Document:

mye-ex10ao_160.htm

 

Exhibit 10ao

 

 

 

 

 

 

 

2017 INCENTIVE STOCK PLAN OF
MYERS INDUSTRIES, INC.

AS AMENDED AND RESTATED 
(Effective March 2, 2017)

As Amended March 8, 2018

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2017 INCENTIVE STOCK PLAN 

OF 

MYERS INDUSTRIES, INC.

AS AMENDED AND RESTATED 

(EFFECTIVE MARCH 2, 2017)

AS AMENDED MARCH 8, 2018

 

 

WHEREAS, the 2008 Incentive Stock Plan of Myers Industries, Inc., as amended and restated on March 6, 2009 and as further amended on March 4, 2010, May 29, 2012, April 26, 2013, and March 5, 2015 (the “Existing Plan”), provided that Four Million (4,000,000) Shares were authorized for grants under the Plan;

WHEREAS, the Company previously amended and restated the Existing Plan as set forth below to incorporate certain changes, including increasing the number of Shares subject to the Existing Plan by an additional 1,126,950 Shares (the “Additional Shares”), which would bring the total number of authorized Shares under the Plan to 5,126,950 Shares, 3,311,950 of which are subject to outstanding Awards as of December 31, 2016; 

WHEREAS, after this increase, a total of 1,815,000 Shares were available for grants of Awards under the Plan; 

WHEREAS, the Plan was amended and restated by the Board as set forth below on March 2, 2017 (the “Effective Date”), subject to receipt of shareholder approval at the 2017 Annual Meeting; and

WHEREAS, the Company now desires to further amend the Plan to incorporate certain additional changes.

NOW, THEREFORE, the Plan is amended and restated by the Board as set forth below.  

1. Purpose of the Plan

  This 2017 Incentive Stock Plan of Myers Industries, Inc. is intended to encourage officers, directors and other key employees of, and consultants to, the Company and its Subsidiaries to acquire or increase their ownership of common stock of the Company on reasonable terms.  Grants made hereunder are part of the total compensation package for such persons and the opportunity so provided is intended to foster in participants a strong incentive to put forth maximum effort for the long-term success and growth of the Company and its Subsidiaries, to encourage long-term strategic decision making on the part of participants, to aid in retaining individuals who put forth such efforts and strategic decision making, and to assist in attracting the best available individuals to the Company and its Subsidiaries in the future, in each case, for the benefit of the Company’s shareholders.

2. Definitions

  When used herein, the following terms shall have the meaning set forth below:

2.1“Award” means an Option, a Restricted Stock Award, an SAR, a Stock Unit Award, Performance Stock Unit Award, or a Director Award.

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2.2“Award Agreement” means a written agreement in such form as may be, from time to time, hereafter approved by the Committee, which shall be duly executed by the Company and the Participant and which shall set forth the terms and conditions of an Award under the Plan.

2.3“Board” means the Board of Directors of Myers Industries, Inc.

2.4“Change of Control” means a change in control of the Company of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Exchange Act, whether or not the Company is then subject to such reporting requirement;  provided that, without limitation, a Change in Control shall be deemed to have occurred if: 

(a)Any “person” (as defined in Sections 13(d) and 14(d) of the Exchange Act), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company’s then outstanding securities; provided that a Change in Control shall not be deemed to occur under this Section 2.4(a) by reason of the acquisition of securities by the Company or an employee benefit plan (or any trust funding such a plan) maintained by the Company;

(b)During any period of one year there shall cease to be a majority of the Board comprised of Continuing Directors; or

(c)There occurs (i) a merger or consolidation of the Company 
with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation,  (ii) the approval by the stockholders of the Company of a plan of complete liquidation of the Company, or (iii) the sale or disposition by the Company of more than fifty percent (50%) of  the Company’s assets.  For purposes of this Section 2.4(c), (A) a sale of more than fifty percent (50%) of the Company’s assets includes a sale of more than fifty percent (50%) of the aggregate value of the assets of the Company and its Subsidiaries or the sale of stock of one or more of the Company’s Subsidiaries with an aggregate value in excess of fifty percent (50%) of the aggregate value of the Company and its Subsidiaries or any combination of methods by which more than fifty percent (50%) of the aggregate value of the Company and its Subsidiaries is sold, and (B) a transfer of Company assets to a corporate or non-corporate entity (such as a partnership or limited liability company) in which the Company owns equity securities possessing at least fifty percent (50%) of the total combined voting power of all classes of equity securities in such corporate or non-corporate entity shall not be treated as a sale or disposition by the Company of the assets contributed to such corporate or non-corporate entity. 

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  For purposes of this Plan, a “Change of Control” will be deemed to occur: 

 

(i)on the day on which a thirty percent (30%) or greater ownership interest described in Section 2.4(a) is acquired (other than by reason of the acquisition of securities by the Company or an employee benefit plan (or any trust funding such a plan) maintained by the Company, provided that a subsequent increase in such ownership interest after it first equals or exceeds thirty percent (30%) shall not be deemed a separate Change of Control;

(ii) on the day on which Continuing Directors cease to be a majority of the Board as described in Section 2.4(b);

(iii)on the day of a merger, consolidation or sale of assets as described in Section 2.4(c)(i) or Section 2.4(c)(iii); or

(iv)on the day of the approval of a plan of complete liquidation as described in Section 2.4(c)(ii).

2.5“Canadian Participants” means Participants who are resident in Canada for purposes of the Income Tax Act (Canada).

2.6“Code” means the Internal Revenue Code of 1986, as in effect at the time of reference, or any successor revenue code which may hereafter be adopted in lieu thereof, and reference to any specific provisions of the Code shall refer to the corresponding provisions of the Code as it may hereafter be amended or replaced.

2.7“Continuing Directors” mean individuals who at the beginning of any period (not including any period prior to the date of this Agreement) of one year constitute the Board and any new Director(s) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least a majority of the Directors then still in office who either were Directors at the beginning of the period or whose election or nomination for election was previously so approved.

 

2.8“Committee” means the Compensation Committee of the Board or any other committee appointed by the Board which is invested by the Board with responsibility for the administration of the Plan.

2.9“Company” means Myers Industries, Inc.

2.10“Director” means a member of the Board who is not also an Employee of the Company or any of its Subsidiaries.

2.11“Director Award” means the grant of an Award to a Director pursuant to Section 11.

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2.12“Director Award Agreement” means a written agreement in such form as may be, from time to time, hereafter approved by the Committee, which shall be duly executed by the Company and the Director and which shall set forth the terms and conditions of a Director Award under the Plan.

2.13“Employees” means officers (including officers who are members of the Board), and other key employees of the Company or any of its Subsidiaries.

2.14“Exchange Act” means the Securities Exchange Act of 1934, as in effect at the time of reference, or any successor law which may hereafter be adopted in lieu thereof, and any reference to any specific provisions of the Exchange Act shall refer to the corresponding provisions of the Exchange Act as it may hereafter be amended or replaced.

2.15“Fair Market Value” means, with respect to the Shares, (i) the closing price of the Shares on the principal stock exchange on which Shares are then traded or admitted to trading on the date on which the value is to be determined, or (ii) if no sale takes place on such day on any such exchange, the average of the last reported closing bid and asked prices on such day as officially quoted on any such exchange.  If there shall be a public market for the Shares, and the foregoing references are unavailable or inapplicable, then the Fair Market Value shall be determined on the basis of the appropriate substitute public market price indicator as determined by the Committee, in its sole discretion.

2.16“Incentive Stock Option” means an Option intending to meet the requirements and containing the limitations and restrictions set forth in Section 422 of the Code and designated in the Option Agreement as an Incentive Stock Option.

2.17“Non-Qualified Stock Option” means an Option other than an Incentive Stock Option.

2.18“Option” means the right to purchase the number of Shares specified by the Committee at a price and for a term fixed by the Committee in accordance with the Plan, and subject to such other limitations and restrictions as the Plan or the Committee may impose.

 

2.19“Option Agreement” means a written agreement in such form as may be, from time to time, hereafter approved by the Committee, which shall be duly executed by the Company and the Participant and which shall set forth the terms and conditions of an Option under the Plan.

2.20“Parent” means any corporation, other than the employer corporation, in an unbroken chain of corporations ending with the employer corporation if, at the time of the granting of the Option, each of the corporations other than the employer corporation owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

2.21“Participants” means Employees and key consultants to the Company or any of its Subsidiaries.  

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2.22“Performance Goal” means one or more written objective goals approved by the Committee and established and administered in accordance with Section 162(m) of the  Code and the regulations thereunder, which performance goal or goals are determined based on one or more of the following business criteria: (i) increase in the Fair Market Value of the Shares, (ii) total stockholder return, (iii) revenue, sales, settlements, market share, customer conversion, net income, stock price and/or earnings per share, (iv) return on assets, net assets, and/or invested capital, (v) economic value added, (vi) improvements in costs and/or expenses, (vii) EBIT, EBITDA, operating or gross profits, cash earnings or income from continuing operations, (viii) net cash from continuing operations or cash flow from operating activities;  (ix) performance relative to peer group; (x) free cash flow as a percentage of sales; or (x) any performance measure established by the Committee.

2.23 “Performance Stock Unit” means an Award subject to the terms of this Plan, the value of which is equal to one Share at the time it is payable and is determined as a function of the extent to which corresponding Performance Goals have been achieved.  

2.24“Performance Stock Unit Award Agreement” means a written agreement in such form as may be, from time to time, hereafter approved by the Committee, which shall be duly executed by the Company and the Participant and which shall set forth the terms and conditions of a grant of Performance Stock Units.

2.25“Performance Period” means the period of time during which the Performance Goals must be met in order to determine the degree of payout and/or vesting with respect to an Award. 

2.26“Plan” means the Existing Plan, as amended and restated as of the date hereof, and as may be further amended from time to time.

2.27“Regulation T” means Part 220, chapter II, title 12 of the Code of Federal Regulations, issued by the Board of Governors of the Federal Reserve System pursuant to the Exchange Act, as amended from time to time, or any successor regulation which may hereafter be adopted in lieu thereof.

2.28“Restricted Stock Award” means the right to receive Shares, but subject to forfeiture and/or other restrictions as set forth in the related Restricted Stock Award Agreement.

2.29“Restricted Stock Award Agreement” means a written agreement in such form as may be, from time to time, hereafter approved by the Committee, which shall be duly executed by the Company and the Participant and which shall set forth the terms and conditions of a Restricted Stock Award under the Plan.

2.30“Rule 16b-3” means Rule 16b-3 of the General Rules and Regulations of the Exchange Act, as in effect at the time of reference, or any successor rules or regulations which may hereafter be adopted in lieu thereof, and any reference to any specific provisions of Rule 16b-3 shall refer to the corresponding provisions of Rule 16b-3 as it may hereafter be amended or replaced.

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2.31“SAR” means a stock appreciation right, which is a right to receive an amount in cash, or Shares, or a combination thereof, as determined or approved by the Committee, no greater than the excess, if any, of (i) the Fair Market Value of a Share on the date the SAR is exercised, over (ii) the SAR Base Price.

2.32“SAR Base Price” means the Fair Market Value of a Share on the date an SAR was granted.

2.33“Shares” means shares of the Company’s common stock, no par value, or, if by reason of the adjustment provisions contained herein, any rights under an Award under the Plan pertain to any other security, such other security.

2.34 “Stock Unit” means a bookkeeping entry representing an equivalent of one Share, as awarded under the Plan.

2.35“Stock Unit Award Agreement” means a written agreement in such form as may be, from time to time, hereafter approved by the Committee, which shall be duly executed by the Company and the Participant and which shall set forth the terms and conditions of a grant of Stock Units.

