Document:

Exhibit 10.2

  

May 30, 2019

 

PERSONAL AND CONFIDENTIAL

 

Medalist Diversified REIT, Inc.

11 S. 12th Street, Suite 401

Richmond, VA 23219

Attention: Thomas E. Messier, Chief Executive
Officer

 

Dear Mr. Messier:

 

Introduction.
Subject to the terms and conditions herein (this “Agreement”), Medalist Diversified REIT, Inc. (the “Company”),
hereby agrees to sell 270,833 shares of its common stock (the “Securities”) directly to Virginia Birth-Related
Neurological Injury Compensation Program (the “Investor”) through Aegis Capital Corp., as placement agent (the
 “Placement Agent). The documents executed and delivered by the Company and the Investor in connection with the Offering
(as defined below), including, without limitation, a securities purchase agreement (the “Purchase Agreement”),
shall be collectively referred to herein as the “Transaction Documents.” The purchase price to the Investor
for the Securities shall be $4.80 per share of the Company’s common stock. The Placement Agent may retain other brokers or
dealers to act as sub-agents or selected-dealers on its behalf in connection with the Offering. The sale of the Securities are
being offered pursuant to a Confidential Private Placement Memorandum, dated May 30, 2019, together with the exhibits and attachments
thereto or available thereunder and any amendments or supplements thereto prepared and furnished by the Company (the “Memorandum”).

 

The Company hereby
confirms its agreement with the Placement Agent as follows:

 

Section 1.            
Agreement to Act as Placement Agent.

 

(a)            On
the basis of the representations, warranties and agreements of the Company herein contained, and subject to all the terms and
conditions of this Agreement, the Placement Agent shall be the exclusive placement agent in connection with the offering
and sale by the Company of the Securities pursuant to the Memorandum, with the terms of such offering (the
 “Offering”) to be subject to market conditions and negotiations between the Company, the Placement Agent
and the prospective Investors. The Placement Agent will act on a reasonable best efforts basis and the Company agrees and
acknowledges that there is no guarantee of the successful placement of the Securities, or any portion thereof, in the
prospective Offering. Under no circumstances will the Placement Agent or any of its “Affiliates” (as defined
below) be obligated to underwrite or purchase any of the Securities for its own account or otherwise provide any financing.
The Placement Agent shall act solely as the Company’s agent and not as principal. The Placement Agent shall have no
authority to bind the Company with respect to any prospective offer to purchase Securities and the Company shall have the
sole right to accept offers to purchase Securities and may reject any such offer, in whole or in part. Subject to the terms
and conditions hereof, payment of the purchase price for, and delivery of, the Securities shall be made at one closing (the
 “Closing” and the date on which the Closing occurs, a “Closing Date”). As compensation
for services rendered, on the Closing Date, the Company shall pay to the Placement Agent the fees and expenses set forth
below:

 

(i)                
A cash fee equal to 3% of the gross proceeds received by the Company from the sale of the Securities at the Closing and
a non-accountable expense allowance equal to 1% of the of the gross proceeds received by the Company from the sale of the Securities
at the Closing.

 

    	 

     

    

  

(ii)              
The Company also agrees to reimburse Placement Agent’s legal expenses up to a maximum of $25,000, payable at the Closing.

 

(b)          The term of the Placement Agent's exclusive engagement will begin on the date hereof and end on the earlier of the consummation
of the Offering or 30 days after the receipt by either party hereto of written notice of termination; provided that no such notice
may be given by the Company for a period of 180 days after the date hereof, except in the case of termination by the Company for
cause. Notwithstanding anything to the contrary contained herein, the provisions concerning confidentiality, indemnification and
contribution contained herein and the Company’s obligations contained in the indemnification provisions will survive any
expiration or termination of this Agreement, and the Company’s obligation to pay fees actually earned and payable and to
reimburse expenses actually incurred and reimbursable pursuant to Section 1 hereof, will survive any expiration or termination
of this Agreement. Nothing in this Agreement shall be construed to limit the ability of the Placement Agent or its Affiliates to
pursue, investigate, analyze, invest in, or engage in investment banking, financial advisory or any other business relationship
with Persons (as defined below) other than the Company. As used herein (i) “Persons” means an individual or corporation,
partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind and (ii) “Affiliate” means any Person
that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a
Person as such terms are used in and construed under Rule 405 under the Securities Act of 1933, as amended (the “Securities
Act”).

 

(c)            Until the Closing is held, all subscription funds received shall be held by a third party selected by the Placement Agent
and the Company (the “Escrow Agent”). Placement Agent shall not have any independent obligation to verify the
accuracy or completeness of any information contained in any subscription documents (the “Subscription Documents”)
or the authenticity, sufficiency or validity of any check delivered by any prospective Investor in payment for the Securities,
nor shall Placement Agent incur any liability with respect to any such verification or failure to verify, unless it had actual
knowledge that any information in the Subscription Documents was untrue. All subscription checks and funds shall be promptly and
directly delivered without offset or deduction to the Escrow Agent.

 

 

Section 2.             Representations, Warranties and Covenants of the Company. Each of the Company and Medalist Diversified Holdings L.P.,
a Delaware limited partnership of which the Company is the sole general partner (the “Operating Partnership”
and together with the Company, the “Transaction Entities”) hereby represents, warrants and covenants to the
Placement Agent as of the date hereof, and as of the Closing Date, as follows:

 

(a)               
Neither the Company nor any of its directors and officers has distributed and none of them will distribute, prior to each
Closing Date, any offering material in connection with the offering and sale of the Securities other than the Memorandum and any
other materials permitted by the Securities Act and approved by the Placement Agent and its counsel.

 

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(b)               
The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company
under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding
the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing
materials being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their
respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange
Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The financial statements of the Company, and Medalist Properties 8, LLC, including
all notes and schedules thereto, included in the Memorandum present fairly the financial position of such entities and, with respect
to the Company, its Subsidiaries, if any, at the dates indicated and the statement of operations, stockholders’ equity and
cash flows of, or such other permitted financial statements for, such entities and, with respect to the Company, its Subsidiaries,
if any, for the periods specified, and related schedules and notes thereto, and the unaudited financial information included in
the Memorandum, have been prepared in conformity with generally accepted accounting principles, consistently applied throughout
the periods involved. The statements of revenues and certain expenses included in the Memorandum, together with the related notes,
comply with Rule 8-06 of Regulation S-X and present fairly in all material respects the revenue and certain expenses of each of
Hanover Square North LLC and Medalist Fund 1-A, LLC (Franklin Square) for the periods specified; said financial statements have
been prepared in conformity with GAAP applied on a consistent basis throughout the periods involved and comply with the rules and
guidelines of the Securities and Exchange Commission (the “Commission”) with respect thereto. The pro forma
financial statements and the related notes thereto included in the Memorandum present fairly the information shown therein, have
been prepared in all material respects in accordance with the Commission’s rules and guidelines with respect to pro forma
financial statements and have been properly compiled on the bases described therein, and subject to such rules and guidelines,
the Company believes the assumptions used in the preparation thereof are reasonable and the adjustments used therein are appropriate
to give effect to the transactions and circumstances referred to therein. Except as included therein, no historical or pro forma
financial statements or supporting schedules are required to be included or incorporated by reference in the Memorandum under the
Securities Act or the Rules promulgated thereunder. All disclosures contained in the Memorandum regarding “non-GAAP financial
measures” (as such term is defined by the rules and regulations of the Commission) comply in all material respects with Regulation
G of the Exchange Act, and Item 10 of Regulation S-K of the Securities Act, to the extent applicable.

 

(c)               
Cherry Bekaert LLP (the “Auditor”) is the Company’s independent public accountants as required
by the Securities Act and the Rules.

 

(d)               
The Company has been duly organized and is validly existing as a corporation in good standing under the laws of the State
of Maryland and has corporate power and authority to own, lease, and operate its properties and to conduct its business as described
in the Memorandum and to enter into and perform its obligations under this Agreement the Operating Partnership Agreement (as defined
below) and the Management Agreement dated as of March 15, 2016 (the “Management Agreement”); by and between
the Company and Medalist Fund Manager, Inc., a Virginia corporation (the “Manager”); and the Company is duly
qualified as a foreign corporation to transact business and is in good standing in each other jurisdiction in which such qualification
is required, whether by reason of the ownership or leasing of property or the conduct of business, except for such jurisdictions
where the failure to so qualify individually or in the aggregate would not have a material adverse effect on the assets, properties,
condition, financial or otherwise, or in the results of operations, business affairs or business prospects (as described in the
Memorandum) of the Transaction Entities and their Subsidiaries considered as a whole (a “Material Adverse Effect”).

 

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(e)               
The Operating Partnership has been duly formed and is validly existing as a limited partnership in good standing under the
laws of the State of Delaware, is duly qualified to do business and is in good standing as a foreign limited partnership in each
jurisdiction in which its ownership or lease of property and other assets or the conduct of its business requires such qualification,
except where the failure to so qualify will not have a Material Adverse Effect, and has all power and authority necessary to own
or hold its properties and other assets, to conduct the business in which it is engaged and to enter into and perform its obligations
under this Agreement. The Company is the sole general partner of the Operating Partnership. The Agreement of Limited Partnership
of the Operating Partnership, in the form filed as an exhibit to the SEC Reports (the “Operating Partnership Agreement”)
is in full force and effect, and the aggregate percentage interests of the Company and the limited partners in the Operating Partnership
are as set forth in the Memorandum.

 

(f)                
Each “significant subsidiary” of the Company (as such term is defined in Rule 1-02 of Regulation S-X) (each
a “Subsidiary” and, collectively, the “Subsidiaries”) has been duly organized and is validly
existing in good standing under the laws of the jurisdiction of its incorporation or organization, has corporate or similar power
and authority to own, lease and operate its properties and to conduct its business as described in the Memorandum and is duly qualified
to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of
the ownership or leasing of property or the conduct of business, except where the failure to so qualify or to be in good standing
would not result in a Material Adverse Effect. Except as otherwise disclosed in the Memorandum, all of the issued and outstanding
capital stock or equity interests of each Subsidiary has been duly authorized and validly issued, is fully paid and non-assessable
and is owned by the Company, directly or through subsidiaries, free and clear of any material security interest, mortgage, pledge,
lien, encumbrance, claim or equity. None of the outstanding shares of capital stock or equity interests of any Subsidiary was issued
in violation of the preemptive or similar rights of any securityholder of such Subsidiary. The only Subsidiaries of the Company
are the subsidiaries set forth in the SEC Reports.

 

(g)               
The authorized, issued and outstanding shares of capital stock of the Company are as set forth in the Memorandum under the
captions “Capitalization” and “Description of Capital Stock.” The outstanding shares of capital stock of
the Company have been duly authorized and validly issued and are fully paid and non-assessable. None of the outstanding shares
of capital stock of the Company was issued in violation of the preemptive or other similar rights of any securityholder of the
Company. Except as disclosed in the Memorandum: (i) other than with respect to (x) the OP Units disclosed in the Memorandum, (y)
the warrants issued to Moloney Securities Co., Inc. disclosed in the Memorandum (the “Warrants”) and (z) any
shares reserved pursuant to the Company’s equity incentive plan as disclosed in the Memorandum, no shares of capital stock
of the Company are reserved for any purpose, (ii) except for the OP Units described in the Memorandum, there are no outstanding
securities convertible into or exchangeable for any shares of capital stock of the Company, and (iii) except for the Warrants,
there are no outstanding options, rights (preemptive or otherwise) or warrants to purchase or subscribe for shares of capital stock
or any other securities of the Company.

 

(h)               
The outstanding OP Units of the Operating Partnership have been duly authorized for issuance by the Operating Partnership
and the Company as its general partner and were validly issued. Except as disclosed in the Memorandum, no OP Units are reserved
for any purpose and there are no outstanding securities convertible into or exchangeable for any OP Units and no outstanding options,
rights (preemptive or otherwise) or warrants to purchase or subscribe for OP Units or other securities of the Operating Partnership.
The terms of the OP Units conform in all material respects to statements and descriptions related thereto contained in the Memorandum.

 

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(i)                
All necessary corporate action has been duly and validly taken by each of the Transaction Entities to authorize the execution,
delivery and performance of this Agreement and the issuance and sale of the Shares by the Company. This Agreement has been duly
authorized, executed and delivered by each of the Transaction Entities.

 

(j)                
(i) The Operating Partnership Agreement has been duly and validly authorized, executed and delivered by the Company and
the Operating Partnership (and, to the knowledge of the Transaction Entities, by each other party thereto) and is a valid and binding
agreement of the Company and the Operating Partnership (and, to the knowledge of the Transaction Entities, of each other party
thereto), enforceable against the Company and the Operating Partnership (and, to the knowledge of the Transaction Entities, against
each other party thereto) in accordance with its terms; (ii) each of the agreements filed as Exhibits to the SEC Reports relating
to the acquisition of: (1) 3940 East Franklin Boulevard, Gastonia, North Carolina 28056 (“Franklin Square”);
(2) 7802 National Service Road, Greensboro, North Carolina (“Greensboro Hampton Inn”); and (3) 7230 Bell Creek
Road, Mechanicsville, Virginia 23111 (“Hanover Square”, and collectively with Franklin Square and Greensboro
Hampton Inn, each an “Acquired Property” and collectively the “Acquired Properties”) has
been duly authorized, executed and delivered by the Company and the Operating Partnership, and is a valid and binding agreement,
enforceable against the Company and the Operating Partnership in accordance with its terms, and neither of the Transaction Entities
has any reason to believe that any of the aforementioned acquisition agreements have not been duly and validly authorized by all
other parties thereto; and (iii) the Management Agreement, has been duly authorized, executed and delivered by the Company (and,
to the knowledge of Transaction Entities, by the Manager) and constitutes a valid and binding agreement of the Company, enforceable
against the Company (and, to the knowledge of Transaction Entities, against the Manager) in accordance with its terms; except in
the case of each agreement described in this paragraph 2(m), as enforceability may be limited by applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and similar laws relating to or affecting creditors’ rights and remedies
generally, and subject, as to enforceability, to general principles of equity and, with respect to equitable relief, the discretion
of the court before which any proceeding therefor may be brought (regardless of whether enforcement is sought in a proceeding at
law or in equity), and with respect to indemnification thereunder, except as rights may be limited by applicable law or policies
underlying such law.

 

(k)               
The Securities have been duly authorized for issuance and sale to the Investors or their nominees pursuant to this Agreement,
and when the Securities have been issued and delivered by the Company pursuant to this Agreement against payment of the consideration
set forth herein, such Securities will be validly issued and fully paid and non-assessable; and the issuance of the Securities
is not subject to the preemptive or other similar rights of any security holder of the Company. The certificates, if any, to be
used to evidence the Securities will, at the Closing Date, be in due and proper form and will comply in all material respects with
all applicable legal requirements, the requirements of the charter and bylaws of the Company and the requirements of the NASDAQ
Capital Market.

 

(l)                
Each of the Transaction Entities and each of their Subsidiaries, if any, has all requisite corporate power and authority,
and all necessary authorizations, approvals, consents, orders, licenses, certificates and permits of and from all governmental
or regulatory bodies or any other person or entity (collectively, the “Permits”), to own, lease and license
its assets and properties (including the Acquired Properties) and conduct its business, all of which are valid and in full force
and effect, except where the lack of such Permits, individually or in the aggregate, would not have a Material Adverse Effect.
Each of the Transaction Entities and each of their Subsidiaries, if any, have fulfilled and performed in all material respects
all of their respective obligations with respect to such Permits and no event has occurred that allows, or after notice or lapse
of time would allow, revocation or termination thereof or results in any other material impairment of the rights of such entity
thereunder. Except as may be required under the Securities Act, state and foreign Blue Sky laws and the rules of the Financial
Industry Regulatory Authority (“FINRA”), no other Permits are required to enter into, deliver and perform the
obligations of the Transaction Entities under this Agreement and for the Company to issue and sell the Shares.

 

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(m)             
Each of the Transaction Entities and each of their Subsidiaries owns or possesses legally enforceable rights to use all
patents, patent rights, inventions, trademarks, trademark applications, trade names, service marks, copyrights, copyright applications,
licenses, know-how and other similar rights and proprietary knowledge (collectively, “Intangibles”) necessary
for the conduct of its business. Neither of the Transaction Entities nor any Subsidiary has received any notice of, or is not aware
of, any infringement of or conflict with asserted rights of others with respect to any Intangibles.

