Document:

Exhibit 10.4

 

 

OFFICE SPACE LEASE
AGREEMENT

 

This Commercial Lease Agreement (“Lease”)
is made and effective October 1, 2012 , by and between Russ Hedrick dba Hedrick Group LLC (“Landlord”)
and _ Sigma Labs, Inc. (“Tenant”).

 

Landlord is the owner of land and improvements
commonly known and numbered as 100 Cienega Street, Santa Fe, New Mexico 87501 -The Hedrick Building (the “Building”):

 

Landlord makes available for lease a portion
of the Building designated as Suites C, D and E (the “Leased Premises”).

 

Landlord desires to lease the Leased Premises
to Tenant, and Tenant desires to lease the Leased Premises from Landlord for the term, at the rental and upon the covenants, conditions
and provisions herein set forth.

 

THEREFORE, in consideration of the mutual
promises herein, contained and other good and valuable consideration, it is agreed:

 

1. Term.

 

A. Landlord hereby leases the Leased Premises
to Tenant, and Tenant hereby leases the same from Landlord, for an “Initial Term” beginning October 1, 2012
and ending September, 2013.

 

B. Tenant may renew the Lease for one extended
term of 1 year. Tenant shall exercise such renewal option, if at all, by giving written notice to Landlord not less
than ninety (90) days prior to the expiration of the Initial Term. The renewal term shall be at the rental set forth below and
otherwise upon the same covenants, conditions and provisions as provided in this Lease.

 

2. Rental.

 

A. Tenant shall pay to Landlord during the
Initial Term rental of $36,000 per year, in installments of $3,000.00 per month. Each installment payment
shall be due in advance on the first day of each calendar month during the lease term to the Landlord at Barbra
Hedrick, 2888 Plaza Blanca, Santa Fe, NM 87507 or at such other place designated by written notice from Landlord or Tenant.
The rental payment amount for any partial calendar months shall be prorated on a daily basis. Tenant shall also pay to Landlord
a “Security Deposit” in the amount of 0.00 [Security Deposit].

 

B. The rental for any renewal lease term,
if created as permitted under this Lease, shall be negotiated by August 1, 2013.

 

3. Use

 

Allowed use is strictly for traditional
office activity as required by Landlord's Insurance. Tenant shall not use the Leased Premises for the purposes of storing, manufacturing
or selling any explosives, flammables or other inherently dangerous substance, chemical, thing or device.

 

4. Sublease and Assignment.

 

Tenant shall not sublease all or any part
of the Leased Premises, or assign this Lease in whole or in part without Landlord’s consent.

 

5. Repairs.

 

During the Lease term, Tenant shall make,
at Tenant’s expense, all necessary repairs to the Leased Premises. Repairs shall include such items as routine repairs of
floors, walls, ceilings, and other parts of the Leased Premises damaged or worn through normal occupancy, except for major mechanical
systems or the roof, subject to the obligations of the parties otherwise set forth in this Lease. Note: Landlord agrees to continue
to provide such repairs as performed in the past under the Sumner Lease (e.g. carpet repair / cleaning, light bulb replacement,
plumbing maintenance, etc...).

 

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6. Alterations and Improvements.

 

Any alteration or improvements to the Leased
Premises shall require Landlord's consent and shall be negotiated between Landlord and Tenant.

 

7. Property Taxes.

 

Landlord shall pay, prior to delinquency,
all general real estate taxes and installments of special assessments coming due during the Lease term on the Leased Premises,
and all personal property taxes with respect to Landlord’s personal property, if any, on the Leased Premises. Tenant shall
be responsible for paying all personal property taxes with respect to Tenant’s personal property at the Leased Premises.

 

8. Insurance.

 

A. If the Leased Premises or any other party
of the Building is damaged by fire or other casualty resulting from any act or negligence of Tenant or any of Tenant’s agents,
employees or invitees, rent shall not be diminished or a bated while such damages are under repair, and Tenant shall be responsible
for the costs of repair not covered by insurance.

 

B. Landlord shall maintain fire and extended
coverage insurance on the Building and the Leased Premises in such amounts as Landlord shall deem appropriate. Tenant shall be
responsible, at its expense, for fire and extended coverage insurance on all of its personal property, including removable trade
fixtures, located in the Leased Premises.

 

C. Tenant and Landlord shall, each at its
own expense, maintain a policy or policies of comprehensive general liability insurance with respect to the respective activities
of each in the Building with the premiums thereon fully paid on or before due date, issued by and binding upon some insurance company
approved by Landlord, such insurance to afford minimum protection of not less than $1,000,000 combined single limit coverage of
bodily injury, property damage or combination thereof. Landlord shall be listed as an additional insured on Tenant’s policy
or policies of comprehensive general liability insurance, and Tenant shall provide Landlord with current Certificates of Insurance
evidencing Tenant’s compliance with this Paragraph. Tenant shall obtain the agreement of Tenant’s insurers to notify
Landlord that a policy is due to expire at least (10) days prior to such expiration. Landlord shall not be required to maintain
insurance against thefts within the Leased Premises or the Building.

