Document:

dtil-ex103_163.htm

Exhibit 10.3

 

EIGHTH AMENDMENT TO LEASE AGREEMENT

 

THIS EIGHTH AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is made as of the 03 day of March, 2020 (the “Effective Date”) by and between VC OWNER, LLC, a Delaware limited liability company (“Landlord”), and PRECISION BIOSCIENCES, INC., a Delaware corporation (“Tenant”), with respect to the following recitals:

 

D.Pursuant to that certain Lease Agreement dated April 5, 2010, as modified by a First Amendment to Lease Agreement dated August 19, 2011, and by a Second Amendment to Lease Agreement dated July 13, 2015, and by a Third Amendment to Lease Agreement dated January 12, 2016, and by a Fourth Amendment to Lease Agreement dated September 30, 2016 (the “Fourth Amendment”), and by a Fifth Amendment to Lease Agreement dated January 24, 2018, and by a Sixth Amendment to Lease Agreement dated August 6, 2018, and by a Seventh Amendment to Lease Agreement dated November 14, 2018, and an Amended and Restated Seventh Amendment to Lease Agreement dated February , 2019 (collectively, the “Lease”), Landlord (as successor to Venable Tenant LLC) leases to Tenant certain office space in the group of interconnected buildings situated at 302 East Pettigrew Street, Durham, North Carolina known collectively as “Venable Center” (the “Project”), as more particularly described in the Lease;

 

E.All capitalized terms used in this Amendment that are not otherwise defined herein shall have the meanings ascribed to such terms in the Lease.

 

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

 

13.Premises.  Subject to Section 6 of this Amendment, Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, approximately 1,164 rentable square feet of space known as Suite 110 (the “Suite 110 Premises”) in the Prizery Building (the “Building”) located within the Project, as outlined on Exhibit A attached hereto and incorporated herein.  The Term of the Lease with respect to the Suite 110 Premises shall commence as of April 1, 2020 (the “Eighth Amendment Commencement Date”) and shall be coterminous with the Term applicable to the remainder of the Premises.  From and after the Eighth Amendment Commencement Date, Suite 110 Premises shall constitute a portion of the “Premises” for all purposes under the Lease. Landlord shall have no liability to Tenant in the event Landlord is unable to deliver possession of the Suite 110 Premises to Tenant on the Eighth Amendment Commencement Date due to the holding over by the prior tenant thereof or due to any other matter beyond Landlord's reasonable control (and further provided that Landlord shall use commercially reasonable efforts to enforce its rights under the existing lease agreement as modified by the Lease Termination Agreement, as hereinafter defined); however, in such event, Base Rent with respect to the Suite 110 Premises will not begin to accrue until the first business day after Landlord is able to deliver possession of the Suite 110 Premises, broom clean and free of any prior tenancy.  

 

The Suite 110 Premises was a “must-take” expansion premises as set forth in Section 14 of the Fourth Amendment.  Provided, however, and for purposes of clarity, due to the early termination of Weinstein’s (as hereinafter defined) occupancy of the Suite 110 Premises in order to facilitate Tenant’s own leasing of the Suite 110 Premises, the parties acknowledge and agree that the “must-take provisions” of Section 14 of the Fourth Amendment shall not be applicable to Tenant’s leasing of the Suite 110 Premises, and instead, the terms and conditions of this Eighth Amendment shall govern.   

 

 

 

14.Rent.  

 

(a)Suite 110 Premises.  From and after the Eighth Amendment Commencement Date, Tenant shall pay Base Rent with respect to the Suite 110 Premises only in accordance with the following rent table:  

 

	
Period
	
Rate
	
Annual Base Rent
	
Monthly Base Rent

	
EACD* – January 31, 2021
	
$32.50
	
N/A
	
$3,152.50

	
February 1, 2021 – January 31, 2022
	
$33.48
	
$38,970.72
	
$3,247.56

	
February 1, 2022 – January 31, 2023
	
$34.48
	
$40,134.72 
	
$3,344.56 

	
February 1, 2023 – January 31, 2024
	
$35.51
	
$41,333.64 
	
$3,444.47 

	
February 1, 2024 – July 31, 2024
	
$36.58
	
N/A
	
$3,548.26 

 

* Eighth Amendment Commencement Date.  

