Document:

EX-10.2

 Exhibit 10.2 

AMENDED AND RESTATED LAND LEASE 

THIS AMENDED AND RESTATED LAND LEASE (this “Lease”) is entered into as of the 14th day of October, 2016 (“Effective
Date”), between THE MOHEGAN TRIBE OF INDIANS OF CONNECTICUT, a federally recognized Indian tribe (as lessor or landlord under this Lease being hereinafter referred to as the “Tribe”), and the MOHEGAN TRIBAL GAMING
AUTHORITY, an instrumentality of the Tribe (as lessee or tenant under this Lease being hereinafter referred to as the “Authority”). 

RECITALS: 
 A. The Tribe is the
beneficial owner of land located in the State of Connecticut which is owned by the United States of America in trust for the benefit of the Tribe pursuant to the Tribe’s recognized powers of self-government and the statutes and ordinances of
the Tribe (the “Land”). 
 B. The Tribe, as lessor, and the Authority, as lessee, entered into that certain Land Lease
dated September 29, 1995, as amended by that certain Amendment dated September 29, 1995, that certain Amendment dated February 18, 1999, that certain Amendment dated March 6, 2007, and that certain Amendment dated as of
February 27, 2015, all of which were approved by the Secretary of the Interior pursuant to 25 U.S.C. § 415 (the “Existing Land Lease”). 

C. The Tribe adopted Chapter 7, Article VII of the Mohegan Tribe of Indians Code, entitled “Business Lease Ordinance” (the
“Tribal Ordinance”), pursuant to the Helping Expedite and Advance Responsible Tribal Homeownership (HEARTH) Act. Among other things, the HEARTH Act amended 25 U.S.C. § 415, which generally requires the United States
Secretary of the Interior to approve leases of all land held by the United States in trust for an Indian tribe. However, under the HEARTH Act, Indian tribes are permitted to approve such leases without approval by the Secretary of the Interior in
accordance with regulations of the Tribe reviewed and approved by the Bureau of Indian Affairs (“BIA”). The Tribal Ordinance was reviewed by the BIA and approved by the BIA on April 8, 2014. This Lease constitutes a
“Business Lease” within the meaning of the Tribal Ordinance and, after due application by the Authority as required by the Tribal Ordinance, has been duly approved by the Tribe in accordance with the Tribal Ordinance. All environmental
review requirements contained in Section 7-256 of the Tribal Ordinance have been satisfied with respect to this Lease because the use of the Premises, as hereafter defined, including the Improvements, as hereafter defined, are exempt from the
environmental review process described therein, including the need for the Tribe to prepare an environmental impact report, because (i) the leasing decision, by its nature, does not affect the environment since no physical disturbances to the
Premises, as hereafter defined, are expected, and (ii) the use of the Premises, as hereafter defined, and the Improvements, as hereafter defined, contemplated by this Lease were the subject of a completed federal environmental review under
federal law (i.e. the Mohegan Destination Resort as described in the Final Environmental Assessment Mohegan Destination Resort dated September 11, 1995) and, as to a small portion of the Premises adjacent to Sandy Desert Road, the subject of an
Environmental Site Assessment prepared in accordance with federal law and signed on December 14, 2014 and re-issued September 8, 2015. 

  
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 D. The Tribe and the Authority desire to enter into this Lease to amend and restate in its
entirety the Existing Land Lease. This Lease is being entered into pursuant to and in accordance with the provisions of the Tribal Ordinance and in furtherance of the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq. This Lease is
being entered into pursuant to the authority contained in Article IX, Section 2 and Article XIII, Section 1 of the Tribe’s Constitution and Ordinance No. 95 -7/15-1 of the Tribal Council and in reliance on the provisions of
Article XIII, Section 3 of the Tribe’s Constitution, for the purpose of enabling the Authority to obtain financing from time to time by the issuance of certain debt instruments to be secured by a leasehold mortgage on the Premises, as
hereinafter defined, thereby permitting the Authority to construct, equip and operate a gaming facility, resort, hotel and other related developments (the “Project”), which will promote the economic development and general welfare
of the Tribe. 
 NOW, THEREFORE, in consideration of the covenants and agreements of the parties contained in this Lease, and for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Tribe and the Authority agree as follows: 
 1.
Premises. The Tribe, in consideration of the rents reserved and the terms, conditions, covenants and agreements herein contained, hereby leases to the Authority, and the Authority hereby hires from the Tribe, the land located on the Mohegan
Reservation in the County of New London, and State of Connecticut, described on Exhibit A and depicted on Exhibit B attached to this Lease, together with all rights which apply to and/or benefit the land, whether now or hereafter
acquired, including all rights, privileges, tenements, licenses, hereditaments, rights-of-way, easements, utility use, appendages and appurtenances appertaining thereto, all betterments, additions, alterations, substitutions, replacements and
revisions thereof and thereto, and all proceeds and products of the foregoing, but subject to all rights-of-way, easements, restrictions and encumbrances of record, and the Improvements (as such term is defined in Section 18 hereof)
(collectively, the “Premises”). By entering into this Lease, the Authority accepts the Premises in the condition they are in as of the date of this Lease, as is, without warranty or representation of any kind as to the condition or
quality of the Premises. The Authority represents that the Premises, the improvements thereon, subsurface conditions, and the present uses and non-uses thereof, have been examined by the Authority, and the Authority accepts the same, without
recourse to the Tribe except as expressly provided in this Lease, in the condition and state in which they or any of them now are, without representation or warranty, express or implied in fact or by law, as to the nature, condition or usability
thereof or as to the use or uses to which the Premises or any part thereof may be put (except as set forth in this Lease) or as to the prospective income from, and expenses of operation of, the Premises. The Tribe warrants that the Project
constitutes a permitted use of the Premises under the laws of the Tribe. 
 The Premises are leased together with and subject to the
following: 
  

	 	(a)	The non-exclusive right of the Authority to construct, install, maintain, repair, replace, use and operate, in, on, over and across the Premises and any adjoining lands now or hereafter owned by, or in trust for, the
Tribe, including any portion of the Premises as to which this Lease is terminated by the Tribe in accordance with Section 2(d) hereof, such roads as may be required for reasonable access to and from the Premises. The Authority shall construct
and maintain at all times during the term of this Lease one or more paved roads providing such access to and from the Premises as may be reasonably required in order for the Authority to operate the Premises for its intended purposes.

  
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	 	(b)	The non-exclusive right of the Authority to acquire, construct, install, maintain, repair, replace, use and operate, in, on, over and across the Premises and any adjoining lands now or hereafter owned by, or in trust
for, the Tribe, including any portion of the Premises as to which this Lease is terminated by the Tribe in accordance with Section 2(d) hereof, such electric power, water, sanitary and storm sewer, and other utilities lines serving the Premises
as may be reasonably required in order for the Authority to operate the Premises for its intended purposes, subject to the approval of the Secretary, to the extent required by law, provided that such utilities lines shall be located, designed and
constructed in accordance with plans approved in advance by the Tribe, which approval shall not be unreasonably withheld or delayed. 

2. Rights Reserved to the Tribe. In addition to any other rights of the Tribe, the Tribe reserves the following rights with respect to
the Premises: 
  

	 	(a)	The non-exclusive right to use and operate, in, on, over and across the Premises, the access roads on the Premises, together with the right to construct, install, maintain, repair, replace, use and operate drives,
rights-of-way, and/or roadways on the Premises connecting to such access roads to serve any property which may now or hereafter be owned by, or in trust for, the Tribe, including any portion of the Premises as to which this Lease is terminated by
the Tribe in accordance with Section 2(d) hereof, so long as none of the foregoing rights of the Tribe unreasonably interfere with the intended uses of the Premises by the Authority. 

 

	 	(b)	The non-exclusive right to use and operate, in, on, over and across the Premises, the utilities lines serving the Premises to serve any property which may now or hereafter be owned by, or in trust for, the Tribe,
including any portion of the Premises as to which this Lease is terminated by the Tribe in accordance with Section 2(d) hereof, together with the nonexclusive right to construct, install, maintain, repair, replace, use and operate, in, on, over
and across the Premises, such electric power, water, sanitary and storm sewer, and other utilities serving such other property of the Tribe as may be reasonably required in connection with the development of such lands by the Tribe, provided that
such utilities shall be located, designed and constructed so as to avoid unreasonable interference with the Authority’s use of the Premises for its intended purposes as set forth in this Lease, and provided that the Tribe promptly restores any
portion of the Premises disturbed by the construction of such utilities. 

  

	 	(c)	The right, at any reasonable times during the term of this Lease, and with reasonable notice to the Authority, or, at any time in the event of an emergency, to enter upon the Premises, to inspect the same and any
improvements erected and placed thereon, and all activities occurring thereon, so long as such inspection does not unreasonably interfere with the Authority’s operations on and uses of the Premises as permitted by this Lease, and, at the
Tribe’s option, to perform any obligations of the Authority hereunder if the Authority fails to do so after reasonable prior notice to the Authority and all Permitted Mortgagees, as hereinafter defined, in accordance with this Lease.

  
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	 	(d)	The right, subject to the provisions and limitations of any Permitted Mortgage, to terminate this Lease as to any portion of the Premises, provided that such released portion shall not be used to conduct any gaming
operations. Upon any such termination, all other terms and provisions in the Lease shall remain in full force and effect. The Tribe and the Authority shall execute an amendment to this Lease to evidence the portion of the Premises which shall remain
subject to this Lease. 

  

	 	(e)	The right to grant utility and access easements to others over, under and across the Premises, provided that same do not unreasonably interfere with the Authority’s use of the Premises for its intended purposes as
set forth in this Lease. 

 3. Term of Lease. The term of this Lease shall be twenty-five (25) years, commencing
on the Effective Date. Provided that no Event of Default has occurred and is continuing at the time of exercise of the rights provided in this Section 3, the Authority shall have the option to extend the term of this Lease for one
(1) additional twenty-five (25) year period, commencing upon the expiration of the initial term, by giving written notice thereof to the Tribe no more than two (2) years nor less than one (1) year prior to the expiration of the
initial term. If the Authority exercises its option to extend, then all of the terms and conditions of this Lease shall remain in effect throughout such extension period, except that the Authority shall have no further option to extend this Lease
beyond the end of such extension period. References to the “term of this Lease” or “Lease term” shall mean the initial term and, if the Authority exercises the option to extend in accordance with this Lease, the extension period.

 4. Rent. The Authority is an instrumentality of the Tribe and the Tribal government. The construction and operation of the Project
by the Authority, on behalf of the Tribe, constitutes a public purpose of the Tribe. Pursuant to Section 7-252(g)(1)(D) of the Tribal Ordinance, the Tribe has the authority to lease tribal land at a nominal rental to instrumentalities of the
Tribe. 
 In consideration of the possession, use and occupancy of the Premises as set forth herein, the Authority and its successors and
assigns shall pay, in addition to payments of all taxes and other expenses set forth in Section 15 of this Lease and all other obligations provided for hereunder, annual rent (“Annual Rent”) to the Tribe as follows: 

 

	 	(a)	During any period when the Mohegan Tribal Gaming Authority or another agency or instrumentality of the Tribe is the tenant under this Lease, the Annual Rent shall be $1.00 per year, payable in advance on the first day
of the Lease term and on each anniversary thereof. 

  

	 	(b)	During any period when any party other than the Mohegan Tribal Gaming Authority or another agency or instrumentality of the Tribe is the tenant under this Lease, the Annual Rent shall be equal to eight percent
(8%) of the tenant’s Gross Revenues from the Premises, payable in arrears on the twenty-fifth (25th) day of each calendar month for the prior calendar month in monthly installments, based on the Gross Revenues for the prior calendar
month. For purposes of this paragraph (b), “Gross Revenues” shall mean gross revenues of the tenant from all sources in connection with its operations at the Premises. 

  
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 Within 90 days after the end of each calendar year, an adjustment shall be made, as necessary, so
that the total Annual Rent paid by the tenant for the preceding calendar year will be equal to the above percentage of Gross Revenues for such calendar year. 

The Tribe has determined that the amount and timing of Annual Rent is in the best interest of the Tribe pursuant to Section 7-252(j) of
the Tribal Ordinance and the time of such payment satisfies the requirements of Section 7-252(g)(3) of the Tribal Ordinance. 
 5.
Use of Premises. The Authority shall use the Premises solely for the construction and operation of the Project and for no other purpose unless approved in advance by the Tribe in writing; provided, however, that following foreclosure of any
Mortgage on the Authority’s interest in this Lease, or any transfer of such interest in lieu of foreclosure to the holder of any such Mortgage, the Premises may be used for any lawful purpose, subject to applicable building, zoning and other
governmental regulations, EXCEPT THAT IN NO EVENT SHALL ANY NON-INDIAN PERMITTED MORTGAGEE OR TRANSFEREE OF THE LEASEHOLD ESTATE CREATED BY THIS LEASE CONDUCT GAMING OPERATIONS ON THE PREMISES. 

6. Permitted Mortgages Only. The Authority shall not mortgage, pledge, or encumber the leasehold estate created by this Lease or any
portion thereof or interest therein except through a Permitted Mortgage. For purposes of this Lease, a “Permitted Mortgage” shall be, and a “Permitted Mortgagee” shall be the holder of, (i) that certain Open-End Leasehold
Mortgage Deed, Assignment of Leases and Rents and Security Agreement dated as of October     , 2016 between the Authority, as Mortgagor, and Citizens, N.A., as Administrative Agent, as Mortgagee, securing, among other
things, the obligations of the Authority under those certain loans in the aggregate principal amount of up to $1,400,000,000 under that certain Credit Agreement dated as of October     , 2016 among the Authority, as
Borrower, the Tribe, for the limited purposes therein, the lenders from time to time party thereto and Mortgagee, as Administrative Agent, or (ii) a mortgage: 
  

	 	(a)	which shall provide, among other things, that in the event of default in any of the mortgagor’s obligations thereunder, the Permitted Mortgagee shall provide written notice to the Tribe of such fact and the Tribe
shall have the right (but not the obligation) within 60 days after its receipt of such notice (or if such default cannot with diligence be cured within such 60 day period, within a reasonable time thereafter provided that the Tribe proceeds promptly
to cure the same and thereafter prosecutes the curing of such default with diligence), to cure such default in the Authority’s name and on the Authority’s behalf, provided that current payments due the holder during such 60 day period (or
such lesser time as may have been required to cure such default) are made to the holder, and shall further provide that so long as said current payments due are paid to the holder as required under the Permitted Mortgage, said holder shall not have
the right, unless such default shall not have been cured within such time, to accelerate the debt secured by such Permitted Mortgage or to foreclose under the Permitted Mortgage on account of such default; 

  
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	 	(b)	which shall provide, among other things, that after the expiration of such cure period, if the Permitted Mortgagee intends to foreclose under the Permitted Mortgage, the Permitted Mortgagee shall first notify the Tribe
of its intention to do so and the Tribe shall have the right, but not the obligation upon notifying the Permitted Mortgagee within sixty (60) days of receipt of said notice from the Permitted Mortgagee, to purchase the debt and all of the
instruments securing the debt for the amount of the outstanding indebtedness (including interest, principal, premiums and make-whole obligations in respect thereof), together with all reasonable costs and expenses due to the Permitted Mortgagee in
accordance with such instruments, provided that such purchase must be consummated and payment made in full within ninety (90) days after the Permitted Mortgagee gives notice of its intent to foreclose, or the Tribe shall be deemed to have
waived its right to purchase; and 

  

	 	(c)	which shall provide that such Permitted Mortgage is and shall be subject and subordinate to any and all access and utility easements granted by the Tribe pursuant to Section 2 of this Lease. 

Any Permitted Mortgagee shall have, without the requirement of consent by the Tribe, the right, but not the obligation, to enforce and
preserve such Permitted Mortgagee’s rights under any Permitted Mortgage and any other agreement entered into in connection therewith. 

7. Amendment of Lease. Any material amendments to this Lease shall be subject to the prior written approval of each Permitted
Mortgagee, which approval shall not be unreasonably withheld or delayed. For purposes of this Lease, “material” amendments shall mean any amendment which effects changes in rent, the term of the Lease, a termination of Lease and any other
amendments likely to adversely affect the value of the Premises and other collateral under a Permitted Mortgage or the rights and remedies of the Permitted Mortgagee or which would increase the obligations of the Permitted Mortgagee if the Permitted
Mortgagee were to foreclose its Permitted Mortgage. The Authority and Tribe shall execute such further amendments to this Lease, as may be reasonably required by a Permitted Mortgagee or prospective Mortgagee to carry out the provisions of this
Lease. So long as any indebtedness or other obligation secured by said Permitted Mortgage shall remain unsatisfied and not fully discharged, the Tribe shall not without the prior written consent of said Permitted Mortgagee being first had and
obtained (a) accept any surrender of the Premises or any portion thereof or termination of this Lease, whether voluntary or involuntary or upon a failure of any condition under this Lease, or (b) exercise or accept the exercise of any
option or right of the Authority to terminate this Lease or to purchase the Tribe’s reversionary interest hereunder. The provisions of this paragraph shall not prevent the Tribe from exercising its rights and remedies provided in this Lease or
by law upon the occurrence of an Event of Default, subject to the rights of any Permitted Mortgagee as provided elsewhere in this Lease. 

8. Consent to Acquisition of Leasehold Interest by Permitted Mortgagee: Subsequent Assignment and Subletting. The Tribe hereby consents
to the assignment and transfer by the Authority of its interest in this Lease to any Permitted Mortgagee, either through foreclosure of the Permitted Mortgage or by a transfer in lieu of foreclosure, or by exercise of any other right or remedy
granted by the applicable Permitted Mortgage, or to any purchaser at a foreclosure or other sale. After an event of default under the applicable Permitted Mortgage, if the Permitted 

  
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Mortgagee succeeds to the Authority’s interest under this Lease through foreclosure or transfer in lieu of foreclosure or otherwise, as provided above, then such Permitted Mortgagee shall
have the right to assign this Lease or sublet the Premises from time to time, in whole or in part, without obtaining the consent of the Tribe. Any such assignee shall assume in writing all of the Authority’s obligations under this Lease and
shall have the rights of, and be substituted for, the Authority. Upon any such assumption by a subsequent assignee, the Permitted Mortgagee shall be automatically released from all liability, if any, hereunder. Following the occurrence of an event
of default under any Permitted Mortgage, and prior to any foreclosure, transfer in lieu of foreclosure or other disposition of the Authority’s interest in this Lease, the Permitted Mortgagee shall have the right, to the extent provided in the
Permitted Mortgage and upon giving written notice thereof to the Tribe, to take possession of and sublease all or any part of the Premises on such terms as the Permitted Mortgagee may deem reasonable for the account of the Authority, and to
exercise, in the name of the Authority, any and all other rights or privileges granted to the Authority pursuant to this Lease. In the event the Permitted Mortgagee, in the liquidation of its Permitted Mortgage, should acquire and sell the leasehold
interest in this Lease and take a Permitted Mortgage to secure part or all of the sale price the provisions of this Lease shall apply to such Permitted Mortgage. 

