Document:

Exhibit 10.13

 

LEASE AGREEMENT

 

THIS LEASE AGREEMENT is dated
for reference purposes only as of this 11th day of December 2020, between Jack Dymond Lathing Co., LLC, a California limited
liability company (“Landlord”), and the Tenant named below.

 

Summary of Basic Lease Terms

 

	Tenant:	Archer Aviation, Inc., a Delaware corporation
	 	 
	Tenant’s Representative, Address, and Telephone:	Archer Aviation, Inc.

1880 Embarcadero Road

Palo Alto, CA 94303

Attention: Adam Goldstein

Email: adam@flyarcher.com
	 	 
	Premises:	The interior portion of the Building, containing approximately 14,660 rentable square feet, shown on the drawing attached hereto as Exhibit A, more commonly known as 240 South Whisman Road, Mountain View, California 94041.
	 	 
	Project:	The project commonly known as Pillar Industrial Park consisting of the Premises, the Building and related outdoor parking, driveways and landscaping, situated on approximately 8.23 acres of land.
	 	 
	Building:	240 South Whisman Road

Mountain View, California 94041
	 	 
	Parcel:	Assessor Parcel Number: 160-64-002
	 	 
	Lease Term:	Approximately eighteen (18) months beginning on the Commencement Date and ending on the Expiration Date.
	 	 
	Commencement Date:	January 4, 2021 (subject to Paragraph 2.1 below)
	 	 
	Expiration Date	June 30, 2022 (subject to Paragraph 2.1 below)
	 	 
	Initial Monthly Gross Rent:	$25,655.00 (i.e., $1.75 per square foot per month)
	 	 
	Security Deposit:	$26,424.65, subject to the terms of Paragraph 5 below.
	 	 
	Brokers:	Landlord: Cushman & Wakefield
	 	 
	 	Tenant: Newmark Knight Frank
	 	 
	Parking Spaces:	Forty-nine (49) non-exclusive and non-designated spaces in the Project.
	 	 
	Exhibits:	A. Site Plan - Project

B. Space Plan - Premises

C. Premises Rules and Regulations

D. Electrical Work –– Plans and Specifications

E. Excluded Electrical Panel

 

    - 1 -

     

    

 

1.             Granting
Clause. In consideration of the obligation of Tenant to pay rent as herein provided and in consideration of the other terms, covenants,
and conditions hereof, Landlord leases to Tenant, and Tenant takes from Landlord, the Premises, to have and to hold for the Lease Term,
subject to the terms, covenants and conditions of this Lease.

 

2.             Acceptance
of Premises. Landlord shall deliver the Premises to Tenant on the Commencement Date professionally cleaned, with the mechanical,
electrical, plumbing, heating, ventilating and air conditioning systems in good working order, the Building structurally sound and the
roof water tight. If any aspect of the Premises in existence as of the Commencement Date does not conform to the foregoing delivery condition,
then Tenant may send written notice to Landlord within the first one hundred and eighty (180) days of the Lease Term, in which case Landlord
shall rectify the same at Landlord’s sole cost and expense. After such 180-day period, Landlord’s obligations with respect
to maintenance, repair and replacement of the Premises and the Building shall be solely as set forth in Paragraph 10 below. Except as
provided in this Paragraph 2 and as otherwise expressly provided in this Lease, Tenant shall accept the Premises in its “AS IS,
WHERE IS AND WITH ALL FAULTS” condition as of the Commencement Date, subject to all applicable laws, ordinances, regulations, covenants
and restrictions. Landlord has made no representation or warranty as to the suitability of the Premises for the conduct of Tenant’s
business, and Tenant waives any implied warranty that the Premises are suitable for Tenant’s intended purposes. Notwithstanding
anything to the contrary in in this Lease, Landlord has disclosed to Tenant that the electrical panel depicted on Exhibit E and labeled
 “No Power” has no power, and Landlord shall not be responsible under this Lease to repair the panel or provide power to the
panel.

 

2.1               
Early Access Period. Subject (i) Tenant’s payment of the Security Deposit and first month’s Gross Rent, and
(ii) Tenant providing certificates of insurance evidencing the coverage required under Paragraph 9 below, Landlord shall allow Tenant
early access to the Premises prior to the Commencement Date upon mutual execution of the Lease (the “Early Access Period”)
for moving in furniture and equipment, setting up its operations and performing the Electrical Work. The Early Access Period shall be
at least 30 days. If the Commencement Date in the Summary of Basic Lease Terms is fewer then 30 days after Landlord delivers early access
to Tenant under this Paragraph 2.1, then the Commencement Date shall be delayed to be the date that is 30 days after Landlord delivers
such access; provided, however, that in no event shall the Commencement Date be delayed beyond January 15, 2021 to accommodate a 30-day
Early Access Period. Tenant shall not be permitted to use the Premises for its normal business operations during the Early Access Period.
All terms and conditions of the Lease shall apply during the Early Access Period except that Tenant shall not be obligated to pay Gross
Rent but shall pay for any utilities used.

 

2.2               
Option to Extend the Lease Term. Subject to the absence of any Event of Default (or any default or breach with which the
giving of notice or the passage of time would constitute an Event of Default), the original Tenant under this Lease and any Permitted
Transferees shall have a one-time right to extend the initial Lease Term for a twelve (12) month period through and until July 4, 2023
(the “Option Term”), exercisable upon Tenant delivering to Landlord written notice no earlier than nine (9) months, and no
later than six (6) months, prior to the expiration of the initial Lease Term. During the Option Term, Tenant shall continue to lease the
Premises in accordance with all terms and conditions of this Lease, and the Gross Rent shall adjust in accordance with Paragraph 4.1 below.

 

    - 2 -

     

    

 

3.             Use.
The Premises shall be used only for warehouse, industrial and electronics testing and related legal uses necessary or incidental thereto
and any other permitted or legal use available to the Tenant. Tenant represents and warrants that it has obtained (or will obtain) all
required business licenses from the City of Mountain View and other agencies having jurisdiction over the Premises for Tenant’s
permitted use of the Premises. Tenant is solely responsible for ensuring that its use of the Premises conforms with all applicable land
use and zoning requirements. Tenant shall not conduct or give notice of any auction, liquidation, or going out of business sale on the
Premises. Tenant will use the Premises in a careful, safe and proper manner and will not commit waste, overload the floor or structure
of the Premises or subject the Premises to use that would damage the Premises. Tenant shall not permit any objectionable or unpleasant
odors, smoke, dust, gas, noise, or vibrations to emanate from the Premises, or take any other action that would constitute a nuisance
or would disturb, unreasonably interfere with, or endanger Landlord or any tenants of the Project. Tenant shall not be permitted to have
outside storage in the parking areas. Tenant, at its sole expense, shall use and occupy the Premises in compliance with all laws, including,
without limitation, the Americans With Disabilities Act, orders, judgments, ordinances, regulations, codes, directives, permits, licenses,
covenants and restrictions now or hereafter applicable to the Premises (collectively, the “Legal Requirements”). The Premises
shall not be used as a place of public accommodation under the Americans with Disabilities Act or similar state statutes or local ordinances
or any regulations promulgated thereunder, all as may be amended from time to time. In the event that Landlord receives written notice
from a governmental authority that the Premises is not in compliance with applicable Legal Requirements existing as of the Commencement
Date of this Lease and such non-compliance is not related to Tenant’s specific use of the Premises or Tenant-Made Alterations to
the Premises performed by Tenant, Landlord shall make such modifications as may be required by order or directive of applicable governmental
authority in order to bring the Premises into compliance with applicable Legal Requirements as of the date of this Lease without cost
or expense to Tenant. Furthermore, in the event Landlord receives notice that the Premises is not in compliance with applicable Legal
Requirements which come into effect after the Commencement Date of this Lease and such non-compliance is not related to Tenant’s
specific use of the Premises or Tenant-Made Alterations to the Premises performed by Tenant, Landlord shall make such modifications as
may be required by order or directive of applicable governmental authority in order to bring the Premises into compliance with applicable
Legal Requirements. Tenant shall, at its expense, make any alterations or modifications, within or without the Premises, that are required
by Legal Requirements related to Tenant’s specific use or occupation of the Premises (but not research, development or office use
in general) and in connection with any Tenant-Made Alterations or Tenant requests for governmental permits or approvals. Tenant will
not use or permit the Premises to be used for any purpose or in any manner that would void Tenant’s or Landlord’s insurance,
increase the insurance risk, or cause the disallowance of any sprinkler credits or the disallowance of the existing roof warranty. If
any increase in the cost of any insurance on the Premises is caused by Tenant’s specific use or occupation of the Premises (but
not warehouse, research, development or office use in general) or Tenant-Made Alterations, or because Tenant vacates the Premises prior
to the end of the Lease Term, then Tenant shall pay the amount of such increase to Landlord. Notwithstanding anything contained herein
to the contrary, Tenant has agreed to (1) use commercially reasonable efforts to obtain a permit for the Electrical Work described on
Exhibit D and (2) submit its request for a permit for the Electrical Work to the City of Mountain View no later than five (5) days after
execution of the Lease by Tenant. If the Tenant is unable to obtain the permit for the Electrical Work despite its commercially reasonable
efforts within ninety (90) days after Tenant executes the Lease (the “Permit Contingency Period”), then Tenant may terminate
this Lease upon (a) written notice to Landlord received prior to the expiration of the Permit Contingency Period and (b) payment of a
termination fee (the “Termination Fee”) of $25,000 to reimburse Landord for its costs and expenses related to the design,
planning, negotiation and documentation of the Lease transaction and all lease termination expenses. Upon such termination, Landlord
shall be entitled to retain any Gross Rent paid by Tenant prior to the date of such termination and to retain the Termination Fee. Landlord
and Tenant agree that the Termination Fee, and any Gross Rent paid by Tenant prior to termination, constitute a fair and reasonable approximation
of the costs and expenses incurred by Landlord in connection with the Lease transaction and the termination of the Lease. Tenant shall
provide Landlord with weekly updates on the status of the permit for the Electrical Work and, upon receipt of the permit from the City,
Tenant shall promptly provide Landlord with a copy of the same and waive in writing its right to terminate under this Paragraph 3. If
Tenant receives the permit for the Electrical Work during the Permit Contingency Period, or fails to send a notice of termination under
this Paragraph 3 before the expiration of the Permit Contingency Period, then this Lease shall continue in full force and effect, and
Tenant shall no longer have any right under this Paragraph 3 to terminate this Lease.

 

    - 3 -

     

    

 

4.             Gross
Rent. Tenant shall pay Gross Rent in the amount set forth on Page 1 of this Lease. The first month’s Gross Rent shall be due
and payable on the date hereof, and Tenant promises to pay to Landlord in advance, without demand, deduction or set-off, monthly installments
of Gross Rent on or before the first day of each calendar month succeeding the Commencement Date. Payments of Gross Rent for any fractional
calendar month shall be prorated based on the actual number of days in the applicable calendar month. All payments required to be made
by Tenant to Landlord hereunder (or to such other party as Landlord may from time to time specify in writing) shall be made by check
or by Electronic Fund Transfer (“EFT”) of immediately available federal funds before 11:00 a.m., Pacific Time at such place,
within the continental United States, as Landlord may from time to time designate to Tenant in writing. The obligation of Tenant to pay
Gross Rent and other sums to Landlord and the obligations of Landlord under this Lease are independent obligations. Tenant shall have
no right at any time to abate, reduce, or set-off any rent due hereunder except as may be expressly provided in this Lease. If Tenant
is delinquent in any monthly installment of Gross Rent for more than 5 days, Tenant shall pay to Landlord on demand a late charge equal
to 5 percent (5%) of such delinquent sum; provided, however, for the first such late payment per twelve (12) month period, no late charge
shall be assessed unless such failure continues for five (5) days after written notice thereof. The provision for such late charge shall
be in addition to all of Landlord’s other rights and remedies hereunder or at law and shall not be construed as a penalty.

 

4.1               
Adjustments in Gross Rent. The monthly Gross Rent payable by Tenant under this Lease shall increase by three percent (3%)
on each anniversary of the Commencement Date during which the Lease Term (including any Option Term) is in effect. Accordingly, on January
4, 2022, the monthly Gross Rent payable by Tenant shall be increased to $26,424.65 and, if the Option Term is exercised pursuant to Paragraph
2.2 above, then on January 4, 2023, the monthly Gross Rent payable by Tenant shall be increased to $27,217.39.

 

5.             Security
Deposit. The Security Deposit shall be held by Landlord as security for the performance of Tenant’s obligations under this
Lease. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default.
Upon each occurrence of an Event of Default (hereinafter defined), Landlord may use all or part of the Security Deposit to pay delinquent
payments due under this Lease, and the cost of any damage, injury, expense or liability caused by such Event of Default, without prejudice
to any other remedy provided herein or provided by law. Tenant shall pay Landlord on demand the amount that will restore the Security
Deposit to its original amount. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest
shall accrue thereon. The Security Deposit shall be the property of Landlord, but shall be paid to Tenant when Tenant’s obligations
under this Lease have been completely fulfilled. Landlord shall not be required to keep all or any part of the Security Deposit separate
from its general accounts. Tenant waives any limitations set forth in California Civil Code Section 1950.7 limiting the use to which
a security deposit may be applied. Landlord shall be released from any obligation with respect to the Security Deposit upon transfer
of this Lease and the Premises to a person or entity assuming Landlord’s obligations under this Paragraph 5, provided Landlord
transfers or credits the amount of the Security Deposit to such person or entity. Within forty-five (45) days after the expiration or
termination of this Lease, Landlord shall return to Tenant that portion of the Security Deposit not used or applied by Landlord along
with a written accounting of any application of the amounts used or applied by Landlord.

 

6.             No Additional Rent. The Gross Rent payable under this Lease is inclusive of any Tenant contribution to the costs and expenses
incurred by Landlord during the Lease Term with respect to the ownership, maintenance, repair, replacement and operation of the Premises
and the Project; provided, however, subject to Paragraphs 9 and 15, Tenant shall be responsible for reimbursing Landlord for the entire
cost of any maintenance, repairs, or replacement to address damage to the Premises, the Building or the Project caused by Tenant, its
agents, employees, contractors or invitees.

 

7.             Taxes. The Gross Rent payable under this Lease is inclusive of any Tenant contribution toward taxes, assessments and governmental
charges that accrue against the Parcel during the Lease Term. However, if any such tax or excise is levied or assessed directly against
Tenant or results from any Tenant-Made Alterations, then Tenant shall be responsible for and shall pay the same at such times and in such
manner as the taxing authority shall require. Tenant shall be liable for all taxes levied or assessed against any personal property or
fixtures placed in the Premises, whether levied or assessed against Landlord or Tenant.

 

8.             Utilities.
Tenant shall pay for all water, gas, electricity, heat, light, power, telephone, internet, sewer, sprinkler services, refuse and trash
collection, janitorial services, and other utilities and services used on the Premises billed or metered separately to the Premises,
all maintenance charges for utilities, and any storm sewer charges or other similar charges for utilities imposed by any governmental
entity or utility provider, together with any taxes, penalties, surcharges or the like pertaining to Tenant’s use of the Premises.
No interruption or failure of utilities shall result in the termination of this Lease or the abatement of rent.

 

    - 4 -

     

    

 

9.             Insurance.
Landlord shall maintain all risk or special form property insurance covering the full replacement cost of the Building and commercial
general liability insurance on the Project in forms and amounts customary for properties substantially similar to the Project (but in
no event less than coverage providing, on an occurrence basis, for a minimum amount of $1,000,000 per occurrence and $2,000,000 general
aggregate), subject to commercially reasonable deductibles. Landlord may, but is not obligated to, maintain such other insurance and
additional coverages as it may deem necessary, including but not limited to, rent loss insurance. The Project or Building may be included
in a blanket policy (in which case the cost of such insurance allocable to the Project or Building will be determined by Landlord based
upon the total insurance cost calculations). Tenant shall reimburse Landlord for any increased premiums or additional insurance which
Landlord reasonably deems necessary as a result of Tenant’s specific and unique use of the Premises (but not including general
warehouse or industrial use) or as a result of any Tenant-Made Alterations.

 

9.1               
Tenant Insurance. Tenant, at its expense, shall maintain during the Lease Term the following insurance, at Tenant’s
sole cost and expense: (1) commercial general liability insurance applicable to the Premises and its appurtenances providing, on an occurrence
basis, a minimum amount of $1,000,000 per occurrence and $2,000,000 general aggregate; (2) all risk or special form property insurance
covering the full replacement cost of all property and improvements installed or placed in the Premises by Tenant; (3) workers’
compensation insurance as required by the state in which the Premises is located and in amounts as may be required by applicable statute
and shall include a waiver of subrogation in favor of Landlord; (4) employers liability insurance of at least $1,000,000, (5) business
automobile liability insurance having a combined single limit of not less than $1,000,000 per occurrence insuring Tenant against liability
arising out of the ownership maintenance or use of any owned, hired or nonowned automobiles, (6) business interruption insurance with
a limit of liability representing loss of at least approximately 6 months of income, and (7) Excess or Umbrella Liability of $5,000,000
per occurrence and $5,000,000 general aggregate. Excess or Umbrella Liability policy will follow-form over the General Liability and Commercial
Auto policies. Any company writing any of Tenant’s insurance shall have an A.M. Best rating of not less than A-VIII and provide
primary coverage to Landlord (any policy issued to Landlord providing duplicate or similar coverage shall be deemed excess over Tenant’s
policies). All commercial general liability insurance policies shall name Tenant as a named insured and Landlord, its property manager,
and other designees of Landlord as the interest of such designees shall appear, as additional insureds. The limits and types of insurance
maintained by Tenant shall not limit Tenant’s liability under this Lease. Tenant shall provide Landlord with certificates of such
insurance as required under this Lease prior to the earlier to occur of the Commencement Date or the date Tenant is provided with possession
of the Premises, and thereafter upon renewals at least 15 days prior to the expiration of the insurance coverage. Acceptance by Landlord
of delivery of any certificates of insurance does not constitute approval or agreement by Landlord that the insurance requirements of
this Paragraph have been met, and failure of Landlord to identify a deficiency from evidence provided will not be construed as a waiver
of Tenant’s obligation to maintain such insurance. In the event any of the insurance policies required to be carried by Tenant under
this Lease shall be cancelled prior to the expiration date of such policy, or if Tenant receives notice of any cancellation of such insurance
policies from the insurer prior to the expiration date of such policy, Tenant shall: (a) immediately deliver notice to Landlord that such
insurance has been, or is to be, cancelled, (b) shall promptly replace such insurance policy in order to assure no lapse of coverage shall
occur, and (c) shall deliver to Landlord a certificate of insurance for such policy. The insurance required to be maintained by Tenant
hereunder are only Landlord’s minimum insurance requirements and Tenant agrees and understands that such insurance requirements
may not be sufficient to fully meet Tenant’s insurance needs.