 

(b)As a part of Tenant’s willingness to incentivize Weinstein’s early termination of the Suite 110 Premises in order to facilitate Tenant’s own leasing of the Suite 110 Premises, Tenant has agreed to pay a portion of the rent payments owed by Weinstein to Landlord for the Suite 110 Premises.   Notwithstanding anything in the Lease to the contrary, Landlord and Tenant hereby acknowledge and agree that Tenant shall make the following payment for the Premises to Landlord on or before the following date: $19,000.00 on the date that is ten (10) days following the Effective Date.

 

15.Additional Rent.  Commencing on the Eighth Amendment Commencement Date, Tenant shall pay Additional Rent with respect to the Suite 110 Premises pursuant to Section 6 of the Lease. With respect to the Suite 110 Premises (only), Tenant’s Proportionate Share shall be (i) 5.59% which is the ratio of 1,164 (the rentable square footage of the Suite 110 Premises) to 20,814 (the rentable square footage of the Building, and (ii) 1.33%, which is the ratio of 1,164 (the rentable square footage of the Suite 110 Premises) to 87,416 (the rentable square footage of the Project) for the Project. Notwithstanding anything in the Lease to the contrary, with respect to the Suite 110 Premises only, the Base Rent is a modified “full-service” rental rate, and commencing on January 1, 2021, Tenant shall pay its Proportionate Share of increases in Operating Expenses over the Operating Expenses incurred in calendar year 2020. 

 

16.Tenant Improvements.  Subject to this Section 4, Tenant shall accept the Suite 110 Premises in its “as is” condition (subject to Landlord's continuing repair and maintenance obligations, as outlined in Section 10 of the Lease (as may be amended)), and Landlord shall have no obligation to make any alterations or improvements thereto whatsoever (provided that Landlord shall deliver same in good and tenantable condition, broom clean, with all systems serving same in good working order). Any alterations that Tenant desires to make in the Suite 110 Premises shall be subject to all the terms and conditions set forth in Section 11 of the Lease.  Notwithstanding anything in the Lease to the contrary, Landlord hereby agrees to grant Tenant an allowance in the amount of $10,000 to be applied toward the cost (including architectural and engineering fees) of alterations performed by Tenant in the Suite 110 Premises (the “Granted Allowance”) in conjunction with Tenant’s initial occupancy of Suite 110 Premises. 

 

Provided no Event of Default then exists under the Lease, the Granted Allowance (or portions thereof) shall be disbursed to Tenant within thirty (30) days following Tenant's submission to Landlord of paid invoices for work related to alterations performed by Tenant in the Suite 110 Premises, accompanied by waivers of liens executed by all contractors employed by Tenant for the performance of such work. If the cost of Tenant's alterations in the Suite 110 Premises exceeds the amount of the Granted Allowance, 

 

 

the excess shall be paid by Tenant after the Granted Allowance is fully exhausted.  Any portion of the Granted Allowance that has not been applied (or contracted to be applied) in the manner set forth above by the date which is twelve (12) months following the Eighth Amendment Commencement Date shall revert to Landlord, and Tenant shall have no further rights with respect thereto.

 

17.Brokers.  Landlord and Tenant each warrant to the other that in connection with this Amendment neither has employed or dealt with any broker, agent or finder, other than CBRE­Raleigh, LLC (the “Landlord’s Broker”) and Cushman & Wakefield (the “Tenant’s Broker”, together with Landlord’s Broker, collectively, “Brokers”). Landlord acknowledges that it shall pay any commission or fee due to the Landlord’s Broker, pursuant to a separate written agreement.  Landlord’s Broker shall pay any commission or fee due to Tenant’s Broker, pursuant to a separate written agreement.  Each party shall indemnify and hold the other harmless from and against any claim for brokerage or other commissions asserted by any broker, agent or finder employed by the indemnifying party or with whom the indemnifying party has dealt, other than the Brokers.