Nothing herein shall permit the Permitted Mortgagee or any assignee, sublessee, purchaser, or transferee of the Permitted Mortgagee to
transfer any interest in this Lease or its leasehold interest in the Premises to any person or entity engaged by the Tribe or the Authority to manage a gaming enterprise under the provisions of the Indian Gaming Regulatory Act, 25 U.S.C.
§§2701 et seq. 
 9. Permitted Mortgagee’s Right to Cure Defaults. Any Permitted Mortgagee shall have the
right, but not the obligation, without requirement of consent by the Tribe to: 
  

	 	(a)	cure any default under this Lease within any applicable cure period, and to timely perform any obligation required hereunder, and any such cure or performance by Permitted Mortgagee shall be effective as if the same had
been undertaken and performed by the Authority; and 

  

	 	(b)	acquire and convey, assign, transfer and exercise any right, remedy or privilege granted to the Authority by this Lease or otherwise by law, subject to the provisions, if any, in said Permitted Mortgage limiting any
exercise of any such right, remedy or privilege; and 

  

	 	(c)	rely upon and enforce any provisions of this Lease to the extent that such provisions are for the benefit of a Permitted Mortgagee. 

In addition to the rights set forth in Section 9(a) - (c), in the event of default in any of the Authority’s obligations hereunder, the Tribe shall
provide written notice to the Permitted Mortgagee of such fact and the Permitted Mortgagee shall have the right (but not the obligation) within sixty (60) days after its receipt of such notice (or if such default cannot with diligence be cured
within such sixty (60) day period, within a reasonable time thereafter provided that the Permitted Mortgagee proceeds promptly to cure the same and thereafter prosecutes the curing of such default with diligence), to cure such default in the
Authority’s name and on the Authority’s behalf, provided that current payments due the Tribe during such sixty (60) day period (or such lesser time as may have been required to cure such default) are made to the Tribe. 

  
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 Notwithstanding anything to the contrary contained in this Lease, so long as any indebtedness or
other obligation secured by a Permitted Mortgage shall remain unsatisfied and not fully discharged, upon the occurrence of an Event of Default by the Authority hereunder, the Tribe shall not (i) terminate this Lease nor the Authority’s
right of possession of the Premises; (ii) exercise any right of reentry provided in this Lease or otherwise by law; (iii) take possession of and/or relet the Premises or any portion thereof or (iv) enforce any other right or remedy
which may affect the rights of any Permitted Mortgagee under the applicable Permitted Mortgage unless (A) the default consists of the Authority’s failure to pay any sum of money expressly required to be paid by the Authority pursuant to
this Lease (a “Monetary Default”), and (B) such Permitted Mortgagee has failed to cure the Authority’s Monetary Default pursuant to this Lease; provided, however, that upon expiration of the term of this Lease, including
any option period, the Tribe shall have the right to reenter and take possession of the Premises. 
 A Permitted Mortgagee shall not, as a
condition to the exercise of its rights hereunder, be required to assume personal liability for the payment and performance of the obligations of the Authority hereunder. Any such payment or performance or other act by a Permitted Mortgagee
hereunder shall not be construed as an agreement by such Permitted Mortgagee to assume such personal liability except to the extent such Permitted Mortgagee actually becomes the lessee hereunder; provided, however, that in the event the Permitted
Mortgagee transfers the leasehold estate to a purchaser of the same any such transferee shall be required to enter into a written agreement assuming such personal liability and upon any such assumption the Permitted Mortgagee shall automatically be
released from personal liability hereunder. 
 10. Assignments and Subletting. Except as otherwise provided in this Lease and subject
to any restrictions of the Authority in a Permitted Mortgage, the Authority shall not assign, pledge, encumber, hypothecate or transfer all or any part of the Authority’s interest in this Lease, whether voluntarily or involuntarily, by
operation of law or otherwise, and shall not sublease all or any portion of the Premises, without the prior written consent of the Tribe, which consent shall not be unreasonably withheld or delayed. The Authority may, without obtaining the consent
of the Tribe, sublease all or any portion of the Premises to any entity directly or indirectly owned or controlled by the Tribe. 
 11.
Compliance with Law. The Authority shall not use or cause or permit to be used any part of the Premises for any conduct or purpose which constitutes a nuisance or waste of the Premises or which violates any applicable law, regulation, code or
ordinance, or any order of any court or governmental authority having jurisdiction over the Premises. The Authority shall promptly comply, at its expense, with all laws, regulations, codes, ordinances and governmental requirements relating to or
affecting the Premises or the Authority’s use or occupancy thereof. 
 All applicable Tribal licensing, permitting, and other approval
requirements (including, but not limited to building codes and permits) that must be adhered to by the Authority under tribal law in order for the Authority to utilize the Premises for the purposes set forth in this Lease are identified in
Exhibit C hereto. The Tribe shall not impose any additional requirements that would materially and adversely affect the Authority’s use of the Premises for the purposes set forth in this Lease. 

  
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 12. Hazardous Substances. The Authority covenants and hereby agrees that the Authority
shall not, during the term of this Lease, permit toxic or hazardous substances or wastes, pollutants or contaminants, including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls,
petroleum products including gasoline, fuel oil, crude oil and various constituents of such products, any hazardous substance as defined in the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et.
seq., and any other substance similarly defined or identified in any other federal, state or tribal laws, rules or regulations relating to the protection of the environment (collectively, “Hazardous Substances”), to be
generated, treated, stored, transferred from, discharged, released or disposed of, or otherwise placed, deposited in or located on, used, transported over, or otherwise entered on or into the Premises, except in accordance with all applicable state,
federal, and tribal laws, regulations, rules, codes and ordinances relating to the protection of the environment (“Environmental Laws”); nor shall the Authority undertake any activity on the Premises that would cause or contribute
to the Premises becoming a treatment, storage or disposal facility for Hazardous Substances within the meaning of any applicable Environmental Laws. The foregoing provision shall not be deemed to prohibit the incidental storage or use of Hazardous
Substances in the ordinary course of the Authority’s business, provided such storage or use is in compliance with all applicable Environmental Laws. 

13. Exculpation. Neither the Tribe nor the United States, nor their officers, agents or employees shall be liable to the Authority or
its successors, assignees or subtenants, including any Permitted Mortgagee, for any loss, damage, or injury of any kind whatsoever to the person or property of the Authority or any sublessee, or any other person, caused by any use or condition of
the Premises or by any defect in any structure erected thereon, or arising from any accident, fire or other casualty on the Premises. 
 14.
Indemnification of Tribe. The Tribe shall not be liable, and the Authority shall defend, indemnify and hold the Tribe, its members, officers, agents and employees, harmless against all liability, claims of liability, obligations, suits,
damages, penalties, claims, costs, charges, and expenses, including attorney’s fees, that may be imposed upon the Tribe by reason of: 
  

	 	(a)	Any work or things done in, on or about the Premises and/or the Improvements, as hereinafter defined, or any part thereof; 

  

	 	(b)	Any use, nonuse, possession, occupation, condition, operation, or maintenance of the Premises and/or the Improvements; 

  

	 	(c)	Any negligence on the part of the Authority or any of the Authority’s agents, contractors, servants, employees, subtenants, licensees, or invitees; 

 

	 	(d)	Any accident, injury, or damage to any person or property occurring in, on, or about the Premises and/or the Improvements or any part thereof; 

 

	 	(e)	Any failure by the Authority to perform or comply with any of the covenants, agreements, terms or conditions contained in this Lease on its part to be performed or complied with; and 

 

	 	(f)	Any tax attributable to the execution, delivery, or recording of this Lease or any modification thereof. 

  
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 The Authority’s obligation to defend the Tribe hereunder shall be by counsel reasonably acceptable to the
Tribe, and “attorney’s fees” shall include both reasonable attorneys’ fees and paralegals’ fees and expenses. In the event that any action or proceeding is brought against the Tribe, its members, officers, agents or
employees by reason of any of the matters set forth in parts (a) through (f) above, then the Authority upon notice from the Tribe, shall protect and defend at the Authority’s sole expense such action or proceeding by counsel
reasonably satisfactory to the Tribe, and in the event the Authority shall fail to protect and defend the Tribe, its members, officers, agents or employees, then the Tribe may undertake to protect and defend itself, its members, officers, agents or
employees and the Authority shall pay to the Tribe, upon demand, all costs and expenses incurred by the Tribe in connection therewith, including, without limitation, all attorneys’ fees and expenses. The provisions of this Section 14 are
for the sole benefit of the Tribe, and may not be relied on or enforced by any other party. The obligations of the Authority under this Section 14(i) shall be personal to the Mohegan Tribal Gaming Authority and independent of the demise of the
Premises, (ii) shall not run with the land or the leasehold estate hereunder, (iii) need not be assumed by any person or entity who succeeds to the tenant’s interest hereunder (including without limitation any Permitted Mortgagee or
any purchaser upon foreclosure of any Permitted Mortgage), (iv) shall not, if unpaid, be collectible from any property subject to a Permitted Mortgage, or any proceeds thereof, or from any Permitted Mortgagee or its successors or assigns, and
(v) shall not, if unpaid, constitute a default under this Lease or grounds for termination of this Lease. 
 15. Payment of Taxes
and Other Expenses. The rent provided for in Section 4 of this Lease shall be fully “net” to the Tribe. Accordingly, the Authority shall pay, in addition to the payments of Annual Rent, all costs of owning, operating,
constructing, maintaining, repairing, replacing and insuring the Premises and any improvements located thereon, all charges for water, sewer and other utilities, services furnished to the Premises, and all fees, taxes, assessments and other charges
which may be levied against the Premises or the Authority’s interest in the Premises by the Tribe or any other governmental authority having the power to levy such fees, taxes, assessments or other charges, and which are payable for and with
respect to the term of the Lease. 
 All applicable Tribal taxes, fees, assessments and other charges payable by the Authority to the Tribe
or levied against the Premises that are required for the Authority, to use the Premises for the purposes set forth in this Lease are listed in Exhibit D hereto. The Tribe shall not impose any new or additional taxes, fees, assessments or
other charges on the Premises or the Authority, except for reasonable, nondiscriminatory charges for utilities or other governmental services supplied by the Tribe and used by the Authority or the Premises. 

Nothing contained in this Lease is intended or shall be construed to constitute a waiver by the Tribe or the Authority of any applicable laws
that provide tax immunity to trust or restricted Tribal property or to any interest therein or income derived therefrom. 
 16.
Authority’s Repair Obligations: Insurance. The Authority will, at its expense, maintain, repair and replace, whether as a result of casualty, or otherwise, the Premises and all Improvements now located or hereafter constructed thereon
pursuant to the terms of this Lease in order that the same is in good, safe and habitable condition throughout the term of this Lease, ordinary wear and tear excepted and in any event in a condition satisfactory to the Tribe in its reasonable
discretion. 

  
 Page 10 of 27 

 The Authority shall maintain or cause the manager of the operations at the Premises to maintain
adequate “all-risk” property insurance in an amount equal to the full replacement value of all buildings and other improvements and fixtures located on the Premises against loss throughout the term of this Lease. In addition, the Authority
shall maintain or cause the manager of the operations at the Premises to maintain comprehensive general liability insurance against claims for bodily injury, death or property damage occurring in, on or about the Premises with a combined single
limit of at least $2,000,000 per occurrence, together with an umbrella policy of liability insurance providing additional coverage of at least $5,000,000 per occurrence. All such policies of insurance shall name the Tribe and any Permitted Mortgagee
as additional insureds and loss payees, as appropriate, shall provide for 30 days’ advance written notice to the Tribe and any such Permitted Mortgagee prior to any modification or cancellation thereof, and shall be in form and substance, and
issued by insurance companies, reasonably satisfactory to the Tribe and such Permitted Mortgagee. Subject to the terms of any Permitted Mortgage, which terms shall be approved in writing by the Tribe, any insurance proceeds received as a result of
damage or destruction shall be applied first to the cost of restoration of any Improvements located on the Premises, subject to such reasonable controls as may be required by the Tribe, and the remainder, if any, shall be paid to the Authority or to
any Permitted Mortgagee, to the extent required by such Permitted Mortgage. The Authority shall provide the Tribe with a duplicate original of each of the Authority’s insurance policies and renewals thereof prior to commencement of the Lease
term and prior to expiration of any existing policy. The Tribe acknowledges and agrees that such insurance satisfies the requirements of Section 7-252(i)(1) of the Tribal Ordinance and, as permitted by the Tribal Ordinance, waives any other
insurance requirements as set forth in Section 7-252(i) of the Tribal Ordinance. 
 17. Alterations. No building or other
improvement shall be constructed or materially altered by the Authority, and no grading, excavating or other construction activity shall be commenced, on the Premises unless complete and final plans and specifications for such construction or
alteration have been submitted to and approved by the Tribe. Any such approval of the Tribe shall not be unreasonably withheld or delayed. Any such construction or alteration shall be commenced and completed promptly and in a good and workmanlike
manner using new, top quality materials and in compliance with all applicable permits, authorizations and building, zoning and other laws and ordinances and the requirements of all Permitted Mortgagees. 

18. Surrender of Possession; Ownership of Improvements. The Authority agrees peaceably to surrender possession and occupancy of the
Premises to the Tribe at the termination or expiration of this Lease. Any and all buildings, improvements, and related facilities now existing or hereafter constructed on the Premises, including utilities constructed or installed in or on the
Premises by or at the expense of the Authority, and all repairs, remodeling or additions thereof or thereto (collectively, the “Improvements”) shall, upon such construction and/or installation, become a part of the Premises leased
to the Authority pursuant to the terms of this Lease, and all references in this Lease to “Premises” shall from and after such construction and/or installation include the Improvements. Any and all equipment, furniture, Trade Fixtures and
other personal property of the Authority used in connection with the use and operation of the Premises and the Improvements (the “Equipment”), shall be and remain the separate, personal property of the Authority throughout the term
of this Lease. The Authority may remove all or any part of the Equipment upon termination or expiration of this Lease, provided that the Authority shall repair 

  
 Page 11 of 27 

 
and be responsible for any damage done to the Premises by such removal. If any Equipment which the Authority has the right to remove is not removed within 90 calendar days after the date of
expiration or termination of this Lease, and provided that the Tribe does not interfere with such timely removal, such property shall automatically become the property of the Tribe and may be used, sold, transferred or otherwise disposed of by the
Tribe in any manner, in the Tribe’s sole discretion, and at the expense of the Authority. 
 19. Default. The occurrence of any
of the following events shall constitute an Event of Default by the Authority under this Lease: 
  

	 	(a)	the Authority fails to pay when due any amount required to be paid by the Authority under this Lease (except Section 14 hereof) and such failure continues for 30 days after written notice thereof from the Tribe to
the Authority and any Permitted Mortgagee; or 

  

	 	(b)	the Authority fails to observe or perform any other covenant or obligation of the Authority under this Lease (except Section 14 hereof) and such failure continues for 60 days (or, if such default cannot reasonably
be cured within 60 days, for such longer period reasonably required to cure such default provided that the Authority has within such 60 days promptly commenced curing such default and diligently pursues such cure to completion) after written notice
from the Tribe to the Authority and any Permitted Mortgagee; or 

  

	 	(c)	the Authority pledges, encumbers, hypothecates or conveys its interest in this Lease or any part thereof, to anyone in violation of the terms of this Lease. 

Notwithstanding the foregoing, if the Authority, in connection with a good faith dispute, deposits funds in escrow or obtains a bond that
prevents any foreclosure of the leasehold estate, then the Authority shall not be in default hereunder. 
 20. Dispute Resolution and
Consent to Suit. Each of the Tribe and Authority hereby expressly and irrevocably waives its sovereign immunity from unconsented suit, whether such suit be brought in law or in equity, in the Applicable Courts (defined below) or any court of
otherwise competent jurisdiction, or in administrative proceedings or proceedings in arbitration, to permit the commencement, maintenance, and enforcement of any action, by any person with standing to maintain an action as hereafter provided, to
interpret or enforce the terms of this Lease, and to enforce and execute any judgment resulting therefrom against the other. Notwithstanding any other provision of law or canon of construction, each of the Tribe and Authority intends this waiver to
be interpreted liberally to permit the full litigation of disputes arising under or out of this Lease. Without limiting the generality of the foregoing, each of the Tribe and Authority waives its immunity from unconsented suit to permit the
maintenance of the following actions: 
 (a) Courts. The Tribe and Authority each waive their immunity from unconsented suit to permit
any legal suit, action or proceeding by the other party hereto (or any successor or assign of a party, including a Permitted Mortgagee) to be instituted in the (a) federal courts of the United States of America located in the State of
Connecticut and all courts to which any appeal therefrom may be available; and (b) any court of the State of Connecticut and all courts to which any appeal therefrom may be available (“Applicable Courts”),

  
 Page 12 of 27 

 
and each party irrevocably submits to the exclusive jurisdiction (except for arbitration proceedings as provided for in Section 20(b) or proceedings instituted in regard to the enforcement
of a judgment of any such court (including, without limitation, in the Gaming Disputes Court of the Tribe) or, to the extent provided in Section 20(b), any arbitrator, as to which such jurisdiction is non-exclusive) of such Applicable Courts in
any such suit, action or proceeding (each a “Permitted Claim”) which seeks to (i) enforce and interpret the terms of this Lease, and award and enforce against the Tribe or Authority, as applicable, the award of damages owing as
a consequence of a breach thereof, whether such award is the product of litigation, administrative proceedings, or arbitration, (ii) determine whether any consent or approval of the Tribe or Authority has been improperly granted or unreasonably
withheld, (iii) enforce any judgment prohibiting the Tribe or Authority from taking any action, or mandating or obligating the Tribe or Authority to take any action, including a judgment compelling the Tribe or Authority to submit to binding
arbitration, and (iv) adjudicate any claim under the Indian Civil Rights Act of 1968, 25 U.S.C. § 1302 (or any successor statute). Service of any process, summons, notice or document by mail to such party’s address set forth below
shall be effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the
Applicable Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court or arbitration proceeding that such suit, action or other proceeding has been brought in an inconvenient forum. 