2.36“Subsidiary” or “Subsidiaries” means any corporation or corporations other than the employer corporation in an unbroken chain of corporations beginning with the employer corporation if each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

2.37“Successor” means the (i) legal representative of the estate of a deceased Participant, (ii) the person or persons who shall acquire the right to exercise or receive an Award by bequest or inheritance or by reason of the death of the Participant, or (iii) the beneficiary or beneficiaries designated by the Participant for any Option granted to the Participant that is outstanding at the time of his death.

2.38“Term” means the period during which a particular Award may be exercised.

3. Stock Subject to the Plan

  There will be reserved for use upon the issuance, vesting, or exercise of Awards to be granted from time to time under the Plan to Participants, an aggregate of 5,126,950 Shares, subject to adjustment as set forth in Section 15 of the Plan, which Shares may be, in whole or in part, as the Board shall from time to time determine, authorized but unissued Shares, or issued Shares which shall have been reacquired by the Company, except as provided below. The following Shares shall not count against the Share limit in this Section 3:  (i) Shares covered by an Award that expires or is forfeited, canceled, surrendered, or otherwise terminated without the issuance of such Shares; (ii) Shares covered by an Award that is settled only in cash; (iii) Shares tendered in payment of the exercise price of a Stock Option; (iv) Shares withheld by the Company or any Subsidiary to satisfy a tax withholding obligation; and (v) Shares granted through assumption of, or in substitution for, outstanding awards granted by a company to individuals who become 

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Employees or Directors as the result of a merger, consolidation, acquisition or other corporate transaction involving such company and the Company or any of its Affiliates (except as may be required by reason of the rules and regulations of any stock exchange or other trading market on which the Shares are listed).  With respect to any SAR that is settled in Shares, only the Shares used to settle the SAR upon exercise shall count against the number of Shares available for Awards under the Plan.

4. Administration of the Plan

 

  The Committee shall be invested with the responsibility for the administration of the Plan. The Committee shall consist of not less than two (2) outside directors as defined in Treasury Regulation 1.162-27 who shall also qualify as non‐employee directors within the meaning of Rule 16b-3; provided, however, that the failure to satisfy the foregoing requirement shall not affect the validity of any Awards granted under the Plan.  Subject to the provisions of the Plan, the Committee shall have full authority, in its discretion, to determine the Participants to whom Awards shall be granted, the number of Shares to be covered by each of the Awards, and the terms of any such Award; to amend or cancel Awards (subject to Section 20 of the Plan); to accelerate the vesting of Awards; to interpret the Plan; to prescribe, amend and rescind rules and regulations relating to the Plan; and generally to interpret and determine any and all matters whatsoever relating to the administration of the Plan and the granting of Awards hereunder. All decisions or interpretations made by the Committee with regard to any question arising under the Plan or any Awards granted pursuant to the Plan shall be binding and conclusive on the Company and the recipients of Awards.  Except as otherwise provided in the Company’s Compensation Committee Charter, (i) Committee members shall be recommended by the Company’s Corporate Governance and Nominating Committee, and appointed by the Board at its annual organizational meeting;  (ii) members shall serve until their successors shall be duly appointed; and (iii) the Committee’s chair shall be designated by the full Board, or, if it does not do so, the Committee members shall elect a Chair by vote of a majority of the full Committee.  The Committee shall hold its meetings at such times and places as it shall deem advisable.  A majority of its members shall constitute a quorum.  Any action of the Committee may be taken by a written instrument signed by all of the members, and any action so taken shall be fully as effective as if it had been taken by a vote of a majority of the members at a meeting duly called and held.  The Committee shall make such rules and regulations for the conduct of its business as it shall deem advisable and which are consistent with the scope of the Company’s Compensation Committee Charter as in effect from time to time. No member of the Committee shall be liable, in the absence of bad faith, for any act or omission with respect to his service on the Committee.

5. Participants to Whom Awards May Be Granted and Vesting Terms

 

5.1Participants to Whom Awards May Be Granted.  Awards may be granted in each calendar year or portion thereof while the Plan is in effect to such of the Participants as the Committee, in its discretion, shall determine; provided, however, that no Incentive Stock Options may be granted to a Participant who is not an Employee.  In determining the Participants to whom Awards shall be granted and the number of Shares to be subject to issuance or subject to purchase under such Awards, the Committee shall take into account the duties of the respective Participants, their present and potential contributions to the success of the Company and its Subsidiaries, and such other factors as the Committee shall deem relevant in connection with accomplishing the purposes of the Plan.  Notwithstanding 

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anything to the contrary herein, no Participant shall receive Awards to acquire more than One Million (1,000,000) Shares in any one calendar year.

5.2Vesting.  Awards granted under the Plan on or after the date the Plan this amendment and restatement becomes effective shall be subject to a minimum three (3) year vesting schedule, with one-third vesting to occur on each of the first three anniversaries of the date of the Award Agreement, provided however, that the Committee shall have the discretion to award up to ten percent (10%) of the Shares available for the grant of future Awards under the Plan as of the date hereof without being subject to the minimum vesting requirement.   

6. Options

 

6.1Types of Options.  Options granted under the Plan may be (i) Incentive Stock Options, (ii) Non-Qualified Stock Options, or (iii) a combination of the foregoing.  The Option Agreement shall designate whether an Option is an Incentive Stock Option or a Non-Qualified Stock Option and separate Option Agreements shall be issued for each type of Option when a combination of an Incentive Stock Option and a Non-Qualified Stock Option are granted on the same date to the same Participant.  Any Option which is designated as a Non-Qualified Stock Option shall not be treated by the Company or the Participant to whom the Option is granted as an Incentive Stock Option for federal income tax purposes.  Canadian Participants shall not be eligible to receive Incentive Stock Options.

6.2Option Price.  The option price per share of any Option granted under the Plan shall not be less than the Fair Market Value of the Shares covered by the Option on the date the Option is granted.  Notwithstanding anything herein to the contrary, in the event an Incentive Stock Option is granted to an Employee who, at the time such Incentive Stock Option is granted, owns, as defined in Section 424 of the Code, stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of:

(i)the Company; or

(ii)if applicable, a Subsidiary; or

(iii)if applicable, a Parent,

then the option price per share of any Incentive Stock Option granted to such Employee shall not be less than one hundred ten percent (110%) of the Fair Market Value of the Shares covered by the Option on the date the Option is granted.

6.3Terms of Options.  Options granted hereunder shall be exercisable for a Term of not more than ten (10) years from the date of grant thereof, but shall be subject to earlier termination as hereinafter provided.  Each Option Agreement issued hereunder shall specify the term of the Option, which term shall be determined by the Committee in accordance with its discretionary authority hereunder.  Notwithstanding anything herein to the contrary, in the event an Incentive Stock Option is granted to an Employee who, at the time such Incentive Stock Option is granted, owns, as defined in Section 424 of the Code, 

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stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of:

(i)the Company; or

(ii)if applicable, a Subsidiary; or

(iii)if applicable, a Parent,

then such Incentive Stock Option shall not be exercisable more than five (5) years from the date of grant thereof, but shall be subject to earlier termination as hereinafter provided.

6.4Other Terms and Conditions of Options.  Each Option or each Option Agreement setting forth an Option shall contain such other terms and conditions (e.g., vesting conditions) not inconsistent herewith as shall be approved by the Committee.  Notwithstanding anything contained herein to the contrary, except in connection with a change in capitalization described in Section 15, the terms of outstanding Awards may not be amended to reduce the exercise price of outstanding Options or cancel outstanding Options in exchange for cash, or other Awards or Options with an exercise price that is less than the exercise price of the original Options without stockholder approval.

7. Limit on Fair Market Value of Incentive Stock Options

 

  No Employee may be granted an Incentive Stock Option hereunder to the extent that the aggregate fair market value (such fair market value being determined as of the date of grant of the option in question) of the stock with respect to which incentive stock options are first exercisable by such Employee during any calendar year (under all such plans of the Employee’s employer corporation, its Parent, if any, and its Subsidiaries, if any) exceeds One Hundred Thousand Dollars ($100,000).  For purposes of the preceding sentence, Options shall be taken into account in the order in which they were granted.  Any Option granted under the Plan which is intended to be an Incentive Stock Option, but which exceeds the limitation set forth in this Section 7, shall be a Non-Qualified Stock Option.

8. Restricted Stock Awards

 

  Restricted Stock Awards granted under the Plan shall be subject to such terms and conditions as Committee may, in its discretion, determine and set forth in the related Restricted Stock Award Agreements. Restricted Stock Awards shall be granted to Participants in accordance with, and subject to, the provisions set forth below.  Canadian Participants are not eligible for Restricted Stock Awards.

8.1Issuance of Shares.  Each Restricted Stock Award shall be evidenced by a Restricted Stock Award Agreement that shall set forth the number of Shares issuable under the Restricted Stock Award.  Subject to the restrictions in Section 8.3 of the Plan, and subject further to such other restrictions or conditions established by the Committee, in its discretion, and set forth in the related Restricted Stock Award Agreement, the number of Shares granted under a Restricted Stock Award shall be issued in the recipient Participant’s 

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name on the date of grant of such Restricted Stock Award or as soon as reasonably practicable thereafter.

8.2Rights of Recipient Participants.  Shares received pursuant to Restricted Stock Awards shall be duly issued or transferred to the Participant, and a certificate or certificates for such Shares shall be issued in the Participant’s name.  Subject to the restrictions in Section 8.3 of the Plan, and subject further to such other restrictions or conditions established by the Committee, in its discretion, and set forth in the related Restricted Stock Award Agreement, the Participant shall thereupon be a stockholder with respect to all the Shares represented by such certificate or certificates and shall have all the rights of a stockholder with respect to such Shares, including the right to vote such Shares and to receive dividends and other distributions paid with respect to such Shares provided that any cash dividends and stock dividends with respect to the Restricted Stock shall be withheld by the Company for the Participant’s account, and interest may be credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by the Committee. The cash dividends or stock dividends so withheld by the Committee and attributable to any particular share of Restricted Stock (and earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of restrictions on such share and, if such share is forfeited, the Participant shall have no right to such dividends. In furtherance of the restrictions in Section 8.3 of the Plan and in the related Restricted Stock Award Agreement, the certificate or certificates for Shares awarded hereunder, together with a suitably executed stock power signed by such recipient Participant, shall be held by the Company in its control for the account of such Participant (i) until the restrictions in Section 8.3 of the Plan and in the related Restricted Stock Award Agreement lapse pursuant to the Plan or the Restricted Stock Award Agreement, at which time a certificate for the appropriate number of Shares (free of all restrictions imposed by the Plan or the Restricted Stock Award Agreement) shall be delivered to the Participant, or (ii) until such Shares are forfeited to the Company and cancelled as provided by the Plan or the Restricted Stock Award Agreement.

8.3Restrictions.  Except as otherwise determined by the Committee, in its sole discretion, and set forth in a Restricted Stock Award Agreement, each Share issued pursuant to a Restricted Stock Award Agreement shall be subject, in addition to any other restrictions set forth in the related Restricted Stock Award Agreement, to the following restrictions until such restrictions have lapsed pursuant to Section 8.4 of the Plan:

(a)Disposition.  The Shares awarded to a Participant and held by the Company pursuant to Section 8.2 of the Plan, and the right to vote such Shares or receive dividends on such Shares, may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of; provided, however, that such Shares may be transferred upon the death of the Participant to the Participant’s Successor.  Any transfer or purported transfer of such Shares in violation of the restrictions outlined in this Section 8.3 shall be null and void and shall result in the forfeiture of the Shares transferred or purportedly transferred to the Company without notice and without consideration.