 

18.Contingency.  This Amendment and all provisions contained herein are contingent upon an executed lease termination agreement between Landlord and Weinstein Friedlein Architects, P.A. (“Weinstein”) for the Suite 110 Premises (the “Lease Termination Agreement”), providing that the Suite 110 Premises shall be surrendered to Landlord on or before March 31, 2020, in accordance with the Lease Termination Agreement.  In the event Landlord does not obtain the Lease Termination Agreement by March 31, 2020, Landlord or Tenant shall thereafter have the right to terminate this Amendment (prior to date of receipt of a fully executed Lease Termination Agreement).  

 

19.Parking.  The parties acknowledge and agree that Landlord (or an affiliate of Landlord) is constructing an office building on a nearby and/or adjacent parcel.  Notwithstanding anything in the Lease to the contrary, during the period of time in which Landlord is constructing said office building, (i) Tenant shall not be able to use the parking lot in front of the Building as shown on Exhibit B and (ii) Landlord shall provide Tenant with off-site parking and transportation to and from said off-site parking area to and from the Building.     

 

20.Acknowledgement.  Landlord and Tenant acknowledge that, to their actual knowledge, each party has complied with all of its obligations under the Lease to date, and, to the extent not expressly modified hereby, all of the terms and conditions of said Lease shall remain unchanged and in full force and effect.

 

21.Miscellaneous.  The foregoing is intended to be an addition and a modification to the Lease.  Except as modified and amended by this Amendment, the Lease shall remain in full force and effect.  If anything contained in this Amendment conflicts with any terms of the Lease, then the terms of this Amendment shall govern and any conflicting terms in the Lease shall be deemed deleted in their entirety.  Each party to this Amendment shall execute all instruments and documents and take such further action as may be reasonably required to effectuate the purposes of this Amendment.  This Amendment may be modified only by a writing executed by the parties hereto.  This Amendment may be executed in multiple counterparts, each of which shall be deemed an original, and all such counterparts shall together constitute one and the same instrument.  The invalidity of any portion of this Amendment shall not have any effect on the balance hereof.  This Amendment shall be binding upon the parties hereto, as well as their successors, heirs, executors and assigns.  This Amendment shall be governed by, and construed in accordance with North Carolina law.

 

[Remainder of this page intentionally left blank]

 

 

 

IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this Amendment as of the day and year first above written.

 

 

					
	
LANDLORD:
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
VC OWNER, LLC
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
By:
	
/s/ Jeff Sheehan
	
 
	
 

	
Name:
	
Jeff Sheehan
	
 
	
 

	
Title:
	
Authorized Signator
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
TENANT:
	
 
	
 

	
 
	
 
	
 
	
 

	
PRECISION BIOSCIENCES, INC.
	
 
	
 

	
 
	
 
	
 
	
 

	
By:
	
/s/ Sinu Bhandaru
	
 
	
 

	
Name:
	
Sinu Bhandaru
	
 
	
 

	
Title:
	
Vice-President Operations & IT

	
03March2020
	
 
	
 

 

 

 

 

 

 

 

 

EXHIBIT A

 

FLOOR PLAN OF SUITE 110 PREMISES

 

 

EXHIBIT B

 

PARKING LOT

 

 

 

 

Acknowledgment of Lease Term

 

 

April 9, 2020 

 

 

Precision BioSciences, Inc 

Attn: Sinu Bhandaru, Vice President, Operations & IT 

104 TW Alexander Drive 

PO Box 12292 

Research Triangle Park, NC 27709 

 

	
RE:
	
Venable Center – The Prizery 

302 East Pettigrew Street 

Tenant ID – venable / PZ110 / t0000221 

 

 

Dear Tenant: 

 

In accordance with your Eighth Amendment to Lease Agreement dated March 3, 2020 with VC Owner, LLC (“Landlord”) for Suite PZ110 in the group of interconnected buildings situated at 302 East Pettigrew Street, Durham, North Carolina known collectively as “Venable Center” (the “Project”); the terms are as follows: 

 

	
1.
	
