Document:

TRXADE
GROUP, INC.

2019
EQUITY INCENTIVE PLAN

 

TABLE
OF CONTENTS

 

	ARTICLE
    I. PREAMBLE	1
	 	 
	ARTICLE
    II. DEFINITIONS	2
	 	 
	ARTICLE
    III. ADMINISTRATION	7
	 	 
	ARTICLE
    IV. INCENTIVE STOCK OPTIONS	11
	 	 
	ARTICLE
    V. NONQUALIFIED STOCK OPTIONS	13
	 	 
	ARTICLE
    VI. INCIDENTS OF STOCK OPTIONS	14
	 	 
	ARTICLE
    VII. RESTRICTED STOCK	16
	 	 
	ARTICLE
    VIII. STOCK AWARDS	18
	 	 
	ARTICLE
    IX. PERFORMANCE SHARES	18
	 	 
	ARTICLE
    X. CHANGES OF CONTROL OR OTHER FUNDAMENTAL CHANGES	20
	 	 
	ARTICLE
    XI. AMENDMENT AND TERMINATION	21
	 	 
	ARTICLE XII. SECURITIES MATTERS AND REGULATIONS

	22
	 	 
	ARTICLE XIII. SECTION 409A OF THE CODE	23
	 	 
	ARTICLE XIV. MISCELLANEOUS PROVISIONS	23

 

    	2019 Equity Incentive Plan
Trxade Group, Inc.

    	 

    

 

TRXADE
GROUP, INC.

2019
EQUITY INCENTIVE PLAN

 

ARTICLE
I.

PREAMBLE

 

1.1.
This 2019 Equity Incentive Plan of Trxade Group, Inc. (the “Company”) is intended to secure for the
Company and its Affiliates the benefits arising from ownership of the Company’s Common Stock by the Employees, Officers,
Directors and Consultants of the Company and its Affiliates, all of whom are and will be responsible for the Company’s future
growth. The Plan is designed to help attract and retain for the Company and its Affiliates personnel of superior ability for positions
of exceptional responsibility, to reward Employees, Officers, Directors and Consultants for their services and to motivate such
individuals through added incentives to further contribute to the success of the Company and its Affiliates. With respect to persons
subject to Section 16 of the Act, transactions under this Plan are intended to satisfy the requirements of Rule 16b-3 of the Act.

 

1.2.
Awards under the Plan may be made to an Eligible Person in the form of (i) Incentive Stock Options (to Eligible Employees only);
(ii) Nonqualified Stock Options; (iii) Restricted Stock; (iv) Stock Awards; (v) Performance Shares; or (vi) any combination of
the foregoing.

 

1.3.
The Company’s Board of Directors adopted the Plan on October 92019 (the “Effective Date”). The
grant of Incentive Stock Options is subject to approval by the Company’s stockholders within twelve (12) months of the Effective
Date. Stockholder approval is to be obtained in accordance with the Company’s Certificate of Incorporation and Bylaws, each
as amended, and applicable laws. The Administrator may grant Incentive Stock Options prior to stockholder approval, but until
the Company obtains this approval, a grantee shall not exercise them. If the Company does not timely obtain stockholder approval
(or a grantee desires to exercise such Incentive Stock Options prior to stockholder approval), a grantee may exercise previously
granted Incentive Stock Options as Nonqualified Stock Options. Unless sooner terminated as provided elsewhere in this Plan, this
Plan shall terminate upon the close of business on the day next preceding the tenth (10th) anniversary of the Effective Date.
Award Agreements outstanding on such date shall continue to have force and effect in accordance with the provisions thereof.

 

1.4.
The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware (except its choice-of-law provisions).

 

1.5.
Capitalized terms shall have the meaning provided in ARTICLE II unless otherwise provided in this Plan or any related Award
Agreement.

 

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ARTICLE
II.

DEFINITIONS

 

DEFINITIONS.
Except where the context otherwise indicates, the following definitions apply:

 

2.1.
“Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended.

 

2.2.
“Administrator” means the Board or a Committee.

 

2.3.
“Affiliate” means any parent corporation or subsidiary corporation of the Company, whether now or hereinafter
existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code.

 

2.4.
“Applicable Laws” means all applicable laws, rules, regulations and requirements, including, but not
limited to, all applicable U.S. federal, state or local laws, any Stock Exchange rules or regulations and the applicable laws,
rules or regulations of any other country or jurisdiction where Awards are granted under the Plan or Participants reside or provide
services, as such laws, rules and regulations shall be in effect from time to time.

 

2.5.
“Available Shares” means 3,000,000 shares of Common Stock.

 

2.6.
“Award” means an award granted to a Participant in accordance with the provisions of the Plan, including,
but not limited to, Stock Options, Restricted Stock, Stock Awards, Performance Shares, or any combination of the foregoing.

 

2.7.
“Award Agreement” means the separate written agreement evidencing each Award granted to a Participant
under the Plan.

 

2.8.
“Board of Directors” or “Board” means the Board of Directors of the Company,
as constituted from time to time.

 

2.9.
“Bylaws” means the Company’s Bylaws as amended and restated from time to time.

 

2.10.
“Change of Control” means (i) the adoption of a plan of merger or consolidation of the Company with
any other corporation or association as a result of which the holders of the voting capital stock of the Company as a group would
receive less than 50% of the voting capital stock of the surviving or resulting corporation; (ii) the approval by the Board of
Directors of an agreement providing for the sale or transfer (other than as security for obligations of the Company) of substantially
all the assets of the Company; or (iii) in the absence of a prior expression of approval by the Board of Directors, the acquisition
of more than 20% of the Company’s voting capital stock by any person within the meaning of Rule 13d-3 under the Act (other
than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company).

 

2.11.
“Code” means the Internal Revenue Code of 1986, as amended, and the regulations and interpretations
promulgated thereunder.

 

2.12.
“Committee” means a committee of two or more members of the Board appointed by the Board in accordance
with Section 3.2 of the Plan. In the event the Company has not designated a Committee pursuant to Section 3.2 of
the Plan, “Committee” shall refer to the Compensation Committee of the Company (in the event the Compensation
Committee has authority to administer the Plan), if any, or the Board of Directors of the Company.

 

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2.13.
“Common Stock” means the Company’s common stock.

 

2.14.
“Company” means Trxade Group, Inc., a Delaware corporation.

 

2.15.
“Consultant” means any person, including an advisor engaged by the Company or an Affiliate to render
bona fide consulting or advisory services to the Company or an Affiliate, other than as an Employee, Director or Non-Employee
Director.

 

2.16.
“Continuous Service Status” means the absence of any interruption or termination of service as an Employee
or Consultant (unless otherwise provided for in the applicable Award Agreement), as determined by the Administrator in good faith
and subject to Applicable Laws. Subject to Applicable Laws, the Administrator shall determine whether a leave of absence, or absence
in military or government service, shall constitute an interruption of Continuous Service Status; provided, however, that, (i)
if an Employee is holding an Incentive Stock Option and such leave exceeds 3 months, then, for purposes of Incentive Stock Option
status only, such Employee’s service as an Employee shall be deemed terminated on the 1st day following such 3-month period,
and the Incentive Stock Option shall thereafter automatically become a Nonqualified Stock Option in accordance with Applicable
Laws, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise
pursuant to a written Company policy, and (ii) the Administrator shall not have any such discretion to the extent that the grant
of such discretion would cause any tax to become due under Section 409A of the Code. Also, Continuous Service Status as an Employee
or Consultant shall not be considered interrupted or terminated in the case of a transfer between locations of the Company or
between the Company, its subsidiaries or Affiliates, or their respective successors.

 

2.17.
“Director” means a member of the Board of Directors of the Company.

 

2.18.
“Disability” means the permanent and total disability of a person within the meaning of Section 22(e)(3)
of the Code.

 

2.19.
“Effective Date” shall be the date set forth in Section 1.3 of the Plan.

 

2.20.
“Eligible Employee” means an Eligible Person who is an Employee of the Company or any Affiliate.

 

2.21.
“Eligible Person” means any Employee, Officer, Director, Non-Employee Director or Consultant of the
Company or any Affiliate, except for instances where services are in connection with the offer or sale of securities in a capital-raising
transaction, or they directly or indirectly promote or maintain a market for the Company’s securities, subject to any other
limitations as may be provided by the Code, the Act, or the Administrator. In making such determinations, the Administrator may
take into account the nature of the services rendered by such person, his or her present and potential contribution to the Company’s
success, and such other factors as the Administrator in its discretion shall deem relevant.

 

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2.22.
“Employee” means an individual who is a common-law employee of the Company or an Affiliate including
employment as an Officer. Mere service as a Director or payment of a director’s fee by the Company or an Affiliate shall
not be sufficient to constitute “employment” by the Company or an Affiliate.

 

2.23.
“ERISA” means the Employee Retirement Income Security Act of 1974, as now in effect or as hereafter
amended.

 

2.24.
“Fair Market Value” means, as of any date and unless the Administrator determines otherwise, the value
of Common Stock determined as follows:

 

2.24.1
If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the
NYSE American, Nasdaq National Market or The Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the
closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the
day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 

2.24.2
If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported for the date in
question, or the Common Stock is quoted on an over-the-counter market, the Fair Market Value will be the mean between the high
bid and low asked prices for the Common Stock for the day of determination, as reported in The Wall Street Journal or such other
source as the Administrator deems reliable; or

 

2.24.3
In the absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.

 

2.24.4
The Administrator may also adopt a different methodology for determining Fair Market Value with respect to one or more Awards
if a different methodology is necessary or advisable to secure any intended favorable tax, legal or other treatment for the particular
Award(s) (for example, and without limitation, the Administrator may provide that Fair Market Value for purposes of one or more
Awards will be based on an average of closing prices (or the average of high and low daily trading prices) for a specified period
preceding the relevant date).

 

2.25.
“Grant Date” means, as to any Award, the latest of:

 

2.25.1
the date on which the Administrator authorizes the grant of the Award; or

 

2.25.2
the date the Participant receiving the Award becomes an Employee or a Director of the Company or its Affiliate, to the extent
employment status is a condition of the grant or a requirement of the Code or the Act; or

 

2.25.3
such other date (later than the dates described in 2.25.1 and 2.25.2 above) as the Administrator may designate and
as set forth in the Participant’s Award Agreement.

 

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2.26.
“Immediate Family” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law and shall include adoptive
relationships.

 

2.27.
“Incentive Stock Option” means a Stock Option intended to qualify as an incentive stock option within
the meaning of Section 422 of the Code and is granted under ARTICLE IV of the Plan and designated as an Incentive Stock
Option in a Participant’s Award Agreement.

 

2.28.
“Non-Employee Director” shall have the meaning set forth in Rule 16b-3 under the Act.

 

2.29.
“Nonqualified Stock Option” means a Stock Option not intended to qualify as an Incentive Stock Option
and is not so designated in the Participant’s Award Agreement.

 

2.30.
“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Act.

 

2.31.
“Option Period” means the period during which a Stock Option may be exercised from time to time, as
established by the Administrator and set forth in the Award Agreement for each Participant who is granted a Stock Option.

 

2.32.
“Option Price” means the purchase price for a share of Common Stock subject to purchase pursuant to
a Stock Option, as established by the Administrator and set forth in the Award Agreement for each Participant who is granted a
Stock Option.

 

2.33.
“Outside Director” means a Director who either (i) is not a current employee of the Company or an “affiliated
corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an “affiliated corporation” receiving compensation for prior services
(other than benefits under a tax qualified pension plan), was not an officer of the Company or an “affiliated corporation”
at any time and is not currently receiving direct or indirect remuneration from the Company or an “affiliated corporation”
for services in any capacity other than as a Director or (ii) is otherwise considered an “outside director”
for purposes of Section 162(m) of the Code.

 

2.34.
“Participant” means an Eligible Person to whom an Award has been granted and who has entered into an
Award Agreement evidencing the Award or, if applicable, such other person who holds an outstanding Award.

 

2.35.
“Performance Objectives” shall have the meaning set forth in ARTICLE IX of the Plan.

 

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2.36.
“Performance Period” shall have the meaning set forth in ARTICLE IX of the Plan.

 

2.37.
“Performance Share” means an Award under ARTICLE IX of the Plan of a unit valued by reference
to the Common Stock, the payout of which is subject to achievement of such Performance Objectives, measured during one or more
Performance Periods, as the Administrator, in its sole discretion, shall establish at the time of such Award and set forth in
a Participant’s Award Agreement.

 

2.38.
“Plan” means this Trxade Group, Inc. 2019 Equity Incentive Plan, as it may be amended from time to time.

 

2.39.
“Reporting Person” means a person required to file reports under Section 16(a) of the Act.

 

2.40.
“Restricted Stock” means an Award under ARTICLE VII of the Plan of shares of Common Stock that
are at the time of the Award subject to restrictions or limitations as to the Participant’s ability to sell, transfer, pledge
or assign such shares, which restrictions or limitations may lapse separately or in combination at such time or times, in installments
or otherwise, as the Administrator, in its sole discretion, shall determine at the time of such Award and set forth in a Participant’s
Award Agreement.

 

2.41.
“Restriction Period” means the period commencing on the Grant Date with respect to such shares of Restricted
Stock and ending on such date as the Administrator, in its sole discretion, shall establish and set forth in a Participant’s
Award Agreement.

 

2.42.
“Retirement” means retirement as determined under procedures established by the Administrator or in
any Award, as set forth in a Participant’s Award Agreement.

 

2.43.
“Rule 16b-3” means Rule 16b-3 promulgated under the Act or any successor to Rule 16b-3, as in effect
from time to time. Those provisions of the Plan which make express reference to Rule 16b-3, or which are required in order for
certain option transactions to qualify for exemption under Rule 16b-3, shall apply only to a Reporting Person.

 

2.44.
“Shares” means shares of Common Stock issued in connection with Awards granted under this Plan, including,
where applicable, upon exercise of Stock Options granted under this Plan.

 

2.45.
“Stock Exchange” means any stock exchange or consolidated stock price reporting system (including, but
not limited to Nasdaq) on which prices for the Common Stock are quoted at any given time.

 

2.46.
“Stock Award” means an Award of shares of Common Stock under ARTICLE VIII of the Plan.

 

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2.47.
“Stock Option” means an Award under ARTICLE IV or ARTICLE V of the Plan of an option to
purchase Common Stock. A Stock Option may be either an Incentive Stock Option or a Nonqualified Stock Option.

 

2.48.
“Ten Percent Stockholder” means an individual who owns (or is deemed to own pursuant to Section 424(d)
of the Code), at the time of grant, stock possessing more than ten percent (10%) of the total combined voting power of all classes
of stock of the Company or any of its Affiliates.

 

2.49.
“Termination of Service” means (i) in the case of an Eligible Employee, the discontinuance of employment
of such Participant with the Company or its Subsidiaries for any reason other than a transfer to another member of the group consisting
of the Company and its Affiliates and (ii) in the case of a Director who is not an Employee of the Company or any Affiliate, the
date such Participant ceases to serve as a Director. The determination of whether a Participant has discontinued service shall
be made by the Administrator in its sole discretion. In determining whether a Termination of Service has occurred, the Administrator
may provide that service as a Consultant or service with a business enterprise in which the Company has a significant ownership
interest shall be treated as employment with the Company.

 

ARTICLE
III.

ADMINISTRATION

 

3.1.
The Plan shall be administered by the Administrator and shall be administered, to the extent applicable, in accordance with Rule
16b-3. The Administrator shall have the exclusive right to interpret and construe the Plan, to select the Eligible Persons who
shall receive an Award, and to act in all matters pertaining to the grant of an Award and the determination and interpretation
of the provisions of the related Award Agreement, including, without limitation, the determination of the number of shares subject
to Stock Options and the Option Period(s) and Option Price(s) thereof, the number of shares of Restricted Stock or shares subject
to Stock Awards or Performance Shares subject to an Award, the vesting periods (if any) and the form, terms, conditions and duration
of each Award, and any amendment thereof consistent with the provisions of the Plan. The Administrator may adopt, establish, amend
and rescind such rules, regulations and procedures as it may deem appropriate for the proper administration of the Plan, make
all other determinations which are, in the Administrator’s judgment, necessary or desirable for the proper administration
of the Plan, amend the Plan or a Stock Award as provided in ARTICLE XI, and terminate or suspend the Plan as provided in
ARTICLE XI. All acts, determinations and decisions of the Administrator made or taken pursuant to the Plan or with respect
to any questions arising in connection with the administration and interpretation of the Plan or any Award Agreement, including
the severability of any and all of the provisions thereof, shall be conclusive, final and binding upon all persons. On or after
the date of grant of an Award under the Plan, the Administrator may (i) accelerate the date on which any such Award becomes vested,
exercisable or transferable, as the case may be, (ii) extend the term of any such Award, including, without limitation, extending
the period following a termination of a Participant’s employment during which any such Award may remain outstanding, or
(iii) waive any conditions to the vesting, exercisability or transferability, as the case may be, of any such Award; provided,
that the Administrator shall not have any such authority to the extent that the grant of such authority would cause any tax to
become due under Section 409A of the Code.