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(b)Forfeiture.  The Shares awarded to a Participant and held by the Company pursuant to Section 8.2 of the Plan shall be forfeited to the Company without notice and without consideration therefor immediately upon the complete termination of the Participant’s employment with the Company and its Subsidiaries for any reason whatsoever and at such other times as may be set forth in a Restricted Stock Award Agreement.

8.4Lapse of Restrictions.  The restrictions set forth in Section 8.3 of the Plan on Shares issued under a Restricted Stock Award shall lapse upon either the passage of time or the achievement of one or more Performance Goals and on such terms as the Committee, in its sole discretion, shall determine and set forth in the related Restricted Stock Award Agreement, and certificates for the Shares held for the account of the Participant in accordance with Section 8.2 of the Plan hereof shall be appropriately distributed to the Participant as soon as reasonably practical thereafter.  In granting any Restricted Stock Award which is intended to qualify under Section 162(m) of the Code and the regulations thereunder, the Committee shall follow any procedures determined by the Committee from time to time to be necessary or appropriate to ensure the qualification of such Restricted Stock Award under Section 162(m) of the Code and the regulations thereunder.

8.5Issuance of Shares in Book Entry Form.  Shares subject to a Restricted Stock Award, may be issued in book entry form and evidenced by a book entry account maintained by the Company’s stock transfer agent, in which case (i) any requirement that certificates for Shares subject to a Restricted Stock Award be issued or delivered to a Participant shall be satisfied by the Company causing such Shares to be evidenced in a book entry account maintained by its stock transfer agent, (ii) any reference in Sections 8.2 through 8.4 of the Plan to Shares subject to a Restricted Stock Award being held by the Company shall include any Shares being held in a book entry account maintained by the Company’s stock transfer agent, and (iii) the Company shall have the same right to delay the entry of the Shares in a book entry account maintained by its stock transfer agent as its right to delay delivery of Shares subject to an Award pursuant to Sections 18.1 and 21 of the Plan.

9. Stock Appreciation Rights

 

9.1Grant of SAR.  The Committee, in its discretion, may grant a Participant  an SAR on a stand-alone basis (i.e., independent of an Option). 

9.2Limitations on Exercise.  Each SAR granted on a stand-alone basis shall be exercisable to the extent, and for such Term, as the Committee may determine, provided, however that such Term shall not exceed ten (10) years.  The SARs shall be subject to such other terms and conditions as the Committee, in its discretion, shall determine, which are not otherwise inconsistent with the Plan.  The terms and conditions may include Committee approval of the exercise of the SAR, limitations on the time within which and the extent to which such SAR shall be exercisable, limitations, if any, on the amount of appreciation in value which may be recognized with regard to such SAR, and specification of what portion, if any, of the amount payable to the Employee upon exercise of such SAR shall be payable in cash and what portion, if any, shall be payable in Shares.  If, and to the extent, that Shares 

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are issued in satisfaction of amounts payable on exercise of an SAR, the Shares shall be valued at their Fair Market Value on the date of exercise.

9.3Other Terms and Conditions of SARs.  Notwithstanding anything contained herein to the contrary, except in connection with a change in capitalization described in Section 15, the terms of outstanding Awards may not be amended to reduce the exercise price of outstanding SARs or cancel outstanding SARs in exchange for cash, or other Awards or SARs with an SAR Base Price that is less than the SAR Base Price of the original SARs without stockholder approval.

10. Stock Units

 

  Awards of Stock Units or Performance Stock Units granted under the Plan shall be subject to such terms and conditions as the Committee may, in its discretion, determine and set forth in the related Stock Unit Award or Performance Stock Unit Award Agreements.

10.1Number of Shares.  Each Stock Unit Award or Performance Stock Unit Award Agreement shall set forth the number of Shares subject to such Award.

10.2Rights of Participant.  A Participant awarded Stock Units or Performance Stock Units pursuant to the terms of this Plan shall not be deemed to be the beneficial owner of Shares underlying the Stock Units.  Each Stock Unit or Performance Stock Unit shall represent the right of the Participant to receive an amount equal to the Fair Market Value of a Share on the date of the payment of such Stock Unit.  A holder of Stock Units or Performance Stock Units shall have no rights other than those of a general creditor of the Company.  Stock Units or Performance Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Award or Performance Stock Unit Award Agreement.

10.3Terms of the Stock Units.  Each Stock Unit or Performance Stock Unit Award Agreement granting one or more Stock Units or Performance Stock Units shall contain such other terms and conditions, including but not limited to provision for payment of dividend equivalents, not inconsistent herewith as shall be approved by the Committee, and may vest based on the passage of time or the achievement of one or more Performance Goals.  Notwithstanding the foregoing, no dividend equivalents shall be paid on unvested Stock Units, or with respect to Stock Units or Performance Stock Units held by Canadian Participants. 

10.4Performance Conditions.  The right of a Participant to exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to such performance conditions as may be specified by the Committee and provided within the applicable Performance Stock Unit Agreement. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions.  If and to the extent required under Code Section 162(m), any power or authority relating to an Award intended to qualify under Code Section 162(m), shall be exercised by the Committee.

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10.5Performance Goals Generally.  The Performance Goals for such Performance Stock Unit Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 10.  If an Award is intended to qualify for the performance-based exception from the tax deductibility limitations of Section 162(m) of the Code, Performance Goals shall be objective and shall meet the requirements of Code Section 162(m) and regulations thereunder including the requirement that the level or levels of performance targeted by the Committee result in the achievement of Performance Goals being “substantially uncertain.” The Committee may determine that such Awards shall be granted, exercised and/or settled upon achievement of any one Performance Goal or that two or more of the Performance Goals must be achieved as a condition to grant, exercise and/or settlement of such Awards.  Performance Goals may differ for Awards granted to any one Participant or to different Participants.

10.6Timing For Establishing Performance Goals.  If an Award is intended to qualify for the performance-based exception from the tax deductibility limitations of Section 162(m) of the Code, Performance Goals shall be established not later than the earlier of (i) ninety (90) days after the beginning of any Performance Period applicable to such Awards and (ii) the day on which 25% of any Performance Period applicable to such Awards has expired, or at such other date as may be required or permitted for “performance-based compensation” under Code Section 162(m).

10.7Payment of Stock Units or Performance Stock Units.  Payments made with respect to Stock Units or Performance Stock Units may be made in the form of cash, Shares or any combination of both and at such time as determined by the Committee at the time of the grant of the Stock Units, provided that any such payments to Canadian Participants will only be made in Shares.

11. Director Awards

11.1Grant of Director Awards.  Each Director, who is a Director as of the date of the annual meeting of the Board with respect to any given year (such date, the “Meeting Date”) and has been a Director for the entire period since the annual meeting of shareholders of Company held in the immediately preceding calendar year, shall be granted a Director Award for a number of full Shares determined by dividing the Applicable Director Amount by the Fair Market Value of a Share on the grant date, such grant to be made as of such Meeting Date without further action by the Committee.  The Applicable Director Amount shall be recommended by the Committee based on an annual review of the total Board compensation package and approved by the full Board.  Each Director Award shall be evidenced by a Director Award Agreement.  The number of Shares granted under a Director Award shall be issued in the recipient Director’s name on the date of grant of such Director Award or as soon as reasonably practicable thereafter.  Shares received pursuant to Director Awards shall be duly issued or transferred to the Director, and a certificate or certificates for such Shares shall be issued in the Director’s name.  Notwithstanding the foregoing, the Company may determine to grant Directors Stock Units in lieu of a grant of Shares.

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11.2Rights of Directors. A recipient Director shall thereupon be a stockholder with respect to all the Shares represented by such certificate or certificates and shall have all the rights of a stockholder with respect to such Shares, including the right to vote such Shares provided that any cash dividends and stock dividends with respect to the Shares shall be withheld by the Company for the Director’s account, and interest may be credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by the Committee. The cash dividends or stock dividends so withheld by the Committee and attributable to any Shares (and earnings thereon, if applicable) shall be distributed to the Director in cash or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of restrictions on such Shares and, if such Share is forfeited, the Director shall have no right to such dividends.  Notwithstanding anything to the contrary in this Section 11, each Director entitled to receive a Director Award of Shares on a particular Meeting Date shall have the right to elect to receive and be granted a Director Award for a number of full Stock Units determined by dividing the Applicable Director Amount by the Fair Market Value of a Share on the grant date in lieu of receiving a Director Award for an equivalent number of Shares on such Meeting Date.  Any such election must be made in a written notice delivered to the Chairman of the Board or his designee on or before the Meeting Date for the calendar year immediately preceding the applicable Meeting Date, which election once made, shall be irrevocable.  Any Stock Units granted to a Director pursuant to any such election or as provided in Section 11.1 shall provide that the Company will make a payment to such Director on the date that such Director ceases to be a member of the Board for any reason whatsoever of one Share for each such Stock Unit then held by such Director, or as soon thereafter as is reasonably practical, but in no event later than March 15 of the year following the date that such Director ceased to be a member of the Board, and will be subject to such other terms, including but not limited to provision for the payment of dividend equivalents, as contained in a Stock Unit Agreement approved by the Board, the execution of which shall be a condition to the receipt of the Stock Units. 

11.3Issuance of Shares in Book Entry Form.  Shares subject to a Director Award as described in this Section 11 of the Plan, may be issued in book entry form and evidenced by a book entry account maintained by the Company’s stock transfer agent, in which case (i) any requirement that certificates for Shares subject to a Director Award be issued or delivered to a Director pursuant to this Section 11 of the Plan shall be satisfied by the Company causing such Shares to be evidenced in a book entry account maintained by its stock transfer agent, and (ii) the Company shall have the same right to delay the entry of the Shares in a book entry account maintained by its stock transfer agent as its right to delay delivery of Shares subject to an Award pursuant to Sections 18.1 and 21 of the Plan.

11.4Limitation on Awards to Non-Employee Directors.  Notwithstanding any other provision of this Plan to the contrary, the aggregate grant date fair value (computed as of the date of grant in accordance with applicable financial accounting rules) of all Awards granted to any Participant who is a non-employee Director of the Company during any single fiscal year shall not exceed $300,000.

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12. Date of Grant

  The date of grant of an Award granted hereunder shall be the date on which the Committee acts in granting the Award or, if later, such other date as the Committee shall specify.

13. Exercise of Rights Under Awards and Recoupment of Certain Compensation.

13.1Notice of Exercise.  A Participant entitled to exercise an Award may do so by delivery of a written notice to that effect specifying the number of Shares or SARs with respect to which the Award is being exercised and any other information the Committee may prescribe.  The notice shall be accompanied by payment in full of the purchase price of any Shares to be purchased, which payment may be made in cash or, with the Committee’s approval in Shares valued at Fair Market Value at the time of exercise or a combination thereof, provided that Canadian Participants shall not be entitled to make payment in the form of Shares.  No Shares shall be issued upon exercise of an Option until full payment has been made therefor.  All notices or requests provided for herein shall be delivered to the Chief Financial Officer of the Company, or such other person as the Committee shall designate.

13.2Cashless Exercise Procedures.  The Company, in its sole discretion, may establish procedures whereby a Participant, subject to the requirements of Rule 16b-3, Regulation T, federal income tax laws, and other federal, state and local tax and securities laws, can exercise an Option or a portion thereof without making a direct payment of the option price to the Company; provided, however, that these cashless exercise procedures shall not apply to Incentive Stock Options which are outstanding on the date the Company establishes such procedures unless the application of such procedures to such Options is permitted pursuant to the Code and the regulations thereunder without affecting the Options’ qualification under Code Section 422 as Incentive Stock Options.  If the Company so elects to establish a cashless exercise program, the Company shall determine, in its sole discretion, and from time to time, such administrative procedures and policies as it deems appropriate and such procedures and policies shall be binding on any Participant wishing to utilize the cashless exercise program.