 

9.2               
Insurance Requirements. The all-risk or special form property insurance obtained by Landlord and Tenant shall include a
waiver of subrogation by the insurers and all rights based upon an assignment from its insured, against Landlord or Tenant, their officers,
directors, employees, managers, agents, invitees and contractors, in connection with any loss or damage thereby insured against. Notwithstanding
anything to the contrary in this Lease, neither party nor its officers, directors, employees, managers, agents, invitees or contractors
shall be liable to the other for loss or damage caused by or resulting from any risk coverable by all risk or special form property insurance,
and each party waives any claims against the other party, and its officers, directors, employees, managers, agents, invitees and contractors
for such loss or damage without regard to the negligence or willful misconduct of the entity so released. All of Landlord’s and
Tenant’s repair and indemnity obligations under this Lease shall be subject to the waiver contained in this paragraph. The failure
of a party to insure its property shall not void this waiver. Tenant and its agents, employees and contractors shall not be liable for,
and Landlord hereby waives all claims against such parties for losses resulting from an interruption of Landlord’s business, or
any person claiming through Landlord, resulting from any accident or occurrence in or upon the Premises or the Project from any cause
whatsoever, including without limitation, damage caused in whole or in part, directly or indirectly, by the negligence of Tenant or its
agents, employees or contractors. Landlord and its agents, employees and contractors shall not be liable for, and Tenant hereby waives
all claims against such parties for losses resulting from an interruption of Tenant’s business, or any person claiming through Tenant,
resulting from any accident or occurrence in or upon the Premises or the Project from any cause whatsoever, including without limitation,
damage caused in whole or in part, directly or indirectly, by the negligence of Landlord or its agents, employees or contractors.

 

    - 5 -

     

    

 

10.           Landlord’s
Repairs. Landlord shall maintain and repair (including, without limitation replacement when required), at its sole expense (a) the
structural soundness of the roof, (including the roof membrane), (b) the structural soundness of the foundation; (c) the structural soundness
of the exterior walls and all load-bearing walls of the Building (d) the parking areas and other exterior areas of the Project, including,
but not limited to paving and parking areas, roads, alleys, and driveways, landscaping, exterior painting, utility lines and exterior
lighting; and (e) the mechanical and building systems of the Building including, but not limited to, electrical, lighting, plumbing,
heating, ventilating and air conditioning systems; provided, however, subject to Paragraphs 9 and 15, Tenant shall be responsible for
reimbursing Landlord for the entire cost of any maintenance, repairs, or replacement to address damage to the Premises, the Building
or the Project caused by Tenant, its agents, employees, contractors or invitees. Tenant shall promptly give Landlord written notice of
any repair required by Landlord pursuant to this Paragraph 10, after which Landlord shall have a reasonable opportunity to repair.

 

11.           Tenant’s
Repairs. Subject to Landlord’s obligation in Paragraph 10 and subject to Paragraphs 9 and 15 and as otherwise expressly provide
in this Lease, Tenant, at its expense, shall repair, replace (as needed) and maintain in good condition all interior, non-structural
portions of the Premises and all entries, doors, ceilings, windows, interior walls, the interior side of demising walls and Tenant-Made
Alterations (including, without limitation, any additional heating, ventilation and air conditioning and electrical systems installed
by Tenant). If Tenant fails to perform any repair or replacement for which it is responsible, Landlord may give Tenant notice to do such
acts as a reasonably required to fulfill Tenant’s obligations under this Paragraph 11 and, if Tenant thereafter fails to promptly
commence such work and diligently prosecute it to completion, then Landlord may perform such work and be reimbursed by Tenant within
30 days after demand therefor. Subject to Paragraphs 9 and 15, Tenant shall bear the full cost of any repair or replacement to any part
of the Building or Project that results from damage caused by Tenant, its agents, employees, contractors, or invitees.

 

12.           Tenant-Made Alterations and Trade Fixtures. Except for interior cosmetic painting, any alterations, additions, or improvements
made by or on behalf of Tenant to the Premises (“Tenant-Made Alterations”), shall be subject to Landlord’s prior written
consent, which may be withheld in Landlord’s sole and absolute discretion. However, Landlord shall not unreasonably withhold consent
to Tenant’s installation of that certain minor electrical work to the Premises described on Exhibit D attached hereto (the
 “Electrical Work”) if such Electrical Work is performed at Tenant’s sole cost in accordance with all applicable permits,
approvals, insurance requirements and Legal Requirements, and is installed in accordance with the requirements under this Paragraph 12.
The Electrical Work shall constitute a a Tenant-Made Alteration. All Tenant-Made Alterations, if any, shall be constructed in a good and
workmanlike manner by contractors reasonably acceptable to Landlord and only good grades of materials shall be used. All plans and specifications
for any Tenant-Made Alterations shall be submitted to Landlord for its approval. Landlord may monitor construction of the Tenant-Made
Alterations. Except for minor or cosmetic work, Tenant shall reimburse Landlord for its reasonable and actual out of pocket 3rd party
costs in reviewing plans and specifications and in monitoring construction, not to exceed $2,500.00. Landlord’s right to review
plans and specifications and to monitor construction shall be solely for its own benefit, and Landlord shall have no duty to see that
such plans and specifications or construction comply with applicable laws, codes, rules and regulations. Tenant shall provide Landlord
with the identities and mailing addresses of all general contractors and major subcontractors performing work or supplying materials,
prior to beginning such construction, and Landlord may post on and about the Premises notices of non-responsibility pursuant to applicable
law. For work which costs in excess of $75,000, Landlord may condition its consent upon Tenant providing a lien and completion bond in
an amount equal to one hundred and fifty (150%) of the estimated cost of such Tenant-Made Alteration. Tenant shall provide certificates
of insurance for worker’s compensation and other coverage in amounts and from an insurance company satisfactory to Landlord protecting
Landlord against liability for personal injury or property damage during construction. Upon completion of any Tenant-Made Alterations,
Tenant shall deliver to Landlord sworn statements setting forth the names of all general contractors and subcontractors who did work on
the Tenant-Made Alterations and final lien waivers from all such contractors and subcontractors. Upon surrender of the Premises, any Tenant-Made
Alterations constructed by or on behalf of Tenant (other than interior painting) shall be removed from the Premises at Tenant’s
expense, except to the extent Landlord and Tenant have otherwise agreed in writing in connection with Landlord’s consent to any
Tenant-Made Alterations that they may remain on the Premises as Landlord’s property. Upon Tenant’s written request, Landlord
shall provide Tenant, at the time of Tenant’s request for approval of any Tenant-Made Alterations (including, but no limited to,
the Electrical Work), a list of which Tenant-Made Alterations , if any, may remain on the Premises as Landlord’s property upon surrender
of the Premises. Tenant shall repair any damage caused by the removal of the Tenant-Made Alterations upon surrender of the Premises and
restore the Premises to the condition in which Tenant received it in accordance with Paragraph 21 below.

 

    - 6 -

     

    

 

13.           Signs.
Tenant shall not make any changes to the exterior of the Premises, install any exterior lights, decorations, balloons, flags, pennants,
banners, or painting, or erect or install any signs, windows or door lettering, placards, decorations, or advertising media of any type
which can be viewed from the exterior of the Premises, without Landlord’s prior written consent, which consent may be withheld
in Landlord’s sole discretion. Notwithstanding the foregoing, Tenant shall have the right to install signage on the exterior of
the Building and on the monument sign designated for the Building with its company name and/or logo, subject to (i) compliance with all
applicable Legal Requirements, (ii) the Project’s sign criteria and (iii) Landlord’s reasonable approval of the size, location,
color, style and contents of the signage. Upon surrender or vacation of the Premises, Tenant shall have removed all signs and repair,
paint, and/or replace the building facia surface and the monuments to which its signs are attached. Tenant shall obtain all applicable
governmental permits and approvals for its signage.

 

14.           Parking.
Tenant shall be entitled, at no additional charge, to use the number of non-designated and non-exclusive parking space specified on the
first page of this Lease. Landlord shall not be responsible for enforcing Tenant’s parking rights against any third parties and
makes no representations or warranties that the available parking is sufficient for Tenant’s use of Premises. Tenant shall not
park or permit any parking of vehicles overnight.

 

15.           Restoration. If at any time during the Lease Term the Premises are damaged by a fire or other casualty, Landlord shall notify
Tenant within ten (10) business days after such damage as to the amount of time Landlord reasonably estimates it will take to restore
the Premises. If the restoration time is estimated to exceed 45 days, either Landlord or Tenant may elect to terminate this Lease upon
notice to the other party given no later than 30 days after Landlord’s notice. If neither party elects to terminate this Lease or
if Landlord reasonably estimates that restoration will take 45 days or less, Landlord shall promptly restore the Premises excluding the
improvements installed by Tenant or by Landlord and paid by Tenant, subject to delays arising from the collection of insurance proceeds
or from Force Majeure events (as defined in Paragraph 33). Tenant at Tenant’s expense shall promptly perform, subject to delays
arising from the collection of insurance proceeds, or from Force Majeure events, all repairs or restoration not required to be done by
Landlord and shall promptly re-enter the Premises and commence doing business in accordance with this Lease. Gross Rent shall be abated
for the period of repair and restoration commencing on the date of such casualty event in the proportion which the area of the Premises,
if any, which is not usable by Tenant bears to the total area of the Premises. Such abatement shall be the sole remedy of Tenant, and
except as provided herein, Tenant waives any right to terminate the Lease by reason of damage or casualty loss.

 

16.           Condemnation. If any part of the Premises or the Project should be taken for any public or quasi-public use under governmental
law, ordinance, or regulation, or by right of eminent domain, or by private purchase in lieu thereof (a “Taking” or “Taken”),
and the Taking would materially interfere with or impair Landlord’s ownership or operation of the Project, then upon written notice
by Landlord this Lease shall terminate and Gross Rent shall be apportioned as of said date. In the event (i) more than thirty percent
(30%) of the Premises is involved in a Taking as described in this Paragraph 16, or (ii) more than thirty percent (30%) of the parking
spaces for the Building are Taken and not replaced by Landlord with other parking spaces in the Project proximate to the Building, and
in either case the Taking, in Tenant’s reasonable judgment, would materially interfere with or impair Tenant’s operations
at the Premises, then in any such event Tenant shall have the right to terminate this Lease by giving written notice of termination to
Landlord within thirty (30) days of such Taking. If a part of the Premises shall be Taken, and this Lease is not terminated as provided
above, the Gross Rent payable hereunder during the unexpired Lease Term shall be reduced to such extent as may be fair and reasonable
under the circumstances. In the event of any such Taking, Landlord shall be entitled to receive the entire price or award from any such
Taking without any payment to Tenant, and Tenant hereby assigns to Landlord Tenant’s interest, if any, in such award. Tenant shall
have the right, to the extent that same shall not diminish Landlord’s award, to make a separate claim against the condemning authority
(but not Landlord) for such compensation as may be separately awarded or recoverable by Tenant for moving expenses and damage to Tenant’s
Trade Fixtures, if a separate award for such items is made to Tenant. The foregoing termination right in this Paragraph 16 shall be in
addition to, and not in lieu of, the termination rights of Landlord and Tenant set forth in the Summary of Basic Lease Terms.

 

    - 7 -

     

    

 

17.           Assignment
and Subletting. Tenant shall not assign this Lease or sublease the Premises or any part thereof or mortgage, pledge, or hypothecate
its leasehold interest or grant any concession or license within the Premises (each a “Transfer”) without Landlord’s
prior written consent, which shall not be unreasonably withheld conditioned or delayed. Each Tenant request for a Transfer accompanied
by such documentation and information as shall enable Landlord to evaluate the request for Transfer. It shall be reasonable for the Landlord
to withhold, delay or condition its consent, where required, to any requested Transfer in any of the following instances: (i) the assignee
or the sublessee of more than fifty percent (50%) of the Premises does not have the credit, net worth or liquidity necessary, in Landlord’s
reasonable opinion, to fulfill the obligations of Tenant under this Lease; (ii) occupancy of the Premises by the assignee or sublessee
would, in Landlord’s reasonable opinion, violate any agreement binding upon Landlord or the Project with regard to the identity
of tenants, usage in the Project, or similar matters; (iii) the identity or business reputation of the assignee or sublessee will, in
the good faith judgment of Landlord, tend to damage the goodwill or reputation of the Project; and (iv) in the case of a sublease, the
subtenant has not acknowledged that the sublease is subject and subordinate to the Lease. The foregoing criteria shall not exclude any
other reasonable basis for Landlord to refuse its consent to such assignment or sublease. Any approved assignment or sublease shall be
expressly subject to the terms and conditions of this Lease. Tenant shall provide to Landlord all information concerning the Transfer
as Landlord may reasonably request. Landlord may revoke its consent immediately and without notice if, as of the effective date of the
assignment or sublease, there has occurred and is continuing any Event of Default periods under this Lease. For purposes of this paragraph,
a transfer of 49% or more of the ownership interests controlling Tenant shall be deemed a Transfer of this Lease unless such ownership
interests are publicly traded.

 

17.1            
Recapture Right. Upon Landlord’s receipt of Tenant’s written notice of a desire to assign or sublet the Premises,
Landlord may, by giving written notice to Tenant within 30 days after receipt of Tenant’s notice, terminate this Lease with respect
to the space described in Tenant’s notice, as of the date specified in Tenant’s notice for the commencement of the proposed
assignment or sublease. Tenant may withdraw its notice to sublease or assign by notifying Landlord within 10 days after Landlord has given
Tenant notice of such termination, in which case the Lease shall not terminate but shall continue.

 

17.2            
Permitted Assignments. Notwithstanding the above, Tenant may assign or sublet the Premises, or any part thereof, to any
entity wholly owned by Tenant, or comprised of exactly the same ownership as Tenant; (ii) any corporation or other entity resulting from
the merger or consolidation of Tenant where the resulting Tenant entity maintains a post transfer tangible net worth equal to or greater
than Tenant’s immediately prior to such assignment or sublease or the tangible net worth of the Tenant at the time it executed the
Lease; or (iii) any corporation, partnership or other entity, or person which acquires 49% or more of the ownership interests controlling
Tenant or all or substantially all of the assets of Tenant where the resulting Tenant entity maintains a post transfer tangible net worth
equal to or greater than Tenant’s immediately prior to such assignment or sublease or the tangible net worth of the Tenant at the
time it executed the Lease (each a “Permitted Transferee”), without the prior written consent of Landlord. Tenant hereby agrees
to give Landlord written notice ten (10) days prior to such merger, consolidation, or transfer of assets along with any documentation
reasonably requested by Landlord related to the required conditions as provided above. Except for a transfer to a Permitted Transferee,
Tenant shall reimburse Landlord for all of Landlord’s reasonable third party out-of-pocket expenses in connection with any assignment
or sublease, not to exceed $2,500.00. This Lease shall be binding upon Tenant and its successors and permitted assigns.

 

17.3            
Primary Responsibility and Excess Rental. Notwithstanding any assignment or subletting, Tenant and any guarantor or surety
of Tenant’s obligations under this Lease shall at all times remain fully responsible and liable for the payment of the rent and
for compliance with all of Tenant’s other obligations under this Lease (regardless of whether Landlord’s approval has been
obtained for any such assignments or sublettings). In the event that the rent due and payable by a sublessee or assignee (or a combination
of the rental payable under such sublease or assignment plus any bonus or other consideration therefor or incident thereto) exceeds the
rental payable under this Lease, then Tenant shall be bound and obligated to pay Landlord as additional rent hereunder 50% such excess
rental and other excess consideration, after first deducting the customary and reasonable cost of any real estate commissions, attorneys’
fees, Landlord approved tenant improvements, credit for free rent and other inducement costs incurred in connection with such assignment
or sublease, within 10 days following receipt thereof by Tenant; provided in the event of a sublease which is less than 100% of the Premises
such excess rental and other consideration shall be applied on a square foot basis.

 

    - 8 -

     

    

 

17.4              Additional
Conditions of Subletting and Assignment. If this Lease be assigned or if the Premises be subleased (whether in whole or in part)
or in the event of the mortgage, pledge, or hypothecation of Tenant’s leasehold interest or grant of any concession or license
within the Premises or if the Premises be occupied in whole or in part by anyone other than Tenant, then upon an Event of Default by
Tenant hereunder Landlord may collect rent from the assignee, sublessee, mortgagee, pledgee, party to whom the leasehold interest
was hypothecated, concessionee or licensee or other occupant and, except to the extent set forth in the preceding paragraph, apply
the amount collected to the next rent payable hereunder; and all such rentals collected by Tenant shall be held in trust for
Landlord and immediately forwarded to Landlord. No such transaction or collection of rent or application thereof by Landlord,
however, shall be deemed a waiver of these provisions or a release of Tenant from the further performance by Tenant of its
covenants, duties, or obligations hereunder.

 

18.           Indemnification.
Except for the negligence or willful misconduct of Landlord, its agents, employees or contractors, and to the extent permitted by law,
Tenant agrees to indemnify, defend and hold harmless Landlord, and Landlord’s agents, employees and contractors, from and against
any and all losses, liabilities, damages, costs and expenses (including reasonable attorneys’ fees) resulting from claims by third
parties for injuries to any person and damage to or theft or misappropriation or loss of property occurring in or about the Project and
arising from the use and occupancy of the Premises or from any activity, work, or thing done, permitted or suffered by Tenant in or about
the Premises or due to any other act or omission of Tenant, its subtenants, assignees, invitees, employees, contractors and agents. The
furnishing of insurance required hereunder shall not be deemed to limit Tenant’s obligations under this Paragraph 18.