 

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3.2.
The Administrator may, to the full extent permitted by and consistent with Applicable Law and the Company’s Bylaws, and
subject to Subparagraph 3.2.1 herein below, delegate any or all of its powers with respect to the administration of the
Plan to the Company’s Compensation Committee or another Committee of the Company consisting of not fewer than two members
of the Board each of whom shall qualify (at the time of appointment to the Committee and during all periods of service on the
Committee) in all respects as a Non-Employee Director and as an Outside Director.

 

3.2.1
If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the
powers theretofore possessed by the Administrator as set forth herein, including the power to delegate to a subcommittee any of
the administrative powers the Committee is authorized to exercise (and references in the Plan to the Administrator shall thereafter
be to the Committee or subcommittee), subject, however, to such resolutions, not consistent with the provisions of the Plan, as
may be adopted from time to time by the Board.

 

3.2.2
The Board may abolish the Committee at any time and reassume all powers and authority previously delegated to the Committee.

 

3.2.3
In addition to, and not in limitation of, the right of Administrator, the full Board of Directors and/or the Company’s Compensation
Committee may from time to time grant Awards to Eligible Persons pursuant to the terms and conditions of this Plan, subject to
the requirements of the Code, Rule 16b-3 under the Act or any other Applicable Law, rule or regulation. In connection with any
such grants, the Board of Directors and/or the Company’s Compensation Committee shall have all of the power and authority
of the Administrator to determine the Eligible Persons to whom such Awards shall be granted and the other terms and conditions
of such Awards.

 

3.3.
Without limiting the provisions of this ARTICLE III, and subject to the provisions of ARTICLE X, the Administrator
is authorized to take such action as it determines to be necessary or advisable, and fair and equitable to Participants and to
the Company, with respect to an outstanding Award in the event of a Change of Control as described in ARTICLE X or other
similar event. Such action may include, but shall not be limited to, establishing, amending or waiving the form, terms, conditions
and duration of an Award and the related Award Agreement, so as to provide for earlier, later, extended or additional times for
exercise or payments, differing methods for calculating payments, alternate forms and amounts of payment, an accelerated release
of restrictions or other modifications. The Administrator may take such actions pursuant to this Section 3.3 by adopting
rules and regulations of general applicability to all Participants or to certain categories of Participants, by including, amending
or waiving terms and conditions in an Award and the related Award Agreement, or by taking action with respect to individual Participants
from time to time. In the event any Award is not evidenced by a written Award Agreement, such Award shall be governed by the terms
of this Plan and the terms and conditions of the grant of the Award as evidenced by the minutes of the Board (or any authorized
Committee thereof). For the sake of clarity, the failure of the Company to document an Award by way of a written Award Agreement
shall not affect the validity of such Award.

 

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3.4.
Subject to the provisions of Section 3.8 and this Section 3.4, the maximum aggregate number of shares of Common
Stock which may be issued pursuant to Awards under the Plan shall be the Available Shares. Such shares of Common Stock shall be
made available from authorized and unissued shares of the Company.

 

3.4.1
For all purposes under the Plan, each Performance Share awarded shall be counted as one share of Common Stock subject to an Award.

 

3.4.2
If, for any reason, any shares of Common Stock (including shares of Common Stock subject to Performance Shares) that have been
awarded or are subject to issuance or purchase pursuant to Awards outstanding under the Plan are not delivered or purchased, or
are reacquired by the Company, for any reason, including but not limited to a forfeiture of Restricted Stock or failure to earn
Performance Shares or the termination, expiration or cancellation of a Stock Option, or any other termination of an Award without
payment being made in the form of shares of Common Stock (whether or not Restricted Stock), such shares of Common Stock shall
not be charged against the aggregate number of shares of Common Stock available for Award under the Plan and shall again be available
for Awards under the Plan. In no event, however, may Common Stock that is surrendered or withheld to pay the exercise price of
a Stock Option or to satisfy tax withholding requirements be available for future grants under the Plan.

 

3.4.3
For purposes of clarifying the preceding paragraph, shares of Common Stock covered by Awards shall only be counted as used to
the extent they are actually issued and delivered to a Participant (or such Participant’s permitted transferees as described
in the Plan) pursuant to the Plan. In addition, shares of Common Stock related to Awards that expire, are forfeited or cancelled
or terminate for any reason without the issuance of shares shall not be treated as issued pursuant to the Plan.

 

3.4.4
The foregoing subsections 3.4.1 and 3.4.2 of this Section 3.4 shall be subject to any limitations provided
by the Code or by Rule 16b-3 under the Act or by any other Applicable Law, rule or regulation.

 

3.5.
Each Award granted under the Plan shall be evidenced by a written Award Agreement, which shall be subject to and shall incorporate
(by reference or otherwise) the applicable terms and conditions of the Plan and shall include any other terms and conditions (not
inconsistent with the Plan) required by the Administrator. In the event any Award is not evidenced by a written Award Agreement,
such Award shall be governed by the terms of this Plan and the terms and conditions of the grant of the Award as evidenced by
the minutes of the Administrator (or any authorized Committee thereof). For the sake of clarity, the failure of the Company to
document an Award by way of a written Award Agreement shall not affect the validity of such Award.

 

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3.5.1
In the event the Plan and/or the Common Stock issuable in connection with Awards hereunder are registered with the Securities
Exchange Commission (the “SEC”) under the Act, no free-trading shares of Common Stock shall be issuable
by the Company under the Plan and pursuant to such registration statement, (a) except to natural persons (as such term is interpreted
by the SEC); (b) in connection with services associated with the offer or sale of securities in a capital-raising transaction;
or (c) where the services directly or indirectly promote or maintain a market for the Company’s securities.

 

3.6.
The Administrator may require any Participant acquiring shares of Common Stock pursuant to any Award under the Plan to represent
to and agree with the Company in writing that such person is acquiring the shares of Common Stock for investment purposes and
without a view to resale or distribution thereof. Shares of Common Stock issued and delivered under the Plan shall also be subject
to such stop-transfer orders and other restrictions as the Administrator may deem advisable under the rules, regulations and other
requirements of the Securities and Exchange Commission, any Stock Exchange upon which the Common Stock is then listed and any
applicable federal or state laws, and the Administrator may cause a legend or legends to be placed on the certificate or certificates
representing any such shares to make appropriate reference to any such restrictions. In making such determination, the Administrator
may rely upon an opinion of counsel for the Company.

 

3.7.
Except as otherwise expressly provided in the Plan or in an Award Agreement with respect to an Award, no Participant shall have
any right as a stockholder of the Company with respect to any shares of Common Stock subject to such Participant’s Award
except to the extent that, and until, one or more certificates representing such shares of Common Stock shall have been delivered
to the Participant. No shares shall be required to be issued, and no certificates shall be required to be delivered, under the
Plan unless and until all of the terms and conditions applicable to such Award shall have, in the sole discretion of the Administrator,
been satisfied in full and any restrictions shall have lapsed in full, and unless and until all of the requirements of law and
of all regulatory bodies having jurisdiction over the offer and sale, or issuance and delivery, of the shares shall have been
fully complied with.

 

3.8.
The total amount of shares with respect to which Awards may be granted under the Plan and rights of outstanding Awards (both as
to the number of shares subject to the outstanding Awards and the Option Price(s) or other purchase price(s) of such shares, as
applicable) shall be appropriately adjusted for any increase or decrease in the number of outstanding shares of Common Stock of
the Company resulting from payment of a stock dividend on the Common Stock, a stock split or subdivision or combination of shares
of the Common Stock, or a reorganization or reclassification of the Common Stock, or any other change in the structure of shares
of the Common Stock. The foregoing adjustments and the manner of application of the foregoing provisions shall be determined by
the Administrator in its sole discretion. Any such adjustment may provide for the elimination of any fractional shares which might
otherwise become subject to an Award. All adjustments made as a result of the foregoing in respect of each Incentive Stock Option
shall be made so that such Incentive Stock Option shall continue to be an Incentive Stock Option, as defined in Section 422 of
the Code.

 

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3.9.
No director or person acting pursuant to authority delegated by the Administrator shall be liable for any action or determination
under the Plan made in good faith. The members of the Administrator shall be entitled to indemnification by the Company in the
manner and to the extent set forth in the Company’s Articles of Incorporation, as amended, Bylaws or as otherwise provided
from time to time regarding indemnification of Directors.

 

3.10.
The Administrator shall be authorized to make adjustments in any performance based criteria or in the other terms and conditions
of outstanding Awards in recognition of unusual or nonrecurring events affecting the Company (or any Affiliate, if applicable)
or its financial statements or changes in Applicable Laws, regulations or accounting principles. The Administrator may correct
any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement in the manner and to the extent
it shall deem necessary or desirable to reflect any such adjustment. In the event the Company (or any Affiliate, if applicable)
shall assume outstanding employee benefit awards or the right or obligation to make future such awards in connection with the
acquisition of another corporation or business entity, the Administrator may, in its sole discretion, make such adjustments in
the terms of outstanding Awards under the Plan as it shall deem appropriate.

 

3.11.
Subject to the express provisions of the Plan, the Administrator shall have full power and authority to determine whether, to
what extent and under what circumstances any outstanding Award shall be terminated, canceled, forfeited or suspended. Notwithstanding
the foregoing or any other provision of the Plan or an Award Agreement, all Awards to any Participant that are subject to any
restriction or have not been earned or exercised in full by the Participant shall be terminated and canceled if the Participant
is terminated for cause, as determined by the Administrator in its sole discretion.

 

ARTICLE
IV.

INCENTIVE STOCK OPTIONS

 

4.1.
The Administrator, in its sole discretion, may from time to time on or after the Effective Date grant Incentive Stock Options
to Eligible Employees, subject to the provisions of this ARTICLE IV and ARTICLE III and ARTICLE VI and subject
to the following conditions:

 

4.1.1
Incentive Stock Options shall be granted only to Eligible Employees, each of whom may be granted one or more of such Incentive
Stock Options at such time or times determined by the Administrator.

 

4.1.2
The Option Price per share of Common Stock for an Incentive Stock Option shall be set in the Award Agreement, but shall not be
less than (i) one hundred percent (100%) of the Fair Market Value of the Common Stock at the Grant Date, or (ii) in the case of
an Incentive Stock Option granted to a Ten Percent Stockholder, one hundred ten percent (110%) of the Fair Market Value of the
Common Stock at the Grant Date.

 

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4.1.3
An Incentive Stock Option may be exercised in full or in part from time to time within ten (10) years from the Grant Date, or
such shorter period as may be specified by the Administrator as the Option Period and set forth in the Award Agreement; provided,
however, that, in the case of an Incentive Stock Option granted to a Ten Percent Stockholder, such period shall not exceed five
(5) years from the Grant Date; and further, provided that, in any event, the Incentive Stock Option shall lapse and cease to be
exercisable upon a Termination of Service or within such period following a Termination of Service as shall have been determined
by the Administrator and set forth in the related Award Agreement; and provided, further, that such period shall not exceed the
period of time ending on the date three (3) months following a Termination of Service (except as otherwise provided in any employment
agreement approved by the Administrator), unless employment shall have terminated:

 

(i)
as a result of Disability, in which event such period shall not exceed the period of time ending on the date twelve (12) months
following a Termination of Service; or

 

(ii)
as a result of death, or if death shall have occurred following a Termination of Service (other than as a result of Disability)
and during the period that the Incentive Stock Option was still exercisable, in which event such period may not exceed the period
of time ending on the earlier of the date twelve (12) months after the date of death;

 

(iii)
and provided, further, that such period following a Termination of Service or death shall in no event extend beyond the original
Option Period of the Incentive Stock Option.

 

4.1.4
The aggregate Fair Market Value of the shares of Common Stock with respect to which any Incentive Stock Options (whether under
this Plan or any other plan established by the Company) are first exercisable during any calendar year by any Eligible Employee
shall not exceed one hundred thousand dollars ($100,000), determined based on the Fair Market Value(s) of such shares as of their
respective Grant Dates; provided, however, that to the extent permitted under Section 422 of the Code, if the aggregate Fair Market
Values of the shares of Common Stock with respect to which Stock Options intended to be Incentive Stock Options are first exercisable
by any Eligible Employee during any calendar year (whether such Stock Options are granted under this Plan or any other plan established
by the Company) exceed one hundred thousand dollars ($100,000), the Stock Options or portions thereof which exceed such limit
(according to the order in which they were granted) shall be treated as Nonqualified Stock Options.

 

4.1.5
No Incentive Stock Options may be granted more than ten (10) years from the Effective Date.

 

4.1.6
The Award Agreement for each Incentive Stock Option shall provide that the Participant shall notify the Company if such Participant
sells or otherwise transfers any shares of Common Stock acquired upon exercise of the Incentive Stock Option within two (2) years
of the Grant Date of such Incentive Stock Option or within one (1) year of the date such shares were acquired upon the exercise
of such Incentive Stock Option.

 

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4.2.
Subject to the limitations of Section 3.4, the maximum aggregate number of shares of Common Stock subject to Incentive
Stock Option Awards shall be the maximum aggregate number of shares available for Awards under the Plan.

 

4.3.
The Administrator may provide for any other terms and conditions which it determines should be imposed for an Incentive Stock
Option to qualify under Section 422 of the Code, as well as any other terms and conditions not inconsistent with this ARTICLE
IV or ARTICLE III or ARTICLE VI, as determined in its sole discretion and set forth in the Award Agreement for
such Incentive Stock Option.

 

4.4.
Each provision of this ARTICLE IV and of each Incentive Stock Option granted hereunder shall be construed in accordance
with the provisions of Section 422 of the Code, and any provision hereof that cannot be so construed shall be disregarded.

 

ARTICLE
V.

NONQUALIFIED STOCK OPTIONS

 

5.1.
The Administrator, in its sole discretion, may from time to time on or after the Effective Date grant Nonqualified Stock Options
to Eligible Persons, subject to the provisions of this ARTICLE V and ARTICLE III or ARTICLE VI and subject
to the following conditions:

 

5.1.1
Nonqualified Stock Options may be granted to any Eligible Person, each of whom may be granted one or more of such Nonqualified
Stock Options, at such time or times determined by the Administrator.

 

5.1.2
The Option Price per share of Common Stock for a Nonqualified Stock Option shall be set in the Award Agreement and may be less
than one hundred percent (100%) of the Fair Market Value of the Common Stock at the Grant Date; provided, however, that the exercise
price of each Nonqualified Stock Option granted under the Plan shall in no event be less than the par value per share of the Company’s
Common Stock.

 

5.1.3
A Nonqualified Stock Option may be exercised in full or in part from time to time within the Option Period specified by the Administrator
and set forth in the Award Agreement; provided, however, that, in any event, the Nonqualified Stock Option shall lapse and cease
to be exercisable upon a Termination of Service or within such period following a Termination of Service as shall have been determined
by the Administrator and set forth in the related Award Agreement.

 

5.2.
The Administrator may provide for any other terms and conditions for a Nonqualified Stock Option not inconsistent with this ARTICLE
V or ARTICLE III or ARTICLE VI, as determined in its sole discretion and set forth in the Award Agreement for
such Nonqualified Stock Option.

 

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ARTICLE
VI.

INCIDENTS OF STOCK OPTIONS

 

6.1.
Each Stock Option shall be granted subject to such terms and conditions, if any, not inconsistent with this Plan, as shall be
determined by the Administrator and set forth in the related Award Agreement, including any provisions as to continued employment
as consideration for the grant or exercise of such Stock Option and any provisions which may be advisable to comply with Applicable
Laws, regulations or rulings of any governmental authority.

 

6.2.
Except as hereinafter described, a Stock Option shall not be transferable by the Participant other than by will or by the laws
of descent and distribution, and shall be exercisable during the lifetime of the Participant only by the Participant or the Participant’s
guardian or legal representative. In the event of the death of a Participant, any unexercised Stock Options may be exercised to
the extent otherwise provided herein or in such Participant’s Award Agreement by the executor or personal representative
of such Participant’s estate or by any person who acquired the right to exercise such Stock Options by bequest under the
Participant’s will or by inheritance. The Administrator, in its sole discretion, may at any time permit a Participant to
transfer a Nonqualified Stock Option for no consideration to or for the benefit of one or more members of the Participant’s
Immediate Family (including, without limitation, to a trust for the benefit of the Participant and/or one or more members of such
Participant’s Immediate Family or a corporation, partnership or limited liability company established and controlled by
the Participant and/or one or more members of such Participant’s Immediate Family), subject to such limits as the Administrator
may establish. The transferee of such Nonqualified Stock Option shall remain subject to all terms and conditions applicable to
such Nonqualified Stock Option prior to such transfer. The foregoing right to transfer the Nonqualified Stock Option, if granted
by the Administrator shall apply to the right to consent to amendments to the Award Agreement.

 

6.3.
Shares of Common Stock purchased upon exercise of a Stock Option shall be paid for in such amounts, at such times and upon such
terms as shall be determined by the Administrator, subject to limitations set forth in the Stock Option Award Agreement. The Administrator
may, in its sole discretion, permit the exercise of a Stock Option by payment in cash or by tendering shares of Common Stock (either
by actual delivery of such shares or by attestation), or any combination thereof, as determined by the Administrator. In the sole
discretion of the Administrator, payment in shares of Common Stock also may be made with shares received upon the exercise or
partial exercise of the Stock Option, whether or not involving a series of exercises or partial exercises and whether or not share
certificates for such shares surrendered have been delivered to the Participant. The Administrator also may, in its sole discretion,
permit the payment of the exercise price of a Stock Option by the voluntary surrender of all or a portion of the Stock Option.
Shares of Common Stock previously held by the Participant and surrendered in payment of the Option Price of a Stock Option shall
be valued for such purpose at the Fair Market Value thereof on the date the Stock Option is exercised.