 

9. Utilities.

 

Landlord shall pay all charges for water,
sewer, gas, and electricity, Tenant shall pay for all other services. Tenant acknowledges that the Leased Premises are designed
to provide standard office use electrical facilities and standard office lighting. Tenant shall not use any equipment or devices
that utilize excessive electrical energy or which may, in Landlord’s reasonable opinion, overload the wiring or interfere
with electrical services to other tenants.

 

10. Signs.

 

Tenant shall not place any sign on the Building
without Landlord's consent. Landlord shall pay for a sign in the Tenant's name in front of the Tenant's assigned Parking Space.

 

11. Entry.

 

Landlord shall have the right to enter upon
the Leased Premises at reasonable hours to inspect the same, provided Landlord shall not thereby unreasonably interfere with Tenant’s
business on the Leased Premises.

 

12. Parking.

 

During the term of this Lease, Tenant shall
have four exclusively assigned parking spaces (four spaces from north of parking area). Building parking assignments are strictly
enforced, and cooperation with other Tenants is required. Any use of the assigned parking space by clients, associates and friends
and family of the Tenant shall be closely monitored by the Tenant. Landlord shall have shared use of the most northern parking
space when he is in Santa Fe.

 

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13. Building Rules.

 

Tenant will comply with the rules of the
Building adopted and altered by Landlord from time to time and will cause all of its agents, employees, invitees and visitors to
do so; all changes to such rules will be sent by Landlord to Tenant in writing. There shall be no whining.

 

14. Damage and Destruction.

 

Subject to Section 8 A. above, if the Leased
Premises or any part thereof or any appurtenance thereto is so damaged by fire, casualty or structural defects that the same cannot
be used for Tenant’s purposes, then Tenant shall have the right within ninety (90) days following damage to elect by notice
to Landlord to terminate this Lease as of the date of such damage. In the event of minor damage to any part of the Leased Premises,
and if such damage does not render the Leased Premises unusable for Tenant’s purposes, Landlord shall promptly repair such
damage at the cost of the Landlord. In making the repairs called for in this paragraph, Landlord shall not be liable for any delays
resulting from strikes, governmental restrictions, inability to obtain necessary materials or labor or other matters which are
beyond the reasonable control of Landlord. Tenant shall be relieved from paying rent and other charges during any portion of the
Lease term that the Leased Premises are inoperable or unfit for occupancy, or use, in whole or in part, for Tenant’s purposes.
Rentals and other charges paid in advance for any such periods shall be credited on the next ensuing payments, if any, but if no
further payments are to be made, any such advance payments shall be refunded to Tenant. The provisions of this paragraph extend
not only to the matters aforesaid, but also to any occurrence which is beyond Tenant’s reasonable control and which renders
the Leased Premises, or any appurtenance thereto, inoperable or unfit for occupancy or use, in whole or in part, for Tenant’s
purposes.

 

15. Default.

 

If default shall at any time be made by
Tenant in the payment of rent when due to Landlord as herein provided, and if said default shall continue for fifteen (15) days
after written notice thereof shall have been given to Tenant by Landlord, or if default shall be made in any of the other covenants
or conditions to be kept, observed and performed by Tenant, and such default shall continue for thirty (30) days after notice thereof
in writing to Tenant by Landlord without correction thereof then having been commenced and thereafter diligently prosecuted, Landlord
may declare the term of this Lease ended and terminated by giving Tenant written notice of such intention, and if possession of
the Leased Premises is not surrendered, Landlord may reenter said premises. Landlord shall have, in addition to the remedy above
provided, any other right or remedy available to Landlord on account of any Tenant default, either in law or equity. Landlord shall
use reasonable efforts to mitigate its damages.

 

16. Quiet Possession.

 

Landlord shall provide Tenant with Quiet
Possession in accordance with the laws New Mexico.

 

17. Condemnation.

 

If any legally, constituted authority condemns
the Building or such part thereof which shall make the Leased Premises unsuitable for leasing, this Lease shall cease when the
public authority takes possession, and Landlord and Ten ant shall account for rental as of that date. Such termination shall be
without prejudice to the rights of either party to recover compensation from the condemning authority for any loss or damage caused
by the condemnation. Neither party shall have any rights in or to any award made to the other by the condemning authority.