(b) Arbitration. The Tribe and Authority agree that if the Applicable Courts lack or are unwilling to hear a dispute for which a waiver
of sovereign immunity has been given pursuant to this Section 20, then any proper party to such dispute may request binding arbitration of such dispute. The dispute shall be settled in accordance with the commercial arbitration rules of the
American Arbitration Association, and judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction. 

Notwithstanding anything contained in this Section 20 to the contrary, (1) the waiver contained in this Section 20 is expressly
limited to actions for Permitted Claims against either the Tribe or Authority, as the case may be, (2) any monetary recovery upon any judgment resulting therefrom shall be limited to recovery against the Tribe’s or Authority’s
interest in this Lease, and (3) in no event shall the Tribe or Authority be liable for indirect, consequential, special or punitive damages. 

THE WAIVERS AND CONSENTS DESCRIBED IN THIS SECTION SHALL INURE TO THE BENEFIT OF THE TRIBE, AUTHORITY AND ANY PERMITTED MORTGAGEE. THE TRIBE,
AUTHORITY AND ANY PERMITTED MORTGAGEE SHALL HAVE AND BE ENTITLED TO ALL AVAILABLE LEGAL AND EQUITABLE REMEDIES, INCLUDING THE RIGHT TO SPECIFIC PERFORMANCE, MONEY DAMAGES AND INJUNCTIVE OR DECLARATORY RELIEF. THE WAIVERS OF SOVEREIGN IMMUNITY AND
CONSENTS TO JURISDICTION CONTAINED IN THIS SECTION ARE IRREVOCABLE. 
 Each of the Tribe and Authority unconditionally and irrevocably
waives, to the fullest extent permitted by applicable law, the jurisdiction and right of any tribal court or forum, now or hereafter existing or created, to hear or resolve any Permitted Claim. Each of the Tribe and

  
 Page 13 of 27 

 
Authority unconditionally and irrevocably waives the application of any rule or doctrine relating to the exhaustion of tribal remedies, abstention or comity that might otherwise require or permit
a Permitted Claim to be heard or resolved (either initially or finally) in a tribal court or other tribal forum. 
 21. Performance
During Disputes. It is mutually agreed that during any kind of controversy, claim, disagreement or dispute, including a dispute as to the validity of this Lease, the Authority shall remain in possession of the Premises as tenant; and the Tribe
and the Authority shall continue their performance of the provisions of this Lease. The Authority shall be entitled to injunctive relief from any of the Applicable Courts or other competent authority to maintain possession in the event of a
threatened eviction during any dispute, controversy, claim or disagreement arising out of this Lease. 
 22. Termination. Upon the
occurrence of an Event of Default by the Authority as provided in Section 19, the Tribe shall have the right to terminate this Lease, subject to the terms of this Lease and Sections 7-254 and 7-255 of the Tribal Ordinance, and subject to the
rights of any transferee permitted hereunder or any Permitted Mortgagee, as provided in this Lease. The rights and remedies available to the Tribe upon the occurrence of a default hereunder shall control over the provisions of Section 7-254(c)
of the Tribal Ordinance. 
 23. Performance Bond. The Tribe has determined that no performance bond is required pursuant to
Section 7-252(j) of the Tribal Ordinance. 
 24. Federal Trust. The Authority acknowledges and understands that title to the
Premises is held by the United States of America in trust for the Tribe. Nothing contained in this Lease shall operate to delay or prevent a termination of Federal trust responsibilities with respect to the land by the issuance of a fee patent or
otherwise during the term of this Lease; however, such termination shall not serve to abrogate this Lease. No member of, or delegate to, Congress or Resident Commissioner shall be admitted to any share or part of this Lease or to any benefit that
may arise hereunder, but this provision shall not be construed to extend to this contract if made with a corporation or company for its general benefit. During any period when the Premises are in trust or restricted status, all of the
Authority’s obligations under this Lease, and the obligations of its sureties, are to the United States as well as to the Tribe. 
 25.
Successors Bound. The terms of this Lease shall benefit and be binding upon the successors and assigns of the Tribe and the successors and permitted assigns of the Authority in like manner as upon the original parties, except as otherwise
provided in this Lease. The term “Authority”, as used in this Lease, means the Mohegan Tribal Gaming Authority and any person or entity succeeding to the interest of the Mohegan Tribal Gaming Authority as tenant under this Lease, in
accordance with the provisions of this Lease and applicable law. 
 26. Quiet Enjoyment. The Tribe covenants that at all times during
the term of this Lease, so long as no Event of Default has occurred and is continuing hereunder, that the Authority’s quiet enjoyment of the Premises or any part thereof shall not be disturbed by any act of the Tribe or anyone acting by,
through or under the Tribe. 

  
 Page 14 of 27 

 27. Notices. Any notice required by or sent pursuant to any provision of this Lease shall
be in writing and shall be deemed given if and when it is personally delivered or sent by certified mail addressed, until some other address is designated in a notice so given, as follows: 

 

			
	If to Tribe:	  	Mohegan Tribe of Indians of Connecticut
		  	13 Crow Hill Road
		  	Uncasville, CT 06382
		  	Attention: Tribal Chair
		
	With a copy to:	  	Mohegan Tribe of Indians of Connecticut
		  	13 Crow Hill Road
		  	Uncasville, CT 06382
		  	Attention: Attorney General
		
	If to Authority:	  	Mohegan Tribal Gaming Authority
		  	One Mohegan Sun Boulevard
		  	Uncasville, CT 06382
		  	Attention: President/Chief Executive Officer
		
	With a copy to:	  	Mohegan Tribal Gaming Authority
		  	One Mohegan Sun Boulevard
		  	Uncasville, CT 06382
		  	Attention: Vice President/General Counsel

 28. Governing Law. This Lease, the parties’ obligations hereunder, and any disputes hereunder
shall be governed by and interpreted and construed in accordance with federal law (to the extent applicable) and the laws of the Tribe, provided that nothing herein shall be deemed to modify the provisions of sections 11 and 15 of this Lease, and,
to the extent required to supplement applicable federal law and tribal law, the substantive laws of the State of Connecticut (excepting its choice of law rules). 

29. Recording. This Lease or a memorandum of this Lease in the form prescribed by Connecticut law shall be recorded in the appropriate
Land Titles and Records Office of the Bureau of Indian Affairs, in the land records of the Town of Montville, Connecticut, and any land records of the Tribe. 

30. Invalid Provisions. If any clause, section, article, paragraph, or subparagraph of this Lease shall be unenforceable or invalid,
such material shall be read out of this Lease and shall not affect the validity of any other clause, section, article, paragraph, or subparagraph, or give rise to any cause of action of either party to this Lease against the other, and the remainder
of this Lease shall be valid and enforceable to the fullest extent permitted by law. 
 31. Waiver. The waiver by the Tribe of, or
the failure of the Tribe to take action with respect to, any breach of any term, covenant, condition, provision, restriction, or reservation herein contained shall not be deemed to be a waiver of such term, covenant, condition, provision,
restriction, or reservation or subsequent breach of same, or of any other term, covenant, condition, provision, restriction, or reservation herein contained. The Tribe may grant a waiver of any term of this Lease, but such must be in writing and
signed by the Tribe before being effective. 

  
 Page 15 of 27 

 The subsequent acceptance of Annual Rent or any other amount hereunder by the Tribe shall not be
deemed to be a waiver of any preceding breach by the Authority of any term, covenant, condition, provision, restriction, or reservation of this Lease, other than the failure of the Authority to pay the particular rent so accepted, regardless of the
Tribe’s knowledge of such preceding breach at the time of acceptance of such rent. 
 32. Saving Clause. If for any reason the
term of this Lease, or any renewal thereof, or any substantive provision thereof, shall be found by an Applicable Court or other forum provided in Section 20 hereof to be unenforceable, illegal or violative of public policy, this Lease shall
automatically be amended to conform to the applicable decision, and each party hereto expressly agrees to execute any amendment necessary to effectuate the goals and purposes of this Lease. 

33. Force Majeure. If any dispute shall arise under any provision of this Lease as to whether the Authority shall have commenced
promptly or within any limit of time specified in this Lease or proceeded continuously and with all due diligence with any required construction, repair or replacement, there shall be a suspension of performance during the period of any acts of God
or by strikes which affect both the building industry generally and the Premises specifically or by orders, directives or regulations of any governmental agency or board, making available the materials reasonably required for any such construction,
repair or replacement and to any unavoidable delays in adjusting any fire insurance loss. The provisions of this Section 33 shall not, however, apply to a default by the Authority in the payment of any Annual Rent or other charges to be paid by
the Authority under the provisions of this Lease. 
 34. Estoppel Certificate. The Tribe and the Authority, promptly upon any request
therefor from the other, shall execute, cause such signature to be acknowledged by a notary public and deliver to the other or to a third person, if so directed by the other, a statement in writing identifying this Lease and the parties hereto and
declaring, as of the date thereof, the following and such other matters as may be reasonably required by the party making such request: 
  

	 	(a)	whether or not this Lease is in default, and, to the extent that any default does then exist, the nature of any such default, including any event which may constitute an Event of Default upon the mere passage of time or
notice or both; 

  

	 	(b)	whether or not this Lease is in full force and effect and that this Lease has not been modified except as provided in an amendment or amendments identified therein, stating further that this Lease as so amended is in
full force and effect; 

  

	 	(c)	whether the date to which the rent and other charges required to be paid under this Lease have been paid by or on behalf of the Authority; 

 

	 	(d)	that the Tribe has not conveyed, assigned, transferred or delegated any right or duty of the Tribe hereunder, nor has the Tribe encumbered or otherwise hypothecated the Tribe’s reversionary interest in and to the
Premises or any rights hereunder except as may be set forth in such statement; and 

  

	 	(e)	that any such statement may conclusively be relied upon by the Tribe, the Authority and any Permitted Mortgagee or any proposed Permitted Mortgagee in making a loan to the Authority or by any title insurance company
which issues a title insurance policy or other guaranty or endorsement relating to the existence and status of this Lease. 

  
 Page 16 of 27 

 35. No Merger. So long as any Permitted Mortgage is in existence, unless all Permitted
Mortgagees shall otherwise expressly consent in writing, the fee title to the Premises and the leasehold estate created by this Lease shall not merge but shall remain separate and distinct, notwithstanding the acquisition of said fee title by the
United States of America in trust for the Tribe and said leasehold estate by the Tribe. 
 36. Definitions. The following terms, for
purposes of this Lease, shall have the meaning as set forth in this Section: 
 “Annual Rent” shall have the meaning as set forth
in Section 4 of this Lease. 
 “Authority” shall have the meaning as set forth in the introductory paragraph and
Section 25 of this Lease. 
 “Environmental Laws” shall have the meaning as set forth in Section 12 of this Lease. 

“Equipment” shall mean all equipment, furniture and Trade Fixtures required or used in the operation of the Premises and the
Improvements. 
 “Gaming” shall mean any and all activities defined as Class II or Class III Gaming under the Indian Gaming
Regulatory Act, 25 U.S.C. §§ 2701 et seq. or authorized under the Compact. 
 “Gross Revenues” shall have the
meaning as set forth in Section 4(b) of this Lease. 
 “Hazardous Substances” shall have the meaning as set forth in
Section 12 of this Lease. 
 “Improvements” shall have the meaning as set forth in Section 18 of this Lease. 

“Land Titles and Records Office” shall have the meaning as set forth in Section 29 of this Lease. 

“Lease” or “Land Lease” shall mean this lease entered into as of the date set forth in the introductory paragraph hereof.

 “Lease Term” or “term of this Lease” shall have the meaning as set forth in Section 3 of this Lease. 

“Monetary Default” shall have the meaning as set forth in Section 9 of this Lease. 

“Permitted Mortgage” shall have the meaning as set forth in Section 6 of this Lease. 

“Permitted Mortgagee” shall have the meaning as set forth in Section 6 of this Lease. 

“Premises” shall have the meaning as set forth in Section 1 of this Lease. 

“Project” shall mean the Gaming facility, resort, hotel and other related developments on the Premises. 

  
 Page 17 of 27 

 “Trade Fixtures” shall mean articles which are easily removable, and which are placed
by and at the sole expense of the lessee in or attached to the Improvements to prosecute the trade or business of the lessee for which it occupies the Improvements or for use in connection with such business or to promote convenience and efficiency
in conducting such business. 
 “Tribal Council” shall mean the Mohegan Tribal Council created pursuant to the Tribe’s
Constitution or, a designee agency, committee, corporation or council created pursuant to any resolution or ordinance of the Mohegan Tribal Council. 

“Tribe” shall mean The Mohegan Tribe of Indians of Connecticut, a federally recognized Indian tribe, its successors and assigns.

 The remainder of this page is intentionally blank. 

Signatures appear on following pages. 

  
 Page 18 of 27 

 IN WITNESS THEREOF, this Lease has been executed as of the date first above written. 

 

							
	WITNESSES:	 	THE MOHEGAN TRIBE OF INDIANS OF CONNECTICUT
				
	 /s/ Donna Griffin
	 		 	By:	 	 /s/ Kevin P. Brown

		 		 		 	Kevin P. Brown
	 /s/ Debra Apicelli
	 		 		 	Chairman, Tribal Council
		
	WITNESSES:	 	MOHEGAN TRIBAL GAMING AUTHORITY
				
	 /s/ Donna Griffin
	 		 	By:	 	 /s/ Robert Soper

		 		 		 	Robert Soper
	 /s/ Terry Morton
	 		 		 	Chief Executive Officer/President

 STATE OF CONNECTICUT) 
 COUNTY
OF NEW
LONDON)                                        
        ss. Uncasville 
 On October 13, 2016 personally appeared before me, KEVIN P. BROWN,
signer and sealer of the foregoing instrument, who acknowledged that he executed the instrument as the Chairman of the Tribal Council of The Mohegan Tribe of Indians of Connecticut, a federally recognized Indian tribe, as his free act and deed and
the free act and deed of the Tribe. 
 In Witness Whereof, I hereunto set my hand. 

 

	
	 /s/ Donna Griffin

	Notary Public
	Date Commission Expires: 10/31/17                           

 STATE OF CONNECTICUT) 

COUNTY OF NEW
LONDON)                                        
        ss. Uncasville 
 On October 13, 2016 personally appeared before me, ROBERT SOPER,
signer and sealer of the foregoing instrument, who acknowledged that he executed the instrument as the Chief Executive Officer/President of the Mohegan Tribal Gaming Authority, an instrumentality of The Mohegan Tribe of Indians of Connecticut, as
his free act and deed and the free act and deed of the Authority. 
 In Witness Whereof, I hereunto set my hand. 

 

	
	 /s/ Donna Griffin

	Notary Public
	Date Commission Expires: 10/31/17                           

  
 Page 19 of 27 

 Exhibit A 

Legal Description of Premises 
 A certain tract
or parcel of land, together with the buildings and all other improvements thereon, situated on the southeasterly side of Sandy Desert Road, easterly of Connecticut Route No. 32, northeasterly of Crow Hill Road, westerly of Thames River and
southerly of Trading Cove in the Town of Montville, County of New London and State of Connecticut and being more particularly shown and delineated on a certain map or plan entitled “SURVEY PLAN LAND OF UNITED STATES OF AMERICA IN TRUST FOR THE
MOHEGAN TRIBE OF INDIANS OF CONNECTICUT LEASED TO MOHEGAN TRIBAL GAMING AUTHORITY PREPARED FOR THE MOHEGAN TRIBE OF INDIANS OF CONNECTICUT Located At Sandy Desert Road, Crow Hill Road and Mohegan Sun Boulevard Montville (Uncasville), Connecticut
Date: September 24, 2013 Scale: 1” = 200’ Project No: 200614 Sheet 1 of 1” Revised to 10/05/16 Prepared By The Mohegan Tribe CAD Document Control Department, which premises are more particularly bounded and described as follows:

 Beginning at a point in the southeasterly line of land now or formerly of The Mohegan Tribe Of Indians Of Connecticut (southeasterly
street line of Sandy Desert Road) at a northwesterly corner of the herein-described tract and on the dividing line between the herein-described tract and other land of The United States Of America In Trust For The Mohegan Tribe Of Indians Of
Connecticut; 
 Thence running South 02° 41’ 50” East for a distance of 322.32 feet to a point; 

Thence running North 85° 24’ 27” East for a distance of 304.00 feet to a point; 

Thence running South 04° 35’ 33” East for a distance of 254.69 feet to a point; 

Thence running North 85° 28’ 43” West for a distance of 52.08 feet to a point; 

Thence running South 06° 35’ 16” East for a distance of 190.41 feet to a point; 

Thence running South 52° 42’ 03” East for a distance of 63.49 feet to a point; 

Thence running in a general southeasterly direction along the arc of a curve to the left with a radius of 400.00 feet, a central angle of
17° 33’ 57” for a distance of 122.63 feet to a point; 
 Thence running South 70° 16’ 00” East for a distance of
141.88 feet to a point; 
 Thence running in a general southeasterly direction along the arc of a curve to the right with a radius of
1240.00 feet, a central angle of 17° 06’ 42” for a distance of 370.34 feet to a point; 
 Thence running South 53°
09’ 17” East for a distance of 184.55 feet to a point; 
 Thence running in a general southeasterly direction along the arc of a
curve to the left with a radius of 1150.00 feet, a central angle of 23° 37’ 52” for a distance of 474.31 feet to a point; 

Thence running South 76° 47’ 09” East for a distance of 402.28 feet to a point; 