 

6.4.
The holder of a Stock Option shall have no rights as a stockholder with respect to any shares covered by the Stock Option (including,
without limitation, any voting rights, the right to inspect or receive the Company’s balance sheets or financial statements
or any rights to receive dividends or non-cash distributions with respect to such shares) until such time as the holder has exercised
the Stock Option and then only with respect to the number of shares which are the subject of the exercise. No adjustment shall
be made for dividends or other rights for which the record date is prior to the date such stock certificate is issued.

 

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6.5.
The Administrator may permit the voluntary surrender of all or a portion of any Stock Option granted under the Plan to be conditioned
upon the granting to the Participant of a new Stock Option for the same or a different number of shares of Common Stock as the
Stock Option surrendered, or may require such voluntary surrender as a condition precedent to a grant of a new Stock Option to
such Participant. Subject to the provisions of the Plan, such new Stock Option shall be exercisable at such Option Price, during
such Option Period and on such other terms and conditions as are specified by the Administrator at the time the new Stock Option
is granted. Upon surrender, the Stock Options surrendered shall be canceled and the shares of Common Stock previously subject
to them shall be available for the grant of other Stock Options.

 

6.6.
The Administrator may at any time offer to purchase a Participant’s outstanding Stock Option for a payment equal to the
value of such Stock Option payable in cash, shares of Common Stock or Restricted Stock or other property upon surrender of the
Participant’s Stock Option, based on such terms and conditions as the Administrator shall establish and communicate to the
Participant at the time that such offer is made.

 

6.7.
The Administrator shall have the discretion, exercisable either at the time the Award is granted or at the time the Participant
discontinues employment, to establish as a provision applicable to the exercise of one or more Stock Options that, during a limited
period of exercisability following a Termination of Service, the Stock Option may be exercised not only with respect to the number
of shares of Common Stock for which it is exercisable at the time of the Termination of Service but also with respect to one or
more subsequent installments for which the Stock Option would have become exercisable had the Termination of Service not occurred.

 

6.8.
Notwithstanding anything to the contrary herein, the Company may reprice any Stock Option without the approval of the stockholders
of the Company. For this purpose, “reprice” means (i) any of the following or any other action that has the same effect:
(A) lowering the exercise price of a Stock Option after it is granted, (B) any other action that is treated as a repricing under
U.S. generally accepted accounting principles (“GAAP”), or (C) cancelling a Stock Option at a time when
its exercise price exceeds the Fair Market Value of the underlying Common Stock, in exchange for another Stock Option, restricted
stock or other equity, unless the cancellation and exchange occurs in connection with a merger, acquisition, spin-off or other
similar corporate transaction; and (ii) any other action that is considered to be a repricing under formal or informal guidance
issued by exchange or market on which the Company’s Common Stock then trades or is quoted.

 

6.9.
In addition to, and without limiting the above Section 6.8, the Administrator may permit the voluntary surrender of all
or a portion of any Stock Option granted under the Plan to be conditioned upon the granting to the Participant of a new Stock
Option for the same or a different number of shares of Common Stock as the Stock Option surrendered, or may require such voluntary
surrender as a condition precedent to a grant of a new Stock Option to such Participant. Subject to the provisions of the Plan,
such new Stock Option shall be exercisable at such Option Price, during such Option Period and on such other terms and conditions
as are specified by the Administrator at the time the new Stock Option is granted. Upon surrender, the Stock Options surrendered
shall be canceled and the shares of Common Stock previously subject to them shall be available for the grant of other Stock Options.

 

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ARTICLE
VII.

RESTRICTED STOCK

 

7.1.
The Administrator, in its sole discretion, may from time to time on or after the Effective Date award shares of Restricted Stock
to Eligible Persons as a reward for past service and an incentive for the performance of future services that will contribute
materially to the successful operation of the Company and its Affiliates, subject to the terms and conditions set forth in this
ARTICLE VII.

 

7.2.
The Administrator shall determine the terms and conditions of any Award of Restricted Stock, which shall be set forth in the related
Award Agreement, including without limitation:

 

7.2.1
the purchase price, if any, to be paid for such Restricted Stock, which may be zero, subject to such minimum consideration as
may be required by Applicable Law;

 

7.2.2
the duration of the Restriction Period or Restriction Periods with respect to such Restricted Stock and whether any events may
accelerate or delay the end of such Restriction Period(s);

 

7.2.3
the circumstances upon which the restrictions or limitations shall lapse, and whether such restrictions or limitations shall lapse
as to all shares of Restricted Stock at the end of the Restriction Period or as to a portion of the shares of Restricted Stock
in installments during the Restriction Period by means of one or more vesting schedules;

 

7.2.4
whether such Restricted Stock is subject to repurchase by the Company or to a right of first refusal at a predetermined price
or if the Restricted Stock may be forfeited entirely under certain conditions;

 

7.2.5
whether any performance goals may apply to a Restriction Period to shorten or lengthen such period; and

 

7.2.6
whether dividends and other distributions with respect to such Restricted Stock are to be paid currently to the Participant or
withheld by the Company for the account of the Participant.

 

7.3.
Awards of Restricted Stock must be accepted within a period of thirty (30) days after the Grant Date (or such shorter or longer
period as the Administrator may specify at such time) by executing an Award Agreement with respect to such Restricted Stock and
tendering the purchase price, if any. A prospective recipient of an Award of Restricted Stock shall not have any rights with respect
to such Award, unless such recipient has executed an Award Agreement with respect to such Restricted Stock, has delivered a fully
executed copy thereof to the Administrator and has otherwise complied with the applicable terms and conditions of such Award.

 

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7.4.
In the sole discretion of the Administrator and as set forth in the Award Agreement for an Award of Restricted Stock, all shares
of Restricted Stock held by a Participant and still subject to restrictions shall be forfeited by the Participant upon the Participant’s
Termination of Service and shall be reacquired, canceled and retired by the Company. Notwithstanding the foregoing, unless otherwise
provided in an Award Agreement with respect to an Award of Restricted Stock, in the event of the death, Disability or Retirement
of a Participant during the Restriction Period, or in other cases of special circumstances (including hardship or other special
circumstances of a Participant whose employment is involuntarily terminated), the Administrator may elect to waive in whole or
in part any remaining restrictions with respect to all or any part of such Participant’s Restricted Stock, if it finds that
a waiver would be appropriate.

 

7.5.
Except as otherwise provided in this ARTICLE VII, no shares of Restricted Stock received by a Participant shall be sold,
exchanged, transferred, pledged, hypothecated or otherwise disposed of during the Restriction Period.

 

7.6.
Upon an Award of Restricted Stock to a Participant, a certificate or certificates representing the shares of such Restricted Stock
will be issued to and registered in the name of the Participant. Unless otherwise determined by the Administrator, such certificate
or certificates will be held in custody by the Company until (i) the Restriction Period expires and the restrictions or limitations
lapse, in which case one or more certificates representing such shares of Restricted Stock that do not bear a restrictive legend
(other than any legend as required under applicable federal or state securities laws) shall be delivered to the Participant, or
(ii) a prior forfeiture by the Participant of the shares of Restricted Stock subject to such Restriction Period, in which case
the Company shall cause such certificate or certificates to be canceled and the shares represented thereby to be retired, all
as set forth in the Participant’s Award Agreement. It shall be a condition of an Award of Restricted Stock that the Participant
deliver to the Company a stock power endorsed in blank relating to the shares of Restricted Stock to be held in custody by the
Company.

 

7.7.
Except as provided in this ARTICLE VII or in the related Award Agreement, a Participant receiving an Award of shares of
Restricted Stock Award shall have, with respect to such shares, all rights of a stockholder of the Company, including the right
to vote the shares and the right to receive any distributions, unless and until such shares are otherwise forfeited by such Participant;
provided, however, the Administrator may require that any cash dividends with respect to such shares of Restricted Stock be automatically
reinvested in additional shares of Restricted Stock subject to the same restrictions as the underlying Award, or may require that
cash dividends and other distributions on Restricted Stock be withheld by the Company or its Affiliates for the account of the
Participant. The Administrator shall determine whether interest shall be paid on amounts withheld, the rate of any such interest,
and the other terms applicable to such withheld amounts.

 

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ARTICLE
VIII.

STOCK AWARDS

 

8.1.
The Administrator, in its sole discretion, may from time to time on or after the Effective Date grant Stock Awards to Eligible
Persons in payment of compensation that has been earned or as compensation to be earned, including without limitation compensation
awarded or earned concurrently with or prior to the grant of the Stock Award, subject to the terms and conditions set forth in
this ARTICLE VIII.

 

8.2.
For the purposes of this Plan, in determining the value of a Stock Award, all shares of Common Stock subject to such Stock Award
shall be set in the Award Agreement and may be less than one hundred percent (100%) of the Fair Market Value of the Common Stock
at the Grant Date.

 

8.3.
Unless otherwise determined by the Administrator and set forth in the related Award Agreement, shares of Common Stock subject
to a Stock Award will be issued, and one or more certificates representing such shares will be delivered, to the Participant as
soon as practicable following the Grant Date of such Stock Award. Upon the issuance of such shares and the delivery of one or
more certificates representing such shares to the Participant, such Participant shall be and become a stockholder of the Company
fully entitled to receive dividends, to vote and to exercise all other rights of a stockholder of the Company. Notwithstanding
any other provision of this Plan, unless the Administrator expressly provides otherwise with respect to a Stock Award, as set
forth in the related Award Agreement, no Stock Award shall be deemed to be an outstanding Award for purposes of the Plan.

 

ARTICLE
IX.

PERFORMANCE SHARES

 

9.1.
The Administrator, in its sole discretion, may from time to time on or after the Effective Date award Performance Shares to Eligible
Persons as an incentive for the performance of future services that will contribute materially to the successful operation of
the Company and its Affiliates, subject to the terms and conditions set forth in this ARTICLE IX.

 

9.2.
The Administrator shall determine the terms and conditions of any Award of Performance Shares, which shall be set forth in the
related Award Agreement, including without limitation:

 

9.2.1
the purchase price, if any, to be paid for such Performance Shares, which may be zero, subject to such minimum consideration as
may be required by Applicable Law;

 

9.2.2
the performance period (the “Performance Period”) and/or performance objectives (the “Performance
Objectives”) applicable to such Awards;

 

9.2.3
the number of Performance Shares that shall be paid to the Participant if the applicable Performance Objectives are exceeded or
met in whole or in part; and

 

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9.2.4
the form of settlement of a Performance Share.

 

9.3.
At any date, each Performance Share shall have a value equal to the Fair Market Value of a share of Common Stock.

 

9.4.
Performance Periods may overlap, and Participants may participate simultaneously with respect to Performance Shares for which
different Performance Periods are prescribed.

 

9.5.
Performance Objectives may vary from Participant to Participant and between Awards and shall be based upon such performance criteria
or combination of factors as the Administrator may deem appropriate, including, but not limited to, minimum earnings per share
or return on equity. If during the course of a Performance Period there shall occur significant events which the Administrator
expects to have a substantial effect on the applicable Performance Objectives during such period, the Administrator may revise
such Performance Objectives.

 

9.6.
In the sole discretion of the Administrator and as set forth in the Award Agreement for an Award of Performance Shares, all Performance
Shares held by a Participant and not earned shall be forfeited by the Participant upon the Participant’s Termination of
Service. Notwithstanding the foregoing, unless otherwise provided in an Award Agreement with respect to an Award of Performance
Shares, in the event of the death, Disability or Retirement of a Participant during the applicable Performance Period, or in other
cases of special circumstances (including hardship or other special circumstances of a Participant whose employment is involuntarily
terminated), the Administrator may determine to make a payment in settlement of such Performance Shares at the end of the Performance
Period, based upon the extent to which the Performance Objectives were satisfied at the end of such period and pro-rated for the
portion of the Performance Period during which the Participant was employed by the Company or an Affiliate; provided, however,
that the Administrator may provide for an earlier payment in settlement of such Performance Shares in such amount and under such
terms and conditions as the Administrator deems appropriate or desirable.

 

9.7.
The settlement of a Performance Share shall be made in cash, whole shares of Common Stock or a combination thereof and shall be
made as soon as practicable after the end of the applicable Performance Period. Notwithstanding the foregoing, the Administrator
in its sole discretion may allow a Participant to defer payment in settlement of Performance Shares on terms and conditions approved
by the Administrator and set forth in the related Award Agreement entered into in advance of the time of receipt or constructive
receipt of payment by the Participant.

 

9.8.
Performance Shares shall not be transferable by the Participant. The Administrator shall have the authority to place additional
restrictions on the Performance Shares including, but not limited to, restrictions on transfer of any shares of Common Stock that
are delivered to a Participant in settlement of any Performance Shares.

 

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ARTICLE
X.

CHANGES OF CONTROL OR OTHER FUNDAMENTAL CHANGES

 

10.1.
Upon the occurrence of a Change of Control and unless otherwise provided in the Award Agreement with respect to a particular Award:

 

10.1.1
all outstanding Stock Options shall become immediately exercisable in full, subject to any appropriate adjustments in the number
of shares subject to the Stock Option and the Option Price, and shall remain exercisable for the remaining Option Period, regardless
of any provision in the related Award Agreement limiting the exercisability of such Stock Option or any portion thereof for any
length of time;

 

10.1.2
all outstanding Performance Shares with respect to which the applicable Performance Period has not been completed shall be paid
out as soon as practicable as follows:

 

(i)
all Performance Objectives applicable to the Award of Performance Shares shall be deemed to have been satisfied to the extent
necessary to earn one hundred percent (100%) of the Performance Shares covered by the Award;

 

(ii)
the applicable Performance Period shall be deemed to have been completed upon occurrence of the Change of Control;

 

(iii)
the payment to the Participant in settlement of the Performance Shares shall be the amount determined by the Administrator, in
its sole discretion, or in the manner stated in the Award Agreement, as multiplied by a fraction, the numerator of which is the
number of full calendar months of the applicable Performance Period that have elapsed prior to occurrence of the Change of Control,
and the denominator of which is the total number of months in the original Performance Period; and

 

(iv)
upon the making of any such payment, the Award Agreement as to which it relates shall be deemed terminated and of no further force
and effect; and

 

10.1.3
all outstanding shares of Restricted Stock with respect to which the restrictions have not lapsed shall be deemed vested, and
all such restrictions shall be deemed lapsed and the Restriction Period ended.

 

10.2.
Anything contained herein to the contrary notwithstanding, upon the dissolution or liquidation of the Company, each Award granted
under the Plan and then outstanding shall terminate; provided, however, that following the adoption of a plan of dissolution or
liquidation, and in any event prior to the effective date of such dissolution or liquidation, each such outstanding Award granted
hereunder shall be exercisable in full and all restrictions shall lapse, to the extent set forth in Section 10.1.1, 10.1.2
and 10.1.3 above.

 

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10.3.
After the merger of one or more corporations into the Company or any Affiliate, any merger of the Company into another corporation,
any consolidation of the Company or any Affiliate of the Company and one or more corporations, or any other corporate reorganization
of any form involving the Company as a party thereto and involving any exchange, conversion, adjustment or other modification
of the outstanding shares of the Common Stock, each Participant shall, at no additional cost, be entitled, upon any exercise of
such Participant’s Stock Option, to receive, in lieu of the number of shares as to which such Stock Option shall then be
so exercised, the number and class of shares of stock or other securities or such other property to which such Participant would
have been entitled to pursuant to the terms of the agreement of merger or consolidation or reorganization, if at the time of such
merger or consolidation or reorganization, such Participant had been a holder of record of a number of shares of Common Stock
equal to the number of shares as to which such Stock Option shall then be so exercised. Comparable rights shall accrue to each
Participant in the event of successive mergers, consolidations or reorganizations of the character described above. The Administrator
may, in its sole discretion, provide for similar adjustments upon the occurrence of such events with regard to other outstanding
Awards under this Plan. The foregoing adjustments and the manner of application of the foregoing provisions shall be determined
by the Administrator in its sole discretion. Any such adjustment may provide for the elimination of any fractional shares which
might otherwise become subject to an Award. All adjustments made as the result of the foregoing in respect of each Incentive Stock
Option shall be made so that such Incentive Stock Option shall continue to be an Incentive Stock Option, as defined in Section
422 of the Code.

 

ARTICLE
XI.

AMENDMENT AND TERMINATION

 

11.1.
Subject to the provisions of Section 11.2, the Board of Directors at any time and from time to time may amend or terminate
the Plan as may be necessary or desirable to implement or discontinue the Plan or any provision hereof, to the extent required
by the Act or the Code, or rules and regulations of the Stock Exchange and/or such other securities exchanges, if any, which the
Company’s Common Stock is then subject to, however, no amendment, without approval by the Company’s stockholders,
shall:

 

11.1.1
materially alter the group of persons eligible to participate in the Plan;

 

11.1.2
except as provided in Section 3.4, change the maximum aggregate number of shares of Common Stock that are available for
Awards under the Plan; or

 

11.1.3
alter the class of individuals eligible to receive an Incentive Stock Option or increase the limit on Incentive Stock Options
set forth in Section 4.1.4 or the value of shares of Common Stock for which an Eligible Employee may be granted an Incentive
Stock Option.