 

19.           Inspection
and Access. After providing Tenant with written notice of its intent to enter the Premises for the purposes stated below, Landlord
and its agents, representatives, and contractors may enter the Premises at reasonable times no earlier than twenty-four (24) hours (except
in the case of an emergency) after such notice for the purpose inspecting the Premises, making such repairs as may be required or permitted
pursuant to this Lease, or showing the Premises to prospective purchasers or lenders. Additionally, after providing Tenant with written
notice of its intent to enter the Premises no earlier than twenty-four (24) hours after the delivery of such notice, Landlord and Landlord’s
representatives may enter the Premises during business hours for the purpose of showing the Premises to prospective purchasers and prospective
tenants. Landlord may erect a suitable sign on the Premises stating the Premises are available to let, or that the Project is available
for sale, at any time. Landlord may grant easements, make public dedications, designate and modify common areas and create restrictions
on or about the Premises. At Landlord’s request, Tenant shall execute commercially reasonable instruments as may be necessary for
such easements, dedications or restrictions.

 

20.           Quiet
Enjoyment. If Tenant shall perform all of the covenants and agreements herein required to be performed by Tenant, Tenant shall, subject
to the terms of this Lease, at all times during the Lease Term, have peaceful and quiet enjoyment of the Premises against any person
claiming by, through or under Landlord. Subject to Legal Requirements and Landlord’s remedies following an Event of Default, Tenant
shall have access to the Premises 24 hours a day, 7 days a week.

 

21.           Surrender.
Upon termination of the Lease Term or earlier termination of Tenant’s right of possession, Tenant shall surrender the Premises
to Landlord in the same condition as received ordinary wear and tear, casualty loss and condemnation covered by Paragraphs 15 and 16
and otherwise in accordance with requirements set forth in herein. Without limiting the foregoing, Tenant prior to surrender shall clean
any staining on the foundations and flooring resulting from oil, gasoline or other automotive fluids, to the extent caused by Tenant
or its employees, agents contractors or invitees. Any Trade Fixtures, Tenant-Made Alterations and property not so removed by Tenant as
permitted or required herein shall be deemed abandoned and may be stored, removed, and disposed of by Landlord at Tenant’s expense,
and Tenant waives all claims against Landlord for any damages resulting from Landlord’s retention and disposition of such property.
All obligations of Tenant hereunder not fully performed as of the termination of the Lease Term shall survive the termination of the
Lease Term, including without limitation, indemnity obligations and all obligations concerning the condition and repair of the Premises.
The foregoing shall not be construed to limit Landlord’s other remedies in connection with Tenant’s failure to meet its removal
and surrender obligations under this Lease. Upon Tenant’s request prior to the expiration or termination of the Lease Term, Landlord
shall conduct an inspection of the Premises to identify for Tenant any Tenant maintenance, repair or replacement obligations to the extent
they are visually identifiable by Landlord during such inspection.

 

    - 9 -

     

    

 

22.           Holding
Over. If Tenant retains possession of the Premises after the expiration or earlier termination of the Lease Term, unless
otherwise agreed in writing, such possession shall be subject to immediate termination by Landlord at any time, and all of the other
terms and provisions of this Lease (excluding any expansion or renewal option or other similar right or option) shall be applicable
during such holdover period, except that Tenant shall pay Landlord from time to time, upon demand, as Gross Rent for the holdover
period, an amount determined as follows: The product of the last month’s Gross Rent in effect prior to the expiration or
termination date of the Lease Term, and a percentage multiplier of two hundred percent (200%). All other payments shall continue
under the terms of this Lease. In addition, Tenant shall be liable for all damages (but not punitive damages, which Landlord hereby
waives) incurred by Landlord as a result of such holding over; provided, however, that Landlord provides Tenant with written notice
that Landlord is in negotiations with another prospective tenant, and Tenant fails to thereafter surrender the Premises in
accordance with this Lease on, or prior to, the date identified in Landlord’s notice. No holding over by Tenant, whether with
or without consent of Landlord, shall operate to extend this Lease except as otherwise expressly provided, and this Paragraph 22
shall not be construed as consent for Tenant to retain possession of the Premises. For purposes of this Paragraph 22,
 “possession of the Premises” shall continue until, among other things, Tenant has delivered all keys to the Premises to
Landlord, Landlord has complete and total dominion and control over the Premises, and Tenant has completely fulfilled all
obligations required of it upon termination of the Lease as set forth in this Lease, including, without limitation, those concerning
the condition and repair of the Premises.

 

23.           Events of Default. Each of the following events shall be an event of default (“Event of Default”) by Tenant
under this Lease:

 

(i)                 Tenant
shall fail to pay any installment of Gross Rent or any other payment required herein when due, and such failure shall continue for a
period of 5 business days after written notice from Landlord to Tenant that such payment was due; provided, however, that Landlord shall
not be obligated to provide written notice of such failure more than 1 time in any consecutive 12-month period, and the failure of Tenant
to pay any second or subsequent installment of Gross Rent or any other payment required herein when due in any consecutive 12-month period
shall constitute an Event of Default by Tenant under this Lease without the requirement of notice or opportunity to cure; provided, however,
that any such notice shall be in lieu of, and not in addition to, any notice required under applicable law.

 

(ii)                Tenant
or any guarantor or surety of Tenant’s obligations hereunder shall (A) make a general assignment for the benefit of creditors;
(B) commence any case, proceeding or other action seeking to have an order for relief entered on its behalf as a debtor or to adjudicate
it as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or its
debts or seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or of any substantial part
of its property (collectively a “proceeding for relief”); (C) become the subject of any proceeding for relief which is not
dismissed within 60 days of its filing or entry; or (D) die or suffer a legal disability (if Tenant, guarantor, or surety is an individual)
or be dissolved or otherwise fail to maintain its legal existence (if Tenant, guarantor or surety is a corporation, partnership or other
entity).

 

(iii)              
Any insurance required to be maintained by Tenant pursuant to this Lease shall be cancelled or terminated or shall expire or shall
be reduced or materially changed, except, if the same is replaced in each case, as permitted in this Lease and no lapse in coverage occurred
during such replacement process.

 

(iv)               Tenant
shall attempt or there shall occur any assignment, subleasing or other transfer of Tenant’s interest in or with respect to this
Lease except as otherwise permitted in this Lease.

 

(v)                Tenant
shall fail to discharge or bond over in a manner reasonable acceptable to Landlord any lien placed upon the Premises in violation of
this Lease within 30 days after any such lien or encumbrance is filed against the Premises.

 

    - 10 -

     

    

 

(vi)               Tenant
shall fail to comply with any provision of this Lease other than those specifically referred to in this Paragraph 23, and except as otherwise
expressly provided herein, such default shall continue for more than 30 days after Landlord shall have given Tenant written notice of
such default (said notice being in lieu of, and not in addition to, any notice required as a prerequisite to a forcible entry and detainer
or similar action for possession of the Premises); provided that if more than 30 days are required to complete such performance, Tenant
shall not be in default if Tenant commences such performance within the 30 day period and thereafter diligently prosecutes it to completion.

 

(vii)             
 Tenant agrees that any notice given by Landlord pursuant to this Paragraph of the Lease shall satisfy the requirements for notice
under California Code of Civil Procedure Section 1161, and Landlord shall not be required to give any additional notice in order to be
entitled to commence an unlawful detainer proceeding.

 

24.           Landlord’s Remedies. Upon each occurrence of an Event of Default and so long as such Event of Default shall be continuing,
Landlord may at any time thereafter at its election: terminate this Lease or Tenant’s right of possession, (but Tenant shall remain
liable as hereinafter provided) and/or pursue any other remedies at law or in equity. Upon the termination of this Lease or termination
of Tenant’s right of possession, it shall be lawful for Landlord, without formal demand or notice of any kind, to re-enter the Premises
by summary dispossession proceedings or any other action or proceeding authorized by law and to remove Tenant and all persons and property
therefrom. If Landlord re-enters the Premises, Landlord shall have the right to keep in place and use, or remove and store, all of the
furniture, fixtures and equipment at the Premises.

 

Except as otherwise provided
in the next paragraph, if Tenant breaches this Lease and abandoned the Premises prior to the end of the term hereof, or if Tenant’s
right to possession is terminated by Landlord because of an Event of Default by Tenant under this Lease, this Lease shall terminate. Upon
such termination, Landlord may recover from Tenant the following, as provided in Section 1951.2 of the Civil Code of California: (i) the
worth at the time of award of the unpaid Gross Rent and other charges under this Lease that had been earned at the time of termination;
(ii) the worth at the time of award of the amount by which the reasonable value of the unpaid Gross Rent and other charges under this
Lease which would have been earned after termination until the time of award exceeds the amount of such rental loss that Tenant proves
could have been reasonable avoided; (iii) the worth at the time of award by which the reasonable value of the unpaid Gross Rent and other
charges under this Lease for the balance of the term of this Lease after the time of award exceeds the amount of such rental loss that
Tenant proves could have been reasonably avoided; and (iv) any other amount necessary to compensate Landlord for all the detriment proximately
caused by Tenant’s failure to perform its obligations under this Lease or that in the ordinary course of things would be likely
to result therefrom. As used herein, the following terms are defined: (a) The “worth at the time of award” of the amounts
referred to in Paragraphs (i) and (ii) is computed by allowing interest at the lesser of 10 percent per annum or the maximum lawful rate.
The “worth at the time of award” of the amount referred to in Paragraph (iii) is computed by discounting such amount at the
discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent; (b) The “time of award”
as used in clauses (i), (ii), and (iii) above is the date on which judgment is entered by a court of competent jurisdiction; (c) The “reasonable
value” of the amount referred to in clause (ii) above is computed by determining the mathematical product of (1) the “reasonable
annual rental value” (as defined herein) and (2) the number of years, including fractional parts thereof, between the date of termination
and the time of award. The “reasonable value” of the amount referred to in clause (iii) is computed by determining the mathematical
product of (1) the annual Gross Rent and other charges under this Lease and (2) the number of years including fractional parts thereof
remaining in the balance of the term of this Lease after the time of award. Tenant acknowledges and agrees that the term “detriment
proximately caused by Tenant’s failure to perform its obligations under this Lease” includes, without limitation, the value
of any abated or free rent given to Tenant.

 

Even though Tenant has breached
this Lease and abandoned the Premises, this Lease shall continue in effect for so long as Landlord does not terminate Tenant’s right
to possession, and Landlord may enforce all its rights and remedies under this Lease, including the right to recover rent as it becomes
due. This remedy is intended to be the remedy described in California Civil Code Section 1951.4, and the following provision from such
Civil Code Paragraph is hereby repeated: “The Lessor has the remedy described in California Civil Code Section 1951.4 (lessor may
continue lease in effect after lessee’s breach and abandonment and recover rent as it becomes due, if lessee has right to sublet
or assign subject only to reasonable limitations).” Any such payments due Landlord shall be made upon demand therefor from time
to time and Tenant agrees that Landlord may file suit to recover any sums falling due from time to time. Notwithstanding any such reletting
without termination, Landlord may at any time thereafter elect in writing to terminate this Lease for such previous breach.

 

    - 11 -

     

    

 

Exercise by Landlord of
any one or more remedies hereunder granted or otherwise available shall not be deemed to be an acceptance of surrender of the
Premises and/or a termination of this Lease by Landlord, whether by agreement or by operation of law, it being understood that such
surrender and/or termination can be effected only by the written agreement of Landlord and Tenant. Any law, usage, or custom to the
contrary notwithstanding, Landlord shall have the right at all times to enforce the provisions of this Lease in strict accordance
with the terms hereof; and the failure of Landlord at any time to enforce its rights under this Lease strictly in accordance with
same shall not be construed as having created a custom in any way or manner contrary to the specific terms, provisions, and
covenants of this Lease or as having modified the same. Tenant and Landlord further agree that forbearance or waiver by Landlord to
enforce its rights pursuant to this Lease or at law or in equity, shall not be a waiver of Landlord’s right to enforce one or
more of its rights in connection with any subsequent default. A receipt by Landlord of rent or other payment with knowledge of the
breach of any covenant hereof shall not be deemed a waiver of such breach, and no waiver by Landlord of any provision of this Lease
shall be deemed to have been made unless expressed in writing and signed by Landlord. To the greatest extent permitted by law,
Tenant waives the service of notice of Landlord’s intention to re-enter as provided for in any statute, or to institute legal
proceedings to that end, and also waives all right of redemption in case Tenant shall be dispossessed by a judgment or by warrant of
any court or judge. The terms “enter,” “re-enter,” “entry” or “re-entry,” as used in
this Lease, are not restricted to their technical legal meanings. Any reletting of the Premises shall be on such terms and
conditions as Landlord in its sole discretion may determine (including without limitation a term different than the remaining Lease
Term, rental concessions, alterations and repair of the Premises, lease of less than the entire Premises to any tenant and leasing
any or all other portions of the Project before reletting the Premises). Landlord shall not be liable, nor shall Tenant’s
obligations hereunder be diminished because of, Landlord’s failure to relet the Premises or collect rent due in respect of
such reletting.

 

25.           Tenant’s
Remedies/Limitation of Liability. Landlord shall not be in default hereunder unless Landlord fails to perform any of its obligations
hereunder within 30 days after written notice from Tenant specifying such failure (unless such performance will, due to the nature of
the obligation, require a period of time in excess of 30 days, then after such period of time as is reasonably necessary provided that
Landlord commences such cure within the 30-day period and diligently prosecutes it to completion). All obligations of Landlord hereunder
shall be construed as covenants, not conditions; and, except as may be otherwise expressly provided in this Lease, Tenant may not terminate
this Lease or offset any Gross Rent or other amounts due under this Lease for breach of Landlord’s obligations hereunder. All obligations
of Landlord under this Lease will be binding upon Landlord only during the period of its ownership of the Premises and not thereafter.
The term “Landlord” in this Lease shall mean only the owner, for the time being of the Premises, and in the event of the
transfer by such owner of its interest in the Premises, such owner shall thereupon be released and discharged from all obligations of
Landlord thereafter accruing, but such obligations shall be binding during the Lease Term upon each new owner for the duration of such
owner’s ownership. Any liability of Landlord under this Lease shall be limited solely to its interest in the Premises and all income
derived therefrom following notice from Tenant of any claims of Landlord default, and in no event shall any personal liability be asserted
against Landlord in connection with this Lease nor shall any recourse be had to any other property or assets of Landlord. Notwithstanding
the negligence (including, without limitation, gross negligence) or breach of this Lease by Landlord or its agents, neither Landlord
nor its agents shall be liable under any circumstances (pursuant to any legal or equitable remedy) for: (i) injury or damage to the person
or goods, wares, merchandise or other property of Tenant, Tenant’s employees, contractors, invitees, customers, or any other person
in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, indoor
air quality, the presence of mold or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances,
plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon
the Premises, or from other sources or places, (ii) injury to Tenant’s business or for any loss of income or profit therefrom,
or (iii) consequential or punitive damages. Instead, it is intended that Tenant’s sole recourse in the event of such damages or
injury be to file a claim on the insurance policy(ies) that Tenant is required to maintain pursuant to the provisions of this Paragraph.

 

26.           Landlord
Lien Waiver. Landlord hereby irrevocably waives any right, title or interest in or to Tenant’s furniture, fixtures, equipment
and inventory (collectively, “Personal Property”) and Trade Fixtures that the Tenant may now or hereafter have at
the Premises (and/or use in connection with Tenant’s business operations at the Premises) and agrees that the Personal Property
and the Trade Fixtures are, and shall remain personal property, notwithstanding the manner in which it is installed or affixed to the
Premises. Provided there is no ongoing Event of Default, at least twenty (20) business days prior written notice from Tenant, Landlord
hereby agrees to deliver Landlord’s commercially reasonable form of consent and waiver of lien rights with respect to Tenant’s
Personal Property and Trade Fixtures to Tenant’s lenders and to Tenant’s lessors of Personal Property and/or Trade Fixtures.

 

    - 12 -

     

    

 

27.           Subordination.
This Lease and Tenant’s interest and rights hereunder are and shall be subject and subordinate at all times to the lien of any
first mortgage, now existing or hereafter created on or against the Premises or the Premises, and all amendments, restatements, renewals,
modifications, consolidations, refinancing, assignments and extensions thereof (collectively, “Security Instruments” and
each a “Security Instrument”) without the necessity of any further instrument or act on the part of Tenant. Tenant agrees,
at the election of the holder of any such mortgage, to attorn to any such holder of a Security Instrument. Subject to the requirements
of this Paragraph, Tenant agrees upon demand to execute, acknowledge and deliver such commercially reasonable instruments, confirming
such subordination and such instruments of attornment as shall be requested by any such holder; provided, however, that Tenant shall
not have any right to any form of non-disturbance agreement from the mortgagee or the beneficiary given the short-term nature of this
Lease. The term “mortgage” whenever used in this Lease shall be deemed to include deeds of trust, security assignments and
any other encumbrances, and any reference to the “holder” of a mortgage shall be deemed to include the beneficiary under
a deed of trust.

 

28.           Mechanic’s Liens. Tenant has no express or implied authority to create or place any lien or encumbrance of any kind
upon, or in any manner to bind the interest of Landlord or Tenant in, the Premises or to charge the rentals payable hereunder for any
claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs.
Tenant covenants and agrees that it will pay or cause to be paid all sums legally due and payable by it on account of any labor performed
or materials furnished in connection with any work performed on the Premises and that it will save and hold Landlord harmless from all
loss, cost or expense based on or arising out of asserted claims or liens against the leasehold estate or against the interest of Landlord
in the Premises or under this Lease. Tenant shall give Landlord immediate written notice of the placing of any lien or encumbrance against
the Premises and cause such lien or encumbrance to be discharged within 30 days of the filing or recording thereof; provided, however,
Tenant may contest such liens or encumbrances as long as such contest prevents foreclosure of the lien or encumbrance and Tenant causes
such lien or encumbrance to be bonded or insured over in a manner satisfactory to Landlord within such 30 day period.