The Commencement Date of the Eighth Amendment Term is April 9, 2020. The Term shall expire on July 31, 2024. 

 

	
2.
	
The monthly Base Rent of $3,152.50 shall commence on April 9, 2020 with annual rent steps to occur on February 1st of each year. Operating Expense payments to begin on January 1, 2021. 

 

If you have any questions, please do not hesitate to contact me at 919-415-4403. 

 

 

Sincerely, 

 

/s/Kevin Troutman

 

Kevin Troutman 

Property Manager 

 

 

 

TENANT ACKNOWLEDGMENT OF TERM: 

			
	
 
	
 
	
 

	
By:
	
 
	
/s/Sinu Bhandaru

	
 
	
 
	
 

	
Its:
	
 
	
Vice President Operations & ITExhibit 10.4

  

  

  

  
    U.S. Small Business Administration

    PAYCHECK PROTECTION PROGRAM

    Promissory Note (the “Note”)

    
      
 

     

    

    	
            Lender

          	
            Sterling National Bank (a subsidiary of Sterling Bancorp.), a national banking association

          
	
            Lender Address

          	
            One Jericho Plaza, 3rd Floor, Jericho, New York 11753

          
	
            Borrower

          	
            AMERI AND PARTNERS INC

          
	
            Borrower Address

          	
            5000 RESEARCH COURT , SUITE 750, SUWANEE, GA 30024

          
	
            Date of Note

          	
            5/7/2020

          
	
            Borrower’s Tax ID # (EIN/SSN)

          	
            464205693

          
	
            Loan Disbursement Date

            (To be Completed by Bank at time of

             Disbursement)

          	 
	
            Loan Amount

          	
            1,719,600.00

          
	
            Loan Interest Rate

          	
            1.00%

          
	
            Loan Number/SBA Guaranty Number

          	
            201047637302 / 1047637302

          

     

    
      
        	
                1.

              	
                PROMISE TO PAY:

              

      

    

     

    In return for the Loan, Borrower promises to pay to the order of Lender the principal amount of $ 1,719,600.00, together with interest on the unpaid principal balance from “Loan Disbursement Date”, calculated at the
      interest rate of 1.00%, and all other amounts required by this Note, until paid in full.

     

    	2.	
            DEFINITIONS:

          

     

    “Loan” means the loan evidenced by this Note.

    “Loan Documents” means the documents related to this Loan signed by Borrower, Lender and/or SBA. “Loan Disbursement Date” means the date the loan was funded to Borrower.

    “SBA” means the Small Business Administration, an Agency of the United States of America.

    “CARES Act” means the federal Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136).

     

    	3.	
            PAYMENT AND LOAN TERMS:

          

     

    Borrower must make all payments at the place Lender designates. The terms for this Note are:

    

    

    
      
        	 	
                A.

              	
                The term of this Loan shall be for a period of two (2) years from the Loan Disbursement Date. The “Maturity Date” of this loan shall be twenty four (24) months from the Loan Disbursement Date.

              

      

    

     

    	

          	B.	
            Payments under the Loan shall be due and payable monthly. The first payment under the Loan shall be due seven (7) months from the date of this Note and shall be due on the same day of each month thereafter. Monthly Loan payments shall be
              for principal plus interest. The first six (6) monthly payments due under the Loan shall be deferred. This initial six (6) month period shall be referred to as the “Deferral Period”.

          

     

    

    	

          	C.	
            Interest will accrue from the Loan Disbursement Date (including during the Deferral Period) at the Interest Rate set forth above until the Loan is paid in full.