13.3Rights of Award Holder.  Except as set forth in Section 8 and Section 11 of the Plan, the holder of an Award shall not have any of the rights of a stockholder with respect to the Shares subject to purchase or receipt under his Award, except to the extent that one or more certificates for such Shares shall be delivered to him upon the due exercise or grant of the Award. Shares subject to an Award under the Plan may be issued in book entry form and evidenced by a book entry account maintained by the Company’s stock transfer agent, in which case (i) any requirement that certificates for Shares subject to an Award be issued or delivered to a Participant or Director pursuant to Section this Section 13.3 of the Plan shall be satisfied by the Company causing such Shares to be evidenced in a book entry account maintained by its stock transfer agent, and (ii) the Company shall have the same right to delay the entry of the Shares in a book entry account maintained by its stock transfer agent as its right to delay delivery of Shares subject to an Award pursuant to Sections 18.1 and 21 of the Plan.

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13.4Recoupment of Certain Compensation Attributable to Awards.  Any Award granted hereunder which is subject to recovery under any law, government regulation, stock exchange listing requirement, or Company policy, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation, stock exchange listing requirement, or Company policy.

14. Nontransferability of Awards

 

  An Award shall not be transferable, other than:  (a) by will or the laws of descent and distribution, and an Award may be exercised, during the lifetime of the holder of the Award, only by the holder or in the event of death, the holder’s Successor, or in the event of disability, the holder’s personal representative, or (b) pursuant to a qualified domestic relation order, as defined in the Code or the Employee Retirement Income Security Act (ERISA) or the rules thereunder; provided, however, that an Incentive Stock Option may not be transferred pursuant to a qualified domestic relations order unless such transfer is otherwise permitted pursuant to the Code and the regulations thereunder without affecting the Option’s qualification under Code Section 422 as an Incentive Stock Option.

15. Adjustments Upon Changes in Capitalization

 

  In the event of changes in all of the outstanding Shares by reason of stock dividends, stock splits, recapitalizations, mergers, consolidations, combinations, or exchanges of shares, separations, reorganizations or liquidations, or similar events, or in the event of extraordinary cash or non-cash dividends being declared with respect to the Shares, or similar transactions or events, the number and class of Shares available under the Plan in the aggregate, the number and class of Shares subject to Awards theretofore granted, applicable purchase prices, Option prices, SAR Base Prices, individual share limits, and all other applicable provisions, shall, subject to the provisions of the Plan, be equitably adjusted by the Committee (which adjustment, only with respect to Participants other than Canadian Participants, may, but need not, include payment to the holder of an Option or SAR, in cash or in shares, in an amount equal to the difference between the price at which such Award may be exercised and the then current Fair Market Value of the Shares subject to such Option as equitably determined by the Committee) in order to prevent the diminution or enlargement of benefits thereunder.  The foregoing adjustment and the manner of application of the foregoing provisions shall be determined by the Committee, in its sole discretion; provided, however, that to the extent applicable, any adjustment to an Incentive Stock Option shall be made in a manner consistent with Section 424 of the Code. Any such adjustment may provide for the elimination of any fractional share which might otherwise become subject to an Award.

16. Change in Control

 

  Notwithstanding anything to the contrary in the Plan or any Award Agreement, in the case of a Change of Control, the Committee may, in its sole discretion, determine, on a case by case basis, that each Award, other than an Award of Stock Units, granted under the Plan shall terminate upon the later of (i) the thirtieth (30th) day after the Award holder receives written notice from the Company of its intention to terminate the Award, or (ii) the consummation of such Change of Control, but, in the event of any such termination, an Option or SAR holder shall have the right, conditioned upon the consummation of such Change of Control and subject to any limitation on 

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the exercise of such Option or SAR in effect on the date of exercise, to exercise such Option or SAR, prior to its termination, as to the portion of the Option or SAR with respect to which the holder’s right to exercise the Option or SAR had previously vested as of the termination date.  Except as provided in an Award Agreement, or a written employment agreement or separation agreement in effect on the Effective Date, the Company will not accelerate the vesting of any outstanding Awards in connection with a Change in Control unless either (i) such acceleration is conditioned upon the employment of the holder of an outstanding Award being terminated on or after such Change in Control or (ii) any such outstanding Awards are not assumed or replaced with a substituted award or right having a substantially equivalent economic value and substantially equivalent or better terms and conditions.

17. Forms of Awards

 

  Nothing contained in the Plan nor any resolution adopted or to be adopted by the Board, the Committee or by the stockholders of the Company shall constitute the granting of any Award.  An Award shall be granted hereunder only by action taken by the Committee in granting an Award.  Whenever the Committee shall designate a Participant or Director for the receipt of an Award, the President of the Company, or such other person as the Committee shall designate, shall forthwith send notice thereof to the Participant or Director, in such form as the Committee shall approve, stating the number of Shares subject to the Award, its Term, if applicable, and the other terms and conditions thereof.  The notice shall be accompanied by an Award Agreement in such form as may from time to time hereafter be approved by the Committee, which shall have been duly executed by or on behalf of the Company.  If the surrender of previously issued Awards is made a condition of the grant, the notice shall set forth the pertinent details of such condition.  Execution by the Participant or Director to whom such Award is granted of an Award Agreement in accordance with the provisions set forth in this Plan shall be a condition precedent to the exercise or grant of any Award.  

18. Taxes

18.1Right to Withhold Required Taxes.  The Company shall have the right to require a person entitled to receive Shares pursuant to receipt, vesting or exercise of an Award under the Plan to pay the Company the amount of any taxes which the Company is or will be required to withhold with respect to such Shares before the certificate for such Shares is delivered pursuant to the Award.  Furthermore, the Company shall deduct such taxes, as elected by the Participant, from any other amounts then payable in cash or in shares or from any other amounts payable any time thereafter to the Participant. If an Employee disposes of Shares acquired pursuant to an Incentive Stock Option in any transaction considered to be a disqualifying transaction under Sections 421 and 422 of the Code, the Employee shall notify the Company of such transfer and the Company shall have the right to deduct any taxes required by law to be withheld from any amounts otherwise payable then or at any time thereafter to the Employee. Shares subject to an Award under the Plan may be issued in book entry form and evidenced by a book entry account maintained by the Company’s stock transfer agent, in which case the Company shall have the same right to delay the entry of the Shares in a book entry account maintained by its stock transfer agent as its right to delay delivery of Shares subject to an Award pursuant to this Section 18.1 and Section 21 of the Plan.

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18.2Election to Withhold Shares.  A Participant may elect to satisfy his tax liability with respect to the exercise of an Option or the receipt or vesting of a Restricted Stock Award or payment of a Stock Unit Award by having the Company withhold Shares otherwise issuable upon exercise of the Option or deliverable upon the grant or vesting of the Restricted Stock Award or payment of a Stock Unit Award; provided, however, that if a Participant is subject to Section 16(b) of the Exchange Act, such election must satisfy the requirements of Rule 16b-3.  

18.3  The Plan shall terminate ten (10) years from the Effective Date hereof, and an Award shall not be granted under the Plan after that date although the terms of any Awards may be amended at any date prior to the end of its Term in accordance with the Plan.  Any Awards outstanding at the time of termination of the Plan shall continue in full force and effect according to the terms and conditions of the Award and this Plan.

  The Plan may be amended at any time and from time to time by the Board, but no amendment without the approval of the stockholders of the Company shall be made if stockholder approval would be required under any applicable law.  Notwithstanding the discretionary authority granted to the Committee in Section 4 of the Plan, no amendment of the Plan or any Award granted under the Plan shall impair any of the rights of any holder, without such holder’s consent, under any Award theretofore granted under the Plan.

  Delivery of certificates for Shares pursuant to the grant or exercise of an Award may be postponed by the Company for such period as may be required for it with reasonable diligence to comply with any applicable requirements of any federal, state or local law or regulation or any administrative or quasi-administrative requirement applicable to the sale, issuance, distribution or delivery of such Shares.  The Committee may, in its sole discretion, require a Participant to furnish the Company with appropriate representations and a written investment letter prior to the receipt or exercise of an Award or the delivery of any Shares pursuant to an Award.  Shares subject to an Award under the Plan may be issued in book entry form and evidenced by a book entry account maintained by the Company’s stock transfer agent, in which case the Company shall have the same right to delay the entry of the Shares in a book entry account maintained by its stock transfer agent as its right to delay delivery of Shares subject to an Award pursuant to Section 18.1 and this Section 21 of the Plan.

 

19. Fees and Costs

  The Company shall pay all original issue taxes on the grant or exercise of any Award granted under the Plan and all other fees and expenses necessarily incurred by the Company in connection therewith.

20. Effectiveness of the Plan

  The Plan shall be submitted to the Company’s shareholders for approval and unless the Plan is approved either (i) by the affirmative votes of the holders of shares having a majority of the voting power of all shares represented at a meeting duly held in accordance with Ohio law within twelve (12) months after being approved by the Board, or (ii) by a written consent of shareholders in accordance with Ohio law within twelve (12) months after being approved by the 

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Board, the Plan (and all Awards made from the Additional Shares) shall be void and of no force and effect, and the Existing Plan shall continue in full force and effect. 

21. Other Provisions

  As used in the Plan, and in Awards and other documents prepared in implementation of the Plan, references to the masculine pronoun shall be deemed to refer to the feminine or neuter, and references in the singular or the plural shall refer to the plural or the singular, as the identity of the person or persons or entity or entities being referred to may require.  The captions used in the Plan and in such Awards and other documents prepared in implementation of the Plan are for convenience only and shall not affect the meaning of any provision hereof or thereof.

22. Effect on Employment

  Neither the adoption of this Plan, its operation, nor any of the Award Agreements or other documents described or referred to in the Plan shall confer upon any person any right to continue in the employ or service of the Company or any of its Subsidiaries or in any way affect any right or power of the Company or any of its Subsidiaries to terminate the employment or service of any person at any time for any reason whatsoever. 

23. International Participants

  To the extent that the Committee determines, in its sole discretion, to comply with foreign laws or practices and to further the purpose of the Plan, the Committee may, amend the terms of the Plan or Awards in order to conform with the requirements of such foreign laws or practices. 

24. Compliance with Section 409A of the Code

  The Plan is intended to comply with Section 409A of the Code and the regulations thereunder, to the extent applicable.  Notwithstanding any provision of the Plan to the contrary, the Plan shall be interpreted, operated and administered consistent with this intent.  In that regard, and notwithstanding any provision of the Plan to the contrary, the Company reserves the right to amend the Plan or any Award granted under the Plan, by action of the Committee, without the consent of the any affected Participant or Director, to the extent deemed necessary or appropriate for purposes of maintaining compliance with Section 409A of the Code and the regulations thereunder.

25. Ohio Law to Govern

  This Plan shall be governed by and construed in accordance with the laws of the State of Ohio.

xix

9942557 v11Exhibit 10.20

 

STANDARD
FORM OF APARTMENT LEASE 

FOR
41 JOHN STREET, NEW YORK, NY 10038

 

PREAMBLE:
This lease contains the agreements between You and Owner concerning Your rights and obligations and the rights and obligations
of Owner. You and Owner have other rights and obligations which are set forth in government laws and regulations.

 

You
should read this Lease and all of its attached parts carefully. If You have any questions, or if You do not understand any words
or statements, get clarification. Once You and Owner sign this Lease You and Owner will be presumed to have read it and understood
it. You and Owner admit that all agreements between You and Owner have been written into this Lease. You understand that any agreements
made before or after this Lease was signed and not written into it will not be enforceable.