 

29.           Estoppel Certificates. Each party agrees, from time to time, within 10 business days after request of the requesting party,
to execute and deliver to the requesting party, or the requesting party’s designee, any estoppel certificate requested by the other,
stating, if true, that this Lease is in full force and effect, the date to which rent has been paid, that the requesting party is not
in default hereunder (or specifying in detail the nature of the requesting party’s default), the expiration date of this Lease and
such other matters pertaining to this Lease as may be reasonably requested by the requesting party. Each party’s obligation to furnish
each estoppel certificate in a timely fashion is a material inducement for each party’s execution of this Lease. No cure or grace
period provided in this Lease shall apply to either party’s obligations to timely deliver an estoppel certificate.

 

    - 13 -

     

    

 

30.           Environmental
Requirements. Except for Hazardous Material contained in products used by Tenant in de minimis or reasonable quantities that are
in compliance with Environmental Requirements for ordinary cleaning and office purposes, Tenant shall not permit or cause any party to
bring any Hazardous Material upon the Premises or transport, store, use, generate, manufacture or release any Hazardous Material in or
about the Premises without Landlord’s prior written consent, which consent may be withheld in Landlord’s sole and absolute
discretion. Prior to the Commencement Date (or any earlier access date under this Lease), Tenant shall provide Landlord with a list of
any Hazardous Material (such as chemicals, solvents or heavy metals) that Tenant plans to use in the Premises for Landlord’s approval
in Landlord’s sole and absolute discretion. Tenant, at its sole cost and expense, shall operate its business in the Premises in
strict compliance with all Environmental Requirements and shall remediate in a manner satisfactory to Landlord any Hazardous Materials
released on or from the Project by Tenant, its agents, employees, contractors, subtenants or invitees. Tenant shall complete and certify
to disclosure statements as requested by Landlord from time to time relating to Tenant’s transportation, storage, use, generation,
manufacture or release of Hazardous Materials on the Premises. The term “Environmental Requirements” means all applicable
present and future statutes, regulations, ordinances, rules, codes, judgments, orders or other similar enactments of any governmental
authority or agency regulating or relating to health, safety, or environmental conditions on, under, or about the Premises or the environment,
including without limitation, the following: the Comprehensive Environmental Response, Compensation and Liability Act; the Resource Conservation
and Recovery Act; and all state and local counterparts thereto, and any regulations or policies promulgated or issued thereunder. The
term “Hazardous Materials” means and includes any substance, material, waste, pollutant, or contaminant listed or defined
as hazardous or toxic, under any Environmental Requirements, asbestos and petroleum, including crude oil or any fraction thereof, natural
gas liquids, liquefied natural gas, or synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas). As defined
in Environmental Requirements, Tenant is and shall be deemed to be the “operator” of Tenant’s “facility”
and the “owner” of all Hazardous Materials brought on the Premises by Tenant, its agents, employees, contractors or invitees,
and the wastes, by-products, or residues generated, resulting, or produced therefrom. No cure or grace period provided in this Lease
shall apply to Tenant’s obligations to comply with the terms and conditions of this Paragraph 30.

 

30.1             
Tenant Environmental Indemnity. Tenant shall indemnify, defend, and hold Landlord harmless from and against any and all
losses (including, without limitation, diminution in value of the Premises or the Project and loss of rental income from the Project),
claims, demands, actions, suits, damages, expenses (including, without limitation, remediation, removal, repair, corrective action, or
cleanup expenses), and costs (including, without limitation, reasonable attorneys’ fees, consultant fees or expert fees and including,
without limitation, removal or management of any asbestos brought into the property or disturbed in breach of the requirements of this
Paragraph 30, regardless of whether such removal or management is required by the Environmental Requirements) which are brought or recoverable
against, or suffered or incurred by Landlord as a result of any release of Hazardous Materials for any breach of the requirements under
this Paragraph 30 by Tenant, its agents, employees, contractors, subtenants, assignees or invitees, regardless of whether Tenant had knowledge
of such noncompliance. The obligations of Tenant under this Paragraph 30 shall survive any termination of this Lease

 

30.2             
Limitations on Tenant Liability for Hazardous Materials. Landlord represents and warrants that, to Landlord’s actual
knowledge as of the Commencement Date, there are no Hazardous Materials in, on or under the Premises in violation of Environmental Requirements.
Notwithstanding anything to the contrary in this Paragraph 30, Tenant shall have no liability of any kind to Landlord as to Hazardous
Materials on the Premises (i) caused or permitted by Landlord, its agents, employees, contractors or invitees; (ii) in existence prior
to the Commencement Date (or any early date of entry by Tenant during the Early Access Period); or (iii) that migrate onto or under the
Premises by no fault of Tenant, its agents, employees, contractors or invitees, except in each case to the extent exacerbated by Tenant
its agents, employees, contractors, subtenants or invitees. As used herein, the phrase “Landlord’s actual knowledge”
shall mean the actual knowledge, without duty to further investigate or inquire, of Mitchell J. Kalcic, a principal of Landlord. Notwithstanding
the foregoing definition, in no event shall the named individual have any personal liability to Tenant under this Lease, at law or in
equity.

 

30.3             
Inspections, Testing and Hazardous Material Conditions. Subject to the requirements of Paragraph 19 above, Landlord shall
have access to, and a right to perform inspections and tests of, the Premises to determine Tenant’s compliance with Environmental
Requirements, its obligations under this Paragraph 30, or the environmental condition of the Premises; provided, any such inspections
and tests shall be done at a time and in a manner so as minimize interference with Tenant’s operations at the Premises. Such inspections
and tests shall be conducted at Landlord’s expense, unless such inspections or tests reveal that Tenant has not complied with any
Environmental Requirement, in which case Tenant shall reimburse Landlord for the reasonable cost of such inspection and tests. Landlord’s
receipt of or satisfaction with any environmental assessment in no way waives any rights that Landlord holds against Tenant. If a condition
involving the presence of, or a contamination by, a Hazardous Material at the Premises that requires remediation (a “Hazardous Material
Condition”) occurs or is discovered during the Lease Term and is not Tenant’s responsibility under this Lease or the Legal
Requirements (in which Tenant’s-responsibility case Tenant shall make the investigation and remediation thereof required by this
Lease and/or the Legal Requirements and this Lease shall continue in full force and effect, but subject to Landlord’s rights under
Paragraph 6(B)(4) and Paragraph 9), and if Landlord elects to remediate such condition and the estimated cost therefor exceeds $150,000,
Landlord may, at Landlord’s sole discretion, give written notice to Tenant of Landlord’s desire to terminate this Lease as
of the date 30 days following the date of such notice. In the event Landlord elects to give a termination notice, Tenant may, within 10
days thereafter, give written notice to Landlord of Tenant’s commitment to pay the amount by which the cost of the remediation of
such Hazardous Material Condition exceeds $150,000. Tenant shall provide Landlord with said funds or satisfactory assurance thereof within
30 days following such commitment. In such event, this Lease shall continue in full force and effect, and Landlord shall proceed to make
such remediation as soon as reasonably possible after the required funds are available. If Tenant does not give such notice and provide
the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Landlord’s
notice of termination.

 

    - 14 -

     

    

 

31.           Rules
and Regulations. Tenant shall, at all times during the Lease Term and any extension thereof, comply with the current rules and regulations
attached hereto as Exhibit C and any reasonable amendments, modifications or additions thereto that do not circumvent the express
terms of this Lease as may hereafter be promulgated by Landlord at any time or from time to time established covering use of the Premises.
In the event of any conflict between said rules and regulations and other provisions of this Lease, the other terms and provisions of
this Lease shall control. Landlord shall not have any liability or obligation for the breach of any rules or regulations by other tenants
in the Project.

 

32.           Security Service. Tenant acknowledges and agrees that Landlord is not providing any security services with respect to the
Premises and that Landlord shall not be liable to Tenant for, and Tenant waives any claim against Landlord with respect to, any loss by
theft or any other damage suffered or incurred by Tenant in connection with any unauthorized entry into the Premises or any other breach
of security with respect to the Premises.

 

33.           Force Majeure. Landlord and Tenant shall not be held responsible for delays in the performance of its obligations hereunder
when caused by strikes, lockouts, labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes therefor,
governmental restrictions, governmental regulations, governmental controls, delay in issuance of permits, enemy or hostile governmental
action, civil commotion, fire or other casualty, and other causes beyond the reasonable control of Landlord or Tenant, as applicable (“Force
Majeure”). In no event shall any Force Majeure event excuse, delay or release the performance of any monetary obligation of Tenant
under this Lease.

 

34.           Entire
Agreement. This Lease constitutes the complete agreement of Landlord and Tenant with respect to the subject matter hereof. No representations,
inducements, promises or agreements, oral or written, have been made by Landlord or Tenant, or anyone acting on behalf of Landlord or
Tenant, which are not contained herein, and any prior agreements, promises, negotiations, or representations are superseded by this Lease.
This Lease may not be amended except by an instrument in writing signed by both parties hereto.

 

35.           Severability. If any clause or provision of this Lease is illegal, invalid or unenforceable under present or future laws,
then and in that event, it is the intention of the parties hereto that the remainder of this Lease shall not be affected thereby. It is
also the intention of the parties to this Lease that in lieu of each clause or provision of this Lease that is illegal, invalid or unenforceable,
there be added, as a part of this Lease, a clause or provision as similar in terms to such illegal, invalid or unenforceable clause or
provision as may be possible and be legal, valid and enforceable.

 

36.           Brokers.
Tenant represents and warrants that it has dealt with no broker, agent or other person in connection with this transaction and that no
broker, agent or other person brought about this transaction, other than the brokers, if any, set forth on the first page of this Lease,
and Tenant agrees to indemnify and hold Landlord harmless from and against any claims by any other broker, agent or other person claiming
a commission or other form of compensation by virtue of having dealt with Tenant with regard to this leasing transaction. Landlord represents
and warrants that it has dealt with no broker, agent or other person in connection with this transaction and that no broker, agent or
other person brought about this transaction, other than the brokers, if any, set forth on the first page of this Lease, and Landlord
agrees to indemnify and hold Tenant harmless from and against any claims by any other broker, agent or other person claiming a commission
or other form of compensation by virtue of having dealt with Landlord with regard to this leasing transaction. Landlord shall pay said
brokers a commission pursuant to a separate agreement, which separate agreement shall provide that the commission payable shall not be
earned or payable unless and until the earlier of (i) Tenant obtaining a permit from the City of Mountain View for the Electrical Work
and waiving in writing its termination right under Paragraph 3, or (ii) the expiration of the Permit Contingency Period if Tenant has
not then terminated the Lease pursuant to Paragraph 3. If the Tenant terminates the Lease pursuant to Paragraph 3, then the separate
agreement shall provide that no commission shall be payable to said brokers.

 

37.           Disclosure
Regarding Prior Use. Landlord has informed Tenant, and Tenant understands and acknowledges, that due to the prior use of the Premises
as a gymnasium, there may be a residual odor in the Building. Landlord is not required to address or remediate this odor in connection
with Tenant’s use of the Premises under this Lease. Tenant has investigated the odor prior to the Commencement and waives any right
to object to, or hold Landlord responsible for, any resolution or remediation of the odor. Landlord recommends that Tenant circulate
air in the Building to mitigate the odor.

 

    - 15 -

     

    

 

38.               
Miscellaneous.

 

(a)               
Any payments or charges due from Tenant to Landlord hereunder shall be considered rent for all purposes of this Lease.

 

(b)               
 If and when included within the term “Tenant,” as used in this instrument, there is more than one person, firm or
corporation, each shall be jointly and severally liable for the obligations of Tenant.

 

(c)                All
notices required or permitted to be given under this Lease shall be in writing and shall be sent by registered or certified mail, return
receipt requested, or by a reputable national overnight courier service, postage prepaid, or by hand delivery addressed to Landlord at
c/o The Pillar Group, 951 Industrial Road, Suite F, San Carlos, CA 94070, Attn: Mitch Kalcic, and addressed to Tenant at its address
in the Summary of Basic Lease Terms. Upon receipt of Landlord’s Notice, the lender shall thereupon have the right but not the obligation
to cure such default within any applicable cure period, running concurrently, that Tenant has, if any. Either party may by notice given
aforesaid change its address for all subsequent notices or add an additional party to be copied on all subsequent notices. Except where
otherwise expressly provided to the contrary, notice shall be deemed given upon delivery (or refusal thereof).

 

(d)                Except
as otherwise expressly provided in this Lease or as otherwise required by law, wherever in this Lease the consent of a Landlord or Tenant
is required to an act by or for the other party, such consent shall not be unreasonably withheld.

 

(e)                At
Landlord’s request from time to time (but not more than 1 time during any 12-month period), and subject to a customary non-disclosure
agreement, Tenant shall furnish Landlord with true and complete copies of Tenant’s most recent annual and quarterly financial statements
prepared by Tenant or Tenant’s accountants.

 

(f)                
Neither this Lease nor a memorandum of lease shall be filed by or on behalf of Tenant in any public record. Landlord may prepare
and file, and upon request by Landlord Tenant will execute, a memorandum of lease.

 

(g)              
The normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Lease or any exhibits or amendments hereto.

 

(h)              
The submission by Landlord to Tenant of this Lease shall have no binding force or effect, shall not constitute an option for the
leasing of the Premises, nor confer any right or impose any obligations upon either party until execution of this Lease by both parties.

 

(i)               
Words of any gender used in this Lease shall be held and construed to include any other gender, and words in the singular number
shall be held to include the plural, unless the context otherwise requires. The captions inserted in this Lease are for convenience only
and in no way define, limit or otherwise describe the scope or intent of this Lease, or any provision hereof, or in any way affect the
interpretation of this Lease.

 

(j)                
Any amount not paid by Tenant within 5 business days after its due date in accordance with the terms of this Lease shall bear interest
from such due date until paid in full at the lesser of the highest rate permitted by applicable law or 10 percent per year. It is expressly
the intent of Landlord and Tenant at all times to comply with applicable law governing the maximum rate or amount of any interest payable
on or in connection with this Lease. If applicable law is ever judicially interpreted so as to render usurious any interest called for
under this Lease, or contracted for, charged, taken, reserved, or received with respect to this Lease, then it is Landlord’s and
Tenant’s express intent that all excess amounts theretofore collected by Landlord be credited on the applicable obligation (or,
if the obligation has been or would thereby be paid in full, refunded to Tenant), and the provisions of this Lease immediately shall be
deemed reformed and the amounts thereafter collectible hereunder reduced, without the necessity of the execution of any new document,
so as to comply with the applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder.

 

(k)               
Construction and interpretation of this Lease shall be governed by the laws of the state in which the Premises is located, excluding
any principles of conflicts of laws.

 

(l)                
Time is of the essence as to the performance of Tenant’s and Landlord’s obligations under this Lease.

 

    - 16 -

     

    

 

(m)              
 All exhibits and addenda attached hereto are hereby incorporated into this Lease and made a part hereof. In the event of any conflict
between such exhibits or addenda and the terms of this Lease, such exhibits or addenda shall control.

 

(n)               
In the event either party hereto initiates litigation to enforce the terms and provisions of this Lease, the non-prevailing party
in such action shall reimburse the prevailing party for its reasonable attorney’s fees, filing fees, and court costs.

 

(o)                Tenant
agrees and understands that Landlord shall have the right (provided that the exercise of Landlord’s rights does not adversely affect
Tenant’s use and occupancy of the Premises or subject Tenant to additional costs), without Tenant’s consent, to place a solar
electric generating system on the roof of the Building or enter into a lease for the roof of the Building whereby such roof tenant shall
have the right to install a solar electric generating system on the roof of the Building. Upon receipt of written request from Landlord,
Tenant, at Tenant’s sole cost and expense, shall deliver to Landlord data regarding the electricity consumed in the operation of
the Premises (the “Energy Data”) for purposes of regulatory compliance, manual and automated benchmarking, energy management,
building environmental performance labeling and other related purposes, including but not limited, to the Environmental Protection Agency’s
Energy Star rating system and other energy benchmarking systems. Landlord shall use commercially reasonable efforts to utilize automated
data transmittal services offered by utility companies to access the Energy Data. Landlord shall not publicly disclose Energy Data without
Tenant’s prior written consent. Landlord may, however, disclose Energy Data that has been modified, combined or aggregated in a
manner such that the resulting data is not exclusively attributable to Tenant. Landlord shall furnish to Tenant all disclosures and other
documentation and information for the Premises required under Section 25402.10 of the California Public Resources Code and its implementing
regulations prior to the date of execution of the Lease. Notwithstanding anything herein to the contrary, Tenant acknowledges and accepts
that a violation by Landlord of this paragraph shall not give Tenant the right to rescind or terminate this Lease in any manner whatsoever.

 

(p)               This
Lease may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of such counterparts shall
constitute one Lease. Execution copies of this Lease may be delivered by facsimile or email, and the parties hereto agree to accept and
be bound by facsimile signatures or scanned signatures transmitted via email hereto, which signatures shall be considered as original
signatures with the transmitted Lease having the same binding effect as an original signature on an original Lease. At the request of
either party, any facsimile document or scanned document transmitted via email is to be re-executed in original form by the party who
executed the original facsimile document or scanned document. Neither party may raise the use of a facsimile machine or scanned document
or the fact that any signature was transmitted through the use of a facsimile machine or email as a defense to the enforcement of this
Lease.

 

(q)               
If Tenant shall be subjected to the provisions of the United States Bankruptcy Code or other law of the United States or any state
thereof for the protection of debtors as in effect at such time (each a “Debtor’s Law”) Tenant, Tenant as debtor-in-possession,
and any trustee or receiver of Tenant’s assets (each a “Tenant’s Representative”) shall have no greater right
to assume or assign this Lease or any interest in this Lease, or to sublease any of the Premises than accorded to Tenant this Paragraph
of the Lease, except to the extent Landlord shall be required to permit such assumption, assignment or sublease by the provisions of such
Debtor’s Law. In such case, Tenant’s Representative shall (a) remain subject to all of the terms and requirements of this
Paragraph; (b) shall have deposited with Landlord as security for the timely payment of rent an amount equal to the larger of: (1) three
(3) months’ Rent and other monetary charges accruing under this Lease; and (2) any sum specified in Paragraph 1 (Basic Lease Provisions)
of this Lease; and (c) shall have provided Landlord with adequate other assurance of the future performance of the obligations of Tenant
under this Lease. In the event that an attorney is employed or expenses are incurred to pursue, protect, enforce or litigate the obligations
hereunder, whether by suit, action or other proceeding, Tenant’s Representative promises to pay all such expenses and reasonable
attorneys’ fees, including, without limitation, reasonable attorneys’ fees incurred in or with respect to any bankruptcy proceeding.