 

11.2.
No amendment to or discontinuance of the Plan or any provision hereof by the Board of Directors or the stockholders of the Company
shall, without the written consent of the Participant, adversely affect (in the sole discretion of the Administrator) any Award
theretofore granted to such Participant under this Plan; provided, however, that the Administrator retains the right and power
to:

 

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11.2.1
annul any Award if the Participant is terminated for cause as determined by the Administrator; and

 

11.2.2
convert any outstanding Incentive Stock Option to a Nonqualified Stock Option.

 

11.3.
If a Change of Control has occurred, no amendment or termination shall impair the rights of any person with respect to an outstanding
Award as provided in ARTICLE X.

 

ARTICLE
XII.

SECURITIES MATTERS AND REGULATIONS

 

12.1.
Notwithstanding anything herein to the contrary, the obligation of the Company to sell or deliver Shares with respect to any Award
granted under the Plan shall be subject to all Applicable Laws, rules and regulations, including all applicable federal and state
securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by
the Administrator. The Administrator may require, as a condition of the issuance and delivery of certificates evidencing shares
of Common Stock pursuant to the terms hereof, that the recipient of such shares make such agreements and representations, and
that such certificates bear such legends, as the Administrator, in its sole discretion, deems necessary or advisable.

 

12.2.
Each Award is subject to the requirement that, if at any time the Administrator determines that the listing, registration or qualification
of Shares is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental
regulatory body is necessary or desirable as a condition of, or in connection with, the grant of an Award or the issuance of Shares,
no such Award shall be granted or payment made or Shares issued, in whole or in part, unless listing, registration, qualification,
consent or approval has been effected or obtained free of any conditions not acceptable to the Administrator.

 

12.3.
In the event that the disposition of Shares acquired pursuant to the Plan is not covered by a then current registration statement
under the Securities Act and is not otherwise exempt from such registration, such Shares shall be restricted against transfer
to the extent required by the Securities Act or regulations thereunder, and the Administrator may require a Participant receiving
Common Stock pursuant to the Plan, as a condition precedent to receipt of such Common Stock, to represent to the Company in writing
that the Common Stock acquired by such Participant is acquired for investment only and not with a view to distribution.

 

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ARTICLE
XIII.

SECTION 409A OF THE CODE

 

13.1.
Unless otherwise expressly provided for in an Award Agreement, the Plan and each Award Agreement will be interpreted to the greatest
extent possible in a manner that makes the Plan and the Awards granted hereunder exempt from Section 409A of the Code, and, to
the extent not so exempt, in compliance with Section 409A of the Code. If the Administrator determines that any Award granted
hereunder is not exempt from and is therefore subject to Section 409A of the Code, the Award Agreement evidencing such Award will
incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code, and to the
extent an Award Agreement is silent on terms necessary for compliance, such terms are hereby incorporated by reference into the
Award Agreement. Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement specifically provides otherwise),
if the Shares are publicly traded, and if a Participant holding an Award that constitutes “deferred compensation”
under Section 409A of the Code is a “specified employee” for purposes of Section 409A of the Code, no
distribution or payment of any amount that is due because of a “separation from service” (as defined
in Section 409A of the Code without regard to alternative definitions thereunder) will be issued or paid before the date that
is six months following the date of such Participant’s “separation from service” (as defined in
Section 409A of the Code without regard to alternative definitions thereunder) or, if earlier, the date of the Participant’s
death, unless such distribution or payment can be made in a manner that complies with Section 409A of the Code, and any amounts
so deferred will be paid in a lump sum on the day after such six month period elapses, with the balance paid thereafter on the
original schedule.

 

13.2.
With respect to any Award that constitutes nonqualified deferred compensation within the meaning of Section 409A of the Code,
termination of a Participant’s Continuous Service Status shall mean a separation from service within the meaning of Section
409A of the Code, unless the Participant was an Employee immediately prior to such termination and is then contemporaneously retained
as a Consultant pursuant to a written agreement and such agreement provides otherwise. The Continuous Service Status of a Participant
shall be deemed to have terminated for all purposes of the Plan if such person is employed by or provides services to a subsidiary
and such subsidiary ceases to be a subsidiary, unless the Administrator determines otherwise. To the extent permitted by Section
409A of the Code, a Participant who ceases to be an Employee of the Company but continues, or simultaneously commences, services
as a Director of the Company shall be deemed to have had a termination of Continuous Service Status for purposes of the Plan.

 

ARTICLE
XIV.

MISCELLANEOUS PROVISIONS

 

14.1.
Nothing in the Plan or any Award granted hereunder shall confer upon any Participant any right to continue in the employ of the
Company or its Affiliates or to serve as a Director or shall interfere in any way with the right of the Company or its Affiliates
or the stockholders of the Company, as applicable, to terminate the employment of a Participant or to release or remove a Director
at any time. Unless specifically provided otherwise, no Award granted under the Plan shall be deemed salary or compensation for
the purpose of computing benefits under any employee benefit plan or other arrangement of the Company or its Affiliates for the
benefit of their respective employees unless the Company shall determine otherwise. No Participant shall have any claim to an
Award until it is actually granted under the Plan and an Award Agreement has been executed and delivered to the Company. To the
extent that any person acquires a right to receive payments from the Company under the Plan, such right shall, except as otherwise
provided by the Administrator, be no greater than the right of an unsecured general creditor of the Company. All payments to be
made hereunder shall be paid from the general funds of the Company, and no special or separate fund shall be established and no
segregation of assets shall be made to assure payment of such amounts, except as provided in ARTICLE VII with respect to
Restricted Stock and except as otherwise provided by the Administrator.

 

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14.2.
The Plan and the grant of Awards shall be subject to all applicable federal and state laws, rules, and regulations and to such
approvals by any government or regulatory agency as may be required. Any provision herein relating to compliance with Rule 16b-3
under the Act shall not be applicable with respect to participation in the Plan by Participants who are not subject to Section
16 of the Act.

 

14.3.
The terms of the Plan shall be binding upon the Company, its successors and assigns.

 

14.4.
Neither a Stock Option nor any other type of equity-based compensation provided for hereunder shall be transferable except as
provided for in Section 6.2. In addition to the transfer restrictions otherwise contained herein, additional transfer restrictions
shall apply to the extent required by federal or state securities laws. If any Participant makes such a transfer in violation
hereof, any obligation hereunder of the Company to such Participant shall terminate immediately.

 

14.5.
This Plan and all actions taken hereunder shall be governed by the laws of the State of Delaware.

 

14.6.
Each Participant exercising an Award hereunder agrees to give the Administrator prompt written notice of any election made by
such Participant under Section 83(b) of the Code, or any similar provision thereof, as applicable.

 

14.7.
If any provision of this Plan or an Award Agreement is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction,
or would disqualify the Plan or any Award Agreement under any law deemed applicable by the Administrator, such provision shall
be construed or deemed amended to conform to Applicable Laws, or if it cannot be construed or deemed amended without, in the determination
of the Administrator, materially altering the intent of the Plan or the Award Agreement, it shall be stricken, and the remainder
of the Plan or the Award Agreement shall remain in full force and effect.

 

14.8.
The grant of an Award pursuant to this Plan shall not affect in any way the right or power of the Company or any of its Affiliates
to make adjustments, reclassification, reorganizations, or changes of its capital or business structure, or to merge or consolidate,
or to dissolve, liquidate or sell, or to transfer all or part of its business or assets.

 

14.9.
The Plan is not subject to the provisions of ERISA or qualified under Section 401(a) of the Code.

 

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14.10.
If a Participant is required to pay to the Company an amount with respect to income and employment tax withholding obligations
in connection with (i) the exercise of a Nonqualified Stock Option, (ii) certain dispositions of Common Stock acquired upon the
exercise of an Incentive Stock Option, or (iii) the receipt of Common Stock pursuant to any other Award, then the issuance of
Common Stock to such Participant shall not be made (or the transfer of shares by such Participant shall not be required to be
effected, as applicable) unless such withholding tax or other withholding liabilities shall have been satisfied in a manner acceptable
to the Company. To the extent provided by the terms of an Award Agreement, the Participant may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of Common Stock under an Award by any of the following means
(in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination
of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares of Common Stock from the shares of
Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Award,
provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be
withheld by law; or (iii) delivering to the Company owned and unencumbered shares of Common Stock.

 

14.11.
Compliance with other laws.

 

14.11.1
For Reporting Persons:

 

(i)
the Plan is intended to satisfy the provisions of Rule 16b-3;

 

(ii)
all transactions involving Participants who are subject to Section 16(b) of the Act are subject to the provisions of Rule 16b-3
regardless of whether they are set forth in the Plan; and

 

(iii)
any provision of the Plan that conflicts with Rule 16b-3 does not apply to the extent of the conflict.

 

14.11.2
If any provision of the Plan, any Award, or Award Agreement conflicts with the requirements of Code Section 162(m) or 422 for
Awards subject to these requirements, then that provision does not apply to the extent of the conflict.

 

14.11.3
Notwithstanding any other provision of the Plan, if, for an Employee of a parent company, the conversion of an Incentive Stock
Option to a Nonqualified Stock Option or the treatment of an Incentive Stock Option as a Nonqualified Stock Option would not satisfy
the requirements of Code Section 409A or an exemption thereto, as determined by the Administrator in its exclusive discretion,
then the Incentive Stock Option shall terminate on the date that it would no longer qualify as an Incentive Stock Option as determined
by the Administrator in its exclusive discretion.

 

14.12.
In addition to the remedies of the Company elsewhere provided for herein, failure by a Participant to comply with any of the terms
and conditions of the Plan or any Award Agreement, unless such failure is remedied by such Participant within ten days after having
been notified of such failure by the Administrator, shall be grounds for the cancellation and forfeiture of such Award, in whole
or in part, as the Administrator, in its sole discretion, may determine.

 

14.13.
Any reference in the Plan to a written document includes any document delivered electronically or posted on the Company’s
intranet.

 

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Trxade Group, Inc.
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14.14.
The headings and captions in the Plan are inserted as a matter of convenience for organizational purposes, and do not construe,
define, extend, interpret, or limit any provision of the Plan.

 

14.15.
Whenever the context may require, any pronoun includes the corresponding masculine, feminine, or neuter form, and the singular
includes the plural and vice versa.

 

14.16.
Any reference in the Plan to a statutory or regulatory provision includes corresponding successor provisions.

 

14.17.
The proceeds from the sale of shares pursuant to Awards granted under the Plan shall constitute general funds of the Company.

 

14.18.
A Participant’s electronic signature of an Award Agreement shall have the same validity and effect as a signature affixed
by hand.

 

14.19.
Notwithstanding anything in the Plan or in any Award Agreement to the contrary, the Company will be entitled to the extent permitted
or required by Applicable Law, Company policy and/or the requirements of a Stock Exchange on which the Shares are listed for trading,
in each case, as in effect from time to time, to recoup compensation of whatever kind paid by the Company at any time to a Participant
under this Plan. No such recoupment of compensation will be an event giving rise to a right to resign for “good reason”
or “constructive termination” (or similar term) under any agreement between any Participant and the
Company.

 

14.20.
Corporate action constituting a grant by the Company of an Award to any Participant shall be deemed completed as of the date of
such corporate action, unless otherwise determined by the Administrator, regardless of when the instrument, certificate, or letter
evidencing the Award is communicated to, or actually received or accepted by, the Participant. In the event that the corporate
records (e.g., Board consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms (e.g.,
exercise price, vesting schedule or number of Shares) that are inconsistent with those in the Award Agreement or related grant
documents as a result of a clerical error in the preparation of the Award Agreement or related grant documentation, the corporate
records will control, and the Participant will have no legally binding right to the incorrect term in the Award Agreement or related
grant documentation.

 

14.21.
Nothing contained in the Plan or in any Award agreement executed pursuant hereto shall be deemed to confer upon any individual
or entity to whom an Award is or may be granted hereunder any right to remain in the employ or service of the Company or a parent
or subsidiary of the Company or any entitlement to any remuneration or other benefit pursuant to any consulting or advisory arrangement.

 

    	2019 Equity Incentive Plan
Trxade Group, Inc.
26 of 26Exhibit 4.12

Exhibit 4.12

Certain information has been omitted from the following agreement because such information is both not material to investors and would be competitively harmful to the registrant. Such omitted information has been marked “[***]”

DEVELOPMENT AGREEMENT

THIS DEVELOPMENT AGREEMENT (this “Agreement”) is made as of January 31, 2019 (the “Effective Date”) among TOWER THREE SAS, a company organized and existing under the laws of Colombia (the “Developer”) and [***], a company organized and existing under the laws of Colombia (“[***]”). Each of Developer and [***] may hereafter be referred to as a “Party”, and collectively, as the “Parties”. Capitalized terms used herein without definition shall have the meanings assigned to them in the Purchase Agreement.

W I T N E S S E T H:

WHEREAS, Developer and [***] entered into an Asset Purchase Agreement dated as of November 21, 2018 (as amended, the “Colombia Purchase Agreement”) pursuant to which Developer agreed to sell and assign to [***], and [***] agreed to purchase and assume from Developer the Sites (as defined in the Colombia Purchase Agreement), in each case as more fully described and upon the terms and subject to the conditions set forth herein;

WHEREAS, Developer is engaged in the business of constructing and operating telecommunications towers in Colombia (the “Territory”); and

WHEREAS, [***] desires to purchase from Developer, and Developer desires to sell to [***] certain Towers and their related Tower Assets that Developer intends to develop in the Territory (each a “Development Tower”), on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the parties hereto agree as follows:

1. Agreement to Purchase and Sell; Minimum Number of Development Towers; Term of Agreement.

(a) For a period of [***] commencing as of the Effective Date (the “Term”), and subject to the satisfaction of all of the terms and conditions of this Agreement, Developer agrees to offer up to [***] Development Towers (in the aggregate together with the Mexico Development Towers and the Argentina Development Towers) for sale to [***] in accordance with the procedure described in Section 2 that meet the Minimum Conditions set forth in Exhibit A, and free and clear of all Liens except Permitted Liens. In the event that [***] (or its applicable affiliate in connection with the Mexico Development Towers or the Argentina Development Towers) approves the development of [***] Development Towers (in the aggregate together with the Mexico Development Towers and the Argentina Development Towers), [***] and Developer (or their respective affiliates) could mutually agree to amend this Agreement, the Mexico Development Agreement, and/or the Argentina Development Agreement to contemplate the development and acquisition of an additional [***] Towers.

(b) The Term may be extended by mutual agreement of the Parties to be confirmed in writing prior to expiration of the Term then in effect. For the avoidance of doubt, if [***] has approved its intention to purchase any Development Tower during the Term, the terms and conditions of this Agreement shall continue to apply through Closing (and any related post-Closing obligations) related to such Development Tower(s) but neither Party shall have continuing obligations related to any potential Development Tower(s) not identified by Developer and/or approved by [***].

2. Identification; Purchase Price; Payments; Closing.

(a) (i) Identification and Acceptance of Sites for Development Towers. During the Term, Developer shall identify each communications site (each a “Site”) on which it proposes to develop a future Tower in the Territory and which, in Developer’s sole discretion, it wishes to present to [***], by delivering to [***] detailed information in a form of a Search Ring or Site Acquisition Map in the form acceptable to the prospective Tenant. [***] shall have ten (10) Business Days following receipt from Developer of a Search Ring or Site Acquisition Map to determine, in its sole discretion, whether or not to accept the Site as a “Development Tower” for the sale to [***] under the terms and conditions of this Agreement and the Asset Purchase Agreement. Any failure to respond by [***] during such ten (10) Business Day period shall be deemed to be a rejection of the Site as a Development Tower. Notwithstanding any other provision herein, only those sites presented by Developer to [***] and accepted by [***] in accordance with this Section 2(a)(i) shall be “Development Towers” for purposes of this Agreement.

(ii) Ground Lease Option or Usufruct. For each Site that is accepted as a “Development Tower” pursuant to Section 2(a)(i), Developer shall provide to [***], as soon as practicable, the proposed Ground Lease Option applicable to such Site substantially in the form set forth as Exhibit 2(a)(ii) hereto. If the terms of the proposed Ground Lease Option are satisfactory to [***], [***] will purchase the Development Tower (and the related Tower Assets and Site) subject to the terms and conditions of this Agreement and the applicable Asset Purchase Agreement. If the terms of the proposed Ground Lease Option are not satisfactory to [***], [***] shall have the right to reject such Site as a Development Tower upon written notice to Developer within five (5) Business Days and upon receipt of such written notice, neither Party shall have any further obligations to the other Party under this Agreement with respect to such Site and such Site shall not be deemed to be a Development Tower for purposes of this Agreement (the failure of [***] to deliver written notice within such time frame shall be deemed [***]’s acceptance of the Ground Lease Option set forth therein).