 

(n)               
(i) The Operating Partnership or a Subsidiary thereof has good and marketable title (fee or, in the case of ground leases
and as disclosed in the Memorandum, leasehold) to Franklin Square, to an undivided 84% tenant-in- common interest in Hanover Square
(the “Hanover Square Interest”) and to an undivided 64% tenant-in-common interest in Greensboro Hampton Inn
(the “GBHI Interest”), free and clear of all mortgages, pledges, liens, claims, security interests, restrictions
or encumbrances of any kind, except such as (1) are described in the Memorandum or (2) do not, singly or in the aggregate, materially
affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by
the Transaction Entities or any of their Subsidiaries; (ii) neither the Transaction Entities nor any of their Subsidiaries owns
any real property other than the properties described in the Memorandum; (iii) each of the ground leases and subleases of real
property, if any, material to the business of the Transaction Entities and their Subsidiaries, considered as one enterprise, and
under which the Transaction Entities or any of their Subsidiaries holds properties described in the Memorandum, is in full force
and effect, with such exceptions as are not material and do not materially interfere with the use made or proposed to be made of
such real property by either of the Transaction Entities or any of their Subsidiaries, and neither of the Transaction Entities
nor any of their Subsidiaries has any notice of any material claim of any sort that has been asserted by any ground lessor or sublessor
under a ground lease or sublease threatening the rights of the Transaction Entities or any of their Subsidiaries to the continued
possession of the leased or subleased premises under any such ground lease or sublease; (iv) all liens, charges, encumbrances,
claims or restrictions on any of the properties (including the Acquired Properties) and the assets of a Transaction Entity or any
of their Subsidiaries that are required to be disclosed in the Memorandumare disclosed therein; (v) no tenant under any of the
leases at the Acquired Properties has a right of first refusal to purchase the premises demised under such lease; (vi) each of
the Acquired Properties complies with all applicable codes, laws and regulations (including, without limitation, building and zoning
codes, laws and regulations and laws relating to access to the Acquired Properties), except if and to the extent disclosed in the
Memorandum, and except for such failures to comply that would not, singly or in the aggregate, reasonably be expected to have a
Material Adverse Effect; (vii) except if and to the extent disclosed in the SEC Reports, no Transaction Entity has knowledge of
any pending or threatened condemnation proceedings, zoning change or other proceeding or action that will materially affect the
use or value of any of the Acquired Properties; and (viii) the mortgages and deeds of trust that encumber the Acquired Properties
are not convertible into equity securities of the entity owning such Acquired Property and said mortgages and deeds of trust are
not cross-defaulted or cross-collateralized with any property other than other Acquired Properties.

 

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(o)               
To the knowledge of the Transaction Entities, water, stormwater, sanitary sewer, electricity and telephone service are all
available at the property lines of each Acquired Property over duly dedicated streets or perpetual easements of record benefiting
the applicable Acquired Property.

 

(p)               
Subsequent to the respective dates as of which information is given in the Memorandum: (i) there has not been any event
which would reasonably be expected to result in a Material Adverse Effect; (ii) neither of the Transaction Entities nor any of
their Subsidiaries has sustained any loss or interference with its assets, businesses or properties (whether owned or leased) from
fire, explosion, earthquake, flood or other calamity, whether or not covered by insurance, or from any labor dispute or any court
or legislative or other governmental action, order or decree which would reasonably be expected to result in a Material Adverse
Effect. Except as disclosed in the Memorandum, since the date of the latest balance sheet included in the Memorandum, neither of
the Transaction Entities nor any of their Subsidiaries has (A) issued any securities or incurred any liability or obligation, direct
or contingent, for borrowed money, except such liabilities or obligations incurred in the ordinary course of business, (B) entered
into any transaction not in the ordinary course of business or (C) declared or paid any dividend or made any distribution on any
shares of its stock or redeemed, purchased or otherwise acquired or agreed to redeem, purchase or otherwise acquire any shares
of its capital stock.

 

(q)               
There is no document, contract or other agreement required to be described in the SEC Reports to be filed as an exhibit
to the SEC Reports which is not described or filed as required by the Securities Act or Rules. Each description of a contract,
document or other agreement in the SEC Reports accurately reflects in all material respects the terms of the underlying contract,
document or other agreement. Each contract, document or other agreement described in the SEC Reports filed as exhibits to the SEC
Reports is, or upon consummation of the Offering will be, in full force and effect and is valid and enforceable by and against
the Transaction Entities or any of their Subsidiaries, as the case may be, in accordance with its terms, except (i) such contracts
or other agreements that have terminated or expired in accordance with their terms as disclosed in the SEC Reports, where the failure
to be in full force and effect and so valid and enforceable would not reasonably be expected to result in a Material Adverse Effect,
individually or in the aggregate and (iii) as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and similar laws relating to or affecting creditors’ rights and remedies generally, and subject,
as to enforceability, to general principles of equity and, with respect to equitable relief, the discretion of the court before
which any proceeding therefor may be brought (regardless of whether enforcement is sought in a proceeding at law or in equity),
and with respect to indemnification thereunder, except as rights may be limited by applicable law or policies underlying such law.
To the knowledge of the Transaction Entities, neither of the Transaction Entities nor any of their Subsidiaries, is in default
in the observance or performance of any term or obligation to be performed by it under any such agreement, and no event has occurred
which with notice or lapse of time or both would constitute such a default, in any such case which default or event, individually
or in the aggregate, would reasonably be expected to have a Material Adverse Effect. No default exists, and no event has occurred
which with notice or lapse of time or both would constitute a default, in the due performance and observance of any term, covenant
or condition, by the Transaction Entities or any of their Subsidiaries, if a Subsidiary is a party thereto, of any other agreement
or instrument to which it is a party or by which it or its properties or business may be bound or affected which default or event,
individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

 

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(r)                
The statistical and market related data included in the Memorandum are based on or derived from sources that the Company
believes to be reliable and accurate.

 

(s)                
Neither of the Transaction Entities nor any of their Subsidiaries (i) is in violation of its certificate or articles of
incorporation, by-laws, certificate of limited partnership, agreement of limited partnership, certificate of formation, operating
agreement or other organizational documents, (ii) is in default under, and no event has occurred which, with notice or lapse of
time, or both, would constitute a default under, or result in the creation or imposition of any lien, charge, mortgage, pledge,
security interest, claim, limitation on voting rights, equity, trust or other encumbrance, preferential arrangement, defect or
restriction of any kind whatsoever, upon, any property or assets of the Transaction Entities or any of their Subsidiaries pursuant
to, any bond, debenture, note, indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which it
is a party or by which it is bound or to which any of its properties or assets is subject or (iii) is in violation of any statute,
law, rule, regulation, ordinance, directive, judgment, decree or order of any judicial, regulatory or other legal or governmental
agency or body, foreign or domestic, except (in the case of clauses (ii) and (iii) above) for violations or defaults that could
not (individually or in the aggregate) reasonably be expected to have a Material Adverse Effect.

 

(t)                
Neither the execution, delivery and performance of this Agreement by the Transaction Entities nor the consummation of any
of the transactions contemplated hereby (including, without limitation, the issuance and sale by the Company of the Securities)
will give rise to a right to terminate or accelerate the due date of any payment due under, or conflict with or result in the breach
of any term or provision of, or constitute a default (or an event which with notice or lapse of time or both would constitute a
default) under, or require any consent or waiver under, or result in the execution or imposition of any lien, charge or encumbrance
upon any properties or assets of the Transaction Entities or any of their Subsidiaries pursuant to the terms of: (i) any indenture,
mortgage, deed of trust or other agreement or instrument to which either of the Transaction Entities or any of their Subsidiaries
is a party or by which either of the Transaction Entities or any of their Subsidiaries or any of their properties or businesses
is bound, or any franchise, license, permit, judgment, decree, order, statute, rule or regulation applicable to either of the Transaction
Entities or any of their Subsidiaries, or (ii) violate any provision of certificate or articles of incorporation, by-laws, certificate
of limited partnership, agreement of limited partnership, certificate of formation, operating agreement or other organizational
documents of either of the Transaction Entities or any of their Subsidiaries, except (A) in the case of clause (i) above, for violations
or defaults that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, and
(B) for such consents or waivers which have already been obtained and are in full force and effect.

 

(u)               
Except as disclosed in the Memorandum, there are no legal or governmental proceedings pending to which either of the Transaction
Entities or any of their Subsidiaries is a party or of which any property of the Transaction Entities or any of their Subsidiaries
is the subject which, if determined adversely to it could individually or in the aggregate have a Material Adverse Effect; and,
to the knowledge of the Transaction Entities, no such proceedings are threatened or contemplated by governmental authorities or
threatened by others.

 

(v)               
Neither of the Transaction Entities or any of their Subsidiaries is involved in any labor dispute or, to the knowledge of
the Transaction Entities, is any such dispute threatened, which dispute would reasonably be expected to result in a Material Adverse
Effect. Neither of the Transaction Entities is aware of any existing or imminent labor disturbance by the employees of any of its
or its Subsidiaries, principal suppliers or contractors which would reasonably be expected to result in a Material Adverse Effect.
Neither of the Transaction Entities is aware of any threatened or pending litigation between either of the Transaction Entities
or any of their Subsidiaries and any of its executive officers which, if adversely determined, could have a Material Adverse Effect
and has no reason to believe that such officers will not remain in the employment of the Transaction Entities or their Subsidiaries,
as the case may be.

 

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(w)             
No transaction has occurred between or among either of the Transaction Entities and any of their officers or directors,
or five percent stockholders or any affiliate or affiliates of any such officer or director or five percent stockholders that is
required to be described in and is not described in the Memorandum.

 

(x)               
Neither of the Transaction Entities has taken, nor will it take, directly or indirectly, any action designed to or which
might reasonably be expected to cause or result in, or which has constituted or which might reasonably be expected to constitute,
the stabilization or manipulation of the price of the Common Stock or any other security of the Company to facilitate the sale
or resale of any of the Shares.

 

(y)               
The Transaction Entities and their Subsidiaries have filed all federal, state, local and foreign tax returns which are required
to be filed through the date hereof, which returns are true and correct in all material respects or has received timely extensions
thereof, and has paid all taxes shown on such returns and all assessments received by it to the extent that the same are material
and have become due. There are no tax audits or investigations pending, which if adversely determined would reasonably be expected
to result in a Material Adverse Effect; nor are there any material proposed additional tax assessments against either of the Transaction
Entities or their Subsidiaries.

 

(z)               
Prior to the Closing Date, the Company shall have applied to have the Shares listed on the NASDAQ Capital Market. The Common
Stock is registered pursuant to Section 12(b) of the Exchange Act.

 

(aa)            
Neither of the Transaction Entities has taken any action designed to, or likely to have the effect of, terminating the registration
of the Common Stock under the Exchange Act or the listing of the Common Stock on the NASDAQ Capital Market, nor has either of the
Transaction Entities received any notification that the Commission or the NASDAQ Capital Market is contemplating terminating such
registration or listing.

 

(bb)           
The books, records and accounts of the Transaction Entities and their Subsidiaries accurately and fairly reflect, in all
material respects, the transactions in, and dispositions of, the assets of, and the results of operations of, the Transaction Entities
and their Subsidiaries. The Transaction Entities and their Subsidiaries maintain a system of internal accounting controls sufficient
to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s
general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

 

(cc)            
Neither of the Transaction Entities is aware of (i) except as described in the SEC Reports, any material weakness or significant
deficiency in the design or operation of internal controls which could adversely affect the Company’s ability to record,
process, summarize and report financial data or any material weaknesses in internal controls; or (ii) any fraud, whether or not
material, that involves management or other employees who have a role in the Company’s internal controls.

 

    	 	9	 

     

    

  

(dd)           
The Auditor has not been engaged by the Company to perform any “prohibited activities” (as defined in Section
10A of the Exchange Act).

 

(ee)            
Except as described in the Memorandum, there are no material off-balance sheet arrangements (as defined in Item 303 of Regulation
S-K) that have or are reasonably likely to have a material current or future effect on the Company’s financial condition,
revenues or expenses, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

 

(ff)              
The Company’s Board of Directors has established an audit committee whose composition satisfies the requirements of
Rule 5605 of the NASDAQ Stock Market Listing Rules and the Board of Directors and/or the audit committee of the Board of Directors
has adopted a charter that satisfies the requirements of Rule 5605 of the NASDAQ Stock Market Listing Rules.

 

(gg)           
The Company is currently in compliance in all material respects with all provisions of the Sarbanes-Oxley Act of 2002 and
all rules and regulations promulgated thereunder (the “Sarbanes-Oxley Act”) with which the Company is required
to comply. The Company has not, directly or indirectly, including through any Subsidiary, extended credit, arranged to extend credit,
or renewed any extension of credit, in the form of a personal loan, to or for any executive officer of the Company or the Operating
Partnership, or to or for any family member or affiliate of any director or executive officer of the Company or the Operating Partnership.

 

(hh)           
The Transaction Entities and their Subsidiaries and the Acquired Properties (or Subsidiary thereof, if any) carry or are
entitled to the benefits of insurance, with financially sound and reputable insurers, in such amounts and covering such risks as
is generally maintained by companies of established repute engaged in the same or similar business, and all such insurance is in
full force and effect. Neither of the Transaction Entities has any reason to believe that it or any of their Subsidiaries will
not be able (A) to renew, if desired, its existing insurance coverage as and when such policies expire or (B) to obtain comparable
coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that
would not result in a Material Adverse Effect. Neither of the Transaction Entities nor any of their Subsidiaries nor any Acquired
Property (or Subsidiary thereof) has been denied any insurance coverage that it has sought or for which it has applied. The Transaction
Entities, directly or indirectly, have obtained title insurance on the fee, tenant-in-common, or leasehold interests, as the case
may be, in each of the Acquired Properties, in an amount equal to no less than eighty percent (80%) of the purchase price of each
such Acquired Property.

 

(ii)              
To the knowledge of the Transaction Entities, and except as disclosed in the Memorandum, no: (i) officer or director of
the Transaction Entities or their Subsidiaries, (ii) owner of 5% or more of the Company’s unregistered securities or that
of its Subsidiaries or (iii) owner of any amount of the Company’s unregistered securities acquired within the 180-day period
prior to the Closing Date, has any direct or indirect affiliation or association with any FINRA member. The Transaction Entities
will advise the Placement Agent if it becomes aware that any officer, director or stockholder of the Company or its Subsidiaries
is or becomes an affiliate or associated person of a FINRA member participating in the Offering.

 

(jj)              
Neither of the Transaction Entities expects to be a Passive Foreign Investment Company (“PFIC”) within
the meaning of Section 1297(a) of the United States Internal Revenue Code, as amended (the “Code”), and the
regulations and published interpretations thereunder, for the year ending December 31, 2019, and has no plan or intention to conduct
its business in a manner that would be reasonably expected to result in either of the Transaction Entities becoming a PFIC in the
future under current laws and regulations.

 

    	 	10	 

     

    

 

 (kk)           
Except as disclosed in the Memorandum: (i) to the knowledge of the Transaction Entities, each of the Transaction Entities
and each of their Subsidiaries, if any, is in compliance in all material respects with all rules, laws and regulation relating
to the use, treatment, storage and disposal of toxic substances and protection of health or the environment (“Environmental
Law”) which are applicable to its properties and business; (ii) neither of the Transaction Entities or their Subsidiaries
has received any notice from any governmental authority or third party of an asserted claim under Environmental Laws; (iii) each
of Transaction Entities and their Subsidiaries has received all permits, licenses or other approvals required of it under applicable
Environmental Laws to conduct its business and is in compliance in all material respects with all terms and conditions of any
such permit, license or approval; (iv) to the knowledge of the Transaction Entities, no facts currently exist that will require
either of the Transaction Entities or their Subsidiaries to make future material capital expenditures to comply with Environmental
Laws; and (v) no property which is or has been owned, leased or occupied by either of the Transaction Entities or their Subsidiaries
has been designated as a Superfund site pursuant to the Comprehensive Environmental Response, Compensation of Liability Act of
1980, as amended (42 U.S.C. Section 9601, et. seq.) (“CERCLA”), or otherwise designated as a contaminated site
under applicable state or local law. Neither of the Transaction Entities nor their Subsidiaries has been named as a “potentially
responsible party” under CERCLA.