Thence running in a general southeasterly direction along the arc of a curve to the right with a radius of 649.90 feet, a central angle of
30° 29’ 57” for a distance of 345.95 feet to a point; 
 Thence running South 46° 17’ 12” East for a distance of
137.84 feet to a point; 
 Thence running in a general southeasterly direction along the arc of a curve to the left with a radius of 350.09
feet, a central angle of 20° 44’ 48” for a distance of 126.77 feet to a point; 
 Thence running South 67° 02’
00” East for a distance of 358.04 feet to a point; 
 Thence running in a general southeasterly direction along the arc of a curve to
the left with a radius of 850.00 feet, a central angle of 11° 27’ 44” for a distance of 170.05 feet to a point; 
 Thence
running South 78° 29’ 44” East for a distance of 290.02 feet to a point; 
 Thence running in a general southeasterly
direction along the arc of a curve to the right with a radius of 649.90 feet, a central angle of 45° 11’ 01” for a distance of 512.51 feet to a point; 

  
 Page 20 of 27 

 Thence running South 33° 18’ 27” East for a distance of 546.87 feet to a point;

 Thence running in a general southeasterly direction along the arc of a curve to the left with a radius of 624.21 feet, a central angle of
07° 41’ 21” for a distance of 83.77 feet to the southerly corner of the herein described tract; 
 Thence running North
17° 46’ 50” West for a distance of 86.72 feet to a point; 
 Thence running North 15° 59’ 54” West for a
distance of 69.57 feet to a point; 
 Thence running North 13° 09’ 20” West for a distance of 241.49 feet to a point; 

Thence running North 08° 51’ 10” West for a distance of 99.13 feet to a point; 

Thence running North 13° 11’ 22” West for a distance of 44.72 feet to a point; 

Thence running North 06° 55’ 31” West for a distance of 44.45 feet to a point; 

Thence running North 73° 35’ 41” East for a distance of 71.66 feet to a point; 

Thence running North 73° 57’ 46” East for a distance of 48.45 feet to a concrete monument recovered, the last twenty-nine
courses being bounded by other land of The United States Of America In Trust For The Mohegan Tribe Of Indians Of Connecticut; 
 Thence
running North 75° 05’ 39’ East for a distance of 190.94 feet, bounded southeasterly in part by land now or formerly of The United States Of America In Trust For The Mohegan Tribe Of Indians Of Connecticut and in part by land now or
formerly of Southeastern Connecticut Regional Resource Recovery Authority to a concrete monument recovered; 
 Thence running North 73°
18’ 39” East for a distance of 166.10 feet to an angle point; 
 Thence running North 75° 48’ 39” East for a
distance of 241.15 feet to a point at Connecticut Grid Coordinates North 738813.29, East 1183036.66; 
 Thence continuing North 75°
48’ 39” East for a distance of 242.59 feet to the southeasterly corner of the herein described tract, said point lying in the southwesterly line of land now or formerly of Central Vermont Railway, Inc., the last three courses being bounded
southeasterly by land now or formerly of Southeastern Connecticut Regional Resource Recovery Authority; 
 Thence running North 44°
36’ 07” West for a distance of 550.97 feet to a point; 
 Thence running in a general northwesterly direction along the arc of a
curve to the left with a radius of 3100.09 feet, a central angle of 02° 45’ 25” for a distance of 149.17 feet to a point; 

Thence running in a general northwesterly direction along the arc of a curve to the left with a radius of 3100.00 feet, a central angel of
04° 34’ 39” for a distance of 247.66 feet to a point; 
 Thence running North 51° 56’ 11” West for a distance of
150.00 feet to a point; 
 Thence running in a general northwesterly direction along the arc of a curve to the right with a radius of
1132.75 feet, a central angle of 37° 19’ 02” for a distance of 737.77 feet to a point; 
 Thence running in a general
northerly direction along the arc of a curve to the right with a radius of 883.00 feet, a central angle of 38° 49’ 37” for a distance of 598.37 feet to a concrete monument recovered, the last six courses being bounded northeasterly and
easterly by land now or formerly of Central Vermont Railway, Inc.; 
 Thence running North 45° 14’ 00” West for a distance of
35 feet, more or less, bounded northeasterly by land now or formerly of Central Vermont Railway, Inc. to a monument set in the tidal high water mark of Trading Cove; 

Thence running in a general westerly direction along the high water line of Trading Cove for a distance of 3743 feet, more or less, to a point
which is located North 06° 33’ 05” East 46.19 feet, more or less, from a rebar recovered at Connecticut Grid Coordinates North 741768.53, East 1179180.50; 

Thence running South 73° 11’ 16” West for a distance of 47.19 feet to a point; 

Thence running North 67° 36’ 12” West for a distance of 85.68 feet to a point; 

Thence running South 85° 23’ 15” West for a distance of 65.63 feet to a point; 

Thence running North 53° 15’ 03” West for a distance of 31.70 feet to a point; 

Thence running South 80° 46’ 00” West for a distance of 129.04 feet to a point; 

Thence running South 66° 40’ 04” West for a distance of 119.30 feet to a point; 

  
 Page 21 of 27 

 Thence running South 30° 51’ 05” West for a distance of 79.03 feet to a point; 

Thence running South 21° 12’ 37” West for a distance of 54.48 feet to a point; 

Thence running South 30° 38’ 48” West for a distance of 71.70 feet to a point; 

Thence running South 54° 21’ 53” West for a distance of 64.18 feet to a point; 

Thence running South 84° 29’ 14” West for a distance of 37.74 feet to a point; 

Thence running South 70° 45’ 03” West for a distance of 33.40 feet to a point; 

Thence running South 85° 08’ 37” West for a distance of 30.59 feet to other land of The United States Of America In Trust For
The Mohegan Tribe Of Indians Of Connecticut, the last thirteen courses running by and along the high water line of Trading Cove and Trading Cove Brook; 

Thence running South 19° 50’ 46” East for a distance of 166.88 feet, more or less, to a magnetic nail set at Connecticut Grid
Coordinates North 741387.23, East 1178541.75; 
 Thence running South 25° 52’ 30” West for a distance of 93.15 feet to a
point; 
 Thence running South 19° 16’ 42” West for a distance of 88.89 feet to a point; 

Thence running South 23° 30’ 04” West for a distance of 25.54 feet to a point; 

Thence running South 22° 56’ 36” West for a distance of 86.75 feet to a point; 

Thence running South 17° 49’ 59” West for a distance of 17.42 feet to a point; 

Thence running South 26° 13’ 48” West for a distance of 10.39 feet to a point; 

Thence running South 11° 12’ 53” West for a distance of 175.67 feet to a point, said point lying in the northerly line of a
traveled way known as “Sandy Desert Road”, as shown on the hereinafter referenced plan, the last eight courses being bounded by other land of The United States Of America In Trust For The Mohegan Tribe Of Indians Of Connecticut; 

Thence running North 87° 55’ 48” East for a distance of 27.68 feet to a point; 

Thence running North 02° 35’ 12” West for a distance of 17.00 feet to a point; 

Thence running North 87° 45’ 34” East for a distance of 132.67 feet to a point; 

Thence running North 89° 48’ 34” East for a distance of 289.76 feet to a point; 

Thence running North 88° 01 ’ 34” East for a distance of 253.74 feet to a concrete monument with brass disk recovered; 

Thence running South 07° 16’ 42” West for a distance of 52.35 feet to a point; 

Thence running South 88° 08’ 28” West for a distance of 246.94 feet to a point; 

Thence running South 89° 56’ 24” West for a distance of 294.38 feet to the point and place of beginning, the last eight courses
being bounded by other land of The United States Of America In Trust For The Mohegan Tribe Of Indians Of Connecticut and said Sandy Desert Road. 
 Said
Lease Area Containing 196 acres, more or less. 
 Together with the non-exclusive right to pass and repass over that certain roadway known as Sandy Desert
Road (which roadway leads from the westerly portion of the herein described property to Conn. Route #32 as shown on said map), as the same now exists or may hereafter be relocated, expanded or extended, including any extension thereof from the
northwesterly portion of the herein described property to Conn. Route #32; and 
 Together with the non-exclusive right to pass and repass over that certain
roadway known as Trading Cove Road (which roadway leads from the northwesterly portion of the herein described property to Conn. Route #32 as shown on said map), as the same now exists or may hereafter be relocated, expanded or extended; and 

Together with the non-exclusive right to pass and repass over that certain roadway known as Mohegan Sun Boulevard, as the same now exists or may hereafter be
relocated, expanded or extended, which roadway leads from the southeasterly portion of the herein described property to Conn. Route #2A as shown on said map; and 

  
 Page 22 of 27 

 Together with all rights, easements, hereditaments and appurtenances thereto appertaining and all right, title
and interest, if any, in and to strips and gores adjoining said premises and in and to the land lying in the bed of any street or streets adjoining said premises. 

EXCEPTING THEREFROM that certain piece or parcel of land together with the improvements thereon located, shown as: 

Beginning at the northwesterly corner of the herein described Hotel Lease Area, said point having coordinates of North 741,349.56 feet, East
1,180,631.40 feet, as more particularly shown on the herein referenced survey plan; 
 Thence running S63° 51’ 11”E by and
along the edge of said Hotel Lease Area, for a distance of 46.84 feet to a point; 
 Thence running N06° 10’ 48”E by and along
the edge of said Hotel Lease Area, for a distance of 12.54 feet to a point; 
 Thence running S63° 42’ 51”E by and along the
edge of said Hotel Lease Area, for a distance of 20.58 feet to a point; 
 Thence running S66° 26’ 35”E by and along the edge
of said Hotel Lease Area, for a distance of 62.37 feet to a point; 
 Thence running S36° 06’ 28”E by and along the edge of
said Hotel Lease Area, for a distance of 40.95 feet to a point; 
 Thence running in a general southeasterly direction along the arc of a
curve to the right having a central angle of 09o54’45”, a radius of 95.74’, a chord bearing of S66° 55’ 39”E and a chord length of 16.54 feet, by and along the edge of said Hotel Lease Area, for a distance of 16.56
feet to a point; 
 Thence running S64° 30’ 28”E by and along the edge of said Hotel Lease Area, for a distance of 33.30 feet
to a point; 
 Thence running in a general southeasterly direction along the arc of a curve to the left having a central angle of
18o01’22” and a radius of 95.00’, a chord bearing of S76° 02’ 54”E and a chord length of 29.76 feet, by and along the edge of said Hotel Lease Area, for a distance of 29.88 feet to a point; 

Thence running S85° 03’ 35”E by and along the edge of said Hotel Lease Area, for a distance of 11.66 feet to a point; 

Thence running in a general southeasterly direction along the arc of a curve to the right having a central angle of 52o22’26”
and a radius of 45.00’, a chord bearing of S58° 52’ 23”E and a chord length of 39.72 feet, by and along the edge of said Hotel Lease Area, for a distance of 41.13 feet to a point; 

Thence running in a general southeasterly direction along the arc of a curve to the right having a central angle of 39o05’07”
and a radius of 68.00’, a chord bearing of S13° 08’ 36”E and a chord length of 45.49 feet, by and along the edge of said Hotel Lease Area, for a distance of 46.39 feet to a point; 

Thence running in a general southerly direction along the arc of a curve to the left having a central angle of 18o17’17” and a
radius of 95.00’, a chord bearing of S02° 44’ 41”E and a chord length of 30.19 feet, by and along the edge of said Hotel Lease Area, for a distance of 30.32 feet to a point; 

Thence running S24° 22’ 59”E by and along the edge of said Hotel Lease Area, for a distance of 26.59 feet to the southeasterly
corner of the herein described lease area; 
 Thence running in a general northwesterly direction along the arc of a curve to the left
having a central angle of 105o50’47” and a radius of 10.00’, a chord bearing of N83° 51’ 50”W and a chord length of 15.96 feet, by and along the edge of said Hotel Lease Area, for a distance of 18.47 feet to a
point; 

  
 Page 23 of 27 

 Thence running in a general westerly direction along the arc of a curve to the right having a
central angle of 81o53’24” and a radius of 88.00’, a chord bearing of S84° 09’ 28”W and a chord length of 115.34 feet, by and along the edge of said Hotel Lease Area, for a distance of 125.77 feet to a point; 

Thence running S56° 38’ 55”W by and along the edge of said Hotel Lease Area, for a distance of 80.16 feet to a point having
coordinates of North 741,071.96 feet, East 1,180,719.52 feet; 
 Thence running N53° 49’ 12”W by and along the edge of said
Hotel Lease Area, for a distance of 135.67 feet to a point having coordinates of North 741,152.05 feet, East 1,180,610.01 feet; 
 Thence
running N06° 10’ 48”E by and along the edge of said Hotel Lease Area, for a distance of 198.67 feet to the point and place of beginning; 

Said Hotel Lease Area being bounded on all sides by other land of the United States of America In Trust For The Mohegan Tribe of Indians of Connecticut
(Leased to The Mohegan Tribal Gaming Authority) (“Tribe’s Other Land”); 
 Said Hotel Lease Area contains 1.21 acres, more or less
(52,764 square feet, more or less), and is more particularly shown as “HOTEL LEASE AREA” on a survey plan entitled: “Mohegan Hotel Lease Area Mohegan Tribe of Indians of Connecticut Mohegan Sun Resort Casino” 1 Mohegan Sun
Boulevard Uncasville (Montville), Connecticut” Date: 01/28/2015 Scale: 1’=20’, Project # 2014-051. Prepared By The Mohegan Tribe, CAD/GIS Document Control Department. 

Together with the non-exclusive right to use on, over and across the Tribe’s Other Land the public access roads (including Mohegan Sun Boulevard and Cove
Road) and public parking areas in common with others (and subject to the rules and regulatory requirements of the Tribe or its designee) on the Tribe’s Other Land to serve the HOTEL LEASE AREA, together with the right to construct, install,
maintain, repair, replace, use and operate the “PROPOSED VALET DRIVEWAY”, the “PROPOSED HOTEL LOADING DOCK”, and the “PROPOSED HOTEL CONNECTOR TO WINTER ENTRANCE” all as shown on the aforesaid survey plan, provided,
however, that such driveway, loading dock and connector shall be subject to relocation at any time and from time to time by the Tribe or its designee as the Tribe may require, so long as such relocation does not unreasonably interfere with the use
of the HOTEL LEASE AREA for its intended purposes; and 
 Together with the non-exclusive right to use and operate in, on, over and across the Tribe’s
Other Land the utilities lines serving the Tribe’s Other Land to serve the HOTEL LEASE AREA, together with the non-exclusive right to construct, install, maintain, repair, replace, use and operate, in, on , over and across the Tribe’s
Other Land such electric power, water, sanitary and storm sewer, and other utilities serving the HOTEL LEASE AREA, all as shown on the plans and specifications for the construction of the Hotel delivered to and approved by the Tribe and subject to
the regulatory requirements of the Tribe, provided, however, that such utilities shall be subject to relocation at any time and from time to time by the Tribe or its designee as the Tribe may require, so long as such relocation does not unreasonably
interfere with the use of the HOTEL LEASE AREA for its intended purposes. 

  
 Page 24 of 27 

 Exhibit B 

Map Depicting Premises 

  
 Page 25 of 27 

 Exhibit C 

Tribal Licensing, Permitting and Approvals for Use 

See the Mohegan Tribe Code of Laws as the same may be amended from time to time. 

  
 Page 26 of 27 

 Exhibit D 

Tribal Taxes, Fees, Assessments and Other Charges for Use 

The Tribe imposes no taxes, fees, assessments or other charges on the Authority for use of the Premises. 

However, the Tribe imposes meals tax, hotel occupancy tax, sales tax and admissions tax on the business activities of the Authority and its tenants in
accordance with the Mohegan Tribal Tax Code, Chapter 7, Article V of the Mohegan Tribe Code, as the same may be amended from time to time. The Authority is also responsible for the regulatory charges for enforcement of Tribal laws as set forth in
the Mohegan Tribe Code of Laws, as the same may be amended from time to time. 

  
 Page 27 of 27stlt_ex1035.htm

EXHIBIT 10.35
 
FORBEARANCE AND REFINANCING AGREEMENT
 
This Forbearance and Refinancing Agreement (the “Agreement”) is hereby entered into by and between Spotlight Innovation Inc. (“Spotlight”) and K4 Enterprises, LLC (“K4”) effective as October 18, 2016 (the “Effective Date”). 
 
WHEREAS, K4 is currently a substantial shareholder and the largest creditor of Spotlight. At this time, Spotlight is currently in default of its payment obligations to K4 under that certain $2,500,000 Convertible Note dated December 31, 2015 (the “$2.5M Note”). 
 
WHEREAS, in addition, K4 has already provided Spotlight with $700,000 of short term financing partially evidenced by a $100,000 Demand Note dated May 9, 2016 (together, the “$700K Loan”), with the remainder of such loan being undocumented. 
 
WHEREAS, K4 has not exercised its rights under the $2.5M Note given Spotlight’s default, and is willing to continue to forbear the exercise of its rights, and is also willing to renegotiate and modify the terms of the $700K Loan pursuant to the terms and conditions herein.
 
WHEREAS, Spotlight desires to improve its overall financing structure, and resolve any and all currently outstanding defaults related to the $2.5M Note and $700K Loan pursuant to the terms and conditions herein. 
 
WHEREAS, Spotlight’s Board of Directors approved K4’s proposal to forbear and refinance the $2.5M Note, and document the $700K Loan on the terms set forth herein by unanimous consent dated August 29, 2016.
 
NOW THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows:
 
1. Refinancing of $2.5M Note. In exchange for the consideration herein, and the amendments to the $2.5M Note, K4 and Spotlight agree that they will amend and restate the $2.5M Note as set forth in form attached as Exhibit A (the “Amended $2.5M Note”). K4 shall surrender the original $2.5M Note to Spotlight for cancellation prior to receiving the executed Amended $2.5M Note.
 
2. Conversion of $700K Loan. In exchange for the consideration herein, K4 agrees that the entire $700K Loan and all accrued interest thereon shall be deemed fully and completely satisfied. K4 shall surrender the original promissory note incorporated in the $700K Loan to Spotlight for cancellation.
 
3. Issuance of Spotlight Common Stock. As consideration for K4 providing Spotlight the $750K Loan, K4’s forbearance in enforcing its rights under the $2.5M Note, and the terms set forth in this Agreement, Spotlight agrees that it will issue Four Million (4,000,000) shares of Spotlight’s common stock to K4, with a standard restrictive legend. Such shares will be issued no later than thirty (30) days after the Effective Date.
 