(iii) ROFO. During the Term, Developer shall not sell, transfer or otherwise convey, or agree to sell, transfer or otherwise convey, except in connection with a joint venture or other financing arrangement to which Developer is a party, all or any portion of a tower (including the related Tower Assets and Site if such tower were a “Development Tower” or an “Acquisition Tower” under this Agreement), or any group of towers or any interest therein, located in the Territory, to any Person unless Developer has first offered to sell, transfer and convey the tower(s) (including the related Tower Assets and Site) to [***] by written notice (the “Sale Notice”). Any tower previously tendered to and rejected

2

by [***] as described in this Agreement (each a “Rejected Tower”) shall be exempt from the terms of this Section 2(a)(iii), provided that such exemption shall not apply if Developer proposes to include any Rejected Tower in an offer to any Person that combines such Rejected Tower with any other tower or group of towers that is subject to this Section 8 (the “Renewed ROFO”). The Sale Notice shall include (A) a description of the proposed tower(s) and (B) the price and other terms and conditions on which it is willing to sell such tower(s). Upon receipt by [***] of the Sale Notice and continuing for twenty (20) days thereafter (the “Exercise Period”), [***] shall have the right, exercisable by giving written notice (the “Exercise Notice”) to Developer, to purchase all (but not less than all, except any tower(s) for which Defects are identified during due diligence) of the tower(s) (including the related Tower Assets and Sites) described in the Sale Notice from Developer on terms and conditions set forth in the Sale Notice. In the event [***] purchases the tower(s) pursuant to this Section 2(a)(iii), the Parties shall negotiate an Asset Purchase Agreement containing at least the same terms and conditions contemplated in the Sale Notice. Unless the Parties otherwise agree, the closing of any purchase of tower(s) shall occur five (5) Business Days after all third-party consents (including governmental approvals) are obtained. As to any tower(s) [***] does not exercise its right to purchase, Developer shall be free, during the [***] period following the Sale Notice (together with any reasonable and bona fide extensions of time required to complete the closing of an agreement made binding during such [***] period), to sell and convey the tower(s) to a bona fide third-party upon the same material terms and conditions available to [***] set forth in the Sale Notice. Any towers (and related Tower Assets and Sites) not sold within such [***] period shall continue to be subject to the requirements of this Section 2(a)(iii).

(b) Purchase Price. The purchase price for each Development Tower that meets the Minimum Conditions (the “Purchase Price”) shall equal the sum of (A) the Allocable Purchase Price, plus (B) any Earn-Out Amounts, if any, payable to Developer in accordance with this Section 2(b). At the Closing of each Development Tower, [***] shall pay an amount (the “Closing Date Payment”) equal to the Allocable Purchase Price minus the total amount of Milestone Payments paid in accordance with Section 2(c) of this Agreement (it being understood that the Fifth Milestone Payment shall not be required to be paid to the Developer until the Closing in accordance with Section 2(c)). The Purchase Price of each Development Tower shall be paid by wire transfer in immediately available funds pursuant to Developer’s wire instructions. Subject to the satisfaction of all terms and conditions of this Agreement and the Asset Purchase Agreement, the closing (each a “Closing”) of the purchase of a Development Tower will occur on the later of thirty (30) days after (i) the date on which Developer delivers notice to [***] with reasonable supporting documentation that the Fifth Milestone was achieved, or (ii) the date that all Minimum Conditions have been satisfied or previously waived by [***] in writing. The date of a Closing shall be referred to as a “Closing Date.”

(c) (b) Earn-Out Amount Payment. With respect to each Eligible Lease, [***] agrees to pay Developer on the 5th day following the Eligible Lease Commencement Date applicable to such Eligible Lease (the “Earn-Out Payment Date”), the applicable Earn-Out Amount, if any, applicable to such Eligible Lease. Any Earn-Out Amount shall be paid by wire transfer in immediately available funds pursuant to Developer’s wire instructions.

3

(d) Milestone Purchase Price Payments. Subject to the satisfaction of all of the terms and conditions of this Agreement, (i) within five (5) Business Days after the date on which Developer delivers notice to [***] with reasonable supporting documentation that (A) a Milestone with respect to any Development Tower is first satisfied and (B) any then applicable Minimum Conditions have been satisfied (each such date being referred to as a “Milestone Payment Date”), [***] shall pay to Developer the applicable Milestone Payments below, and (ii) at the Closing, [***] shall pay Developer (in accordance with the Asset Purchase Agreement) the Milestone Payment applicable to the Fifth Milestone. Each Milestone Payment shall be paid by wire transfer in immediately available funds pursuant to Developer’s wire instructions.

		
	Milestones	Milestone Payments
	A copy of the signed Ground Lease, Ground Lease Option or Usufruct and a copy of the title search report from the Public Registry applicable to such Site evidencing no liens or encumbrances on the Tower Assets except for Permitted Liens.
Receipt of evidence of application of all Applicable Permits for construction and operation of Site.
(“First Milestone”)	25% of the estimated Allocable Purchase Price.
	Receipt of (i) Site constructed/vertical support, (ii) unconditional acceptance of the applicable Development Tower by carrier and (iii) Site folder.
(“Second Milestone”)	25% of the estimated Allocable Purchase Price.
	Receipt of fully executed site lease agreement with carrier in a form approved by [***].
(“Third Milestone”)	22.5% of the estimated Allocable Purchase Price.
	Receipt of all Applicable Permits for construction and operation of Site.
(“Fourth Milestone”)	17.5% of theestimated Allocable Purchase Price.

4

		
	Receipt of all third party consents from carrier/landlords and assignment of all Tenant Leases to [***] along with first rent payment received by [***].
(“Fifth Milestone”)	10.0%% of the estimated Allocable Purchase Price.

(e) Sites Not Meeting Minimum Conditions or Delayed by Excusable Events.

(i) In the event that a Site does not meet all of the Minimum Conditions after the completion of the Development Tower (each, a “Defect Site”), [***] shall be under no obligation to pay any pending Milestone Payment with respect to such Defect Site until such time as all of the Minimum Conditions have been met. During the [***] period following completion of the Development Tower on such Defect Site (the “Cure Period”), Developer shall use commercially reasonable efforts to cause such Defect Site to meet all Minimum Conditions, which may include Developer expending reasonable sums, at the sole cost of Developer, and time to effectuate a solution. If such Defect Site does not meet the Minimum Conditions within the Cure Period, [***] and Developer’s shall agree on one of the following remedies: (i) Developer shall reimburse [***] for all Milestone Payments previously paid to Developer with respect to such Defect Site (which shall be paid within fifteen (15) Business Days after requested by [***]), (ii) [***] shall offset any Milestone Payments previously paid to Developer with respect to such Defect Site against Milestone Payments due and payable with respect to a Development Tower that is not a Defect Site or (iii) Developer shall replace the Tower Cash Flow projected for the Defect Site with Tower Cash Flow from a Site with a comparable completed Tower from Developer’s portfolio, all on terms and conditions reasonably acceptable to [***] and Developer. Developer shall pay to [***] all such amounts within fifteen (15) Business Days after request by [***]. If [***] and Developer fail to mutually agree on one of the foregoing remedies within thirty (30) days after the expiration of the Cure Period, [***] may, in its sole discretion, elect either (ii) or (iii) of the foregoing remedies. For the avoidance of doubt, in case Developer performs any of the actions set forth in clauses (i) through (iii) above, such Defect Site will be deemed to no longer be a Development Tower and Developer will be subject to no restrictions with respect to any sale or other transaction related thereto (including those set forth in Section 2(a)(iii)). With respect to the circumstances described in this Section 2(d), notwithstanding Section 9 or any other provision hereof, [***] shall not be entitled to recover damages or obtain payment, reimbursement, restitution or indemnity more than once in respect of the same loss.

(e) Closing. At each Closing, [***] and Developer shall satisfy each of the conditions set forth in the Asset Purchase Agreement, including those conditions set forth on Appendix B.

3. Representations and Warranties of Developer. Developer makes the following representations and warranties as of the date hereof and as of each Closing Date (except that any representations and warranties made on any Closing Date that relate to any particular Development Tower (and the related Tower Assets and Sites) shall be made only with respect to the

5

Development Tower being transferred to [***] under the Asset Purchase Agreement and no other Development Tower previously or subsequently transferred):

(a) Organization. Developer is a corporation with limited liability duly formed, validly existing and in good standing under the laws of the jurisdiction where the Tower Assets are located. Developer has full corporate authority and power to enter into the transactions provided in this Agreement.

(b) Authorization; Enforceability. The execution, delivery and performance of this Agreement and the consummation by Developer of the transactions contemplated hereby are within the corporate power of Developer and have been duly authorized by all necessary company action by Developer. Developer and those persons executing this Agreement on its behalf in a representative capacity have legal capacity to execute and deliver this Agreement. This Agreement is valid and binding obligations of Developer, enforceable against it in accordance with its terms, subject only to bankruptcy, insolvency, reorganization, moratoriums or similar laws at the time in effect affecting the enforceability or right of creditors generally and by general equitable principles which may limit the right to obtain equitable remedies.

(c) Liens; Condemnation. Developer has (i) good and marketable title to the Development Towers (and the related Tower Assets and Sites), in each case free and clear of all Liens except for Permitted Liens; and (ii) there are not any present or pending Actions relating to condemnation, eminent domain, or other taking by any Authority, of any of the Development Towers (or related Tower Assets and Sites), no Action is contemplated, and Developer has not received notice of any such Action. The Development Towers (and the related Tower Assets and Sites) constitute all of the rights, property and assets necessary to operate the Development Towers as proposed to be operated.

(d) Absence of Conflicting Agreements. The execution, delivery and performance of this Agreement by Developer in accordance with its terms neither do nor will, after the giving of notice or the lapse of time or both, or otherwise:

(i) conflict with, result in a breach of, or constitute a default under, Developer articles of incorporation, bylaws or shareholders’ agreement, any Applicable Law to which Developer is subject, or any court or administrative order or process, or any material contract, agreement, arrangement, commitment or plan to which Developer is a party or by which Developer is bound;

(ii) require the consent, waiver, approval, permit, license, clearance or authorization of, or any declaration or filing with, any court or governmental or public agency or other authority; or

(iii) require the consent of any Person under any material agreement, arrangement or commitment of any nature to which Developer is a party or bound by or to which the Development Towers (and the related Tower Assets and Sites) is bound or subject.

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(e) No Litigation; Compliance with Laws; Conditions.

(i) There is no decree, judgment, order, investigation, complaint, litigation at law or in equity, arbitration proceeding or proceeding before or by any commission, agency or other administrative or regulatory body or authority pending or, to the knowledge of Developer, threatened, which could adversely and materially affect Developer’s ability to undertake its obligations under this Agreement or that pertains to or affects any of the Development Towers (or related Tower Assets and Sites).

(ii) Developer owns and operates, and has owned and operated, its business, and carries on and conducts, and has carried on and conducted, its business in compliance in all material respects with all Applicable Laws. Developer has not received any notification from any Authority of any asserted present or past failure to comply in any material respect with such Applicable Laws or orders and there is no pending or, to the knowledge of Developer, threatened investigation of any sort against Developer. Developer or its Affiliates possess all Governmental Authorization that are necessary for the ownership and operation of the Development Towers (and the related Tower Assets and Sites) being transferred to [***].

(iii) The Development Towers and other items of tangible personal property included in the Tower Assets are structurally sound, are in good operating condition and repair, and are adequate for the uses to which they are being put, and none of such Development Towers and other items of tangible personal property is in need of maintenance or repairs except for routine maintenance and repairs that are not material in nature or cost.

(f) Brokers. Neither this Agreement nor any other transaction contemplated by this Agreement was induced or procured through any Person acting on behalf of or representing Developer as broker, finder, investment banker, financial advisor or in any similar capacity.

(g) Approvals, Other Authorizations, Consents, Reports, Etc.

(i) Each Development Tower (and the related Tower Assets and Site) has been owned and operated by Developer in accordance with all material Governmental Authorizations; no consents are required to be obtained by Developer from any Authority under any Governmental Authorization in order to consummate the purchase of such Development Tower. All improvements of Developer on each Site are in compliance with applicable zoning, wetlands, and any related or similar Applicable Laws and applicable title covenants, conditions, restrictions and reservations in all respects, now and at the time of development of the Sites as communications facilities;

(ii) except for the third party consents set forth in Section 3(g)(ii) of the Disclosure Schedule, no consent, approval or authorization of, or registration or filing with any Person is required to be obtained in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby;

(iii) no such Governmental Authorization is the subject of any proceeding to revoke or terminate any such Governmental Authorization or to fine or admonish Developer; neither Developer nor any Development Tower (and related Tower Assets and Site) is charged by any Authority with any breach or violation of, or default in the performance,

7

observance or fulfillment of, any Applicable Law relating to Developer’s or its subsidiaries’ ownership, use, occupancy management, repair, or and operation of the Development Towers (and related Tower Assets and Sites); and

(iv) no event exists or has occurred during Developer’s ownership of the Development Towers (and related Tower Assets and Sites), which constitutes, or but for any requirement of giving of notice or passage of time or both would constitute, such a breach, violation or default, under any Governmental Authorization or any Applicable Law.

(h) Financial Capacity. Developer has the financial capacity to perform its obligations under this Agreement.

(i) Material Agreements. Unless the Tenant Lease and the Ground Leases have been executed by [***] or one of its relevant wholly owned subsidiary in the relevant jurisdiction:

(i) Each Tenant Lease and Ground Lease is in full force and effect, has been duly authorized, executed and delivered by Developer and, to the knowledge of Developer, the other parties thereto, and is a legal, valid and binding obligation of such party, enforceable in accordance with its terms;

(ii) Developer is the original lessor (or has validly succeeded to the rights of the original lessor) under each of the Tenant Leases, or [***] or is relevant wholly owned subsidiary in the relevant jurisdiction is the lessor under each Tenant Lease pursuant to an assignment done by Developer to [***] or its relevant wholly owned subsidiary in the relevant jurisdiction. Furthermore: unless already assigned to [***] or its relevant wholly owned subsidiary in the relevant jurisdiction (i) Developer is collecting the rent set forth in each Tenant Lease on a current basis and there are no past due amounts thereunder; (ii) no Tenant is entitled to any rental concessions or abatements in rent for any period subsequent to the Effective Date; (iii) Developer has not given notice to any Tenant claiming that the Tenant is in default under its Tenant Lease, and, to the best of Developer’s knowledge, there is no event which, with the giving of notice or the passage of time or both, would constitute such a default; (iv) Developer has not received notice from any Tenant claiming that Developer is in default under the Tenant Lease, or claiming that there are defects in the improvements, which default or defect remains in any manner uncured; (v) neither Developer nor any Developer has received notice from any Tenant asserting any claims, offsets or defenses of any nature whatsoever to the performance of its obligations under its Tenant Lease and, to Developer’s knowledge, there is no event which, with the giving of notice or the passage of time or both, would constitute the basis of such claim, offset or defense; (vi) except as expressly set forth in the Tenant Leases, there are no security deposits or prepaid rentals under any of the Tenant Leases; and (vii) no Tenant Lease provides for non-monetary rent or consideration.

(iii) Developer has not received any correspondence or notice from any party to the Tenant Leases or Ground Leases regarding the termination or expiration of the term of such agreement;

(iv) Except in cases where Developer or one of its Affiliates owns the real property upon which the Development Tower is located, Developer, provided that the Ground Lease and Tenant Lease allow the assignment, will assign the Ground Leases and Ground Lease

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Options to [***] free and clear of all Liens except Permitted Liens. With respect to any Ground Lease, when applicable, (i) such party is in actual possession of the leased premises under the Ground Leases; (ii) such party has paid the rent set forth in the Ground Leases on a current basis and there are no past due amounts; (iii) except as expressly set forth in the Ground Leases, such party is not obligated to pay any additional rent or charges to the Ground Lessors; (iv) such party has not received notice from or given notice to any Ground Lessor claiming that the Ground Lessor or such party is in default under a Ground Lease, and, to the best of Developer’s knowledge, there is no event which, with the giving of notice or the passage of time or both, would constitute such a default; (v) none of the Ground Leases provide for non-monetary rent or other consideration to the Ground Lessor thereunder; (vi) none of the Ground Lessors is an Affiliate of Seller, (vii) each of the Ground Leases (or a memorandum thereof), if required under Applicable Law, is recorded in the appropriate jurisdiction, (viii) such party has not prepaid any rent under any of the Ground Leases more than one (1) month in advance (except with the consent of [***]), (ix) each Ground Lease has at least [***] years of its term remaining, which term may include extension of terms not yet exercised (provided that under the terms of such lease the extension terms are either automatic or exercisable at the option of the tenant under the Ground Lease and in no event may any other Person, other than the tenant under the Ground Lease, be entitled to prevent, refuse or nullify the exercise of such extension, unless the tenant under the Ground Lease is in default), and (x) each Ground Lease permits such party to co-locate additional Tenants on the Development Towers without the requirement to obtain the approval or consent of any other Person and without the requirement to pay additional money to any other Person.

(v) Developer has obtained all easements and rights-of-way that are reasonably necessary to provide vehicular and/or pedestrian ingress and egress to and from each of the Development Towers (and the related Tower Assets and Sites) and no action is pending or threatened or event existing which, individually or in the aggregate, would have the effect of terminating or limiting such access.

(j) Environmental Matters.

