employment Term, and excluding any periods of vacation, sick leave, or other leave to which the Executive is entitled, Executive
will perform Executive’s duties faithfully and to the best of Executive’s ability and will devote such time as reasonably
necessary to fulfill Executive’s responsibilities in the position. Executive and the Company agree that the Company represents
Executive’s principal business focus. Except as may otherwise be approved by the Company from time to time, Executive’s services
shall be primarily performed at the Company’s office at Greenwood Village, Colorado, or other locations less than 50 miles from
such location determined by the Company. Executive agrees to travel as reasonably necessary to fulfill Executive’s responsibilities
in the position. During the Employment Term, Executive agrees that Executive shall maintain loyalty to the Company, shall take no action
that would be injurious to the Company interests, and shall comply with all rules, regulations and policies of the Company. During the
Employment Term, it shall not be a violation of this Agreement for Executive to (i) serve on up to two (2) civic or charitable
boards or committees (and other board and committees from time to time as approved by the Board), (ii) deliver lectures, fulfill
speaking engagements or teach at educational institutions, or (iii) manage personal investments and business endeavors, so long
as such activities do not significantly interfere with the performance of the Executive’s responsibilities as an employee of the
Company in accordance with this Agreement.

 

(c)            Executive’s
Employability. Executive represents and warrants that: (i) Executive has the right to execute, deliver and perform Executive’s
duties under this Agreement, and (ii) Executive is not a party to any other agreements, arrangements or obligations (e.g., confidentiality
agreements, noncompetition agreements), whether written, oral or implied, which include terms that would limit Executive’s ability
to execute, deliver and perform Executive’s duties under this Agreement or which are otherwise inconsistent with this Agreement.
This warranty will remain in full force and effect throughout the Employment Term (as defined in Section 3 below).

 

2.            Compensation.

 

(a)            Base
Salary. During the Employment Term, the Company will pay Executive as compensation for Executive’s services a base salary at
rate of $24,625.00 per month (the “Base Salary”). The Base Salary will be paid in regular installments in accordance
with the Company’s normal payroll practices, subject to applicable deductions and withholdings. The first and last payment will
be adjusted, if necessary, to reflect a commencement or termination date other than the first or last working day of a pay period.

 

     

     

    

 

(b)            Annual
Bonus. Executive shall be eligible for an annual bonus (collectively the “Annual Bonus”) during the Employment
Term in a target amount equal to 50% of Base Salary, to be earned based on such targets, criteria, terms and conditions as be determined
by the Board (or a duly authorized committee thereof) in its sole discretion, subject to the terms of this Agreement. Any such Annual
Bonus (i) will only be determined and awarded after the completion of the audited financial statements for FGS with respect to the
applicable annual period for which the Annual Bonus is to be earned; (ii) will only be awarded and paid if both (A) Executive
remains employed with the Company during the full annual period for which the Annual Bonus is to be earned and (B) (I) Executive
remains employed with the Company through the award and payment of the Annual Bonus or (II) subject to Section 4(b),
Executive’s employment with the Company is terminated by the Company without Cause between the last day of the annual period for
which the Annual Bonus is to be earned and the date on which the Annual Bonus would otherwise be paid; and (iii) will be paid as
soon as practicable, but not later than 45 days, after the completion and public release of audited financial statements for FGS with
respect to the applicable annual period for which the Annual Bonus is earned.

 

(c)            Equity
Incentives.

 

(i)            Incentive
Award Plan Eligibility. Executive shall be eligible to participate in, and receive one or more grants under, the FlexEnergy Green
Solutions, Inc. 2021 Incentive Award Plan (the “Incentive Plan”). Any such awards and the terms and conditions
thereof shall be subject to the discretion of the board of directors of FGS and set forth in award documentation as such board of directors
deems reasonably necessary in connection with any such award.

 

(ii)            Issuance
of Shares One Year After IPO. The Company agrees to cause the issuance to Executive of 12,000 shares of common stock of FGS under
the Incentive Plan (pursuant to then-current forms of award agreement under the Incentive Plan) after the one (1) year anniversary
of the IPO (as defined in Section 3 below) if (A) Executive remains employed by the Company throughout the one (1)-year
period immediately following the IPO, (B) Executive is terminated by the Company without Cause (defined below) during one (1)-year
period immediately following the IPO, or (C) Executive terminates this Agreement for Good Reason.  For the avoidance of doubt,
no shares will be issued to Executive if Executive fails to remain employed by the Company during the one (1)-year period immediately
following the IPO under any other circumstances (ex. resignation by Executive, termination by the Company for Cause).

 

(iii)            Initial
Stock Option Award. Without limiting Sections 2(c)(i) or 2(c)(ii) above, the Company will recommend
to the FGS board of directors that Executive receive a stock option award to purchase shares of common stock of FGS, (A) at
an exercise price determined by the FGS board of directors in accordance with the requirements of the Incentive Plan, (B) 20,000
shares of common stock of FGS initially vested and exercisable upon grant, and 80,000 shares of common stock of FGS vesting and becoming
exercisable over a four (4)-year period with 25% vesting on each anniversary of the IPO (defined below) subject to Executive’s
continuous service through the applicable anniversary, (C) not subject to any adjustment pursuant to Section 12 of the Incentive
Plan, without Executive’s written consent, that would reduce the number of shares subject to the stock option or increase the exercise
price applicable to the stock option (except to provide equitable adjustment with respect to a reverse stock split or other event specified
in Section 12(i) of the Incentive Plan having a substantively similar effect on the outstanding capital of FGS), and (D) otherwise
subject to the general terms and conditions of the Incentive Plan. Notwithstanding the foregoing, it is hereby acknowledged and agreed
that no stock option award to Executive has been approved by the FGS board of directors, and Executive has no right to receive (and neither
the Company nor FGS has any obligation to issue) any stock option award unless and until the FGS board of directors has actually approved
any such stock option award and the full terms thereof (including the applicable exercise price).

 

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(d)            Expense
Reimbursement. During the Employment Term, the Executive shall be entitled to reimbursement of reasonable out-of-pocket business
expenses incurred by Executive in furtherance of Company’s business in accordance with Company’s policies with respect thereto
as in effect from time to time (the “Expense Reimbursement”). All reimbursements provided under this Agreement shall
be made or provided in accordance with the requirements of Section 409A including, where applicable, the requirement that (i) any
reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement);
(ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement
in any other calendar year; (iii) the reimbursement of an eligible expense shall be made no later than the last day of the calendar
year following the year in which the expense is incurred; and (iv) the right to reimbursement or in kind benefits is not subject
to liquidation or exchange for another benefit.

 

(e)            Vacation.
Executive shall be entitled to a minimum of three (3) weeks paid vacation per year, in accordance with the Company’s standard
vacation policy.

 

(f)            Employee
Benefits. During the Employment Term, Executive will be considered a full-time employee and be entitled to participate in the employee
benefit plans and programs currently and hereafter maintained by the Company of general applicability to other Employees of Executive’s
classification at the Company (the “Benefits”). The Company reserves the right to cancel or change the Benefit plans
and programs it offers to its employees at any time. In the event of any dispute between this Agreement and the terms of any Benefit
summary plan description, the terms of the summary plan description shall control.

 

3.            Effective
Date; Term of Employment.

 

(a)            Employment
Term; Effective Date. The “Employment Term” under this Agreement will commence on the Effective Date and will
continue until the Executive’s employment terminated by either the Company or Executive as provided in Section 3(b) of
this Agreement. This Agreement shall only become a legally effective agreement binding on Executive and the Company on the closing date
(the “Effective Date”) of an initial public offering of the common stock of FGS pursuant to a registration statement
filed under the Securities Act of 1933, as amended (an “IPO”). If an IPO does not close on or before November 10,
2021, then this Agreement shall thereafter be void and no legal force or effect.

 

(b)            Termination.
Notwithstanding anything else contained in this Agreement, Executive’s employment hereunder shall terminate upon the earliest to
occur of the following:

 

(i)            Death.
Immediately upon Executive’s death.

 

(ii)            Termination
by Executive.

 

(1)            Generally.
If terminated by Executive without Good Reason, upon written notice by Executive to the Board that Executive is terminating employment
(a “Resignation Notice”), which termination shall be effective 60 days after the date of such notice, or such earlier
date as specified in writing by the Company in its sole discretion during such 60-day period; or

 

(2)            For
Good Reason. If terminated by Executive for Good Reason, upon written notice by Executive to Company that Executive is terminating
Executive’s employment for Good Reason and that sets forth the factual basis supporting the Good Reason, which termination shall
be effective 30 days after the date of such notice, or such earlier date as specified in writing by the Company in its sole discretion
during such 30-day period. For the avoidance of doubt, such termination shall not constitute a termination for Good Reason if Company
cures the conditions identified in Executive’s notice as provided in Section 3(d)(iii).

 

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(iii)            Termination
by the Company.

 

(1)            For
Cause. If terminated by the Company for Cause (defined below), upon written notice by the Company to Executive that Executive’s
employment is being terminated for Cause, which termination shall be effective on the date of such notice or such later date as specified
in writing by the Company;

 

(2)            Without
Cause or Disability. If terminated by the Company for reasons other than for Cause or Disability, upon written notice by Company
to Executive that Executive’s employment is being terminated, which termination shall be effective immediately after the date of
such notice or such later date as specified in writing by the Company; or

 

(3)            For
Disability. If terminated by the Company because of Executive’s Disability (defined below), upon written notice by the Company
to Executive that Executive’s employment is being terminated as a result of Executive’s Disability, which termination shall
be effective 30 days after the date of such notice or such later date as specified in writing by the Company, unless within such period
Executive becomes capable of rendering services of the character contemplated hereby (and a physician chosen by the Company so certifies
in writing) and Executive in fact resumes such services.

 

(c)            Deemed
Termination for Cause. Notwithstanding anything in this Agreement to the contrary, if (i) the Company at any time determines
that Cause existed at the time of Executive’s termination or written notice thereof, (ii) Executive has breached or breaches
the terms of Section 5, then upon written notice by the Company to Executive (i) the Executive’s termination shall be
deemed be (or have been) terminated by the Company for Cause pursuant to Section 3(b)(iii)(1) (including for purposes
of Section 4 and Section 6(g)(ii)(1)), (ii) the Company may immediately cease payments of any Basic Severance
Payments and/or any Extended Severance Payments that may otherwise be due to Executive, and (iii) the Company may recover from Executive
any Basic Severance Payments and/or any Extended Severance Payments that may have already been paid to Executive. The cessation and recovery
of such any payments shall be in addition to, and not as an alternative to, any other remedies at law or in equity available to the Company
with respect to the matters constituting Cause, including, without limitation, the right to specific performance and/or injunctive or
other relief.

 

(d)            Certain
Definitions.

 

(i)            Definition
of Cause. For purposes of this Agreement, “Cause” means any of the following: (A) conviction of, or the entry
of a plea of guilty or no contest to, a felony, a crime of moral turpitude, or any other crime that causes the Company public disgrace
or disrepute, or which materially and adversely affects the Company’s operations or financial performance or the relationship the
Company has with its customers; (B) gross negligence or willful misconduct with respect to the Company, including, without limitation
fraud, embezzlement, theft or proven dishonesty in the course of Executive’s employment or other service; (C) alcohol abuse
or use of either illegal drugs or controlled drugs (other than in accordance with a physician’s prescription); (D) refusal
to perform any lawful, material obligation or fulfill any duty (other than any duty or obligation of the type described in clause (F) below)
to the Company (other than due to a disability, as determined by the Committee), which refusal, if curable, is not cured within 15 days
after delivery of written notice thereof (and for the avoidance of doubt, the relevant refused obligation or duty will be specifically
identified in such written notice); (E) material breach of any agreement with or duty owed to the Company, which breach, if curable,
is not cured within 15 days after the delivery of written notice thereof (and for the avoidance of doubt, if applicable, the relevant
breached duty will be specifically identified in such written notice); (F) any breach of any obligation or duty to the Company (whether
arising by statute, common law or agreement) relating to confidentiality, non-competition, non-solicitation, trade secrets, and/or proprietary
rights; (G) material violation of the Company’s written policies or codes of conduct, including those related to discrimination,
harassment, performance of illegal or unethical practices, and ethical misconduct; or (H) in the case of a director, repeated failure
to participate in Board meetings (including meetings of any Board committee of which the director is a member) on a regular basis despite
having received proper notice of meetings in advance.

 

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(ii)            Definition
of Disability. For purposes of this Agreement, “Disability” means Executive’s inability to perform one or
more of the essential functions of Executive’s job due to Executive’s physical or mental impairment, with or without reasonable
accommodation as required by law, for any period aggregating more than 120 days in any 365 consecutive day period; provided however,
that (A) if the Company determines that Executive has become Disabled, the Company shall notify Executive of its determination;
(B) Executive may then request a reasonable accommodation (as that term is defined under the Americans with Disabilities Act) from
the Company to assist in his/her return to work; (C) the Company will determine whether Executive’s request can be reasonably
accommodated without undue hardship no later than 30 days after Executive requests an accommodation (with additional time being provided
in the event of Executive or Executive’s medical provider delaying in providing information that is necessary to the Company’s
determination); and (D) in the event Executive’s request cannot be reasonably accommodated (and/or presents an undue hardship),
the Company may, by notice given in the manner provided in this Agreement, terminate Executive’s employment hereunder.

 

(iii)            Definition
of Good Reason. For purposes of this Agreement, “Good Reason” means any of the following within the prior 90 days
without Executive’s approval: (A) any material diminution of Executive’s authority, duties or responsibilities with
or to the Company, other than (i) a paid leave of absence at the direction of and approved by the Board or (ii) an unpaid administrative
leave imposed for the purposes of investigating or addressing misconduct by Executive; (B) the Board assigns Executive duties or
responsibilities that are materially inconsistent with Executive’s position; (C) any material breach of this Agreement by
the Company, including without limitation a reduction in Executive’s Base Salary below the amount specified in Section 2(a) without
Executive’s consent; or (D) a change in the geographic location at which Executive must primarily perform services to a location
more than 50 miles from Greenwood Village, Colorado without Executive’s approval. Executive must give the Company written notice
of Executive’s intention to terminate employment for Good Reason, which notice must state the grounds on which the proposed termination
for Good Reason is based. Executive must provide such written notice of the occurrence of these grounds no later than 90 days after their
initial occurrence. The Company may remedy these condition(s) within 15 days of receiving notice from Executive and no “Good
Reason” will exist if the Company remedies such condition(s) during such 15-day period.

 

(iv)            Definition
of Change in Control Period. For purposes of this Agreement, a “Change in Control Period ” means the one (1)-year
period commencing six (6)-months prior to a Change in Control (as defined in the Incentive Plan).

 

(e)            Transition
Assistance. For a period of 30 days following the effective date of Executive’s resignation, Executive shall make himself or
herself available to the Company and/or its agents (i) for the purpose of facilitating an efficient transition of Executive’s
job related responsibilities and duties to other designated individuals, and (ii) to respond to questions from the Company and/or
its agents regarding information and/or activities in which Executive was engaged while employed by the Company; provided that the foregoing
time period is based on Executive’s reasonable efforts to cooperate, Executive will not be entitled to additional compensation
for such availability and cooperation; and further provided that such assistance shall be reasonable and not substantially interfere
or conflict with Executive’s responsibilities to any new employer.

 

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4.            Payments
upon Termination.

 

(a)            Generally;
Accrued Obligations. If Executive’s employment is terminated for any reason, then the Company shall pay Executive the Accrued
Obligations promptly following the effective date of such termination. “Accrued Obligations” means (A) the portion
of Executive’s Base Salary that has accrued prior to any termination of Executive’s employment with Company and has not yet
been paid, any bonus that has been awarded to Executive as of the date of termination of Executive’s employment but has not yet
been paid to Executive, (B) and the amount of any unreimbursed Expense Reimbursement. Executive’s entitlement to any other
compensation or benefit under any plan of Company shall be governed by and determined in accordance with the terms of such plans, except
as otherwise specified in this Agreement.

 

(b)            Termination
by the Company without Cause or Termination for Good Reason. If the Company terminates Executive’s employment without Cause
or the Executive terminates Executive’s employment for Good Reason, then, in addition to the Accrued Obligations, and subject to
(A) the Executive signing a separation and release agreement in the form attached as Exhibit A, and as such form may
be updated by the Company from time to time at any time to conform with changes in applicable laws (a “General Release”)
and (B) the General Release becoming effective and irrevocable, all within 60 days after the date of termination (or such shorter
period as set forth in the General Release), the Company shall pay Executive:

 

(i)            the
Basic Severance Payments, or

 

(ii)            if
the Board, in its sole discretion, elects (by written notice to Executive within 10 days following the termination of Executive’s
employment) that the Company will pay Extended Severance Payments to Executive instead of the Basic Severance Payments pursuant to Section 4(b)(i),
the Extended Severance Payments (instead of the Basic Severance Payments); and

 

if applicable pursuant to
Section 2(b), an Annual Bonus with respect to the preceding annual period.

 

(c)            Terminations
without Cause during a Change in Control Period. If the Company terminates Executive’s employment without Cause during a Change
in Control Period, then, in addition to the Accrued Obligations, and subject to (i) the Executive signing a General Release and
(ii) the General Release becoming effective and irrevocable, all within 60 days after the date of termination (or such shorter period
as set forth in the General Release), the Company shall pay Executive the Extended Severance Payments.

 

(d)            COBRA
Premiums.