 

(ll)              
Neither of the Transaction Entities is and, after giving effect to the Offering, the sale of the Shares and the application
of proceeds thereof as described in the Memorandum, will be an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

 

(mm)       
Neither of the Transaction Entities nor any other person associated with or acting on behalf of the Transaction Entities
including, without limitation, any director, officer, agent or employee of the Transaction Entities or their Subsidiaries, has,
directly or indirectly, while acting on behalf of the Transaction Entities or their Subsidiaries: (i) used any corporate funds
for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; (ii) made any unlawful
payment to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns from
corporate funds; (iii) violated any provision of the Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any other
unlawful payment.

 

(nn)           
 The operations of the Transaction Entities and their Subsidiaries are and have been conducted at all times in compliance
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Transaction Entities and their Subsidiaries with respect to the Money Laundering Laws is pending,
or to the knowledge of the Transaction Entities, threatened.

 

(oo)           
Neither of the Transaction Entities nor their Subsidiaries, nor, to the knowledge of the Transaction Entities, any director,
officer, agent, employee or affiliate of the Transaction Entities or their Subsidiaries is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and neither of
the Transaction Entities will directly or indirectly use the proceeds of the Offering, or lend, contribute or otherwise make available
such proceeds to its Subsidiaries or any joint venture partner or other person or entity, for the purpose of financing the activities
of any person currently subject to any U.S. sanctions administered by OFAC.

 

    	 	11	 

     

    

  

(pp)           
Except as described in the Memorandum, the Company has not sold or issued any shares of Common Stock during the six-month
period preceding the Closing Date, including any sales pursuant to Rule 144A under, or Regulation D or Regulation S of, the Securities
Act, other than shares issued pursuant to employee benefit plans, qualified stock options plans or other employee compensation
plans or pursuant to outstanding options, rights or warrants.

 

(qq)           
 The Transaction Entities fulfilled their obligations, if any, under the minimum funding standards of Section 302 of the
U.S. Employee Retirement Income Security Act of 1974 (“ERISA”) and the regulations and published interpretations
thereunder with respect to each “plan” as defined in Section 3(3) of ERISA and such regulations and published interpretations
in which its employees are eligible to participate and each such plan is in compliance in all material respects with the presently
applicable provisions of ERISA and such regulations and published interpretations. No “Reportable Event” (as defined
in 12 ERISA) has occurred with respect to any “Pension Plan” (as defined in ERISA) for which the Company could have
any liability.

 

(rr)              
The statements in the Memorandum under the headings “Restrictions on Ownership of Our Stock,” “Distribution
Policy,” “Our Tax Status,” “Description of Capital Stock,” “Important Provisions of Maryland
Corporate Law and of Our Charter and Bylaws,” “Material Federal Income Tax Considerations,” “ERISA Considerations”
and “Plan of Distribution”, and “Certain Relationships and Related Party Transactions,” insofar as such
statements summarize legal matters, agreements, documents or proceedings discussed therein, are accurate and fair summaries of
such legal matters, agreements, documents or proceedings in all material respects.

 

(ss)             
 The Company is organized in conformity with the requirements for qualification and taxation as a real estate investment
trust (“REIT”) under the Code, and the Company’s proposed method of operation will enable it to continue
to qualify for taxation as a REIT under the Code. All statements regarding the Company’s qualification and taxation as a
REIT and descriptions of the Company’s organization and proposed method of operation (inasmuch as they relate to the ability
of the Company’s qualification and taxation as a REIT) set forth in the Memorandum are accurate and fair summaries of the
legal or tax matters described therein in all material respects.

 

(tt)              
 Except as described in the Memorandum, the Operating Partnership is not currently prohibited, directly or indirectly, from
paying any distributions to the Company to the extent permitted by applicable law, from making any other distribution on the Operating
Partnership’s partnership interest, or from repaying the Company for any loans or advances made by the Company to the Operating
Partnership.

 

(uu)           
Any certificate signed by an officer of the Company and delivered to the Placement Agent or to counsel for the Placement
Agent shall be deemed to be a representation and warranty by the Company to the Placement Agent as to the matters set forth
therein.

 

(vv)           
The Transaction Entities acknowledge that the Placement Agent will rely upon the accuracy and truthfulness of the foregoing
representations and warranties and hereby consents to such reliance.

 

(ww)          
In connection with the Offering of Securities pursuant to the Memorandum, the Transaction Entities have not published, distributed,
issued, posted or otherwise used or employed and shall not publish, distribute, issue, post or otherwise use or employ (i) any
form of general solicitation or advertising within the meaning of Rule 502 under the Securities Act (“General Solicitation”)
other than with the prior written consent of the Placement Agent, or (ii) any General Solicitation that constitutes a written communication
within the meaning of Rule 405 under the Securities Act (“Written General Solicitation Material”). Each individual
Written General Solicitation Material does not and will not conflict with the information contained in the Memorandum, and does
not and will not, contain an untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.

 

    	 	12	 

     

    

  

(xx)           
The Company will furnish a copy of any amendment or supplement to a Written General Solicitation Material to the Placement
Agent and counsel for the Placement Agent and obtain the Placement Agent's written consent prior to any publication, distribution,
issuance, posting or other use or employment of any such amendment or supplement.

 

(yy)           
If at any time after the date hereof and prior to a Closing, any event shall have occurred as a result of which any Written
General Solicitation Material, as then amended or supplemented, would conflict with the information in the Memorandum, or would
include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, or, if for any other reason it shall become necessary
to amend or supplement any Written General Solicitation Material, the Company shall promptly notify the Placement Agent and upon
its request, shall use its best efforts to ensure that all purchasers or expected purchasers of the Securities receive corrected
Written General Solicitation Materials.

 

(zz)            
The Company represents, warrants and agrees that all sales of Securities shall be made only to "accredited investors"
(as such term is defined in Rule 501 of Regulation D under the Securities Act), and that it has taken or will take reasonable steps
to verify that such Investors are accredited investors, which reasonable steps may include but are not limited to the methods identified
in Rule 506(c). Notwithstanding the foregoing, the Placement Agent shall use commercially reasonable efforts to assist its customers
to complete the subscription documents to the Offering.

 

(aaa)         
None of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the
Company participating in the Offering, any beneficial owner of 20% or more of the Company 's outstanding voting equity securities,
calculated on the basis of voting power, any promoter (as that term is defined in Rule 405 under the Securities Act) connected
with the Company in any capacity at the time of sale nor any compensated solicitor or any director, executive officer, other officer
of the compensated solicitor participating in the Offering, (each, an "Issuer Covered Person" and, together, "Issuer
Covered Persons") is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii)
under the Securities Act (a "Disqualification Event"), except for a Disqualification Event covered by Rule
506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification
Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished
to the Placement Agent a copy of any disclosures provided thereunder.

 

(bbb)       
The Company will notify the Placement Agent in writing, prior to a Closing Date of (i) any Disqualification Event relating
to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating
to any Issuer Covered Person.

 

(ccc)         
In addition, the Placement Agent shall be entitled to rely on the accuracy of all representations and warranties made by
the Transaction Entities to Investors pursuant to the Transaction Documents.

  

    	 	13	 

     

    

 

Section 3.            
Delivery and Payment. The Closing shall occur at the offices of Sichenzia Ross Ference LLP, 1185 Avenue of the Americas,
New York, New York 1036 (“Placement Agent Counsel”) (or at such other place as shall be agreed upon by the Placement
Agent and the Company). Subject to the terms and conditions hereof, at the Closing payment of the purchase price for the Securities
sold on the Closing Date shall be made by Federal Funds wire transfer, against delivery of such Securities, and such Securities
shall be registered in such name or names and shall be in such denominations, as the Placement Agent may request at least one business
day before the time of purchase.

 

Deliveries of the documents
with respect to the purchase of the Securities, if any, shall be made at the offices of Placement Agent Counsel. All actions taken
at the Closing shall be deemed to have occurred simultaneously.

 

Section 4.            
Covenants and Agreements of the Company. The Company further covenants and agrees with the Placement Agent as follows:

 

(a)               
Intentionally Omitted.

 

(b)               
Blue Sky Compliance. The Company will cooperate with the Placement Agent and the Investors in endeavoring to qualify
the Securities for sale under the securities laws of such jurisdictions (United States and foreign) as the Placement Agent and
the Investors may reasonably request and will make such applications, file such documents, and furnish such information as may
be reasonably required for that purpose, provided the Company shall not be required to qualify as a foreign corporation or to file
a general consent to service of process in any jurisdiction where it is not now so qualified or required to file such a consent,
and provided further that the Company shall not be required to produce any new disclosure documents. The Company will, from time
to time, prepare and file such statements, reports and other documents as are or may be required to continue such qualifications
in effect for so long a period as the Placement Agent may reasonably request for distribution of the Securities. The Company will
advise the Placement Agent promptly of the suspension of the qualification or registration of (or any such exemption relating to)
the Securities for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose,
and in the event of the issuance of any order suspending such qualification, registration or exemption, the Company shall use its
best efforts to obtain the withdrawal thereof at the earliest possible moment.

 

(c)               
Amendments, Supplements and Other Matters. The Company will comply with the Securities Act and the Exchange Act,
and the rules and regulations of the Commission thereunder, so as to permit the completion of the distribution of the Securities
and other shares of Common Stock as contemplated in this Agreement and the Memorandum. If during the Offering period, any event
shall occur as a result of which, in the judgment of the Company or in the opinion of the Placement Agent or counsel for the Placement
Agent, it becomes necessary to amend or supplement the Memorandum in order to make the statements therein, in the light of the
circumstances under which they were made, as the case may be, not misleading, or if it is necessary at any time to amend or supplement
the Memorandum, the Company will promptly prepare an appropriate amendment or supplement to the Memorandum, that is necessary in
order to make the statements therein as so amended or supplemented, in the light of the circumstances under which they were made,
as the case may be, not misleading, or so that the Memorandum, as so amended or supplemented, will comply with law. Before amending
the Memorandum, the Company will furnish the Placement Agent with a copy of such proposed amendment or supplement and will not
distribute any such amendment or supplement to which the Placement Agent reasonably objects.

 

    	 	14	 

     

    

  

(d)               
Copies of any Amendments and Supplements to the Memorandum. The Company will furnish the Placement Agent, without
charge, during the period beginning on the date hereof and ending on the Closing Date of the Offering, as many copies of the Memorandum
and other documents to be furnished to Investors as the Placement Agent may reasonably request.

 

(e)               
Intentionally Omitted.

 

(f)                
Transfer Agent. The Company will maintain, at its expense, a registrar and transfer agent for the Common Stock.

 

(g)               
Earnings Statement. As soon as practicable and in accordance with applicable requirements under the Securities Act,
but in any event not later than 18 months after the Closing Date, the Company will make generally available to its security holders
and to the Placement Agent an earnings statement, covering a period of at least 12 consecutive months beginning after the Closing
Date, that satisfies the provisions of Section 11(a) and Rule 158 under the Securities Act.

 

(h)               
Periodic Reporting Obligations. For as long as the Securities remain outstanding, the Company will duly file, on
a timely basis, with the Commission and the NASDAQ Capital Market all reports and documents required to be filed under the Exchange
Act within the time periods and in the manner required by the Exchange Act.

 

(i)                
Additional Documents. The Company will enter into any subscription, purchase or other customary agreements
as the Placement Agent or the Investors deem necessary or appropriate to consummate the Offering, all of which will be in form
and substance reasonably acceptable to the Placement Agent and the Investors. The Company agrees that the Placement Agent may rely
upon, and each is a third party beneficiary of, the representations and warranties, and applicable covenants, set forth in any
such purchase, subscription or other agreement with Investors in the Offering.

 

(j)                
No Manipulation of Price.  The Company will not take, directly or indirectly, any action designed to
cause or result in, or that has constituted or might reasonably be expected to constitute, the stabilization or manipulation of
the price of any securities of the Company.

 

(k)               
Acknowledgment. The Company acknowledges that any advice given by the Placement Agent to the Company is solely for
the benefit and use of the Board of Directors of the Company and may not be used, reproduced, disseminated, quoted or referred
to, without the Placement Agent's prior written consent.

 

(l)                
Announcement of Offering. The Company acknowledges and agrees that the Placement Agent may, subsequent to the Closing,
make public its involvement with the Offering.

 

(m)             
Reliance on Others. The Company confirms that it will rely on its own counsel and accountants for legal and accounting
advice.

 

(n)               
Research Matters. By entering into this Agreement, the Placement Agent
does not provide any promise, either explicitly or implicitly, of favorable or continued research coverage of the Company and the
Company hereby acknowledges and agrees that the Placement Agent’s selection as a placement agent for the Offering was in
no way conditioned, explicitly or implicitly, on the Placement Agent providing favorable or any research coverage of the Company.
In accordance with FINRA Rule 2711(e), the parties acknowledge and agree that the Placement Agent has not directly or indirectly
offered favorable research, a specific rating or a specific price target, or threatened to change research, a rating or a price
target, to the Company or inducement for the receipt of business or compensation.

 

    	 	15	 

     

    

  

Section 5.           
Conditions of the Obligations of the Placement Agent. The obligations of the Placement Agent hereunder shall be subject
to the accuracy of the representations and warranties on the part of the Company set forth in Section 2 hereof, in each case as
of the date hereof and as of the Closing Date as though then made, to the timely performance by each of the Company of its covenants
and other obligations hereunder on and as of such dates, and to each of the following additional conditions:

 

(a)               
Intentionally Omitted.

 

(b)               
Intentionally Omitted.

 

(c)               
Corporate Proceedings. All corporate proceedings and other legal matters in connection with this Agreement the Memorandum,
and the sale and delivery of the Securities, shall have been completed or resolved in a manner reasonably satisfactory to the Placement
Agent's counsel, and such counsel shall have been furnished with such papers and information as it may reasonably have requested
to enable such counsel to pass upon the matters referred to in this Section 5.

 

(d)               
No Material Adverse Change. Subsequent to the execution and delivery of this Agreement and prior to the Closing Date,
in the Placement Agent's sole judgment after consultation with the Company, there shall not have occurred any Material Adverse
Change or Material Adverse Effect.

 

(e)               
Stock Exchange Listing. The Common Stock shall be registered under the Exchange Act and shall be listed on the NASDAQ
Capital Market, and the Company shall not have taken any action designed to terminate, or likely to have the effect of terminating, the
registration of the Common Stock under the Exchange Act or delisting or suspending from trading the Common Stock from the NASDAQ
Capital Market, nor shall the Company have received any information suggesting that the Commission or the NASDAQ Capital Market
is contemplating terminating such registration or listing.

 

(f)                
Additional Documents. On or before the Closing Date, the Placement Agent and counsel for the Placement Agent shall
have received such information and documents as they may reasonably require for the purposes of enabling them to pass upon the
issuance and sale of the Securities as contemplated herein, or in order to evidence the accuracy of any of the representations
and warranties, or the satisfaction of any of the conditions or agreements, herein contained.

 

If any condition specified
in this Section 5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Placement Agent
by notice to the Company at any time on or prior to the Closing Date, which termination shall be without liability on the part
of any party to any other party, except that Section 6 (Payment of Expenses), Section 7 (Indemnification and Contribution) and
Section 8 (Representations and Indemnities to Survive Delivery) shall at all times be effective and shall survive such termination.

 

Section 6.           
Payment
of Expenses. The Company agrees to pay all costs, fees and expenses incurred by the Company in connection with the performance
of its obligations hereunder and in connection with the transactions contemplated hereby, including, without limitation: (i) all
expenses incident to the issuance, delivery and qualification of the Securities (including all printing and engraving costs);
(ii) all fees and expenses of the registrar and transfer agent of the Common Stock; (iii) all necessary issue, transfer and other
stamp taxes in connection with the issuance and sale of the Securities; (iv) all fees and expenses of the Company’s
counsel, independent public or certified public accountants and other advisors; (v) all costs and expenses incurred in connection
with the preparation, printing, filing, shipping and distribution of the Memorandum, and all amendments and supplements thereto,
and this Agreement; (vi) all filing fees, reasonable attorneys’ fees and expenses incurred by the Company or the Placement
Agent in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or
any part of the Securities for offer and sale under the state securities or blue sky laws or the securities laws of any other
country, and any supplements thereto, advising the Placement Agent of such qualifications, registrations and exemptions; (vii)
if applicable, the filing fees incident to the review and approval by FINRA of the Placement Agent's participation in the Offering
and distribution of the Securities; and (viii) the fees and expenses associated with including the Securities on the NASDAQ Capital
Market.