(i) Developer has not entered into or received any consent decree, compliance order or administrative order issued pursuant to any Environmental Health and Safety Requirements and Developer is not a party in interest with respect to any judgment, order, writ, injunction or decree issued pursuant to any Environmental Health and Safety Requirements;

(ii) Developer has all permits required by all Environmental Health and Safety Requirements and to its knowledge, Developer is in compliance with all such required permits; Developer is not the subject of or, to its knowledge, threatened with any legal action involving a demand for damages or other potential liability with respect to violations or breaches of any Environmental Health and Safety Requirements relating to the Development Towers (and the related Tower Assets and Sites);

(iii) Developer has not received any written notice that (i) any Environmental Permit is not in full force and effect or (ii) it is not in compliance in all material respects with the terms of all of its Environmental Permits;

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(iv) Only if required for the construction and development of the relevant Development Tower, Developer will provide to [***] with reasonable access to a true, complete and correct copy of all surveys, reports, assessments, audits, evaluations, investigations, sampling results or other documents relating to the presence, migration or disposal of any Hazardous Substance or noncompliance with Environmental Health and Safety Requirements prepared for or at the request of Developer that are in its possession or control relating to the Development Towers (and the related Tower Assets and Sites).

(v) Seller is currently and has been in compliance with all applicable regulations of the Territory related to the preservation of cultural heritage.

(k) Bankruptcy Matters. Developer has not (a) changed its name or suspended its business or payments, (b) had proceedings pending or threatened by or against it in bankruptcy or reorganization in any Authority, (c) resolved or otherwise agreed to file a case in bankruptcy or reorganization in any Authority, or (d) admitted in writing its inability to pay its debts as they become due. Developer is, and after giving effect to the transactions contemplated hereby will be, solvent.

(l) Taxes. Developer has paid or will, at or prior to the applicable Closing, pay all outstanding obligations for Taxes on the real and personal property constituting the Development Towers (and the related Tower Assets and Sites), including without limitation, any Taxes relating to construction materials other than those that are being contended before any Tax Authority or court of law under bona fide basis. Developer has duly and timely filed with the appropriate Authorities all Tax Returns required to be filed by it with respect to the Development Towers (and the related Tower Assets and Sites), and such Tax Returns are true, correct and complete in all material respects and were prepared in accordance with Applicable Law. There are no Tax Liens on any Development Towers (and related Tower Assets and Sites) that will not be paid prior to Closing, or any Lien, action, suit, proceeding, investigation, audit, examination or assessment with regard to any Taxes that relate to the Development Towers (and related Tower Assets and Sites) pending or, to Developer’s knowledge, which could result in a Lien on any of the Development Towers (and related Tower Assets and Sites).

(m) Anti-Corruption Laws. None of Developer or its subsidiaries, Affiliates, officers, directors, employees, agents (acting on behalf of Developer or its subsidiaries) or to Developer’s knowledge, any other Persons (acting on behalf of Developer or its subsidiaries), has directly or indirectly made any contribution, gift, bribe, rebate, payoff, influence payment, kickback or other payment to any Person, private or public, regardless of form, whether in money, property or services to obtain favorable treatment in securing business, to pay for favorable treatment for business secured, to obtain special concessions for special concessions already obtained, for or in respect of Developer or any subsidiary or Affiliate thereof, or in violation of any Applicable Law, or established or maintained any fund or asset that has not been recorded in the books and records of Developer or any subsidiary or Affiliate thereof. Each of Developer and its subsidiaries and Affiliates has complied with applicable anti-corruption, anti-money laundering, anti-terrorism, economic sanctions and anti-boycott laws of the United States of America and all Anti-Corruption Laws. None of Developer or its subsidiaries, Affiliates, officers, directors, agents (acting on behalf of Developer or its subsidiaries), employees (a) are, or are owned by any Person currently identified on the Specially Designated Nations and Blocked

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Persons List maintained by the OFAC, and/or any other similar list maintained by OFAC pursuant to any authorizing statute, executive order or regulation, or (b) is a Person with whom a citizen of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of Applicable Laws or any executive order of the President of the United States. Without limiting the foregoing, none of Developer, its subsidiaries or Affiliates has directly, or indirectly, entered into any arrangement or agreement related to the installation of Security-Solutions Equipment or the provision of other services on the Towers and/or the Tower Assets with the any local municipality and/or Authority in the Territory in violation of any Applicable Law, including all Anti-Corruption Laws.

(n) Insurance. The Development Towers (and related Tower Assets and Sites) are covered by insurance policies that provide coverage to the extent and in the manner consistent with common practice in Colombia. No notice of reduction in coverage, increase in premium, or cancellation or non-renewal with respect to, or disallowance of any material claim under, any such policy or binder has been received by Developer. All such insurance policies (a) are in full force and effect and enforceable in accordance with their terms; (b) are provided by insurance companies who are financially solvent; and (c) have not been subject to any lapse in coverage. Developer has insurance in such amounts and covering such risks and liabilities as are in accordance with normal industry practice in the Territory.

(o) No Third Party Rights. No Person other than [***] by reason of this Agreement has any contractual or other right of first refusal or any other right or option to acquire the Development Towers (and their related Tower Assets and Sites), or any portion thereof, including through any merger, consolidation, liquidation, dissolution or other reorganization.

(p) Due Diligence Items. The copies of the Due Diligence Items provided and/or made available to [***] constitute, all of the Due Diligence Items relating to the Development Towers (and the related Tower Assets and Sites) in the possession of Developer or any of its Affiliates as of any such date. The copies of such Due Diligence Items are true and accurate, taken as a whole, in all material respects and not misleading in any material respect nor is any information omitted from such information that makes the information provided misleading in any material respect (except to the extent that Developer has provided written updates or amendments to such previously furnished information reflecting changes in circumstance subsequent to the provision of such information).

(q) Related Transactions. Developer is not a party or subject to any contract relating to the ownership or operation of the Development Towers (and the related Tower Assets and Sites) between Developer and any of the officers or directors or any Affiliate, including without limitation any contract providing for the furnishing of services to or by, providing for rental of property, real, personal or mixed, to or from, or providing for the lending or borrowing of money to or from or otherwise requiring payments to or from, any such Person, other than contracts between Developer and any of the foregoing that will be terminated, at no cost or expense to [***], prior to the applicable Closing.

(r) Municipal Agreements. Neither Developer nor any of its Affiliates has entered into any agreement for the provision of other services on the Towers and/or the Tower Assets with the any local municipality and/or Authority in the Territory. No such agreement(s)

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with any local municipality and/or Authority in the Territory will affect the Purchaser’s ownership or operation of the Development Tower and/or the Tower Assets following the applicable Closing.

4. Representations and Warranties of [***]. As of each Closing Date with respect to the Development Towers (and the related Tower Assets and Sites) to be transferred on such Closing Date, [***] represents and warrants to Developer as follows:

(a) Organization and Business; Power and Authority; Effect of Transaction.

(i) [***] is a company with limited liability duly formed, validly existing and in good standing under the laws of the jurisdiction where the Tower Assets are located. [***] has full corporate authority and power to enter into the transactions provided in this Agreement.

(ii) The execution, delivery and performance of this Agreement and all of the documents and instruments required hereby of [***] and the consummation by [***] of the transactions contemplated hereby and thereby are within the corporate power of [***] and have been duly authorized by all necessary company action by [***]. [***] and those persons executing this Agreement on its behalf in a representative capacity have legal capacity to execute and deliver this Agreement. This Agreement is the valid and binding obligations of [***], enforceable against it in accordance with the documents’ respective terms, subject only to bankruptcy, insolvency, reorganization, moratoriums or similar laws at the time in effect affecting the enforceability or right of creditors generally and by general equitable principles which may limit the right to obtain equitable remedies).

(iii) Neither the execution and delivery by [***] of this Agreement, nor the consummation of the transactions contemplated hereby, nor compliance with the terms, conditions and provisions hereof or thereof by [***] will conflict with, or result in a breach or violation of, [***]’s articles of incorporation, bylaws or shareholders’ agreement, any Applicable Law to which [***] is subject, or any court or administrative order or process, or any material contract, agreement, arrangement, commitment or plan to which [***] is a party or by which [***] is bound.

(b) Governmental Approvals. There are no Governmental Approvals and other filings, applications or notices required to be made, filed, given or obtained by [***] or any of its Affiliates with, to or from any Governmental Authorities in connection with the consummation of the transactions contemplated by this Agreement.

(c) Litigation; Orders. As of any Closing, there is no action, suit or proceeding pending or, to [***]’s knowledge, threatened against [***] by or before any Governmental Authority or by any Person which challenges the validity of this Agreement or which would reasonably be likely to adversely affect or restrict [***]’s or its Affiliates ability to consummate the transactions contemplated by this Agreement.

(d) Broker or Finder. No agent, broker, investment banker, financial advisor or other firm or Person engaged by or on behalf of [***] or any of its Affiliates is or will be entitled to a fee or commission in connection with the Purchase.

(e) Financial Capacity. [***] has access to sufficient funds to perform its obligations under this Agreement and the execution and performance of this Agreement will not

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have as an effect the insolvency of [***] or will result in the inability to pay its debts as they become due.

(f) Proceeds. The source of the proceeds to be used by [***] in connection with the payments due to Developer under this Agreement and the corresponding Asset Purchase Agreement, is the legal exercise of its business and activities.

(g) Bankruptcy Matters. [***] has not (a) changed its name or suspended its business or payments, (b) had proceedings pending or threatened by or against it in bankruptcy or reorganization in any Authority, (c) resolved or otherwise agreed to file a case in bankruptcy or reorganization in any Authority, or (d) admitted in writing its inability to pay its debts as they become due. [***] is, and after giving effect to the transactions contemplated hereby will be, solvent.

(h) Anti-Corruption Laws. None of [***] or its subsidiaries, Affiliates, officers, directors, employees, agents (acting on behalf of [***] or its subsidiaries) or to [***]’s knowledge, any other Persons (acting on behalf of [***] or its subsidiaries), has directly or indirectly made any contribution, gift, bribe, rebate, payoff, influence payment, kickback or other payment to any Person, private or public, regardless of form, whether in money, property or services to obtain favorable treatment in securing business, to pay for favorable treatment for business secured, to obtain special concessions for special concessions already obtained, for or in respect of [***] or any subsidiary or Affiliate thereof, or in violation of any Applicable Law, or established or maintained any fund or asset that has not been recorded in the books and records of [***] or any subsidiary or Affiliate thereof. Each of [***] and its subsidiaries and Affiliates has complied with applicable anti-corruption, anti-money laundering, anti-terrorism, economic sanctions and anti-boycott laws of the United States of America and all Anti-Corruption Laws. None of [***] or its subsidiaries, Affiliates, officers, directors, agents (acting on behalf of [***] or its subsidiaries), employees (a) are, or are owned by any Person currently identified on the Specially Designated Nations and Blocked Persons List maintained by the OFAC, and/or any other similar list maintained by OFAC pursuant to any authorizing statute, executive order or regulation, or (b) is a Person with whom a citizen of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of Applicable Laws or any executive order of the President of the United States.

(i) No Third Party Rights. No Person other than [***] by reason of this Agreement has any contractual or other right of first refusal or any other right or option to acquire the Development Towers (and their related Tower Assets and Sites), or any portion thereof, including through any merger, consolidation, liquidation, dissolution or other reorganization. [***] is not acquiring the Development Towers for resale nor for the benefit of any third party.

5. Independent Contractors.

(a) [***] and Developer acknowledge and agree that, at all times during the Term, Developer and its representatives shall act solely as independent contractors and nothing in this Agreement is intended or shall be construed to create an employee/employer relationship or a relationship as partners or joint ventures between or among Developer or its representatives, on the one hand, and [***] and its Affiliates, on the other hand.

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(b) Each Party understands and agrees that its representatives will not be treated as employees or agents of the other Party, or its respective Affiliates for any purpose, including, without limitation, for tax purposes, employment or workers’ compensation laws, or any other laws pertaining to the employer/employee relationship, and neither Party will not withhold on behalf of the other Party or any of its representatives any sums for income tax, unemployment insurance, social security or any other withholding pursuant to any law or requirement, and all such payments and withholdings are the sole responsibility of the Party incurring such payments or withholdings and its representatives.

6. Assignability. This Agreement may not be assigned by Developer without the prior written consent of [***], which may be withheld for any reason or no reason. [***] may not assign its rights under this Agreement without Developer’s prior approval, which cannot be unreasonably withheld, delayed or conditioned except (i) in connection with the sale of all, or substantially all of the assets or equity interests of [***] (ii) to one or more of its Affiliates, or (iii) the granting of a security interest and/or collateral assignment by [***] of its rights and obligations under this Agreement to [***]’s senior lenders. Notwithstanding the foregoing, all the terms and provisions contained herein shall inure to the benefit of and shall be binding upon the Parties hereto and their respective heirs, legal representatives, successors and permitted assigns.

7. Covenants.

(a) Insurance. Developer shall maintain insurance with respect to any Development Tower (and the related Tower Assets and Site) with responsible and reputable insurance companies or associations in such amounts and covering such risks as is usually carried by companies of similar size in similar businesses and owning similar properties in the same areas in which Developer operates, provided that, commencing one (1) day after the delivery of any outstanding Designated Holdback Deliverable, Developer shall have the right to cancel insurance with respect to any Development Tower (and the related Tower Assets and Site) transferred to [***] at such time.

(b) Compliance with Anti-Corruption Laws.

(i) The Parties and its directors, officers, employees, representatives or other third parties acting on its behalf shall not pay, offer or promise to pay, or authorize the payment, directly or indirectly, through any other person or entity, of any monies or anything of value in violation of Applicable Law:

1. to any person or firm employed by, or acting for or on behalf of, any customer or potential customer, whether private or governmental, for the purposes of inducing or rewarding favorable action by the customer or potential customer in any commercial transaction;

2. established or maintained any fund or asset with respect to the Parties that has not be recorded in the books and records of Developer;

3. to any person or firm employed by, or acting for or on behalf of, any governmental entity (including state-owned or controlled entities or public international

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organizations) for the purposes of inducing or rewarding any action, or the withholding of any action, by such entity in any governmental matter; or

4. to any governmental official or employee (including employees of state-owned or controlled entities or public international organizations), political party or official of such party, or any candidate for political office, for the purposes of inducing or rewarding favorable action (or the withholding of action) or the exercise of influence by such official, party or candidate in any commercial transaction or in any governmental matter.

(ii) Neither Party, its subsidiaries, Affiliates nor its officers, directors, employees is or will become an official or employee of a government within the Territory during the Term, unless such person obtains the prior written approval of the other Party. Each owner, partner, officer, director or employee of a Party, and of any parent or subsidiary company of such Party, has complied with all applicable anti-corruption, anti-money laundering, anti-terrorism and economic sanction and anti-boycott laws of the Territory and any other jurisdiction having jurisdiction over such Parties.

(iii) None of the Parties, or its subsidiaries, Affiliates, or any officer, director, agent, employee or other person or entity acting on Developer’s behalf, has violated or will violate, directly or indirectly, any applicable provision of the Anti-Corruption Law, or of any applicable anticorruption laws and regulations of the Territory, and none of them has used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity, made, offered or authorized any unlawful payment to foreign or domestic government officials or employees, or made, offered or authorized any unlawful bribe, rebate, payoff, influence payment, kickback or other similar unlawful payment. Each Party has established reasonable internal controls and procedures reasonably designed to ensure compliance with the Anti-Corruption Law and any applicable anticorruption laws of the Territory and any other applicable jurisdiction.

(iv) In the event a Party has reasonable evidence that a breach of any of the representations and warranties and covenants in subsections 7(b)(i) through (b)(iii) above has occurred or will occur, such Party shall have the right to reasonably audit the other Party in connection with such purported breach, in order to satisfy itself that no breach has occurred. Each Party shall fully cooperate in any audit conducted by or on behalf of the other Party.

(v) In the event of a evidenced breach of any of the covenants in subsections 7(b)(i) through (b)(iii) above, this Agreement may be terminated by the non-defaulting Party upon delivery to the other Party of written notice of termination, and the non-defaulting Party shall have the right to seek for damages and [***] additionally may seek fir reimbursement of Milestone Payments paid by [***] prior to the date of breach or termination with respect to any affected Development Tower. Each Party shall indemnify and hold the other Party harmless against any and all claims, losses or damages arising from or related to any such breach by other Party or the non-defaulting Party termination of the Agreement, or both.

(vi) In no event shall any Party be obligated under this Agreement to take any action or omit to take any action, which action or omission such Party believes, in good faith, would cause it to be in violation of any law, including the Anti-Corruption Laws.

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(c) Report; Inspection. Developer shall report to [***] on a bi-weekly basis concerning the status of development and construction of the Development Towers. [***], at its expense and upon reasonable prior written request during normal business hours, shall have the right to inspect and review all information pertaining to the Development Towers.