 

18. Subordination. 

 

Tenant accepts this Lease subject and subordinate
to any mortgage, deed of trust or other lien presently existing or hereafter arising upon the Leased Premises, or upon the Building
and to any renewals, refinancing and extensions thereof, but Tenant agrees that any such mortgagee shall have the right at any
time to subordinate such mortgage, deed of trust or other lien to this Lease on such terms and subject to such conditions as such
mortgagee may deem appropriate in its discretion. Landlord is hereby irrevocably vested with full power and authority to subordinate
this Lease to any mortgage, deed of trust or other lien now existing or hereafter placed upon the Leased Premises of the Building,
and Tenant agrees upon demand to execute such further instruments subordinating this Lease or attorning to the holder of any such
liens as Landlord may request. In the event that Tenant should fail to execute any instrument of subordination herein require d
to be executed by Tenant promptly as requested, Tenant hereby irrevocably constitutes Landlord as its attorney-in-fact to execute
such instrument in Tenant’s name, place and stead, it being agreed that such power is one coupled with an interest. Tenant
agrees that it will from time to time upon request by Landlord execute and deliver to such persons as Landlord shall request a
statement in recordable form certifying that this Lease is unmodified and in full force and effect (or if there have been modifications,
that the same is in full force and effect as so modified), stating the dates to which rent and other charges payable under this
Lease have been paid, stating that Landlord is not in default hereunder (or if Tenant alleges a default stating the nature of such
alleged default) and further stating such other matters as Landlord shall reasonably require.

 

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19. Security Deposit.

 

The Security Deposit shall be held by Landlord
without liability for interest and as security for the performance by Tenant of Tenant’s covenants and obligations under
this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of rental or a measure
of Landlord’s damages in case of default by Tenant. Unless otherwise provided by mandatory non-waivable law or regulation,
Landlord may commingle the Security Deposit with Landlord’s other funds. Landlord may, from time to time, without prejudice
to any other remedy, use the Security Deposit to the extent necessary to make good any arrearages of rent or to satisfy any other
covenant or obligation of Tenant hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord
on demand the amount so applied in order to restore the Security Deposit to its original amount. If Tenant is not in default at
the termination of this Lease, the balance of the Security Deposit remaining after any such application shall be returned by Landlord
to Tenant. If Landlord transfers its interest in the Premises during the term of this Lease, Landlord may assign the Security Deposit
to the transferee and thereafter shall have no further liability for the return of such Security Deposit.

 

20. Notice.

 

Any notice required or permitted under this
Lease shall be deemed sufficiently given or served if sent by United States certified mail, return receipt requested, addressed
as follows:

 

If to Landlord to:

Russ Hedrick, Hedrick Group LLC

P.O Box 2185

Santa Fe, New Mexico 87504-2185

 

If to Tenant to:

 

Mark Cola

Sigma Labs, Inc.

100 Cienega Street Ste D

Santa Fe, NM 87501

 

 

Landlord and Tenant shall each have the
right from time to time to change the place notice is to be given under this paragraph by written notice thereof to the other party.

 

21. Brokers.

 

Tenant represents that Tenant was not shown
the Premises by any real estate broker or agent and that Tenant has not otherwise engaged in, any activity which could form the
basis for a claim for real estate commission, brokerage fee, finder’s fee or other similar charge, in connection with this
Lease.

 

22. Waiver.

 

No waiver of any default of Landlord or
Tenant hereunder shall be implied from any omission to take any action on account of such default if such default persists or is
repeated, and no express waiver shall affect any default other than the default specified in the express waiver and that only for
the time and to the extent therein stated. One or more waivers by Landlord or Tenant shall not be construed as a waiver of a subsequent
breach of the same covenant, term or condition.

 

23. Memorandum of Lease.

 

The parties hereto contemplate that this
Lease should not and shall not be filed for record, but in lieu thereof, at the request of either party, Landlord and Tenant shall
execute a Memorandum of Lease to be recorded for the purpose of giving record notice of the appropriate provisions of this Lease.

 

24. Headings.

 

The headings used in this Lease are for
convenience of the parties only and shall not be considered in interpreting the meaning of any provision of this Lease.

 

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25. Successors.

 

The provisions of this Lease shall extend
to and be binding upon Landlord and Tenant and their respective legal representatives, successors and assigns.

 

26. Consent.

 

Landlord shall not unreasonably withhold
or delay its consent with respect to any matter for which Landlord’s consent is required or desirable under this Lease.