 

(i)            Subject
to Section 4(d)(ii), if (A) Executive is entitled to Basic Severance Payments or Extended Severance Payments (including,
without limitation, Executive’s timely execution and delivery of a General Release that has become effective and irrevocable),
and (B) Executive is eligible for and timely and properly elects continuation health care coverage pursuant to the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”), then the Company will pay or promptly reimburse the COBRA premium
amounts required for the continued coverage of Executive and Executive’s dependents (if any) under the Company’s group health
care plans at the same levels that would have applied if Executive’s employment had not terminated (if possible) until the end
of the Basic Severance Term or Extended Severance Term, as applicable (or until such earlier time as Executive ceases to be eligible
for COBRA coverage, if earlier) (the “COBRA Premiums”). Notwithstanding the foregoing, if the Company determines,
in its sole discretion, that it cannot pay the COBRA Premium without a substantial risk of violating applicable law (including, without
limitation, Section 2716 of the Public Health Service Act), the Company instead shall pay Executive a monthly cash payment equal
to the applicable COBRA Premium for that month.

 

(ii)            If,
however, health care insurance benefits are available to Executive from a new employer, the Company shall have no further obligation
relating to payment of additional COBRA Premiums. Executive agrees to promptly inform the Company if and when health care insurance benefits
are available from a new employer, and to reimburse the Company for any amounts paid with respect to COBRA Premiums to the extent paid
after health care insurance benefits are available to Executive from a new employer.

 

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(e)            Certain
Definitions.

 

(i)            Basic
Severance Payments; Basic Severance Term. For purposes of this Agreement, “Basic Severance Payments” means, to
the extent applicable, the monthly cash severance at the Base Salary rate, less standard withholdings and deductions, to be paid during
the Basic Severance Term. For purposes of this Agreement, “Basic Severance Term” means the six (6)-month period immediately
following the termination date of Executive’s employment.

 

(ii)            Extended
Severance Payments; Extended Severance Term. For purposes of this Agreement, “Extended Severance Payments” means,
to the extent applicable, the monthly cash severance at the Base Salary rate, less standard withholdings and deductions, to be paid during
the applicable Extended Severance Term. For purposes of this Agreement, “Extended Severance Term” means the one (1)-year
period immediately following the termination date of Executive’s employment.

 

(f)            Execution
of General Release. For the avoidance of doubt, the Company shall not be obligated to pay Executive any severance payments unless
a General Release has been timely executed and delivered by Executive and such General Release has become effective and irrevocable.

 

(g)            Limited
Rights to Severance Payments. For clarity, (i) entitlement to severance payments of any kind pursuant to this Agreement
shall only be possible if (A) the Company terminates Executive’s employment without Cause, or (B) Executive terminates
this Agreement for Good Reason; and (ii) no severance payment obligations shall arise out of (W) a termination of this Agreement
by the Company with Cause, (X) a termination of this Agreement by the Executive without Good Reason, or (Y) a termination of
this Agreement due to Executive’s death or Disability.

 

(h)            No
Continued Vesting. For the avoidance of doubt, vesting of any grants under the Incentive Plan or any other stock, stock option or
other incentive awards shall cease upon the date of any termination of Executive’s employment, and shall not continue to vest for
the remainder of any Noncompetition Period, Non-Solicitation Period or during any applicable Basic Severance Term or Extended Severance
Term.

 

(i)            Execution
of General Release. In accordance with Section 4(b), Section 4(c) and Section 4(d),
to receive the payments set forth in those Sections, Executive’s or Executive’s estate’s, if applicable, General Release
must be executed, effective and irrevocable before the expiration of 60 days after the date of termination. The payments specified in
these Sections will begin as soon as practicable (not to exceed 30 days) after the General Release is executed, effective and irrevocable,
but if the 60-day period could span two (2) tax years, the payments must be made in the later year. For example, if the Company
terminates Executive’s employment without Cause on December 15, Executive has 60 days—until February 13 —for
a General Release to be sign and become effective and irrevocable. In this case, payments due in accordance with Section 4(b),
Section 4(c) or Section 4(d) may not begin until the following year, even if the release was signed,
effective and irrevocable in December. If Executive’s or Executive’s estate’s, if applicable, General Release is not
executed, effective and irrevocable before the end of the 60-day-period, then the Executive and Executive’s estate forfeit, on
behalf of Executive and all who might claim through Executive, the payments that would otherwise be due under the applicable Section of
this Agreement.

 

5.            Confidentiality
and Invention Assignment Agreement. Executive has executed, and as applicable shall execute, the Company’s Confidentiality
and Invention Assignment Agreement, the current form of is attached as Exhibit B, and as updated from time to time (“CIIA”),
the provisions of which are hereby incorporated by reference and shall govern the Executive’s obligations and responsibilities
with regard to the Company Confidential Information (as that term is defined in the CIIA), the assignment of intellectual property, and
other matters. Executive agrees to comply with the terms of the CIIA. To the extent that any provision of the CIIA conflicts with any
provision in this Agreement, the provisions requiring Executive to comply with the higher standard shall govern.

 

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6.            Restrictive
Covenants.

 

(a)            Acknowledgement.
Executive agrees that, during the Employment Term, Executive (i) has a duty of loyalty to the Company, and (ii) shall not engage
in or undertake any action that conflicts with the undivided loyalty owed by Executive to the Company. Executive represents and warrants
that Executive has no other agreements, relationships, or commitments to any other person or entity that conflict with the provisions
of this Agreement, Executive’s obligations to the Company under this Agreement, or Executive’s ability to perform Executive’s
duties to the Company. Executive acknowledges and agrees that: (A) Executive’s employment with the Company has brought Executive
into close contact with Confidential Information of the Company and its customers, vendors, suppliers, employees, and independent contractors;
and (B) the agreements and covenants contained in this Section 6 are essential, reasonable, and no broader than necessary
to protect the reasonable business interests and goodwill of the Company. Executive further acknowledges, represents, and agrees that
the terms of this Section 6 do not and will not pose an undue hardship on Executive, and that Executive will be able to maintain
gainful employment notwithstanding the terms of this Section 6. Executive further acknowledges, represents, and agrees that
he/she has received valuable consideration (including, but not limited to, a payment of five hundred dollars ($500.00) that is expressly
for the purposes of serving as consideration for this Section 6) that is sufficient to support the promises being made by
Executive herein. Accordingly, Executive covenants and agrees to the following restrictive covenants.

 

(b)            Non-Solicitation
of Company Employees and Contractors. Executive agrees that during the Non-Solicitation Period (defined below), Executive shall not
directly or indirectly (i) hire, employ, recruit, solicit, lure or entice away, or in any other manner persuade or attempt to persuade,
any employee of the Company to discontinue such employee’s employment with the Company or (ii) solicit or encourage any independent
contractor providing services to the Company to terminate or diminish its relationship with the Company; provided, that, the foregoing
shall not be breached by general advertisements not targeted at employees or independent contractors of the Company.

 

(c)            Non-Solicitation
of Company Customers. Executive agrees that, during the Non-Solicitation Period, Executive shall not directly or indirectly (i) solicit
or assist in the solicitation by any third party of any Covered Customer (defined below) for the purpose of providing services or products
that compete with, or are similar to, the service or product offerings of the Company, except when such solicitation is done on behalf
of the Company, or (ii) discourage any Covered Customer from obtaining of services or products from the Company.

 

(d)            Non-Interference
with Vendors and Service Providers. Executive agrees that, during the Non-Solicitation Period, Executive shall not directly or indirectly
negatively influence or otherwise interfere with the Company’s relationships with vendors, suppliers, consultants, advisors, or
other service providers of the Company.

 

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(e)            Non-Competition
with the Company. Executive agrees that, during the Non-Competition Period, Executive shall not directly or indirectly, as a director,
manager, member, stockholder, partner, owner, employee, consultant, or agent of any business, or in any other capacity, other than on
behalf of the Company, organize, establish, own, operate, manage, control, engage in, participate in, invest in, permit Executive’s
name to be used by, act as a consultant or advisor to, render services for (alone or in association with any person, firm, corporation,
or other entity), or otherwise assist any person or entity that engages in or owns, invests in, operates, manages, or controls any venture
or enterprise in all or a part of the Restricted Area, that engages in (A) the manufacture, sale, lease, service or other manner
of offering of products or services that provide natural gas or hydrogen fueled distributed power generation with a single unit nameplate
capacity of up to 5MW (which excludes, for the avoidance of doubt, the manufacture, sale, lease, service or other manner of offering
of batteries, solar or wind powered energy generation equipment, or electrochemical (non-combustion) powered fuel cells), (B) the
manufacture, sale, lease, service or other manner of offering of heat exchanger/transfer products that can operate with gases at a temperature
above 1000° Fahrenheit or (C) any other new line of business, products or services offered or in development by FGS or any direct
or indirect subsidiary thereof during the prior six months of the Employment Term and in which Executive has had material involvement
(the “Restricted Business”). Notwithstanding the foregoing, nothing in this Agreement shall prevent Executive from
owning, directly or indirectly, for passive investment purposes not intended to circumvent this Agreement, less than 2% of the publicly
traded common equity securities of any company engaged in the Business (so long as Executive has no power to manage, operate, advise,
consult with, or control the competing enterprise and no power, alone or in conjunction with other affiliated parties, to select a director,
manager, general partner, or similar governing official of the competing enterprise other than in connection with the normal and customary
voting powers afforded Executive in connection with any permissible equity ownership).

 

(f)            Non-Disparagement.
Executive also agrees that, during the Non-Solicitation Period, Executive shall not directly or indirectly (i) disparage the Company,
its affiliates and their respective directors, officers, managers, managers, employees, or agents, or (ii) make any public statement
that could reasonably be expected to materially and adversely affects the reputation, brand, or business of the Company. This provision
does not apply to any statements made to governmental agencies for the purposes of asserting, or participating in any investigation by
such agencies concerning, Executive’s statutory rights. In the event of a termination of Executive’s employment (other than
a termination for Cause, including pursuant to Section 3(c)), subject to a General Release for Executive being signed, delivered,
effective and irrevocable, and further subject to Executive’s compliance and continuing compliance with Executive’s continuing
obligations of this Agreement (including this Section 6), then the Company shall cause the FGS board of directors and FGS
executive officers (while such individuals serve in such capacities) not to disparage Executive during the remainder of the Non-Solicitation
Period. This provision does not apply to any statements or other disclosures by the Company, the FGS board of directors or FGS executive
officers for the purpose of or necessary for compliance with federal or state securities laws, as well as rules of any securities
exchange on which any securities of the Company, including FGS, are then traded.

 

(g)            Certain
Defined Terms. The following terms, when used in this Section 6, will have the respective meanings set forth below:

 

(i)            “Restricted
Area” means the area within the United States, Canada and each other country and territory for which the Company has provided
products or services or in which the Company has otherwise done business during Executive’s employment with the Company; provided
however if any court of competent jurisdiction determines that the geographic scope of such Restricted Area is unreasonable, the “Restricted
Area” means with respect to the United States, Canada and each other country and territory for which the Company has provided products
or services or in which the Company has otherwise done business during Executive’s employment with the Company, the area within
each state or territory thereof for which the Company has provided products or services or in which the Company has otherwise done business
during Executive’s employment with the Company; provided however if any court of competent jurisdiction determines that the geographic
scope of such Restricted Area is unreasonable, the “Restricted Area” means with respect to the United States, Canada and
each other country and territory for which the Company has provided products or services or in which the Company has otherwise done business
during Executive’s employment with the Company, the area within each county or similar jurisdiction thereof for which the Company
has provided products or services or in which the Company has otherwise done business during Executive’s employment with the Company;
provided, however if any court of competent jurisdiction determines that the geographic scope of such Applicable Area is
unenforceable, the “Restricted Area” means within 50 miles of any location at which the Company has provided products or
services or in which the Company has otherwise done business during Executive’s employment with the Company.

 

    -9- 

     

    

 

(ii)            “Non-Competition
Period” means:

 

(1)            the
period during Executive’s employment with the Company and for the one (1)-year period after the end of Executive’s employment
with the Company if Executive’s employment (A) is terminated by the Company for Cause, (B) is terminated by the Company
without Cause during a Change in Control Period, or (C) is terminated by Executive other than for Good Reason.

 

(2)            the
period during Executive’s employment with the Company and for the six (6)-month period after the end of Executive’s employment
with the Company if Executive’s employment is terminated in any circumstances not provided in Section 6(g)(ii)(1)(A),
(B) or (C) above; provided, however, that the Board may, in its sole discretion, elect (by written
notice to Executive within 10 days following the termination of Executive’s employment) that the Company will pay Extended Severance
Payments to Executive (instead of any Basic Severance Payments), in which case the “Non-Competition Period” instead means
the period during the Executive’s employment with the Company and for the one (1)-year period after the end of Executive’s
employment with the Company.

 

(iii)            “Non-Solicitation
Period” means the period during Executive’s employment with the Company and for the one (1)-year period after the end
of Executive’s employment with the Company.

 

(iv)            “Company”
includes the Company and any of the Company’s affiliates.

 

(v)            “Covered
Customers” means persons; firms; associations; partnerships; corporations; limited liability companies; institutions, local,
state, federal and foreign entities or agencies; and other entities (A) to which the Company provided services or products before
or during Executive’s employment with the Company, (B) in relation to which Executive has provided any of the Services, or
(C) that the Company (or Executive in connection with the Services) has contacted or solicited with respect to the provision of
services or products before or during Executive’s employment with the Company.

 

(vi)            An
 “employee” or “independent contractor” of the Company is any person who is an employee or independent
contractor, respectively, of any of the Company on the date hereof or who becomes an employee or independent contractor of the Company
during Executive’s employment with the Company.

 

(h)            Remedies.
If Executive breaches any of the provisions contained in this Section 6, the Company shall have the remedies set forth below,
each of which shall be enforceable, and each of which is in addition to, and not in lieu of, any other rights and remedies available
to the Company at law or in equity. The provisions of this Section 6 are intended to be for the benefit of the Company and
its affiliates, and any of the Company or its affiliate may enforce such provisions. Executive recognizes and acknowledges that a breach
of the covenants contained in this Section 6 will cause irreparable harm to the goodwill and business of the Company, the
exact amount of which will be difficult to ascertain, and that the remedies at law for any such breach will be inadequate. Accordingly,
in the event of an alleged or threatened breach by Executive of any of the provisions of this Section 6, the Company may,
in addition to all other rights and remedies existing in its favor, seek specific performance and/or injunctive or other relief in order
to enforce or prevent any violations of the provisions hereof. Additionally, if Executive breaches Executive’s obligations under
Section 5 or Section 6, then the Company may immediately cease payments of any Basic Severance Payments and/or
any Extended Severance Payments and may recover any Basic Severance Payments and/or any Extended Severance Payments paid to Executive
after such breach. The cessation and recovery of such payments shall be in addition to, and not as an alternative to, any other remedies
at law or in equity available to the Company including, without limitation, the right to specific performance and/or injunctive or other
relief.

 

    -10- 

     

    

 

(i)            Severability.
In the event any provision of this Section 6 shall be determined by a court of competent jurisdiction to be unenforceable
by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive
in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the
maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable,
all as determined by such court in such action. If any provision of this Agreement, or any part thereof, is held to be invalid or unenforceable
because of the scope or duration of or the area covered by such provision, the parties agree that the court making such determination
shall reduce the scope, duration and/or area of such provision (and shall substitute appropriate provisions for any such invalid or unenforceable
provisions) in order to make such provision enforceable to the fullest extent permitted by law and/or shall delete specific words and
phrases, and such modified provision shall then be enforceable and shall be enforced. In the event that any court determines that the
time period or the area, or both, are unreasonable and that any of the covenants is to that extent invalid or unenforceable, the parties
agree that such covenants will remain in full force and effect, first, for the greatest time period, and second, in the greatest geographical
area that would not render them unenforceable.

 

(j)            Enforceability.
The Parties each acknowledge that the other party acted in good faith in the negotiation and execution of the provisions in this Section 6.
In particular, the Parties acknowledge that given the nature of Executive’s duties and responsibilities (and Executive’s
associated influence over the Company’s business and its relationships with its customers), the restrictions and duration of the
obligations set forth in this Section 6 are reasonable and no broader than necessary to protect the legitimate business interests
of the Company and the goodwill thereof. Executive further acknowledges that the restrictions and duration of this Section 6
do not and will not impose an unreasonable hardship upon Executive. The Parties further agree that the requirements of this Section 6
shall survive the termination of Executive’s employment with the Company.

 

(k)            Waiver
or Inapplicability of Non-Competition Obligations. Executive may submit to the Board a written description setting out a reasonable
description (including without limitation the identity of any associated employer and other relevant parties) of any contemplated activity
that would or may otherwise violate or contravene Executive’s obligations under Section 6(e) (the “Specified
Activity”), and request that the Board waive or otherwise confirm the inapplicability of Executive’s obligations under
Section 6(e) with respect to such Specified Activity. If and to the extent the Board confirms in writing to Executive
the waiver or inapplicability of Executive’s obligations under Section 6(e) with respect to the Specified Activity
(such waiver or confirmation, not to be unreasonably withheld based on the interests of the Company), then Executive shall thereafter
have no liability or obligation under Section 6(e) with respect to the Specified Activity.