8. Representations and Warranties; Survival. Anything in this Agreement to the contrary notwithstanding, the representations and warranties of the Parties contained in or made pursuant to this Agreement shall survive the applicable Closing and shall remain operative and in full force and effect for a period of twelve (12) months after the applicable Closing Date, regardless of any investigation or statement as to the results thereof made by or on behalf of either Party hereto except that the representations and warranties contained in Section 3(a) and 3(b) (Organization; Authorization; Enforceability), Section 3(f) (Broker), Section 3(i) (Material Agreements), Section 3(j) (Environmental Matters), Section 3(k) (Bankruptcy Matters), Section 3(l) (Taxes), Section 3(m) (Anti-Corruption Laws), Section 4(a) (Organization and Business; Power and Authority; Effect of Transaction), Section 4(d) (Broker or Finder), Section 4(e) (Financial Capacity), Section 4(f) (Proceeds), Section 4(g) (Bankruptcy), Section 4(h) (Anti-Corruption Laws) and Section 4(i) (No Third Parties Rights) will survive the applicable Closing and will remain in full force and effect until the expiration of the applicable statute of limitations relating thereto. If Developer or [***], as applicable, deliver written notice to the other Party of an indemnification claim for a breach of a representation, warranty or covenant under this Agreement within the survival period, such claim shall survive until final settlement or judgment of such claim.

9. Indemnification by Developer. Developer shall indemnify, defend and hold [***] and [***]’s employees, members, directors, officers and agents (collectively, “[***] Indemnified Parties”) harmless from and against, and agree promptly to defend [***] from and reimburse [***] Indemnified Parties for, any and all losses, damages, costs, expenses, liabilities, obligations and claims of any kind (including, without limitation, reasonable fees and expenses of attorneys, accountants, and other experts and those incurred to enforce the terms of this Agreement (collectively, “Losses”) which [***] Indemnified Parties may at any time incur, or become subject to, in connection with:

(a) any breach or inaccuracy of any of the representations and warranties made by Developer in or pursuant to this Agreement;

(b) any failure by Developer to carry out, perform, satisfy and discharge any of its covenants, agreements, undertakings, liabilities or obligations under this Agreement;

(c) any civil claims or labor claims affecting the Development Towers (and the related Tower Assets and Sites) and arising prior to the Closing of such Development Towers;

(d) any obligation or liability of Developer (contingent or otherwise) not explicitly assumed by [***] pursuant to this Agreement; and

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(e) any suit, action or other proceeding brought by any Authority or Person in any way related to any of the foregoing matters occurred prior to the applicable Closing of the relevant Development Towers.

10. Indemnification by [***]. [***] shall indemnify and hold Developer and Developer’s employees, shareholders, directors, officers and agents (collectively, “Developer Indemnified Parties”) harmless from and against, for any and all Losses which Developer Indemnified Parties may at any time incur, or become subject to, and agrees to promptly defend Developer Indemnified Parties from and reimburse Developer Indemnified Parties for, any and all Losses which Developer Indemnified Parties may at any time suffer or incur, or become subject to, as a result of or in connection with:

(a) any breach or inaccuracy of any representations and warranties made by [***] in or pursuant to this Agreement;

(b) any failure by [***] to carry out, perform, satisfy and discharge any of its covenants, agreements, undertakings, liabilities or obligations under this Agreement;

(c) any obligation or liability of [***] (contingent or otherwise) not explicitly assumed by Developer pursuant to this Agreement; and

(d) any suit, action or other proceeding brought by any Authority or Person in any way related to any of the foregoing matters.

11. Claims.

(a) Notice of Claims. If an indemnified Party believes that it has suffered or incurred any Loss for which it will seek indemnification from the indemnifying Party pursuant to this Agreement, including as a result of any legal action instituted by a third party, it shall notify the indemnifying Party, in writing, within thirty (30) days of becoming aware that it has suffered such Loss or of such third party action, describing such Loss in reasonable detail and referring to the provisions of this Agreement in respect of which such Loss shall have occurred. If the defense is to be submitted prior to the thirty (30) day term agreed herein then such term shall be reduced to the term granted by Applicable Law to submit a defense minus five (5) Business Days.

(b) Defense of Third Party Claims. The indemnifying party shall have the right to conduct and control, through counsel of its own choosing, reasonably acceptable to the indemnified Party, any third party legal action or other claim, but the indemnified Party may, at its election, participate in the defense thereof at its sole cost and expense; provided, however, that the defense leader shall continue to be the indemnifying Party and any action or defense by the indemnified Party shall be previously approved by writing by the indemnifying Party or else the indemnified Party will lose its right to recover Losses; provided, however, that if the indemnifying Party shall fail to defend any such legal action or other claim, then the indemnified Party may defend, through counsel of its own choosing, such legal action or other claim, and (so long as it gives the indemnifying Party at least fifteen (15) days’ notice of the terms of the proposed settlement thereof and permits the indemnifying Party to then undertake the defense thereof) settle such legal action or other claim and to recover the amount of such settlement or of any judgment

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and the reasonable costs and expenses of such defense. The indemnifying Party may compromise or settle any such legal action or other claim without the prior written consent of the indemnified Party. The indemnified and indemnifying Parties shall cooperate in the defense or prosecution thereof.

12. Termination; Remedies; Expiration. In addition to any remedies expressly provided elsewhere in this Agreement:

(a) In the event that (i) any of the representations and warranties of Developer contained herein, was materially incorrect when made, (ii) Developer fails to comply with any covenant or obligation in any material respect set forth herein, and shall not have cured, or taken adequate measures to remedy the breach, the same within thirty (30) days of receipt of prompt written notice from [***] of the same then, in any such event, [***] shall be entitled (A) to terminate this Agreement with respect to the affected Tower (and the related Tower Assets and Site), (B) to pursue all legal and equitable remedies against Developer for such uncured default or breach by Developer, including specific performance (Developer hereby acknowledging that each Site is unique and that [***] may have no adequate remedy at law if Developer breached this Agreement), and/or (C) to seek recovery from Developer for the Milestone Payment(s) paid by [***] prior to the date of such breach or termination with respect to the affected Development Tower.

(b) In the event that any of the representations and warranties of [***] contained herein was materially incorrect when made or [***] fails to comply with any covenant or obligation in any material respect set forth herein, and [***] shall not have cured, or taken adequate measures to remedy the breach, the same within thirty (30) days of receipt of prompt written notice from Developer of the same, then, in such event, Developer shall be entitled to terminate this Agreement and Developer shall not have a right to seek or procure specific performance, any rights to which Developer specifically waives.

(c) This Agreement shall terminate upon the expiration of the Term unless extended by the Parties pursuant to Section 1(b).

(d) The rights and obligations of the Parties, including all rights and obligations of indemnification, shall survive the expiration or termination of this Agreement unless the Party entitled to the benefit of any such right or obligation waives in writing its entitlement thereto.

13. Fees, Expenses and Other Payments. Each Party will be responsible for its own costs and expenses incurred in the negotiation and completion of the transactions contemplated herein, or the performance of its respective obligations hereunder, including legal and other advisory fees.

14. Notices. All notices and other communications which by any provision of this Agreement are required or permitted to be given shall be given in writing as set forth below. All notices or other communications which are required or otherwise delivered hereunder shall be deemed to be sufficient and duly given if contained in a written instrument (a) personally delivered or sent by telecopier, (b) sent by internationally recognized overnight courier guaranteeing next or second Business Day delivery, or (c) electronic mail (i.e., e-mail), but only for technical issues

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relating to the Development Towers (and the related Tower Assets and Sites). Any such notice or communication shall be deemed to have been received (i) when delivered, if personally delivered or sent by telecopier (with confirmation of transmission) provided, however, that the delivery date is a Business Day or else it will be deemed to have been delivered on the next Business Day; (ii) on the third or fourth Business Day after dispatch, if sent by internationally recognized, overnight courier guaranteeing first or second Business Day delivery, as applicable; and (iii) when sent by electronic mail if sent during the normal business hours of the recipient (if not sent during the normal business hours of the recipient, then on the next Business Day) provided, that proof of delivery is obtained by the sender. Delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of this Agreement or of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of a manually executed counterpart thereof.

			
	 	Notice to [***]:	c/o [***]
	 	 	Attn: [***]
	 	 	Telecopier: [***]
	 	 	Email: [***]
	 	 	 
	 	Notice to Developer:	c/o Tower One Wireless
	 	 	600-535 Howe Street, Vancouver, BC,
	 	 	Canada, V6C-2Z4
	 	 	Attn: Alejandro Ochoa
	 	 	email: a.ochoa@toweronewireless.com
	 	 	Email: aochoa@toweronewireless.com

15. Dispute Resolution. If a dispute arises out of or in connection with this Agreement or in the performance, validity or enforceability of this Agreement, including any question regarding its existence or termination (including non-contractual claims arising out of this Agreement) (“Dispute”), the senior management of each of the parties hereto shall meet to attempt to resolve such Dispute within twenty (20) days following the date on which a party provides written notice to the other party of the existence of such Dispute (which written notice shall provide a reasonably detailed explanation of the basis for the Dispute). In the event such Dispute cannot be resolved by senior management of the parties within such twenty (20) day period, then the parties hereby agree that such Dispute shall be finally resolved by arbitration. Disputes submitted to arbitration shall be resolved in accordance with the Rules of International Centre for Dispute Resolution (“ICDR”), which rules are deemed to be incorporated by reference into this clause. The tribunal shall consist of three arbitrators of whom, one shall be appointed by each of the parties hereto and the third shall be appointed by the two arbitrators. The place of arbitration shall be New York, New York. The language of the arbitration shall be English. The tribunal shall give a written record of the award and reasons therefor.

16. Construction. All the Parties to this Agreement have participated fully in the negotiation and preparation hereof and, accordingly, this Agreement shall not be more strictly construed against any one of the Parties hereto.

17. Severability; Counterparts, Governing Law. If any term or provision of this Agreement shall be held or deemed to be, or shall in fact be, invalid, inoperative, illegal or

19

unenforceable as applied, such circumstance shall not have the effect of rendering the provision or provisions in question invalid, inoperative, illegal or unenforceable but this Agreement shall be reformed and construed in any such jurisdiction or case as if such invalid, inoperative, illegal or unenforceable provision had never been contained herein. In any case, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby, but rather shall be enforced to the greatest extent permitted by law. This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, binding upon all of the Parties. In pleading or proving any provision of this Agreement, it shall not be necessary to produce more than one set of such counterparts. Delivery of an executed counterpart of a signature page to this Agreement by electronic mail with reception acknowledgment by recipient shall be effective as delivery of a manually executed counterpart of this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by, and construed in accordance with the laws of the State of New York, without regard to its internal conflict of law principles.

18. Interpretation. In construing this Agreement, the singular shall be held to include the plural, the plural shall include the singular, the use of any gender shall include every other and all genders, and captions and paragraph headings shall be disregarded.

19. No Waiver. Except as otherwise provided in this Agreement, any failure of any of the Parties to comply with any obligation, representation, warranty, covenant, agreement or condition herein may be waived by the Party entitled to the benefits thereof only by a written instrument signed by the Party granting, such waiver, but such waiver or failure to insist upon strict compliance with such obligation, representation, warranty, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

20. No Third-Party Beneficiaries. Except as otherwise expressly provided herein, nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any person, firm, corporation, partnership, association or other entity, other than the Parties hereto and their respective legal representatives and permitted successors and assigns, any rights or remedies under or by reason of this Agreement.

21. Entire Agreement. This Agreement and the other transaction documents constitute the entire agreement between the Parties with respect to the subject of this Agreement and cancel all prior memorandums, discussions and agreements with respect to such subject matter, and no alteration, modification, amendment or interpretation of this Agreement shall be binding unless it is in writing and signed by the Party against whom enforcement is sought.

22. English Language. This Agreement has been negotiated and executed by the Parties in English. In the event any translation of this Agreement is prepared by a Party for convenience or for any other purpose, the provisions of the English version shall prevail.

23. Further Assurances. In addition to the acts and deeds recited herein and contemplated to be performed, executed and/or delivered by any Party hereto, each Party hereto agrees to perform, execute and deliver, but without any obligation to incur any additional liability

20

or expense, any further deliveries and assurances as may be reasonably necessary to effectuate the provisions contained herein or contemplated hereby.

(signature page follows)

21

IN WITNESS WHEREOF, the undersigned have executed this Development Agreement as of the date first above written.

Developer:

TOWER THREE SAS

By: ____________________________________ 
Name: Alejandro Ochoa 
Title: CEO

[***]:

[***]

By: ____________________________________ 
Name: [***] 
Title: Authorized Signatory

Appendix A

Definitions

Action means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or in equity.

Affiliate means with respect to a Person, (a) any other Person at the time directly or indirectly controlling, controlled by or under direct or indirect common control with such Person, (b) any executive officer or director of such Person, (c) with respect to any partnership, joint venture, limited liability company, or similar entity, any general partner or manager thereof, and (d) when used with respect to an individual, shall include any member of such individual’s immediate family or a family trust. For purposes of this definition, “control”, when used with respect to any specified person, means the possession, direct or indirect, of the power to vote 50.1% or more of the voting stock of such person or the power to direct the management and policies of the person whether through the ownership of voting securities or by contract; and the term “controlled” has the meanings correlative to the foregoing.

Allocable Purchase Price means with respect to each Tower, the Tower Cash Flow as of the Closing Date multiplied by[***] .

Anchor Tenant Lease means a Tenant Lease where the Qualified Tenant requested the construction of the Development Tower (as distinguished from a later request to co-locate on an existing Development Tower).

Anti-Corruption Laws means the FCPA, and all applicable anti-corruption, anti-money laundering, anti-terrorism and economic sanction and anti-boycott laws of the United States, the Territory and any jurisdiction where Developer transacts business or where Development Towers (and related Tower Assets and Sites) are located.

Applicable Law means all applicable provisions of all (i) constitutions, treaties, statutes, laws (including the common law), codes, rules, regulations, ordinances or orders of any Authority, (ii) governmental approvals, and (iii) orders, decisions, injunctions, judgments, awards and decrees of or agreements with any Authority, in each case, in the Territory or the jurisdiction where the Development Tower (and the related Tower Assets and Sites) to which such Law relates are located.

Applicable Permits means the following permits, if applicable (and such other permits to the extent each is required for construction or operation of a particular Development Tower and its related Site under Applicable Law): (i) location license; (ii) civil aviation license; (iii) environmental report and permit; (iv) Certificado RETIE / NIC; and (v) PSIO license.

Argentina Development Agreement means that certain Development Agreement, dated as of the Effective Date, by and between[***] and Evolution Technology S.A.

Argentina Development Tower means a “Development Tower” as defined in the Argentina Development Agreement.

Asset Purchase Agreement has the meaning set forth in Appendix B.

Assignment and Assumption of Governmental Authorizations shall have the meaning set forth in Section 2(e)(v).

Assignment and Assumption of Ground Lease shall have the meaning set forth in Section 2(e)(iii).

Assignment and Assumption of Related Contracts shall have the meaning set forth in Section 2(e)(vi).

Assignment and Assumption of Tenant Lease shall have the meaning set forth in Section 2(e)(iv).

Authority means any nation or government (in the federal, state or local levels, or any other political subdivision thereof) having jurisdiction over the relevant Person; any entity, authority or body, including any government authority, agency, department, board, commission or instrumentality in the Territory, or the jurisdiction where the Development Towers (and the related Tower Assets and Sites) to which such Authority relates are located, and, if relevant or appropriate, in any other country; any court, tribunal or arbitrator, exercising executive, legislative, judicial, regulatory or administrative functions of, over, or pertaining to any of the Development Towers (and the related Tower Assets and Sites).

Business Day means any day other than Saturday, Sunday or a day on which banking institutions in New York, New York or the Territory are required by law to be closed.

Commence, Commences or Commenced shall mean, with respect to any Tenant Lease, the obligation to pay rent under such Tenant Lease has accrued and is payable by the Tenant, or Tenant has substantially completed installation of its equipment on the Tower relating thereto.

Closing shall have the meaning as set forth in Section 2(b). 

Closing Date shall have the meaning as set forth in Section 2(b). 

Closing Date Payment shall have the meaning as set forth in Section 2(b). 

Collateral Documents has the meaning set forth in Appendix B.

Cure Period shall have the meaning set forth in Section 2(d). 

Defect Site shall have the meaning set forth in Section 2(d).

Developer Indemnified Parties shall have the meaning set forth in Section 10.

Development Tower has the meaning set forth in the second Recitals.

Due Diligence Items means true, correct and complete copies of each of the following items as are in Developer’s possession or control, including electronic versions (if any) with respect to any Development Towers (and the related Tower Assets and Sites):

a. all environmental reports and environmental permits relating to the Sites;

b. the Ground Lease Options, Ground Leases, Tenant Leases and Related Contracts;

c. the most recent surveys, title commitments, title policies or abstracts of title, together with all copies of all documents and instruments (as recorded where applicable) referred to or identified in the title commitment, surveys, title policies or abstracts, including, but not limited to, all lien instruments, leases, plats, reservations, restrictions and easements, and all curative documentation executed subsequent to the commitment, policy or abstract related to the Sites;

d. if applicable, the most recent zoning permits, variances, building and any other Governmental Authorizations, which have been issued or for which Developer has made application, and the applications, responses, approvals and registration numbers submitted or received for the Sites;

e. current Tenant contact information for the Sites;

f. if applicable, a list of all tax ID numbers (or equivalent information in the relevant jurisdiction) for the Ground Lessors under the Ground Leases;

g. any available financial information (including property tax information) pertaining to the Development Tower; and

h. copies of any documents, structural analyses, certifications and/or drawings and related site plans relating to the construction and condition of the Development Towers or the Sites.