 

27. Performance.

 

If there is a default with respect to any
of Landlord’s covenants, warranties or representations under this Lease, and if the default continues more than fifteen (15)
days after notice in writing from Tenant to Landlord specifying the default, Tenant may, at its option and without affecting any
other remedy hereunder, cure such default and deduct the cost thereof from the next accruing installment or installments of rent
payable hereunder until Tenant shall have been fully reimbursed for such expenditures, together with interest thereon at a rate
equal to the lesser of twelve percent (12%) per annum or the then highest lawful rate. If this Lease terminates prior to Tenant’s
receiving full reimbursement, Landlord shall pay the unreimbursed balance plus accrued interest to Tenant on demand.

 

28. Compliance with Law.

 

Tenant shall comply with all laws, orders,
ordinances and other public requirements now or hereafter pertaining to Tenant’s use of the Leased Premises. Landlord shall
comply with all laws, orders, ordinances and other public requirements now or hereafter affecting the Leased Premises.

 

29. Final Agreement.

 

This Agreement terminates and supersedes
all prior understandings or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that
is duly executed by both parties.

 

30. Governing Law.

 

This Agreement shall be governed, construed
and interpreted by, through and under the Laws of the State of New Mexico.

 

IN WITNESS WHEREOF, the parties have executed
this Lease as of the day and year first above written.

 

	/s/ Russ Hedrick 	 
	Russ Hedrick, Landlord	 
	 	 
	/s/ Mark Cola 	 
	Mark Cola	 
	President	 
	Sigma Labs, Inc.	 
	 	 

    	5Exhibit 10.5

 

 

LEASE FOR PREMISES AT

 

SANTA FE BUSINESS INCUBATOR,
INC

 

Santa Fe, New Mexico

 

Production Space

 

THIS LEASE is made at Santa Fe, New Mexico
on this 16th day of October 2012 by and between SANTA FE BUSINESS INCUBATOR, INC., a New Mexico nonprofit corporation
(“Landlord”), and B6 Sigma, Inc. (“Tenant”).

 

WITNESSETH:

 

That in consideration of the mutual promises,
covenants, conditions, and terms to be kept and performed, it is agreed between the parties hereto as follows:

 

1. Business Assistance
Program

 

The Landlord and Tenant understand that
Landlord desires to assist and encourage Tenant’s business by providing certain extraordinary business assistance services
in addition to the Lease of the Premises. The parties agree that no default, defect, or omission by Landlord in the providing
and performance of such services shall be deemed to be a default by Landlord under this Lease.

 

2. Description

 

Landlord leases to Tenant, and Tenant shall
pay rent for the Premises identified as production unit A201-202 (“Premises”) at 3900 Paseo del Sol, Santa Fe, New
Mexico.

 

3. Term

 

Tenant shall lease the Premises for a term
of one (1) year commencing the 1st day of November 2012 and ending on the 31st day of October 2013
. Landlord and Tenant shall each have the right to terminate this Lease upon giving the other at least thirty (30) days written
notice of their intent to terminate, such termination to be at the end of such thirty (30) day period or at such later date as
is indicated in the notice to terminate, but not prior to the end of the next monthly cycle.

 

4. Rent / Additional
Rent / Utilities

 

For the Premises and Term set forth above,
the Tenant agrees to pay a total rent of Eight Thousand Seven Hundred and Sixty Dollars ($8,760.00) . Rent shall be paid
in equal monthly installments of Seven Hundred and Thirty Dollars ($730.00) in advance on the first day of each calendar
month.

 

Tenant agrees to pay any and all charges
incurred under separate agreement or otherwise for services furnished by Landlord as well as any other amounts due Landlord as
additional rent which shall be paid along with the monthly installment of rent.

 

The rent in the Production space shall
include the following: real property taxes and assessments. Utilities are not included in the monthly rent for the production
spaces and will be invoiced separately.

 

5. Insurance Costs of
Lessor

 

Tenant shall pay, as additional rent, any
increase in premiums for insurance against direct loss that may be charged during the term of this Lease on the amount of insurance
now carried by the Landlord on the Premises and on the improvements situated on the Premises resulting from the business carried
on therein by the Tenant or from the character of its occupancy, even if the Landlord has consented thereto.

 

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6. Security Deposit

 

As additional security for the faithful
performance of its obligations hereunder, Tenant shall pay to Landlord the sum of Seven Hundred Dollars ($730.00) . Unless
otherwise agreed by landlord and tenant in advance, in writing, Tenant shall pay the security deposit in one (1) payment on or
before the 1st day of November 2012 . The security deposit may be applied by Landlord for the purpose of curing any default
or defaults of Tenant under this Lease, in which event Tenant shall replenish said deposit in full by promptly paying to Landlord
the amount so applied. If Tenant has not defaulted or Landlord has applied the deposit to cure a default and Tenant has replenished
same, then the deposit, or such applicable portion thereof, shall be repaid in Cash to Tenant promptly after the termination of
this Lease. The deposit shall not be deemed an advance payment of rent or a measure of Landlord’s damages for and default
by Tenant. No interest shall be paid on Tenant’s security deposit.