 

THIS
LEASE is made as of APRIL 1, 2017 by and between 41 JOHN STREET EQUITIES LLC, (hereinafter referred
to as the “Owner” or “Landlord”) whose address is 55 Fifth Avenue, New York, New York 10003, and YANGTZE
RIVER DEVELOPMENT LTD, hereinafter referred to as “You” or “Tenant”) whose address is: 183 Broadway,
FL 5, New York, NY 10007.

 

	1.	APARTMENT AND USE

 

Owner
agrees to lease to You Apartment #2A (“Apartment” or “Demised Premises”) at 41 John Street
10038 (“Building”) Borough, City, and State of New York. You shall use the Apartment for living purposes and
home occupations to the extent permitted under the New York City Zoning Resolution as amended.

 

	2.	LENGTH OF LEASE

 

The
term (that means the length) of this Lease is ONE (1) YEAR, beginning on APRIL 1, 2017
(“Commencement Date”) and ending on MARCH 31, 2018 (“Expiration Date”). If you do not
do everything You agree to do in this Lease, Owner may have the right to end it before the above date. If Owner does not do
everything that Owner agrees to do in this Lease, You may have the right to end the Lease before the Expiration
Date.

 

	3.	RENT

 

During
the term of the Lease, the Rent for the Apartment is $88,740.00 (“Fixed Rent” or “Rent”) payable in one
lump sum at lease signing. You will be responsible for payment of rent until the later of the following: the lease term
expiration date or the date vacant possession is delivered, provided You have complied with the required sixty (60) day written
notice and access provision under 15(b). In the event You have not complied
with the requirements under 15(b), You will be responsible for payment of Rent until the later of sixty (60) days AFTER the Lease
expiration date or sixty (60) days after vacatur. You must pay the first month’s Rent by certified check or bank money order
to Owner when You sign this Lease.

 

	4.	SECURITY DEPOSIT

 

You
are required to give Owner a security deposit equal to the sum of $7,395.00. If You
carry out all of your agreements in this Lease and if You move out of the Apartment and return it to Owner in the same condition
it was in when You first occupied it, except for ordinary wear and tear or damage from fire or other casualty which was not caused
by You, Owner will return to You the full amount of your security deposit to which You are entitled within thirty (30) days after
this Lease ends. However, if You do not carry out all your agreements in this Lease, Owner may keep all or part of your security
deposit necessary to pay Owner for any losses incurred, including missed Rent, and/or any other payments due by You under this
Lease. If Owner sells or leases the Building, Owner will turn over your security either to You or to the person buying or leasing
(lessee) the Building within five (5) days after the sale or lease. Owner will then notify You, by registered or certified mail,
of the name and address of the person or company to whom the deposit has been turned over. In such case, Owner will have no further
responsibility to You for the security deposit. The new Owner or lessee will become responsible to You for the security deposit.

 

    	 	1

     

    

 

	5.	IF YOU ARE UNABLE TO MOVE IN

 

A
situation could arise which might prevent Owner from letting You move into the Apartment on the Commencement Date set in
this Lease. If this happens for any reason, Owner will not be responsible for your damages or expenses, and this Lease will
remain in effect. In such case You will not have to pay Rent until the move-in date Owner gives You by written notice. In the
event You do not receive a move-in date from the Owner within 60 days after the Commencement Date, You may, at your option,
cancel this Lease upon written notice to the Owner. In the case of such cancellation You shall receive back the rent and
security You paid under the Lease and thereafter neither party to this Lease shall have any further obligation or liability
under the lease.

 

	6.	CAPTIONS

 

In
any dispute arising under this Lease, in the event of a conflict between the text and a caption, the text controls.

 

	7.	WARRANTY OF HABITABILITY

 

A.
All of the sections of this Lease are subject to the provisions of the Warranty of Habitability Law in the form it may have from
time to time during this Lease. Nothing in this Lease can be interpreted to mean that You have given up any of your rights under
that law. Under that law, Owner agrees that the Apartment and the Building are fit for human habitation and that there will be
no conditions that Owner creates that will be detrimental to life, health or safety.

 

B.
You will do nothing to interfere or make more difficult Owner’s efforts to provide You and all other occupants of the Building
with the required facilities and services. Any condition caused by your misconduct or the misconduct of anyone under your direction
or control shall not be a breach by Owner.

 

	8.	CARE OF YOUR APARTMENT-END OF LEASE-MOVING OUT

 

A.
You will take good care of the Apartment and will not permit or do any damage to it, except for damage which occurs through ordinary
wear and tear. You will move out on or before the ending date of this
Lease and leave the Apartment in good order and in the same condition as it was when You first occupied it, except for ordinary
wear and tear and damage caused by fire or other casualty.

 

B.
When this Lease ends, You must remove all of your movable property. You must also remove at your own expense, any bookcases, cabinets,
mirrors, painted murals or any other installations or attachments You may have installed in the Apartment, even if it was done
with Owner’s consent. You must restore and repair to its original condition those portions of the Apartment affected by
those installations and removals. You have not moved out until all persons, furniture and other property of yours is also out
of the Apartment. If your property remains in the Apartment after the Lease ends, Owner may either treat You as still in occupancy
and charge You for use, or may consider that You have given up the Apartment and any property remaining in the Apartment. In this
event, Owner may either discard the property or store it at your expense. You agree to pay as additional rent to Owner for all
costs and expenses incurred in removing such property. The provisions of this Article will continue in effect after the end of
this Lease.

 

	9.	CHANGES AND ALTERATIONS TO APARTMENT

 

You
cannot build in, add to, change or alter, the Apartment in any way without getting Owner’s written consent before You do
anything. Without Owner’s prior written consent, You cannot install or use in the Apartment any of the following: garbage
disposal units, heating, ventilating or air conditioning units or any other electrical equipment which, in Owner’s
reasonable opinion, will overload the existing wiring installation in the Building or interfere with the use of such electrical
wiring facilities by other tenants of the Building. Also, You cannot place in the Apartment water-filled furniture.

 

	10.	YOUR DUTY TO OBEY AND COMPLY WITH LAWS, REGULATIONS
AND LEASE RULES

 

A.
Government Laws and Orders. You will obey and comply (1) with all present and future city, state and federal laws and regulations
which affect the Building or the Apartment, and (2) with all orders and regulations of Insurance Rating Organizations which affect
the Apartment and the Building. You will not allow any windows in the Apartment to be cleaned from the outside, unless the equipment
and safety devices required by law are used.

 

B.
Owner’s Rules Affecting You. You will obey all Owner’s rules listed in this Lease and all future reasonable
rules of Owner or Owner’s agent. Notice of all additional rules shall be delivered to You in writing or posted in the lobby
or other public place in the Building. Owner shall not be responsible to You for not enforcing any rules, regulations or provisions
of another tenant’s lease except to the extent required by law.

 

C.
Your Responsibility. You are responsible for the behavior of yourself, of your immediate family, your servants and people
who are visiting You. You will reimburse Owner as Additional Rent upon demand for the cost of all losses, damages, fines and reasonable
legal expenses incurred by Owner because You, members of your immediate family, servants or people visiting You have not obeyed
government laws and orders of the agreements or rules of this Lease.

 

    	 	2

     

    

 

	11.	OBJECTIONABLE CONDUCT

 

As
a tenant in the Building, You will not engage in objectionable conduct. Objectionable conduct means behavior which makes or will
make the Apartment or the Building less fit to live in for You or other occupants. It also means anything which interferes with
the right of others to properly and peacefully enjoy their Apartments, or causes conditions that are dangerous, hazardous, unsanitary
and detrimental to other tenants in the Building. Objectionable conduct by You gives Owner the right to end this Lease.

 

	12.	SERVICES AND FACILITIES

 

	 	A.	Required Services. Owner will provide hot and
cold water and heat as required by law, repairs to the Apartment as set forth in this Lease and elevator service. You are not
entitled to any Rent reduction because of a stoppage or reduction of any of the above services unless it is provided by law.
	 	 	 
	 	B.	Utilities included in the Rent: water, sewer,
and heat.
	 	 	 
	 	C.	Electricity and Other Utilities. You have the
responsibility to pay for all electricity and or gas used to operate all appliances in your Apartment including but not limited
to the stove, refrigerator, air conditioning units, if any, and all lighting fixtures and any other equipment and appliances operated
by electricity.
	 	 	 
	 	D.	Appliances. Appliances supplied by Owner in the
Apartment are for your use. The appliances will be maintained, repaired, or replaced by the Owner unless the cause for such repair
or replacement is the result of Your act or neglect in which case You shall be responsible to repair or replace the appliances.

 

	13.	INABILITY TO PROVIDE SERVICES

 

Because
of a strike, labor trouble, national emergency, inability to procure material or labor riots, failure of electrical power, government
laws or regulations, repairs, acts of God, casualty or any other cause beyond Owner’s reasonable control, Owner may not
be able to provide or may be delayed in providing services or in making any repairs to the Building. In any case of these events,
any rights You may have against Owner are only those rights which are allowed by laws in effect when the reduction in service
occurs.

 

	14.	ENTRY TO APARTMENT

 

During
reasonable hours and with reasonable notice, except in emergencies, Owner may enter the Apartment for the following reasons:

 

(A)
To erect, use and maintain pipes and conduits in and through the walls and ceilings of the Apartment; to inspect the Apartment
and to make any necessary repairs or changes Owner decides are necessary. Your Rent will not be reduced because of any of this
work, unless required by Law.

 

(B)
To show the Apartment to persons who may wish to become owners or lessees of the entire Building or may be interested in lending
money to Owner;

 

(C)
For three (3) months before the end of the Lease, to show the Apartment to persons who wish to rent or purchase it;

 

(D)
If during the last month of the Lease You have moved out and removed all or almost all of your property from the Apartment, Owner
may enter to make changes, repairs, or redecorations. Your Rent will not be reduced for that month and this Lease will not be
ended by Owner’s entry.

 

(E)
if at any reasonable time You are not personally present to permit Owner or Owner’s representative to enter the Apartment
and entry is necessary or allowed by law or under this lease, Owner or Owner’s representatives may nevertheless enter the
Apartment upon reasonable prior notice. Owner may enter by force in an emergency without prior notice. Owner will not be responsible
to You, unless during this entry, Owner or Owner’s representative is negligent or misuses your property.

 

    	 	3

     

    

 

	15.	ASSIGNING; SUBLETTING; ABANDONMENT

 

(a)
Assigning and Subletting. You cannot assign this Lease or sublet the Apartment without Owner’s advance written consent
in each instance to a request made by You. Owner may refuse to consent to a lease assignment or a sublet of the Apartment for
any reason or no reason. The apartment may not be used in whole or in part as a hotel, bed and breakfast, hostel or for other
forms of short-term stays or transient occupancy.

 

The
Demised Premises shall not be listed or advertised in full or in part in any form of media for any purpose. Any breach of the
provisions of this paragraph 15 is a material breach under the terms of this lease. Landlord may at its sole option, terminate
this lease upon thirty (30) days’ notice if Tenant violates the provisions of this Paragraph,

 

(b)
Notice Prior to Vacating & Abandonment. You must notify the Owner writing sixty (60) days prior to the expiration of
the lease if you do not wish to renew. If You do not provide notice and access as required under the terms of this Lease and the
apartment is not re-rented upon Your vacatur or lease expiration, You will continue to be responsible for payment of rent for
the later of: sixty (60) days from the lease expiration date or sixty (60) days from the date of vacatur, unless the apartment
is re-rented, whichever is sooner. If You move out of the Apartment (abandonment) before the end of this Lease without the consent
of Owner, this Lease will not be ended. You will remain responsible for each monthly payment of Rent as it becomes due until the
end of this Lease, provided you have complied with the required sixty (60) day notice and access provisions. In the event you
have not complied with the sixty (60) day written notice and access provision, You will be responsible for payment of Rent until
the later of sixty (60) days after the lease expiration date or sixty (60) days after vacatur. In the case of abandonment, your
responsibility for Rent will end only if Owner chooses to end this Lease for default as provided in Article 16.