 

    	 	16	 

     

    

  

Section 7.           
 Indemnification
and Contribution.

 

(a) The Company
agrees to indemnify and hold harmless the Placement Agent, its affiliates and each person controlling the Placement Agent (within
the meaning of Section 15 of the Securities Act), and the directors, officers, agents and employees of the Placement Agent, its
affiliates and each such controlling person (the Placement Agent, and each such entity or person. an “Indemnified Person”)
from and against any losses, claims, damages, judgments, assessments, costs and other liabilities (collectively, the “Liabilities”),
and shall reimburse each Indemnified Person for all fees and expenses (including the reasonable fees and expenses of one counsel
for all Indemnified Persons, except as otherwise expressly provided herein) (collectively, the “Expenses”) as
they are incurred by an Indemnified Person in investigating, preparing, pursuing or defending any Actions, whether or not any Indemnified
Person is a party thereto, (i) caused by a breach by the Company of any of its representations, warranties or covenants contained
in this Agreement or in any certificate delivered by or on behalf of the Company in connection with this Agreement, (ii) caused
by, or arising out of or in connection with, any untrue statement or alleged untrue statement of a material fact contained in the
Memorandum or by any omission or alleged omission to state therein a material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading (other than untrue statements or alleged untrue statements
in, or omissions or alleged omissions from, information relating to an Indemnified Person furnished in writing by or on behalf
of such Indemnified Person expressly for use in such documents) or (iii) otherwise arising out of or in connection with advice
or services rendered or to be rendered by any Indemnified Person pursuant to this Agreement, the transactions contemplated thereby
or any Indemnified Person's actions or inactions in connection with any such advice, services or transactions; provided, however,
that, in the case of clause (iii) only, the Company shall not be responsible for any Liabilities or Expenses of any Indemnified
Person that have resulted primarily from such Indemnified Person's (x) gross negligence, bad faith or willful misconduct in connection
with any of the advice, actions, inactions or services referred to above or (y) use of any offering materials or information concerning
the Company in connection with the offer or sale of the Securities in the Offering which were not authorized for such use by the
Company and which use constitutes negligence, bad faith or willful misconduct. The Company also agrees to reimburse each Indemnified
Person for all Expenses as they are incurred in connection with enforcing such Indemnified Person's rights under this Agreement.

 

    	 	17	 

     

    

 

(b)       Upon
receipt by an Indemnified Person of actual notice of an Action against such Indemnified Person with respect to which indemnity
may be sought under this Agreement, such Indemnified Person shall promptly notify the Company in writing; provided that failure
by any Indemnified Person so to notify the Company shall not relieve the Company from any liability which the Company may have
on account of this indemnity or otherwise to such Indemnified Person, except to the extent the Company shall have been prejudiced
by such failure. The Company shall, if requested by the Placement Agent, assume the defense of any such Action including the employment
of counsel reasonably satisfactory to the Placement Agent, which counsel may also be counsel to the Company. Any Indemnified Person
shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Person unless: (i) the Company has failed promptly to assume the defense
and employ counsel or (ii) the named parties to any such Action (including any impeded parties) include such Indemnified Person
and the Company, and such Indemnified Person shall have been advised in the reasonable opinion of counsel that there is an actual
conflict of interest that prevents the counsel selected by the Company from representing both the Company (or another client of
such counsel) and any Indemnified Person; provided that the Company shall not in such event be responsible hereunder for the fees
and expenses of more than one firm of separate counsel for all Indemnified Persons in connection with any Action or related Actions,
in addition to any local counsel. The Company shall not be liable for any settlement of any Action effected without its written
consent (which shall not be unreasonably withheld). In addition, the Company shall not, without the prior written consent of the
Placement Agent (which shall not be unreasonably withheld), settle, compromise or consent to the entry of any judgment in or otherwise
seek to terminate any pending or threatened Action in respect of which indemnification or contribution may be sought hereunder
(whether or not such Indemnified Person is a party thereto) unless such settlement, compromise, consent or termination includes
an unconditional release of each Indemnified Person from all Liabilities arising out of such Action for which indemnification or
contribution may be sought hereunder. The indemnification required hereby shall be made by periodic payments of the amount thereof
during the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable.

 

(c)       In
the event that the foregoing indemnity is unavailable to an Indemnified Person other than in accordance with this Agreement, the
Company shall contribute to the Liabilities and Expenses paid or payable by such Indemnified Person in such proportion as is appropriate
to reflect (i) the relative benefits to the Company, on the one hand, and to the Placement Agent and any other Indemnified Person,
on the other hand, of the matters contemplated by this Agreement or (ii) if the allocation provided by the immediately preceding
clause is not permitted by applicable law, not only such relative benefits but also the relative fault of the Company, on the one
hand, and the Placement Agent and any other Indemnified Person, on the other hand, in connection with the matters as to which such
Liabilities or Expenses relate, as well as any other relevant equitable considerations; provided that in no event shall the Company
contribute less than the amount necessary to ensure that all Indemnified Persons, in the aggregate, are not liable for any Liabilities
and Expenses in excess of the amount of fees actually received by the Placement Agent pursuant to this Agreement. For purposes
of this paragraph, the relative benefits to the Company, on the one hand, and to the Placement Agent on the other hand, of the
matters contemplated by this Agreement shall be deemed to be in the same proportion as (a) the total value paid or contemplated
to be paid to or received or contemplated to be received by the Company in the transaction or transactions that are within the
scope of this Agreement, whether or not any such transaction is consummated, bears to (b) the fees paid to the Placement Agent
under this Agreement. Notwithstanding the above, no person guilty of fraudulent misrepresentation within the meaning of Section
11(f) of the Securities Act, shall be entitled to contribution from a party who was not guilty of fraudulent misrepresentation.

 

    	 	18	 

     

    

 

(d)       The
Company also agrees that no Indemnified Person shall have any liability (whether direct or indirect, in contract or tort or otherwise)
to the Company for or in connection with advice or services rendered or to be rendered by any Indemnified Person pursuant to this
Agreement, the transactions contemplated thereby or any Indemnified Person's actions or inactions in connection with any such advice,
services or transactions except for Liabilities (and related Expenses) of the Company that are finally judicially determined to
have resulted solely from such Indemnified Person's gross negligence or willful misconduct in connection with any such advice,
actions, inactions or services.

 

(e)       The
reimbursement, indemnity and contribution obligations of the Company set forth herein shall apply to any modification of this Agreement
and shall remain in full force and effect regardless of any termination of, or the completion of any Indemnified Person's services
under or in connection with, this Agreement.

 

Section 8.            Representations and Indemnities to Survive Delivery. The respective indemnities, agreements, representations, warranties
and other statements of the Company or any person controlling the Company, of its officers, and of the Placement Agent set forth
in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf
of the Placement Agent, the Company, or any of its or their partners, officers or directors or any controlling person, as the case
may be, and will survive delivery of and payment for the Securities sold hereunder and any termination of this Agreement. A successor
to a Placement Agent, or to the Company, its directors or officers or any person controlling the Company, shall be entitled to
the benefits of the indemnity, contribution and reimbursement agreements contained in this Agreement.

 

Section 9.            
Notices. All communications hereunder shall be in writing and shall be mailed, hand delivered, telecopied or e-mailed
and confirmed to the parties hereto as follows:

 

If to the Placement Agent to the address
set forth above, attention: David Boral, e-mail: dboral@aegiscap.com

 

With a copy to: 

 

Sichenzia Ross Ference LLP

1185 Avenue of the Americas, 37th Floor

New York, New York 10036

E-Mail: dmocasio@srf.law

Attention: Darrin M. Ocasio, Esq.

 

    	 	19	 

     

    

  

If to the Company:

 

Medalist Diversified REIT, Inc.

11 S. 12th Street, Suite 401

Richmond, VA 23219

Attention: Thomas E. Messier

tmessier@medalistprop.com

 

With a copy to: 

 

Kaplan Voekler Cunningham & Frank PLC

1401 East Cary Street

Richmond, Virginia 23219

Attention: Thomas Voekler

tvoekler@kv-legal.com

 

Any party hereto may
change the address for receipt of communications by giving written notice to the others.

 

Section 10.            Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit of
the employees, officers and directors and controlling persons referred to in ection 7 hereof, and to their respective successors,
and personal representative, and no other person will have any right or obligation hereunder.

 

Section 11.           
Partial Unenforceability. The invalidity or unenforceability of any section, paragraph or provision of this Agreement
shall not affect the validity or enforceability of any other section, paragraph or provision hereof. If any Section, paragraph
or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such
minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

 

Section 12.           
Governing Law Provisions. This Agreement shall be deemed to have been made and delivered in New York City and both this
Agreement and the transactions contemplated hereby shall be governed as to validity, interpretation, construction, effect and in
all other respects by the internal laws of the State of New York, without regard to the conflict of laws principles thereof. Each
of the Placement Agent and the Company: (i) agrees that any legal suit, action or proceeding arising out of or relating to this
Agreement and/or the transactions contemplated hereby shall be instituted exclusively in New York Supreme Court, County of New
York, or in the United States District Court for the Southern District of New York, (ii) waives any objection which it may have
or hereafter to the venue of any such suit, action or proceeding, and (iii) irrevocably consents to the jurisdiction of the New
York Supreme Court, County of New York, and the United States District Court for the Southern District of New York in any such
suit, action or proceeding. Each of the Placement Agent and the Company further agrees to accept and acknowledge service of any
and all process which may be served in any such suit, action or proceeding in the New York Supreme Court, County of New York, or
in the United States District Court for the Southern District of New York and agrees that service of process upon the Company mailed
by certified mail to the Company’s address shall be deemed in every respect effective service of process upon the Company,
in any such suit, action or proceeding, and service of process upon the Placement Agent mailed by certified mail to the Placement
Agent’s address shall be deemed in every respect effective service process upon the Placement Agent, in any such suit, action
or proceeding. Notwithstanding any provision of this Agreement to the contrary, the Company agrees that neither the Placement Agent
nor its affiliates, and the respective officers, directors, employees, agents and representatives of the Placement Agent, its affiliates
and each other person, if any, controlling the Placement Agent or any of its affiliates, shall have any liability (whether direct
or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement and transaction described
herein except for any such liability for losses, claims, damages or liabilities incurred by us that are finally judicially determined
to have resulted from the bad faith or gross negligence of such individuals or entities. If either party shall commence an action
or proceeding to enforce any provision of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed
by the other party for its reasonable attorney’s fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding.

 

    	 	20	 

     

    

 

Section 13.          
General Provisions.

 

(a)       This
Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous
oral agreements, understandings and negotiations with respect to the subject matter hereof. This Agreement may be executed in two
or more counterparts, each one of which shall be an original, with the same effect as if the signatures thereto and hereto were
upon the same instrument. This Agreement may not be amended or modified unless in writing by all of the parties hereto, and no
condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit.
Section headings herein are for the convenience of the parties only and shall not affect the construction or interpretation of
this Agreement.

 

(b)       The
Company acknowledges that in connection with the offering of the Securities: (i) the Placement Agent has acted at arm’s length,
are not agents of, and owe no fiduciary duties to the Company or any other person, (ii) the Placement Agent owes the Company only
those duties and obligations set forth in this Agreement and (iii) the Placement Agent may have interests that differ from those
of the Company. The Company waives to the full extent permitted by applicable law any claims it may have against the Placement
Agent arising from an alleged breach of fiduciary duty in connection with the offering of the Securities

 

[The remainder of this page has been
intentionally left blank.]

 

    	 	21	 

     

    

  

If the foregoing is
in accordance with your understanding of our agreement, please sign below whereupon this instrument, along with all counterparts
hereof, shall become a binding agreement in accordance with its terms.

 

 

	 	Very truly yours,

	 	 	 
	 	AEGIS CAPITAL CORP.,
	 	 	 
	 	 	 
	 	By:	/s/ David W. Boral
	 	 	Name: David W. Boral
	 	 	Title: Co-Head of Investment Banking
	 	 
	 	 
	 	By:	/s/ Joseph T. Rallo
	 	 	Name: Joseph T. Rallo
	 	 	Title: Co-Head of Investment Banking

  

The foregoing Placement
Agency Agreement is hereby confirmed and accepted as of the date first above written.

  

	Medalist Diversified REIT, Inc.	 
	 	 
	 	 
	By:	/s/ Thomas E. Messier	 
	 	Name:  Thomas E. Messier	 
	 	Title:  Chief Executive Officer	 

 

 

	MEDALIST DIVERSIFIED HOLDINGS, L.P.
	 	By: Medalist Diversified REIT, Inc., its General Partner
	 	 	 
	 	By:	/s/ Thomas E. Messier	 
	 	Name: Thomas E. Messier	 
	 	Title: Chief Executive Officer	 

 

    	 	22Exhibit 1019

		

			Exhibit 10.19

		

		

			 

		

		
			FIRST AMENDMENT TO LEASE
		

		
			﻿
		

		
			This FIRST AMENDMENT TO LEASE (this “First Amendment”) is made and entered into as of May 28, 2019, by and between HAYWARD POINT EDEN I LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”), and PULSE BIOSCIENCES, INC., a Delaware corporation (“Tenant”).
		

		
			﻿
		

		
			r e c i t a l s :
		

		
			﻿
		

		
			A.    Landlord and Tenant are parties to the Lease dated January 26, 2017 (the “Lease”), whereby Tenant leases approximately 15,697 rentable square feet of space (“RSF”) (“Existing Premises”) in the building located at 3955 - 3957 Point Eden Way, Hayward, California 94545 (“Building”).
		

		
			﻿
		

		
			B.    Landlord and Tenant desire (i) to extend the Lease Term of the Lease, (ii) to expand the Existing Premises to include approximately 34,601 RSF (the “Expansion Premises”) in the Building adjacent to the Existing Premises, as shown on Exhibit A attached hereto, and (iii) to make other modifications to the Lease as hereinafter provided.
		

		
			﻿
		

		
			C.    The Expansion Premises will be added to the Premises in phases. The “Phase 1” portion of the Expansion Premises contains 13,280 RSF as designated on Exhibit A, and the “Phase 2” portion of the Expansion Premises contains 21,321 RSF, as designated on Exhibit A.
		

		
			﻿
		

		
			a g r e e m e n t :
		

		
			﻿
		

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

		
			﻿
		

		
			1.    Capitalized Terms.  All capitalized terms when used herein shall have the same meaning as is given such terms in the Lease unless expressly superseded by the terms of this First Amendment.
		

		
			﻿
		

		
			2.    Modification of Premises.  Effective as of the date Landlord delivers the Phase 1 portion of the Expansion Premises to Tenant “Ready for Occupancy” (the “Expansion Commencement Date”), Tenant shall lease from Landlord and Landlord shall lease to Tenant the Phase 1 portion of the Expansion Premises (which date is anticipated to occur in October, 2019). Effective as of the later of the Expansion Commencement Date or the date Landlord delivers the Phase 2 portion of the Premises to Tenant “Ready for Occupancy” (the “Phase 2 Commencement Date”), Tenant shall lease from Landlord and Landlord shall lease to Tenant the Phase 2 portion of the Expansion Premises. The addition of the Phase 1 portion of the Expansion Premises to the Existing Premises shall, effective as of the Expansion Premises Commencement Date, increase the size of the Premises to approximately 28,977 RSF. The addition of the Phase 2 portion of the Expansion Premises to the Existing Premises and the Phase 1 portion of the Expansion Premises shall, effective as of the Phase 2 Expansion Commencement Date, increase the size of the Premises to approximately 50,298 RSF. The Existing Premises and the Expansion Premises may hereinafter collectively be referred to as the “Premises”. The last two (2) sentences of Section 1.1.1 of the Lease shall apply as to the Expansion Premises. Landlord represents that the Expansion Premises are currently leased to ICE DATA SERVICES, INC. (the “Existing Tenant”) and Landlord has entered into an agreement with the Existing Tenant to terminate its lease and the Existing Tenant and any subtenants to vacate and surrender the Expansion Premises on or before May 31, 2019, as to the Phase 1 portion of the Expansion Premises and December 31, 2019, as to the Phase 2 portion of the Expansion Premises. Landlord shall use commercially reasonable efforts to enforce such agreement and deliver the phases of the Expansion Premises to Tenant as soon as practicable thereafter. Landlord shall deliver the Expansion Premises in the required condition promptly following the Existing Tenant’s vacation and surrender of each phase of the Expansion Premises and completion of any environmental closure required by Applicable Laws.
		