 

    - 17 -

     

    

 

39.           Limitation
of Liability of Trustees, Shareholders, and Officers of Landlord. Any obligation or liability whatsoever of Landlord which may arise
at any time under this Lease or any obligation or liability which may be incurred by it pursuant to any other instrument, transaction,
or undertaking contemplated hereby shall not be personally binding upon, nor shall resort for the enforcement thereof be had to the property
of, its trustees, directors, shareholders, officers, employees or agents, regardless of whether such obligation or liability is in the
nature of contract, tort, or otherwise, except to the extent of a willful unlawful distribution of Landlord’s income to such parties.

 

40.           Accessibility; Americans with Disabilities Act.

 

(i)                 CASp
Statement. Landlord makes the following statement based on Landlord’s actual knowledge in order to comply with California Civil
Code Section 1938: The Building and Premises have not undergone an inspection by a Certified Access Specialist (CASp).

 

(ii)               
No Representation or Warranty. Since compliance with the Americans with Disabilities Act (ADA) is dependent upon Tenant’s
specific use of the Premises, Landlord makes no warranty or representation as to whether or not the Premises comply with ADA or any similar
legislation. In the event that Tenant’s use of the Premises requires modifications or additions to the Premises in order to be in
ADA compliance, Tenant agrees to make any such necessary modifications and/or additions at Tenant’s expense.

 

(iii)             
California Law Disclosure. A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject
premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require
a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining
a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee
or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee
for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards
within the premises.

 

(iv)              
Acknowledgement. Landlord and Tenant hereby mutually agree that in the event a CASp inspection is requested by Tenant, the fee
for the CASp inspection shall be paid by Tenant and the cost of making any repairs necessary to correct violations of construction-related
accessibility standards noted in the CASp inspection shall be paid by Landlord or Tenant pursuant to the terms of this Lease.

 

41.           WAIVER
OF JURY TRIAL. TENANT AND LANDLORD WAIVE ANY RIGHT TO TRIAL BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN LANDLORD AND TENANT ARISING OUT OF THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR
AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO.

 

42.           ASBESTOS
DISCLOSURE. LANDLORD HEREBY DISCLOSES TO TENANT THAT, BASED ON THE AGE OF THE BUILDING, LANDLORD HAS REASONABLE CAUSE TO BELIEVE
THAT ASBESTOS-CONTAINING MATERIALS MAY BE PRESENT IN THE BUILDING AND THE PREMISES. TENANT ACKNOWLEDGES THAT LANDLORD HAS SATISFIED ITS
OBLIGATION TO NOTIFY TENANT OF THE PRESENCE OF ASBESTOS-CONTAINING MATERIALS IN THE BUILDING PURSUANT TO CALIFORNIA HEALTH & SAFETY
CODE SECTION 25359.7, AND TENANT SHALL NOT DISTURB ANY MATERIALS THAT MAY CONTAIN ASBESTOS.

 

43.           Arbitration.
Except as otherwise expressly provided herein, in the event of any dispute or disagreement between the parties as to the validity, construction,
enforceability or performance of this Lease which cannot be resolved by the mutual agreement of the parties, and mindful of the high
cost of litigation, not only in dollars but time and energy as well, the parties intend to and do hereby establish a quick, final and
binding out-of-court dispute resolution procedure to be followed in the unlikely event any controversy should arise out of or concerning
the performance of this Lease. Accordingly, the parties do hereby covenant and agree as follows:

 

(i)                 Any
controversy, dispute, or claim of whatever nature arising out of, in connection with, or in relation to the interpretation,
performance or breach of this Lease, including any claim based on contract, tort, or statute, shall be determined, at the request of
any party to this Lease by binding arbitration before a retired judge of the applicable court of jurisdiction affiliated with
Judicial Arbitration & Mediation Services, Inc. (“J.A.M.S.”) conducted at a location determined by an arbitrator in
the County of Santa Clara, State of California administered by and in accordance with the then existing Rules of Practice and
Procedure of Judicial Arbitration & Mediation Services (J.A.M.S.), and judgment upon any award rendered by the arbitrator(s) may
be entered by any state or federal Court having jurisdiction thereof.

 

    - 18 -

     

    

 

(ii)               
The provisions of California Code of Civil Procedures Section 1283.05 or its successor section(s) are incorporated in and made
a part of this Lease. Depositions may be taken and discovery may be obtained in any arbitration under this Lease in accordance with such
section(s).

 

(iii)             
The arbitrator shall determine which is the prevailing party and may include in the award that party’s costs and reasonable
attorneys’ fees.

 

(iv)              
As soon as practicable after selection of the arbitrator, the arbitrator or such arbitrator’s designated representative shall
determine a reasonable estimate of anticipated fees and costs of the arbitrator, and render a statement to each party setting forth that
party’s pro rata share of such fees and costs. Thereafter each party shall, within ten (10) days of receipt of such statement, deposit
such sum with the arbitrator. Failure of any party to make such a deposit shall not otherwise serve to abate, stay or suspend the arbitration
proceedings.

 

(v)               
Any party shall have the right to apply for and obtain a temporary restraining order or other temporary or permanent injunctive
or equitable relief from a court of competent jurisdiction to enforce the provisions hereof or to otherwise protect its rights under this
Paragraph 43.

 

(vi)              
Notwithstanding the foregoing, the following claims, disputes or disagreements under this Lease are expressly excluded from the
arbitration procedures set forth herein: (a) disputes for which a different resolution determination is specifically set forth in this
Lease; (b) all claims by either party which (1) seek anything other than enforcement or determination of rights under this Lease or (2)
are primarily founded upon matters of fraud, willful misconduct, bad faith or any other allegations of tortious action, and seek the award
of punitive or exemplary damages; (c) claims relating to (1) Landlord’s exercise of any unlawful detainer rights pursuant to applicable
Legal Requirements or (2) rights or remedies used by Landlord to gain possession of the Premises or terminate Tenant’s right of
possession to the Premises, all of which disputes shall be resolved by suit filed in the applicable court of jurisdiction, the decision
of which court shall be subject to appeal pursuant to applicable Legal Requirements; and (d) any claim or dispute that is within the jurisdiction
of Small Claims Court.

 

(vii)            
The provisions of this Paragraph shall not limit, require the postponement of, or in any other way preclude the exercise of any
right or remedies otherwise enjoyed by any party to this Lease under the provisions hereof.

 

IN WITNESS WHEREOF, Landlord
and Tenant have executed this Lease as of the dates set forth below.

 

	TENANT:	 	LANDLORD:
	 	 	 
	ARCHER AVIATION, INC.

  a Delaware corporation	 	JACK DYMOND LATHING CO., LLC,

    a California limited liability company
	 	 	 
	By:	/s/ Adam Goldstein	 	By:	THE PILLAR
    GROUP, LP,
	Name:	Adam Goldstein	 	 	a California limited partnership its manager
	Title:	Cofounder	 	 	 
	 	 	 
	By:	 	 	By:	/s/ Mitchell Kalcic
	Name:	 	 	 	Mitchell Kalcic, Trustee
    of the Kalcic 
	Title:	 	 	 	Revocable Living Trust U.T.A. Separate
	 	 	 	 	 Property, its general partner

 

	Date:	12/15/2020	 	Date:	Dec 17, 2020

 

    - 19 -

     

    

 

 

EXHIBIT A

 

PROJECT SITE PLAN

 

ATTACHED TO AND A PART OF THE
LEASE AGREEMENT

DATED DECEMBER 11, 2020 BETWEEN

 

JACK DYMOND LATHING CO., LLC

and

ARCHER AVIATION, INC.

 

(see attached)

 

 

      - 20 -

     

    

 

EXHIBIT B

 

PREMISES SPACE PLAN

 

ATTACHED TO AND A PART OF THE
LEASE AGREEMENT

DATED DECEMBER 11, 2020 BETWEEN

 

JACK DYMOND LATHING CO., LLC

and

ARCHER AVIATION, INC.

 

 

      - 21 -

     

    

 

EXHIBIT C

 

PROJECT RULES AND REGULATIONS

 

ATTACHED TO AND A PART OF THE
LEASE AGREEMENT

DATED DECEMBER 11, 2020 BETWEEN

 

JACK DYMOND LATHING CO., LLC

and

ARCHER AVIATION, INC.

 

Rules and Regulations

 

The terms, conditions and
provisions of this Exhibit C are hereby incorporated into and are made a part of the Lease. Any capitalized terms used herein and
not otherwise defined herein shall have the meaning ascribed to such terms as set forth in the Lease:

 

1.             No advertisement, picture or sign of any sort shall be displayed on or outside the Premises or the Building without the prior
written consent of Landlord. Landlord shall have the right to remove any such unapproved item without notice and at Tenant’s expense.

 

2.             Tenant shall not regularly park motor vehicles in designated parking areas after the conclusion of normal daily business activity.

 

3.             Tenant shall not use any method of heating or air conditioning other than that supplied by Landlord without the prior written
consent of Landlord.

 

4.             All
window coverings installed by Tenant and visible from the outside of the Building require the prior written approval of Landlord.

 

5.             Except as expressly permitted by the Lease, Tenant shall not use, keep or permit to be used or kept any foul or noxious gas
or substance or any flammable or combustible materials on or around the Premises or the Building.

 

6.             Tenant
shall not alter any lock or install any new locks or bolts on any door at the Premises without the prior consent of Landlord.

 

7.             Tenant
agrees not to make any duplicate keys without the prior consent of Landlord.

 

8.             Tenant shall park motor vehicles in those general parking areas as designated by Landlord except for loading and unloading.
During those periods of loading and unloading, Tenant shall not unreasonably interfere with traffic flow within the Park and loading and
unloading areas of other Tenants.

 

9.             Tenant shall not disturb, solicit or canvas any occupant of the Building or Park and shall cooperate to prevent same.

 

10.           No person shall go on the roof without Landlord’s permission.

 

11.           Business machines and mechanical equipment belonging to Tenant which cause noise or vibration that may be transmitted to the
structure of the Building, to such a degree as to be objectionable to Landlord or other Tenants, shall be placed and maintained by Tenant,
at Tenant’s expense, on vibration eliminators or other devices sufficient to eliminate noise or vibration; provided, Landlord acknowledges
that Tenant will utilize power units and forklifts.

 

12.           All
goods, including material used to store goods, delivered to the Premises of Tenant shall be immediately moved into the Premises and shall
not be left in parking or receiving areas overnight.

 

      - 22 -

     

    

 

13.           Tractor
trailers which must be unhooked or parked with dolly wheels beyond the concrete loading areas must use steel plates or wood blocks under
the dolly wheels to prevent damage to the asphalt paving surfaces. No parking or storing of such trailers will be permitted in the auto
parking areas of the Park or on streets adjacent thereto.

 

14.           Forklifts which operate on asphalt paving areas shall not have solid rubber tires and shall only use tires that do not damage
the asphalt.

 

15.           Tenant is responsible for the storage and removal of all trash and refuse. All such trash and refuse shall be contained in
suitable receptacles stored behind screened enclosures at locations approved by Landlord.

 

16.           Tenant shall not store or permit the storage or placement of goods, or merchandise or pallets or equipment of any sort outside
of the Premises nor in or around the Building, the Park or any of the Common Areas of the foregoing. No displays or sales of merchandise
shall be allowed in the parking lots or other Common Areas.

 

17.           Except for guide dogs and other service animals permitted under applicable accessibility and disability laws, Tenant shall
not permit any animals, including, but not limited to, any household pets, to be brought or kept in or about the Premises, the Building,
the Park or any of the Common Areas of the foregoing.

 

18.           Tenant shall not permit any motor vehicles to be washed on any portion of the Premises or in the Common Areas of the Park,
nor shall Tenant permit mechanical work or maintenance of motor vehicles to be performed in the Common Areas of the Park. The parking
areas may not be used for washing, waxing, cleaning or servicing of any vehicle by Tenant or any of their agents, employees, invitees
or licensees. Parking spaces may be used only for parking automobiles.

 

19.           Tenant shall abide by the health and safety requirements of the federal government, State of California, County of Santa Clara,
and City of Mountain View implemented for the novel coronavirus (Covid-19), including, without limitation, exercising social distancing
and taking reasonable precautions to avoid the spread of infection. No person is permitted to enter the Building if she or he has any
symptoms of cough, fever, loss of taste or any other symptoms that may be associated with Covid-19. Tenant shall regularly review the
guidelines published by the Centers for Disease Control (CDC) and the state and local governmental agencies, and will implement the practices
and procedures suggested thereby.

 

20.           Landlord reserves the right to implement additional Rules and Regulations relating to access to the Premises, the Building
and/or the Project which are intended to promote and protect health and physical well-being and/or intended to limit the spread of Covid-19.

 

Notwithstanding anything to
the contrary herein, nothing contained in these Rules and Regulations shall prohibit Tenant from parking, storing, or maintaining Tenant’s
vehicles or performing research and development activities on such vehicles within the Premises otherwise in accordance with the terms
and conditions of the Lease.

 

      - 23 -

     

    

 

EXHIBIT D

 

ELECTRICAL WORK PLANS AND SPECIFICATIONS

 

ATTACHED TO AND A PART OF THE
LEASE AGREEMENT

DATED DECEMBER 11, 2020 BETWEEN

 

JACK DYMOND LATHING CO., LLC

and

ARCHER AVIATION, INC.

 

(see attached)

 

      - 24 -

     

    

 

 

      - 25 -

     

    

 

 

      - 26 -

     

    

 

 

      - 27 -

     

    

 

 

      - 28 -

     

    

 

EXHIBIT E

 

EXCLUDED ELECTRICAL PANEL

 

ATTACHED TO AND A PART OF THE
LEASE AGREEMENT

DATED DECENBER 11, 2020 BETWEEN

 

JACK DYMOND LATHING CO., LLC

and

ARCHER AVIATION, INC.

 

(see attached)

 

 

      - 29 -Exhibit 10.14

 

SUBLEASE
AGREEMENT

 

BETWEEN

 

DELTA
MIKE ENTERPRISES, LLC

 

AND

 

ARCHER

Aviation 

 

     

     

    

 

SUBLEASE AGREEMENT

 

THIS SUBLEASE AGREEMENT (“Lease”)
is entered into this March 1, 2021 (the “Effective Date”) by and between Delta Mike Enterprises, LLC, a California limited
liability company (“Lessor” or “Delta Mike”), and Archer Aviation (“Lessee”).

 

RECITALS:

 

A.       The
City of Salinas, a California charter city and municipal corporation of the State of California (the “Master Lessor”) owns
and operates the Salinas Municipal Airport in the City of Salinas, State of California; and

 

B.       The
Master Lessor and Delta Mike entered into a Lease Agreement Between the City of Salinas and Delta Mike Enterprises, LLC dated December
1, 2020 (the “Master Lease”) pursuant to which Delta Mike leased a portion of the Airport (the “Master Premises”)
for its own use; and

 

C.       Section
4.4 of the Master Lease allows Delta Mike to assign or transfer certain portions of the Master Premises to third parties in accordance
with the express terms and conditions of Section 4.4; and

 

D.       Lessee
desires to lease a portion of the Master Premises for the uses permitted and upon the terms and conditions herein.

 

NOW, THEREFORE, in consideration
of the foregoing, the mutual promises and covenants set forth in this Agreement, and for other good and valuable consideration, the sufficiency
of which is hereby acknowledged, the parties agree as follows:

 

Article
1 DEFINITIONS AND EXHIBiTS

 

Section 1.1           
Definitions.

 

The following capitalized
terms have the meanings set forth in this Section 1.1 whenever used in this Agreement, unless otherwise provided:

 

(a)          
“Additional Improvements” has the meaning given in Exhibit D.

 

(b)         
“Airport” means the Salinas Municipal Airport in the City of Salinas, State of California.

 

(c)         
“ASI” means Airmotive Specialties, Inc., a California corporation, that is an affiliate of Lessor.

 

(d)         
“Base Rent” has the meaning given in Section 2.4, and includes the combined rent for the Building.

 

(e)         
“Building” has the meaning given in Section 2.1.

 

    1

     

    

 

(f)           
 “Cancellation Date” has the meaning given in Section 2.3(c).

 

(g)          
“Cancellation Fee” has the meaning given in Section 2.3(c).

 

(h)          
“City Code” has the meaning given in Section 3.2(b).

 

(i)           
“Claims” has the meaning given in Section 5.1.

 

(j)           
“Clean and in Good Condition” has the meaning given in Section 6.9.

 

(k)          
“Commercial Property” means property that is offered for rent or lease to persons operating, or intending to operate,
a place of public accommodation as defined in Section 202 of Chapter 2 of Part 2 of Title 24 of the California Code of Regulations, or
afacility to which the general public is invited, at those premises and has the meaning given in Section 5.4.

 

(l)           
“Delta Mike” means Delta Mike Enterprises, LLC, a California limited liability company, as set forth in the opening
paragraph

 

(m)        
”Event of Default” means any material breach of this Lease

 

(n)         
“Extended Term” or “First Extended” has the meaning given in Section 2.3(b).

 

(o)         
“FAA” means the Federal Aviation Administration.

 

(p)         
“Land Use Plan” has the meaning given in Section 3.2(a).

 

(q)         
“Lease” means this Sublease Agreement, as set forth in the opening paragraph.

 

(r)          
“Lessee” means Archer Aviation Inc., as set forth in the opening paragraph.

 

(s)          
“Lessor” means the Delta Mike Enterprises, LLC, a California limited liability company, as set forth in the opening
paragraph.

 

(t)          
“Master Lease” means the Lease Agreement Between the City of Salinas and Delta Mike Enterprises, LLC dated December
1, 2020, as set forth in Recital B above.

 

(u)         
“Master Lessor” means the City of Salinas, a California charter city and municipal corporation of the State of California,
as set forth in the Recital A above.