          

     

    	

          	D.	
            Borrower agrees to make repayment of the Loan pursuant to the following terms: (i) upon expiration of the Deferral Period, the first Loan payment shall be for the then owing accrued interest, plus 1/18th of Loan principal, (ii) thereafter,
              monthly Loan payments shall consist of 1/17th of equal Loan principal, plus then owing accrued interest; (iii) Loan payments shall continue monthly until the Loan is paid in full or on the Maturity Date, whichever is sooner; (iv) any Loan
              Forgiveness (as defined herein) received by Lender shall be first applied as a payment against all accrued interest and any late fees due under the Loan, and then to principal.

          

     

    

    	

          	E.	
            There are no prepayment penalties for the Loan. Borrower may repay all or a portion of this Loan at any time without penalty.

          

    

    

     

    
      
        	
                Paycheck Protection Program Note

              	
                Page 1 of 4

              	
                Rev. April 2020

              

      

      
        

    

    	

          	F.	
            Borrower understands that this Loan is originated by Lender to Borrower under the guidelines of the Small Business Association Paycheck Protection Program (“PPP” or the “Program”). The guidelines for the Program issued by the SBA,
              currently and as same may be revised or amended from time to time, are hereby incorporated by reference into this Note.

          

     

    	

          	G.	
            Borrower understands that at least 75% of the Loan proceeds MUST be used for payroll costs and payroll related costs, and that after the application of same, the use of any remaining Loan proceeds may only be used pursuant to the terms and
              conditions of the Program.

          

     

    	

          	H.	
            Any monthly statement sent by the Lender during the Deferral Period will be for informational purposes only and will not be a demand for payment. Borrower agrees that such statement(s) may be delivered by Lender by mail or electronic means
              including via email.

          

     

    

    	

          	I.	
            If any required payment due hereunder is 10 days or more late, Borrower will be charged 6% of the unpaid portion of the regularly scheduled payment. The late charge shall be paid to Lender by Borrower to compensate Lender for Lender’s
              extra costs and expenses caused by the late payment.

          

     

    	

          	J.	
            Payments will be applied in the following order (i) unpaid interest accrued to the date of payment; and (ii) the unpaid principal Loan balance. At Lender’s option, any unpaid late charges, Loan fees or other sums due Lender may be
              satisfied from the payment received either (i) before the application of the payment in the foregoing manner, or (ii) after the application of the payment to the unpaid principal then due. Borrower will pay Lender at Lender’s address shown
              above or at such other place as Lender may designate in writing.

          

     

    	4.	
            DEFAULT:

          

    

    

    Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower:

     

    	

          	A.	
            Fails to do anything required by this Note and other Loan Documents;

          

     

    	

          	B.	
            Defaults on any other loan or obligation between Borrower and Lender or between Borrower and SBA;

          

     

    

    	

          	C.	
            Does not disclose, or anyone acting on Borrower’s behalf does not disclose, any material fact to Lender or SBA;

          

     

    	

          	D.	
            Makes, or anyone acting on Borrower’s behalf makes, a materially false or misleading representation to Lender or SBA;

          

     

    

    	

          	E.	
            Fails to pay any taxes when due;

          

     

    	

          	F.	
            Becomes the subject of a proceeding under any bankruptcy or insolvency law;

          

     

    

    	

          	G.	
            Has a receiver or liquidator appointed for any part of Borrower’s business or property;

          

     

    	

          	H.	
            Makes an assignment for the benefit of creditors;

          

     

    	

          	I.	
            Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower’s ability to pay this Note;

          

     

    	

          	J.	
            Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written consent; or

          

     

    	

          	K.	
            Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay this Note.

          

     

    	5.	
            LENDER’S RIGHTS IF THERE IS A DEFAULT:

          

     

    Upon default, and without giving up any of its rights, Lender may:

     

    	

          	A.	
            Require immediate payment from Borrower of all amounts owing under this Note:

          

     

    	

          	B.	
            Collect all amounts owing from Borrower; or

          

     

    

    	

          	C.	
            File suit and obtain judgment against Borrower.

          

     

    	6.	
            LENDER’S GENERAL POWERS:

          

    

    

    Upon default, Lender may:

    

    

    	

          	A.	
            Incur reasonable expenses to collect amounts due under this Note or enforce the terms of this Note or any other Loan Document, including reasonable attorneys’ fees and costs. If Lender incurs such expenses, it may demand immediate payment
              from Borrower or add the expenses to the principal balance; and

          

     

    	

          	B.	
            Release anyone obligated to pay this Note; and

          

     

    	

          	C.	
            Exercise any rights and remedies that it may have in law or equity to enforce Borrower’s obligations to Lender under this Note and with respect to this transaction.