 

7.            Assignment.
This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive
upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted
for the Company under the terms of this Agreement for all purposes. For this purpose, “successor” means any person, firm,
corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all
or substantially all of the assets or business of the Company. None of the rights of Executive to receive any form of compensation or
benefits pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. None of the
obligations of Executive under this Agreement may be assigned or transferred. Any other attempted assignment, transfer, conveyance or
other disposition of Executive’s right to compensation or other benefits will be null and void.

 

    -11- 

     

    

 

8.            Notices.
All notices, requests, demands and other communications called for under this Agreement will be in writing and will be delivered personally
by hand or by courier, mailed by United States first-class mail, postage prepaid, or sent by email or by other electronic means directed
to the party to be notified at the address or email address indicated for such party on the signature page to this Agreement, or
at such other address or email address as such party may designate by 10 days’ advance written notice to the other parties hereto.
All such notices and other communications will be deemed given upon personal delivery, three (3) days after the date of mailing,
or when sent if given via email or other electronic means.

 

9.            Severability.
In the event that any provision(s) of this Agreement becomes or is declared by an arbitrator or a court of competent jurisdiction
to be illegal, unenforceable or void, this Agreement will continue in full force and effect without such provision(s).

 

10.            Arbitration.

 

READ THE FOLLOWING ARBITRATION PROVISION
CAREFULLY. IT LIMITS CERTAIN OF YOUR RIGHTS, INCLUDING YOUR RIGHT TO OBTAIN REDRESS THROUGH COURT ACTION

 

(a)            Executive
and the Company agree that other than any claims (by Company or Executive) for injunctive relief, any dispute or controversy arising
out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination
thereof, will be settled by binding arbitration to be held in Colorado in accordance with the National Rules for the Resolution
of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant injunctions
or other relief in such dispute or controversy. The decision of the arbitrator will be final, conclusive and binding on the parties to
the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction.

 

(b)            The
arbitrator(s) will apply Colorado law to the merits of any dispute or claim, without reference to rules of conflicts of law.
The arbitration proceedings will be governed by federal arbitration law and by the Rules, without reference to state arbitration law.

 

(c)            EXECUTIVE
HAS READ AND UNDERSTANDS THIS SECTION, WHICH DISCUSSES ARBITRATION. EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EXECUTIVE AGREES
TO SUBMIT ANY CLAIMS (OTHER THAN THOSE FOR INJUNCTIVE RELIEF) WHICH ARISE OUT OF, RELATE TO, OR ARE IN CONNECTION WITH THIS AGREEMENT,
OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING ARBITRATION, AND THAT THIS ARBITRATION
CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL
ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, CLAIMS OF DISCRIMINATION, HARASSMENT, OR RETALIATION,
OTHER THAN CLAIMS FOR INJUNCTIVE RELIEF.

 

(d)            The
Parties each acknowledge and agree that they have had ample time to consider the terms of this arbitration agreement, that they each
negotiated it at arms-length with equal bargaining power,

 

	 	Executive Signature Signifying Agreement To Arbitration	 

 

    -12- 

     

    

 

11.            Integration/Waiver.
This Agreement, its exhibits, and the confidentiality and invention assignment agreement described in Section 5 above represent
the entire agreement and understanding between the parties as to the subject matter herein and supersede all prior or contemporaneous
agreements whether written or oral, including without limitation any employment agreement previously signed by Executive. To the extent
that any provision of the CIIA conflicts with any provision in this Agreement, the provisions requiring Executive to comply with the
higher standard shall govern. No waiver, alteration or modification of any of the provisions of this Agreement will be binding unless
in writing and signed by duly authorized representatives of the parties hereto.

 

12.            Tax
Withholding. All payments made pursuant to this Agreement will be subject to applicable taxes and other withholdings or deductions
authorized or required by law.

 

13.            Governing
Law; Consent to Personal Jurisdiction. THIS AGREEMENT WILL BE GOVERNED BY THE LAWS OF THE STATE OF COLORADO WITHOUT REGARD FOR CONFLICTS
OF LAWS PRINCIPLES. EACH PARTY EXPRESSLY CONSENTS TO THE PERSONAL JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE DISTRICT
OF COLORADO SUBJECT TO THE ARBITRATION PROVISION SET FORTH IN SECTION 10.

 

14.            Attorneys’
Fees. In the event of arbitration or litigation arising from or relating to this Agreement, each party shall be responsible for such
party’s own attorneys’ fees and costs and expenses including expert witness fees.

 

15.            Construction
of Agreement. The parties have participated jointly in the negotiating and drafting of this Agreement. If a question concerning
intent or interpretation arises, no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship.

 

16.            Captions.
Titles or captions contained in this Agreement are for convenience and are not intended to affect the substantive meaning of any
provision.

 

17.            Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

18.            Code
Section 409A. To the fullest extent applicable, amount and other benefits payable under this Agreement are intended to
be exempt from the definition of “nonqualified deferred compensation” under section 409A of the Internal Revenue Code of
1986, as amended (“Section 409A”) in accordance with one or more of the exemptions available under the final
Treasury regulations promulgated under Section 409A and, notwithstanding anything in the Agreement to the contrary, to the extent
that any such amount or benefit is or becomes subject to Section 409A due to a failure to qualify for an exemption from the definition
of nonqualified deferred compensation in accordance with such final Treasury regulations, this Agreement must be interpreted and administered
to the extent possible, or amended, to comply with the applicable requirements of Section 409A with respect to these amounts or
benefits.

 

[Signature page follows]

 

    -13- 

     

    

 

IN WITNESS WHEREOF, each
of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above
written.

 

	 	“COMPANY”

 

	 	Flex Leasing Power & Service LLC

 

	 	By: 	 

	 	Name: 	 

	 	Title: 	 

	 	Date:	 

 

	 	Address: 
	 	 

	 	112 Corporate Drive, Suite 3 

	 	Portsmouth, NH 03801 

	 	Attn.: Board of Directors 

	 	Email:	 

 

	 	“EXECUTIVE”

 

 

	 	Doug Baltzer

 

	 	Date:	 

 

	 	Address:

 

	 	 

	 	 
	 	 

	 	Email:	 

 

 

     

     

    

 

Exhibit A

 

Form of General
Release

 

     

     

    

 

 

Exhibit B

 

Form of Confidentiality and Invention
Assignment AgreementExhibit 10.8

 

SUBLEASE

 

BETWEEN

 

PIONEER NEW HAMPSHIRE LLC

 

AS

“SUBLESSOR”

 

AND

 

FLEXENERGY ENERGY SYSTEMS, INC.

 

AS

“SUBLESSEE”

 

     

     

    

 

	TABLE
    OF CONTENTS
	 	 	 
	ARTICLE	 	PAGE
	 	 	 
	RECITALS	 	1
	ARTICLE 1.	PREMISES	2
	ARTICLE 2.	CONDITION OF SUBLEASED PREMISES
    - SUBLESSOR’S WORK	3
	ARTICLE 3.	TERM	4
	ARTICLE 4.	RENT	5
	ARTICLE 5.	SUBLESSOR’S COMPLIANCE	6
	ARTICLE 6.	SURRENDER OF SUBLEASED PREMISES	7
	ARTICLE 7.	INSURANCE	8
	ARTICLE 8.	SUBLESSOR’S RIGHT TO PERFORM
    SUBLESSEE’S COVENANTS	10
	ARTICLE 9.	USE OF SUBLEASED PREMISES	11
	ARTICLE 9A	[RESERVED]	12
	ARTICLE 10.	LIENS	13
	ARTICLE 11.	REPAIRS AND MAINTENANCE	14
	ARTICLE 12.	RIGHT OF SUBLESSOR TO INSPECT
    AND REPAIR	15
	ARTICLE 13.	GENERAL INDEMNIFICATION BY SUBLESSEE	16
	ARTICLE 14.	UTILITIES	18
	ARTICLE 15.	ALTERATIONS – SIGNS	19
	ARTICLE 16.	DESTRUCTION AND RESTORATION	21
	ARTICLE 16(A)	EMINENT DOMAIN	23
	ARTICLE 17.	DEFAULT BY SUBLESSOR	24
	ARTICLE 18.	DEFAULT BY SUBLESSEE	25
	ARTICLE 19.	DELEGATION - ASSIGNMENT - SUBLEASES
    - MORTGAGES	28
	ARTICLE 20.	[RESERVED]	30
	ARTICLE 21.	ESTOPPEL CERTIFICATES	31
	ARTICLE 22.	INVALIDITY OF PARTICULAR PROVISIONS	32
	ARTICLE 23.	NOTICES	33
	ARTICLE 24.	QUIET ENJOYMENT	34
	ARTICLE 25.	ENVIRONMENTAL PROTECTION	35
	ARTICLE 26.	MISCELLANEOUS	40
	ARTICLE 27.	TERMINATION OF SUBLEASE	44

 

    i 

     

    

 

EXHIBITS TO SUBLEASE

 

Exhibit

 

	1	-	PRIMARY LEASE
	 	 	 
	2	-	VESTING DEED
	 	 	 
	3	-	PLANS DESIGNATING THE SUBLEASED
    PREMISES
	 	 	 
	4	 	SUBLESSOR’S WORK
	 	 	 
	5	-	LIST OF ENVIRONMENTAL LAWS AND
    REGULATIONS
	 	 	 
	6	-	RESERVED
	 	 	 
	7	-	FAA REQUIREMENTS

 

    ii 

     

    

 

SUBLEASE

 

THIS SUBLEASE (“Sublease”)
is made by and between Pioneer New Hampshire LLC, a New Hampshire limited liability company (“Sublessor”) and FlexEnergy
Energy Systems, Inc., a Delaware corporation (“Sublessee”). (Sublessor and Sublessee may be referred to jointly as the
 “Parties.”)

 

RECITALS

 

A.       Pioneer
New Hampshire LLC entered into a Sublease dated December 23, 1999 with the Pease Development Authority (“PDA”), an agency
of the State of New Hampshire established pursuant to RSA ch 12-G for premises located at the Pease International Tradeport in Portsmouth,
New Hampshire described as follows: Former Brackett School, Corporate Drive, Pease International Tradeport (the “Property”),
which lease was amended effective September 6, 2012 a copy of which Sublease and Amendment are attached hereto as Exhibit 1 (collectively
the “Primary Lease”).

 

B.       At
the time of the Primary Lease, PDA anticipated acquiring fee title to the portion of the former Pease Air Force Base hereinafter designated
Premises I and II from the United States of America (“Government” or “Air Force”) by public benefit transfer
(i.e. transfer without consideration) pursuant to the general authority contained in 49 U.S.C. Sections 47151-47153 and other applicable
provisions of law. (Together, Premises I and Premises II constitute the entirety of the Airport (the “Airport” or “Pease”)).
Pending final disposition of the Airport, PDA and Air Force entered into a Lease as of April 14, 1992 for the Airport District, a Supplement
No. 1 thereto dated August 4, 1992, a Supplement No. 2 thereto dated July 15, 1993 and a Supplement No. 3 thereto dated June 27, 1997.

 

C.       On
October 15, 2003 the PDA acquired the portion of the Airport on which the Subleased Premises are located pursuant to a deed recorded
in the Rockingham County Registry of Deeds (“Vesting Deed”) attached hereto as Exhibit 2.

 

D.       Attached
as an exhibit to the Vesting Deed is a copy of the Federal Facilities Agreement (as amended, the “FFA”) required under Section
120 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601 et seq.,
that was entered into by the Air Force, the New Hampshire Department of Environmental Services (“NHDES”) and the United States
Environmental Protection Agency (“EPA”) and pertains to certain contamination at Pease and the FFA also imposes certain requirements
upon PDA, Sublessor (and therefore Sublessee) which are addressed in the terms and conditions of this Sublease.

 

E.       On
June 28, 2013, Sublessor submitted the Property subject to the Primary Lease to a leasehold condominium pursuant to Declaration of Condominium
dated May 30, 2013, and recorded in the Rockingham County Registry of Deeds at Book 5454, Page 2283 and site and floor plans recorded
in said Registry as Plan #D-37765 (collectively, the “Condominium Instruments”).

 

    1 

     

    

 

NOW, THEREFORE, in consideration
of the covenants herein contained and other valuable consideration, the receipt of which is hereby acknowledged, Sublessor and Sublessee
hereby agree as follows:

 

ARTICLE 1.

 

PREMISES

 

1.1.       Description
of Subleased Premises

 

Sublessor, for and in consideration
of the rents and covenants herein specified to be paid and performed by Sublessee, hereby leases to Sublessee, and Sublessee hereby hires
from Sublessor, the premises described generally below, and more particularly on the plan attached as Exhibit 3 (the “Subleased
Premises” or the “Premises”):

 

Approximately 5800 rentable square
feet of space, located in Unit 3A, 112 Corporate Drive, Portsmouth, New Hampshire, together with the non-exclusive right to use in common
with others entitled thereto, the sidewalks and driveways, and including the nonexclusive use of spaces for automobile parking facilities
which are adjacent to said building for Sublessee’s employees and business invitees.

 

1.2.       Easements
- Rights-of-Way

 

In addition to the Primary
Lease, Vesting Deed and Condominium Instruments, this Sublease is subject to existing easements and rights-of-way of record and to (i)
the Utility Sublease and License Agreement dated July 31, 1992 by and between PDA and Public Service Company of New Hampshire (“PSNH”),
(ii) the utility Sublease and License Agreement dated May 10, 1995 by PDA and New England Telephone and Telegraph Company (“NETEL”);
(iii) the Wastewater Disposal and Water Service Facilities Sublease and License Agreement dated as of January 1, 1993 and amended July
1, 1998 by and between PDA and the City of Portsmouth (“COP”) and (iv) the Pipeline Easement and Transfer Agreement dated
August 12, 1998 by and between PDA, Portland Natural Gas Transmission System and Maritimes & Northeast Pipeline, L.L.C. Furthermore,
in the Vesting Deed, the Government reserves, on behalf of the Federal Aviation Administration (“FAA”) for the use and benefit
of the public, an avigation easement and a right of way for the free and unobstructed passage of aircraft in the airspace above the surface
of the Airport, together with the right to cause in such airspace such sound, vibrations, fumes, dust, fuel particles, and all other
effects as may be caused by the operation of aircraft, now known or hereafter used, for the navigation through or flight in the said
airspace, and for use of said airspace for landing on, taking off from, or operating on the Airport.

 

1.3.       Access;
Parking

 

Sublessee shall have the right to use 25 parking
spaces as well as the right, in common with other Airport tenants and authorized Airport users, to use the entrances, exits and roadways
designated by PDA for common use at the Airport, subordinate, however, to PDA’s rights to manage the common areas and roadways,
which rights of PDA shall include, without limitation, the right to impose reasonable rules and regulations, and to add, delete, alter,
or otherwise modify the designation and non-exclusive use of all parking areas, entrances, exists, roadways and other areas of the Airport.

 

END OF ARTICLE 1

 

 

    2 

     

    

 

ARTICLE 2.

 

CONDITION OF SUBLEASED PREMISES – SUBLESSOR’S WORK

 

2.1       PDA shall not be responsible
for any latent or other defect or change of condition in the Subleased Premises. Sublessee accepts the Subleased Premises in their present
condition, subject only to Sublessor’s obligation to do the Work described on Exhibit 4. All Sublessor’s Work shall
be done in a good and workmanlike manner and compliance with, and with all approvals required by, all applicable governmental regulations,
codes, standards and other requirements, including fire, safety and building codes and Land Use Regulations promulgated by PDA, and shall
be completed on or before February 1, 2021.

 

END OF ARTICLE 2

 

    3 

     

    

 

ARTICLE 3.

 

TERM

 

3.1.       This
Sublease shall commence on February 1, 2021 (“Commencement Date”) and shall end on June 30, 2024, unless terminated earlier
or renewed in accordance with the provisions of this Sublease.

 

3.2       Option
to Renew. Provided Sublessee is not in default under this Sublease, Sublessee will have two (2) options to renew this Sublease for
a period of three (3) years each by giving Sublessor prior written notice of its intent to renew this Sublease not less than six (6) months
before the expiration date of the then expiring term. The renewal will be on all of the same terms and conditions of this Sublease unless
otherwise amended by both parties in writing, except that the Basic Rent for each year of each Option Term shall be three percent (3%)
more than the Basic Rent for the immediately preceding year.

 

END OF ARTICLE 3

 

    4 

     

    

 

ARTICLE 4.

 

RENT

 

4.1.       Commencing
on the Rent Commencement Date, Sublessee shall pay to Sublessor Basic Rent for the initial term equal to $87,000 per annum or $7,250 per
month (“Basic Rent” or “Base Rent”).

 

The Rent Commencement Date is March 1, 2021. If
Sublessee exercises its Option to Renew set forth in Section 3.2, Basic Rent for each year of each Option Term shall be three percent
(3%) more than the Basic Rent for the immediately preceding year.

 

4.2.       The
Basic Rent due under Section 4.1 shall commence on the Rent Commencement Date. Rent shall be payable in each case in equal monthly installments
of one twelfth thereof in advance on the first day of each month without offset (except as expressly provided for in this Sublease) in
lawful money of the United States at the office of Sublessor at c/o Summit Land Development, 340 Central Avenue, Suite 202, Dover, New
Hampshire 03820 or at such other address as Sublessor may hereafter designate in writing.

 

4.3.       This
is a gross lease, and includes all utilities, meaning that Sublessor shall not be reimbursed by Sublessee for, and Sublessee shall not
pay, insurance premiums, maintenance costs, taxes, utilities or, except as expressly provided in this Sublease, any other costs or expenses.