		

		

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						799463.04/WLA

					

						377097-00004/5-28-19/ejs/ejs

					

						 

					

						 

					

						 

					

					

						 

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

 

		
		

		
			3.    Lease Term; Option Term.  
		

		
			﻿
		

		
			3.1.    Expansion Term. Landlord and Tenant acknowledge that Tenant's lease of the Existing Premises is scheduled to expire on August  31, 2022, pursuant to the terms of the Lease. Notwithstanding anything to the contrary in the Lease, the Lease Term with respect to the entire Premises is hereby extended to expire on the date that is the earlier of (i) ten (10) years after the Expansion Commencement Date, and (ii) October 31, 2029 (the “Expansion Expiration Date”). The period of time commencing on the Expansion Commencement Date and continuing through the Expansion Expiration Date shall be referred to herein as the “Expansion Term.”    
		

		
			﻿
		

		
			3.2.    Option Term. The terms of Section 2.2 of the Lease shall continue to apply to the Premises, as expanded by the Expansion Premises, provided that (i) Tenant shall have two (2) option to extend the Lease Term, (ii) each “Option Term”, as defined in Section 2.2.1 of the Lease, shall be for a period of seven (7) years (and not five (5) years), and (iii) all references in such Section 2.2 to (a) the “initial Lease Term” shall be deemed to refer to the end of the Expansion Term or initial Option Term, as applicable, and (b) and “Lease Term” shall be deemed to refer to the Expansion Term or initial Option Term, as applicable.  
		

		
			﻿
		

		
			4.    Base Rent.  
		

		
			﻿
		

		
			4.1.    Existing Premises.  Notwithstanding anything to the contrary in the Lease as hereby amended, prior to July 1, 2022, Tenant shall continue to pay Base Rent for the Existing Premises in accordance with the terms of the Lease.  Commencing on July 1, 2022, continuing throughout the Expansion Term, Tenant shall pay to Landlord monthly installments of Base Rent for the Existing Premises in an amount equal to the Monthly Rental Rate per RSF as payable for the Expansion Premises (and with increases in such rate occurring at the same times as they occur for the Expansion Premises) multiplied by the RSF of the Existing Premises.
		

		
			﻿
		

		
			4.2.    Expansion Premises.  Commencing on the Expansion Commencement Date and continuing throughout the Expansion Term, Tenant shall pay to Landlord monthly installments of Base Rent for the Expansion Premises as set forth on the applicable chart (based on the occurrence of the Phase 2 Commencement Date) set forth on Schedule 1 attached hereto, and otherwise in accordance with the terms of the Lease. (Note: If the Phase 2 Commencement Date occurs after May, 2020, the rent chart will be appropriately adjusted to provide for one additional month of Base Rent calculated at $2.25 per RSF for each month after May, 2020, that the Phase 2 Commencement Date does not occur, thereby delaying the date upon which the Base Rent increases to $2.90 per RSF).
		

		
			﻿
		

		
			5.    Tenant's Share of Direct Expenses.  Prior to and continuing throughout the Expansion Term, Tenant shall pay Tenant's Share of all Direct Expenses which arise or accrue with respect to the Existing Premises during such period in accordance with the terms of the Lease. Commencing on the Expansion Commencement Date and continuing until the Phase 2 Commencement Date, Tenant shall pay Tenant's Share of all Direct Expenses which arise or accrue with respect to the Phase 1 Expansion Premises during such period in accordance with the terms of the Lease, and commencing on the Phase 2 Commencement Date and continuing through and including the Expansion Expiration Date, Tenant shall pay Tenant’s Share of all Direct Expenses which arise or accrue with respect to the Expansion Premises during such period in accordance with the terms of the Lease. Tenant’s Share with respect to the Phase 1 portion of the Expansion Premises is equal to 22.08%. Tenant’s Share with respect to the entire Expansion Premises (i.e., Phase 1 and Phase 2) is equal to 57.52%. Tenant’s Share with respect to the entire expanded Premises (i.e., the entire 50,298 RSF) is equal to 83.61%.
		

		
			﻿
		

		
			6.    Improvements.  Landlord shall construct the improvements in the Expansion Premises on a “turn-key” basis, pursuant to the terms of the Tenant Work Letter attached hereto as Exhibit B and deliver the Expansion Premises in the condition required in the last sentence of Section 2 of this First Amendment. Tenant acknowledges that it shall continue to accept the Existing Premises in its presently existing “as-is” condition, and Landlord shall not be obligated to provide or pay for any improvement work related to the improvement of the Existing Premises. Tenant also acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty regarding the condition of the Existing Premises, the Expansion Premises, or the Building or with respect to the suitability of any of the foregoing for the conduct of Tenant’s business in the Existing Premises or the Expansion Premises.
		

		
			﻿
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						-2-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			7.    Landlord Work.  In addition to the construction of the Tenant Improvements, Landlord shall perform the maintenance, repair, and replacement work set forth on Exhibit C to this First Amendment, at Landlord’s sole cost and expenses.  Tenant acknowledges that such work may be completed following the completion of the Tenant Improvements in the Expansion Premises and after the Expansion Commencement Date on or before the Phase 2 Commencement Date.
		

		
			﻿
		

		
			8.    Broker.  Landlord and Tenant hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this First Amendment other than CBRE, Inc. and Savills Studley (collectively, (the "Broker"), and that they know of no other real estate broker or agent who is entitled to a commission in connection with this First Amendment. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments, and costs and expenses (including, without limitation, reasonable attorneys' fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of the indemnifying party's dealings with any real estate broker or agent, other than the Broker. The terms of this Section 7 shall survive the expiration or earlier termination of the term of the Lease, as hereby amended.
		

		
			﻿
		

		
			9.    Increase in Security Deposit.  Effective as of the date hereof, the amount of the Security Deposit required to be provided by Tenant under the Lease shall be increased by $264,264.88, to be equal to $364,937.68. Tenant shall deliver the amount of such increase to Landlord in the form of a cash deposit or an unconditional, clean, irrevocable letter of credit (“L‐C”) concurrently with Tenant’s execution of this First Amendment. The terms set forth in Exhibit C shall apply to the Letter of Credit.
		

		
			﻿
		

		
			10.    Certified Access Specialist.  For purposes of Section 1938 of the California Civil Code, Landlord hereby discloses to Tenant, and Tenant hereby acknowledges, that the Expansion Premises have not undergone inspection by a Certified Access Specialist (CASp). As required by Section 1938(e) of the California Civil Code, Landlord hereby states as follows: “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law.  Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.” In furtherance of the foregoing, Landlord and Tenant hereby agree as follows:  (a) any CASp inspection requested by Tenant shall be conducted, at Tenant's sole cost and expense, by a CASp approved in advance by Landlord; and (b) pursuant to Article 24 of the Lease, but subject to Section 10.2 of the Lease, Tenant, at its sole cost and expense, shall be responsible for making any repairs within the Expansion Premises to correct violations of construction-related accessibility standards; and if anything done by or for Tenant in its use or occupancy of the Expansion Premises shall require any repairs to the Building (outside the Expansion Premises) to correct violations of construction-related accessibility standards, then Tenant shall reimburse Landlord upon demand, as Additional Rent, for the cost to Landlord of performing such improvements or repairs.
		

		
			﻿
		

		
			11.    No Further Modification; Conflict.  Except as set forth in this First Amendment, all of the terms and provisions of the Lease shall apply with respect to the Expansion Premises and shall remain unmodified and in full force and effect.  In the event of a conflict between the Lease and this First Amendment, the terms of this First Amendment shall prevail.
		

		
			﻿
		

		
			12.    No Deed of Trust.  Landlord hereby represents and warrants to Tenant that the Project is not currently subject to any ground lease, or to the lien of any mortgage or deed of trust.
		

		
			﻿
		

		
			[SIGNATURES APPEAR ON FOLLOWING PAGE]
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						-3-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			IN WITNESS WHEREOF, this First Amendment has been executed as of the day and year first above written.  
		

		
			﻿
		

			
					
						﻿

					
						 

					
						 

					
						 

					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						“LANDLORD”

					
					
						 

					
					
						“TENANT”

				
	
					
						HAYWARD POINT EDEN I LIMTED PARTNERSHIP

					
					
						 

					
					
						PULSE BIOSCIENCES, INC.,

				
	
					
						a Delaware limited partnership

					
					
						 

					
					
						a Delaware corporation

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By

					
					
						/s/ Scott Bohn

					
					
						 

					
					
						By

					
					
						/s/ Brian B. Dow

				
	
					
						Name:

					
					
						Scott Bohn

					
					
						 

					
					
						Name:

					
					
						Brian B. Dow

				
	
					
						Its

					
					
						Senior Vice President

					
					
						 

					
					
						Its

					
					
						SVP & CFO

				

		
			﻿
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						-4-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		

			Exhibit 10.19

		

		

			 

		

		SCHEDULE 1 TO FIRST AMENDMENT
		

		
			﻿
		

		
			BASE RENT PAYMENTS
		

		
			﻿
		

		
			Note: “Lease Months” as set forth in the charts below are the months of the Expansion Term following the Expansion Commencement Date (i.e. Phase 1 Commencement Date).
		

		
			﻿
		

		
			
		

		
			Phase 1 Abatement Phase 2 Abatement *If Phase 2 Commences in March, 2020 Lease Month Date Rate RSF Base Rent 1 Nov-19 $0.00 13,280 $0 2 Dec-19 $0.00 13,280 $0 3 Jan-20 $0.00 13,280 $0 4 Feb-20 $0.00 13,280 $0 5 Mar 20 $2.25 13,280 $29,880 6 Apr-20 $2.25 13,280 $29,880 7 May-20 $2.25 13,280 $29,880 8 Jun 20 $2.25 13,280 $29,880 9 Jul-20 $2.25 34,601 $77,852 10 Aug-20 $2.25 34,601 $77,852 11 Sep-20 $2.25 34,601 $77,852 12 Oct-20 $2.25 34,601 $77,852 13 Nov-20 $2.25 34,601 $77,852 14 Dec-20 $2.25 34,601 $77,852 15 Jan-21 $2.25 34,601 $77,852 16 Feb-21 $2.25 34,601 $77,852 17 Mar-21 $2.25 34,601 $77,852 18 Apr-21 $2.25 34,601 $77,852 19 May-21 $2.90 34,601 $100,343 20 Jun-21 $2.90 34,601 $100,343 21 Jul-21 $2.90 34,601 $100,343 22 Aug-21 $2.90 34,601 $100,343 23 Sep-21 $2.90 34,601 $100,343 24 Oct-21 $2.90 34,601 $100,343 25 Nov-21 $2.90 34,601 $100,343 26 Dec-21 $2.90 34,601 $100,343 27 Jan-22 $2.90 34,601 $100,343 28 Feb-22 $2.90 34,601 $100,343 29 Mar-22 $2.90 34,601 $100,343 30 Ap-22 $2.90 34,601 $100,343 31 May-22 $3.00 34,601 $103,855 32 Jun-22 $3.00 34,601 $103,855 33 Jul-22 $3.00 50,298 $150,894 34 Aug-22 $3.00 50,298 $150,894 35 Sep-22 $3.00 50,298 $150,894 36 Oct-22 $3.00 50,298 $150,894 37 Nov-22 $3.00 50,298 $150,894 
		

		 

		

			 

		

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						799463.04/WLA

					

						377097-00004/5-28-19/ejs/ejs

					

						 

					

						 

					

						 

					

					

						 

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

 

		
		

		
			
		

		
			38 Dec-22 $3.00 50,298 $150,894 39 Jan-23 $3.00 50,298 $150,894 40 Feb-23 $3.00 50,298 $150,894 41 Mar-23 $3.00 50,298 $150,894 42 Apr-23 $3.00 50,298 $150,894 43 May-23 $3.11 50,298 $156,175 44 Jun-23 $3.11 50,298 $156,175 45 Jul-23 $3.11 50,298 $156,175 46 Aug-23 $3.11 50,298 $156,175 47 Sep-23 $3.11 50,298 $156,175 48 Oct-23 $3.11 50,298 $156,175 49 Nov-23 $3.11 50,298 $156,175 50 Dec-23 $3.11 50,298 $156,175 51 $3.11 50,298 $156,175 51 Jan-24 $3.11 50,298 $156,175 52 Feb-24 $3.11 50,298 $156,175 53 Mar-24 $3.11 50,298 $156,175 54 $3.11 50,298 $156,175 55 May-24 $3.21 50,298 $161,641 56 Jun-24 $3.21 50,298 $161,641 57 Jul-24 $3.21 50,298 $161,641 58 Aug-24 $3.21 50,298 $161,641 59 Sep-24 $3.21 50,298 $161,641 60 Oct-24 $3.21 50,298 $161,641 61 Nov-24 $3.21 50,298 $161,641 62 Dec-24 $3.21 50,298 $161,641 63 Jan-25 $3.21 50,298 $161,641 64 Feb-25 $3.21 50,298 $161,641 65 Mar-25 $3.21 50,298 $161,641 66 Apr-25 $3.21 50,298 $161,641 67 May-25 $3.33 50,298 $167,299 68 Jun-25 $3.33 50,298 $167,299 69 Jul-25 $3.33 50,298 $167,299 70 Aug-25 $3.33 50,298 $167,299 71 Sep-25 $3.33 50,298 $167,299 72 Oct-25 $3.33 50,298 $167,299 73 Nov-25 $3.33 50,298 $167,299 74 Dec-25 $3.33 50,298 $167,299 75 Jan-26 $3.33 50,298 $167,299 76 Feb-26 $3.33 50,298 $167,299 78 Apr-26 $3.33 50,298 $167,299 79 May-26 $3.44 50,298 $173,154 80 Jun-26 $3.44 50,298 $173,154 81 Jul-26 $3.44 50,298 $173,154 82 Aug-26 $3.44 50,298 $173,154 83 Sep-26 $3.44 50,298 $173,154 84 Oct-26 $3.44 50,298 $173,154
		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						2

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		
			85 Nov-26 $3.44 50,298 $173,154 86 Dec-26 $3.44 50,298 $173,154 87 Jan-27 $3.44 50,298 $173,154 88 Feb-27 $3.44 50,298 $173,154 89 Mar-27 $3.44 50,298 $173,154 90 Apr-27 $3.44 50,298 $173,154 91 May-27 $3.56 50,298 $179,215 92 Jun-27 $3.56 50,298 $179,215 93 Jul-27 $3.56 50,298 $179,215 94 Aug-27 $3.56 50,298 $179,215 95 Sep-27 $3.56 50,298 $179,215 96 Oct-27 $3.56 50,298 $179,215 97 Nov-27 $3.56 50,298 $179,215 98 Dec-27 $3.56 50,298 $179,215 99 Jan-28 $3.56 50,298 $179,215 100 Feb-28 $3.56 50,298 $179,215 101 Mar-28 $3.56 50,298 $179,215 102 Apr-28 $3.56 50,298 $179,215 103 May-28 $3.69 50,298 $185,487 104 Jun-28 $3.69 50,298 $185,487 105 Jul-28 $3.69 50,298 $185,487 106 Aug-28 $3.69 50,298 $185,487 107 Sep-28 $3.69 50,298 $185,487 108 Oct-28 $3.69 50,298 $185,487 109 Nov-28 $3.69 50,298 $185,487 110 Dec-28 $3.69 50,298 $185,487 111 Jan-29 $3.69 50,298 $185,487 112 Feb-29 $3.69 50,298 $185,487 113 Mar-29 $3.69 50,298 $185,487 114 Apr-29 $3.69 50,298 $185,487 115 May-29 $3.82 50,298 $191,979 116 Jun-29 $3.82 50,298 $191,979 117 Jul-29 $3.82 50,298 $191,979 118 Aug-29 $3.82 50,298 $191,979 119 Sep-29 $3.82 50,298 $191,979 120 Oct-29 $3.82 50,298 $191,979
		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						3