	 
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4. Warrants.
 
(a) K4 is currently the holder of the following warrants to acquire Spotlight’s common stock (the “Existing Warrants”), which K4 agrees shall be terminated and cancelled as set forth herein:
 
	Issuance Date
		Expiration Date
		Exercise Price
		# Warrants / Shares

	10/05/2013
		10/05/2016
		$1.46 / share
		120,000

	10/05/2013
		10/05/2017
		$1.46 / share
		120,000

	10/05/2013
		10/05/2018
		$1.46 / share
		120,000

	12/31/2015
		12/31/2018
		$1.00 / share
		300,000

	12/31/2015
		12/31/2018
		$1.25 / share
		200,000

 
Spotlight and K4 agree to amend the Existing Warrants to change the expiration date to December 31, 2019. Such amendment will be accomplished by terminating the Existing Warrants, and Spotlight issuing new warrant agreements to K4 in the forms set forth as Exhibits B, C, and D (the “Amended Warrants”). K4 will surrender the Existing Warrants to Spotlight for cancellation prior to receiving the Amended Warrants.
 
(b) As additional consideration for K4’s forbearance and agreement to the terms set forth in this Agreement, Spotlight agrees that it will issue to K4 an additional warrant to purchase 500,000 shares of Spotlight’s common stock at an exercise price of $1.00 per share and an expiration date of December 31, 2019, all in the form set forth as Exhibit E.
  
5. Waiver of Prior Defaults. K4 hereby waives any and all defaults of Spotlight arising prior to the Effective Date of this Agreement related to the $2.5M Note and the $700K Loan. Nothing herein shall be construed as a waiver of any future default under this Agreement or the instruments entered into pursuant hereto. 
 
6. Release of Certain Claims. K4 hereby irrevocably releases and discharges Spotlight, and any of its predecessors, successors, officers, directors, shareholders, employees and representatives from any and all liabilities, obligations, claims, and promises that Spotlight may owe to K4 related to the transactions entered into between Spotlight, K4, and other third parties related to the Jason Greig and Tim Danley transactions. This Agreement does not constitute an admission of liability by Spotlight related to such liabilities, obligations, claims, or promises.
 
7. Integrated Agreement; Severability. This Agreement constitutes the entire understanding between the parties concerning the subject matter hereof. No other prior or contemporaneous representations, inducements, promises, or agreements, oral or otherwise, between the parties relating to the subject matter hereof and not embodied in this Agreement shall be of any force or effect. This Agreement shall not be modified except in a writing signed by all parties hereto. If any provision of this Agreement shall for any reason be held to be invalid, unenforceable, or contrary to public policy, whether in whole or in part, the remaining provisions shall not be affected by such holding.
 
8. Binding Agreement. This Agreement is binding upon, and shall inure to the benefit of, the parties hereto and their respective heirs, representatives, successors and assigns.
 
9. Review by Parties and Counsel. The Parties acknowledge and agree that they have carefully read and fully understand the terms, provisions and legal effect of this Agreement, and they are signing it of their own free will, after having consulted independent legal counsel, or having the opportunity to consult with independent legal counsel, with full knowledge of its significance, and solely in reliance on their own knowledge, belief and judgment and that of their legal counsel.
    	 
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10. Applicable Law, Jurisdiction and Venue. This Agreement shall in all respects be governed by the laws of the State of Iowa. All actions arising from or relating to this Agreement shall be commenced and prosecuted in either the state or federal court that encompasses and governs Polk County, Iowa.
 
11. Counterparts. This Agreement may be executed in one or more counterparts, all of which shall together constitute one and the same instrument and shall become effective when one or more counterparts have been signed by each and every Party hereto and delivered to each and every other Party hereto.
 
12. Due Authority. By signing below, each party warrants and represents that the person signing this Agreement on its behalf has authority to bind that party and that the party's execution of this Agreement is not in violation of any bylaw, covenants and/or other restrictions placed upon them.
 
13. Breach of Agreement. If either party breaches any provision of this Agreement binding upon it, the non-breaching and prevailing party shall be entitled to recover from the breaching party all costs and expenses resulting from such breach including, but not limited to, reasonable attorney’s fees.
 
14. Accredited Investor. K4 is an “accredited investor” as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act, it is able to bear the economic risk of any investment hereunder.
 
[Signature Page Follows]
 
	 
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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement effective as of the Effective Date set forth above.
 
	SPOTLIGHT INNOVATION INC.	 	K4 ENTERPRISES, LLC	
	 
	 
	 
	 
	 
	
	By: 	 	 	By:	 	
	Print: 	Cristopher Grunewald 	 	Print:	Michael Kemery	
	Title: 
	Chief Executive Officer 
	 
	Title:
	Manager
	

    	 
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EXHIBIT A
 
THIS NOTE AND THE SHARES OF COMMON STOCK WHICH MAY BE PURCHASED PURSUANT TO THE CONVERSION OF THIS NOTE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION UNLESS THE TRANSFER IS IN ACCORDANCE WITH RULE 144 OR A SIMILAR RULE AS THEN IN EFFECT UNDER THE SECURITIES ACT OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO IT STATING SUCH SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE ACT. 
 
SPOTLIGHT INNOVATION INC.
 
AMENDED AND RESTATED CONVERTIBLE NOTE

 
	Issuance Date: October 18, 2016
	$2,500,000.00

 
FOR VALUE RECEIVED, Spotlight Innovation Inc., a Nevada corporation (the “Company”), hereby promises to pay to the order of K4 Enterprises, LLC, (the “Holder”), the principal sum of Two Million Five Hundred Thousand Dollars (US$2,500,000) in lawful money of the United States of America, together with interest thereon at the rate of eight percent (8%) per annum. Interest will begin to accrue on this Convertible Note (the “Note”) on January 1, 2017. Interest shall be computed on the basis of a 365-day year for the actual number of days elapsed and shall compound monthly for all amounts outstanding. This Note amends and restates that certain Convertible Note between the Company and Holder (under its d/b/a K4, LLC) dated December 31, 2015 in the principal amount of $2,500,000, the consideration for such amendments consisting of the terms and conditions set forth herein. Any prior loan agreements, obligations or related documents other than this Note pertaining to the obligations referenced herein are terminated, null and void. 
 
1. Interest Payments. Interest shall not begin accruing until January 1, 2017. Thereafter, interest shall accrue and shall be payable on the earlier of the Maturity Date, a conversion (pursuant to Section 3 below), or payment by the Company of the outstanding principal amount. 
 
2. Prepayment. The Company shall have the right to prepay all or a portion of the outstanding principal sum, and unpaid interest, of this Note as follows:
 
(a) On or before December 31, 2017 only with the written consent of the Holder, such consent not to be unreasonably withheld, for such purposes including but not limited to a NASDAQ listing of the securities of the Company or as a condition to an equity financing by the Company; and
 
(b) At any time after December 31, 2017 upon thirty days written notice by the Company to the Holder.
 
3. Conversion.
 
(a) Optional Conversion. The Holder shall have the right to convert all or a portion of the principal sum of this Note and any accrued interest into shares of common stock of the Company in denominations of not less than Two Hundred Fifty Thousand ($250,000) Dollars at any time prior to, or on the Maturity Date at a discount of Fifteen Percent (15%) of the average price of the common stock of the Company during the 20 consecutive trading days immediately prior to such conversion, but not less than $0.75. If the Holder elects such Optional Conversion the Holder shall send to the Company the completed Conversion Notice annexed hereto as Exhibit A.
    	 
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(b) Fractional Shares. The Company shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp and similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount. 
 
(c) Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. If the Company, at any time while this Note is outstanding, shall (i) pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock, (ii) subdivide outstanding shares of Common Stock into a larger number of shares, (iii) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issue by reclassification of shares of the Common Stock any shares of capital stock of the Company, then the conversion price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, or shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.
 
4. Events Of Default. Each of the following shall constitute an “Event of Default”.
 
(a) Failure to make any required payment after ten (10) days of receipt of notice by Holder that such payment was not made; or 
 
(b) Upon any Voluntary Bankruptcy or Insolvency Proceedings, which is defined as any of the following actions by the Company: (i) applying for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property; (ii) making a general assignment for the benefit of its creditors; (iii) dissolution or liquidation; (iv) commencing a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it; or (v) taking any material action to effect any of the foregoing. 
 
(c) upon any Involuntary Bankruptcy or Insolvency Proceedings, which is defined as proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to the Company or the debts thereof under any bankruptcy, insolvency, or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within sixty (60) days of commencement.
 
Upon the occurrence of any Event of Default, the Holder may, at its option, declare in writing all principal and interest due hereunder to be due and payable immediately and, upon any such declaration, the same shall become and be immediately due and payable. Upon the occurrence of any Event of Default, the Holder may, in addition to declaring all amounts due hereunder to be immediately due and payable, pursue any available remedy, whether at law or in equity.
 
5. Maturity Date. The Maturity Date of this Note shall be December 31, 2021.
    	 
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6. Notices. 
 
(a) Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) Trading Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:
 
	If to the Company, to:
	Spotlight Innovation Inc.
	 
	 
	6750 Westown Parkway, Suite 200-226
West Des Moines, Iowa 50266 
Attention: Cristopher Grunewald, President and Chief Executive Officer
	 
	 
	Telephone: (515) 274-9087
	 
		 
	 
	If to the Holder, at such address as set forth on the signature page attached hereto.
	

 
7. Choice of Law. This Note shall be governed by and construed in accordance with the laws of the State of Iowa without regard to the principles of conflict of laws. The parties further agree that any action between them shall be heard in Polk County, Iowa.
 
8. Waiver of Presentment, Demand and Dishonor. No delay on the part of the Holder in exercising any power or right hereunder shall operate as a waiver of any such power or right; nor shall any single or partial exercise of any power or right preclude any other or further exercise of such power or right, or the exercise of any other power or right, and no waiver whatsoever shall be valid unless in writing, signed by the Holder, and then only to the extent expressly set forth herein. No remedy is exclusive of any other remedy and all remedies shall be cumulative to the maximum extent permitted by applicable law. Except as otherwise set forth herein, the Company hereby waives presentment, demand for repayment, diligence, notice of dishonor and all other notices or demands in connection with the delivery acceptance, performance, default or endorsement of this Note.
 
9. Cost of Collection. Maker shall pay to Holder all reasonable costs and expenses of Holder incurred in any collection action under this Note, including, without limitation, court costs, reasonable attorneys’ fees, expenses and disbursements.
  
	 
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10. Severability. If any provision of this Note is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable, in any respect under applicable law, such provision will be enforced to the maximum extent possible given the intent of the parties hereto, and the balance of this Note shall remain in effect. 
 
11. Reports. The Holder has been furnished with or has had access at the EDGAR Website of the Securities Exchange Commission to the Company's filings available at the EDGAR Website (hereinafter referred to collectively as the "Reports"). In addition, the Holder has received in writing from the Company such other information concerning its operations, financial condition and other matters as the Holder has requested in writing, and considered all factors the Holder deems material in deciding on the advisability of investing in the Securities. 
 
12. Unconditional Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the amounts due under this Note when due. This Note is a direct obligation of the Company. 
 
13. Transaction Costs. Each party shall be responsible for all costs and expenses it incurs in connection with the preparation of this Note.
 
14. Warrants. The warrants previously issued pursuant to the original Convertible Note dated December 31, 2015, shall continue in full force and effect, as they may be amended pursuant to that certain Forbearance and Refinancing Agreement dated contemporaneously herewith.
 
[Signature Page Attached Hereto]
 
	 
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IN WITNESS WHEREOF, the Company has caused this Convertible Note to be duly executed by a duly authorized officer as of the date set forth above.
 
	 
	COMPANY:
	
	 
	 
	 

	 
	SPOTLIGHT INNOVATION INC.
	
				
	 
	By:
	 
	
	 
	Name: 	Cristopher Grunewald 
	
	 
	Title: 	President and Chief Executive Officer 
	

 
IN WITNESS WHEREOF, the undersigned Holder hereby agrees to the terms set forth in this Note.
    	K4 ENTERPRISES, LLC
	
	 	 	 
	By:		
	Name:
	Michael Kemery	 
	Title:	Manager	 
	Address:	124 62nd Street	 
	 
	West Des Moines, IA 50266
	 

    	 
	9

	

	 

 
EXHIBIT A
 
CONVERSION NOTICE
 
The undersigned hereby irrevocably elects to convert $ ___________ of the principal sum of this Note into shares of Common Stock of Spotlight Innovation Inc., according to the conditions stated therein, as of the Conversion Date written below.
 
	Conversion Date:
	__________________________________ 
		 

	Conversion Price:
	$_________________________________

	 
	 

	Number of shares of Common Stock to be issued:
	__________________________________
		 

	Please issue the shares of Common Stock in the following name and to the following address:

		 

	Name:
	____________________________________________________

	 
	 

	Address:
	____________________________________________________

	 
	____________________________________________________

	 
	____________________________________________________

 
	Authorized Signature:
	By:
	______________________________
	 
	Name: 
	______________________________
	 
	Date:
	______________________________

 
	 
	10

	

	 

 
EXHIBIT B
 
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
 
WARRANT TO PURCHASE
SHARES OF COMMON STOCK
OF
SPOTLIGHT INNOVATION INC.
Expires: December 31, 2019
 
	Warrant Share Number: 360,000
	Warrant Price: $1.46

	 
	 

	Date of Issuance: October 18, 2016
	Expiration Date: December 31, 2019

 
FOR VALUE RECEIVED, the undersigned, Spotlight Innovation Inc., a Nevada corporation (together with its successors and assigns, the “Issuer”), hereby certifies that K4 Enterprises, LLC (“Holder”) is entitled to subscribe for and purchase, during the Term (as hereinafter defined), up to the number of Warrant Shares set forth above (subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid and non-assessable Common Stock of the Issuer, par value $0.001 per share (the “Common Stock”), at an exercise price per share equal to the Warrant Price then in effect, subject, however, to the provisions and upon the terms and conditions hereinafter set forth. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in Section 6 hereof. This warrant is being issued in connection with the cancellation of those certain warrants (3) to purchase an aggregate of 360,000 shares of common stock of the Issuer dated October 5, 2013 held by the Holder.
 
1. Term. The term of this Warrant shall commence on the Date of Issuance and shall expire at 5:00 p.m., Central Time, on the Expiration Date (such period being the “Term”).
 
2. Method of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange.
 
(a) Time of Exercise. The purchase rights represented by this Warrant may be exercised in whole or in part during the Term beginning on the date of issuance hereof.
 
(b) Method of Exercise. The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the exercise form attached hereto duly executed) at the principal office of the Issuer, and by the payment to the Issuer of an amount of consideration therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares of Warrant Stock with respect to which this Warrant is then being exercised, payable at such Holder’s election by certified or official bank check or by wire transfer to an account designated by the Issuer.
    	 
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(c) Issuance of Stock Certificates. In the event of any exercise of this Warrant in accordance with and subject to the terms and conditions hereof, certificates for the shares of Warrant Stock so purchased shall be dated the date of such exercise and delivered to the Holder hereof within a reasonable time, not exceeding three (3) business days after such exercise (the “Delivery Date”). The Holder shall deliver this original Warrant to the Issuer, or an indemnification undertaking with respect to such Warrant in the case of its loss, theft, or destruction, at such time that this Warrant is fully exercised. With respect to partial exercises of this Warrant, the Issuer shall keep written records for the Holder of the number of shares of Warrant Stock exercised as of each date of exercise and shall deliver a replacement warrant on identical terms as this Warrant for the balance of Warrant Stock that has not been previously exercised by the Holder.
 
(d) Transferability of Warrant. Subject to Section 2(f) hereof, this Warrant may be transferred by a Holder, in whole or in part. If transferred pursuant to this paragraph, this Warrant may be transferred on the books of the Issuer by the Holder hereof in person or by duly authorized attorney, upon surrender of this Warrant at the principal office of the Issuer, properly endorsed (by the Holder executing an assignment in the form attached hereto) and upon payment of any necessary transfer tax or other governmental charge imposed upon such transfer. This Warrant is exchangeable at the principal office of the Issuer for Warrants to purchase the same aggregate number of shares of Warrant Stock, each new Warrant to represent the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange. All Warrants issued on transfers or exchanges shall be dated the Original Issue Date and shall be identical with this Warrant except as to the number of shares of Warrant Stock issuable pursuant thereto.
 
(e) Continuing Rights of Holder. The Issuer will, at the time of or at any time after each exercise of this Warrant, upon the request of the Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights to which such Holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant, provided that if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the Issuer to afford such rights to such Holder.
 
(f) Compliance with Securities Laws.
 
(i) The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Warrant Stock to be issued upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and any applicable state securities laws.
  
	 
	12

	

	 

 
(ii) Except as provided in paragraph (iii) below, this Warrant and all certificates representing shares of Warrant Stock issued upon exercise hereof shall be stamped or imprinted with legends in substantially the following form:
 
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
 
(iii) The Issuer agrees to reissue this Warrant or certificates representing any of the Warrant Stock, without the legend set forth above if at such time, prior to making any transfer of any such securities, the Holder shall give written notice to the Issuer describing the manner and terms of such transfer. Such proposed transfer will not be effected until: (a) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that the registration of such securities under the Securities Act is not required in connection with such proposed transfer, (ii) the Issuer has received other evidence reasonably satisfactory to the Issuer that such registration and qualification under the Securities Act and state securities laws are not required, or (iii) the Holder provides the Issuer with reasonable assurances that such security can be sold pursuant to Rule 144 under the Securities Act; and (b) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that registration or qualification under the securities or “blue sky” laws of any state is not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or “blue sky” laws has been effected or a valid exemption exists with respect thereto. In the case of any proposed transfer under this Section 2(f), the Issuer will use reasonable efforts to comply with any such applicable state securities or “blue sky” laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable to the Issuer. The restrictions on transfer contained in this Section 2(f) shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Warrant. 
 
(g) Accredited Investor Status. In no event may the Holder exercise this Warrant in whole or in part unless the Holder is an “accredited investor” as defined in Regulation D under the Securities Act, at the time of exercise. 
  
	 
	13

	

	 

 
3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.
 