          

     

    

    
      
        	
                Paycheck Protection Program Note

              	
                Page 2 of 4

              	
                Rev. April 2020

              

      

      
        

    

    	7.	
            WHEN FEDERAL LAW APPLIES:

          

     

    When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording
      documents, giving notice, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state
      law or deny any obligation, defeat any claim of SBA, or preempt federal law. Prior to the SBA becoming the holder, this Note will be governed by and construed in accordance with the laws of the State of New York applicable to agreements made and to
      be performed entirely with such state, without regard to its conflict of law principles.

     

    	8.	
            SUCCESSORS AND ASSIGNS:

          

     

    Under this Note, the term Borrower includes its successors, and the term Lender includes its successors and assigns.

     

    	9.	
            GENERAL PROVISIONS:

          

     

    	

          	A.	
            All individuals and entities signing this Note are jointly and severally liable.

          

     

    

    	

          	B.	
            Borrower waives all suretyship defenses and any trial by jury.

          

     

    	

          	C.	
            Borrower must sign all documents necessary at any time to comply with the Loan Documents.

          

     

    	

          	D.	
            Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any rights.

          

     

    	

          	E.	
            Lender may sell, assign or transfer this Note, and the obligations of Borrower hereunder, to any third party for any reason, without the prior written consent of Borrower. Borrower may not assign or transfer this Note without the written
              consent of Lender.

          

     

    	

          	E.	
            Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.

          

     

    	

          	F.	
            If any part of this Note is unenforceable, all other parts remain in full force and effect.

          

     

    	

          	G.	
            To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor.

          

     

    	

          	H.	
            By executing this Note, the undersigned represents and warrants they are an authorized representative of Borrower and have the authority to obtain the Loan and accept the terms of this Note on behalf of Borrower. The undersigned’s
              signature, on behalf of Borrower, constitutes the Borrower's consent to the terms and conditions of this Note and to the valid execution of this Note and no further action or approvals on behalf of Borrower pursuant to its organizational or
              formation documents shall be required in connection with the obtaining of this Loan and the execution of this Note.

          

     

    

    	

          	I.	
            Any notices required or permitted to be given hereunder shall be: ( i) personally delivered or (ii) given by registered or certified mail, postage prepaid, return receipt requested, or (iii) forwarded by overnight courier service, in each
              instance addressed to the addresses set forth at the head of this Note, or such other addresses as the parties may for themselves designate in writing as provided herein for the purpose of receiving notices hereunder. All notices shall be in
              writing and shall be deemed given, in the case of notice by personal delivery, upon actual delivery, and in the case of appropriate mail or courier service, upon deposit with the U.S. Postal Service or delivery to the courier service.

          

     

    	10.	
            LOAN FORGIVENESS:

          

    

    

    The following provisions shall apply to the Loan:

     

    	

          	A.	
            The Loan and the Borrower’s obligations for repayment of the Loan shall be strictly subject to the limited loan forgiveness provisions of Section 1106 of the CARES Act, and the SBA Interim Final Rule dated April 2, 2020 and any amendments
              thereto (the “Loan Forgiveness”).

          

     

    

    	

          	B.	
            The amount of any Loan Forgiveness under this Note shall be determined by and is strictly subject to the approval of Lender and/or the SBA. To the extent any Loan Forgiveness for amounts loaned hereunder is not granted, in whole or in
              part, for any reason, Borrower shall thereafter remain fully obligated to make any and all payments due under this Note and to fulfill any and all obligations of Borrower until satisfied in full.