 

	16.	DEFAULT

 

(1)
You shall be in default under the Lease if You act in any of the following ways:

 

(a)
You fail to carry out any agreement or provision of this Lease other than the agreement or provision to pay Rent;

 

(b)
You or another occupant of the Apartment behaves in an objectionable manner;

 

(c)
You do not take possession or move into the Apartment five (5) days after the beginning of this Lease;

 

(d)
You and other legal occupants of the Apartment move out permanently before this Lease ends;

 

(e)
If the Demised Premises is listed or advertised for short-term or transient occupancy or any other purpose.

 

If
You do default in any one of these ways, other than a default in the agreement to pay Rent, or default under 16 (l) (e) Owner
may serve You with a written notice to stop or correct the specified default within five (5) days, or declare this lease terminated.
If you are served with a notice to correct or stop the activity, then you must either stop or correct the default within five
(5) days, or, if You need more than five (5) days, You must begin to correct the default within five (5) days and continue to
do all that is necessary to correct the default as soon as possible.

 

(2)
If You do not stop or begin to correct a default within five (5) days, or if Owner declares this lease terminated. You then
must move out of the Apartment. Even though this Lease ends, You will remain liable to Owner for unpaid Rent up to the end of
this Lease, holdover rent after the Lease ends, and damages caused to Owner after that time as stated in Article 17 and 19.

 

Notwithstanding
anything contained herein to the contrary, in the event the nature of the default constitutes an emergency, which shall be defined
as a condition in which there is imminent danger of harm to the Building or of harm to any person, You shall have one (1) day
to either stop or cure the default and no further notice of default shall be required. In the event of an emergency and in the
event You fail to cure the default that caused the emergency, at the option of the Owner, Owner may cure the default and bill
You as additional rent for Owner’s reasonable costs to cure said default.

 

(3)
If You do not pay your Rent when this Lease requires after a personal demand for Rent has been made, or within three (3) days
after a statutory written demand for Rent has been made, or if the Lease ends, Owner may do the following: (a) enter the Apartment
and retake possession of it if You have moved out; or (b) go to court and ask that You and all other occupants in the Apartment
be compelled to move out.

 

Once
this Lease has been ended, whether because of default or otherwise. You give up any right You might otherwise have to reinstate
the Lease.

 

(4)
If you utilize, list or advertise in an attempt to utilize the Demised Premises for such use in whole or in part as a hotel, bed
and breakfast, hostel or other forms of short-term stays or transient occupancies, no second default notice shall be required
whether or not the default was cured and whether or not the first default notice was for the same or prior incident.

 

Notwithstanding
anything to the contrary herein, Landlord may proceed to give five (5) days’ notice of termination of the lease whether
or not such default is cured, and you remain responsible for payment of rent until the sooner of the date the apartment is re-rented
or the end of the lease provided you have vacated.

 

    	 	4

     

    

 

	17.	REMEDIES OF OWNER AND YOUR LIABILITY

 

If
this Lease is ended by Owner because of your default, the following are the rights and obligations of You and Owner.

 

	 	a)	Once You are out, Owner may re-rent the Apartment or
any portion of it for a period of time which may end before or after the ending date of this Lease. Owner may re-rent to a new
tenant at a lesser rent or may charge a higher rent than the Rent in this Lease.
	 	 	 
	 	b)	Whether the Apartment is re-rented or not, You must
pay to Owner as damages:

 

	 	i)	The difference between the Rent in this Lease and the
amount, if any, of the rents collected in any later lease or leases of the Apartment for what would have been the remaining period
of this Lease; and
	 	 	 
	 	ii)	Owner’s expenses for attorney’s fees, advertisements,
broker’s fees and the cost of putting the Apartment in good condition for re-rental.

 

	 	c)	You shall pay all damages due in monthly installments
on the Rent day established in this Lease. Any legal action brought to collect one or more monthly installments of damages shall
not prejudice in any way Owner’s right to collect the damages for a later month by a similar action. If the Rent collected
by Owner from a subsequent tenant of the Apartment is more than the unpaid Rent and damages which You owe Owner, You cannot receive
the difference. Owner’s failure to re-rent to another tenant will not release or change your liability for damages, unless
the failure is due to Owner’s deliberate inaction.

 

	18.	ADDITIONAL OWNER REMEDIES

 

If
You do not do everything You have agreed to do, or if You do anything which shows that You intend not to do what You have agreed
to do, Owner has the right to ask a Court to make You carry out your agreement or to give the Owner such other relief as the Court
can provide. This is in addition to the remedies in Article 16 and 17 of this Lease.

 

	19.	FEES AND EXPENSE

 

A. Owner’s
Right. You must reimburse Owner for any of the following reasonable fees and expenses incurred by Owner:

 

(1)
Making any reasonable repairs to the Apartment or the Building which result from misuse or negligence by You or persons who live
with You, visit, or work for You;

 

(2)
Repairing or replacing any appliance damaged by Your use.

 

(3)
Correcting any violations of city, state or federal laws or orders and regulations of insurance rating organizations concerning
the Apartment or the Building which You or persons who live with You, visit You, or work for You have caused;

 

(4)
Any reasonable legal fees and disbursements for legal actions or proceedings brought by Owner against You because of a Lease default
by You or for defending lawsuits brought against Owner because of your actions;

 

(5)
Removing all of your property after this Lease is ended;

 

(6)
All other reasonable fees and expenses incurred by Owner because of your failure to obey any other provisions and agreements of
this Lease. These fees and expenses shall be paid by You to Owner as additional rent within five (5) days after You receive Owner’s
bill or statement. If this Lease has ended when these fees and expenses are incurred, You will still be liable to Owner for the
same amount as damages.

 

B.
If You shall fail to pay all or any part of any installment of Rent for more than ten (10) days after the same shall have
become due and payable, You shall be in default of this Lease and shall pay as additional rent hereunder to Landlord a late
charge of four (4) cents for each dollar of the amount of Rent which shall not have been paid to the Owner within such ten
(10) days after becoming due and payable. The late charge payable pursuant to this Article 19 shall be (i) payable by You on
demand by the Owner but in no event later than the next date for the payment of Rent and (ii) without prejudice to any of
Owner’s rights and remedies hereunder at law or in equity for nonpayment or late payment of Rent. The provisions of
this Article shall not be construed in any way to extend the grace periods or notice periods provided for in any of the other
Articles of this Lease. If you fail to pay any late charge due and owing, the Owner shall have the same rights and remedies
under the Lease as in the case of non-payment of rent.

 

    	 	5

     

    

 

C.
You recognize and agree that the damage to Owner resulting from any failure by You to timely surrender possession of the Demised
Premises upon the Expiration Date will be substantial, will exceed the amount of monthly installments of Rent payable hereunder
and will be impossible to accurately measure. You therefore agree that if possession of the Demised premises is not surrendered
to Owner with twenty-four (24) hours after the Expiration Date or sooner termination of the Lease, in addition to any other rights
or remedy Owner may have hereunder or at law, You shall pay to Owner for each month and for each portion of any month during which
You hold over in the Demised Premises after the Expiration Date or sooner termination of this Lease, a sum equal to two (2) times
the aggregate of the monthly installment of the Rent which was payable under this Lease during the last month of the term of the
Lease. Nothing herein contained shall be deemed to permit You to retain possession of the Demised Premises after the Expiration
Date or sooner termination of this Lease and no acceptance by the Owner of payments from You after the Expiration Date or sooner
termination of the Lease shall be deemed to be other than on account of the amount to be paid by You in accordance with the provisions
of this Article, which provisions shall survive the Expiration Date or sooner termination of this Lease.

 

D.
You hereby agree to pay all reasonable attorney fees and disbursements which the Owner shall incur if You are in default
under this Lease whether or not the Owner terminates this Lease due to Your default.

 

	20.	PROPERTY LOSS, DAMAGES OR INCONVENIENCE

 

Unless
caused by the negligence or misconduct of Owner or Owner’s agents or employees, Owner or Owner’s agents and employees
are not responsible to You for any of the following: (1) any loss of or damage to You or your property in the Apartment or the
Building due to any accidental or intentional cause, even a theft or another crime committed in the Apartment or elsewhere in
the Building; (2) any loss of or damage to your property delivered to any employee of the Building (i.e., superintendent, etc.);
or (3) any damage or inconvenience caused to You by actions, negligence or violations of a Lease by any other tenant or person
in the Building except to the extent required by law.

 

Owner
will not be liable for any temporary interference with tight, ventilation, or view caused by construction by or in behalf of Owner.
Owner will not be liable for any such interference on a permanent basis caused by construction on any parcel of land not owned
by Owner. Also. Owner will not be liable to You for such interference caused by the permanent closing, darkening or blocking up
of windows, if such action is required by law. None of the foregoing events will cause a suspension or reduction of the Rent or
allow You to cancel the Lease.

 

	21.	FIRE OR CASUALTY

 

A.
If the Apartment becomes unusable, in part or totally, because of fire, accident or other casualty provided that You are not in
default of this Lease and provided that the fire, accident, or other casualty is not caused by your acts, negligence, or misconduct,
this Lease will continue unless ended by Owner under C below or by You under D below. But the Rent will be reduced immediately.
This reduction will be based upon the part of the Apartment which is unusable.

 

B.
Owner will repair and restore the Apartment, unless Owner decides to take actions described in subparagraph C below.

 

C.
After a fire, accident or other casualty in the Building, Owner may decide to tear down the Building or to substantially rebuild
it. In such case, Owner need not restore the Apartment but may end this Lease. Owner may do this even if the Apartment has not
been damaged, by giving You written notice of this decision within forty-five (45) days after the date when the damage occurred.
If the Apartment is usable when Owner gives You such notice, this Lease will end 60 days from the last day of the calendar month
in which You were given the notice.

 

D.
If the Apartment is completely unusable or substantially damaged because of fire, accident or other casualty and it is not repaired
in one hundred eighty (180) days, You may give Owner written notice that You end the Lease provided that you are not in default
of this Lease and provided that the fire, accident, or other casualty is not caused by your acts, negligence, or misconduct. If
You give that notice, this Lease is considered ended on the day that the fire, accident or casualty occurred. Owner will refund
your security deposit and the pro-rate portion of Rent paid for the month in which the casualty happened.

 

E.
Unless prohibited by the applicable insurance policies, to the extent that such insurance is collected, You and Owner release
and waive all right of recovery against the other or anyone claiming through or under each by way of subrogation.

 

    	 	6

     

    

 

	22.	PUBLIC TAKING

 

The
entire Building or a part of it can be acquired (condemned) by any government or government agency for a public or quasi-public
use or purpose. If this happens, this Lease shall end on the date the government or agency take title, You shall have no claim
against Owner for any damage resulting; You also agree that by signing this Lease, You assign to Owner any claim against the Government
or Government agency for the value of the unexpired portion of this Lease.