(a) Stock Fully Paid. The Issuer represents, warrants, covenants and agrees that all shares of Warrant Stock which may be issued upon the exercise of this Warrant or otherwise hereunder will, when issued in accordance with the terms of this Warrant, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by or through the Issuer. The Issuer further covenants and agrees that during the period within which this Warrant may be exercised, the Issuer will at all times have authorized and reserved for the purpose of the issuance upon exercise of this Warrant a number of authorized but unissued shares of Common Stock equal to at least one hundred percent (100%) of the number of shares of Common Stock issuable upon exercise of this Warrant without regard to any limitations on exercise.
 
(b) Reservation. If any shares of Common Stock required to be reserved for issuance upon exercise of this Warrant or as otherwise provided hereunder require registration or qualification with any Governmental Authority under any federal or state law before such shares may be so issued, the Issuer will in good faith use its best efforts as expeditiously as possible at its expense to cause such shares to be duly registered or qualified. 
 
(c) Loss, Theft, Destruction of Warrants. Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same number of shares of Common Stock.
 
(d) Payment of Taxes. The Issuer will pay any documentary stamp taxes attributable to the initial issuance of the Warrant Stock issuable upon exercise of this Warrant; provided, however, that the holder shall be required to pay any tax or taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificates representing Warrant Stock in a name other than that of the Holder in respect to which such shares are issued.
 
4. Adjustment of Warrant Price and Number of Shares Issuable Upon Exercise. The Warrant Price and the number of shares of Warrant Stock that may be purchased upon exercise of this Warrant shall be subject to adjustment from time to time as set forth in this Section 4. Upon each adjustment of the Warrant Price, the Holder of this Warrant shall thereafter be entitled to purchase, at the Warrant Price resulting from such adjustment, the number of shares of Common Stock obtained by multiplying the Warrant Price in effect immediately prior to such adjustment by the number of shares purchasable pursuant hereto immediately prior to such adjustment, and dividing the product thereof by the Warrant Price resulting from such adjustment.
  
	 
	14

	

	 

 
(a) Adjustment Due to Dividends, Stock Splits, Etc. If, at any time on or after the Original Issuance Date, the number of outstanding shares of Common Stock is increased by a (i) dividend payable in any kind of shares of capital stock of the Corporation, (ii) stock split, (iii) combination, (iv) reclassification or (v) other similar event, the Warrant Price shall be proportionately reduced by multiplication by a fraction of which the numerator shall be the number of outstanding shares of Common Stock immediately before such event and of which the denominator shall be the number of outstanding shares of Common Stock immediately after such event, or if the number of outstanding shares of Common Stock is decreased by a reverse stock split, combination or reclassification of shares, or other similar event, the Warrant Price shall be proportionately increased by multiplication by a fraction of which the numerator shall be the number of outstanding shares of Common Stock immediately before such event and of which the denominator shall be the number of outstanding shares of Common Stock immediately after such event. In such event, the Issuer shall notify the Corporation's Transfer Agent of such change on or before the effective date thereof.
 
(b) Adjustment Due to Merger, Consolidation, Etc. If, at any time after the Original Issuance Date, there shall be (i) any reclassification or change of the outstanding shares of Common Stock, (ii) any consolidation or merger of the Corporation with any other entity (other than a merger in which the Corporation is the surviving or continuing entity and its capital stock is unchanged), (iii) any sale or transfer of all or substantially all of the assets of the Corporation, (iv) any share exchange or tender offer pursuant to which all of the outstanding shares of Common Stock are effectively converted into other securities or property; or (v) any distribution of the Corporation’s assets to holders of the Common Stock as a liquidation or partial liquidation dividend or by way of return of capital (each of (i) - (v) above being a “Corporate Change”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Corporate Change if it had been, immediately prior to such Corporate Change, the holder of the number of shares of Warrant Stock then issuable upon exercise in full of this Warrant, and in any such case, appropriate provisions (in form and substance reasonably satisfactory to the Holder) shall be made with respect to the rights and interests of the Holder to the end that the economic value of the Warrant Stock is in no way diminished by such Corporate Change and that the provisions hereof including, without limitation, in the case of any such consolidation, merger or sale in which the successor entity or purchasing entity is not the Issuer, an immediate adjustment of the Warrant Price so that the Warrant Price immediately after the Corporate Change reflects the same relative value as compared to the value of the surviving entity’s common stock that existed immediately prior to such Corporate Change and the value of the Common Stock immediately prior to such Corporate Change. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Corporate Change, then the Holder shall be given the same choice as to the consideration it receives upon any exercise of this Warrant following such Corporate Change.
 
(c) Other Adjustments. If the Issuer takes any action affecting the Common Stock after the date hereof that would be covered by this Section 4, but for the manner in which such action is taken or structured, and such action would in any way diminish the value of the Warrant or Warrant Stock, then the Warrant Price shall be adjusted in such manner as the Board shall in good faith determine to be equitable under the circumstances.
  
	 
	15

	

	 

 
5. Fractional Shares. No fractional shares of Warrant Stock will be issued in connection with any exercise hereof, but in lieu of such fractional shares, the Issuer shall round the number of shares to be issued upon exercise up to the nearest whole number of shares.
 
6. Definitions. For the purposes of this Warrant, the following terms have the following meanings:
 
“Board” shall mean the Board of Directors of the Issuer.
 
“Capital Stock” means and includes (i) any and all shares, interests, participations or other equivalents of or interests in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether general or limited) in any Person which is a partnership, (iii) all membership interests or limited liability company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type.
 
“Common Stock” means the Common Stock, $0.001 par value per share, of the Issuer and any other Capital Stock into which such stock may hereafter be changed.
 
“Governmental Authority” means any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission, board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign.
 
“Holders” mean the Persons who shall from time to time own any Warrant. The term “Holder” means one of the Holders.
 
“Issuer” means Spotlight Innovation Inc., a Nevada corporation, and its successors. 
 
“Original Issue Date” means the original Date of Issuance set forth above.
 
“OTC Bulletin Board” means the over-the-counter electronic bulletin board.
 
“Person” means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization, joint venture, Governmental Authority or other entity of whatever nature.
 
“Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute then in effect.
 
“Term” has the meaning specified in Section 1 hereof.
 
“Warrants” means the Warrants issued pursuant to this Warrant, without limitation, and any other warrants of like tenor issued in substitution or exchange for any thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof or of any of such other Warrants. 
  
	 
	16

	

	 

 
“Warrant Price” initially means the amount set forth at the top of this Warrant, as such price may be adjusted from time to time as shall result from the adjustments specified in this Warrant, including Section 4 hereto.
 
“Warrant Share Number” means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased upon exercise of this Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the terms hereof.
 
“Warrant Stock” means Common Stock issuable upon exercise of any Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.
 
7. Amendment and Waiver. Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), by a written instrument or written instruments executed by the Issuer and the Holder; provided, however, that no such amendment or waiver shall reduce the Warrant Share Number, increase the Warrant Price, shorten the period during which this Warrant may be exercised or modify any provision of this Section 7 without the consent of the Holder of this Warrant. No consideration shall be offered or paid to any person to amend or consent to a waiver or modification of any provision of this Warrant unless the same consideration is also offered to all holders of the Warrants.
 
8. Governing Law; Jurisdiction. This Warrant shall be governed by and construed in accordance with the internal laws of the State of Iowa, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Warrant shall not be interpreted or construed with any presumption against the party causing this Warrant to be drafted. The Issuer and the Holder agree that venue for any dispute arising under this Warrant will lie exclusively in the state or federal courts located in Polk County, Iowa, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that Iowa is not the proper venue. The Issuer and the Holder irrevocably consent to personal jurisdiction in the state and federal courts of the State of Iowa. The Issuer and the Holder consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section shall affect or limit any right to serve process in any other manner permitted by law. The Issuer agrees to pay all costs and expenses of enforcement of this Warrant, including, without limitation, reasonable attorneys’ fees and expenses. The parties hereby waive all rights to a trial by jury.
 
9. Notices. TC "Section 7.4 Notices."\f C \l "2" All notices, requests, consents or other communications required or permitted hereunder to the Issuer shall be in writing and shall be hand delivered or mailed first class postage prepaid, registered or certified mail, to the following address:
 
Spotlight Innovation Inc.
c/o its CEO and CFO
6750 Westown Parkway, Suite 200-226
West Des Moines, Iowa 50266 
  
	 
	17

	

	 

 
Such notices and other communications shall, for all purposes of this Agreement, be treated as being effective upon being delivered personally or, if sent by mail, five days after the same has been deposited in a regularly maintained receptacle for the deposit of United States mail, addressed as set forth above, and postage prepaid. Any party hereto may from time to time change its address for notices by giving written notice of such changed address to the other party hereto.
 
10. Remedies. The Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.
 
11. Successors and Assigns. This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock.
 
12. Modification and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein, any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein.
 
13. Headings. The headings of the Sections of this Warrant are for convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.
 
IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day and year first above written.
 
 
	 	SPOTLIGHT INNOVATION INC.
	
	 	 	 	 
		By: 
		
	 
	Name: 	Cristopher Grunewald
	 
	 	Title: 	President and Chief Executive Officer
	 

 
	 
	18

	

	 

 
APPENDIX A
 
WARRANT EXERCISE FORM
 
Spotlight Innovation Inc.
 
The undersigned _______________, pursuant to the provisions of the within Warrant, hereby elects to purchase __________________ shares of Common Stock, par value $0.001 per share, of Spotlight Innovation Inc. covered by the within Warrant at a Warrant Price of $___________ per Warrant Share. The shares of Warrant Stock issuable upon exercise of this Warrant shall be delivered to the address set forth below.
 
The undersigned is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.
 
The Holder shall pay the sum of $______________ by certified or official bank check (or via wire transfer) to Spotlight Innovation Inc. in accordance with the terms of the Warrant. 
 
	Dated:	 
	 

	 
	 
	 

	Name:
	 
	 

	 
	 
	 

	Signature
	 
	 

	 
	 
	 

	Address
	 
	 

	 
	 
	 

	 
	 
	 

 
	 
	19

	

	 

 
EXHIBIT C
  
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
 
WARRANT TO PURCHASE
SHARES OF COMMON STOCK
OF
SPOTLIGHT INNOVATION INC.
Expires: December 31, 2019
 
	Warrant Share Number: 300,000
	Warrant Price: $1.00

	 
	 

	Date of Issuance: October 18, 2016
	Expiration Date: December 31, 2019

 
FOR VALUE RECEIVED, the undersigned, Spotlight Innovation Inc., a Nevada corporation (together with its successors and assigns, the “Issuer”), hereby certifies that K4 Enterprises, LLC (“Holder”) is entitled to subscribe for and purchase, during the Term (as hereinafter defined), up to the number of Warrant Shares set forth above (subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid and non-assessable Common Stock of the Issuer, par value $0.001 per share (the “Common Stock”), at an exercise price per share equal to the Warrant Price then in effect, subject, however, to the provisions and upon the terms and conditions hereinafter set forth. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in Section 6 hereof. This warrant is being issued in connection with the cancellation of that certain warrant to purchase an aggregate of 300,000 shares of common stock of the Issuer dated December 31, 2015 held by the Holder.
 
1. Term. The term of this Warrant shall commence on the Date of Issuance and shall expire at 5:00 p.m., Central Time, on the Expiration Date (such period being the “Term”).
 
2. Method of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange.
 
(a) Time of Exercise. The purchase rights represented by this Warrant may be exercised in whole or in part during the Term beginning on the date of issuance hereof.
 
(b) Method of Exercise. The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the exercise form attached hereto duly executed) at the principal office of the Issuer, and by the payment to the Issuer of an amount of consideration therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares of Warrant Stock with respect to which this Warrant is then being exercised, payable at such Holder’s election by certified or official bank check or by wire transfer to an account designated by the Issuer.
  
	 
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(c) Issuance of Stock Certificates. In the event of any exercise of this Warrant in accordance with and subject to the terms and conditions hereof, certificates for the shares of Warrant Stock so purchased shall be dated the date of such exercise and delivered to the Holder hereof within a reasonable time, not exceeding three (3) business days after such exercise (the “Delivery Date”). The Holder shall deliver this original Warrant to the Issuer, or an indemnification undertaking with respect to such Warrant in the case of its loss, theft, or destruction, at such time that this Warrant is fully exercised. With respect to partial exercises of this Warrant, the Issuer shall keep written records for the Holder of the number of shares of Warrant Stock exercised as of each date of exercise and shall deliver a replacement warrant on identical terms as this Warrant for the balance of Warrant Stock that has not been previously exercised by the Holder.
 
(d) Transferability of Warrant. Subject to Section 2(f) hereof, this Warrant may be transferred by a Holder, in whole or in part. If transferred pursuant to this paragraph, this Warrant may be transferred on the books of the Issuer by the Holder hereof in person or by duly authorized attorney, upon surrender of this Warrant at the principal office of the Issuer, properly endorsed (by the Holder executing an assignment in the form attached hereto) and upon payment of any necessary transfer tax or other governmental charge imposed upon such transfer. This Warrant is exchangeable at the principal office of the Issuer for Warrants to purchase the same aggregate number of shares of Warrant Stock, each new Warrant to represent the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange. All Warrants issued on transfers or exchanges shall be dated the Original Issue Date and shall be identical with this Warrant except as to the number of shares of Warrant Stock issuable pursuant thereto.
 
(e) Continuing Rights of Holder. The Issuer will, at the time of or at any time after each exercise of this Warrant, upon the request of the Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights to which such Holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant, provided that if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the Issuer to afford such rights to such Holder.
 
(f) Compliance with Securities Laws.
 
(i) The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Warrant Stock to be issued upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and any applicable state securities laws.
    	 
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(ii) Except as provided in paragraph (iii) below, this Warrant and all certificates representing shares of Warrant Stock issued upon exercise hereof shall be stamped or imprinted with legends in substantially the following form:
 
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
 
(iii) The Issuer agrees to reissue this Warrant or certificates representing any of the Warrant Stock, without the legend set forth above if at such time, prior to making any transfer of any such securities, the Holder shall give written notice to the Issuer describing the manner and terms of such transfer. Such proposed transfer will not be effected until: (a) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that the registration of such securities under the Securities Act is not required in connection with such proposed transfer, (ii) the Issuer has received other evidence reasonably satisfactory to the Issuer that such registration and qualification under the Securities Act and state securities laws are not required, or (iii) the Holder provides the Issuer with reasonable assurances that such security can be sold pursuant to Rule 144 under the Securities Act; and (b) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that registration or qualification under the securities or “blue sky” laws of any state is not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or “blue sky” laws has been effected or a valid exemption exists with respect thereto. In the case of any proposed transfer under this Section 2(f), the Issuer will use reasonable efforts to comply with any such applicable state securities or “blue sky” laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable to the Issuer. The restrictions on transfer contained in this Section 2(f) shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Warrant. 
 
(g) Accredited Investor Status. In no event may the Holder exercise this Warrant in whole or in part unless the Holder is an “accredited investor” as defined in Regulation D under the Securities Act, at the time of exercise. 
  
	 
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3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.
 
(a) Stock Fully Paid. The Issuer represents, warrants, covenants and agrees that all shares of Warrant Stock which may be issued upon the exercise of this Warrant or otherwise hereunder will, when issued in accordance with the terms of this Warrant, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by or through the Issuer. The Issuer further covenants and agrees that during the period within which this Warrant may be exercised, the Issuer will at all times have authorized and reserved for the purpose of the issuance upon exercise of this Warrant a number of authorized but unissued shares of Common Stock equal to at least one hundred percent (100%) of the number of shares of Common Stock issuable upon exercise of this Warrant without regard to any limitations on exercise.
 
(b) Reservation. If any shares of Common Stock required to be reserved for issuance upon exercise of this Warrant or as otherwise provided hereunder require registration or qualification with any Governmental Authority under any federal or state law before such shares may be so issued, the Issuer will in good faith use its best efforts as expeditiously as possible at its expense to cause such shares to be duly registered or qualified. 
 
(c) Loss, Theft, Destruction of Warrants. Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same number of shares of Common Stock.
 
(d) Payment of Taxes. The Issuer will pay any documentary stamp taxes attributable to the initial issuance of the Warrant Stock issuable upon exercise of this Warrant; provided, however, that the holder shall be required to pay any tax or taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificates representing Warrant Stock in a name other than that of the Holder in respect to which such shares are issued.
 
4. Adjustment of Warrant Price and Number of Shares Issuable Upon Exercise. The Warrant Price and the number of shares of Warrant Stock that may be purchased upon exercise of this Warrant shall be subject to adjustment from time to time as set forth in this Section 4. Upon each adjustment of the Warrant Price, the Holder of this Warrant shall thereafter be entitled to purchase, at the Warrant Price resulting from such adjustment, the number of shares of Common Stock obtained by multiplying the Warrant Price in effect immediately prior to such adjustment by the number of shares purchasable pursuant hereto immediately prior to such adjustment, and dividing the product thereof by the Warrant Price resulting from such adjustment.
  
	 
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(a) Adjustment Due to Dividends, Stock Splits, Etc. If, at any time on or after the Original Issuance Date, the number of outstanding shares of Common Stock is increased by a (i) dividend payable in any kind of shares of capital stock of the Corporation, (ii) stock split, (iii) combination, (iv) reclassification or (v) other similar event, the Warrant Price shall be proportionately reduced by multiplication by a fraction of which the numerator shall be the number of outstanding shares of Common Stock immediately before such event and of which the denominator shall be the number of outstanding shares of Common Stock immediately after such event, or if the number of outstanding shares of Common Stock is decreased by a reverse stock split, combination or reclassification of shares, or other similar event, the Warrant Price shall be proportionately increased by multiplication by a fraction of which the numerator shall be the number of outstanding shares of Common Stock immediately before such event and of which the denominator shall be the number of outstanding shares of Common Stock immediately after such event. In such event, the Issuer shall notify the Corporation's Transfer Agent of such change on or before the effective date thereof.
 