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		
			Additional Months @ 13,280 * $2.25 * If Phase 2 Comences in April, 2020 Lease Month Date Rate RSF Base Rent 1 Nov-19 $0.00 13,280 $0 2 Dec-19 $0.00 13,280 $0 3 Jan-20 $0.00 13,280 $0 4 Feb-20 $0.00 13,280 $0 5 Mar-20 $2.25 13,280 $29,880 6 Apr-20 $2.25 13,280 $29,880 7 May-20 $2.25 13,280 $29,880 8 Jun-20 $2.25 13,280 $29,880 9 Jul-20 $2.25 13,280 $29,880 10 Aug-20 $2.25 34,601 $77,852 11 Sep-20 $2.25 34,601 $77,852 12 Oct-20 $2.25 34,601 $77,852 13 Nov-20 $2.25 34,601 $77,852 14 Dec-20 $2.25 34,601 $77,852 15 Jan-21 $2.25 34,601 $77,852 16 Feb-21 $2.25 34,601 $77,852 17 Mar-21 $2.25 34,601 $77,852 18 Apr-21 $2.25 34,601 $77,852 19 May-21 $2.25 34,601 $77,852 20 Jun-21 $2.90 34,601 $100,343 21 Jul-21 $2.90 34,601 $100,343 22 Aug-21 $2.90 34,601 $100,343 23 Sep-21 $2.90 34,601 $100,343 24 Oct-21 $2.90 34,601 $100,343 25 Nov-21 $2.90 34,601 $100,343 26 Dec-21 $2.90 34,601 $100,343 27 Jan-22 $2.90 34,601 $100,343 28 Feb-22 $2.90 34,601 $100,343 29 Mar-22 $2.90 34,601 $100,343 30 Apr-22 $2.90 34,601 $100,343 31 May-22 $2.90 34,601 $100,343 32 Jun-22 $3.00 34,601 $103,855 33 Jul-22 $3.00 50,298 $150,969 34 Aug-22 $3.00 50,298 $150,969 35 Sep-22 $3.00 50,298 $150,969 36 Oct-22 $3.00 50,298 $150,969 37 Nov-22 $3.00 50,298 $150,969
		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						4

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		
			38 Dec-22 $3.00 50,298 $150,969 39 Jan-23 $3.00 50,298 $150,969 40 Feb-23 $3.00 50,298 $150,969 41 Mar-23 $3.00 50,298 $150,969 42 Apr-23 $3.00 50,298 $150,969 43 May-23 $3.00 50,298 $150,969 44 Jun-23 $3.11 50,298 $156,253 45 Jul-23 $3.11 50,298 $156,253 46 Aug-23 $3.11 50,298 $156,253 47 Sep-23 $3.11 50,298 $156,253 48 Oct-23 $3.11 50,298 $156,253 49 Nov-23 $3.11 50,298 $156,253 50 Dec-23 $3.11 50,298 $156,253 51 Jan-24 $3.11 50,298 $156,253 52 Feb-24 $3.11 50,298 $156,253 53 Mar-24 $3.11 50,298 $156,253 54 Apr-24 $3.11 50,298 $156,253 55 May-24 $3.11 50,298 $156,253 56 Jun-24 $3.22 50,298 $161,722 57 Jul-24 $3.22 50,298 $161,722 58 Aug-24 $3.22 50,298 $161,722 59 Sep-24 $3.22 50,298 $161,722 60 Oct-24 $3.22 50,298 $161,722 61 Nov-24 $3.22 50,298 $161,722 62 Dec-24 $3.22 50,298 $161,722 63 Jan-25 $3.22 50,298 $161,722 64 Feb-25 $3.22 50,298 $161,722 65 Mar-25 $3.22 50,298 $161,722 66 Apr-25 $3.22 50,298 $161,722 67 May-25 $3.22 50,298 $161,722 68 Jun-25 $3.33 50,298 $167,383 69 Jul-25 $3.33 50,298 $167,383 70 Aug-25 $3.33 50,298 $167,383 71 Sep-25 $3.33 50,298 $167,383 72 Oct-25 $3.33 50,298 $167,383 73 Nov-25 $3.33 50,298 $167,383 74 Dec-25 $3.33 50,298 $167,383 75 Jan-26 $3.33 50,298 $167,383 76 Feb-26 $3.33 50,298 $167,383 77 Mar-26 $3.33 50,298 $167,383 78 Apr-26 $3.33 50,298 $167,383 79 May-26 $3.33 50,298 $167,383 80 Jun-26 $3.44 50,298 $173,241 81 Jul-26 $3.44 50,298 $173,241 82 Aug-26 $3.44 50,298 $173,241 83 Sep-26 $3.44 50,298 $173,241 84 Oct-26 $3.44 50,298 $173,241
		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						5

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		
			85 Nov-26 $3.44 50,298 $173,241 86 Dec-26 $3.44 50,298 $173,241 87 Jan-27 $3.44 50,298 $173,241 88 Feb-27 $3.44 50,298 $173,241 89 Mar-27 $3.44 50,298 $173,241 90 Apr-27 $3.44 50,298 $173,241 91 May-27 $3.44 50,298 $173,241 92 Jun-27 $3.56 50,298 $179,304 93 Jul-27 $3.56 50,298 $179,304 94 Aug-27 $3.56 50,298 $179,304 95 Sep-27 $3.56 50,298 $179,304 96 Oct-27 $3.56 50,298 $179,304 97 Nov-27 $3.56 50,298 $179,304 98 Dec-27 $3.56 50,298 $179,304 99 Jan-28 $3.56 50,298 $179,304 100 Feb-28 $3.56 50,298 $179,304 101 Mar-28 $3.56 50,298 $179,304 102 Apr-28 $3.56 50,298 $179,304 103 May-28 $3.56 50,298 $179,304 104 Jun-28 $3.69 50,298 $185,580 105 Jul-28 $3.69 50,298 $185,580 106 Aug-28 $3.69 50,298 $185,580 107 Sep-28 $3.69 50,298 $185,580 108 Oct-28 $3.69 50,298 $185,580 109 Nov-28 $3.69 50,298 $185,580 110 Dec-28 $3.69 50,298 $185,580 111 Jan-29 $3.69 50,298 $185,580 112 Feb-29 $3.69 50,298 $185,580 113 Mar-29 $3.69 50,298 $185,580 114 Apr-29 $3.69 50,298 $185,580 115 May-29 $3.69 50,298 $185,580 116 Jun-29 $3.82 50,298 $192,075 117 Jul-29 $3.82 50,298 $192,075 118 Aug-29 $3.82 50,298 $192,075 119 Sep-29 $3.82 50,298 $192,075 120 Oct-29 $3.82 50,298 $192,075
		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						6

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		
			*If Phase 2 Comences May, 2020 Lease Month Date Rate RSF Base Rent 1 Nov-19 $0.00 13,280 $0 2 Dec-19 $0.00 13,280 $0 3 Jan-20 $0.00 13,280 $0 4 Feb-20 $0.00 13,280 $0 5 Mar-20 $2.25 13,280 $29,880 6 Apr-20 $2.25 13,280 $29,880 7 May-20 $2.25 13,280 $29,880 8 Jun-20 $2.25 13,280 $29,880 9 Jul-20 $2.25 13,280 $29,880 10-Aug-20 $2.25 13,280 $29,880 11 Sep-20 $2.25 34,601 $77,852 12 Oct-20 $2.25 34,601 $77,852 13 Nov-20 $2.25 34,601 $77,852 14 Dec-20 $2.25 34,601 $77,852 15 Jan-21 $2.25 34,601 $77,852 16 Feb-21 $2.25 34,601 $77,852 17 Mar-21 $2.25 34,601 $77,852 18 Apr-21 $2.25 34,601 $77,852 19 May-21 $2.25 34,601 $77,852 20 Jun-21 $2.25 34,601 $77,852 21 Jul-21 $2.90 34,601 $100,343 22 Aug-21 $2.90 34,601 $100,343 23 Sep-21 $2.90 34,601 $100,343 24 Oct-21 $2.90 34,601 $100,343 25 Nov-21 $2.90 34,601 $100,343 26 Dec-21 $2.90 34,601 $100,343 27 Ja-22 $2.90 34,601 $100,343 28 Feb-22 $2.90 34,601 $100,343 29 Mar-22 $2.90 34,601 $100,343 30 Apr-22 $2.90 34,601 $100,343 31 May-22 $2.90 34,601 $100,343 32 Jun-22 $2.90 34,601 $100,343 33 Jul-22 $3.00 50,298 $150,969 34 Aug-22 $3.00 50,298 $150,969 35 Sep-22 $3.00 50,298 $150,969 36 Oct-22 $3.00 50,298 $150,969 37 Nov-22 $3.00 50,298 $150,969 38 Dec-22 $3.00 50,298 $150,969
		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						7

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		
			39 Jan-23 $3.00 50,298 $150,969 40 Feb-23 $3.00 50,298 $150,969 41 Mar-23 $3.00 50,298 $150,969 42 Apr-23 $3.00 50,298 $150,969 43 May-23 $3.00 50,298 $150,969 44 Jun-23 $3.00 50,298 $150,969 45 Jul-23 $3.11 50,298 $156,253 46 Aug-23 $3.11 50,298 $156,253 47 Sep-23 $3.11 50,298 $156,253 48 Oct-23 $3.11 50,298 $156,253 49 Nov-23 $3.11 50,298 $156,253 50 Dec-23 $3.11 50,298 $156,253 51 Jan-24 $3.11 50,298 $156,253 52 Feb-24 $3.11 50,298 $156,253 53 Mar-24 $3.11 50,298 $156,253 54 Apr-24 $3.11 50,298 $156,253 55 May-24 $3.11 50,298 $156,253 56 Jun-24 $3.11 50,298 $156,253 57 Jul-24 $3.22 50,298 $161,722 58 Aug-24 $3.22 50,298 $161,722 59 Sep-24 $3.22 50,298 $161,722 60 Oct-24 $3.22 50,298 $161,722 61 Nov-24 $3.22 50,298 $161,722 62 Dec-24 $3.22 50,298 $161,722 63 Jan-25 $3.22 50,298 $161,722 64 Feb-25 $3.22 50,298 $161,722 65 Mar-25 $3.22 50,298 $161,722 66 Apr-25 $3.22 50,298 $161,722 67 May-25 $3.22 50,298 $161,722 68 Jun-25 $3.22 50,298 $161,722 69 Jul-25 $3.33 50,298 $167,383 70 Aug-25 $3.33 50,298 $167,383 71 Sep-25 $3.33 50,298 $167,383 72 Oct-25 $3.33 50,298 $167,383 73 Nov-25 $3.33 50,298 $167,383 74-Dec-25 $3.33 50,298 $167,383 75 Jan-26 $3.33 50,298 $167,383 76 Feb-26 $3.33 50,298 $167,383 77 Mar-26 $3.33 50,298 $167,383 78 Apr-26 $3.33 50,298 $167,383 79 May-26 $3.33 50,298 $167,383 80 Jun-26 $3.33 50,298 $167,383 81 Jul-26 $3.44 50,298 $173,241 82 Aug-26 $3.44 50,298 $173,241 83 Sep-26 $3.44 50,298 $173,241 84 Oct-26 $3.44 50,298 $173,241 85 Nov-26 $3.44 50,298 $173,241 
		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						8

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		
			86 Dec-26 $3.44 50,298 $173,241 87 Jan-27 $3.44 50,298 $173,241 88 Feb-27 $3.44 50,298 $173,241 89 Mar-27 $3.44 50,298 $173,241 90 Apr-27 $3.44 50,298 $173,241 91 May-27 $3.44 50,298 $173,241 92 Jun-27 $3.44 50,298 $173,241 93 Jul-27 $3.56 50,298 $179,304 94 Aug-27 $3.56 50,298 $179,304 95 Sep-27 $3.56 50,298 $179,304 96 Oct-27 $3.56 50,298 $179,304 97 Nov-27 $3.56 50,298 $179,304 98 Dec-27 $3.56 50,298 $179,304 99 Jan-28 $3.56 50,298 $179,30 100-Feb-28 $3.56 50,298 $179,3044 101 Mar-28 $3.56 50,298 $179,304 102 Apr-28 $3.56 50,298 $179,304 103 May-28 $3.56 50,298 $179,304 104 Jun-28 $3.56 50,298 $179,304 105 Jul-28 $3.69 50,298 $185,580 106 Aug-28 $3.69 50,298 $185,580 107 Sep-28 $3.69 50,298 $185,580 108 Oct-28 $3.69 50,298 $185,580 109 Nov-28 $3.69 50,298 $185,580 110 Dec-28 $3.69 50,298 $185,580 111 Jan-29 $3.69 50,298 $185,580 112 Feb-29 $3.69 50,298 $185,580 113 Mar-29 $3.69 50,298 $185,580 114 Apr-29 $3.69 50,298 $185,580 115 May-29 $3.69 50,298 $185,580 116 Jun-29 $3.69 50,298 $185,580 117 Jul-29 $3.82 50,298 $192,075 118 Aug-29 $3.82 50,298 $192,075 119 Sep-29 $3.82 50,298 $192,075 120 Oct-29 $3.82 50,298 $192,075
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						9

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		EXHIBIT A
		

		
			﻿
		

		
			OUTLINE OF EXPANSION PREMISES
		

		
			﻿
		

		
			Phase 1 Expansion Premises shown in blue.
		

		
			﻿
		

		
			Phase 2 Expansion Premises shown in white.
		

		
			﻿
		

		
			
		

		
			﻿
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						EXHIBIT A

					

						-1-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		EXHIBIT B
		

		
			﻿
		

		
			TENANT WORK LETTER
		

		
			﻿
		

		
			SECTION 1
		

		
			﻿
		

		
			TENANT IMPROVEMENTS
		

		
			﻿
		

		
			Using Building standard materials, components and finishes as described in Schedule 2 hereof, Landlord shall cause the installation and/or construction of those certain items identified on the "Approved Space Plan," and “Scope of Work” defined below (the "Tenant Improvements") by Landmark Builders.  The term "Approved Space Plan" shall mean that plan prepared by DES Architects Engineers, as Project No. 9596.702, dated as of 3.21.19, approved by Landlord and Tenant, a reduced copy of which Approved Space Plan is attached hereto as Schedule 1.  The term “Scope of Work” shall mean the TI Scope List attached hereto as Schedule 2.  Immediately upon the full execution and delivery of this Lease, Tenant shall cooperate in good faith with Landlord’s architects and engineers to supply the necessary information, if any, requested by Landlord’s architects and engineers required to allow the Landlord’s architects and engineers to complete any additional architectural and engineering drawings for the Expansion Premises in a form which is complete to allow subcontractors to bid on the work and to obtain all applicable permits and in a manner consistent with, and which are a logical extension of, the Approved Space Plan.  Such drawings shall be subject to Tenant’s reasonable approval, which must be provided or withheld within five (5) business days of receipt thereof by Tenant.  Upon approval, such plans may be referred to herein as the "Approved Working Drawings".  Tenant shall make no changes, additions or modifications to the Tenant Improvements or the Approved Space Plan without the prior written consent of Landlord, which consent shall be provided or withheld by Landlord as described in Section 2(d)(ii) of Exhibit B of the Lease, which shall apply to this Exhibit B.  Notwithstanding the foregoing or any contrary provision of this First Amendment, all Tenant Improvements shall be deemed Landlord's property under the terms of this First Amendment.  Notwithstanding any provision to the contrary set forth in this First Amendment or this Tenant Work Letter, Tenant shall be solely responsible, at Tenant's sole cost and expense, for acquisition and installation of all data and telephone cabling, furniture, fixtures and equipment for the Premises.
		

		
			﻿
		

		
			Tenant acknowledges that the Tenant Improvements are planned to be constructed in phases, with all of the improvements in the Phase 1 portion of the Expansion Premises and the demising wall between the Phase 1 and Phase 2 portions of the Expansion Premises to be completed prior to the Expansion Commencement Date and all of the remainder of the improvements to be completed prior to the Phase 2 Commencement Date.
		

		
			﻿
		

		
			Landlord shall construct the Tenant Improvements in accordance with the terms of the first three sentences of Section 2(c) of Exhibit B of the Lease, which shall apply to this Exhibit B (except the reference to the “Tenant Improvement Allowance”).
		

		
			﻿
		

		
			SECTION 2

OTHER TENANT IMPROVEMENTS
		

		
			﻿
		

		
			Notwithstanding anything to the contrary contained herein, Tenant shall be responsible for the cost of any items not identified on the Approved Space Plan or the Scope of Work, or a logical extension of, and consistent with, the Approved Space Plan.  Any such costs shall be paid within ten (10) days after invoice. 
		