 

(v)         
“Master Premises” means that portion of the Airport that Delta Mike leased from the Master Lessor pursuant to the Master
Lease, as set forth in Recital B above.

 

(w)        
”Original Term” has the meaning given in Section 2.3(a).

 

(x)          
“Part 21” has the meaning given in Section 3.3(c)(1).

 

    2

     

    

 

(y)         
 “Part 77” has the meaning given in Section 3.3(d) and Title 14 Aeronautics and Space, Chapter I, Subchapter E, Part
77 — Safe Efficient Use, and Preservation of the Navigable Airspace.

 

(z)          
“Premises” means the Building and the Ramp Space leased to Lessee pursuant to Section 2.1 of this Agreement.

 

(aa)       
“Released and Indemnified Parties” means Lessor, Master Lessor, ASI, and each of their officers, any elected and/or
appointed officials, employees, agents, representatives, volunteers, and assigns and as set forth in Section 5.1.

 

(bb)       
“Renewal Term” has the meaning given in Section 2.3(b).

 

(cc)        
“Rules” is defined in Section 3.2(a).

 

Section 1.2           
Exhibits.

 

The following exhibits are
attached to this Lease and are incorporated into it by this reference; provided, however, that any conflict between an exhibit and the
main body of this Lease will be construed in favor of the latter:

 

Exhibit A               Legal Description
of the Premises

Exhibit B               Depiction of
the Premises

Exhibit C               Permitted Uses
of Premises

Exhibit D               Description of
the Lessee Improvements

Exhibit E               Insurance Requirements

Exhibit F               Rental Schedule

 

Article
2 LEASE PROVISIONS

 

Section 2.1           
Premises.

 

(a)          Demise of the Premises. Lessor hereby agrees to lease to Lessee, and Lessee hereby agrees to lease from Lessor, approximately
(i) 570 square feet of office space on the upper level on the west side of the building and the north end, (ii) 5,185 square feet of hangar
space on the north East corner, and (iii) 3,000 square feet Shared ramp space for ingress and egress to the facility, located at 37 Mortensen
Ave., Salinas, CA 93905 (the “Building”). The Premises is described more particularly in Exhibit A and Exhibit B. Lessee may,
at its option, lease additional space outside the Premises for a generator at an additional charge.

 

Section 2.2           
Use of the Premises.

 

The Premises will be
used only for the purposes described in Exhibit C. The Premises may not be used for any other purpose without Lessor’s written
authorization. Lessee will be responsible for fencing or partitions and all other related costs in order to establish its exclusive
use of the ramp space that is part of the Premises. Lessee will have access to the main ramp area but will share the main ramp area
with other tenants of the Master Premises. Lessee will not use the Premises in any way that interferes with the Master Lessor (or
any other tenants’) use of the Master Premises. Lessee shall keep the main hanger doors closed at all times unless Lessee is
moving equipment or aircraft in and out of the hanger.

 

    3

     

    

 

Section 2.3           
Term.

 

(a)          Term.
Except as otherwise specifically set forth in this Section, the term of this Lease shall be for a period of two (2) years commencing
on March 1, 2021 (the “Commencement Date”) and ending March 31, 2023, unless sooner terminated in the manner and under the
conditions herein provided (the “Original Term”). Rent due pursuant to Section 2.4 begins upon commencement of the Original
Term.

 

(b)         Renewal Options. Provided Lessee is not in default under this Sublease Agreement beyond any applicable notice and cure periods,
Lessee may elect to renew this Sublease Agreement for up to three (3) one (1) year renewal periods (the “Extended Term” or
 “Extended Terms”) by giving Lessor written notice of each such election not less than three (3) months prior to the expiration
of the then current term, as may have previously been extended. If Lessee elects to renew, the Extended Terms of the Sublease Agreement,
except as otherwise specifically set forth herein, shall be on the same terms and conditions as set forth herein, except that there shall
be no option to extend beyond the third Extended Term and Rent shall be calculated as provided in Section 2.4 of this Sublease Agreement.

 

(c)          Lessee
Cancellation Option. Lessee shall have the right to cancel this lease Agreement any time after the last day of the twelfth (12th)
month following the Commencement Date. If Lessee desires to exercise this early cancellation option, then Lessee shall provide Lessor
with not less than six (6) months prior written notice.

 

(d)          Termination
of Master Lease. This Lease shall automatically terminate without any further action of either party upon the termination of the
Master Lease.

 

Section 2.4           
Rent.

 

(a)           Time
and Place of Payments. In the event that Lessee elects to pay rent annually, the payment will be due and payable in advance for the
first year on the Effective Date and each year thereafter on the annual anniversary of the Effective Date. In the event that Lessee elects
to pay on a monthly basis, the payment be due and payable in advance for the first month, prorated on the basis of a thirty (30) day
month for the number of days until the first (1st) day of the following month, and thereafter on the first (1st) day of each calendar
month.

 

Checks will be made
payable to Lessor and will be delivered to:

 

Delta Mike Enterprises,
LLC

Attn: David A. Teeters

820 Park Row, #639

Salinas, California
93901

 

The place and time of payment
may be changed at any time by the Lessor upon thirty (30) days’ written notice to Lessee. Lessee assumes all risk of loss and responsibility
for late payment charges.

 

    4

     

    

 

(b)           Amount of Rent.

 

(1)             Base Rent. During the Original Term, rent shall be payable, at the option of the Lessee, in either annual or equal monthly
installments.

 

(A)           The monthly rate for the Building and land on the Premises equals five thousand Three hundred eighty-two dollars and 90/100 ($5,382.90)
per month or sixty four thousand five hundred ninety four dollars and 80/100 ($64,594.80) per annum (“Base Rent”). The Base
Rent is based upon rent of (i) 570 square feet of office space at $1.00 per square foot, (ii) 5,185 square feet of hanger space at $0.85
per square foot. Lessee may, at its option, lease space outside the Premises for a generator at a rate of $0.40 per square foot.

 

(2)             Utilities.
In addition to the Base Rent, Lessee shall pay for its prorated share of all water, gas, electricity, sewage, and any other related services
supplied to the Premises. Lessee will establish phone/ethernet and trash/recycling services independent of the lease agreement. Lessor
will reasonably determine the pro rata allocation of all monthly utilities to Lessee and will notify Lessee on a monthly basis with the
rental invoice of Lessee’s proportionate cost, which Lessee will pay to Lessor on the first day of the month with no more than
10 days after receipt of such invoice. Lessor shall install submeters for all utility services to the Premises in order to more accurately
determine Lessee’s monthly utility usage. On the Commencement Date, Lessee will pay Lessor a one-time charge of eight hundred dollars
($900.00) to reimburse Lessor for all such submeter costs incurred by Lessor. Lessor represents and warrants that there is currently
220 three phases electrical available to the Premises.

 

(3)            Rent
Increases. Pursuant to the Rental Schedule in Exhibit F, commencing on the first anniversary of the Effective Date and on each anniversary
of the Effective Date thereafter, the annual Base Rent due under this Agreement shall be increased by an amount equal three and one quarter
percent (3.25%) of the annual Base Rent in effect during the immediately preceding year. If lease elects to install outside generator
the rent will increase the same of 3.25% per year as in rent schedule Exhibit F.

 

(c)            Delinquent Rent. Rent will be considered delinquent if it is not paid within ten (10) days of the due date. The parties
agree that Lessee’s failure to pay rent before it becomes delinquent will cause Lessor to suffer losses or damages, including but
not limited to transactions charges, collections costs, and the loss of use of funds, which would be difficult to predict and calculate
in advance. To compensate for such losses, Lessee will pay a late fee equal to ten percent (10%) of the amount of unpaid rent that is
due and owing at the time the rent became delinquent, which the parties agree represents a reasonable estimate of Lessor’s damages,

 

Section 2.5           
Security Deposit.

 

There will be a security deposit
equal to $2500.00 two thousand five hundred dollars and 00/100 refundable at the expiration of this lease or any earlier termination pursuant
to Article 6, lessee will return the Premises to Lessor in comparable or better condition and repair as it existed as of the Effective
Date, normal wear and tear excepted.

 

    5

     

    

 

Section 2.6           
Taxes.

 

(a)          Lessee will pay all taxes (including possessory interest tax), property related fees, and assessments that may be levied upon the
Premises, and any interest of Lessee therein, for the full term of this Lease. In addition, Lessee will solely pay (or reimburse Lessor)
for one hundred percent (100%) of any increase in the possessory interest tax (or any other tax) on the Premises resulting from any Lessee
improvement to the Premises.

 

(b)         
Lessor agrees to waive future tax assessments levied against the Premises by the Lessor for future improvements made by Lessor
to Airport Property, that are outside of Lessee’s Leased area, and if such improvements do not provide direct benefit to Lessee.
The waiver of future assessments shall not be construed or extended to waiving of existing taxes or assessments, the possessory interest
tax or future assessments by other government agencies.

 

Article
3 AIRPORT USE RESTRICTIONS

 

Section 3.1           
Lessor’s Reservations.

 

(a)          Utilities.
Lessor reserves the right, upon reasonable prior notice to Lessee, to install, lay, construct, maintain, repair, and operate such sanitary
sewers, drains, storm water sewers, pipelines, manholes, and connections; water, oil and gas pipelines; telephone, telegraph and electric
power lines; and the appliances and appurtenances necessary or convenient in connection therewith, in, over, upon, through, across, under,
and along any and all portions of the Premises. No right reserved by Lessor in this Subsection shall be so exercised as to interfere
unreasonably with Lessee’s permitted use or operations hereunder or to impair the security or any secured creditor of Lessee. Lessor
further agrees that rights granted to third parties by reason of this clause shall contain provisions that the Premises will be restored
as nearly as practicable to its original condition upon the completion of any construction. Lessor further agrees that should the exercise
of these rights temporarily interfere with the use of any and all of the Premises by Lessee, the rental and other charges due hereunder
shall be reduced in proportion to the interference with Lessee’s use of the Premises.

 

(b)          Reservations in Gross. The easements and rights herein reserved and excepted by Lessor, and the easements and rights herein
granted by Lessee to Lessor, shall be deemed both in gross and also appurtenant to each and every portion of the real property of the
Airport (save and except the Premises).

 

(c)          Other Federal Requirements. Lessee agrees that Lessee’s use of the Premises, including any initial construction, all
future construction, and any maintenance, repair, or modification of the Premises, will comply with all applicable Federal Aviation Regulations
or other applicable federal statutes, regulations, or rules affecting airports or aviation as may now be in force or that may be hereafter
adopted by any federal agency or instrumentality. This Subsection will be construed broadly to ensure compliance with applicable federal
requirements.

 

(d)          Based Aircraft Reporting. Lessee agrees to provide Lessor an accounting of Based Aircraft on an annual basis. The accounting
shall include: Year, Make, and Model of the Aircraft; name and phone number of registered owner.

 

    6

     

    

 

Section 3.2           City
of Salinas Regulations.

 

(a)          Airport
Rules and Land Use Plan Incorporated. The Salinas Municipal Airport Rules and Regulations (the “Rules”) and the Salinas
Municipal Airport Land Use Plan (the “Land Use Plan”), as those documents may be amended or superseded from time to time,
are incorporated into this Lease by this reference. Lessee will comply fully with the Rules, and Lessee’s use of the Premises will
be consistent with the Land Use Plan. Lessee will obtain a use permit and any other permits as may be required by the City of Salinas
for operation on the Premises. Lessor shall not be liable to Lessee for any adverse effect on Lessee’s operations or use of the
Premises based upon any change in the Rules or the Land Use Plan.

 

(b)          City
of Salinas Municipal Code. Lessee agrees to comply with applicable provisions of the City of Salinas Municipal Code (the “City
Code”), including but not limited to Chapter 4 (Public Property) and Chapter 37 (Zoning). Lessor agrees that the Premises are compliant
with such provisions as of the date of this Lease.

 

(c)          Other Applicable Laws, Rules, and Regulations. Lessee further agrees to comply with all other applicable laws, rules, and
regulations, for the use of the Premises and all other portions of the Airport, including any rules and regulations established by the
Salinas City Council, the Salinas Airport Commission, and the Salinas Airport Manager.

 

Section 3.3           
Federal Requirements.

 

(a)          Subordination
to Federal Agreements. This Lease is subordinate to the provisions and requirements of the Master Lease and any existing or future
agreement between the Master Lessor and the United States of America, relative to the development, operation, or maintenance of the Airport.

 

(b)          Non-Exclusive
Right. It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive
right within the meaning of 49 U.S.C. sections 40103 (e) and 47107(a)(4).

 

(c)          Nondiscrimination.

 

(1)            The Lessee for itself, its personal representatives, successors in interest, and assigns, as a part of the consideration hereof,
does hereby covenant and agree that: no person on the grounds of race, color or national origin shall be excluded from participation in,
denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; that in the construction of any improvements
on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall
be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; that the Lessee shall use the
Premises in compliance with all other requirements imposed by or pursuant to 49 C.F.R. Part 21 - Nondiscrimination in Federally Assisted
Programs of the Department of Transportation — Effectuation of Title VI of the Civil Rights Act of 1964; 49 CFR Part 23 -Participation
of Disadvantaged Business Enterprise in Airport Concessions; 49 CFR Part 26 -Participation By Disadvantaged Business Enterprises In Department
Of Transportation Financial Assistance Programs and as said Regulations may be amended.

 

    7

     

    

 

(2)              
 The Lessee will furnish services on a reasonable and not unjustly discriminatory basis to all users, and charge reasonable and
not unjustly discriminatory prices for each unit or service, provided that the contractor may be allowed to make reasonable and nondiscriminatory
discounts, rebates, or other similar types of price reductions to volume purchasers.

 

(3)              
The Lessee assures that it will comply with pertinent statutes, Executive Orders and such rules as are promulgated to assure that
no person shall, on the grounds of race, creed, color, national origin, sex, age or handicap be excluded from participating in any activity
conducted with or benefiting from Federal assistance. This Provision obligates the Lessee or its transferee for the period during which
Federal assistance is extended to the airport program, except where Federal assistance is to provide, or is in the form of personal property
or real property or interest therein or structures or improvements thereon. In these cases, the Provision obligates the party or any transferee
for the longer of the following periods: (a) the period during which the property is used by the sponsor or any transferee for a purpose
for which Federal assistance is extended, or for another purpose involving the provision of similar services or benefits; or (b) the period
during which the airport sponsor or any transferee retains ownership or possession of the property. In the case of contractors, this Provision
binds the contractors from the bid solicitation period through the completion of the contract.

 

(d)          Height Restrictions. The Lessee by accepting this Sublease Agreement expressly agrees for itself, its successors and assigns
that it will not erect nor permit the erection of any structure or building nor permit object of natural growth or other obstruction on
the land leased hereunder above a height as determined by the application of the requirements of 14 C.F.R. Part 77. In the event the aforesaid
covenants are breached, the owner reserves the right to enter upon the land hereunder and to remove the offending structure or object
or cut the offending natural growth, all of which shall be at the expense of the Lessee.

 

(e)          FAA
Form 7460-1, Notice of Construction or Alteration. The Lessee agrees to comply with the notification and review requirements of 14
C.F.R. Part 77 in the event future construction of a building is planned for the leased premises or in the event of any planned modification
or alteration of any present or future building or structure situated on the leased premises. This requires the submission of FAA Form
7460-1, Notice of Construction or Alteration to the FAA.

 

(f)           Interference. The Lessee by accepting this Lease agrees for itself, its successors and assigns that it will not make use
of the Leased premises in any manner which might interfere with the landing and taking off of aircraft or otherwise constitute a hazard.
In the event the aforesaid covenant is breached, the owner reserves the right to enter upon the premises hereby leased and cause the abatement
of such interference at the expense of the Lessee.

 

(g)          Right of Flight. There is reserved to the Lessor and the Master Lessor, and their successors and assigns, for the use and
benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Leased Premises. This public
right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation
or flight through said airspace or landing at, taking off from, or operating on the airport premises.

 

    8

     

    

 

(h)          Development of Landing Area. The Master Lessor reserves the right to further develop or improve the landing area of the
airport as it sees fit, regardless of the desires or views of the Lessee and/or Delta Mike Enterprises, and without interference or hindrance.

 

(i)           Security. The Lessee will conform to airport, Master Lessor and FAA safety and security rules and regulations regarding
use of the airport operations area including runways, taxiways, aircraft aprons by vehicles, employees, customers, visitors, etc. in order
to prevent security breaches and avoid aircraft incursions and vehicle / pedestrian deviations; will complete and pass airfield safe driving
instruction program when offered or required by the airport; and will be subject to penalties as prescribed by the airport for violations
of the airport safety and security requirements. In addition, Lessee will be obligated to provide adequate security and supervision so
as to ensure that its licensees, invitees and guests only use and occupy the Premises that Lessee is leasing pursuant to the Lease, and
that no such individuals shall leave the Premises and go to any other portion of the Master Premises. If necessary, Lessee shall be obligated
to install fencing or other barriers to as to insure that its licensees, invitees, and guests solely remain on the Premises.

 

(j)           Facility Repairs. The Master Lessor reserves the right, but shall not be obligated to the Lessee, to maintain and keep in
repair the landing area of the airport and all publicly owned facilities of the airport, together with the right to direct and control
all activities of the (lessee, licensee, permittee, etc.) in this regard.

 

(k)          War or National Emergency. This Lease and all the provisions of it are subject to whatever right the United States of America
has affecting the control, operation, regulation, and taking over of the Airport or the exclusive or non-exclusive use of the Airport
by the United States of America during the time of war or national emergency.

 

(l)           No Liability of Lessor. Lessor shall not be liable to Lessee for any adverse effect on Lessee’s operations or use
of the Premises based upon any change in federal rules, regulations or policies.