(b) Adjustment Due to Merger, Consolidation, Etc. If, at any time after the Original Issuance Date, there shall be (i) any reclassification or change of the outstanding shares of Common Stock, (ii) any consolidation or merger of the Corporation with any other entity (other than a merger in which the Corporation is the surviving or continuing entity and its capital stock is unchanged), (iii) any sale or transfer of all or substantially all of the assets of the Corporation, (iv) any share exchange or tender offer pursuant to which all of the outstanding shares of Common Stock are effectively converted into other securities or property; or (v) any distribution of the Corporation’s assets to holders of the Common Stock as a liquidation or partial liquidation dividend or by way of return of capital (each of (i) - (v) above being a “Corporate Change”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Corporate Change if it had been, immediately prior to such Corporate Change, the holder of the number of shares of Warrant Stock then issuable upon exercise in full of this Warrant, and in any such case, appropriate provisions (in form and substance reasonably satisfactory to the Holder) shall be made with respect to the rights and interests of the Holder to the end that the economic value of the Warrant Stock is in no way diminished by such Corporate Change and that the provisions hereof including, without limitation, in the case of any such consolidation, merger or sale in which the successor entity or purchasing entity is not the Issuer, an immediate adjustment of the Warrant Price so that the Warrant Price immediately after the Corporate Change reflects the same relative value as compared to the value of the surviving entity’s common stock that existed immediately prior to such Corporate Change and the value of the Common Stock immediately prior to such Corporate Change. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Corporate Change, then the Holder shall be given the same choice as to the consideration it receives upon any exercise of this Warrant following such Corporate Change.
 
(c) Other Adjustments. If the Issuer takes any action affecting the Common Stock after the date hereof that would be covered by this Section 4, but for the manner in which such action is taken or structured, and such action would in any way diminish the value of the Warrant or Warrant Stock, then the Warrant Price shall be adjusted in such manner as the Board shall in good faith determine to be equitable under the circumstances.
 
	 
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5. Fractional Shares. No fractional shares of Warrant Stock will be issued in connection with any exercise hereof, but in lieu of such fractional shares, the Issuer shall round the number of shares to be issued upon exercise up to the nearest whole number of shares.
 
6. Definitions. For the purposes of this Warrant, the following terms have the following meanings:
 
“Board” shall mean the Board of Directors of the Issuer.
 
“Capital Stock” means and includes (i) any and all shares, interests, participations or other equivalents of or interests in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether general or limited) in any Person which is a partnership, (iii) all membership interests or limited liability company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type.
 
“Common Stock” means the Common Stock, $0.001 par value per share, of the Issuer and any other Capital Stock into which such stock may hereafter be changed.
 
“Governmental Authority” means any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission, board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign.
 
“Holders” mean the Persons who shall from time to time own any Warrant. The term “Holder” means one of the Holders.
 
“Issuer” means Spotlight Innovation Inc., a Nevada corporation, and its successors. 
 
“Original Issue Date” means the original Date of Issuance set forth above.
 
“OTC Bulletin Board” means the over-the-counter electronic bulletin board.
 
“Person” means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization, joint venture, Governmental Authority or other entity of whatever nature.
 
“Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute then in effect.
 
“Term” has the meaning specified in Section 1 hereof.
 
“Warrants” means the Warrants issued pursuant to this Warrant, without limitation, and any other warrants of like tenor issued in substitution or exchange for any thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof or of any of such other Warrants. 
    	 
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“Warrant Price” initially means the amount set forth at the top of this Warrant, as such price may be adjusted from time to time as shall result from the adjustments specified in this Warrant, including Section 4 hereto.
 
“Warrant Share Number” means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased upon exercise of this Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the terms hereof.
 
“Warrant Stock” means Common Stock issuable upon exercise of any Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.
 
7. Amendment and Waiver. Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), by a written instrument or written instruments executed by the Issuer and the Holder; provided, however, that no such amendment or waiver shall reduce the Warrant Share Number, increase the Warrant Price, shorten the period during which this Warrant may be exercised or modify any provision of this Section 7 without the consent of the Holder of this Warrant. No consideration shall be offered or paid to any person to amend or consent to a waiver or modification of any provision of this Warrant unless the same consideration is also offered to all holders of the Warrants.
 
8. Governing Law; Jurisdiction. This Warrant shall be governed by and construed in accordance with the internal laws of the State of Iowa, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Warrant shall not be interpreted or construed with any presumption against the party causing this Warrant to be drafted. The Issuer and the Holder agree that venue for any dispute arising under this Warrant will lie exclusively in the state or federal courts located in Polk County, Iowa, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that Iowa is not the proper venue. The Issuer and the Holder irrevocably consent to personal jurisdiction in the state and federal courts of the State of Iowa. The Issuer and the Holder consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section shall affect or limit any right to serve process in any other manner permitted by law. The Issuer agrees to pay all costs and expenses of enforcement of this Warrant, including, without limitation, reasonable attorneys’ fees and expenses. The parties hereby waive all rights to a trial by jury.
 
9. Notices. TC "Section 7.4 Notices."\f C \l "2" All notices, requests, consents or other communications required or permitted hereunder to the Issuer shall be in writing and shall be hand delivered or mailed first class postage prepaid, registered or certified mail, to the following address:
 
Spotlight Innovation Inc.
c/o its CEO and CFO
6750 Westown Parkway, Suite 200-226
West Des Moines, Iowa 50266 
  
	 
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Such notices and other communications shall, for all purposes of this Agreement, be treated as being effective upon being delivered personally or, if sent by mail, five days after the same has been deposited in a regularly maintained receptacle for the deposit of United States mail, addressed as set forth above, and postage prepaid. Any party hereto may from time to time change its address for notices by giving written notice of such changed address to the other party hereto.
 
10. Remedies. The Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.
 
11. Successors and Assigns. This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock.
 
12. Modification and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein, any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein.
 
13. Headings. The headings of the Sections of this Warrant are for convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.
 
IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day and year first above written.
 
 
	 	SPOTLIGHT INNOVATION INC.
	
	 	 	 	 
		By: 		
	 
	Name: 
	Cristopher Grunewald
	 
	 	Title: 	President and Chief Executive Officer
	 

 
	 
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APPENDIX A
 
WARRANT EXERCISE FORM
 
Spotlight Innovation Inc.
 
The undersigned _______________, pursuant to the provisions of the within Warrant, hereby elects to purchase __________________ shares of Common Stock, par value $0.001 per share, of Spotlight Innovation Inc. covered by the within Warrant at a Warrant Price of $___________ per Warrant Share. The shares of Warrant Stock issuable upon exercise of this Warrant shall be delivered to the address set forth below.
 
The undersigned is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.
 
The Holder shall pay the sum of $______________ by certified or official bank check (or via wire transfer) to Spotlight Innovation Inc. in accordance with the terms of the Warrant. 
 
	Dated:
	 
	 

	 
	 
	 

	Name:
	 
	 

	 
	 
	 

	Signature
	 
	 

	 
	 
	 

	Address
	 
	 

	 
	 
	 

	 
	 
	 

 
	 
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EXHIBIT D
  
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
 
WARRANT TO PURCHASE
SHARES OF COMMON STOCK
OF
SPOTLIGHT INNOVATION INC.
Expires: December 31, 2019
 
	Warrant Share Number: 200,000
	Warrant Price: $1.25

	 
	 

	Date of Issuance: October 18, 2016
	Expiration Date: December 31, 2019

 
FOR VALUE RECEIVED, the undersigned, Spotlight Innovation Inc., a Nevada corporation (together with its successors and assigns, the “Issuer”), hereby certifies that K4 Enterprises, LLC (“Holder”) is entitled to subscribe for and purchase, during the Term (as hereinafter defined), up to the number of Warrant Shares set forth above (subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid and non-assessable Common Stock of the Issuer, par value $0.001 per share (the “Common Stock”), at an exercise price per share equal to the Warrant Price then in effect, subject, however, to the provisions and upon the terms and conditions hereinafter set forth. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in Section 6 hereof. This warrant is being issued in connection with the cancellation of that certain warrant to purchase an aggregate of 200,000 shares of common stock of the Issuer dated December 31, 2015 held by the Holder.
 
1. Term. The term of this Warrant shall commence on the Date of Issuance and shall expire at 5:00 p.m., Central Time, on the Expiration Date (such period being the “Term”).
 
2. Method of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange.
 
(a) Time of Exercise. The purchase rights represented by this Warrant may be exercised in whole or in part during the Term beginning on the date of issuance hereof.
 
(b) Method of Exercise. The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the exercise form attached hereto duly executed) at the principal office of the Issuer, and by the payment to the Issuer of an amount of consideration therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares of Warrant Stock with respect to which this Warrant is then being exercised, payable at such Holder’s election by certified or official bank check or by wire transfer to an account designated by the Issuer.
  
	 
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(c) Issuance of Stock Certificates. In the event of any exercise of this Warrant in accordance with and subject to the terms and conditions hereof, certificates for the shares of Warrant Stock so purchased shall be dated the date of such exercise and delivered to the Holder hereof within a reasonable time, not exceeding three (3) business days after such exercise (the “Delivery Date”). The Holder shall deliver this original Warrant to the Issuer, or an indemnification undertaking with respect to such Warrant in the case of its loss, theft, or destruction, at such time that this Warrant is fully exercised. With respect to partial exercises of this Warrant, the Issuer shall keep written records for the Holder of the number of shares of Warrant Stock exercised as of each date of exercise and shall deliver a replacement warrant on identical terms as this Warrant for the balance of Warrant Stock that has not been previously exercised by the Holder.
 
(d) Transferability of Warrant. Subject to Section 2(f) hereof, this Warrant may be transferred by a Holder, in whole or in part. If transferred pursuant to this paragraph, this Warrant may be transferred on the books of the Issuer by the Holder hereof in person or by duly authorized attorney, upon surrender of this Warrant at the principal office of the Issuer, properly endorsed (by the Holder executing an assignment in the form attached hereto) and upon payment of any necessary transfer tax or other governmental charge imposed upon such transfer. This Warrant is exchangeable at the principal office of the Issuer for Warrants to purchase the same aggregate number of shares of Warrant Stock, each new Warrant to represent the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange. All Warrants issued on transfers or exchanges shall be dated the Original Issue Date and shall be identical with this Warrant except as to the number of shares of Warrant Stock issuable pursuant thereto.
 
(e) Continuing Rights of Holder. The Issuer will, at the time of or at any time after each exercise of this Warrant, upon the request of the Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights to which such Holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant, provided that if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the Issuer to afford such rights to such Holder.
 
(f) Compliance with Securities Laws.
 
(i) The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Warrant Stock to be issued upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and any applicable state securities laws.
  
	 
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(ii) Except as provided in paragraph (iii) below, this Warrant and all certificates representing shares of Warrant Stock issued upon exercise hereof shall be stamped or imprinted with legends in substantially the following form:
 
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
 
(iii) The Issuer agrees to reissue this Warrant or certificates representing any of the Warrant Stock, without the legend set forth above if at such time, prior to making any transfer of any such securities, the Holder shall give written notice to the Issuer describing the manner and terms of such transfer. Such proposed transfer will not be effected until: (a) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that the registration of such securities under the Securities Act is not required in connection with such proposed transfer, (ii) the Issuer has received other evidence reasonably satisfactory to the Issuer that such registration and qualification under the Securities Act and state securities laws are not required, or (iii) the Holder provides the Issuer with reasonable assurances that such security can be sold pursuant to Rule 144 under the Securities Act; and (b) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that registration or qualification under the securities or “blue sky” laws of any state is not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or “blue sky” laws has been effected or a valid exemption exists with respect thereto. In the case of any proposed transfer under this Section 2(f), the Issuer will use reasonable efforts to comply with any such applicable state securities or “blue sky” laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable to the Issuer. The restrictions on transfer contained in this Section 2(f) shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Warrant. 
 
(g) Accredited Investor Status. In no event may the Holder exercise this Warrant in whole or in part unless the Holder is an “accredited investor” as defined in Regulation D under the Securities Act, at the time of exercise. 
  
	 
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3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.
 
(a) Stock Fully Paid. The Issuer represents, warrants, covenants and agrees that all shares of Warrant Stock which may be issued upon the exercise of this Warrant or otherwise hereunder will, when issued in accordance with the terms of this Warrant, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by or through the Issuer. The Issuer further covenants and agrees that during the period within which this Warrant may be exercised, the Issuer will at all times have authorized and reserved for the purpose of the issuance upon exercise of this Warrant a number of authorized but unissued shares of Common Stock equal to at least one hundred percent (100%) of the number of shares of Common Stock issuable upon exercise of this Warrant without regard to any limitations on exercise.
 
(b) Reservation. If any shares of Common Stock required to be reserved for issuance upon exercise of this Warrant or as otherwise provided hereunder require registration or qualification with any Governmental Authority under any federal or state law before such shares may be so issued, the Issuer will in good faith use its best efforts as expeditiously as possible at its expense to cause such shares to be duly registered or qualified. 
 
(c) Loss, Theft, Destruction of Warrants. Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same number of shares of Common Stock.
 
(d) Payment of Taxes. The Issuer will pay any documentary stamp taxes attributable to the initial issuance of the Warrant Stock issuable upon exercise of this Warrant; provided, however, that the holder shall be required to pay any tax or taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificates representing Warrant Stock in a name other than that of the Holder in respect to which such shares are issued.
 
4. Adjustment of Warrant Price and Number of Shares Issuable Upon Exercise. The Warrant Price and the number of shares of Warrant Stock that may be purchased upon exercise of this Warrant shall be subject to adjustment from time to time as set forth in this Section 4. Upon each adjustment of the Warrant Price, the Holder of this Warrant shall thereafter be entitled to purchase, at the Warrant Price resulting from such adjustment, the number of shares of Common Stock obtained by multiplying the Warrant Price in effect immediately prior to such adjustment by the number of shares purchasable pursuant hereto immediately prior to such adjustment, and dividing the product thereof by the Warrant Price resulting from such adjustment.
  
	 
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(a) Adjustment Due to Dividends, Stock Splits, Etc. If, at any time on or after the Original Issuance Date, the number of outstanding shares of Common Stock is increased by a (i) dividend payable in any kind of shares of capital stock of the Corporation, (ii) stock split, (iii) combination, (iv) reclassification or (v) other similar event, the Warrant Price shall be proportionately reduced by multiplication by a fraction of which the numerator shall be the number of outstanding shares of Common Stock immediately before such event and of which the denominator shall be the number of outstanding shares of Common Stock immediately after such event, or if the number of outstanding shares of Common Stock is decreased by a reverse stock split, combination or reclassification of shares, or other similar event, the Warrant Price shall be proportionately increased by multiplication by a fraction of which the numerator shall be the number of outstanding shares of Common Stock immediately before such event and of which the denominator shall be the number of outstanding shares of Common Stock immediately after such event. In such event, the Issuer shall notify the Corporation's Transfer Agent of such change on or before the effective date thereof.
 
(b) Adjustment Due to Merger, Consolidation, Etc. If, at any time after the Original Issuance Date, there shall be (i) any reclassification or change of the outstanding shares of Common Stock, (ii) any consolidation or merger of the Corporation with any other entity (other than a merger in which the Corporation is the surviving or continuing entity and its capital stock is unchanged), (iii) any sale or transfer of all or substantially all of the assets of the Corporation, (iv) any share exchange or tender offer pursuant to which all of the outstanding shares of Common Stock are effectively converted into other securities or property; or (v) any distribution of the Corporation’s assets to holders of the Common Stock as a liquidation or partial liquidation dividend or by way of return of capital (each of (i) - (v) above being a “Corporate Change”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Corporate Change if it had been, immediately prior to such Corporate Change, the holder of the number of shares of Warrant Stock then issuable upon exercise in full of this Warrant, and in any such case, appropriate provisions (in form and substance reasonably satisfactory to the Holder) shall be made with respect to the rights and interests of the Holder to the end that the economic value of the Warrant Stock is in no way diminished by such Corporate Change and that the provisions hereof including, without limitation, in the case of any such consolidation, merger or sale in which the successor entity or purchasing entity is not the Issuer, an immediate adjustment of the Warrant Price so that the Warrant Price immediately after the Corporate Change reflects the same relative value as compared to the value of the surviving entity’s common stock that existed immediately prior to such Corporate Change and the value of the Common Stock immediately prior to such Corporate Change. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Corporate Change, then the Holder shall be given the same choice as to the consideration it receives upon any exercise of this Warrant following such Corporate Change.
 
(c) Other Adjustments. If the Issuer takes any action affecting the Common Stock after the date hereof that would be covered by this Section 4, but for the manner in which such action is taken or structured, and such action would in any way diminish the value of the Warrant or Warrant Stock, then the Warrant Price shall be adjusted in such manner as the Board shall in good faith determine to be equitable under the circumstances.
  
	 
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5. Fractional Shares. No fractional shares of Warrant Stock will be issued in connection with any exercise hereof, but in lieu of such fractional shares, the Issuer shall round the number of shares to be issued upon exercise up to the nearest whole number of shares.
 
6. Definitions. For the purposes of this Warrant, the following terms have the following meanings:
 
“Board” shall mean the Board of Directors of the Issuer.
 
“Capital Stock” means and includes (i) any and all shares, interests, participations or other equivalents of or interests in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether general or limited) in any Person which is a partnership, (iii) all membership interests or limited liability company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type.
 
“Common Stock” means the Common Stock, $0.001 par value per share, of the Issuer and any other Capital Stock into which such stock may hereafter be changed.
 
“Governmental Authority” means any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission, board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign.
 
“Holders” mean the Persons who shall from time to time own any Warrant. The term “Holder” means one of the Holders.
 
“Issuer” means Spotlight Innovation Inc., a Nevada corporation, and its successors. 
 
“Original Issue Date” means the original Date of Issuance set forth above.
 
“OTC Bulletin Board” means the over-the-counter electronic bulletin board.
 
“Person” means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization, joint venture, Governmental Authority or other entity of whatever nature.
 
“Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute then in effect.
 
“Term” has the meaning specified in Section 1 hereof.
 
“Warrants” means the Warrants issued pursuant to this Warrant, without limitation, and any other warrants of like tenor issued in substitution or exchange for any thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof or of any of such other Warrants. 
  
	 
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“Warrant Price” initially means the amount set forth at the top of this Warrant, as such price may be adjusted from time to time as shall result from the adjustments specified in this Warrant, including Section 4 hereto.
 
“Warrant Share Number” means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased upon exercise of this Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the terms hereof.
 
“Warrant Stock” means Common Stock issuable upon exercise of any Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.
 