Earn-Out Amount shall mean (i) with respect to any Eligible Lease that has Commenced on or prior to the twelve (12) month anniversary of the Closing Date, an amount equal to the Tower Cash Flow generated by such Eligible Lease multiplied by [***] and (ii) with respect to any Eligible Lease that has Commenced after the twelve (12) month anniversary of the Closing Date and prior to the twenty-four (24) month anniversary of the Closing Date, an amount equal to the Tower Cash Flow generated by such Eligible Lease multiplied by [***].

Earn-Out Payment Date has the meaning set forth in Section 2(c).

Eligible Lease means, with respect to any Development Tower, any Included Tenant Lease that has Commenced during the twenty-four (24) month period following the Closing Date applicable to such Development Tower.

Eligible Lease Commencement Date means with respect to any Eligible Lease, the date such Eligible Lease has Commenced.

Environmental Health and Safety Requirements means, to the extent applicable to the relevant Person, all federal, state and local statutes, regulations, ordinances and other provisions having the force or effect of law, all judicial and administrative orders and determinations, all contractual obligations and all common law concerning public health and safety, worker health and safety, indigenous rights and pollution and protection of the environment and, natural protected areas, including without limitation, all those relating to the presence, use, production, generation, handling, transportation, treatment, storage, disposal, distribution, labeling, testing, processing, discharge, release, control, or cleanup of any hazardous materials, substances or wastes, chemical substances or mixtures, pesticides, pollutants, contaminants, toxic chemicals, petroleum products or by products, asbestos, polychlorinated biphenyls, noise or radiation, each as amended and as now or hereafter in effect; without limiting the foregoing, Environmental Health and Safety Requirements shall include all permits required for the construction and operation of Towers whether on protected ground or non-protected ground, including permits acquired from the relevant environmental authority and/or any other authorized environmental delegated authority.

Environmental Permit means any Governmental Authorization required by or pursuant to any Environmental Health and Safety Requirements, any indigenous territories or natural protected areas.

FCPA means the Foreign Corrupt Practices Act of 1977, as amended. 

Fifth Milestone shall have the meaning set forth in Section 2.

First Milestone shall have the meaning set forth in Section 2. 

Fourth Milestone shall have the meaning set forth in Section 2.

Governmental Authorizations means all approvals, permits, licenses, authorizations, decrees, registrations, certificates of occupancy, certificates of completion, zoning permits, variances, agreements and similar approvals issued in writing by any Authority to use or operate a Development Tower (and the related Tower Assets and Sites), as well as any extensions or renewals thereof, and any pending applications therefore, including permits and approvals required (where applicable) by Applicable Law.

Ground Lease shall mean any lease, easement, right of way, license, permit or other right of use agreement pursuant to which the lessee or tenant thereunder holds a leasehold interest, leasehold estate or other real property interest, including, without limitation, the associated access easements and rights of way, and pursuant to which the lessee or tenant thereunder has the right to construct, own and operate a telecommunications tower on the land relating thereto. For the avoidance of doubt the Ground Leases include the right to place the Site in the public right of way (i.e., by way of easement or equivalent rights).

Ground Lease Option shall mean an option to enter into a Ground Lease.

Ground Lessor means the “grantor” or “lessor” or “landlord” or “licensor” under the Ground Lease.

Hazardous Substance means any substance that is deemed by any Environmental Health and Safety Requirements to be “hazardous,” “toxic,” a “contaminant” or “waste” or is otherwise regulated by any Environmental Health and Safety Requirements.

Included Tenant Lease means a Tenant Lease with a Qualified Tenant that meets all of the following criteria as the date of determination: (a) that is executed in writing and in full force and effect in all material respects, (b) that is for a term no less than ten (10) years, and will not expire within three (3) months from the date hereof in accordance with its terms, (c) is not on a “month-to-month” term, (d) the tenant thereunder is not currently involved in a bankruptcy proceeding (e) that has not otherwise been terminated (and has not sent any notice of termination), (f) which has Commenced and (g) with respect to which there are no material default on the part of lessor or the tenant thereunder, including, without limitation, any monetary default by such tenant for greater than sixty (60) days. For the avoidance of doubt, any amendment to an Included Tenant Lease which meets the foregoing requirements, where such amendment provides for the installation and/or operation of fiber and/or microcells.

Knowledge (or words of similar import) of Developer or [***] shall mean both the actual knowledge and knowledge that Developer or [***], as applicable, or its respective executive officers should reasonably be expected to acquire by ordinary attentiveness to duty and by reasonably prudent inquiry given the nature of such individual’s position and responsibilities.

Lien shall mean any of the following: mortgage; lien (statutory or other); or other security agreement, arrangement or interest; hypothecation, pledge or other deposit arrangement; assignment; charge; levy; executory seizure; attachment; garnishment; encumbrance (including any easement, exception, reservation or limitation, right of way, and the like); conditional sale, title retention or other similar agreement, arrangement, device or restriction; preemptive or similar right; any financing lease involving substantially the same economic effect as any of the foregoing; the filing of any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction; restriction on sale, transfer, assignment, disposition or other alienation; or any option, equity, claim or right of or obligation to, any other Person, of whatever kind and character.

Losses shall have the meaning set forth in Section 9.

Material Adverse Effect means a change, event or occurrence that, individually or together with any other change(s), event(s) or occurrence(s), has had or would be reasonably expected to have a material adverse change or effect on the cash flow position, results of operations or prospects of Developer or the Development Towers, as applicable.

Mexico Development Agreement means that certain Development Agreement, dated as of the Effective Date, by and between [***] and Comercializadora Mexmaken S.A. de C.V.

Mexico Development Tower means a “Development Tower” as defined in the Mexico Development Agreement.

Minimum Conditions mean the conditions that, unless expressly waived by [***], must be satisfied by Developer with respect to each Development Tower at Closing (or earlier on a

Milestone Payment Date associated with the Milestone specified on Exhibit A) and that are set forth in Exhibit A.

Milestone Payment Date shall have the meaning set forth in Section 2(c).

Organic Document shall mean, (a) with respect to a Person which is a corporation, its charter, its by-laws and all shareholder agreements, voting trusts and similar arrangements applicable to any of its capital stock, (b) with respect to a Person which is a partnership, its agreement and certificate of partnership, any agreements among partners, and any management and similar agreements between the partnership and any general partners (or any Affiliate thereof) and (c) with respect to a Person which is a limited liability company, its certificate of formation, its limited liability company agreement, any agreements among members of such Person and similar agreements.

Permitted Liens shall mean (a) Liens on real estate or other property for taxes, assessments, governmental charges or levies not yet delinquent and those the non-payment of which is being diligently contested in good faith by appropriate proceedings and for which adequate reserves have been set aside on the books of Developer, but only so long as no foreclosure, distraint, sale or similar proceedings have been commenced with respect thereto; (b) Liens of carriers, warehousemen, mechanics, vendors (solely to the extent arising by operation of law), carriers, workmen, repairmen, laborers and materialmen or other similar encumbrances incurred in the Ordinary Course of Business for sums not yet due or being diligently contested in good faith, if reserves or appropriate provisions shall have been made therefor; (c) easements, rights-of-way, zoning restrictions, licenses, reservations or restrictions on use and other similar encumbrances on the use of real property which do not materially interfere with the ordinary use of such property in the same or substantially similar manner as such is currently used; (d) existing building restrictions, ordinances, easements of roads, privileges, or rights of public service companies; and (e) mortgages or other liens made or suffered by and through a Ground Lessor on or affecting real property of which any Site is a part.

Person means any natural individual or any entity including any governmental authority or body.

[***] Indemnified Parties shall have the meaning set forth in Section 9.

Purchase Price shall have the meaning set forth in Section 2(b).

Qualified Tenant means [***] or any other Tenant approved by [***].

Related Contract means an agreement between Developer or an Affiliate and a third party not affiliated with Developer, pursuant to which a third party provides goods and services to, or which otherwise relates to, the Site (e.g., a maintenance agreement).

Search Ring means a physical location within 50 meters of a point expressed as a longitude and latitude within which operators would install their telecommunications equipment if a Development Tower would be available in such search ring.

Second Milestone shall have the meaning set forth in Section 2.

Site shall have the meaning set forth in Section 2(a).

Site Acquisition Map means a map showing an area for the installation of wireless antennas as proposed by a carrier.

Tenant means a lessee or tenant under a Tenant Lease.

Tenant Lease means any lease agreement pursuant to which a leasehold interest, leasehold estate or other real property interest on a Development Tower has been demised to a Qualified Tenant, including the associated access easements and rights of way.

Territory shall have the meaning set forth in the Recitals. 

Third Milestone shall have the meaning set forth in Section 2. 

Tower means a wireless communications tower.

Tower Assets shall mean, individually, and collectively, all of the real and personal tangible and intangible assets, properties and rights owned by Developer that acts as seller under the Asset Purchase Agreement applicable to the relevant Development Towers, wherever situated and located, that are used in, or accounted for as a part of, the ownership and operation of relevant Development Towers and their Sites, including without limitation the following:

	  	1.      	

   the Towers located at the Sites;

		 	

   
 
	  	2.      	

   all buildings, structures, improvements and fixtures located at the Sites and owned (or proposed to be used) by Developer in connection with the ownership and operation of the Tower Assets (the “Improvements”);

		 	

   
 
	  	3.      	

   all physical assets (other than Towers, Improvements and other real property and interests therein) owned by Developer and located at the Sites (the “Equipment”);

		 	

   
 
	  	4.      	

   all Ground Lease Options;

		 	

   
 
	  	5.      	

   all Ground Leases related to the Sites;

		 	

   
 
	  	6.      	

   all easements relating to the Sites;

		 	

   
 
	  	7.      	

   all Related Contracts relating exclusively to the Sites;

		 	

   
 
	  	8.      	

   all Tenant Leases relating to the Sites;

		 	

   
 
	  	9.      	

   (i) the security deposits (if any) from tenants paid to Developer under the Tenant Leases and to ground lessors under the Ground Lease Options or Ground Leases relating to the Sites (collectively, the “Security Deposits”), (ii) all rights under any Governmental Authorizations held by Developer with respect to the Sites or the operation of the Tower Assets, (iii) utility deposits and reservation fees paid by or on behalf of Developer with respect to the Sites; (iv) any condemnation or eminent domain proceeds received by Developer after the date hereof with

	 	 	

   respect to the such Site; and (v) any insurance proceeds, and causes of action related to damaged or destroyed property included in the Tower Assets that has not been repaired or replaced prior to Closing; and

	 	 	

   
 
	  	10.      	

   the Due Diligence Items.

Term shall have the meaning set forth in Section 1(a).

Tower Cash Flow means, with respect to any Development Tower, the difference of the Tower Revenue minus an amount equal to the product of [***] times the sum of (i) the aggregate monthly amount of easement “rent” or ground rent (including any revenue share payments payable to the landlords thereunder or any third parties) as of the date of determination, and (ii) monthly operating expenses including and not limited to: (a) monitoring and utility expenses (including telephone charges) for those Development Towers requiring monitoring or lighting under either Applicable Law, (b) any discounts to Tenants or third parties, (c) landlord requirements, (d) zoning requirements, or any other Applicable Law, (e) the monthly amount of real estate taxes and personal property taxes (or similar type taxes), including municipal Taxes, if any, (f) insurance cost of US [***] per month; (g) maintenance expense of US [***] per month; (h) security expense, (i) municipal inspection fees, and (j) any other expense related or attributed to that Development Tower. All aspects of Tower Cash Flow as of any date, will be calculated using the official interbank exchange rate as of such date.

Tower Revenue means, as of any date (the “Date of Measurement”) with respect to any Tower, an amount equal to the product of twelve (12) times the monthly rent as of the date of determination of each Included Tenant Lease; provided, however, such amount (i) shall not include any security deposits, prepaid rents (unless taken into income by [***]), refunds to tenants, sales, property, excise or similar taxes (including VAT) imposed by Governmental Authorities and collected from subtenants, pass through expenses collected from any tenants, to the extent that such pass through expenses are not deducted from Tower Cash Flow, and any tenant’s reimbursement of ground rent if land underlying the Site has been purchased, and (ii) shall include, in the case of prepaid rent, an apportioned amount of such prepaid rent attributable to such monthly period. All aspects of Tower Revenue as of any date, will be calculated using the official interbank exchange rate as of such date.

Use Right means a twenty (20) year exclusive use right (in the form of a lease) over the land on which a Tower is located. No rent or lease payments shall be payable by [***] during the term of the Use Right. For the avoidance of doubt, pursuant to a Use Right, Purchaser will be only granted the right to use such real property and not the ownership as the owner of the real property retains the ownership); provided, however, that the Purchaser may have the option to purchase such land on which a Tower is located, at any time during the thirty (30) year Use Right term, at one (1) times the Tower Cash Flow as of the applicable Closing Date of such Tower.

VAT means value added tax or similar value added tax in the relevant jurisdiction.

Appendix B

At each Closing, Developer shall execute and deliver all of the following documents, each in form and substance reasonably acceptable to [***] (collectively, the “Collateral Documents”):

(i) Form of Asset Purchase Agreement. A duly executed form of Asset Purchase Agreement (the “Asset Purchase Agreement”) that shall contain representations, warranties, covenants, closing conditions, and indemnities as set forth in the Colombia Purchase Agreement, in each case, as conformed to Applicable Law and approved by [***] and [***]’s local counsel.

(ii) Payment Certificate. An original certificate (a “Payment Certificate”) signed by an executive officer of Developer certifying that (A) the representations and warranties of Developer in this Agreement and the Asset Purchase Agreement relating to the Development Towers (and the related Tower Assets and Sites) are true and correct in all material respects as of the applicable Closing Date, and (ii) Developer has performed all agreements contained in this Agreement and the Purchase Agreement required to be performed by Developer at or before the applicable Closing.

(iii) Assignment and Assumption of Ground Leases. A duly executed and acknowledged original assignment and assumption of all of Developer’s right, title and interest in and to any Ground Lease to [***], in each instance in a form approved by [***], and [***]’s local counsel (the “Assignment and Assumption of Ground Lease”);

(iv) Assignment and Assumption of Tenant Leases. A duly executed and acknowledged original assignment and assumption of all of Developer’s right, title and interest in and to any Tenant Lease to [***], in each instance in a form approved by [***], and [***]’s local counsel (the “Assignment and Assumption of Tenant Lease”);

(v) Assignment and Assumption of Governmental Authorizations. If required by Applicable Law, a duly executed and acknowledged original assignment and assumption of all of Developer’s right, title and interest in and to any Governmental Authorizations to [***], in each instance in a form approved by [***], and [***]’s local counsel (the “Assignment and Assumption of Governmental Authorizations”);

(vi) Assignment and Assumption of Related Contracts. A duly executed and acknowledged original assignment and assumption of all of Developer’s right, title and interest in and to any Related Contracts, if any, to [***], in each instance in a form approved by [***], and [***]’s local counsel (the “Assignment and Assumption of Related Contracts”);

(vii) Third Party Consents. Such third party consents required for the transfer of the Development Towers (and the related Tower Assets and Sites) from Developer to [***].

(viii) Lien Releases. Duly executed lien releases, dated as of the applicable Closing Date, evidencing the release of liens on or other security interests in the Tower

Assets, if any, other than Permitted Liens, and confirmatory payoff letters from the applicable secured parties.

(ix) Due Diligence Items. Originals or copies of all Due Diligence Items.

(x) Resolutions and Organic Documents. A certificate of Developer signed by an executive officer of such entity, certifying to and attaching (a) a copy of resolutions of the governing body of such entity authorizing the execution, delivery and performance of this Agreement and the other Collateral Documents by such entity, which resolutions were duly adopted and are in full force and effect, (b) the Organic Documents of such entity (c) a certificate from the applicable Authority that such entity is in good standing setting forth each of the persons executing and delivering this Agreement and Collateral Documents to which such entity is a party who has or have the authority to execute, deliver and consummate this Agreement and each other Collateral Document; and

(xi) Other Documents. Such other documents as may be reasonably requested by [***] or its local counsel in order to effectuate and carry out the intent of this Agreement.

EXHIBIT A

MINIMUM CONDITIONS

The following “Minimum Conditions” apply to Development Towers located in each of the Territories.

	

Each Development Tower shall be on owned land, easement land or leased land with no revenue share payable to ground owner, with a minimum initial term of [***] years and a minimum total term [***] years and clean recorded chain of title (First Milestone).

	

Each Development Tower shall have all Applicable Permits and governmental authorization obtained in accordance with FCPA laws and regulations as well as local and Federal laws and regulations.

	

Development Towers shall be constructed for Qualified Tenants (Second Milestone).

	

Each Development Tower shall have a signed Anchor Tenant Lease, with a minimum initial non-cancellable term of [***] years in length and for which upon construction the applicable Qualified Tenant would be obligated to commence rental payments (Third Milestone).

	

Rent shall be payable in local currency.

	

Development Towers shall be designed with ground and structure capacity for three (3) carriers. Tower should be designed in accordance with the then in place TIA/EIA-222 standards or any other applicable standards in the Territory and be in compliance with local building code requirements.

	

Development Towers shall have permanent power source established for the Anchor Tenant with a meter and with capacity to expand utility power for up to three additional tenants or the Development Tower shall already have permanent utility power established for the Anchor Tenant Lease with a meter and with capacity to expand utility power for up to three additional tenants or the Anchor Tenant is obligated to provide such permanent power source.

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