 

Article
4 OTHER COVENANTS

 

Section 4.1           Lessee’s
Maintenance and Repair Obligations. Except as otherwise specifically provided in this Sublease Agreement, Lessee will be solely
responsible for keeping the Premises clean and in good condition and repair, reasonable wear and tear excepted. Master Lessor shall,
at its own cost and expense, be responsible to repair and maintain the structural components of the Premises. For the purpose of
this Lease, structural components includes the foundation, exterior walls, roof(s), windows, and floor structures. Lessee shall, at
its own cost and expense, be responsible to repair and maintain non-structural components of the Premises. For the purpose of this
Lease, non-structural components includes but is not limited to heating, air-conditioning and ventilation systems exclusively
serving the Premises, telephone and communication systems, plumbing and electrical systems exclusively serving the Premises, all
appliances, lighting and light bulbs, flooring, ceilings, walls, doors, door locks, door frames, stairs, large hangar doors, and
electric drive mechanisms for the hangar doors. Lessee shall not be responsible for the top rollers and guides and exterior paint
for the large hanger doors. Lessee shall maintain the Premises in an aesthetically pleasing manner, including without limitation
removing weeds and debris on the Premises, replacing components that are broken or worn, refreshing painted surfaces associated with
the Premises, ensuring the Premises is pest free, and preventing the accumulation of stored materials outside. Lessee will also be
responsible for all damage or destruction of the Premises caused by of Lessee or by Lessee’s employees, agents, licenses,
contractors, assignees, sublessees, guests, or invitees.

 

    9

     

    

 

(a)          Lessor’s
Right to Cure; Additional Rents. If, in the opinion of the Lessor’s Airport Manager, the Premises are not being properly maintained,
the Airport Manager shall, after giving written notice to Lessee and after a reasonable time to cure, cause such repair and maintenance
to be made. The cost of such maintenance or repair will be added to the rent, and will be due immediately upon invoice.

 

Section 4.2           
Signs.

 

Lessee may post such signs
as necessary and usual in the conduct of its business in and upon the Premises. Location, size, shape, and copy of all signs will be in
accordance with the City Code, and will be approved by Master Lessor’s Airport Manager, Community Development Department, and Permit
Center prior to installation. Subject to all requirements of the City Code and other applicable laws, approval will not be withheld unreasonably.

 

Section 4.3           
Liens and Claims.

 

(a)          Possessory
Interest. Lessee acknowledges that this Lease may create a real property possessory interest subject to taxation. Without limiting
Lessee’s obligation pursuant to this Lease to pay taxes, assessments, property related fees, and other charges and impositions
associated with the Premises, payment of real property taxes levied on such possessory interest will be the sole responsibility of Lessee,
with no right of offset of rent, charges, or other fees due under this Lease.

 

(b)          No
Liens. Lessee will pay all taxes, assessments, property related fees, and other charges and impositions that Lessee is obligated
to pay under this Lease before the same become delinquent. Furthermore, Lessee will not permit or suffer any liens or encumbrances to
be imposed upon the Premises, the Airport, or any building or structure thereon as a result of nonpayment of any obligation of Lessee.
Neither will Lessee permit or suffer any lien, claim, or demand to be imposed upon the Premises, the Airport, or any building or structure
thereon, arising from any work of construction, repair, restoration, or maintenance at or on the Premises (except liens, claims, or demands
suffered by or arising from the actions of Lessor).

 

(c)          Payment
Bonds. To ensure the completion of works of improvement and to protect the Premises from liens, prior to the commencement of any
work of construction, repair, restoration, or maintenance at or on the Premises, which exceeds Fifty Thousand and No/100 Dollars ($50,000.00)
in cost, Lessee shall furnish to Master Lessor’s Airport Manager, at no cost to Lessor, payment bonds approved as to form by the
Master Lessor’s City Attorney in the full amount of the total cost of the contract or contracts for the work.

 

(d)          Contesting
Charges. Notwithstanding anything to the contrary in this Section, with prior notice to Lessor, Lessee may contest any tax,
assessment, fee, charge, imposition, claim, or demand for payment that may become a lien on Lessor’s property if left unpaid,
provided that nonpayment is permitted only during the pendency of any contest without the foreclosure of the lien or the imposition
of any fine or penalty that could become a debt of Lessor. Lessee will prosecute any contest diligently, and will provide such
security as may be requested by, and acceptable, to Lessor to hold Lessor, Master Lessor and both Lessor’s and Master
Lessor’s property free from liability.

 

    10

     

    

 

(e)          Payment
by Lessor. If Lessee fails to pay any amount required by this Section to be paid by Lessee, Lessor will have the right, but not the
duty, on five (5) days’ prior written notice to Lessee, to pay, discharge, or adjust such obligation for Lessee’s benefit.
On written demand from Lessor, Lessee will, as additional rent, reimburse Lessor within ten (10) days for the full amount expended by
Lessor, together with interest from the date of payment at the lesser of ten percent (10%) or the maximum amount allowed by law.

 

Section 4.4           
Right to Assign or Transfer.

 

(a)           Limitation on Assignment, Subleasing, Encumbrance, or Transfer. Lessee will not sublease the Premises or otherwise encumber,
assign or transfer this Lease, or any right or interest herein, to any of the buildings and improvements on the Premises, without the
prior written consent of both the Lessor and Master Lessor, which shall not be unreasonably withheld, and no such assignment, sublease
or transfer, whether voluntary or involuntary, by operation of law, under legal process or proceedings, or otherwise, shall be valid or
effective without such prior written consent.

 

(1)            Lessee shall provide both Lessor and Master Lessor copy of written agreement between Lessee and Sublessee(s). The written agreement
shall include the following provisions:

 

(A)           Each
Sublessee shall secure and maintain a Salinas Municipal Airport Use Permit and insurance coverage in types and amounts, and subject to
such conditions, as specified in the Permit.

 

(B)           Each Sublessee shall indemnify, hold harmless, and defend (with counsel reasonably acceptable to Lessor and Master Lessor) the
Released and Indemnified Parties against any and all claims, actions, causes of action, liabilities, costs (including reasonable attorneys’
fees), expenses, liens, judgments, damages, or civil or administrative fines (collectively, “Claims”) caused by Sublessee’s
use of the Premises, including, without limitation, Claims for property damage, personal injury, or wrongful death; provided, however,
that Lessee’s indemnification obligation does not extend to Claims arising out of the Released and Indemnified Parties gross negligence
or willful misconduct.

 

(b)          Based Aircraft Reporting. Sublessee shall provide Lessee an accounting of Based Aircraft on an annual basis. The accounting
shall include: Year, Make, and Model of the Aircraft; name and phone number of registered owner.

 

(c)          Change
in Control. If Lessee is a corporation, unincorporated association, partnership, or other business entity, the transfer,
assignment, or hypothecation of any stock or interest in said entity, in the aggregate in excess of fifty percent (50%), transfer of
the general partner or managing general partnership interest in a limited partnership, or transfer of the manager of a limited
liability company, will be deemed an assignment within the meaning of this Lease. The following transfers are excepted from the
provisions of this Subsection:

 

    11

     

    

 

(1)            Transfer or assignment of stock or interest to a shareholder or member of Lessee or an entity controlled by, under common control
with, or controlling Lessee, or pursuant to a merger or sale of all or substantially all of the assets of Lessee, or any acquisition of
a majority of the stock or equity of Lessee.

 

(2)            Transfer
or assignment of stock or interest to a spouse, child, or grandchild of a shareholder, member, or partner, or to a trust for the benefit
of the same.

 

(3)            The
transfer or sale of stock for financing purposes (such a public offering, merger with SPAC, or Series A financing).

 

(d)           Lessor’s Option to Terminate. Notwithstanding any other provision in this Lease regarding default or termination,
should Lessee attempt to make or suffer to be made any such encumbrance, assignment, sublease, or transfer in violation of this Section,
or should any right or interest of Lessee hereunder or in or to the Premises be transferred or sold by or under court order or legal process,
or otherwise, then any of the foregoing events will be deemed a breach of this Lease and thereupon Lessor may, at its option, terminate
this Lease immediately by written notice to Lessee, or exercise other rights provided by law or in this Lease to be exercisable by Lessor
in the event of any default or breach under this Lease. Should both Lessor and Master Lessor consent to any such encumbrance, assignment,
sublease, or transfer, such consent will not constitute a waiver of any of the restrictions of this Section, and the same will apply to
each and every encumbrance, assignment, sublease, or transfer hereunder and shall be severally binding upon each and every encumbrancer,
assignee, sublessee, transferee, and other successor in interest of Lessee.

 

(e)           Grounds
for Withholding Consent. It is agreed and understood that either or both Lessor and/or Master Lessor may withhold their consent to
any assignment, transfer, sublease, or encumbrance under the following circumstances:

 

(1)             If a proposed assignee or sublessee will not covenant in writing to keep, perform, and be bound by each and all the covenants and
conditions of this Lease, andto assume any previously accrued obligations hereunder.

 

(2)            
If Lessee is in default under this Lease at such time in any respect.

 

(3)            If construction, repair, or demolition of improvements on the Premises by Lessee is in progress, or if said construction, repair,
or demolishment is incomplete.

 

(4)            Until a determination has been made by either Lessor or Master Lessor that the assignee, transferee, or other successor in interest
of Lessee can pay rent and operate in accordance with the standards required by Lessor or Master Lessor.

 

    12

     

    

 

(5)            Either Lessor or Master Lessor is not satisfied, in its sole and absolute discretion, that Lessee is willing and able to discharge
any proposed encumbrance.

 

(6)            Any
other reasonable basis as permitted by law.

 

(f)           Incorporation of Lease; Effect of Assignment. Any document that purports to assign, sublease, transfer, or encumber the
Premises or any part thereof, will incorporate directly or by reference all provisions of this Lease unless otherwise amended in writing.
Upon any assignment or transfer approved by Lessor and Master Lessor, Lessee will be relieved of any further obligations arising under
this Lease after the effective date thereof.

 

Section 4.5           
Encumbrances of Leasehold Interests.

 

(a)           Subject
to Section 4.6, Lessee may encumber Lessee’s interest in the Premises to secure a loan from a federally insured institutional lender
to construct the Tenant Improvements and any Additional Improvements, provided the unpaid balance of any such loan will not at any time
exceed Seven Hundred Fifty Thousand and No/100 Dollars ($750,000.00) without the prior written consent of Master Lessor’s City
Council. Such encumbrance will be subject, however, to the following covenants and conditions:

 

(1)            Any
document evidencing the loan or any security given for it must be filed with Master Lessor’s City Clerk within ten (10) days after
its execution.

 

(2)            Except
as otherwise provided in this Section, any instrument securing the loan will be subordinate to this Lease and Lessor’s interests
in the Premises, the Master Lease, the Airport, and all improvements thereon. In the event of any conflict between the provisions of
this Lease and the provisions of such security instrument, the provisions of this Lease will control, and any person acquiring any interest
in the Premises by foreclosure, trustee’s sale, or any similar remedy, will acquire that interest subject to Lessee’s obligations
under this Lease.

 

(3)            If Lessee elects to terminate this Lease pursuant to Section 6.6 in the case of any casualty, Lessee will be obligated disburse
the proceeds of any insurance first to repay any loan secured by Lessee’s interest in the Premises. The remaining proceeds, if any,
will be paid to Lessor for such amounts, if any, due and owing to Lessor by Lessee under this Lease. Thereafter, any proceeds remaining
may be disbursed to Lessee.

 

(b)          To
the extent that a loan secured by Lessee’s interest in the Premises is reasonably necessary for Lessee to finance the Tenant Improvements
and any Additional Improvements authorized by Lessor, and provided that Master Lessor has approved such encumbrance pursuant to Section
4 and this section, Lessor will not unreasonably withhold agreement to customary creditor protections, including by providing the lender
notice and an opportunity to cure any breach of this Lease on Lessee’s behalf prior to exercising any remedy hereunderthat would
threaten the lender’s security.

 

(c)          Regardless of whether Lessee obtains a loan for any improvements, Lessee shall be solely obligated for making any and all changes
required by the Americans with Disabilities Act associated with any such improvements (whether as Tenant Improvements, Additional Improvements
or otherwise), all at Lessee’s sole cost and expense.

 

    13

     

    

 

Section 4.6           Right
to Enter.

 

Lessor reserves the right
by its officers, employees, agents, and contractors, to enter the Premises upon prior notice at reasonable times (except in cases of emergency),
(i) for any reason otherwise authorized under this Lease, including as allowed in Section 3.1; (ii) to inspect the Premises and to ensure
compliance with this Lease; (iii) in furtherance of any maintenance obligation of Lessor; (iv) to post notices, including notices of non-responsibility
for improvements, alterations, or repairs if an when Lessor desires to do so; and (v) whenever reasonably necessary in the interest of
public health or safety.

 

Section 4.7           
Abandonment.

 

Lessee may not abandon, vacate,
or surrender the Premises during the Original Term or any Extended Term, except as otherwise provided in this Lease. In the case of any
unauthorized abandonment, Lessor may reenter and relet the Premises. Mere failure to operate the Premises will not constitute abandonment
provided the Lessee continues to maintain the Premises and pay all rent and other obligations hereunder. Any belongings or other property
left on the Premises following termination of this Lease or abandonment of the Premises will, at the option of Lessor, be deemed abandoned.

 

Section 4.8           
Recording of Lease Forbidden.

 

Lessee will not record this
Lease, or a memorandum or abstract of it, and will not cause or permit any other person to do the same on its behalf, without express
written permission from Master Lessor’s Airport Manager.

 

Section 4.9           
Licenses and Permits.

 

Lessee has obtained or will
obtain at such time as may be necessary, each and every approval, license or permit as may be necessary to operate the Premises as contemplated
hereunder.

 

Article
5 RISK MANAGEMENT

 

Section 5.1           
Indemnification.

 

Lessee hereby agrees to indemnify,
release, hold harmless, and defend (with counsel reasonably acceptable to Master Lessor) Lessor, ASI, and Master Lessor (and its elected
and appointed officials) and their respective officers, employees, representatives, volunteers, and agents (hereinafter collectively the
 “Released and Indemnified Parties”) against any and all claims, actions, causes of action, suits, liabilities, costs (including
reasonable attorneys’ fees), expenses, liens, judgments, damages, or civil or administrative fines (collectively, “Claims”)
caused by or related to Lessee’s use of the Premises, including, without limitation, Claims for property damage, personal injury,
or wrongful death; provided, however, that Lessee’s indemnification obligation does not extend to Claims arising out of the gross
negligence or willful misconduct of the Released and Indemnified Parties.

 

    14

     

    

 

Section 5.2           
Insurance.

 

Lessee will provide insurance
coverage in types and amounts, and subject to such conditions, as specified in Exhibit E.

 

Section 5.3           
Reporting Damage.

 

Lessee will report any transaction
or occurrence at or relating to the Premises for which Lessor may have significant exposure to liability. Such report will be made immediately
by phone, and within one (1) business day in writing, to Lessor and Master Lessor’s Airport Manager or such other person as Lessor
(or Master Lessor) may designate in writing. The written report will describe the incident in reasonable detail, including a description
of the nature of the damages and the identity and contact information (if available) of any witnesses. The report will also identify any
insurance policy that may be available to cover the damage.

 

Section 5.4           
Disclaimer and Release; ADA Notice.

 

(a)          General Release.

 

(1)            Lessee agrees that this is a commercial lease negotiated in good faith and that it was provided a reasonable opportunity prior
to entering into this Agreement to inspect the Premises and to conduct such due diligence as it, in its discretion, has deemed appropriate.
LESSEE ACCEPTS THE PREMISES SUBJECT TO AND AS PROVIDED IN THIS LEASE IN ITS CURRENT “AS-IS” CONDITION, INCLUDING ALL FAULTS
OR DEFECTS, ZONING CONDITIONS, OR HAZARDOUS CONDITIONS KNOWN OR UNKNOWN (IF ANY). Lessor and Master Lessor will not be liable to Lessee
for, and Lessee hereby releases the Released and Indemnified Parties from any and all liability, whether in tort or in contract, for any
injury, damage, or loss resulting from or attributable to the condition or status of the Premises. Lessee hereby waives and agrees not
to commence any action, legal or administrative proceeding, cause of action, or suit in law or equity, of whatever kind or nature, directly
or indirectly against the Released Parties in connection with the Premises, this Lease or Lessee’s use of the Premises pursuant
to this Lease.

 

(2)             Lessee, on its own behalf and of any other party claiming by or through Lessee, expressly waives the provisions of Civil Code Section
1542, which states:

 

A GENERAL RELEASE
DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING
THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

 

	 	Lessee’s Initials:	/s/AG	 

 

(3)              
Lessee acknowledges that the release set forth above is an integral part of this Lease, and that neither Lessor nor Master Lessor
would not have agreed to enter into this Lease without it. The release shall survive the expiration and termination of this Lease.

 

    15

     

    

 

(4)            Notwithstanding anything to the contrary herein, this Subsection shall not be construed to hold Released and Indemnified Parties
harmless for liability for the breach of this Lease or for intentional and active fraud, willful misconduct, or gross negligence.

 

(b)          Bailee
Release. It is hereby agreed and understood that Lessor and Master Lessor in no way purport to be a bailee, and are therefore not
responsible in any way for any damage to the property of Lessee or Lessee’s contractors, agents, employees, guests, or invitees.

 

(c)          CASp
Notice. Pursuant to Civil Code Section 1938, Lessor is required to advise Lessee of the following:

 

A Certified Access Specialist
(CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related
accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial
property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy
or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements
for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary
to correct violations of construction-related accessibility standards within the premises.

 

(d)          CASp
Inspection. Lessee and Lessor mutually agree if either party obtains a CASp inspection, the cost of the CASp Inspection will be the
responsibility of the Party who contracts the CASp inspector, and the cost of making any repairs necessary to correct violations of construction-related
accessibility standards within the premises will be shared or divided based on the context or reason of the violation. In general, the
Lessee is responsible for all costs and expenses of complying with federal, state and local statues, regulations and guidelines imposing
standards for accessibility applicable to the Premises with respect to the following:

 

(1)            Violations
arising from Lessee’s or Sublessee’s tenancy, occupancy; business operations, or change in existing use;

 

(2)            Violations
arising from Lessee’s or Sublessee’s improvements, maintenance, or modification to the Premises.

 

Lessee’s failure to
comply with such laws shall be subject to Lessee’s obligations stated within this Lease, including, without limitation, in Section
5.1.

 

Lessor is responsible for
all costs and expenses of complying with federal, state and local statues, regulations and guidelines imposing standards for accessibility
applicable to the Premises with respect to the following:

 

(3)             Violations of access corridors up to but not including the Premise;

 

(4)            Violations within, about, on the Premises outside the responsibility of the Lessee.