 

	23.	SUBORDINATION CERTIFICATE AND ACKNOWLEDGMENTS

 

All
leases and mortgages of the Building or of the land on which the Building is located, now in effect or made after this Lease is
signed, come ahead of this Lease. In other words, this Lease is “subject and subordinate to” any existing or future
lease or mortgage on the Building or land, including any renewals, consolidations, modifications and replacements of these leases
or mortgages, If certain provisions of any of these leases or mortgages come into effect, the holder of such lease or mortgage
can end this Lease. If this happens, You agree that You have no claim against Owner or such lease or mortgage holder. If Owner
requests, You will sign promptly an acknowledgment of the “subordination” in the form that Owner requires.

 

You
also agree to sign (if accurate) a written acknowledgment to any third party designated by Owner that this Lease is in effect,
that Owner is performing Owner’s obligations under this Lease and that you have no present claim against Owner.

 

	24.	TENANT’S RIGHT TO LIVE IN AND USE THE APARTMENT

 

If
You pay the Rent and any required additional rent on time and You do everything You have agreed to do in this Lease, your tenancy
cannot be cut off before the Expiration Date, except as provided for in Articles 21, 22, and 23. Owner covenants and agrees with
You that upon You paying the Rent and any additional rent and observing and performing all the terms, covenants, and conditions
of this Lease on Your part to be performed and observed, You may peaceably and quietly enjoy the Apartment, subject nevertheless
to the terms and conditions of the Lease.

 

	25.	RENEWAL

 

In
the event that Owner chooses to offer a renewal lease then You shall be required to either (A) execute and deliver a renewal lease
no later than sixty (60) days prior to the expiration date of Your Lease, or (B) give Owner sixty (60) days written notice of
Your intention to vacate the unit, which notice shall be received no later than sixty (60) days prior to the expiration date of
Your Lease. Moreover, You agree to comply with all the rules and regulations promulgated by Owner and shall pay any lawful
rent increase.

 

	26.	BILLS AND NOTICE

 

A. Notices
to You. Any notice from Owner or Owner’s agent or attorney will be considered properly given to You if it (1) is in
writing; (2) is signed by or in the name of Owner or Owner’s agent; and (3) is addressed to You at the Apartment and
delivered to You personally or sent by registered or certified mail to You at the Apartment. The date of service of any
written notice by Owner to you under this agreement is the date of delivery or mailing of such notice.

 

13.
Notices to Owner. If You wish to give a notice to Owner, You must write it and deliver it or send it by registered or certified
mail to Owner at the address noted on page 1 of this Lease or at another address of which Owner or Agent has given You written
notice.

 

	27.	GIVING UP RIGHT TO TRIAL BY JURY AND COUNTERCLAIM

 

A.
Both You and Owner agree to give up the right to a trial by jury in a court action, proceeding or counter claim on any matters
concerning this Lease, the relationship of You and Owner as Tenant and Landlord or your use or occupancy of the Apartment. This
Agreement to give up the right to a jury trial does not include claims for personal injury or property damage.

 

B.
If Owner begins any court action or proceeding against You which asks that You be compelled to move out, You cannot make a counterclaim
in the same action or proceeding Owner begins against You.

 

	28.	NO WAIVER OF LEASE PROVISIONS

 

A.
Even if Owner accepts your Rent or fails once or more often to take action against You when You have not done what You have agreed
to do in this Lease, the failure of Owner to take action or Owner’s acceptance of Rent does not prevent Owner from taking
action at a later date if You again do not do what You have agreed to do.

 

B.
Only a written agreement between You and Owner can waive any violation of this Lease.

 

C.
If You pay and Owner accepts an amount less than all the Rent due, the amount received shall be considered to be in payment of
all or a part of the earliest Rent due. It will not be considered an agreement by Owner to accept this lesser amount in full satisfaction
of all of the Rent due.

 

    	 	7

     

    

 

D.
Any agreement to end this Lease and also to end the rights and obligations of You and Owner must be in writing, signed by You
and Owner or Owner’s agent. Upon execution of such agreement, You shall deliver the keys to the Apartment back to the
Owner. Even if You give back the keys to the Apartment and they are accepted by any employee, or agent, or Owner, this Lease
is not ended without a written agreement.

 

	29.	CONDITION OF THE APARTMENT

 

When
You signed this Lease, You did not rely on anything said by Owner, Owner’s agent or superintendent about the physical condition
of the Apartment, the Building or the land on which it is built. You did not rely on any promises as to what would be done, unless
what was said or promised is written in this Lease and signed by both You and Owner. Before signing this Lease, You have inspected
the Apartment and You accept it in its present condition “as is,” except for any condition which You could not reasonably
have seen during your inspection. Owner has not promised to do any work in the Apartment.

 

	30.	OTHER PROVISIONS

 

A.
This Lease shall be governed by the laws of the State of New York.

 

B.
In the event that any of the provisions of this Lease shall by court order be held invalid or in contravention of any of the laws
of the State of New York or the United States government, such invalidation shall not serve to effect the remaining provisions
of this Lease.

 

C.
In the event the Building is converted to the condominium form of ownership pursuant to a condominium declaration and by-laws,
You hereby agree to abide by the provisions of such declaration and by-laws as they may be amended from time to time.

 

D.
Tenant is hereby advised that Owner may exercise his rights to sell the building to another Owner who may decide to demolish the
building, or Owner may decide to demolish the building himself. In the event that Owner decides to exercise his rights under this
demolition clause, Owner agrees to give You one hundred twenty (120) days written notice to vacate, (the “Vacate Notice”),
the Demised Premises. You agree that upon such notice, You will make arrangements to vacate the unit within one hundred twenty
(120) days of the mailing date of the Vacate Notice. In the event that said vacate date is prior to the termination date of your
Lease and you vacate within said time period, then, Owner shall pay to You within thirty (30) days of the date You vacate the
Premises, the amount which is equivalent to three (3) months rent, plus any and all remaining funds paid in advance for rent along
with the Security Deposit, reduced by any amount You may owe to Owner pursuant to the terms of this Lease. You agree that You
have not relied on any advertising material, brochures or oral statements that may be contrary to the information set forth above.
Accordingly, You have initialed this provision of the Lease in acknowledgement and express agreement of its terms. /s/
James Coleman (Initials of Tenant).

 

	31.	DEFINITIONS

 

A.
Owner: The term “Owner” means the person or organization receiving or entitled to receive Rent from You for the
Apartment at any particular time other than a rent collector or managing agent of Owner. “Owner” includes the owner
of the land or Building, a lessor, or sublessor of the land or Building and a mortgagee in possession. It does not include a former
owner. even if the former owner signed this Lease.

 

B.
You: The Term “You” means the person or persons signing this Lease as Tenant and the successors and assigns, if
any, of the signer. This Lease has established a tenant-landlord relationship between You and Owner.

 

	32.	SUCCESSOR INTERESTS

 

The
agreements in this Lease shall be binding on Owner and You and on those who succeed to the interest of Owner or You by law, by
approved assignment or by transfer.

 

	33.	PRO-RATION

 

Rent
will be pro-rated as of the time you and Owner agree on or about April 15. 2017.

 

    	 	8

     

    

 

Owners’
Rules and Regulations are included as a part of this Lease and are attached hereto.

 

TO
CONFIRM OUR AGREEMENTS, OWNER AND YOU RESPECTIVELY SIGN THIS LEASE AS OF THE DAY AND YEAR FIRST WRITTEN ON PAGE 1.

 

	Witnesses	 	OWNER:
	 	 	41
    JOHN STREET EQUITIES LLC
	 	 	 
	 	 	 
	 	 	By:
    Time Equities, Inc. as agent
	 	 	 
	 	 	TENANT:
	 	 	YANGTZE
    RIVER DEVELOPMENT LTD
	 	 	 
	 	 	/s/
    James Coleman 
	 	 	By:
    James Coleman – Director

 

    	 	9

     

    

 

GUARANTY

 

The
undersigned Guarantor guarantees to Owner the strict performance of and observance by Tenant of all the agreements, provisions
and rules in the attached Lease. Guarantor agrees to waive all notices when Tenant is not paying Rent or not observing and complying
with all of the provisions of the attached Lease. Guarantor agrees to be equally liable with Tenant so that Owner may sue Guarantor
directly without first suing Tenant. The Guarantor further agrees that his guaranty shall remain in full effect even if the Lease
is renewed, changed or extended in any way and even if Owner has to make a claim against Guarantor. Owner and Guarantor agree
to waive trial by jury in any action, proceeding or counterclaim brought against the other on any matters concerning the attached
Lease or the Guaranty.

  

Dated,
New York City  ____________________, 2017

 

	_____________________________
    Witness	/s/ JAMES
COLEMAN                   Guarantor
	 	 
	 	JAME
    COLEMAN
	 	 
	Address	99
    Oakdale Road, Roslyn Heights, NY 11577.

 

	Apartment	2A
	 	 
	Premises	41
    John Street, New York, NY, 10038
	 	 
	Tenants	Yangtze
    River Development LTD
	 	 
	Expires	March
    31, 2018

 

    	 	10

     

    

 

ATTACHED
RULES AND REGULATIONS WHICH ARE 

A PART OF THE LEASE AS PROVIDED BY ARTICLE 10

 

Public
Access Ways

 

1.
(a) Tenants shall not block or leave anything in or on fire escapes, the sidewalks, entrances, driveways, elevators, stairways,
or halls. Public access ways shall be used only for entering and leaving the Apartment and the Building. Only those elevators
and passageways designated by Owner can be used for deliveries.

 

     (b)
Baby carriages, bicycles or other property of Tenants shall not be allowed to stand in the halls, passageways, public areas or
courts of the Building.

 

Bathroom
and Plumbing Fixtures

 

2.
The bathrooms, toilets, sinks, laboratories and plumbing fixtures shall only be used for the purposes for which they were designed
or built; sweepings, rubbish bags, acids or other substances shall not be placed in them.

 

Refuse

 

3.
Carpets, rugs or other articles shall not be hung or shaken out of any window of the Building. Tenants shall not sweep or throw
or permit to be swept or thrown any dirt, garbage or other substances out of the windows or into any of the halls, elevators or
elevator shafts. Tenants shall not place any articles outside of the Apartment or outside of the Building except in safe containers
and only at places chosen by Owner.

 

Laundry

 

4.
Tenants shall not dry or air clothes on the roof, outside the windows, or in any common areas of the building.

 

Keys
and Locks

 

5.
Owner may retain a pass key to the Apartments. Tenants may install on the entrance of the Apartment an additional lock of
not more than three inches in circumference. Tenants may also install a lock on any window but only in the manner provided by
law. Immediately upon making any installation of either type, Tenants shall notify Owner or Owner’s agent and shall
give Owner or Owner’s agent a duplicate key. If changes are made to the locks or mechanism installed by Tenants,
Tenants must deliver keys to Owner. At the end of this Lease, Tenants must return to Owner all keys either furnished or
otherwise obtained. If Tenants lose or fail to return any keys which were furnished to them, Tenants shall pay to Owner the
cost of replacing them.

 

Noise
& Odors

 

6.
Tenants, their families, guests, employees, or visitors shall not make or permit any disturbing noises in the Apartment or Building
or permit anything to be done that will interfere with the rights, comforts or convenience of other tenants. Also, Tenants shall
not play a musical instrument or operate or allow to be operated a phonograph, radio, CD player, television set or VCR so as to
disturb or annoy any other occupant of the Building. No Tenant shall cause or permit any unusual or objectionable odors to be
produced upon or to emanate from their Apartment.

 

No
Projections

 

7.
A radio or television aerial may not be erected on the roof or outside wall of the Building without the written consent of Owner.
Also, awnings or other projections shall not be attached to the outside walls of the Building or to any balcony or terrace.