		
			﻿
		

		
			SECTION 3

CONTRACTOR'S WARRANTIES AND GUARANTIES
		

		
			﻿
		

		
			Landlord hereby assigns to Tenant all warranties and guaranties by the contractor who constructs the Tenant Improvements (the "Contractor") relating to the Tenant Improvements.
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						EXHIBIT B

					

						-1-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			SECTION 4

TENANT'S AGENTS
		

		
			﻿
		

		
			Tenant hereby protects, defends, indemnifies and holds Landlord harmless for any loss, claims, damages or delays arising from the actions of Tenant and/or any separate contractors, subcontractors or consultants of Tenant on the Expansion Premises.  
		

		
			﻿
		

		
			SECTION 5

COMPLETION OF THE TENANT IMPROVEMENTS;
		

		
			
LEASE COMMENCEMENT DATE
		

		
			﻿
		

		
			5.1    Ready for Occupancy.  The Expansion Premises (or any phase thereof) shall be deemed "Ready for Occupancy" upon the Substantial Completion of the Tenant Improvements in such phase of the Expansion Premises and the satisfaction of the other requirements in Section 3(a) of Exhibit B of the Lease.  The provisions of Section 3(b) of Exhibit B of the Lease will apply to this Exhibit B.  For purposes of this First Amendment, "Substantial Completion" of the Tenant Improvements in the Expansion Premises shall occur upon the completion of construction of the Tenant Improvements pursuant to the Approved Working Drawings, with the exception of any punch list items, and any tenant fixtures, work stations, built-in furniture or equipment to be installed by Tenant under the supervision of the Contractor.
		

		
			﻿
		

		
			5.2    Delay of the Substantial Completion of the Expansion Premises.  Except as provided in this Section 5.2, the applicable Commencement Date shall occur as set forth in Section 2 of this First Amendment and Section 5.1, above.  If there shall be a delay or there are delays in the Substantial Completion of the Tenant Improvements or in the occurrence of any of the other conditions precedent to the applicable Commencement Date, as set forth in Section 2 of this First Amendment, due to a Tenant Delay, as defined in Section 1(j) of Exhibit B of the Lease, which shall be applicable to this Exhibit B, then, notwithstanding anything to the contrary set forth in this First Amendment, or this Tenant Work Letter and regardless of the actual date of the Substantial Completion of the Tenant Improvements, the date of the Substantial Completion of the Tenant Improvements shall be deemed to be the date the Substantial Completion of the Tenant Improvements would have occurred if no Tenant Delay or Delays, as set forth above, had occurred.
		

		
			﻿
		

		
			SECTION 6

MISCELLANEOUS
		

		
			﻿
		

		
			6.1    Tenant's Entry Into the Expansion Premises Prior to Substantial Completion.  Provided that Tenant and its agents do not interfere with the construction of the Tenant Improvements, Landlord shall provide Tenant with reasonable access to the applicable phase of the Expansion Premises at least thirty (30) days prior to the Substantial Completion of the Tenant Improvements therein without payment of Rent with respect thereto for the purpose of Tenant installing equipment or fixtures (including, but not limited to Tenant's data and telephone equipment) in the applicable phase of the Expansion Premises, preparing such phase for occupancy and conducting “move-in” activities, and access any time after execution of this First Amendment for site visits needed for planning (as reasonably scheduled with Landlord).  Prior to Tenant's entry into the applicable phase of the Expansion Premises as permitted by the terms of this Section 6.1, Tenant shall submit a schedule to Landlord and Contractor, for their approval, which schedule shall detail the timing and purpose of Tenant's entry and Tenant shall deliver to Landlord the policies or certificates evidencing Tenant's insurance as required under the terms of Article 10 of the Lease.  Tenant shall hold Landlord harmless from and indemnify, protect and defend Landlord against any loss or damage to the Building or Premises and against injury to any persons caused by Tenant's actions pursuant to this Section 6.1.
		

		
			﻿
		

		
			6.2    Time of the Essence in This Tenant Work Letter.  Unless otherwise indicated, all references herein to a "number of days" shall mean and refer to calendar days.
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						EXHIBIT B

					

						-2-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			6.3    No Restoration.  Landlord hereby acknowledges that Tenant shall not be required to restore any portion of the Tenant Improvements constructed in the Expansion Premises that are specifically set forth on the Approved Space Plan.
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						EXHIBIT B

					

						-3-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		SCHEDULE 1 TO EXHIBIT B
		

		
			﻿
		

		
			APPROVED SPACE PLAN
		

		
			
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						SCHEDULE 1 TO EXHIBIT B

					

						-1-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						SCHEDULE 1 TO EXHIBIT B

					

						-2-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		SCHEDULE 2 TO EXHIBIT B
		

		
			﻿
		

		
			SCOPE OF WORK
		

		
			
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						SCHEDULE 2 TO EXHIBIT B

					

						-1-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						SCHEDULE 2 TO EXHIBIT B

					

						-2-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						SCHEDULE 2 TO EXHIBIT B

					

						-3-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						SCHEDULE 2 TO EXHIBIT B

					

						-4-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			
		

		
			﻿
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						 

					

					

						 

					

						 

					

						 

				
	

					

						 

					

					

						SCHEDULE 2 TO EXHIBIT B

					

						-5-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		

			 

		

		EXHIBIT C
		

		
			﻿
		

		
			L-C PROVISIONS
		

		
			﻿
		

		
			1.1    The L‐C shall be issued by a money-center, solvent and nationally recognized bank (a bank which accepts deposits, maintains accounts, has a local San Francisco Bay Area office which will negotiate a letter of credit, and whose deposits are insured by the FDIC) reasonably acceptable to Landlord (such approved, issuing bank being referred to herein as the "Bank"), which Bank must have a rating from Standard and Poor’s Corporation of A- or better (or any equivalent rating thereto from any successor or substitute rating service selected by Lessor) and a letter of credit issuer rating from Moody’s Investor Service of A3 or better (or any equivalent rating thereto from any successor rating agency thereto) (collectively, the “Bank’s Credit Rating Threshold”), and which L‐C shall be in the form of Schedule 1, attached hereto.  Tenant shall pay all expenses, points and/or fees incurred by Tenant in obtaining the L‐C.  Landlord hereby approves of Silicon Valley Bank as the Bank.  The L‐C shall (i) be "callable" at sight, irrevocable and unconditional, (ii) be maintained in effect, whether through renewal or extension, for the period commencing on the date of this Lease and continuing until the date (the "L‐C Expiration Date") that is no less than sixty (60) days after the expiration of the Lease Term as the same may be extended, and Tenant shall deliver a new L‐C or certificate of renewal or extension to Landlord at least thirty (30) days prior to the expiration of the L‐C then held by Landlord, without any action whatsoever on the part of Landlord, (iii) be fully assignable by Landlord, its successors and assigns, (iv) permit partial draws and multiple presentations and drawings, and (v) be otherwise subject to the Uniform Customs and Practices for Documentary Credits (1993-Rev), International Chamber of Commerce Publication #500, or the International Standby Practices-ISP 98, International Chamber of Commerce Publication #590.  Landlord, or its then managing agent, shall have the right to draw down an amount up to the face amount of the L‐C if any of the following shall have occurred or be applicable:  (A) such amount is due to Landlord under the terms and conditions of this Lease, and has not been paid within applicable notice and cure periods, or (B) Tenant has filed a voluntary petition under the U. S. Bankruptcy Code or any state bankruptcy code (collectively, "Bankruptcy Code"), or (C) an involuntary petition has been filed against Tenant under the Bankruptcy Code that is not dismissed within thirty (30) days, or (D) the Bank has notified Landlord that the L‐C will not be renewed or extended through the L‐C Expiration Date, and Tenant has not provided a replacement L‐C that satisfies the requirements of this Lease at least thirty (30) days prior to such expiration, or (E) Tenant is placed into receivership or conservatorship, or becomes subject to similar proceedings under Federal or State law, or (F) Tenant executes an assignment for the benefit of creditors, or (G) if (1) any of the Bank's (other than Silicon Valley Bank) Fitch Ratings (or other comparable ratings to the extent the Fitch Ratings are no longer available) have been reduced below the Bank's Credit Rating Threshold, or (2) there is otherwise a material adverse change in the financial condition of the Bank (other than Silicon Valley Bank), and Tenant has failed to provide Landlord with a replacement letter of credit, conforming in all respects to the requirements of this Article 21 (including, but not limited to, the requirements placed on the issuing Bank more particularly set forth in this Section 21.1 above), in the amount of the applicable L‐C Amount, within ten (10) days following Landlord’s written demand therefor (with no other notice or cure or grace period being applicable thereto, notwithstanding anything in this Lease to the contrary) (each of the foregoing being an "L‐C Draw Event").  The L‐C shall be honored by the Bank regardless of whether Tenant disputes Landlord's right to draw upon the L‐C.  In addition, in the event the Bank is placed into receivership or conservatorship by the Federal Deposit Insurance Corporation or any successor or similar entity, then, effective as of the date such receivership or conservatorship occurs, said L‐C shall be deemed to fail to meet the requirements of this Article 21, and, within ten (10) days following Landlord's notice to Tenant of such receivership or conservatorship (the "L‐C FDIC Replacement Notice"), Tenant shall replace such L‐C with a substitute letter of credit from a different issuer (which issuer shall meet or exceed the Bank's Credit Rating Threshold and shall otherwise be acceptable to Landlord in its reasonable discretion) and that complies in all respects with the requirements of this Article 21.  If Tenant fails to replace such L‐C with such conforming, substitute letter of credit pursuant to the terms and conditions of this Section 21.1, then, notwithstanding anything in this Lease to the contrary, Landlord shall have the right to declare Tenant in default of this Lease for which there shall be no notice or grace or cure periods being applicable thereto (other than the aforesaid ten (10) day period).  Tenant shall be responsible for the payment of any and all Tenant's and Bank's costs incurred with the review of any replacement L‐C, which replacement is required pursuant to this Section or is otherwise requested by Tenant.
		

		
			﻿
		

		
			1.2    Application of L‐C.  Tenant hereby acknowledges and agrees that Landlord is entering into this Lease in material reliance upon the ability of Landlord to draw upon the L‐C upon the occurrence of any L‐C Draw Event.  In the event of any L‐C Draw Event, Landlord may, but without obligation to do so, and without notice to Tenant (except in connection with an L-C Draw Event under Section 21.1(G) above), draw upon the L‐C, in part or in whole, in the amount necessary to cure any such L-C Draw Event and/or to compensate Landlord for any and all damages of any kind or nature sustained or which Landlord reasonably estimates that it will sustain resulting from 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						EXHIBIT C

					

						-1-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			Tenant's breach or default of the Lease or other L-C Draw Event and/or to compensate Landlord for any and all damages arising out of, or incurred in connection with, the termination of this Lease, including, without limitation, those specifically identified in Section 1951.2 of the California Civil Code.  The use, application or retention of the L‐C, or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the L‐C, and such L‐C shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled.  Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the L‐C, either prior to or following a "draw" by Landlord of any portion of the L‐C, regardless of whether any dispute exists between Tenant and Landlord as to Landlord's right to draw upon the L‐C.  No condition or term of this Lease shall be deemed to render the L‐C conditional to justify the issuer of the L‐C in failing to honor a drawing upon such L‐C in a timely manner.  Tenant agrees and acknowledges that (i) the L‐C constitutes a separate and independent contract between Landlord and the Bank, (ii) Tenant is not a third party beneficiary of such contract, (iii) Tenant has no property interest whatsoever in the L‐C or the proceeds thereof, and (iv) in the event Tenant becomes a debtor under any chapter of the Bankruptcy Code, Tenant is placed into receivership or conservatorship, and/or there is an event of a receivership, conservatorship or a bankruptcy filing by, or on behalf of, Tenant, neither Tenant, any trustee, nor Tenant's bankruptcy estate shall have any right to restrict or limit Landlord's claim and/or rights to the L‐C and/or the proceeds thereof by application of Section 502(b)(6) of the U. S. Bankruptcy Code or otherwise.  In the event of an assignment by Tenant of its interest in this Lease (and irrespective of whether Landlord's consent is required for such assignment), the acceptance of any replacement or substitute L-C by Landlord from the assignee shall be subject to Landlord's prior written approval, in Landlord's reasonable discretion, and the actual and reasonable attorney's fees incurred by Landlord in connection with such determination shall be payable by Tenant to Landlord within ten (10) days of billing.
		

		
			﻿
		

		
			1.3    L-C Amount; Maintenance of L-C by Tenant.  If, as a result of any drawing by Landlord of all or any portion of the L-C, the amount of the L-C shall be less than the L-C Amount, Tenant shall, within five (5) days thereafter, provide Landlord with additional letter(s) of credit in an amount equal to the deficiency, and any such additional letter(s) of credit shall comply with all of the provisions of this Article 21.  Tenant further covenants and warrants that it will neither assign nor encumber the L-C or any part thereof and that neither Landlord nor its successors or assigns will be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.  Without limiting the generality of the foregoing, if the L-C expires earlier than the L‐C Expiration Date, Landlord will accept a renewal thereof (such renewal letter of credit to be in effect and delivered to Landlord, as applicable, not later than thirty (30) days prior to the expiration of the L-C), which shall be irrevocable and automatically renewable as above provided through the L‐C Expiration Date upon the same terms as the expiring L‐C or such other terms as may be acceptable to Landlord in its sole discretion.  However, if the L‐C is not timely renewed, or if Tenant fails to maintain the L‐C in the amount and in accordance with the terms set forth in this Article 21, Landlord shall have the right to present the L‐C to the Bank in accordance with the terms of this Article 21, and the proceeds of the L‐C may be applied by Landlord against any Rent payable by Tenant under this Lease that is not paid when due and/or to pay for all losses and damages that Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result of any breach or default by Tenant under this Lease.  In the event Landlord elects to exercise its rights under the foregoing, (I) any unused proceeds shall constitute the property of Landlord (and not Tenant’s property or, in the event of a receivership, conservatorship, or a bankruptcy filing by Tenant, property of such receivership, conservatorship or Tenant’s bankruptcy estate) and need not be segregated from Landlord’s other assets, and (II) Landlord agrees to pay to Tenant within thirty (30) days after the L‐C Expiration Date the amount of any proceeds of the L-C received by Landlord and not applied against any Rent payable by Tenant under this Lease that was not paid when due or used to pay for any losses and/or damages suffered by Landlord (or reasonably estimated by Landlord that it will suffer) as a result of any breach or default by Tenant under this Lease; provided, however, that if prior to the L‐C Expiration Date a voluntary petition is filed by Tenant, or an involuntary petition is filed against Tenant by any of Tenant’s creditors, under the Bankruptcy Code, then Landlord shall not be obligated to make such payment in the amount of the unused L-C proceeds until either all preference issues relating to payments under this Lease have been resolved in such bankruptcy or reorganization case or such bankruptcy or reorganization case has been dismissed.   Notwithstanding anything to the contrary herein, if Landlord draws on the L‐C due to Tenant's violation of this Lease beyond applicable notice and cure periods, such draw shall be in the amount required to cure such default.  In addition, if Landlord draws on the L‐C due to Tenant's failure to timely renew or provide a replacement L‐C, such failure shall not be considered a default under this Lease and Landlord shall return such cash proceeds upon Tenant's presentation of a replacement L‐C that satisfies the requirements of this Lease, subject to reasonable satisfaction of any preference risk to Landlord.
		

		
			﻿
		

		
			1.4    Transfer and Encumbrance.  The L-C shall also provide that Landlord may, at any time and without notice to Tenant and without first obtaining Tenant's consent thereto, transfer (one or more times) all or any 
		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						EXHIBIT C

					

						-2-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		
		

		
			portion of its interest in and to the L-C to another party, person or entity, regardless of whether or not such transfer is from or as a part of the assignment by Landlord of its rights and interests in and to this Lease.  In the event of a transfer of Landlord's interest in under this Lease, Landlord shall transfer the L-C, in whole or in part, to the transferee and thereupon Landlord shall, without any further agreement between the parties, be released by Tenant from all liability therefor, and it is agreed that the provisions hereof shall apply to every transfer or assignment of the whole of said L-C to a new landlord.  In connection with any such transfer of the L-C by Landlord, Tenant shall, at Tenant's sole cost and expense, execute and submit to the Bank such applications, documents and instruments as may be necessary to effectuate such transfer and, Tenant shall be responsible for paying the Bank's transfer and processing fees in connection therewith.
		