 

	*$700.00
    carried over from Lease Agreement dated October 17, 2011.	 
	 	INITIAL HERE

 

7. Late Charges

 

Tenant agrees to pay a surcharge of fifteen
percent (15%) on any amount ten (10) or more days past due, and a surcharge of twenty-five percent (25%) on any amount fifteen
(15) or more days past due. All payments received shall be first applied to any past due amounts and then to current charges.
No payment by Tenant or acceptance by Landlord of a lesser amount than the basic rent, additional rent, or other payments to Landlord
due hereunder shall be deemed to be other than part payment of the full amount due. Landlord may accept such part payment without
prejudice to Landlord’s right to recover the balance due and payable or to pursue any other remedy provided in this Lease.

 

8. Place of Payment

 

Any payment due from the Tenant to the
Landlord under this Lease shall be made the Landlord’s office at 3900 Paseo del Sol, Santa Fe, New Mexico, or at such other
place the Landlord designates from time to time in writing.

 

9. Holding Over

 

In the event that Tenant holds over after
expiration of this Lease without a written agreement between the parties to renew, extend, or otherwise renegotiate the leasehold
such holding over shall be construed as a month-to-month tenancy on the terms and conditions, so far as applicable, of this Lease.

 

10. Condition of Premises
at Time of Leasing

 

The Tenant acknowledges that it has examined
the Premises prior to the making of this Lease and knows its condition, and that no representations as to its conditions or state
of repair has been made by the Landlord or its agents that are not expressed in this Lease. The Tenant hereby accepts the Premises
in its present condition at the date of the execution of this Lease.

 

11. Delay in Obtaining
Possession

 

If the Tenant cannot take possession of
the Premises at the time provided above because the Premises are not ready, or because another tenant is holding over, or because
of any cause beyond the control of the Landlord, the Landlord shall not be liable in damages to the Tenant; but rent shall fully
abate during the period of any such delay. Landlord shall not be liable for failure to deliver the Premises to Tenant on the beginning
date of this Lease for reasons beyond the Landlord’s control.

 

12. Use and Occupancy

 

The Premises shall be used during the term
of this Lease for the business of Tenant described as B6 Sigma, Inc. and for no other purpose. The Premises shall not be
used, occupied, or kept in violation of any law, municipal ordinance, or regulation.

 

13. Unlawful or Dangerous
Activity

 

Tenant shall neither use nor occupy the
demised Premises or any part thereof for any unlawful, disreputable, or ultrahazardous business purpose, nor operate or conduct
business in a manner constituting a nuisance of any kind. Tenant shall immediately, on discovery of any unlawful, disreputable,
or ultrahazardous use, take action to halt such activity. Tenant agrees to comply with all applicable laws, ordinances, and regulations
of the City of Santa Fe, the State of New Mexico, and the United States Government, and to conform to all reasonable rules and
regulations which Landlord may establish; not to damage any part of the premises; and not to permit any employee, agent, customer,
or visitor to be in violation of any obligation of Tenant under this Lease.

 

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14. Care of Premises

 

The Tenant shall not perform any act or
carry on any practices that may injure the Building or be a nuisance to other tenants in the Building and shall keep the Premises
clean and free from rubbish and dirt at all times. 

 

15. Casualty

 

Subject to the conditions set forth in
Section 15, if the Premises are damaged or destroyed, in whole or in part, during the Term of this Lease, the Landlord shall repair
and restore them to good and tenable condition with reasonable dispatch. If the Premises are untenable in whole, the rent shall
abate in full until they are restored to good and tenable condition. If the premises are untenable in part, rent shall abate pro
rata until they are restored to good and tenable condition. Provided that:

 

	(A)		If delay in repair or restoration
    is caused by the Tenant failing to adjust its own insurance or to remove its damaged goods, wares, equipment, or other property
    within a reasonable time, the rent shall not abate during the period of such delay;

 

	(B)		If casualty damage is caused
    by the negligent or willful acts of the Tenant, its agents or employees, there shall be no rent abatement;

 

	(C)		If during the time of repair,
    the Tenant uses a portion of the Premises for storage, Tenant shall be liable for a reasonable storage fee;

 

	(D)		In the event the Premises
    or the Building are destroyed to the extent of more than one-half its value, the Landlord may terminate the Lease by a written
    notice to Tenant.

 

16. Loss Caused by Other
Tenants

 

The Landlord shall not be liable to the
Tenant for damages occasioned by the acts or omissions of persons occupying adjoining Premises or any part of its Building of
which the Premises are a part, or for any loss or damage resulting to the Tenant of its property from bursting, stoppage, or leaking
of water, gas, or sewer pipes.