 

Floors

 

8.
Tenant shall cover the floors of the apartment with rugs or carpeting, or equally effective noise-reducing material, to the extent
of at least 80% of the floor area of each room excepting only kitchens, pantries, bathrooms, maid’s rooms, closets and foyer.
Such floor covering shall not be affixed to the floor by any staples, or glue or any other material that may cause damage to the
floor upon removal of the covering. The installation of any permanent fixture on the floors shall be a violation of the terms
of this lease. Tenant shall be responsible for the cost of repairing the floor and returning it to its original condition.

 

    	 	11

     

    

 

Pets

 

9.
No pets, other than one dog or cat, caged birds or fish, (which do not cause a nuisance, health hazard or unsanitary conditions
of any kind) shall be kept in the Apartment, unless in each instance it be expressly permitted in writing by Owner. This consent,
if given, or the right to keep certain pets in a Tenant’s Apartment can be taken back by Owner at any time for good cause,
which may include but not be limited to reasons relating to safety, damage to the Building, the disturbance of other Tenants,
on reasonably given notice. Unless carried or on a leash, a dog shall not be permitted on any elevator or in any public portion
of the Building. BECAUSE OF THE HEALTH HAZARD AND POSSIBLE DISTURBANCE OF OTHER TENANTS WHICH ARISE FROM THE UNCONTROLLED PRESENCE
OF ANIMALS, ESPECIALLY DOGS, IN THE BUILDING, THE STRICT ADHERENCE TO THE PROVISIONS OF THIS RULE BY EACH TENANT IS A MATERIAL
REQUIREMENT OF EACH LEASE. TENANT’S FAILURE TO OBEY THIS RULE SHALL BE CONSIDERED A SERIOUS VIOLATION OF AN IMPORTANT OBLIGATION
BY TENANT UNDER THIS LEASE. OWNER MAY ELECT TO END THIS LEASE BASED UPON THIS VIOLATION.

 

Moving/Use
of the Elevators

 

10.
Tenants can use the elevator to move furniture, possessions and/or freight only on designated days and hours as determined by
the Owner. Owner shall not be liable for any costs, expenses or damages incurred by Tenants in moving because of delays caused
by the unavailability of the elevator.

 

Window
Guards

 

11.
IT IS A VIOLATION OF LAW TO REFUSE, INTERFERE WITH INSTALLATION OR REMOVE WINDOW GUARDS WHERE REQUIRED.

 

Recycling

 

12.
Tenants shall comply with the recycling laws of the City of New York. Recyclable materials, including papers, bottles, glass,
plastic and cans shall be sorted by the Tenants and shall in placed in the designated containers for each such item in the storage
area for recyclables in the Building.

 

Air
Conditioning Units

 

13.
No air conditioning units may be installed by a tenant in an apartment without the approval of the Owner.

 

Substances

 

14.
No Tenant or any of his or her agents, servants, employees, guests shall at any time bring into or keep in his or her apartment
any inflammable, combustible or explosive fluid, materials, chemicals or substances.

 

Home
Occupations

 

15.
In the event any apartment is used for home occupation purposes which are permitted by the New York City Zoning Resolution, patients,
clients or other invitees shall no be permitted for any purpose to wait in the lobby, public hallways or vestibule of the building.

 

Exterminator

 

16.
The Owner or its managing agent, and any contractor or workman authorized by the Owner or the managing agent may enter any room
or Apartment at any reasonable hour of the day, on at least one day’s prior notice to a Tenant for the purpose of inspecting
such Apartment for the presence of any vermin, insects or other pests and for the purpose of taking such measures as may be necessary
to control or exterminate any such vermin, insects or other pests.

 

    	 	12

     

    

 

RIDER
NO. 1 TO RESIDENTIAL LEASE DATED MARCH 17, 2017 (THE “LEASE”) BETWEEN 41 JOHN STREET EQUITIES LLC, AS OWNER, AND YANGTZE
RIVER DEVELOPMENT LTD., AS TENANT(S), FOR THE DEMISED PREMISES LOCATED AT 41 JOHN STREET, APT #2A, NEW
YORK, NY 10038 (THE “APARTMENT”)

 

The
undersigned Tenants recognize that the rent for this apartment exceeds the amount for it to be rent stabilized and therefore this
Lease in not subject to rent regulation or control under the Rent Stabilization Law or Code. If under any law, regulation or code
now or hereinafter enacted, the undersigns’ tenancy and the rent under this Lease shall be required to be regulated or controlled
under the Rent Stabilization Law and/or Code, then the undersigned Tenants hereby agree to promptly execute a new lease with the
Owner which shall include the requirements of the Rent Stabilization Law and/or Code applicable to this Lease and the undersigns’
tenancy under the Lease. Such new Lease shall replace and supersede in its entirety the existing Lease for the Apartment.

 

	OWNER:	 
	41
    JOHN STREET EQUITI LLC	 
	 	 
	 	 
	By:
    Time Equities, Inc. as agent	 
	 	 
	TENANT:	 
	YANGTZE
    RIVER DEVELOPMENT LTD	 
	 	 
	/s/ James Coleman	 
	By:
    James Coleman,  Director	 

 

    	 	13

     

    

   

	 	Yangtze
                                         River Development LTD

                                                                                41
                                         John Street, Apt. 2A

                                                                                New
                                         York, NY, 10038
	 

  

		

        New
        York State

        DEPARTMENT
        OF STATE

        Division
        of Licensing Services

        P.O.
        Box 22001

        Albany,
        NY 12201-2001
	Customer
    Service: (518) 474-4429 www.dos.state.ny.us

 

New
York State Disclosure Form for Landlord and Tenant

 

	THIS
                           IS NOT A CONTRACT

 

New
York State law requires real estate licensees who are acting as agents of landlords and tenants of real property to advise the
potential landlords and tenants with whom they work of the nature of their agency relationship and the rights and obligations
it creates. This disclosure will help you to make informed choices about your relationship with the real estate broker and its
sales agents.

 

Throughout
the transaction you may receive more than one disclosure form. The law may require each agent assisting in the transaction to
present you with this disclosure form. A real estate agent is a person qualified to advise about real estate.

 

If
you need legal, tax or other advice, consult with a professional in that field.

 

Disclosure
                                         Regarding Real Estate 

Agency
Relationships

 

Landlord’s
Agent

 

A
landlord’s agent is an agent who is engaged by a landlord to represent the landlord’s interest. The landlord’s
agent does this by securing a tenant for the landlord’s apartment or house at a rent and on terms acceptable to the landlord.
A landlord’s agent has, without limitation, the following fiduciary duties to the landlord: reasonable care, undivided loyalty,
confidentiality, full disclosure, obedience and duty to account. A landlord’s agent does not represent the interests of
the tenant. The obligations of a landlord’s agent are also subject to any specific provisions set forth in an agreement
between the agent and the landlord. In dealings with the tenant, a landlord’s agent should (a) exercise reasonable skill
and care in performance of the agent’s duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known
to the agent materially affecting the value or desirability of property, except as otherwise provided by law.

	 	Tenant’s
                           Agent

 

A
tenant’s agent is an agent who is engaged by a tenant to represent the tenant’s interest. The tenant’s agent
does this by negotiating the rental or lease of an apartment or house at a rent and on terms acceptable to the tenant. A tenant’s
agent has, without limitation, the following fiduciary duties to the tenant: reasonable care, undivided loyalty, confidentiality,
full disclosure, obedience and duty to account. A tenant’s agent does not represent the interest of the landlord. The obligations
of a tenant’s agent are also subject to any specific provisions set forth in an agreement between the agent and the tenant.
In dealings with the landlord, a tenant’s agent should (a) exercise reasonable skill and care in performance of the agent’s
duties; (b) deal honestly, fairly and in good faith: and (c) disclose all facts known to the agent materially affecting the tenant’s
ability and/or willingness to perform a contract to rent or lease landlord’s property that are not consistent with the agent’s
fiduciary duties to the tenant.

 

Broker’s
Agents

 

A
broker’s agent is an agent that cooperates or is engaged by a listing agent or a tenant’s agent (but does not work
for the same firm as the listing agent or tenant’s agent) to assist the listing agent or tenant’s agent in locating
a property to rent or lease for the listing agent’s landlord or the tenant agent’s tenant. The broker’s agent
does not have a direct relationship with the tenant or landlord and the tenant or landlord can not provide instructions or direction
directly to the broker’s agent. The tenant and the landlord therefore do not have vicarious liability for the acts of the
broker’s agent. The listing agent or tenant’s agent do provide direction and instruction to the broker’s agent
and therefore the listing agent or tenant’s agent will have liability for the acts of the broker’s agent.

 

 

    	 	14

     

    

 

	Dual
Agent

 

A
real estate broker may represent both the tenant and the landlord if both the tenant and landlord give their in-formed consent
in writing. In such a dual agency situation, the agent will not he able to provide the full range of fiduciary duties to the landlord
and the tenant. The obligations of an agent arc also subject to any specific provisions set forth in an agreement between the
agent, and the tenant and landlord. An agent acting as a dual agent must explain carefully to both the landlord and tenant that
the agent is acting for the other party as well. The agent should also explain the possible effects of dual representation, including
that by consenting to the dual agency relationship the landlord and tenant are giving up their right to undivided loyalty. A
landlord and tenant should carefully consider the possible consequences of a dual agency relationship before agreeing to such
representation. A landlord or tenant may provide advance informed consent to dual agency by indicating the same on this form.

	 	Dual Agent with
                           Designated Sales Agents

                            

                           If the tenant and the landlord provide
                           their informed consent in writing, the principals and the real estate broker who represents both parties as a dual agent may
                           designate a sales agent to represent the tenant and
                           another sales agent to represent the landlord. A sales agent works under the supervision of the real estate broker. With the
                           informed consent in writing of the tenant and the landlord, the designated sales agent for the tenant will function as the
                           tenant’s agent representing the interests of and advocating on behalf of the tenant and the designated sales agent
                           for the landlord will function as the landlord’s agent representing the interests of and advocating on behalf of the
                           landlord in the negotiations between the tenant and the landlord. A designated sales agent cannot provide the full range of
                           fiduciary duties to the landlord or tenant. The designated sales agent must explain that like the dual agent under whose
                           supervision they function, they cannot provide undivided loyalty. A landlord or tenant should carefully consider the possible
                           consequences of a dual agency relationship with designated sales agents before agreeing to such representation. A landlord or
                           tenant may provide advance informed consent to dual agency with designated sales agents by indicating the same on this
                           form.

 

This
form was provided to me by  Clara Rose Dass (print name of licensee) of Time Equities Inc.

(print
name of company, firm or brokerage), a licensed real estate broker acting in the interest of the:

 

	☒	Landlord
    as a (check relationship below)	☐	Tenant
    as a (check relationship below)
	 	 	 	 
	 	☒
       Landlord’s agent	 	☐   
                                         Tenant’s agent

         

	 	☐
       Broker’s agent	 	☐    Broker’s
                                         agent

	 	 	 	 
	 	☐
       Dual agent
	 	 
	 	☐
      Dual agent with designated sales agent

  

For
advance informed consent to either dual agency or dual agency with designated sales agents complete section below:

 

☐   Advance informed consent dual agency

 

☐   Advance informed consent to dual
agency with designated sales agents

 

If
dual agent with designated sales agents is indicated above: ________________________ is appointed to represent the tenant;
and _______________________ is appointed to represent the seller in this transaction.

 

(I)(We)
_________________________________________ acknowledge receipt of a copy of this disclosure form: signature ☒
Lanlord(s) and or ☒ Tenants(s):

 

	 	/s/ James Coleman	 
	 	Tenant-Yangtze
River Development LTD - James Coleman	 
	 	 	 
	 	 	 
	 	Landlord-41
John Street Equities LLC, Time Equities Inc. as agent	 

 

  

	 Date:		 	Date: 	

 

 

15

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