 

4.4.       In
the event that rent, whether the same is Basic Rent is more than fifteen (15) days late, Sublessee shall pay to Sublessor a late fee in
the amount of five (5%) percent of the total amount due. The Sublessee acknowledges and agrees that the characterization of rental amounts
due under this Article 4 as Basic Rent, Additional Rent, or any other characterizations, shall not affect the Sublessor’s ability
to collect said amount upon Sublessee’s default hereunder.

 

4.5.       Security
Deposit. Upon execution of this Sublease, Sublessee shall pay to Sublessor the amount of $7,250, which amount shall be held by Sublessor
as security for any default by Sublessee and will be returned to Sublessee within sixty (60) days after Sublessee’s surrender of
the Premises in accordance with Article 6 below, provided no outstanding default exists.

 

END OF ARTICLE 4

 

    5 

     

    

 

ARTICLE 5.

 

SUBLESSOR’S COMPLIANCE

 

Sublessor shall, at its sole cost and expense and in a timely manner,
perform its respective obligations under the Vesting Deed, the FFA, the Primary Lease, and any other agreements encumbering the Subleased
Premises, and shall comply with all restrictions and other requirements contained therein except to the extent they are delegated to Sublessee
under this Sublease.

 

END OF ARTICLE 5

 

    6 

     

    

 

ARTICLE 6.

 

SURRENDER OF SUBLEASED PREMISES

 

6.1       On the expiration or termination
of this Sublease, Sublessee shall surrender to Sublessor the Subleased Premises, including all improvements and fixtures therein whether
leased to Sublessee hereunder or otherwise owned by Sublessee, broom clean and in good order, condition and repair, reasonable wear and
tear and damage by casualty and taking by eminent domain excepted, together with all alterations, decorations, additions and improvements
that may have been made in, to or on the Subleased Premises, except that Sublessee shall be required to remove its personal property.
Sublessee shall also be required to remove any Alterations made by Sublessee and to restore the Premises to its condition prior to such
Alterations, provided that, as a condition of granting its consent, Sublessor required Sublessee to remove such Alterations. The Subleased
Premises, including the Alterations and fixtures therein, shall be delivered free and clear of all subtenancies, liens and encumbrances,
other than those, if any, permitted hereby or otherwise created or consented to by Sublessor, and if requested to do so, Sublessee shall
execute, acknowledge and deliver to Sublessor such instruments of further assurance as in the reasonable opinion of Sublessor are necessary
or desirable to confirm or perfect Sublessor’s right, title and interest in and to the Subleased Premises including said Alterations
and fixtures. On or before the end of the Sublease term, Sublessee shall remove all of Sublessee’s personal and other property allowed
or required to be removed hereunder and restore the Premises to its prior condition, and all such property not removed shall be deemed
abandoned by Sublessee and may be utilized or disposed of by Sublessor without any liability to Sublessee. Sublessee’s liabilities
under this Article 6 shall survive the expiration or termination of this Sublease.

 

END OF ARTICLE 6

 

    7 

     

    

 

ARTICLE 7.

 

INSURANCE

 

7.1.       Sublessee’s
Insurance. During the entire period that this Sublease shall be in effect, the Sublessee at its expense will carry and maintain:

 

(A)       Contents
insurance coverage on Sublessee’s personal property kept or maintained by the Sublessee at the Subleased Premises in such amount
as is reasonable and prudent.

 

(B)       Comprehensive
general liability insurance, and products and completed operations liability insurance, on an “occurrence basis” in an amount
of two million dollars ($2,000,000) per occurrence against claims for “personal injury”, including without limitation, bodily
injury, death or property damage, occurring upon, in or about the land and buildings of which the Subleased Premises are a part as required
pursuant to the Primary Lease.

 

(C)       Workers’
compensation and employer’s liability insurance in an amount and form which meets all applicable requirements of the labor laws
of the State of New Hampshire, as amended from time to time, and which specifically covers the persons and risks involved in this Sublease.

 

(D)       Automobile
liability insurance, where Sublessee’s operations require such coverage, in amounts approved from time to time by Sublessee, but
not less than one million dollars ($1,000,000) combined single limit for owned, hired and non-owned automobiles.

 

7.2.       All
policies of insurance required to be carried under this Article shall be effected under valid and enforceable policies, in such forms
and amounts as may, from time to time, be required under this Sublease, issued by insurers of recognized responsibility which are authorized
to transact such insurance coverage in the State of New Hampshire. All such policies of insurance shall be for the mutual benefit of Sublessor,
PDA, and Sublessee as named insureds. Upon the execution of this Sublease (and thereafter not less than fifteen (15) days prior to the
expiration date of each policy furnished pursuant to this Article) a certificate of insurance evidencing the required coverage shall be
delivered by each party to the other.

 

7.3.       All
policies of insurance shall provide for loss thereunder to be adjusted and payable to Sublessor or Sublessee in accordance with the terms
of this Sublease.

 

7.4.       Each
such policy or certificate therefor issued by the insurer shall to the extent reasonably obtainable, with the insurance companies
with whom the parties normally do business, contain (i) a provision that no act or omission of Sublessee, Sublessor, or any
employee, officer or agent thereof, which would otherwise result in forfeiture or reduction of the insurance therein provided shall
affect or limit the obligation of the insurance company to pay the amount of any loss sustained; (ii) an agreement by the insurer
that such policy shall not be canceled without at least thirty (30) days prior written notice (or ten (10) days for
non-payment of premiums) by registered mail to the appropriate parties hereof; and (iii) provide that the insurer shall have no
right of subrogation against the PDA or the Sublessor.

 

    8 

     

    

 

7.5.       All
policies of insurance required to be maintained by Sublessee shall have attached thereto the Lender’s Loss Payable Endorsement,
or its equivalent, or a loss payable clause acceptable to Sublessor, for the benefit of any Mortgagee, but the right of any Mortgagee
to the payment of insurance proceeds shall at all times be subject to the provisions of this Sublease with respect to the application
of the proceeds of such insurance.

 

7.6.       The
Parties shall observe and comply with the requirements of all policies of insurance at any time in force with respect to the Subleased
Premises and the Parties shall also perform and satisfy the requirements of the companies writing such policies so that at all times companies
of good standing reasonably satisfactory to Sublessor shall be willing to write or to continue such insurance. Sublessee shall, in the
event of any violations or attempted violations of the provisions of this Section 7.6 by a subtenant, take steps, immediately upon knowledge
of such violation or attempted violation, to remedy or prevent the same as the case may be.

 

7.7.       Any
insurance provided for in this Sublease may be effected by a policy or policies of blanket insurance; provided, however, that the amount
of the total insurance allocated to the Subleased Premises shall be such as to furnish in protection the equivalent of separate policies
in the amounts herein required, and provided further that in all other respects, any such policy or policies shall comply with the other
provisions of this Sublease. In any such case, it shall not be necessary to deliver the original of any such blanket policy to Sublessor,
but Sublessee shall deliver to Sublessor and to any Mortgagee a certificate or duplicate of such policy in form and content acceptable
to Sublessor or Sublessee.

 

END OF ARTICLE 7

 

    9 

     

    

 

ARTICLE 8.

 

SUBLESSOR’S RIGHT TO PERFORM SUBLESSEE’S COVENANTS

 

8.1.       If
Sublessee shall at any time fail to make any payment or perform any other act on Sublessee’s part required by this Sublease, then
Sublessor, after ten (10) days written notice to Sublessee (or, in case of any emergency, without notice, or with such notice as may be
reasonable under the circumstances) and without waiving or releasing Sublessee from any obligation of Sublessee hereunder, may (but shall
not be required to) make such payment or perform such other act on Sublessee’s part to be made or performed as provided in this
Sublease, and may enter upon the Subleased Premises for such purpose and take all such necessary action as may reasonably be deemed appropriate
by Sublessor to correct such failure of Sublessee, all at the expense of Sublessee.

 

8.2.       All
reasonable sums so paid by Sublessor and all reasonable costs and expenses incurred by Sublessor in connection with the performance of
any such act (together with interest thereon at the rate specified in Section 26.1 from the respective date(s) of Sublessor’s making
of each such payment or incurring of each cost or expenses) shall constitute “Additional Rent” payable by Sublessee under
this Sublease and shall be paid by Sublessee to Sublessor on demand.

 

END OF ARTICLE 8

 

    10 

     

    

 

ARTICLE 9.

 

USE OF SUBLEASED PREMISES

 

9.1.       The
sole purpose for which Sublessee may use the Subleased Premises is general office and for no other uses without Sublessor’s and
PDA’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed by Sublessor. Sublessee shall
not use, or permit to be used, the Subleased Premises for any other purpose without the prior express written consent of Sublessor and
PDA. Sublessor’s and PDA’s consent shall be subject to the execution of an appropriate agreement which may include a provision
requiring the payment of established fees and charges that may be applicable to any such additional uses consented to by Sublessor and
PDA. Sublessee is prohibited from any use of the Subleased Premises not specifically granted in this Section 9.1.

 

9.2.       Sublessee
recognizes that the uses authorized in Section 9.1 are not granted on an exclusive basis and that Sublessor and PDA may enter into subleases
or other agreements with other tenants or users at areas of the building in which the Subleased Premises are a part or other areas of
the Airport for similar, identical, or competing uses. No provision of this Sublease shall be construed as granting or authorizing the
granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act as the same may be amended from time to time.

 

9.3.       Sublessee
agrees that it will keep the Premises in a neat, clean and orderly condition and shall be responsible for trash removal in accordance
with the provisions of Chapters 300 through 500 of the Pease Development Authority Zoning Requirements, Site Plan Review Regulations and
Subdivision Regulations (collectively the “Land Use Controls”) and such other rules and regulations from time to time promulgated,
provided that Sublessee shall not be bound by any such rules and regulations until such time as it receives a copy thereof. Sublessor
agrees to cause trash receptacles to be regularly emptied.

 

9.4.       Sublessee
shall be solely responsible for determining the suitability of the Premises for its intended use and whether the same complies with all
zoning and other laws. Sublessee warrants that it holds all certificates, permits, licenses or other entitlements required by federal,
state or local laws in order to allow Sublessee to conduct the permitted uses hereunder, and that the same are and will be kept current,
valid and complete. Sublessee further warrants that it shall at all times abide by and conform with all terms of the same and that it
shall give immediate notice to Sublessor of any additions, renewals, amendments, suspensions or revocations. In the use and occupation
of the Subleased Premises and the conduct of such business thereon, Sublessee, at its sole cost and expense, shall promptly comply with
all present and future laws, ordinances, orders, rules, regulations and requirements of all federal, state and municipal governments,
courts, departments, commissions and boards, any national, state or local Board of Fire Underwriters, or any other body exercising functions
similar to those of any of the foregoing, so long as any such compliance does not require modification to the Subleased Premises or to
its mechanical or electrical services or components.

 

9.5.       Sublessee
shall have the right to contest by appropriate proceedings diligently conducted in good faith, without cost or expense to Sublessor,
the validity or application of any law, ordinance, order, rule, regulation or requirement of the nature referred to in this
Article. If compliance with any such law, ordinance, order, rule, regulation or requirement may be delayed on the basis of an order
from a court of competent jurisdiction pending the prosecution of any such proceeding without the incurrence of any lien, charge or
liability of any kind against the Subleased Premises or Sublessee’s interest therein and without subjecting Sublessor to any
liability, civil or criminal, for failure so to comply therewith, Sublessee may delay compliance therewith consistent with such
court order. Even if such lien, charge or civil liability would be incurred by reason of any such delay, Sublessee may, with the
prior written consent of Sublessor, which consent shall not be unreasonably withheld, conditioned or delayed, contest as aforesaid
and delay as aforesaid, provided that such contest or delay does not subject Sublessor to criminal liability, damages or expense and
provided that Sublessee: (i) furnishes to Sublessor security, reasonably satisfactory to Sublessor, against any loss or injury by
reason of such contest or delay; and (ii) prosecutes the contest with due diligence.

 

9.6.       Sublessor
and PDA shall not be required to join in any proceedings referred to in Section 9.5 unless the provisions of any applicable laws, rules
or regulations at the time in effect shall require that such proceedings be brought by and/or in the name of Sublessor and/or PDA and
Sublessor and/or PDA determines that such action is in its best interests, in which event Sublessor and/or PDA shall join in the proceedings,
or permit the same to be brought in its name, if Sublessee shall pay all expenses in connection therewith.

 

9.7.       Responsibility
for compliance with all federal, state and local laws as required by this Article rests exclusively with the Sublessee so long as any
such compliance does not require modification to the Subleased Premises or to its mechanical or electrical services or components. Sublessor
assumes no enforcement or supervisory responsibility except with respect to matters committed to its jurisdiction and authority.

 

9.8.       Sublessee’s
use of the Subleased Premises shall be orderly and efficient and shall not cause any disruptions to other Airport activities or other
tenants in the building in which the Subleased Premises are a part. Sublessee shall not cause or maintain any nuisance on the Subleased
Premises. Sublessee shall conduct all of its activities hereunder in compliance with Article 25 hereof and in an otherwise environmentally
responsible manner.

 

9.9.       Sublessee
shall have the right to obtain supplies or services from suppliers, vendors or contractors of its own choice at the Subleased Premises,
provided that PDA in the Primary Lease reserved the right to prohibit persons from engaging in “aeronautical activities” (as
defined in Advisory Circular AC 150/5190-2A of the Federal Aviation Administration) or the provisions of ground transportation services
at the Airport except in accordance with concession contracts or operating agreements entered into between PDA and said persons.

 

9.10.       Sublessee
acknowledges that PDA is subject to certain restrictions on the use of the Airport Property set forth in the Vesting Deed, including the
attachments thereto. Notwithstanding any other provision of this Sublease or the Primary Lease, the Sublessee shall also comply with and
be subject to the restrictions contained in the Vesting Deed to the extent applicable to the Subleased Premises or any rights granted
to Sublessee under the Sublease.

 

9.11       Sublessee
shall conduct its business so that it will not cause any noise or disturbance to other tenants in the Building.

 

END OF ARTICLE 9

 

    11 

     

    

 

ARTICLE 9A.

 

[RESERVED]

 

END OF ARTICLE 9A

 

    12 

     

    

 

ARTICLE 10.

 

LIENS

 

10.1.       During
the term of this Sublease, Sublessee shall not permit to remain, and shall promptly discharge, at its cost and expense, all liens, encumbrances
and charges upon the Subleased Premises or any part thereof which arise as a result of the actions/inactions of Sublessee. Sublessee shall,
however, have the right to contest with due diligence the validity or amount of any lien or claimed lien, if Sublessee shall give to Sublessor
such security as Sublessor may reasonably require to insure payment thereof and prevent any sale, foreclosure or forfeiture of Sublessee’s
interest in the Subleased Premises or any portion thereof by reason of such nonpayment. On final determination of the lien or claim for
lien, Sublessee shall immediately pay any judgment rendered with all proper costs and charges and shall have the lien released or judgment
satisfied at Sublessee’s own expense, and if Sublessee shall fail to do so, Sublessor may at its option pay any such final judgment
and clear the Subleased Premises therefrom. If Sublessee shall fail to contest with due diligence the validity or amount of any such lien
or claimed lien, or to give Sublessor security as hereinabove provided, Sublessor may, but shall not be required to, contest the validity
or amount of any such lien or claimed lien or settle or compromise the same without inquiring into the validity of the claim or the reasonableness
of the amount thereof.

 

10.2.       Should
any lien be filed against the Subleased Premises or the building in which the Subleased Premises are a part arising from work performed
by or on behalf of Sublessee, or should any action of any character affecting the title thereto be commenced due to any actions or failure
to act of Sublessee, Sublessee shall give to Sublessor written notice thereof as soon as notice of such lien or action comes to the knowledge
of Sublessee and Sublessee shall cause any lien or action to be dismissed within a reasonable period time.

 

END OF ARTICLE 10

 

    13 

     

    

 

ARTICLE 11.

 

REPAIRS AND MAINTENANCE

 

11.1.       Sublessee
covenants and agrees, throughout the term of this Sublease, without cost to Sublessor, to take good care of the Subleased Premises and
related improvements and fixtures and all mechanical equipment serving the interior of Subleased Premises, which is within the Subleased
Premises and to keep the same in good order and condition, and shall promptly at Sublessee’s own cost and expense, make all necessary
repairs of damage caused by its operations, including any negligence of the Sublessee, its employees or vendors and to keep the Subleased
Premises and related improvements and fixtures in safe, clean and sanitary condition. All such repairs made by Sublessee shall be at least
equal in quality and class to the original work and shall comply with the provisions of Article 15.

 

11.2       Unless
the need for such repair or replacement is due to the misuse or negligence of Sublessee or its invitees, Sublessor agrees to repair, maintain
and replace if necessary, at Sublessor’s expense, the roof, floors, HVAC, structural elements and foundation of the Building in
which the Leased Premises is located. Additionally, Sublessor agrees to maintain and keep in good condition and repair (including making
necessary capital repairs or replacements) all common areas, including common utilities, grounds, parking areas and walkways.

 

11.3       If
Sublessor fails to maintain, repair, or replace any of the items for which Sublessor is responsible under this Sublease, and such failure
continues for ten (10) days after written request by Sublessee, then Sublessee will have the right to perform such maintenance, repair,
or replacement at Sublessor’s sole cost and expense (provided such costs and expenses are reasonable) by delivering notice to Sublessor.
Sublessor agrees to reimburse Sublessee for the costs and expenses reasonably incurred by Sublessee in connection therewith.