 

17. Insurance to be
Obtained by Tenant

 

The Tenant shall carry the following minimum
amounts of insurance during the life of this Lease with the Landlord listed as additional insured:

 

	(A)		Comprehensive General Liability
    insurance issued by a reputable insurance company licensed to do business in New Mexico for bodily injuries, including those
    resulting in death, and property damage in an amount not less than a combined single limit of Three Hundred Thousand Dollars
    ($1,000,000), and an additional Fifty Thousand Dollars ($100,000) for Fire Legal Liability.

 

	(B)		At the sole discretion of
    the Tenant, insurance for all contents, and Tenant’s trade fixtures, machinery, equipment, furniture, furnishings, and
    inventory in the leased Premises. Tenant must be advised the Landlord is not responsible for loss of business contents or
    business income of the Tenant.

 

	(C)		Insurance for any leasehold
    improvement made by Tenant upon the Premises against all risks of direct physical loss, including water pipe and sprinkler
    breakage and damage. The insurance coverage shall be for not less than One Hundred Percent (100%) of the then current full
    replacement cost of such improvements with all proceeds of insurance payable to Landlord provided, however, that such proceeds
    shall be used to restore the improvements.

  

The insurance shall be in companies and
in form, substance, and amount (where not stated above) satisfactory to the Landlord. The insurance shall not be subject to cancellation
except after at least thirty (30) days prior written notice to the Landlord. Certificate of insurance together with satisfactory
evidence of payment of the premiums thereon, shall be deposited with Landlord at the commencement date of this Lease and renewals
thereof not less than thirty (30) days prior to the end of the term of such coverage.

 

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Should Landlord receive notice of cancellation
of said insurance, it shall notify the Tenant to cease operations immediately and not to start again until Landlord receives new
copies evidencing that insurance describe above is in full force and effect.

 

18. Indemnification

 

The Tenant shall indemnify and save the
Landlord, and the President of Santa Fe Business Incubator, Inc. harmless from all claims or liabilities of any type of nature
or any person, firm, or corporation, including any agents or employees of the Tenant, arising in any manner from the Tenant’s
performance of operations and business covered by this Lease. Landlord shall not be liable to the Tenant, or to any other person,
for any damage to any person or property caused by act, omission or neglect of Tenant. Tenant agrees to indemnify or hold Landlord
harmless from any such liability or claim of liability against Landlord, including attorney’s fees.

 

19. Repairs and Alterations
by Tenant

 

Tenant shall, at its own expense, keep
the Premises in good repair, and will, at the expiration of this Lease, deliver the Premises to the Landlord in like condition
as when taken, reasonable use and wear thereof and damage by the elements excepted. The Tenant shall not make any alterations,
additions, or improvements to the Premises without the Landlord’s prior written consent. All alterations, additions, and
improvements made by either party upon the Premises during the Term hereof, except movable office furniture and trade fixtures
put in at Tenant’s expense, shall become property of the Landlord at the expiration of the Term. Tenant covenants to pay
as they become due all just claims for labor and materials used in making any such additions, alterations, or improvements and
to indemnify and save Landlord and the Premises harmless of and from all costs, expenses, and damages, including reasonable attorney’s
fees and costs of suit arising out of or connected with any statutory or other liens against the Premises, the Building, or the
Property for or on account of such labor and materials.

 

Tenant covenants both for itself and its
servants, agents, and employees, to observe and keep all necessary rules and regulations of the Building which affect said Premises
and will at its own cost and expense make any and all necessary alterations or changes in the Premises which may be necessary
because of any act of the Tenant, its servants, agents, and employees, in violation of any law, ordinance, rule or regulation
of any city, state, or government body. Upon the failure of the Tenant to make or proceed to make, any such changes or alterations
within thirty (30) days after being required to by any other rule, regulation, or ordinance above referred to within ten (10)
days of the receipt of said order or notice, then Landlord may enter the Premises at its option and do and perform said alterations
or make such changes at the cost and expense of the Tenant, which said expense shall be deemed as rent and added to the next monthly
installment of rent then accruing and be collectible as such.

 

20. Access to Premises
and Common Areas

 

Landlord may enter the Premises at any
reasonable time for any reasonable purpose. If the Landlord deems any repair necessary for which the Tenant is responsible, Landlord
may demand that the Tenant perform the repair. If Tenant refuses or neglects to make the repair in a reasonable time, the Landlord
may make the repair and charge the Tenant in accordance with Section 6. The Landlord may enter the premises at reasonable times
to install or repair pipes, wires, or other appliances or to make any repair the Landlord deems essential to the use and occupancy
of the other parts of the Building. Landlord shall give reasonable advance notice to Tenant of its intention to make non-emergency
repairs.