7. Amendment and Waiver. Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), by a written instrument or written instruments executed by the Issuer and the Holder; provided, however, that no such amendment or waiver shall reduce the Warrant Share Number, increase the Warrant Price, shorten the period during which this Warrant may be exercised or modify any provision of this Section 7 without the consent of the Holder of this Warrant. No consideration shall be offered or paid to any person to amend or consent to a waiver or modification of any provision of this Warrant unless the same consideration is also offered to all holders of the Warrants.
 
8. Governing Law; Jurisdiction. This Warrant shall be governed by and construed in accordance with the internal laws of the State of Iowa, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Warrant shall not be interpreted or construed with any presumption against the party causing this Warrant to be drafted. The Issuer and the Holder agree that venue for any dispute arising under this Warrant will lie exclusively in the state or federal courts located in Polk County, Iowa, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that Iowa is not the proper venue. The Issuer and the Holder irrevocably consent to personal jurisdiction in the state and federal courts of the State of Iowa. The Issuer and the Holder consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section shall affect or limit any right to serve process in any other manner permitted by law. The Issuer agrees to pay all costs and expenses of enforcement of this Warrant, including, without limitation, reasonable attorneys’ fees and expenses. The parties hereby waive all rights to a trial by jury.
 
9. Notices. TC "Section 7.4 Notices."\f C \l "2" All notices, requests, consents or other communications required or permitted hereunder to the Issuer shall be in writing and shall be hand delivered or mailed first class postage prepaid, registered or certified mail, to the following address:
 
Spotlight Innovation Inc.
c/o its CEO and CFO
6750 Westown Parkway, Suite 200-226
West Des Moines, Iowa 50266 
  
	 
	35

	

	 

 
Such notices and other communications shall, for all purposes of this Agreement, be treated as being effective upon being delivered personally or, if sent by mail, five days after the same has been deposited in a regularly maintained receptacle for the deposit of United States mail, addressed as set forth above, and postage prepaid. Any party hereto may from time to time change its address for notices by giving written notice of such changed address to the other party hereto.
 
10. Remedies. The Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.
 
11. Successors and Assigns. This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock.
 
12. Modification and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein, any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein.
 
13. Headings. The headings of the Sections of this Warrant are for convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.
 
IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day and year first above written.
 
 
	 	SPOTLIGHT INNOVATION INC.
	
	 	 	 	 
		By: 
		
	 
	Name: 
	Cristopher Grunewald
	 
	 	Title: 	President and Chief Executive Officer
	 

 
	 
	36

	

	 

 
APPENDIX A
 
WARRANT EXERCISE FORM
 
Spotlight Innovation Inc.
 
The undersigned _______________, pursuant to the provisions of the within Warrant, hereby elects to purchase __________________ shares of Common Stock, par value $0.001 per share, of Spotlight Innovation Inc. covered by the within Warrant at a Warrant Price of $___________ per Warrant Share. The shares of Warrant Stock issuable upon exercise of this Warrant shall be delivered to the address set forth below.
 
The undersigned is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.
 
The Holder shall pay the sum of $______________ by certified or official bank check (or via wire transfer) to Spotlight Innovation Inc. in accordance with the terms of the Warrant. 
 
	Dated:
		 

	 
		 

	Name:
		 

	 
		 

	Signature
		 

	 
		 

	Address
		 

	 
		 

	 
		 

 
	 
	37

	

	 

 
EXHIBIT E
 
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
 
WARRANT TO PURCHASE
SHARES OF COMMON STOCK
OF
SPOTLIGHT INNOVATION INC.
Expires: December 31, 2019
 
	Warrant Share Number: 500,000
	Warrant Price: $1.00

	 
	 

	Date of Issuance: October 18, 2016
	Expiration Date: December 31, 2019

 
FOR VALUE RECEIVED, the undersigned, Spotlight Innovation Inc., a Nevada corporation (together with its successors and assigns, the “Issuer”), hereby certifies that K4 Enterprises, LLC (“Holder”) is entitled to subscribe for and purchase, during the Term (as hereinafter defined), up to the number of Warrant Shares set forth above (subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid and non-assessable Common Stock of the Issuer, par value $0.001 per share (the “Common Stock”), at an exercise price per share equal to the Warrant Price then in effect, subject, however, to the provisions and upon the terms and conditions hereinafter set forth. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in Section 6 hereof. This Warrant is being issued in connection with that certain Forbearance and Refinancing Agreement between the Issuer and Holder dated as of the date of issuance hereunder.
 
1. Term. The term of this Warrant shall commence on the Date of Issuance and shall expire at 5:00 p.m., Central Time, on the Expiration Date (such period being the “Term”).
 
2. Method of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange.
 
(a) Time of Exercise. The purchase rights represented by this Warrant may be exercised in whole or in part during the Term beginning on the date of issuance hereof.
 
(b) Method of Exercise. The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the exercise form attached hereto duly executed) at the principal office of the Issuer, and by the payment to the Issuer of an amount of consideration therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares of Warrant Stock with respect to which this Warrant is then being exercised, payable at such Holder’s election by certified or official bank check or by wire transfer to an account designated by the Issuer.
  
	 
	38

	

	 

 
(c) Issuance of Stock Certificates. In the event of any exercise of this Warrant in accordance with and subject to the terms and conditions hereof, certificates for the shares of Warrant Stock so purchased shall be dated the date of such exercise and delivered to the Holder hereof within a reasonable time, not exceeding three (3) business days after such exercise (the “Delivery Date”). The Holder shall deliver this original Warrant to the Issuer, or an indemnification undertaking with respect to such Warrant in the case of its loss, theft, or destruction, at such time that this Warrant is fully exercised. With respect to partial exercises of this Warrant, the Issuer shall keep written records for the Holder of the number of shares of Warrant Stock exercised as of each date of exercise and shall deliver a replacement warrant on identical terms as this Warrant for the balance of Warrant Stock that has not been previously exercised by the Holder.
 
(d) Transferability of Warrant. Subject to Section 2(f) hereof, this Warrant may be transferred by a Holder, in whole or in part. If transferred pursuant to this paragraph, this Warrant may be transferred on the books of the Issuer by the Holder hereof in person or by duly authorized attorney, upon surrender of this Warrant at the principal office of the Issuer, properly endorsed (by the Holder executing an assignment in the form attached hereto) and upon payment of any necessary transfer tax or other governmental charge imposed upon such transfer. This Warrant is exchangeable at the principal office of the Issuer for Warrants to purchase the same aggregate number of shares of Warrant Stock, each new Warrant to represent the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange. All Warrants issued on transfers or exchanges shall be dated the Original Issue Date and shall be identical with this Warrant except as to the number of shares of Warrant Stock issuable pursuant thereto.
 
(e) Continuing Rights of Holder. The Issuer will, at the time of or at any time after each exercise of this Warrant, upon the request of the Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights to which such Holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant, provided that if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the Issuer to afford such rights to such Holder.
 
(f) Compliance with Securities Laws.
 
(i) The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Warrant Stock to be issued upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and any applicable state securities laws.
    	 
	39

	

	 

 
(ii) Except as provided in paragraph (iii) below, this Warrant and all certificates representing shares of Warrant Stock issued upon exercise hereof shall be stamped or imprinted with legends in substantially the following form:
 
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
 
(iii) The Issuer agrees to reissue this Warrant or certificates representing any of the Warrant Stock, without the legend set forth above if at such time, prior to making any transfer of any such securities, the Holder shall give written notice to the Issuer describing the manner and terms of such transfer. Such proposed transfer will not be effected until: (a) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that the registration of such securities under the Securities Act is not required in connection with such proposed transfer, (ii) the Issuer has received other evidence reasonably satisfactory to the Issuer that such registration and qualification under the Securities Act and state securities laws are not required, or (iii) the Holder provides the Issuer with reasonable assurances that such security can be sold pursuant to Rule 144 under the Securities Act; and (b) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that registration or qualification under the securities or “blue sky” laws of any state is not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or “blue sky” laws has been effected or a valid exemption exists with respect thereto. In the case of any proposed transfer under this Section 2(f), the Issuer will use reasonable efforts to comply with any such applicable state securities or “blue sky” laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable to the Issuer. The restrictions on transfer contained in this Section 2(f) shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Warrant. 
 
(g) Accredited Investor Status. In no event may the Holder exercise this Warrant in whole or in part unless the Holder is an “accredited investor” as defined in Regulation D under the Securities Act, at the time of exercise. 
  
	 
	40

	

	 

 
3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.
 
(a) Stock Fully Paid. The Issuer represents, warrants, covenants and agrees that all shares of Warrant Stock which may be issued upon the exercise of this Warrant or otherwise hereunder will, when issued in accordance with the terms of this Warrant, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by or through the Issuer. The Issuer further covenants and agrees that during the period within which this Warrant may be exercised, the Issuer will at all times have authorized and reserved for the purpose of the issuance upon exercise of this Warrant a number of authorized but unissued shares of Common Stock equal to at least one hundred percent (100%) of the number of shares of Common Stock issuable upon exercise of this Warrant without regard to any limitations on exercise.
 
(b) Reservation. If any shares of Common Stock required to be reserved for issuance upon exercise of this Warrant or as otherwise provided hereunder require registration or qualification with any Governmental Authority under any federal or state law before such shares may be so issued, the Issuer will in good faith use its best efforts as expeditiously as possible at its expense to cause such shares to be duly registered or qualified. 
 
(c) Loss, Theft, Destruction of Warrants. Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same number of shares of Common Stock.
 
(d) Payment of Taxes. The Issuer will pay any documentary stamp taxes attributable to the initial issuance of the Warrant Stock issuable upon exercise of this Warrant; provided, however, that the holder shall be required to pay any tax or taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificates representing Warrant Stock in a name other than that of the Holder in respect to which such shares are issued.
 
4. Adjustment of Warrant Price and Number of Shares Issuable Upon Exercise. The Warrant Price and the number of shares of Warrant Stock that may be purchased upon exercise of this Warrant shall be subject to adjustment from time to time as set forth in this Section 4. Upon each adjustment of the Warrant Price, the Holder of this Warrant shall thereafter be entitled to purchase, at the Warrant Price resulting from such adjustment, the number of shares of Common Stock obtained by multiplying the Warrant Price in effect immediately prior to such adjustment by the number of shares purchasable pursuant hereto immediately prior to such adjustment, and dividing the product thereof by the Warrant Price resulting from such adjustment.
 
	 
	41

	

	 

 
(a) Adjustment Due to Dividends, Stock Splits, Etc. If, at any time on or after the Original Issuance Date, the number of outstanding shares of Common Stock is increased by a (i) dividend payable in any kind of shares of capital stock of the Corporation, (ii) stock split, (iii) combination, (iv) reclassification or (v) other similar event, the Warrant Price shall be proportionately reduced by multiplication by a fraction of which the numerator shall be the number of outstanding shares of Common Stock immediately before such event and of which the denominator shall be the number of outstanding shares of Common Stock immediately after such event, or if the number of outstanding shares of Common Stock is decreased by a reverse stock split, combination or reclassification of shares, or other similar event, the Warrant Price shall be proportionately increased by multiplication by a fraction of which the numerator shall be the number of outstanding shares of Common Stock immediately before such event and of which the denominator shall be the number of outstanding shares of Common Stock immediately after such event. In such event, the Issuer shall notify the Corporation's Transfer Agent of such change on or before the effective date thereof.
 
(b) Adjustment Due to Merger, Consolidation, Etc. If, at any time after the Original Issuance Date, there shall be (i) any reclassification or change of the outstanding shares of Common Stock, (ii) any consolidation or merger of the Corporation with any other entity (other than a merger in which the Corporation is the surviving or continuing entity and its capital stock is unchanged), (iii) any sale or transfer of all or substantially all of the assets of the Corporation, (iv) any share exchange or tender offer pursuant to which all of the outstanding shares of Common Stock are effectively converted into other securities or property; or (v) any distribution of the Corporation’s assets to holders of the Common Stock as a liquidation or partial liquidation dividend or by way of return of capital (each of (i) - (v) above being a “Corporate Change”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Corporate Change if it had been, immediately prior to such Corporate Change, the holder of the number of shares of Warrant Stock then issuable upon exercise in full of this Warrant, and in any such case, appropriate provisions (in form and substance reasonably satisfactory to the Holder) shall be made with respect to the rights and interests of the Holder to the end that the economic value of the Warrant Stock is in no way diminished by such Corporate Change and that the provisions hereof including, without limitation, in the case of any such consolidation, merger or sale in which the successor entity or purchasing entity is not the Issuer, an immediate adjustment of the Warrant Price so that the Warrant Price immediately after the Corporate Change reflects the same relative value as compared to the value of the surviving entity’s common stock that existed immediately prior to such Corporate Change and the value of the Common Stock immediately prior to such Corporate Change. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Corporate Change, then the Holder shall be given the same choice as to the consideration it receives upon any exercise of this Warrant following such Corporate Change.
 
(c) Other Adjustments. If the Issuer takes any action affecting the Common Stock after the date hereof that would be covered by this Section 4, but for the manner in which such action is taken or structured, and such action would in any way diminish the value of the Warrant or Warrant Stock, then the Warrant Price shall be adjusted in such manner as the Board shall in good faith determine to be equitable under the circumstances.
  
	 
	42

	

	 

 
5. Fractional Shares. No fractional shares of Warrant Stock will be issued in connection with any exercise hereof, but in lieu of such fractional shares, the Issuer shall round the number of shares to be issued upon exercise up to the nearest whole number of shares.
 
6. Definitions. For the purposes of this Warrant, the following terms have the following meanings:
 
“Board” shall mean the Board of Directors of the Issuer.
 
“Capital Stock” means and includes (i) any and all shares, interests, participations or other equivalents of or interests in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether general or limited) in any Person which is a partnership, (iii) all membership interests or limited liability company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type.
 
“Common Stock” means the Common Stock, $0.001 par value per share, of the Issuer and any other Capital Stock into which such stock may hereafter be changed.
 
“Governmental Authority” means any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission, board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign.
 
“Holders” mean the Persons who shall from time to time own any Warrant. The term “Holder” means one of the Holders.
 
“Issuer” means Spotlight Innovation Inc., a Nevada corporation, and its successors. 
 
“Original Issue Date” means the original Date of Issuance set forth above.
 
“OTC Bulletin Board” means the over-the-counter electronic bulletin board.
 
“Person” means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization, joint venture, Governmental Authority or other entity of whatever nature.
 
“Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute then in effect.
 
“Term” has the meaning specified in Section 1 hereof.
 
“Warrants” means the Warrants issued pursuant to this Warrant, without limitation, and any other warrants of like tenor issued in substitution or exchange for any thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof or of any of such other Warrants. 
  
	 
	43

	

	 

 
“Warrant Price” initially means the amount set forth at the top of this Warrant, as such price may be adjusted from time to time as shall result from the adjustments specified in this Warrant, including Section 4 hereto.
 
“Warrant Share Number” means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased upon exercise of this Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the terms hereof.
 
“Warrant Stock” means Common Stock issuable upon exercise of any Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.
 
7. Amendment and Waiver. Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), by a written instrument or written instruments executed by the Issuer and the Holder; provided, however, that no such amendment or waiver shall reduce the Warrant Share Number, increase the Warrant Price, shorten the period during which this Warrant may be exercised or modify any provision of this Section 7 without the consent of the Holder of this Warrant. No consideration shall be offered or paid to any person to amend or consent to a waiver or modification of any provision of this Warrant unless the same consideration is also offered to all holders of the Warrants.
 
8. Governing Law; Jurisdiction. This Warrant shall be governed by and construed in accordance with the internal laws of the State of Iowa, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Warrant shall not be interpreted or construed with any presumption against the party causing this Warrant to be drafted. The Issuer and the Holder agree that venue for any dispute arising under this Warrant will lie exclusively in the state or federal courts located in Polk County, Iowa, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that Iowa is not the proper venue. The Issuer and the Holder irrevocably consent to personal jurisdiction in the state and federal courts of the State of Iowa. The Issuer and the Holder consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section shall affect or limit any right to serve process in any other manner permitted by law. The Issuer agrees to pay all costs and expenses of enforcement of this Warrant, including, without limitation, reasonable attorneys’ fees and expenses. The parties hereby waive all rights to a trial by jury.
 
9. Notices. TC "Section 7.4 Notices."\f C \l "2" All notices, requests, consents or other communications required or permitted hereunder to the Issuer shall be in writing and shall be hand delivered or mailed first class postage prepaid, registered or certified mail, to the following address:
 
Spotlight Innovation Inc.
c/o its CEO and CFO
6750 Westown Parkway, Suite 200-226
West Des Moines, Iowa 50266 
  
	 
	44

	

	 

 
Such notices and other communications shall, for all purposes of this Agreement, be treated as being effective upon being delivered personally or, if sent by mail, five days after the same has been deposited in a regularly maintained receptacle for the deposit of United States mail, addressed as set forth above, and postage prepaid. Any party hereto may from time to time change its address for notices by giving written notice of such changed address to the other party hereto.
 
10. Remedies. The Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.
 
11. Successors and Assigns. This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock.
 
12. Modification and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein, any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein.
 
13. Headings. The headings of the Sections of this Warrant are for convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.
 
IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day and year first above written.
 
 
	 	SPOTLIGHT INNOVATION INC.
	
	 	 	 	 
		By: 		
	 
	Name: 
	Cristopher Grunewald
	 
	 	Title: 	President and Chief Executive Officer
	 

    	 
	45

	

	 

 
APPENDIX A
 
WARRANT EXERCISE FORM
 
Spotlight Innovation Inc.
 
The undersigned _______________, pursuant to the provisions of the within Warrant, hereby elects to purchase __________________ shares of Common Stock, par value $0.001 per share, of Spotlight Innovation Inc. covered by the within Warrant at a Warrant Price of $___________ per Warrant Share. The shares of Warrant Stock issuable upon exercise of this Warrant shall be delivered to the address set forth below.
 
The undersigned is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.
 
The Holder shall pay the sum of $______________ by certified or official bank check (or via wire transfer) to Spotlight Innovation Inc. in accordance with the terms of the Warrant. 
 
	Dated:
	 
	 

	 
	 
	 

	Name:
	 
	 

	 
	 
	 

	Signature
	 
	 

	 
	 
	 

	Address
	 
	 

	 
	 
	 

	 
	 
	 

 
 
	46

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