 

END OF ARTICLE 11

 

    14 

     

    

 

ARTICLE 12.

 

RIGHT OF SUBLESSOR TO INSPECT AND REPAIR

 

12.1.       Sublessee
will permit Sublessor and/or PDA and their authorized agents and representatives to enter the Subleased Premises at all reasonable times
and upon reasonable prior notice for the purpose of inspecting the same and/or making any necessary repairs and/or performing any work
that may be necessary by reason of Sublessee’s failure to comply with the terms of this Sublease, provided, however, in the event
of an emergency (as determined in Sublessor’s and/or PDA’s sole discretion) no prior notice need be given to Sublessee. Nothing
herein shall imply any duty upon the part of Sublessor and/or PDA to do any such work and performance thereof by Sublessor and/or PDA
shall not constitute a waiver of Sublessee’s default in failing to perform the same. Sublessor and/or PDA may during the progress
of such work keep and store in or on the Subleased Premises all necessary materials, tools, supplies and equipment. Sublessor and/or PDA
shall not be liable for inconvenience, annoyance, disturbance, loss of business or other damage of Sublessee by reason of making such
repairs or the performance of any such work, on or account of bringing materials, tools, supplies or equipment into or through the Subleased
Premises during the course thereof and the obligations of Sublessee under this Sublease shall not be affected thereby, provided, however,
that Sublessor shall use commercially reasonable efforts not to interfere with Sublessee’s use of the Premises. Nothing herein shall
limit the provisions of Article 8.

 

12.2.       Sublessee
acknowledges that from time to time Sublessor and/or PDA may undertake construction, repair or other activities related to the operation,
maintenance and repair of the Building of which the Subleased Premises are a part and/or the Airport (in the case of the PDA) which will
require temporary accommodation by Sublessee. Sublessee agrees to accommodate PDA and Sublessor in such matters, even though Sublessee’s
own activities may be inconvenienced or partially impaired, and Sublessee agrees that no liability shall attach to Sublessor, PDA, its
members, employees or agents by reason of such inconvenience or impairment, unless such activities of Sublessor and/or PDA hereunder are
performed in a negligent manner, provided, however, that Sublessor shall use commercially reasonable efforts not to interfere with Sublessee’s
use of the Premises.

 

END OF ARTICLE 12

 

    15 

     

    

 

ARTICLE 13.

 

GENERAL INDEMNIFICATION

 

13.1.       In
addition to any other obligation of Sublessee under this Sublease to indemnify, defend and hold harmless Sublessor, Sublessee agrees to
indemnify, defend and hold harmless Sublessor against and from any and all third party claims, judgments, damages, penalties, fines, assessments,
costs and expenses, liabilities and losses (including, without limitation, diminution in value of the Premises, damages for the loss or
restriction on the use of the Premises, sums paid in settlement of claims, attorneys’ fees, consultants’ fees and experts’
fees) as a result of the action/inaction of the Sublessee resulting or arising during the term of this Sublease as follows:

 

(1)       from
any condition of the Premises, or complaints of other occupants of the Building resulting from acts or omissions of the Sublessee, agents
or employees; or

 

(2)       from
any breach or default on the part of Sublessee in the performance of any covenant or agreement on the part of Sublessee to be performed
pursuant to the terms of this Sublease, or from any act or omission of Sublessee, or any of its agents, contractors, servants, employees,
sublessees, licensees or invitees; or

 

(3)       from
any accident, injury, loss or damage whatsoever caused to any person or property occurring during the term by act or omission of Sublessee,
on or about the Subleased Premises (including ramp and parking areas), or upon the land, streets, curbs or parking areas adjacent thereto.

 

If any action or proceeding is brought against
Sublessor by reason of any matter for which Sublessee has hereby agreed to indemnify, defend, or hold harmless Sublessor, Sublessee, upon
notice from Sublessor, covenants to resist or defend such action or proceeding. Notwithstanding the foregoing or anything else to the
contrary contained in this Sublease, Sublessor waives the right to recover from Sublessee for any claims, judgments, damages, penalties,
fines, assessments, costs and expenses, liabilities and losses to the extent covered by any insurance maintained by Sublessor.

 

13.2.       The
term “Person” as used in this Article and Article 25 shall include individuals, corporations, partnerships, governmental units
and any other legal entity entitled to bring a claim, action or other demand or proceeding on its own behalf or on behalf of any other
entity.

 

13.3.       The
Sublessee agrees to indemnify, save, hold harmless and defend the Air Force to the same extent required of Sublessor under the Primary
Lease with respect to the Premises.

 

    16 

     

    

 

13.4.       The
Sublessee also expressly waives any claims against PDA and the State of New Hampshire and further agrees to indemnify, defend and
hold harmless PDA and the State of New Hampshire to the same extent required of the Sublessor under the Primary Lease against and
from any and all claims, judgments, damages, penalties, fines, assessments, costs and expenses, liabilities and losses (including,
without limitation, diminution in value of the Premises, damages for the loss or restriction on the use of the Premises, sums paid
in settlement of claims, attorneys’ fees, consultants’ fees and experts’ fees) resulting or arising during
the term of this Sublease: (1) from any act or omission of Sublessee, or any of its agents, contractors, servants, employees,
sublessees, licensees or invitees; (2) from any breach or default on the part of the Sublessee in the performance of any covenant or
agreement on the part of the Sublessee to be performed pursuant to the terms of this Sublease; or (3) from any accident, injury,
death, loss or damage whatsoever caused to any person or property during the term of this Sublease on or about the Subleased
Premises.

 

13.5.       Notwithstanding
the preceding provisions of Sections 13.1, 13.3 and 13.4, Sublessee shall be under no obligation to PDA or the Air Force in respect to
such matters included in Sections 13.1, 13.3 and 13.4 above in existence prior to the effective date of this Sublease or caused by the
negligence or willful misconduct of PDA, its officers, agents or employees, or the gross negligence or willful misconduct of the Air Force,
its assigns, agents, contractors, servants or employees or the negligence or willfill misconduct of Sublessor, its officers, agents or
employees.

 

13.6       Sublessor
agrees to indemnify, defend and hold harmless Sublessee against and from any and all claims, judgments, damages, penalties, fines, assessments,
costs and expenses, liabilities and losses (including, without limitation, diminution in value of the Premises, damages for the loss or
restriction on the use of the Premises, sums paid in settlement of claims, attorneys’ fees, consultants’ fees and experts’
fees): (1) from any breach or default on the part of the Sublessor in the performance of any covenant or agreement on the part of the
Sublessor to be performed pursuant to the terms of this Sublease; or (2) from any accident, injury, death, loss or damage whatsoever caused
to any person or property during the term of this Sublease, on or about the Subleased Premises as a result of the gross negligence or
willful misconduct of the Sublessor, its agents, employees or contractors.

 

END OF ARTICLE 13

 

    17 

     

    

 

ARTICLE 14.

 

UTILITIES

 

14.1.       Sublessee
shall not at any time overburden or exceed the capacity of the mains, feeders, ducts, conduits, or other facilities by which such utilities
are supplied to, distributed in or serve the Subleased Premises. If Sublessee desires to install any equipment which shall require additional
utility facilities or utility facilities of a greater capacity than the facilities provided by Sublessor, such installation shall be subject
to Sublessor’s and PDA’s prior written approval of Sublessee’s plans and specifications therefor, which approval shall
not be unreasonably withheld, conditioned or delayed. If such installation is approved by Sublessor and PDA and if Sublessor and PDA agree
to provide any additional facilities to accommodate Sublessee’s installation, Sublessee agrees to pay Sublessor and/or PDA, in advance
and on demand, the reasonable cost for providing such additional utility facilities or utility facilities of greater capacity.

 

PDA under the Primary Lease
also reserved the right to run such utility lines as it deems necessary in connection with the development of the Airport to, from, or
through the Subleased Premises, provided, however, that PDA in exercising such reserved right shall provide reasonable prior notice and
the opportunity to confer with PDA and shall exercise reasonable efforts to avoid or minimize interference with use of the Subleased
Premises and shall not reduce the useable floor area.

 

PDA under the Primary Lease, at its sole discretion,
shall have the right from time to time, to alter the method and source of supply of the above enumerated utilities to the Subleased Premises
and Sublessee agrees to execute and deliver to PDA such documentation as may be required to effect such alteration. If the alteration
of the method and source of supply of the above enumerated utilities to the Subleased Premises unduly or unreasonably restricts or significantly
adversely effects the Sublessee’s use and enjoyment of the Subleased Premises, the Sublessee shall have the right to terminate this
Sublease as stated in Article 27 below.

 

PDA under the Primary Lease, shall have the option
to supply any of the above enumerated utilities to the Subleased Premises. If PDA shall elect to supply any of such utilities to the Subleased
Premises, Sublessee will purchase its requirements for such services tendered by PDA, and Sublessee will pay PDA, within ten (10) days
after mailing by PDA to Sublessee of statements therefor, at the applicable rates determined by PDA from time to time which PDA agrees
shall not be in excess of the public utility rates for the same service, if applicable, to other aviation tenants at the Airport. If PDA
so elects to supply any of such utilities, Sublessee shall execute and deliver to PDA, within ten (10) days after request therefor, any
documentation reasonably required by PDA to effect such change in the method of furnishing of such utilities.

 

14.2.       All
work and construction under this Article shall comply with the provisions of Article 15 of this Sublease applicable to construction work.

 

14.3.       Sublessee
(and any sublessee or assignee of Sublessee) shall be required to comply with any and all land use control regulations promulgated
by PDA and any and all federal, state and local requirements and standards concerning storm water discharges and discharges
to sewage treatment works, including, without limitation, any pre-treatment requirements.

 

END OF ARTICLE 14

 

    18 

     

    

 

ARTICLE 15.

 

ALTERATIONS - SIGNS

 

15.1.       Sublessee
shall not place or construct any material improvements, changes, structures, alterations or additions (cumulatively referred to in this
Article as “Alterations”), in, to or upon the Subleased Premises without Sublessor’s and PDA’s written consent,
which shall not be unreasonably withheld, conditioned or unduly delayed by Sublessor. Unless Sublessee is subject to an earlier notice
requirement under the PDA’s land use controls or other applicable requirements with respect to the information required under this
section, any request for Sublessor’s and PDA’s consent shall be made upon sixty (60) days prior written notice and shall be
accompanied by preliminary engineering or architectural plans or, if consented to by Sublessor and PDA, working drawings. If Sublessor
and PDA each grants its consent all such work shall be done at Sublessee’s sole cost and expense, subject, in all cases, to the
following covenants:

 

(1)       All
work and Alterations shall be done in compliance with all applicable governmental regulations, codes, standards or other requirements,
including fire, safety and building codes and Land Use Regulations promulgated by PDA and with the provisions of Article 25 of this Sublease.
This obligation shall include compliance with all applicable provisions of the Vesting Deed, including obligations in respect to construction
and construction related work.

 

(2)       All
Alterations shall be of such a character as not to materially reduce the value and usefulness of any of the buildings or other improvements
below their value and usefulness immediately before such Alteration. All work performed hereunder shall be performed in a good and workmanlike
manner, shall conform to drawings and specifications approved by Sublessor and PDA in all material respects and shall not be disruptive
of the overall operation of the Airport. All contractors engaged by Sublessee to perform such work shall employ labor that can work in
harmony with all elements of labor at the Airport.

 

(3)       During
the period of construction of any Alterations, Sublessee or any contractor, subcontractor or sublessee of Sublessee shall maintain or
cause to be maintained the following insurance:

 

(i)       The
comprehensive general liability and property damage and automobile insurance provided for in Section 7.1(B) shall be maintained for the
limits specified thereunder and shall provide coverage for the mutual benefit of Sublessor, PDA and Sublessee as named insureds in connection
with any Alteration permitted pursuant to this Article 15;

 

(ii)       Fire
and any other applicable insurance provided for in Article 7 which if not then covered under the provisions of existing policies shall
be covered by special endorsement thereto in respect to any Alteration, including all materials and equipment therefor incorporated in,
on or about the Subleased Premises (including excavations, foundations, and footings) under a broad form all risks builder’s risk
completed value form or equivalent thereof; and

 

    19 

     

    

 

(iii)       Workers’
compensation insurance covering all persons employed in connection with the work and with respect to whom death or bodily injury claims
could be asserted against PDA, Sublessor, Sublessee or the Subleased Premises, with statutory limits as then required under the laws of
the State of New Hampshire.

 

The provisions of all applicable Sections of Article 7 of
this Sublease shall apply to all insurance provided for in this Section.

 

(4)       Sublessee
shall provide Sublessor and PDA with MYLAR as-built drawings when any Alteration authorized hereunder is completed.

 

15.2.       In
addition to the requirements to provide notice to Sublessor and PDA under this Article 15 in respect to any Alteration, Sublessee shall
also provide notice to, EPA and NHDES in the same manner and to the extent required of PDA under the Vesting Deed. In undertaking any
Alteration, Sublessee shall comply with the Vesting Deed to the same extent required of Sublessor and PDA.

 

15.3.       Sublessee
shall have the right to install a sign on the front door and existing sign monument at its sole cost and expense, subject to the prior
written approval by Sublessor of the design and location, which approval shall not be unreasonably withheld, conditioned or delayed if
such sign conforms to existing sign standards of the Building and complies with all laws, regulations and codes.

 

END OF ARTICLE 15

 

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ARTICLE 16.

 

DESTRUCTION AND RESTORATION

 

16.1.       Subject
to the rights of Sublessor’s Mortgagee, if the Premises or the Building are substantially damaged by fire or casualty (the term
 “substantially damaged” meaning damage of such a character that the same cannot, in ordinary course, reasonably be expected
to be repaired within one hundred eighty (180) days from the date of such damage or casualty), or if any substantial part of the Building
is taken by any exercise of the right of eminent domain, then the Sublessor shall have the election either to terminate this Sublease
in accordance with Section 16.2 as it relates to the damaged portions or to repair the damaged portions in accordance with Section 16.3,
subject to the rights of the PDA under the Primary Lease and subject to the rights of Sublessor’s Mortgagee.

 

16.2.       If
the Sublessor elects to terminate this Sublease as allowed in Section 16.1, it shall provide written notice of such termination to Sublessee
within thirty (30) days following the occurrence of such damage or destruction, which termination shall be effective on the tenth (10th)
day following the date of receipt of such notice. In such event, the proceeds received from any applicable policy of insurance obtained
by Sublessor shall be applied first to Sublessor’s mortgagee, second to removing any debris and restoring the site to a condition
satisfactory to the Sublessor, and third to any sums owed by Sublessee to the Sublessor under this Sublease, such as, for example, unpaid
Rent, subject to rights of the PDA under the Primary Lease. Any balance remaining from any insurance proceeds shall then be apportioned
between the Sublessor and Sublessee as follows:

 

First, to Sublessor an amount equal to the unamortized balance
of leasehold improvements made at Sublessor’s expense calculated on a straight line basis over the useful life of said improvement;

 

Second, to Sublessee an amount equal to the unamortized balance
of leasehold improvements made at Sublessee’s expense calculated on a straight line basis over the useful life of said improvement;

 

Third, to Sublessor any remaining balance; subject to the
rights of the PDA under the Primary Lease.

 

16.3.       If
the Sublessor shall elect to repair and restore the damaged premises, it shall provide written notice of such election to Sublessee
within thirty (30) days following the occurrence of such damage or destruction and it shall use diligent, commercially reasonable
efforts to repair and restore the damaged premises to its condition immediately prior to the occurrence of the fire or other cause
as soon as reasonably practicable. In the event of a total loss of the Subleased Premises and Sublessor elects to repair the damage
or destruction or fails to exercise its option to terminate herein, Sublessor shall, within 6 months after the date of written
notice to Sublessee, have substantially completed the repair and restoration of the damaged property to its condition immediately
prior to the occurrence of the fire or other cause, subject to the rights of the PDA under the Primary Lease. In the event of a
partial loss involving no damage to structural portions or components of the Subleased Premises and Sublessor elects to repair the
damage or destruction or fails to exercise its option to terminate herein, Sublessor shall, within 60 days after the date of
written notice to Sublessee, repair and restore the damaged property to its condition immediately prior to the occurrence of the
fire or other cause, subject to the rights of the PDA under the Primary Lease. In the event of a partial loss involving damage to
structural portions or components of the Subleased Premises and Sublessor elects to repair the damage or destruction or fails to
exercise its option to terminate herein, Sublessor shall, within 90 days after the date of written notice to Sublessee, repair and
restore the damaged property to its condition immediately prior to the occurrence of the fire or other cause, subject to the rights
of the PDA under the Primary Lease.

 

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16.4.       Sublessor’s
obligations to repair hereunder are subject to Sublessor’s receipt of insurance proceeds for such purpose from Sublessor’s
mortgagee.

 

16.5.       All
repair/restoration work under this Article shall comply with the provisions of Article 15 of this Sublease applicable to construction
work.

 

16.6.       In
the event the loss or damage to Subleased Premises is of such an extent of character that Sublessee’s use of the Premises is substantially
effected, Sublessee shall have the option to surrender the Subleased Premises and terminate this Sublease upon thirty (30) days written
notice to Sublessor or if Sublessee elects to continue its leasehold interest despite loss of use and unless the damage is caused by Sublessee’s
willful misconduct, the Sublessor shall abate the Basic Rent in a just proportion to that part of the Subleased Premises that is unfit
for use in Sublessee’s business. The abatement shall consider the nature and extent of interference to Sublessee’s ability
to conduct business in the Premises and the need for access and essential services. The abatement shall continue from the date the damage
occurred until ten (10) business days after Sublessor completes the repairs and restoration to the Subleased Premises or the part rendered
unusable and notice to Sublessee that the repairs and restoration are completed, or until Sublessee again uses the Premises or the part
rendered unusable, whichever is first. Sublessor is not obligated to repair or restore damage to Sublessee’s trade fixtures, furniture,
equipment or other personal property, or any improvements made by Sublessee.