 

In addition to the Premises, the Tenant
shall have a non-exclusive right to access to such common areas as Landlord determines to be necessary to the use of the Premises
as appropriate.

 

21. Advertising Displays

 

No sign or advertising shall be displayed
upon the Premises unless approved in writing by the Landlord.

 

22. Nondiscrimination

 

The Tenant agrees not to discriminate against
any client, employee, or applicant for employment or for services because of race, creed, color, national origin, sex, sexual
orientation, or age, with regard to, but not limited to, the following: employment upgrading; demotion or transfer, recruitment
or recruitment advertising; layoffs or termination; rates of pay or other forms of compensation; selection for training; rendition
of services.

 

    	4

    	 

    

 

23. Assignment

 

The Tenant shall not assign, transfer,
or mortgage this lease or sublet the Premises in whole or in part without the Landlord’s prior written consent. Any assignment
or subletting shall not relieve Tenant of any of its obligations under this lease.

 

24. Trash Service

 

Landlord agrees to provide at its cost
a suitable external trash receptacle and regularly scheduled external garbage pick-up sufficient to service Tenants in order to
prevent the unsightly accumulation of trash and other debris. Tenant shall be responsible for trash collection charges that exceed
a normal service minimum charge. Tenant will dispose of all hazardous waste according to local laws and ordinances.

 

 25. Default

 

It is expressly understood and agreed that
if the rents above, or any part thereof, shall be in arrears, or if default shall be made in any of the covenants of agreements
herein contained to be kept by Tenant, Landlord may, at Landlord’s election, give Tenant ten (10) days written notice of
Landlord’s intent to terminate said Lease; provided however, that during said ten (10) day period, Tenant may correct defaults
as set forth in said notice and avoid forfeiture thereof.

 

Upon termination of this Lease pursuant
to the preceding paragraph, Tenant shall peacefully surrender the premises to Landlord, and Landlord may upon such termination
or at any time after such termination, without further notice, rent the Premises. If Tenant fails to peacefully surrender the
Premises, the Landlord may repossess it by force, summary proceedings, ejectment, or otherwise and may dispossess Tenant and remove
Tenant and all other persons and property from the Premises. At any time after such termination, Landlord may relet the Premises
or any part thereof in the name of Landlord or otherwise for such term (which may be greater or lesser than the period which would
otherwise have constituted the balance of the term of this Lease) and on such conditions (which may include concessions or free
rent) as Landlord, in Landlord’s discretion may determine and may collect and receive the rents therefor. Landlord shall
in no way be responsible for or liable for any failure to relet the Premises or any part thereof or for any failure to collect
any rent due upon such reletting.

 

No such termination of this Lease shall
relieve Tenant of Tenant’s liability and obligations under this Lease, and such liability and obligations shall survive
any such termination. In the event of any such termination, whether or not the Premises or any part thereof shall have been relet,
Tenant shall pay to Landlord the rent required to be paid up by Tenant up to the time of such termination, and thereafter, Tenant,
until the end of what would have been the term of this Lease in the absence of such termination shall be liable to Landlord for,
and shall pay to Landlord as and for liquidated and agreed damages for Tenant’s default;

 

	(A)		The equivalent of the amount
    of rent which would be payable under this Lease by Tenant if this Lease were still in full force and effect, Less

 

	(B)		The net proceeds of any
    reletting effected pursuant to the provisions of the preceding subparagraph, after deducting all of Landlord’s reasonable
    expenses in connection with such reletting, including, but not limited to, all repossession costs, brokerage commissions,
    legal expenses, attorneys’ fees, alteration costs and expenses of preparation for such reletting.

 

26. Landlord’s
Lien for Rent

 

Tenant hereby grants a lien to Landlord
on Tenant’s interest in all improvements, fixtures, or personal property, including inventory on the Premises. In the event
Tenant fails to cure a default under this Lease, Tenant authorizes Landlord to take possession of the property free and clear
of Tenant’s interest therein.

 

27. Cumulative Remedies

 

Remedies, rights, and benefits of this
Lease are cumulative and shall not be exclusive of any other remedy, right, or benefit contained herein or of any remedy, right,
or benefit allowed by law.

 

    	5

    	 

    

 

28. Jurisdiction and
Attorney’s Fees

 

The prevailing party is entitled to any
and all attorney fees or other costs incurred in enforcing the provisions set forth in this Lease. This paragraph shall also apply
to any court action or appeals therefrom.

 

29. Waiver

 

One of more waivers by the Landlord or
Tenant of any of this Lease’s provisions shall not be construed as a waiver of a further breach of the same provision.