          

     

    

    	

          	C.	
            Borrower shall be required to make application with Lender and/or the SBA to receive any potential Loan Forgiveness. The Borrower shall be required to submit a Loan Forgiveness application, which application must include proper supporting
              documentation verifying the number of full-time employees and the pay rates for the period described, including payroll tax filings to the IRS and applicable state, income, payroll, and unemployment insurance filings, cancelled checks,
              payment receipts, transcript of accounts, or other documents verifying payments on covered mortgage loan obligations, lease obligations and utility payments, plus any other documentation which Lender and/or the SBA deems necessary. Any
              potential Loan Forgiveness hereunder cannot occur without the Borrower’s submission of a complete Loan Forgiveness application.

          

     

    

    
      
        	
                Paycheck Protection Program Note

              	
                Page 3 of 4

              	
                Rev. April 2020

              

      

      
        

    

    
      	

            	D.	
              Borrower agrees to supply additional information or documentation requested by Lender during the term of this Note, and Borrower further agrees to cooperate fully with Lender and/or the SBA to verify eligibility for any Loan Forgiveness.

            

       

      	

            	E.	
              Lender makes no representations or promises to Borrower with respect to any Loan Forgiveness.

            

       

      	11.	
              INDEMNIFICATION:

            

       

      Borrower acknowledges and agrees that Lender is making this Loan to Borrower in order to provide relief to Borrower under the CARES Act. Borrower hereby indemnifies and holds harmless Lender from
        and against any claim, loss, liability, damage, obligations, penalty, action, judgment, cost, disbursement or expense of any kind (including, without limitation, attorneys’ fees and disbursements) that may at any time be imposed on, incurred by,
        expended by or asserted against Lender in connection with, or arising out of, or in any way related to the making of this Loan to Borrower.

       

      	12.	
              BORROWER’S NAME(S) AND SIGNATURE(S):

            

       

      Electronic acknowledgment of this Note (this “Acknowledgment”) shall be deemed to be valid execution and delivery as though an original ink or electronic signature. Borrower and Lender explicitly
        consent to the electronic delivery of the terms of the transaction evidenced by this Note and affirm that this Acknowledgement evidences Borrower’s signature and indicates a present intent to be bound by the terms of this Note. An electronic image
        of this Agreement and the Acknowledgement shall be as effective as an original for all purposes. Borrower shall be required to provide Lender with an original copy of the Note signed with a “wet” signature if requested by Lender. Failure to provide
        the original Note to Lender will delay or void any potential Loan Forgiveness.

       

      PRIOR TO SIGNING THIS NOTE, BORROWER HAS READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS NOTE. BORROWER FURTHER ACKNOWLEDGES RECEIPT OF A COPY OF THIS NOTE.

      

      

      BY SIGNING BELOW, THE UNDERSIGNED HEREBY CERTIFIES AND ATTESTS THAT THE INFORMATION CONTAINED IN THE PAYCHECK PROTECTION PROGRAM APPLICATION PROVIDED BY BORROWER IN CONNECTION
        WITH THIS LOAN AND IN ANY OTHER CERTIFICATION OR DOCUMENT PROVIDED TO THE LENDER IN CONNECTION THEREWITH ARE ACCURATE AND THAT THE BORROWER IS ACTIVE AND IN GOOD STANDING AS OF THE DATE HEREOF.

      

      

      
        BORROWER: AMERI AND PARTNERS INC

      

       

      

      
        	

              	By:	

              	

              

        	

              	Name:	
                Brent Kelton, Chief Executive Officer

              	

              
	

              	Its:	

              	

              
	

              	 

              	

              	

              

        	

              	By:	

              	

              

        	

              	Name:	
                Barry Kostiner, Chief Financial Officer

              	

              
	

              	Its:	 

              	

              

         

        

         

        

        
          
            	
                    Paycheck Protection Program Note

                  	
                    Page 4 of 4

                  	
                    Rev. April 2020

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