 

END OF ARTICLE 16

 

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ARTICLE 16A.

 

EMINENT DOMAIN

 

In the event that there is a taking by eminent domain of the whole
of the Subleased Premises, this Sublease shall terminate. In the event that there is a taking by eminent domain of a portion of the Subleased
Premises, then this Sublease shall terminate as to the portion taken. In the event that the taking shall not be of the entire Subleased
Premises, but the part of the Subleased Premises remaining shall not be reasonably sufficient and suitable for Sublessee’s use and
occupancy for the purposes permitted hereunder, then Sublessee may terminate this Sublease forthwith. In all cases, the entire damages
attributable to land, buildings and improvements shall belong to Sublessor, provided, however, that Sublessee may receive moving expenses.

 

END OF ARTICLE 16A

 

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ARTICLE 17.

 

DEFAULT BY SUBLESSOR

 

If Sublessor fails to perform any of Sublessor’s obligations
under this Sublease, which failure is not cured within fifteen (15) days after the giving of written notice thereof by Sublessee, unless
such default is of such nature that it cannot be cured within such fifteen (15) day period, in which case no event of default shall occur
so long as Sublessor shall commence the curing of the default within such fifteen (15) day period and shall thereafter diligently prosecute
the curing of same (except in the event of an emergency situation, which is only subject to a five (5) day notice and cure period), then
Sublessor shall be in default and Sublessee will have the right (in addition to all other rights and remedies available at law or in equity)
to (i) perform such obligation on behalf of Sublessor at Sublessor’s sole cost and expense (provided such costs and expenses are
reasonable) by delivering notice to Sublessor, in which event Sublessor agrees to reimburse Sublessee for the reasonable costs and expenses
incurred by Sublessee in connection therewith within ten (10) days after request by Sublessee.

 

END OF ARTICLE 17

 

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ARTICLE 18.

 

DEFAULT BY SUBLESSEE

 

18.1.       The
occurrence of any of the following events shall constitute a Default and breach of this Sublease by Sublessee:

 

A. The failure
by Sublessee to pay when due the Basic Rent, or Additional Rent, or any other payment required to be made by Sublessee to Sublessor hereunder
where such failure continues for seven (7) business days after written notice thereof by Sublessor to Sublessee.

 

B.       The
abandonment or vacation of the Subleased Premises by Sublessee while in material breach or default of any other provision of this Sublease
that lasts for thirty (30) days or more.

 

C.       The
failure by Sublessee to observe and perform any other provision of this Sublease (including without limitation compliance with federal,
state and local laws and regulations) to be observed or performed by Sublessee, where such failure continues for thirty (30) business
days after written notice thereof by Sublessor to Sublessee; provided that if the nature of such default is such that the same cannot
reasonably be cured within such thirty-business-day period, Sublessee shall not be deemed to be in default if Sublessee shall within such
period commence such cure and thereafter diligently prosecutes the same to completion.

 

D.       The
making by Sublessee of any general assignment for the benefit of creditors; the filing by or against a Sublessee of a petition to have
Sublessee adjudged a bankrupt or of a petition for reorganization or arrangement under any law relating to bankruptcy; or the attachment,
execution or other judicial seizure of substantially all of Sublessee’s assets or of Sublessee’s interest in this Sublease;
provided, however, that in the event of an involuntary filing against Sublessee, the Sublessee shall have sixty (60) days in which to
cause such filing to be dismissed.

 

E.       If
any guarantor attempts to revoke its Guaranty.

 

18.2.       In
the event of any Default by Sublessee, Sublessor shall have the option to terminate this Sublease and all rights of Sublessee hereunder
by giving ten (10) days written notice of such intention to terminate in the manner specified herein, or Sublessor may elect among any
one or more of the following remedies without limiting any other remedies available to Sublessor:

 

(1)       subject
to available legal and factual defenses,

 

		·	a decree or order of a court of competent jurisdiction
compelling specific performance by Sublessee of its obligations under the Sublease;

 

		·	a decree or order by a court of competent jurisdiction
restraining or enjoining the breach by Sublessee of any of its obligations under the Sublease; and

 

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		(2)	to the extent allowed by law, the right to undertake to cure Sublessee’s default, in which event
Sublessee shall pay Sublessor the reasonable costs incurred in such undertaking;

 

If Sublessor shall elect to so terminate this Sublease, then Sublessor
may recover from Sublessee:

 

		(i)	any unpaid rent up to the effective
date of termination; plus

 

		(ii)	all amounts necessary to compensate Sublessor for all the detriment proximately caused by Sublessee’s
failure to perform its obligations under this Sublease or which in the ordinary course of things would be likely to result therefrom,
including, the discounted value of the rental payments payable to Sublessor under the full term of this Sublease; provided, however, that
Sublessor shall use reasonable efforts to relet the Premises; plus

 

		(iii)	the reasonable costs to relet the Premises (including repairs due to damage caused by Sublessee or
Sublessee’s failure to maintain the interior of the Premises and reasonable remodeling costs, commissions and all other reasonable
costs); plus

 

		(iv)	such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time
by applicable New Hampshire law.

 

18.3.       In
the event of any such default by Sublessee, Sublessor shall also have the right, with or without terminating this Sublease, to peaceably
reenter the Subleased Premises and remove all persons and property from the Subleased Premises to the extent allowed under New Hampshire
law. Such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Sublessee. Under
no circumstances shall Sublessor be held liable in damages or otherwise by reason of any such peaceable reentry or eviction or by reason
of the exercise by Sublessor of any other remedy provided in this Article. All property of Sublessee which is stored by Sublessor may
be redeemed by Sublessee within thirty (30) days after Sublessor takes possession upon payment to Sublessor in full of all obligations
then due from Sublessee to Sublessor and of all costs incurred by Sublessor in providing such storage. If Sublessee fails to redeem such
property within this thirty (30) day period, Sublessor may sell the property in any reasonable manner, and shall apply the proceeds of
such sale actually collected first against the costs of storage and sale and then against any other obligation due from Sublessee.

 

    26 

     

    

 

18.4.       In
the event of the vacation or abandonment of the Subleased Premises by Sublessee while in material breach or default of any other
provision of the Sublease for thirty (30) days or in the event that Sublessor shall elect to reenter as provided in Section 18.3 or
shall take possession of the Subleased Premises pursuant to any provision of New Hampshire law or pursuant to any notice provided by
law, then if Sublessor does not elect to terminate this Sublease as provided in Section 18.2, Sublessor may from time to time,
without terminating this Sublease, either recover all rental as it becomes due or relet the Subleased Premises or any part thereof
for such terms and conditions as Sublessor in its reasonable discretion may deem advisable, including the right to make
alterations and repairs to the Subleased Premises. In the event that Sublessor shall elect to relet, then rentals received by
Sublessor from such reletting shall be applied: first, to the payment of any indebtedness other than rent due hereunder from
Sublessee to Sublessor; second, to the payment of any reasonable cost of such reletting; third, to the payment of the reasonable
cost of any alterations and repairs to the Subleased Premises; fourth, to the payment of rent due and unpaid hereunder; and the
residue, if any, shall be held by Sublessor and applied in payment of future rent as the same may become due and payable hereunder.
Should the amount of rental received from such reletting during any month which is applied to the payment of rent be less than that
required to be paid during that month by Sublessee under this Sublease, the Sublessee shall pay such deficiency to Sublessor
immediately upon demand by Sublessor. Such deficiency shall be calculated and paid monthly. Sublessee shall also pay to Sublessor,
as soon as ascertained, any reasonable costs and expenses incurred by Sublessor in such reletting or in making such alterations and
repairs not covered by the rentals received from such reletting.

 

18.5.       The
various rights and remedies reserved to Sublessor, including those not specifically described under this Sublease, shall be cumulative,
and, except as otherwise provided by New Hampshire statutory law in force and effect at the time of the execution of this Sublease, Sublessor
may pursue any or all of such rights and remedies, whether at the same time or otherwise.

 

18.6.       No
delay or omission of Sublessor to exercise any right or remedy shall be construed as a waiver of any such right or remedy or of any default
by Sublessee.

 

18.7.       Notwithstanding
any other provision of this Sublease, in the event the breach by Sublessee in the reasonable opinion of Sublessor or PDA affects or is
likely to affect the efficient operation of the Airport or give rise to public safety concerns, in addition to any other remedy it may
have under this Sublease, Sublessor and PDA under the terms of the Primary Lease shall also be entitled (but shall not be obligated) to
take whatever actions is reasonably deemed necessary by Sublessor and/or PDA to abate or cure such situation and Sublessee shall reimburse
Sublessor and/or PDA to abate or cure such situation and Sublessee shall reimburse Sublessor and/or PDA for all reasonable costs incurred
by Sublessor and/or PDA in taking such action.

 

END OF ARTICLE 18

 

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ARTICLE 19.

 

DELEGATION - ASSIGNMENT - SUBLEASES - MORTGAGES

 

19.1.       Delegation.
Sublessee shall not have the right to delegate any of its responsibilities or obligations under this Sublease.

 

19.2.       Assignment
and Subleases. Sublessee may not assign this Sublease or sublet the Premises without the prior written approval of the Sublessor and
PDA which consent shall not be unreasonably withheld, conditioned or delayed by Sublessor, provided the provisions of 19.3 below are satisfied.

 

19.3.       Consent.
Any request for Sublessor’s approval shall be made at least forty-five (45) days prior to the commencement of such subtenancy or
assignment and shall provide detailed information concerning the identity and financial condition of the proposed assignee or sublessee
and the terms and conditions of the proposed sublease or assignment. Sublessor shall not unreasonably withhold or delay its consent to
such sublease or assignment if: (1) the use of the Subleased Premises associated with any sublease(s) is permitted under Article 9 and
is compatible with the other existing tenants of the Building in which the Subleased Premises is located, (2) the sublease(s)/assignment(s)
are consistent with the terms and conditions of this Sublease and the Primary Lease; (3) Sublessee remains primarily liable to Sublessor
to pay rent and to perform all other obligations to be performed by subtenant/assignee under this Sublease, (4) the proposed sublessee
is financially and operationally responsible and (5) PDA has given its approval to the proposed sublease/assignment.

 

19.4.       Continuing
Liability of Sublessee. No subletting, assignment or transfer, shall release Sublessee’s obligations or alter the primary liability
of Sublessee to pay the rent and to perform all other obligations to be performed by Sublessee hereunder. The acceptance of rent by Sublessor
from any other person shall not be deemed to be a waiver by Sublessor of any provision hereof. Consent to one assignment or subletting
shall not be deemed consent to any subsequent assignment or subletting. If any assignee of Sublessee or any successor of Sublessee defaults
in the performance of any of the terms hereof, Sublessor may proceed directly against Sublessee without the necessity of exhausting remedies
against such assignee or successor. If Sublessee assigns this Sublease, or sublets all or a portion of the Subleased Premises, or requests
the consent of Sublessor to any assignment or subletting, or if Sublessee requests the consent of Sublessor for any act that Sublessee
proposes to do, then Sublessee shall pay Sublessor’s reasonable processing fee and reimburse Sublessor for all reasonable attorneys’
fees incurred in connection therewith. Any assignment or subletting of the Subleased Premises that is not in compliance with the provisions
of this Article 19 shall be void.

 

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19.5.       Bankruptcy.
If a petition is filed by or against Sublessee for relief under Title 11 of the United States Code, as amended (the
 “Bankruptcy Code”), and Sublessee (including for purposes of this Section Sublessee’s successor in bankruptcy,
whether a trustee or Sublessee as debtor-in- possession) assumes and proposes to assign, or proposes to assume and assign, this
Sublease pursuant to the provisions of the Bankruptcy Code to any person or entity who has made a bona fide offer to accept an
assignment of this Sublease, then notice of the proposed assignment setting forth (a) the name and address of the proposed
assignee, (b) all of the terms and conditions of the offer and proposed assignment, and (c) the adequate assurance to be furnished
by the proposed assignee of its future performance under the Sublease, shall be given to Sublessor by Sublessee no later than twenty
(20) days after Sublessee has made or received such offer, but in no event later than thirty (30) days prior to the date on which
Sublessee applies to a court of competent jurisdiction for authority and approval to enter into the proposed assignment. Any person
or entity to which this Sublease is assigned pursuant to the provisions of the Bankruptcy Code shall be deemed, without further act
or documentation, to have assumed all of the Sublessee’s obligations arising under this Sublease on and after the date of such
assignment. Any such assignee shall, upon demand, execute and deliver to Sublessor an instrument confirming such assumption. No
provision of this Sublease shall be deemed a waiver of Sublessor’s rights or remedies under the Bankruptcy Code to oppose any
assumption and/or assignment of this Sublease, to require a timely performance of Sublessee’s obligations under this Sublease,
or to regain possession of the Premises if this Sublease has neither been assumed nor rejected within sixty (60) days after the date
of the order for relief or within such additional time as a court of competent jurisdiction may have fixed. Notwithstanding anything
in this Sublease to the contrary, all amounts payable by Sublessee to or on behalf of Sublessor under this Sublease, whether or not
expressly denominated as rent, shall constitute rent for the purposes of Section 502(b)(6) of the Bankruptcy Code.

 

19.6.       Notwithstanding
any other provision of this Sublease, any assignment or sublease shall comply with the provision of Article 25.

 

19.7.       Mortgages.
Except as otherwise expressly agreed to by PDA and Sublessor in writing, Sublessee shall not have the right to engage in any financing
or other transaction creating any mortgage upon the Subleased Premises. Any approval of PDA and Sublessor shall expressly be subject to
the provisions of the Primary Lease.

 

END OF ARTICLE 19

 

    29 

     

    

 

ARTICLE 20

 

[RESERVED]

 

END OF ARTICLE 20

  

    30 

     

    

 

ARTICLE 21.

 

ESTOPPEL CERTIFICATES

 

21.1.       Sublessor, on or before
twenty (20) days following receipt of a written request from Sublessee, and Sublessee, on or before twenty (20) days following receipt
of a written request from Sublessor, shall deliver to the party making such request a statement in writing certifying that this Sublease
is unmodified and in full force and effect (or if there shall have been modifications that the same is in full force and effect as modified
and stating the modifications) and the date to which the rent and any other deposits or charges have been paid and stating whether or
not, to the best knowledge of the party executing such certificate (based on reasonable investigation), the party requesting such statement
is in default in the performance of any covenant, agreement or condition contained in this Sublease and, if so, specifying each such default
of which the executing party has knowledge. Should any such estoppels certificate contain language subordinating this Sublease to any
mortgage or other financing security document, Sublessee shall not be required to sign or deliver it unless it contains a non-disturbance
clause preventing the termination of this Sublease so long as Sublessee is not in default of its terms beyond any applicable notice and
time to cure period.

 

END OF ARTICLE 21

 

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ARTICLE 22.

 

INVALIDITY OF PARTICULAR PROVISIONS

 

22.1. If any term or provision of this Sublease, or the application
thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Sublease, or the application
of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected
thereby, and each term and provisions of this Sublease shall be valid and be enforced to the fullest extent permitted by law.

 

END OF ARTICLE 22

 

    32 

     

    

 

ARTICLE 23.

 

NOTICES

 

23.1       Whenever Sublessor or
Sublessee shall desire to give or serve upon the other any notice, demand, request or other communication with respect to this Sublease
or with respect to the Subleased Premises each such notice, demand, request or other communication shall be in writing and shall not be
effective for any purpose unless same shall be given or served by personal delivery to the party or parties to whom such notice, demand,
request or other communication is directed or by mailing the same, in duplicate, to such parties by reputable overnight carrier, delivery
in hand or by certified mail, postage prepaid, return receipt requested, addressed as follows:

 

	If to Sublessor:	Pioneer New Hampshire LLC.
	 	Attention: Chad Kageleiry, Member
	 	P.O. Box 728
	 	Dover, New Hampshire 03821

 

	If to Sublessee:	FlexEnergy Energy Systems, Inc.
	 	Attention: Mark Schnepel
	 	112 Corporate Drive
	 	Portsmouth, NH 03801

 

or at such other address or addresses as Sublessor or Sublessee may
from time to time designate by notice given by certified mail.

 

Every notice, demand, request or communication
hereunder shall be deemed to have been given or served if hand delivered, when received, if sent by overnight, the next business day,
and otherwise as of the second business day following the date of such mailing

 

END OF ARTICLE 23

   

    33 

     

    

 

ARTICLE 24.

 

QUIET ENJOYMENT

 

24.1.       Sublessor
covenants and agrees that Sublessee, upon paying the rent and all other charges herein provided for and observing and keeping all covenants,
agreements, and conditions of this Sublease on its part to be observed and kept, shall quietly have and enjoy the Subleased Premises during
the term of this Sublease without hindrance or molestation by Sublessor and anyone claiming by, through or under Sublessor, subject, however,
to the exceptions, reservations and conditions of this Sublease and the Vesting Deed.

 

END OF ARTICLE 24

  

    34 

     

    

 

ARTICLE 25.