 

30. Bankruptcy and Insolvency

 

The Landlord may cancel this Lease in the
event that the estate created hereby is taken in execution or by other process of law; or, if the Tenant is declared bankrupt
or insolvent according to law; or if any receiver is appointed for the business and property of the Tenant; or if any assignment
is made of the Tenant’s property for the benefit of creditors.

 

31. Rules and Regulations

 

Tenant, its agents, employees, and invitees
will use the common areas of the Building (reception area, conference rooms, halls, steps, passageways, toilet rooms, delivery
area, parking area, and so forth) subject to rules as the Landlord may make from time to time for the general safety and convenience
of the occupants and tenants of the Building.

 

32. Substitute Space

 

It is understood that Landlord may substitute
space within the Building of similar quality for the Premises leased to the tenant. Landlord shall be responsible for all expenses
in moving Tenant to the new Premises.

 

33. Quiet Enjoyment

 

Upon performing the foregoing covenants,
the Landlord agrees that the Tenant shall and may peaceably and quietly have, hold, and enjoy the Premises of the Term herein.

 

34. Partial Validity

 

If any provision of this Lease shall be
invalid, the remainder of this Lease shall not be affected thereby.

 

35. Notice

 

Whenever this Lease requires notice to
be served on Landlord or Tenant, notice shall be effective the day after mailing, and shall be sufficient if mailed by first-class
mail with postage fully paid, to the following address:

 

	Tenant: B6 Sigma Inc.

        3900 Paseo del Sol

        Santa Fe, New Mexico 87507
	Landlord: Santa
        Fe Business Incubator, Inc.

        3900 Paseo del Sol

        Santa Fe, New Mexico
        87507

 

36. Amendments and Modifications

 

Except for the provisions in Section 1
relating to the Business Assistance Program, Landlord and Tenant agree that this Lease contains the entire agreement, express
or implied, of the parties hereto. There shall be no amendments or modifications to this Lease, unless agreed to in writing, signed
by Landlord and Tenant.

 

37. Binding Successors

 

This Lease is binding on the respective
heirs, successors, representatives, and assigns of the parties.

 

38. Applicable Law

 

This Lease shall be constructed according
to the laws of the State of New Mexico.

 

    	6

    	 

    

 

IN WITNESS WHEREOF, the parties have signed
this Lease in Santa Fe, New Mexico, the day and year written below.

 

	 	TENANT:
    B6 Sigma, Inc.
	LANDLORD: Santa Fe Business
    Incubator, Inc	 
	 	Dated:
    10/24/2012                        
	Dated: 10/29/2012                     	 
	 	By:  	/s/
    Mark J. Cola
	By:  	/s/
    Marie A. Longserre	 	Mark
    J. Cola
	 	Marie A. Longserre	 	President
	 	President/CEO	 

 

DISCLAIMER

 

THIS AGREEMENT of understanding is prepared
for the benefit of the INCUBATOR PROGRAM, hereinafter referred to as “Program,” and B6 Sigma, Inc. , hereinafter
referred to as “Business,” both parties which desire to clearly understand the relationship developed for the benefit
of promoting and assisting in this limited arrangement.

 

Program and Business are neither a partnership
nor a venture of any description, in fact or law, but rather are independent entities forming a voluntary arrangement wherein
Program is a general business advisor of Business. Business is under no compulsion or constraint to accept or implement the suggestions
and advisement of Program.

 

Business specifically acknowledges and
agrees that Program has no liability, past, present, or future, as to the final and ultimate decisions of Business, nor is Business
compelled in any fashion to accept the advisement and suggestions of Program.

 

Program neither assumes nor authorizes
Business to assume any liability of behalf of Program or suggest to third parties, either expressly or implied, that Program is
in any way a principal, agent, or associated entity of Business, and

 

Business specifically acknowledges its
responsibility for all decisions and business matters related to its operation and control.

 

The Business shall indemnify and save the
program; the Landlord, and the President of Santa Fe Business Incubator, Inc.; and any of the Programs’ agents, advisors,
representatives, and employees, harmless from all claims or liabilities of any type of nature or any person, firm, or corporation,
including any agents or employees of the Business, arising in any manner from the Business’s performance of operations and
business covered by this Lease and this disclaimer.

 

Program and Business agree herein to represent
accurately the relationship between Program and Business and to abide by these provisions.

 

Executed this 26 day of October,
2012, in Santa Fe, New Mexico.

 

	Incubator Program	 	Business: B6 Sigma, Inc.
	 	 	 
	/s/
    Marie Longserre	 	/s/
    Mark J. Cola
	Marie Longserre	 	Mark J. Cola
	President/CEO	 	President

 

    	7

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