		
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			1.5    L-C Not a Security Deposit.  Landlord and Tenant (1) acknowledge and agree that in no event or circumstance shall the L‐C or any renewal thereof or substitute therefor or any proceeds thereof be deemed to be or treated as a “security deposit” under any law applicable to security deposits in the commercial context, including, but not limited to, Section 1950.7 of the California Civil Code, as such Section now exists or as it may be hereafter amended or succeeded (the “Security Deposit Laws”), (2) acknowledge and agree that the L‐C (including any renewal thereof or substitute therefor or any proceeds thereof) is not intended to serve as a security deposit, and the Security Deposit Laws shall have no applicability or relevancy thereto, and (c) waive any and all rights, duties and obligations that any such party may now, or in the future will, have relating to or arising from the Security Deposit Laws.  Tenant hereby irrevocably waives and relinquishes the provisions of Section 1950.7 of the California Civil Code and any successor statute, and all other provisions of law, now or hereafter in effect, which (x) establish the time frame by which a landlord must refund a security deposit under a lease, and/or (y) provide that a landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by a tenant or to clean the premises, it being agreed that Landlord may, in addition, claim those sums specified in this Article 21 and/or those sums reasonably necessary to (a) compensate Landlord for any loss or damage caused by Tenant's breach of this Lease, including any damages Landlord suffers following termination of this Lease, and/or (b) compensate Landlord for any and all damages arising out of, or incurred in connection with, the termination of this Lease, including, without limitation, those specifically identified in Section 1951.2 of the California Civil Code.
		

		
			﻿
		

		
			1.6    Non-Interference By Tenant.  Tenant agrees not to interfere in any way with any payment to Landlord of the proceeds of the L-C, either prior to or following a "draw" by Landlord of all or any portion of the L-C, regardless of whether any dispute exists between Tenant and Landlord as to Landlord's right to draw down all or any portion of the L-C.  No condition or term of this Lease shall be deemed to render the L‐C conditional and thereby afford the Bank a justification for failing to honor a drawing upon such L-C in a timely manner.  Tenant's sole remedy in connection with the improper presentment or payment of sight drafts drawn under any L‐C shall be the right to obtain from Landlord a refund of the amount of any sight draft(s) that were improperly presented or the proceeds of which were misapplied and reasonable actual out-of-pocket attorneys' fees, provided that at the time of such refund, Tenant increases the amount of such L‐C to the amount (if any) then required under the applicable provisions of this Lease.  Tenant acknowledges that the presentment of sight drafts drawn under any L‐C, or the Bank's payment of sight drafts drawn under such L‐C, could not under any circumstances cause Tenant injury that could not be remedied by an award of money damages, and that the recovery of money damages would be an adequate remedy therefor.  In the event Tenant shall be entitled to a refund as aforesaid and Landlord shall fail to make such payment within ten (10) business days after demand, Tenant shall have the right to deduct the amount thereof from the next installment(s) of Base Rent.
		

		
			 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						EXHIBIT C

					

						-3-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		

			 

		

		﻿
		

		
			SCHEDULE 1 TO EXHIBIT C
		

		
			﻿
		

		
			FORM OF LETTER OF CREDIT
		

		
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			(Letterhead of a money center bank
		

		
			acceptable to the Landlord)
		

		
			﻿
		

			
					
						FAX NO. [(___) ___-____]
SWIFT:  [Insert No., if any]

					
					
						[Insert Bank Name And Address]

				
	
					
						﻿

					
					
						DATE OF ISSUE:                                                                 

				
	
					
						BENEFICIARY:
[Insert Beneficiary Name And Address]

					
					
						APPLICANT:
[Insert Applicant Name And Address]

				
	
					
						﻿

					
					
						LETTER OF CREDIT NO.                   

				
	
					
						EXPIRATION DATE:
                                AT OUR COUNTERS

					
					
						AMOUNT AVAILABLE:
USD[Insert Dollar Amount]
(U.S. DOLLARS [Insert Dollar Amount])

				

		
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			LADIES AND GENTLEMEN:
		

		
			﻿
		

		
			WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. ___________ IN YOUR FAVOR FOR THE ACCOUNT OF [Insert Tenant's Name], A [Insert Entity Type], UP TO THE AGGREGATE AMOUNT OF USD[Insert Dollar Amount] ([Insert Dollar Amount] U.S. DOLLARS) EFFECTIVE IMMEDIATELY AND EXPIRING ON ___(Expiration Date)___ AVAILABLE BY PAYMENT UPON PRESENTATION OF YOUR DRAFT AT SIGHT DRAWN ON [Insert Bank Name] WHEN ACCOMPANIED BY THE FOLLOWING DOCUMENT(S):
		

		
			﻿
		

		
			1.             THE ORIGINAL OF THIS IRREVOCABLE STANDBY LETTER OF CREDIT AND AMENDMENT(S), IF ANY.
		

		
			﻿
		

		
			2.             BENEFICIARY'S SIGNED STATEMENT PURPORTEDLY SIGNED BY AN AUTHORIZED REPRESENTATIVE OF [Insert Landlord's Name], A [Insert Entity Type] ("LANDLORD") STATING THE FOLLOWING:
		

		
			﻿
		

		
			"THE UNDERSIGNED HEREBY CERTIFIES THAT THE LANDLORD, EITHER (A) UNDER THE LEASE (DEFINED BELOW), OR (B) AS A RESULT OF THE TERMINATION OF SUCH LEASE,  HAS THE RIGHT TO DRAW DOWN THE AMOUNT OF USD                     IN ACCORDANCE WITH THE TERMS OF THAT CERTAIN OFFICE LEASE DATED [Insert Lease Date], AS AMENDED (COLLECTIVELY, THE "LEASE").”
		

		
			﻿
		

		
			OR
		

		
			﻿
		

		
			"THE UNDERSIGNED HEREBY CERTIFIES THAT WE HAVE RECEIVED A WRITTEN NOTICE OF [Insert Bank Name]'S ELECTION NOT TO EXTEND ITS STANDBY LETTER OF CREDIT NO. ___________ AND HAVE NOT RECEIVED A REPLACEMENT LETTER OF CREDIT WITHIN AT LEAST THIRTY (30) DAYS PRIOR TO THE PRESENT EXPIRATION DATE."
		

		
			﻿
		

		
			OR
		

		
			﻿
		

		
			"THE UNDERSIGNED HEREBY CERTIFIES THAT BENEFICIARY IS ENTITLED TO DRAW DOWN THE FULL AMOUNT OF LETTER OF CREDIT NO. ___________ AS THE RESULT 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						SCHEDULE 1 TO EXHIBIT C

					

						-1-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		

			 

		

		
		

		
			OF THE FILING OF A VOLUNTARY PETITION UNDER THE U.S. BANKRUPTCY CODE OR A STATE BANKRUPTCY CODE BY THE TENANT UNDER THAT CERTAIN OFFICE LEASE DATED [Insert Lease Date], AS AMENDED (COLLECTIVELY, THE "LEASE"), WHICH FILING HAS NOT BEEN DISMISSED AT THE TIME OF THIS DRAWING."
		

		
			﻿
		

		
			OR
		

		
			﻿
		

		
			"THE UNDERSIGNED HEREBY CERTIFIES THAT BENEFICIARY IS ENTITLED TO DRAW DOWN THE FULL AMOUNT OF LETTER OF CREDIT NO. ___________ AS THE RESULT OF AN INVOLUNTARY PETITION HAVING BEEN FILED UNDER THE U.S. BANKRUPTCY CODE OR A STATE BANKRUPTCY CODE AGAINST THE TENANT UNDER THAT CERTAIN OFFICE LEASE DATED [Insert Lease Date], AS AMENDED (COLLECTIVELY, THE "LEASE"), WHICH FILING HAS NOT BEEN DISMISSED WITHIN THIRTY (30) DAYS."
		

		
			﻿
		

		
			OR
		

		
			﻿
		

		
			"THE UNDERSIGNED HEREBY CERTIFIES THAT BENEFICIARY IS ENTITLED TO DRAW DOWN THE FULL AMOUNT OF LETTER OF CREDIT NO. ________________ AS THE RESULT OF THE REJECTION, OR DEEMED REJECTION, OF THAT CERTAIN OFFICE LEASE DATED [Insert Lease Date], AS AMENDED, UNDER SECTION 365 OF THE U.S. BANKRUPTCY CODE."
		

		
			﻿
		

		
			SPECIAL CONDITIONS:
		

		
			﻿
		

		
			PARTIAL DRAWINGS AND MULTIPLE PRESENTATIONS MAY BE MADE UNDER THIS STANDBY LETTER OF CREDIT, PROVIDED, HOWEVER, THAT EACH SUCH DEMAND THAT IS PAID BY US SHALL REDUCE THE AMOUNT AVAILABLE UNDER THIS STANDBY LETTER OF CREDIT.
		

		
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			ALL INFORMATION REQUIRED WHETHER INDICATED BY BLANKS, BRACKETS OR OTHERWISE, MUST BE COMPLETED AT THE TIME OF DRAWING.  [Please Provide The Required Forms For Review, And Attach As Schedules To The Letter Of Credit.]
		

		
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			ALL SIGNATURES MUST BE MANUALLY EXECUTED IN ORIGINALS.
		

		
			﻿
		

		
			ALL BANKING CHARGES ARE FOR THE APPLICANT'S ACCOUNT.
		

		
			﻿
		

		
			IT IS A CONDITION OF THIS STANDBY LETTER OF CREDIT THAT IT SHALL BE DEEMED AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR A PERIOD OF ONE YEAR FROM THE PRESENT OR ANY FUTURE EXPIRATION DATE, UNLESS AT LEAST SIXTY (60) DAYS PRIOR TO THE EXPIRATION DATE WE SEND YOU NOTICE BY NATIONALLY RECOGNIZED OVERNIGHT COURIER SERVICE THAT WE ELECT NOT TO EXTEND THIS LETTER OF CREDIT FOR ANY SUCH ADDITIONAL PERIOD.  SAID NOTICE WILL BE SENT TO THE ADDRESS INDICATED ABOVE, UNLESS A CHANGE OF ADDRESS IS OTHERWISE NOTIFIED BY YOU TO US IN WRITING BY RECEIPTED MAIL OR COURIER. ANY NOTICE TO US WILL BE DEEMED EFFECTIVE ONLY UPON ACTUAL RECEIPT BY US AT OUR DESIGNATED OFFICE.  IN NO EVENT, AND WITHOUT FURTHER NOTICE FROM OURSELVES, SHALL THE EXPIRATION DATE BE EXTENDED BEYOND A FINAL EXPIRATION DATE OF (60 days from the Lease Expiration Date).
		

		
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			THIS LETTER OF CREDIT MAY BE TRANSFERRED SUCCESSIVELY IN WHOLE OR IN PART ONLY UP TO THE THEN AVAILABLE AMOUNT IN FAVOR OF A NOMINATED TRANSFEREE ("TRANSFEREE"), ASSUMING SUCH TRANSFER TO SUCH TRANSFEREE IS IN COMPLIANCE WITH ALL APPLICABLE U.S. LAWS AND REGULATIONS.  AT THE TIME OF TRANSFER, THE ORIGINAL LETTER OF CREDIT AND ORIGINAL AMENDMENT(S) IF ANY, MUST BE SURRENDERED TO US TOGETHER WITH OUR TRANSFER FORM (AVAILABLE UPON REQUEST) AND PAYMENT OF OUR CUSTOMARY TRANSFER FEES, WHICH FEES SHALL BE PAYABLE BY APPLICANT (PROVIDED THAT BENEFICIARY MAY, BUT 
		

		

		

		 

			

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						SCHEDULE 1 TO EXHIBIT C

					

						-2-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

					

						 

					

						 

				

		

			 

		

 

		

			 

		

		
		

		
			SHALL NOT BE OBLIGATED TO, PAY SUCH FEES TO US ON BEHALF OF APPLICANT, AND SEEK REIMBURSEMENT THEREOF FROM APPLICANT).  IN CASE OF ANY TRANSFER UNDER THIS LETTER OF CREDIT, THE DRAFT AND ANY REQUIRED STATEMENT MUST BE EXECUTED BY THE TRANSFEREE AND WHERE THE BENEFICIARY'S NAME APPEARS WITHIN THIS STANDBY LETTER OF CREDIT, THE TRANSFEREE'S NAME IS AUTOMATICALLY SUBSTITUTED THEREFOR.
		

		
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			ALL DRAFTS REQUIRED UNDER THIS STANDBY LETTER OF CREDIT MUST BE MARKED: ''DRAWN UNDER [Insert Bank Name] STANDBY LETTER OF CREDIT NO. ___________."
		

		
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			We hereby agree with you that if drafts are presented to [Insert Bank Name] under this Letter of Credit at or prior to [Insert Time – (e.g., 11:00 AM)], on a business day, and provided that such drafts presented conform to the terms and conditions of this Letter of Credit, payment shall be initiated by us in immediately available funds by our close of business on the succeeding business day.  If drafts are presented to [Insert Bank Name] under this Letter of Credit after [Insert Time – (e.g., 11:00 AM)], on a business day, and provided that such drafts conform with the terms and conditions of this Letter of Credit, payment shall be initiated by us in immediately available funds by our close of business on the second succeeding business day.  As used in this Letter of Credit, "business day" shall mean any day other than a Saturday, Sunday or a day on which banking institutions in the state of California are authorized or required by law to close.  If the expiration date for this Letter of Credit shall ever fall on a day which is not a business day then such expiration date shall automatically be extended to the date which is the next business day.
		

		
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			Presentation of a drawing under this Letter of Credit may be made on or prior to the then current expiration date hereof by hand delivery, courier service, overnight mail, or facsimile.  Presentation by facsimile transmission shall be by transmission of the above required sight draft drawn on us together with this Letter of Credit to our facsimile number, [Insert Fax Number – (___) ___-____], attention:  [Insert Appropriate Recipient], with telephonic confirmation of our receipt of such facsimile transmission at our telephone number [Insert Telephone Number – (___) ___-____] or to such other facsimile or telephone numbers, as to which you have received written notice from us as being the applicable such number.  We agree to notify you in writing, by NATIONALLY RECOGNIZED OVERNIGHT courier service, of any change in such direction.  Any facsimile presentation pursuant to this paragraph shall also state thereon that the original of such sight draft and Letter of Credit are being remitted, for delivery on the next business day, to [Insert Bank Name] at the applicable address for presentment pursuant to the paragraph FOLLOWINg this one.
		

		
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			WE HEREBY ENGAGE WITH YOU THAT ALL DOCUMENT(S) DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS OF THIS STANDBY LETTER OF CREDIT WILL BE DULY HONORED IF DRAWN AND PRESENTED FOR PAYMENT AT OUR OFFICE LOCATED AT [Insert Bank Name], [Insert Bank Address], ATTN: [Insert Appropriate Recipient], ON OR BEFORE THE EXPIRATION DATE OF THIS CREDIT, ___(Expiration Date)___.
		

		
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			IN THE EVENT THAT THE ORIGINAL OF THIS STANDBY LETTER OF CREDIT IS LOST, STOLEN, MUTILATED, OR OTHERWISE DESTROYED, WE HEREBY AGREE TO ISSUE A DUPLICATE ORIGINAL HEREOF UPON RECEIPT OF A WRITTEN REQUEST FROM YOU AND A CERTIFICATION BY YOU (PURPORTEDLY SIGNED BY YOUR AUTHORIZED REPRESENTATIVE) OF THE LOSS, THEFT, MUTILATION, OR OTHER DESTRUCTION OF THE ORIGINAL HEREOF.
		

		
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			EXCEPT SO FAR AS OTHERWISE EXPRESSLY STATED HEREIN, THIS STANDBY LETTER OF CREDIT IS SUBJECT TO THE "INTERNATIONAL STANDBY PRACTICES" (ISP 98) INTERNATIONAL CHAMBER OF COMMERCE (PUBLICATION NO. 590). 
		

			
					
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						Very truly yours,

				
	
					
						(Name of Issuing Bank)

				
	
					
						By:

					
					
						 

				

		
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						SCHEDULE 1 TO EXHIBIT C

					

						-3-

					

					

						HCP LIFE SCIENCE REIT, INC.

					

						[First Amendment]

					

						[Pulse Biosciences, Inc.]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]