 

ENVIRONMENTAL PROTECTION

 

25.1.       Sublessee
and any sublessee or assignee of Sublessee shall comply with all federal, state, and local laws, regulations, and standards that are or
may become applicable to Sublessee’s or such sublessee’s or assignee’s activities at the Subleased Premises, including
but not limited to, the applicable environmental laws and regulations identified in Exhibit 5, as amended from time to time.

 

25.2.       Sublessee
and any sublessee or assignee of Sublessee shall be solely responsible for obtaining at their cost and expense any environmental permits
required for their operations under this Sublease or any sublease or assignment, independent of any existing Airport permits.

 

25.3.       Sublessee
shall indemnify, defend and hold harmless Sublessor, PDA and the Air Force against and from all claims, judgments, damages, penalties,
fines, costs and expenses, liabilities and losses (including, without limitation, diminution in value of the Premises, damages for the
loss or restriction on the use of the Premises, and sums paid in settlement of claims, attorneys’ fees, consultants’ fees
and experts’ fees), resulting or arising from discharges, emissions, spills, releases, storage, or disposal of any Hazardous Substances
by the Sublessee, or any other action by the Sublessee, or any sublessee or assignee of the Sublessee, giving rise to Sublessor or PDA
or Air Force liability, civil or criminal, or responsibility under federal, state or local environmental laws.

 

This indemnification of Sublessor and PDA and Air
Force by Sublessee includes, without limitation, any and all claims, judgment, damages, penalties, fines, costs and expenses, liabilities
and losses incurred by Sublessor or PDA or Air Force in connection with any investigation of site conditions, or any remedial or removal
action or other site restoration work required by any federal, state or local governmental unit or other person for or pertaining to any
discharges, emissions, spills, releases, storage or disposal of Hazardous Substances arising or resulting from any act or omission of
the Sublessee or any sublessee or assignee of the Sublessee at the Subleased Premises after the Occupancy Date. “Occupancy Date”
as used herein shall mean the first day of Sublessee’s occupancy or use of the Subleased Premises. “Occupancy” or “Use”
shall mean any activity or presence including preparation and construction in or upon the Subleased Premises.

 

The provisions of this Section shall survive the
expiration or termination of the Sublease, and the Sublessee’s obligations hereunder shall apply whenever the Sublessor, PDA, or
the Air Force incurs costs or liabilities for the Sublessee’s actions of the types described in this Article.

 

25.4.       Notwithstanding
any other provision of this Sublease, Sublessee and its assignees do not assume any liability or responsibility for environmental
impacts and damage caused by Air Force of Hazardous Substances on any portion of the Airport, including the Subleased Premises. The
Sublessee and its assignees have no obligation to undertake the defense, remediation and cleanup, including the liability and
responsibility for the costs of damages, penalties, legal and investigative services arising out of any claim or action in existence
now, or which may be brought in the future by any person, including governmental units against theAir Force, because of any use of,
or release from, any portion of the Airport (including the Subleased Premises) of any Hazardous Substances prior to the
Occupancy Date.

 

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25.5.       As
used in this Sublease, the term “Hazardous Substances” means any hazardous or toxic substance, material or waste, oil or petroleum
product, which is or becomes regulated by any local governmental authority, the State of New Hampshire or the United States Government.
The term “Hazardous Substances” includes, without limitation, any material or substance which is (i) defined as a “hazardous
waste,” under New Hampshire RSA ch. 147-A, (ii) defined as a “hazardous substance” under New Hampshire RSA ch. 147-B,
(iii) oil, gasoline or other petroleum product, (iv) asbestos, (v) listed under or defined as hazardous substance pursuant to Part Hc.P
1905 (“Hazardous Waste Rules”) of the New Hampshire Code of Administrative Rules, (vi) designated as a “hazardous substance”
pursuant to Section 311 of the Federal Water Pollution Control Act (33 U.S.C. §1317), (vii) defined as a “hazardous waste”
pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903), or
(viii) defined as a “hazardous substance” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation
and Liability Act, 42 U.S.C. §9601 et seq. (42 U.S.C. §9601) and (ix) so defined in the regulations adopted and publications
promulgated pursuant to any of such laws, or as such laws or regulations may be further amended, modified or supplemented (collectively
 “Hazardous Substance Laws”).

 

As used in this Sublease, the terms “release”
and “storage” shall have the meanings provided in RSA 147-B:2, as amended, and the term “disposal” shall have
the meaning provided in RSA 147-A:2.

 

25.6.       Sublessor’s
rights under this Sublease and PDA’s rights under the Primary Lease specifically include the right of Sublessor and PDA to inspect
the Subleased Premises and any buildings or other facilities thereon for compliance with environmental, safety, and occupational health
laws and regulations, whether or not the Sublessor or PDA is responsible for enforcing them. Such inspections are without prejudice to
the right of duly constituted enforcement officials to make such inspections.

 

25.7.       Notwithstanding
any other provision of this Sublease and pursuant to the Primary lease, PDA is not responsible for any removal or containment of asbestos.
If Sublessee and any sublessee or assignee intend to make any improvements or repairs that require the removal of asbestos, an appropriate
asbestos disposal plan must be incorporated in the plans and specifications. The asbestos disposal plan shall identify the proposed disposal
site for the asbestos. In addition, non-friable asbestos which becomes friable through or as a consequence of the activities of Sublessee
will be abated by Sublessee at its sole cost and expense.

 

25.8.       Sublessor
and Sublessee acknowledge that the Airport has been identified as a National Priority List (NPL) Site under the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA) of 1980, as amended. Sublessee acknowledges that Sublessor has
provided it with a copy of the Pease Federal Facility Agreement (“FFA”) entered into by EPA, and the Air Force on April
24,1991, and Modification No. 1 thereto, effective March 18, 1993, agrees that it will comply with the terms of the FFA to the
extent the same may be applicable to the Subleased Premises and that should any conflict arise between the terms of the FFA and the provisions
of this Sublease, the terms of the FFA will take precedence. The Sublessee further agrees that the Sublessor and PDA assume no
liability to the Sublessee or any sublessee or assignee of Sublessee should implementation of the FFA interfere with their use of
the Subleased Premises. The Sublessee and its sublessee(s) and assignee(s) shall have no claim on account of any such interference
against the Sublessor, or PDA or any officer, agent, employee or contractor thereof, other than a claim to Sublessor for abatement
of rent.

 

    36 

     

    

 

25.9.       The
Air Force, EPA and NHDES and their officers, agents, employees, contractors, and subcontractors have the right, upon reasonable notice
to the Sublessee and any sublessee or assignee, to enter upon the Subleased Premises for the purposes enumerated in this subparagraph
and for such other purposes consistent with the FFA:

 

(1)       to
conduct investigations and surveys, including, where necessary, drilling, testpitting, borings and other activities related to the Pease
Installation Restoration Program (“IRP”) or the FFA; and

 

(2)       to
inspect field activities of the Air Force and its contractors and subcontractors in implementing the IRP or the FFA;

 

(3)       to
conduct any test or survey required by the EPA and NHDES relating to the implementation of the FFA or environmental conditions at the
Subleased Premises or to verify any data submitted to the EPA and NHDES by the Air Force relating to such conditions;

 

(4)       to
construct, operate, maintain or undertake any other response or remedial action as required or necessary under the IRP or the FFA, including,
but not limited to monitoring wells, pumping wells and treatment facilities.

 

25.10.       Sublessee
and its sublessees and assignees agree to comply with the provisions of any health or safety plan in effect under the IRP or the FFA during
the course of any of the above described response or remedial actions. Any inspection, survey, investigation, or other response or remedial
action will, to the extent practicable, be coordinated with representatives designated by the Sublessee and any sublessee or assignee.
Sublessee and any sublessee or assignee shall have no claim on account of such entries against the State as defined in FFA or any officer,
agent, employee, contractor, or subcontractor thereof.

 

25.11.       Sublessee
further agrees that in the event of any authorized sublease or assignment of the Subleased Premises, it shall provide to the Air Force,
EPA and NHDES by certified mail a copy of the agreement of sublease or assignment of the Subleased Premises within fourteen (14) days
after the effective date of such transaction. Sublessee may delete the financial terms and any other proprietary information from any
sublease or assignment submitted to the above mentioned entities.

 

25.12.       The
Airport air emissions offsets and Air Force accumulation points for hazardous and other wastes will not be made available to
Sublessee. Sublessee shall be responsible for obtaining from some other source(s) any air pollution credits that may be
required to offset emissions resulting from its activities under the Sublease.

 

    37 

     

    

 

25.13.       Any
permit required under Hazardous Substance Laws for the management of Hazardous Substances stored or generated by Sublessee or any sublessee
or assignee of Sublessee shall be obtained by Sublessee or its sublessees or assignees and shall be limited to generation and transportation.
Any violation of this requirement shall be deemed a material breach of this Sublease. Sublessee shall provide at its own expense such
hazardous waste storage facilities, complying with all laws and regulations, as it needs for management of its hazardous waste.

 

25.14.       Sublessee,
and any sublessee or assignee of Sublessee whose operations utilize Hazardous Substances, shall have a completed and approved plan for
responding to Hazardous Substances spills prior to commencement of operations on the Subleased Premises. Such plan shall be independent
of, but not inconsistent with, any plan or other standard of PDA applicable to the Airport and except for initial fire response and/or
spill containment, shall not rely on use of the Airport or Sublessor personnel or equipment. Should the Sublessor provide any personnel
or equipment, whether for initial fire response and/or spill containment or otherwise, on request of the Sublessee, or because the Sublessee
was not, in the opinion of the Sublessor, conducting timely cleanup actions, the Sublessee agrees to reimburse the Sublessor for its costs.

 

25.15.       Sublessee,
and any sublessee, or assignee of the Sublessee, must maintain and make available to PDA, the Air Force, EPA and NHDES all records, inspection
logs, and manifests that track the generation, handling, storage, treatment and disposal of hazardous waste, as well as all other records
required by applicable laws and requirements. PDA and the Air Force reserve the right to inspect the Subleased Premises and Sublessee’s,
its sublessee’s or assignee’s records for compliance with Federal, State, local laws, regulations, and other requirements
relating to the generation, handling, storage, treatment and disposal of hazardous waste, as well as the discharge or release of hazardous
substances. Violations may be reported by PDA and the Air Force to appropriate regulatory agencies, as required by applicable law. The
Sublessee, its sublessees or assignees, shall be liable for the payment of any fines and penalties or costs which may accrue to the United
States of America or PDA as a result of the actions of Sublessee, its sublessees or assignees, respectively.

 

25.16.       Sublessee,
its sublessees and assignees agree to comply with the provisions of any Wetlands Management Plan in effect at Pease. Sublessee, its sublessees
and assignees will minimize the destruction, loss or degradation of wetlands on the Subleased Premises. Sublessee, its sublessees and
assignees will obtain prior written approval from Sublessor and the Air Force before conducting any new construction in wetland areas.
Sublessee, its sublessees and assignees will obtain all necessary permits or waivers under Section 404 of the Clean Water Act and the
New Hampshire Fill and Dredge in Wetlands Act.

 

25.17.       Prior
to the development of any portion of the Subleased Premises on which a wetland has been identified in the Final Supplemental Environmental
Impact Statement dated August 1995 (“SEIS”), the Sublessee, its sublessees and assignees, as applicable, shall, if one has
not previously been completed, perform a wetland delineation.

 

    38 

     

    

 

25.18.       Prior
to the storage, mixing, or application of any pesticide, as that term is defined under the Federal Insecticide, Fungicide, and Rodenticide
Act, the Sublessee, its sublessees and assignees shall prepare a plan for storage, mixing and application of pesticides (“Pesticide
Management Plan”). The Pesticide Management Plan shall be sufficient to meet all applicable Federal, State and local pesticide requirements.
The Sublessee, its sublessees and assignees shall store, mix and apply all pesticides within the Subleased Premises only in strict compliance
with the Pesticide Management Plan. The pesticides will only be applied by a licensed applicator.

 

25.19.       The
Sublessee, its sublessees and assignees must notify the Sublessor and the Site Manager of its intent to possess, store, or use any licensed
or licensable source or byproduct materials, as those terms are defined under the Atomic Energy Act and its implementing regulations;
of Sublessee’s, its sublessees and assignees intent to possess, use, or store radium; and of Sublessee’s, its sublessees and
assignees intent to possess or use any equipment producing ionizing radiation and subject to specific licensing requirements or other
individual regulations, at least sixty (60) days prior to the entry of such materials or equipment upon the Airport. Upon notification,
the Sublessor and the Site Manager may impose such requirements, including prohibition of possession, use, or storage, as deemed necessary
to adequately protect health and human environment. Thereafter, the Sublessee must notify the Sublessor and the Site Manager of the presence
of all licensed or licensable source or other byproduct materials, of the presence of all radium, and of the presence of all equipment
producing ionizing radiation and subject to specific licensing requirements or other individual regulation; provided, however, that the
Sublessee, its sublessees and assignees need not make either of the above notifications to the Sublessor and the Site Manager with respect
to source and byproduct material which is exempt from regulation under the Atomic Energy Act. The Sublessee shall not, under any circumstances,
use, own, possess or allow the presence of special nuclear material on the Subleased Premises.

 

25.20.       The
Sublessee, its sublessees and assignees acknowledge that lead-based paint may be present in and on facilities within the Subleased Premises.
The Air Force may conduct surveys to determine the existence and extent of any possible lead-based paint in or on the Subleased Premises.
Prior to beginning any Alterations, other construction or construction related work, (to include paint stripping or sanding), excavating,
demolition, or restoration, the Sublessee, any sublessee or assignee must test any paint which would be disturbed unless a conclusive
determination has been made that lead-based paint is not present. If paint is lead-based, the Sublessee, any sublessee or assignee is
required to handle it in accordance with Title X and all applicable Federal, State and local laws and regulations at its own expense.
The Sublessee is required to ensure that any lead-based paint is maintained in good condition.

 

25.21.       The
Sublessee acknowledges that chlordane was used at selected housing units as described in Environmental Condition Report, Exhibit D-l of
the Master Lease. The Sublessee, its sublessees or assignees will follow all applicable laws and regulations should the Sublessee, its
sublessee or assignee choose to disturb or excavate any of this material. Any cost associated with this action shall be at the Sublessee’s,
its sublessee’s or assignee’s expense.

 

25.22.     
The Sublessee, its sublessees and assignees acknowledge receipt of the Addendum to the June 24, 1997 Finding
of Suitability to Lease (FOSL) attached hereto and incorporated herein as Exhibit 1.

 

END OF ARTICLE 25

 

    39 

     

    

 

ARTICLE 26.

 

MISCELLANEOUS

 

26.1.         All
rent and all other sums which may from time to time become due and payable by Sublessee to Sublessor under any of the provisions of this
Sublease shall be made payable to the Sublessor and forwarded by the Sublessee direct to Sublessor’s address specified in Article
23. All such rent and other sums if not paid on the due date shall bear interest from and after the due date thereof at the higher of
the then current rate applied to legal judgments by the courts of the State of New Hampshire or the rate of twelve percent (12%) per annum;
provided, however, that such interest shall in no event exceed the maximum rate permitted by law.

 

26.2.         In
all cases the language in all parts of this Sublease shall be construed simply, according to its fair meaning and not strictly for or
against Sublessor or Sublessee.

 

26.3.         The
word titles underlying the Article designations contained herein are inserted solely for convenience and under no circumstances are they
or any of them to be treated or construed as any part of this instrument.

 

26.4.         In
any action or proceeding which either Party may take to enforce such Party’s rights hereunder, whether prior to or after breach
or termination, or to which such Party may be made a party because of any matters arising or growing out of this Sublease, and due to
the act or default of the other, the Party whose act or default caused the other Party, without fault to become involved in such litigation,
or who shall be defeated in such litigation, agrees to pay all costs incurred by the winning or other party therein, including reasonable
attorneys’ fees.

 

26.5.         If
Sublessee should remain in possession of the Subleased Premises after the expiration of the term of this Sublease and without executing
a new lease, then such holding over shall be construed as a tenancy at sufferance and the Basic Rent due and payable shall be one and
one half times the amount of the Basic Rent due under this Sublease immediately prior to the expiration of this Sublease.

 

26.6.         The
individuals executing this Sublease on behalf of Sublessee and Sublessor represent and warrant that he or she is duly authorized to execute
and deliver this Sublease on behalf of said entities, and that this Sublease is binding upon said entities in accordance with its terms.
A Certificate of Authority to Do Business in the State of New Hampshire from the New Hampshire Secretary of State is attached as Exhibit
6.

 

26.7.         This
Sublease covers in full each and every agreement of every kind or nature whatsoever between the Parties hereto concerning the
Subleased Premises and all preliminary negotiations and agreements of every kind or nature whatsoever with respect to the Subleased
Premises; and no other person, firm or corporation has at any time had any authority from Sublessor to make any representations or
promises on behalf of Sublessor, and Sublessee expressly agrees that if any such representations or promises have been made by
Sublessor or others, Sublessee hereby waives all right to rely thereon. No verbal agreement or implied covenant shall be held to
vary the provisions hereof, any statute, law, or custom to the contrary notwithstanding. No provision of this Sublease may be
amended or added to except by an agreement in writing signed by the Parties hereto or their respective successors in interest.
Sublessee acknowledges that it has read this Section and understands it to be a waiver of any right to rely on any representations
or agreements not expressly set forth in this Sublease.

 

    40 

     

    

 

26.8.         Subject
to the provisions hereof, this Sublease shall be binding upon and shall inure to the benefit of the Parties hereto and their respective
successors and assigns, and wherever a reference in this Sublease is made to either of the Parties hereto, such reference shall be deemed
to include, wherever applicable, also a reference to the successors and assigns of such party, as if in every case so expressed.

 

26.9.         Nothing
contained in this Sublease shall be deemed or construed by the Parties hereto or by any third person to create the relationship of principal
and agent or of partnership or of joint venture or of any association between Sublessor and Sublessee, and neither the method of computation
of rent nor any other provision contained in this Sublease nor any acts of the Parties hereto shall be deemed to create any relationship
between Sublessor and Sublessee other than the relationship of landlord and tenant.

 

26.10.       Sublessee
agrees that it dealt with no broker.

 

26.11.       This
Sublease shall be construed and enforced in accordance with the laws of the State of New Hampshire.

 

26.12.       Any
actions or proceedings with respect to any matters arising under or growing out of this Sublease shall be instituted and prosecuted only
in courts located in the State of New Hampshire. Nothing contained in this Article or any other provision of this Sublease shall be deemed
to constitute a waiver of the sovereign immunity of the State of New Hampshire, which immunity is hereby reserved to PDA and to the State
of New Hampshire.

 

26.13.       This
instrument may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

 

26.14.       Sublessee
shall faithfully observe and comply with such rules and regulations as the PDA may adopt and modify from time to time for the operation
of the Airport and such rules and regulations as Sublessor may reasonably adopt from time to time for the operation of the building and
lot of which the Subleased Premises are a part. Neither PDA nor Sublessor shall be responsible to Sublessee for the violation or nonperformance
by any other tenant of the PDA or Subtenant of Sublessor of such airport rules and regulations or of Sublessor’s rules and regulations,
provided, however, that Sublessor shall use reasonable efforts to apply such rules and regulations uniformly to all tenants and subtenants.

 

    41 

     

    

 

26.15.       Force
Majeure. Except for the performance of any monetary payment obligations hereunder, the duties of Sublessor or Sublessee to
observe or perform any of the provisions of this Sublease on its part to be performed or observed shall be excused for a period
equal to the period of prevention, delay or stoppage due to causes beyond the control of the affected party, by reason of strikes,
civil riots, shortages of materials (except in the event materials of like kind or quality are available), war, invasion,
fire or other casualty, labor unrest (unless such labor unrest solely affects the Property and is not a result of Sublessee’s
acts, omission or negligence but is caused by the acts, omissions or negligence of Sublessor), actions or public utilities, Acts of
God, adverse seasonal or weather conditions beyond those normally experienced in the Portsmouth area, or other events beyond the
reasonable control of the affected party (“Force Majeure”), provided that (a) the affected party has taken steps
that are reasonable under the circumstances to mitigate the effects of such Force Majeure situation, and (b) the affected party
notifies the other party in writing of the event of Force Majeure within five (5) days after the affected party obtains actual
knowledge of the occurrence thereof. This clause shall not be applicable to any payment of rent or other charges due from Sublessee
to Sublessor.

 

26.16.       Sublessee
agrees to conform to such additional provisions required, from time to time, by the FAA (“FAA Requirements”) or its successor
with respect to the operation of the Airport, or a portion thereof. The current FAA Requirements are attached hereto as Exhibit 7
and incorporated herein by reference.

 

26.17.       This
Sublease is subject and subordinate to any agreements heretofore or hereafter made between PDA and the United States or the Air Force,
the execution of which was required to enable or permit transfer of rights or property to PDA for airport purposes or expenditure of federal
grant funds for airport improvement, maintenance or development, including, without limitation, the Vesting Deed and FFA. Sublessee shall
abide by requirements of any agreement between PDA and the United States or the Air Force or the FAA applicable to the Subleased Premises
or Sublessee’s activities at the Airport and shall consent to amendments and modifications of this Sublease if required by such
agreements or as a condition of PDA’s entry into such agreements. If any such amendment or modification to this Sublease unduly
or unreasonably restricts or significantly adversely affects the Sublessee’s use and enjoyment of the Subleased Premises, the Sublessee
shall have the right to terminate this Sublease as stated in Article 27 below.

 

26.18.       This
Sublease is further subject and subordinate to the Primary Lease between PDA and Sublessor, and Sublessee shall abide by the provisions
of the Primary Lease applicable to the Subleased Premises or Sublessee’s activities at the Airport.

 

26.19.       Sublessee
acknowledges that PDA, in its sole discretion, shall determine and may from time to time change the routes of surface ingress and egress
connecting the Subleased Premises. PDA also reserves the right to further develop the Airport, or such portion of the Airport as is owned
or controlled by PDA, as it sees fit, regardless of the desires or views of Sublessee and without interference or hindrance. If any such
changes to ingress and egress or further development by the PDA significantly adversely affects the Sublessee’s use and enjoyment
of the Subleased Premises, the Sublessee shall have the right to terminate this Sublease as stated in Article 27 below.

 

    42 

     

    

 

26.20.       The
Sublessee herein covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through
it, that this Sublease is made and accepted upon and subject to the following conditions:

 

That there shall be no
discrimination against or segregation of any person or group of persons, on account of race, color, creed, national origin, or
ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Premises herein leased nor shall the
Sublessee, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or
vendees in the Subleased Premises herein leased.

 

26.21.       All
obligations of Sublessee to indemnify, defend and hold harmless Sublessor, and PDA and to make any monetary payment to Sublessor, and
PDA shall survive the termination or expiration of this Sublease. All obligations of Sublessor to indemnify, defend and hold harmless
Sublessee shall survive the termination or expiration of this Sublease.

 

END OF ARTICLE 26

 

    43 

     

    

 

ARTICLE 27.

 

TERMINATION OF SUBLEASE

 

27.1.       The
Parties acknowledge that: (i) this Sublease incorporates by reference a number of ancillary documents including but not limited to the
Vesting Deed, the FFA, and the Primary Lease (the “Incorporated Documents”) and (ii) the PDA and the Sublessor have reserved
certain rights therein and herein (the “Reserved Rights”). In the event that the provisions of the Incorporated Documents
and/or the Reserved Rights, if exercised, unduly or unreasonably restrict or significantly adversely affect the Sublessee’s use
and enjoyment of the Subleased Premises or impose a material obligation upon the Sublessee which is other than those expressly set forth
in this Sublease, then the Sublessee may provide written notice to the Sublessor of the nature of the obligation or action or inaction
and the consequent significant adverse effect such action or inaction has had on the Sublessee within ten (10) days after Sublessee has
actual knowledge thereof. Failure of Sublessee to notify Sublessor within the ten (10) day time period shall be deemed a waiver of its
right to terminate this Sublease. Sublessor shall have 60 days after receipt of Sublessee’s written notice in which to eliminate
the significant or adverse effect on the Sublessee. If the Sublessor is unable to eliminate the significant adverse effect on the Sublessee
within the 60-day period, Sublessee may terminate this Sublease by giving Sublessor a second written notice to Sublessor terminating this
Sublease which termination shall be effective thirty (30) days after receipt of the second written notice by Sublessor. During any period
that actions of the PDA or the Sublessor unduly or unreasonably restrict or significantly adversely affects the Sublessee’s use
and enjoyment of the Subleased Premises, Sublessee’s rent shall be equitably abated during such period of time.

 

END OF ARTICLE 27

 

    44 

     

    

 

EXECUTION

 

IN WITNESS WHEREOF, Sublessor and Sublessee have
executed duplicate originals of this Sublease as of December 23, 2020.

 

	 	SUBLESSOR:
	 	 	 
	 	PIONEER NEW HAMPSHIRE LLC
	 	 	 
	 	By:	   /s/ Chad Kageleiry
	 	 	   Chad Kageleiry, Its Member,
	 	 	   Duly Authorized
	 	 	 
	 	SUBLESSEE:
	 	 	 
	 	FLEXENERGY ENERGY SYSTEMS, INC.
	 	 	 
	 	By:	   /s/ Mark G. Schnepel
	 	 	   Name: Mark G. Schnepel
	 	 	   Title: President and CEO
	 	 	   Duly Authorized

 

STATE OF NEW HAMPSHIRE

COUNTY OF Strafford

 

This
instrument was acknowledged before me on this 29 day of December, 2020 by Chad Kageleiry as member of Pioneer New Hampshire
LLC.

 

	 	/s/ Melanie Morin
	 	Notary Public/ Justice of the Peace

 

(Seal, if any)

 

	 	My Commission Expires:	

 

    45 

     

    

 

STATE OF MASSACHUSETTS

COUNTY OF ESSEX

 

This instrument was acknowledged before me on this
23rd day of December, 2020 by Mark G. Schnepel as President and CEO of FlexEnergy Energy Systems, Inc.

 

	 	 	/s/ Andrea Hellrigel
	 	Notary Public/ Justice of the Peace
	 	 
	(Seal, if any)	 
	 	          My
    Commission Expires: 4.20.2023
	 	 
	 	 

 

    46 

     

    

 

EXHIBIT 1

 

PRIMARY LEASE

 

On file with PDA

 

    47 

     

    

 

EXHIBIT 2

 

VESTING DEED

 

On file with PDA

 

    48 

     

    

 

EXHIBIT 3

 

PLANS DESIGNATING THE SUBLEASED PREMISES

 

[To Be Attached]

 

    49 

     

    

 

 

 

 

    50 

     

    

 

EXHIBIT 4

 

SUBLESSOR’S WORK

 

Sublessor will:

 

		·	Create
a passage in between the two spaces
		·	Provide
a fresh coat of paint on the walls
		·	Shampoo
carpets
		·	Remove
small kitchenette
		·	Add
four (4) solid birch doors with full light
		·	Repair
exterior stucco at entry

 

    51 

     

    

 

EXHIBIT 5

 

LIST OF ENVIRONMENTAL LAWS AND REGULATIONS

 

	Air Quality:	(a)	Clean Air Act & Amendments, 42 U.S.C. 7401-7642
		(b)	40 CFR Parts 50-52, 61, 62, 65-67, 81
		(c)	RSA ch. 125-C, Air Pollution Control, and rules adopted thereunder
		(d)	RSA ch. 125-H, Air Toxic Control Act, and rules adopted thereunder

 

	Hazardous Materials:	(a)	Hazardous
Materials Transportation Act, 49 U.S.C. 1801-1813, and Department of Transportation Regulations thereunder
		(b)	Emergency Planning and Community Right-To-Know Act, 42 U.S.C. 11001-11050
		(c)	49 CFR Parts 100-179
		(d)	40 CFR Part 302
		(e)	RSA ch. 277-A, Toxic Substances in the Workplace, and rules adopted thereunder

 

	Hazardous Waste:	(a)	Resource
Conservation and Recovery Act (RCRA) of 1976 and RCRA Amendments of 1984, 42 U.S.C. 6901-6991i
		(b)	Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980, as amended,
42 U.S.C. 9601-9675
		(c)	40 CFR Parts 260-271, 300, 302
		(d)	RSA ch. 147-A, Hazardous Waste Management, and rules adopted thereunder

 

	Water Quality:	(a)	Federal Water Pollution Control Act (Clean Water
Act) and Amendments, 33 U.S.C. 1251-1387
		(b)	Safe Drinking Water Act, as amended, 42 U.S.C. 300f- 300j-26, 40 CFR Title 100-143, 401 and 403
		(c)	RSA ch. 146-A, Oil Spillage in Public Waters, and rules adopted thereunder
		(d)	RSA ch. 485, New Hampshire Safe Drinking Water Act, and rules adopted thereunder
		(e)	RSA ch. 485-A, Pollution and Waste Disposal, and rules adopted thereunder

 

    52 

     

    

 

EXHIBIT 6

 

SUBLESSEE CERTIFICATE OF GOOD STANDING

 

State of New Hampshire

 

Department of State

 

CERTIFICATE

 

I, William M. Gardner, Secretary of State of the State of New Hampshire,
do hereby certify that FLEXENERGY ENERGY SYSTEMS, INC. is a Delaware Profit Corporation registered to transact business in New Hampshire
on April 04, 2011. I further certify that all fees and documents required by the Secretary of State’s office have been received
and is in good standing as far as this office is concerned.

 

Business ID: 646930

Certificate Number: 0005053485

 

		IN TESTIMONY WHEREOF,
	I hereto set my hand and cause
  to be affixed the Seal of the
  State of New Hampshire, this 9th day of December A.D. 2020.
	
	 
	/s/ William M. Gardner
	William M. Gardner
	Secretary of State

 

    53 

     

    

 

EXHIBIT 7

 

SUBLEASE PROVISIONS REQUIRED BY

THE FEDERAL AVIATION ADMINISTRATION

 

1.       Sublessee,
for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby
agree that in the event facilities are constructed, maintained, or otherwise operated on the Subleased Premises, for a purpose for which
a United States Department of Transportation (“DOT”) program or activity is extended or for another purpose involving the
provision of similar services or benefits, Sublessee shall maintain and operate such facilities and services in compliance with all other
requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination
in Federally Assisted Programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, and as said
Regulations may be amended.

 

2.       Sublessee,
for himself, his personal representative, successors in interest, and assigns, as a part of the consideration hereof, does hereby agree
that: (i) no person on the grounds of race, color, or national origin, shall be excluded from participation in, denied the benefits of,
or otherwise be subjected to discrimination in the use of said facilities; (ii) that in the construction of any improvements on, over,
or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded
from participation in, denied the benefits of, or otherwise be excluded from participation in, denied the benefits of, or otherwise be
subject to discrimination; and (iii) that the Sublessee shall use the premises in compliance with all other requirements imposed by or
pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination
in Federally-Assisted Programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, and as said
Regulation may be amended.

 

3.       That
in the event of breach of any of the above nondiscrimination covenants, Sublessor shall have the right to terminate the Sublease, and
to reenter and repossess said land and the facilities thereon, and hold the same as if said lease, had never been made or issued. This
provision does not become effective until the procedures of 49 CFR, Part 21 are allowed and completed including expiration of appeal rights.

 

4.       Sublessee
shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof and it shall
charge fair, reasonable and not unjustly discriminatory prices for each unit or service; PROVIDED THAT the Sublessee may be allowed to
make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers.

 

5.       Non-compliance
with Provision 4 above shall constitute a material breach thereof and in the event of such non-compliance Sublessor shall have the right
to terminate this Sublease, and the estate hereby created without liability therefor or at the election of the Sublessor or the United
States either or both of Sublessor or the United States shall have the right to judicially enforce provisions.

 

    54 

     

    

 

6.       Sublessee
agrees that it shall insert the above five provisions in any lease agreement, by which said Sublessee grants a right or privilege to any
person, firm or corporation to render accommodations and/or services to the public on the Subleased Premises.

 

7.       Sublessee
assures that it will undertake an affirmative action program as required by 14 CFR, Part 152, Subpart E, to insure that no person shall
on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14
CFR, Part 152, Subpart E. Sublessee assures that no person shall be excluded on these grounds from participating in or receiving the services
or benefits of any program or activity covered by this subpart. Sublessee assures that it will require that its covered suborganizations
provide assurance to the Sublessor, that they similarly will undertake affirmative action programs and that they will require assurances
from their suborganizations, as required by 14 CFR, Part 152, Subpart E, to the same effect.

 

8.       Sublessor
reserves the right to further develop or improve the landing area of the Airport as it sees fit, regardless of the desires or view of
the Sublessee and without interference or hindrance.

 

9.       Sublessor
reserves the right, but shall not be obligated to the Sublessee, to maintain and keep in repair the landing area of the Airport and all
publicly-owned facilities of the Airport, together with the right to direct and control all activities of the Sublessee in this regard.

 

10.     This
Sublease shall be subordinate to the provisions and requirements of any existing or future agreement the Sublessor and the United States,
relative to the development, operation or maintenance of the Airport.

 

11.     There
is hereby reserved to Sublessor, its successors and assigns, for the use and benefit of the public, a right of flight for the passage
of aircraft in the airspace above the surface of the Subleased Premises. This public right of flight shall include the right to cause
in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through the said airspace or landing
at, taking off from or operation on the Airport.

 

12.     Sublessee
agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event future
construction of building is planned for the Subleased Premises, or in the event of any planned modification or alteration of any present
or future building or structure situated on Subleased Premises.

 

13.     Sublessee,
by accepting this Sublease expressly agrees for itself, its successors and assigns that it shall not erect nor permit the erection of
any structure or object not permit the growth of any tree on the land leased hereunder above the mean sea level elevation of 200 feet.
In the event the aforesaid covenants are breached, Sublessor reserves the right to enter upon the Premises and to remove the offending
structure or object and cut the offending tree, all of which shall be at the expense of the Sublessee.

 

14.     Sublessee,
by accepting this Sublease, agrees for itself, its successors and assigns that it will not make use of the Subleased Premises in any
manner which might interfere with the landing and taking off of aircraft from the Airport or otherwise constitute a hazard. In the event
the aforesaid covenant is breached, Sublessor reserves the right to enter upon the Subleased Premises, and cause the abatement of such
interference at the expense of the Sublessee.

 

15.     It
is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within
the meaning of Section 308a of the Federal Aviation Act of 1958 (49 U.S.C. 1349a).

 

16.     This
Sublease and all the provisions hereof shall be subject to whatever right the United States Government now has or in the future may have
or acquire, affecting the control, operation, regulation and taking over of said Airport or the exclusive or non-exclusive use of the
Airport by the United States during the time of war or national emergency.

 

    55

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