 

    16

     

    

 

(e)          Assumption of Risks and Waiver. Lessee assumes all risks associated with the use of the Airport and Premises for aviation
purposes, including, without limitation, risks (including without limitation any psychological risks) associated with noise, vibration,
currents and other effects of air, illumination, and fuel consumption. Lessee expressly waives any and all claims whatsoever against
the Released and Indemnified Parties arising in any manner out of the normal operation of the Airport as an airport, and waives any nuisance
claim Lessee may have against another lessee or licensee of Airport property so long as the lessee or licensee is in full compliance
with all applicable laws, as well as with its lease or license. Lessees within the scope of the foregoing waiver are intended beneficiaries
of the waiver.

 

Section 5.5           
Hazardous Substances.

 

(a)          Notice of Releases. Pursuant to Health and Safety Code Section 25359.7, Lessee will notify both Lessor and Master Lessor
in writing within a reasonable time after Lessee obtains knowledge of any material release of hazardous substances and of any hazardous
substances that have come to be located beneath the Airport.

 

(b)          Removal
of Hazards. Prior to the expiration of this Lease, Lessee will, at its sole expense, remove all items of personal property from the
Premises, including but not limited to all flammable substances and hazardous materials and wastes (as defined by state and federal law)
at the time of expiration of this Lease to the extent released or deposited by Lessee and to the extent the presence of which violates
applicable Law. Lessee will have no liability or responsibility for removal of flammable substances or hazardous materials and wastes
migrating to beneath the Leased Premises or existing prior to the Effective Date.

 

(c)          Availability
of Records. Lessee shall make available for inspection to the Lessor and the Master Lessor, all records relating to the maintenance,
release, mitigation, cleanup and disposal of any hazardous substances on the Premises.

 

(d)          Compliance
with Applicable Laws. Lessee shall comply with all federal, state and local laws and regulations relating to hazardous materials
and wastes it uses, stores, releases or discharges on the Premises during the term of this Lease, and shall timely comply with the orders
of any governmental agencies relating thereto. Lessee will be responsible for meeting current storm water pollution prevention best management
practices, as identified by Master Lessor in Master Lessor’s Storm Water Pollution Prevention Plan, as it may be amended from time
to time. Such practices include, without limitation:

 

(1)            Providing
a labeled and stocked spill kit on site;

 

(2)            Proper storage and labeling of hazardous substances or components of potentially hazardous substances;

 

(3)            Providing
personnel with appropriate routine spill response training;

 

(4)            Keeping
repair, construction, and maintained appropriately covered from wet weather;

 

    17

     

    

 

(5)              
 Making appropriate use of drip pans, dry cleanup models, and spill and overflow protection; and

 

(6)              
Removing pollutants offsite as necessary or appropriate.

 

Lessee understands and agrees
that failure to comply with such best practices may result in Lessee no longer being included by Master Lessor in Master Lessor’s
participation in the general permit of the California State Water Resources Control Board concerning storm water discharges.

 

(e)          Indemnification. Without limiting Lessee’s indemnification obligations in any manner under this Lease, Lessee agrees
to hold harmless, release, indemnify, and defend the Released and Indemnified Parties for any liability to the extent caused by Lessee’s
breach of this Section.

 

Section 5.6           
Survival.

 

Lessee’s duties under
this Article survive the termination of this Lease.

 

Article
6 DEFAULT AND TERMINATION

 

Section 6.1           
Termination for Nonpayment of Rent or Other Charges.

 

Lessee’s failure to
pay rent or any other charge due to Lessor under this Agreement within ten (10) days of the due date for such payment will constitute
an Event of Default. Upon the occurrence of such Event of Default, Lessor will provide Lessee with written notice of the default. Unless
the default is cured or waived within thirty (30) days of such notice, or unless the parties reach some other agreement in writing regarding
payment of the amount due, the Lessor may take whatever action at law or in equity as may appear reasonably necessary to enforce performance
or observance of any obligations, agreements, or covenants of the Lessee under this Lease, including without limitation, termination of
this Lease. In the event of such default, the Lessor’s remedies shall be cumulative, and no remedy expressly provided for in this
Lease, Article, or Section shall be deemed to exclude any other remedy allowed by law.

 

Section 6.2           
Other Events of Default.

 

In the case of any Event of
Default under this Lease other than as described in Section 6.1, Lessee will cure the default on thirty (30) days’ written notice
from Lessor; provided that if a cure cannot reasonably be accomplished within such time, Lessee will commence a cure within thirty (30)
days, and will diligently pursue a cure as quickly as reasonably possible. If the default is not timely cured, the Lessor may take whatever
action at law or in equity as may appear reasonably necessary to enforce performance or observance of any obligations, agreements, or
covenants of the Lessee under this Lease, including without limitation, termination of this Lease. In the event of such default, the Lessor’s
remedies shall be cumulative, and no remedy expressly provided for in this Section shall be deemed to exclude any other remedy allowed
by law.

 

    18

     

    

 

  

Section 6.3           
Future Expansion.

 

Lessor may, upon nine (9)
months’ prior written notice, terminate this Lease in the event Master Lessor requires the Premises in connection with the future
expansion or operation of the Airport. Lessor will abate any rent due from Lessee accordingly, and will pay Lessee the fair market value
of the Tenant Improvements and any Additional Improvements constructed with Lessor’s permission, less the amount of the Tenant Improvements
Allowance (if any).

 

Section 6.4           
Force Majeure.

 

(a)          
Termination by Lessor. Lessor may terminate this Lease, on such notice as is reasonable under the circumstances, due to
an act of God, war, civil unrest, terrorism, the action of another government agency, or for otherwise for good cause not reasonably within
Lessor’s control, that would prevent Lessee’s use of the Premises as contemplated under this Lease, and that gives rise to
a need to regain possession of the Premises. Lessor will abate any rent due from Lessee accordingly, and will pay Lessee the fair market
value of the Tenant Improvements and any Additional Improvements constructed with Lessor’s permission, less the amount of the Tenant
Improvements Allowance (if any).

 

(b)          Termination by Lessee. If, due to an act of God, war, civil unrest, terrorism, the action of another government agency,
or for otherwise for good cause not reasonably within Lessee’s control, Lessee can no longer use the Premises as contemplated under
this Lease, Lessee may, upon three (3) months’ written notice, terminate this Lease. Lessor will abate Lessee’s rent during
such period of notice, and will refund any prepaid rent for the period following termination, but will otherwise have no liability for
any damages to Lessee.

 

Section 6.5           
Insolvency.

 

Insolvency by Lessee will
constitute an Event of Default under this Lease. Insolvency includes any circumstance in which Lessee has, (i) made a general assignment
for the benefit of creditors; (ii) filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by its
creditors (provided that the filing of any involuntary petition in bankruptcy against Lessee will not constitute a breach of this lease
unless and until there is an adjudication that Lessee is bankrupt); (iii) suffered the appointment of a receiver to take possession of
all or substantially all of its assets; (iv) suffered the attachment or other judicial seizure of all or substantially all of its assets;
(v) admitted in writing it inability to pay its debts as they come due; or (vi) made an offer of settlement, extension or composition
to its creditors generally.

 

Section 6.6           
Casualty.

 

(a)           Lessor’s
Right to Restore. If the Premises are totally or partially damaged or destroyed by fire, earthquake or other casualty, Lessor
will have the right but not the obligation, to restore the Premises by repair or rebuilding. Lessor will provide Lessee a written
notice within thirty (30) says following the date of such damage stating whether Lessor has elected to terminate this Lease or to
repair the Premises. If Lessor fails to provide such timely notice, Lessee may, upon ten (10) days’ prior written notice,
terminate this Lease. If Lessor provides such timely notice and elects to repair or rebuild, and thereafter is able to commence such
restoration within ninety (90) days from the date of damage, and can demonstrate that the Premises can be restored within 180 days,
this Lease shall remain in full force and effect. If Lessor is unable to restore the Leased Premises within this time, or if Lessor
elects not to restore, then either party may terminate this Lease by giving the other written notice. Upon such election to
terminate, the rent under this Lease will be due and payable only through the date of damage. If this Lease is not terminated, the
rent due and payable under this Lease will be abated or reduced to the extent that the damage interferes with Lessee’s
reasonable use of the Premises until such portion of the Premises is restored.

 

    19 

     

    

 

(b)           Lessee’s Right to Terminate. Notwithstanding the provisions of Subsection (a), if the Premises are so damaged as to
materially and adversely affect Lessee’s ability to conduct its normal business operations, as reasonably determined by Lessee,
Lessee will have the right at its option to terminate the Lease upon written notice to Lessor given within thirty (30) days following
the date of such damage, and rent under this Lease will be due and payable only through the date that such notice is given.

 

(c)           No Obligation to Restore. If Lessor elects to repair and restore, Lessor will restore the Premises to substantially its
condition to that prior to the occurrence or damage, provided that Lessor will not be obligated to repair or restore any alterations,
additions, fixtures, equipment or improvements which have been installed by Lessee, whether or not Lessee has the right or obligation
to remove the same or is required to leave the same on the Premises as of the expiration or earlier termination of this Lease, unless
Lessee, in a manner satisfactory to Lessor, assures payment in full of all costs as may be incurred by Lessor in connection therewith.
If there be any such alterations, fixtures, additions equipment or improvements installed by Lessee and Lessee does not assure or agree
to assure payment of all cost of restoration or repair as aforesaid, Lessor will have the right to determine the manner in which the Premises
will be restored so as to be substantially as the Premises existed prior to the damage occurring of this Lease, as if such alterations,
additions, fixtures, equipment or improvements installed by Lessee had not then been made or installed.

 

(d)          No Liability for Loss or Interruption of Business. In no event will Lessor be responsible for any loss or interruption to
Lessee’s business caused by damage or destruction to the Premises or during the repair or reconstruction thereof regardless of the
cause of damage or destruction or the extent of insurance coverage. The parties agree that the rights and obligation of the parties in
the event of damage or destruction of the Premises will be governed by this Lease.

 

Section 6.7           
Eminent Domain.

 

This Lease will terminate
automatically if the entire Premises are acquired by eminent domain or sale in lieu of eminent domain. All compensation for the Premises
will be payable to Master Lessor, except that Lessee will have the right to make a claim to the public agency acquiring the property for
compensation for its Tenant Improvements and Additional Improvements, relocation expenses, and business losses, as allowed by law. If
only a portion of the Premises is acquired by eminent domain or sale in lieu of eminent domain, Lessee may terminate this Lease on thirty
(30) days prior written notice; provided that termination will be effective only after Lessee pays any rent, taxes, assessments, property
related fees, or other charges due and owing to the date of the termination. Any compensation which would otherwise be payable to Lessee
may be paid directly to any encumbrancer of Lessee’s leasehold interest to the extent of such encumbrance.

 

    20 

     

    

 

Section 6.8           
Remedies Cumulative.

 

Remedies provided under this
Article for any Event of Default are cumulative with any other remedy that may be available to either party at law or in equity. For greater
clarity, a termination resulting from future expansion (in compliance with Section 6.3), Force Majeure, casualty, or eminent domain will
be deemed a no-fault termination, and not an Event of Default, and remedies therefor will be limited as provided in this Article.

 

Section 6.9           
Lease Termination

 

At the expiration or early
termination of this Lease, Lessee shall surrender the Premises to Lessor in the condition required by this Lease. Prior to surrender:
(a) Lessee shall remove all Alterations and Tenant Improvements constructed by Lessee and designated by Lessor to be removed and shall
restore the Premises and the Building to the condition existing immediately prior to the installation of such Alterations and Tenant Improvements;
(b) Lessee shall remove all personal property and trade fixtures from the Premises and all of its signs from the Building; and (c) Lessee
shall repair all damage caused by the installation or removal of any such Alterations, Tenant Improvements, personal property, signage
or trade fixtures. Lessee shall deliver the Premises to Lessor in “clean and in good condition,” subject to reasonable wear
and tear (consistent with Lessee’s repair and maintenance obligations under this Lease) and damage by casualty that is not required
to be repaired by Lessee pursuant to this Lease. Clean and good condition, for the purposes of this Lease shall include the following:
the floor to be mopped clean, windows cleaned inside and out, broken, cracked, or missing windows repaired or replaced; all light fixtures
and bulbs in operating conditions; walls are clean and free of stains, holes or other markings on wall and floors as a result of business
operations are repaired; all doors are in good mechanical operating condition, carpets are cleaned; fencing is in good condition; and
water fixtures and valves are leak free and operable. Electrical outlets and breaker boxes shall have appropriate covers/lids. Lessee
shall be responsible for ensuring the building is surrendered to the Lessor in a state of condition that does not present a safety hazard.
Lessee has no obligation to remove or restore any improvements referenced on Exhibit D.

 

Article
7 MISCELLANEOUS PROVISIONS

 

Section 7.1           
Notice.

 

Unless otherwise provided
in this Lease, all notices required to be given under this Lease will be in writing and will be sent by (i) certified mail, postage prepaid,
return receipt requested, (ii) express delivery or overnight courier service with a delivery receipt, (iii) personal delivery with a delivery
receipt, or (iv) electronic mail with a copy delivered by one of the previous three methods, to the address of the parties shown as follows
(or as either party may designate in writing):

 

    21 

     

    

 

If to Master Lessor:                          Airport
Manager

Salinas Municipal
Airport

30 Mortensen Avenue

Salinas, CA 93905

 

With a copy to:

City Attorney

City of Salinas

200 Lincoln Avenue

Salinas, CA 93901

 

If to Lessor:                                      Delta Mike
Enterprises, LLC

David A. Teeters

820 Park Row #639

Salinas, CA 93901

 

If to Lessee:                                      Archer Aviation
Inc.

Attn: Matt Deal

1880 Embarcadero Rd

Palo Alto, CA, 94303

 

Notice will be deemed given
upon delivery if personally delivered or five (5) days following deposit in the mail, if so deposited. Other methods of notice, including
electronic mail, may be used to give notice if consented to in writing by the parties.

 

Section 7.2           
Venue and Applicable Law.

 

This Lease will be governed,
construed, and interpreted according to the laws of the State of California, and in any legal proceeding necessary to interpret or enforce
this Lease or any part of it, the parties agree to submit to the jurisdiction of, and venue in, the courts of the State of California
in the County of Monterey.

 

Section 7.3           
Time.

 

Time is of the essence with
respect to all obligations of the parties under this Lease.

 

Section 7.4           
Third Party Beneficiaries.

 

This Lease is not intended
to create, nor will it be in any way interpreted to create, any third party beneficiary rights, except as expressly and unequivocally
provided herein. For greater clarity, the Released and Indemnified Parties are intended beneficiaries of those provisions making reference
to the same.

 

Section 7.5           
Integration; Amendment.

 

This Lease contains the entire
understanding of the parties relating to the subject matter hereof, and supersedes other prior and contemporaneous oral and written agreements,
understandings, and representations between the parties. No amendment to this Lease will be binding unless agreed to in a writing executed
by both parties.

 

    22 

     

    

 

Section 7.6           
Waiver.

 

No waiver of any provision
of this Lease will constitute a continuing waiver of that provision or a waiver of any other provision. No waiver will be binding unless
executed in writing by the party making the waiver.

 

Section 7.7           
Interpretation.

 

(a)          Neutral Interpretation. This Lease includes the contributions of both parties, each of which has had the opportunity to
consult competent counsel, and the rule stated in Civil Code Section 1654 that an agreement be construed against its drafter will not
apply to this this Lease.

 

(b)          Severability. If any term or provision of this Lease is held by a court of jurisdiction to be invalid or unenforceable,
the remaining terms of the Lease will be valid and enforceable except to the extent that the original intent of the parties would be frustrated
thereby.

 

(c)          Headings. Headings contained in this Lease are for ease of reference only, and will not alter the meaning of any provision
hereof.

 

(d)          Gender and Number. In this Lease, the masculine includes the feminine and neuter, and vice versa, and the singular includes
the plural, and vice versa, as the context admits or requires.

 

(e)           Parties’ Intent. Any rule of construction notwithstanding, this Lease will be construed in the manner that best effectuates
its purposes, to the fullest extent permitted under law.

 

Section 7.8           
Attorneys’ Fees and Costs.

 

Attorneys’ fees and
costs will be available pursuant to Civil Code Section 1717 in any action between the parties arising out of this Lease. Attorney’s
fees for in-house City Attorney staff, if awarded, shall be calculated at the market rate for civil litigation attorneys in the County
of Monterey.

 

Section 7.9           
Heirs, Successors, and Assigns.

 

This Lease, subject to the
provisions as to assignment, transfer, and subleases, applies to bind the permitted representatives, heirs, executors, administrators,
executors, and assigns of both parties.

 

Section 7.10       
Conflicts of Interest.

 

To Lessee’s knowledge,
no one affiliated with it having a prohibited conflict of interest pursuant to Government Code Section 1090 or the Political Reform Act
(Government Code Section 87100, et seq.) has participated in the making of this Lease, and Lessee shall advise Lessor should it obtain
knowledge of facts giving rise to such a conflict.

 

    23 

     

    

 

Section 7.11       
Relationship Between the Parties.

 

The parties to this Lease
are independent contractors and no agency, joint venture, partnership, employee, co-employer, or similar relationship exists between them;
accordingly, no party has the authority to bind the other.

 

Section 7.12       
Brokers.

 

Each party represents that
it has not dealt with any broker, agent, or other intermediary who is or may be entitled to be paid a commission or finder’s fee
in connection with this Lease.

 

Section 7.13       
Multiple Originals.

 

This Lease may be executed
in counterparts, each of which will be deemed an original.

 

Section 7.14       
Signatures.

 

Each person executing this
Lease represents and warrants that he or she is fully authorized to bind his or her respective party hereto.

 

[Signatures on Following Page]

 

    24 

     

    

  

IN WITNESS WHEREOF, the parties
have executed this Lease effective as of the Effective Date.

 

	DELTA MIKE ENTERPRISES,
    LLC, a California Limited Liability Company	ARCHER AVIATION
    INC.

 

	 	 	 	By:	/s/ Adam Goldstein
	By:	/s/ David Teeters	 	 	 
	 	 	 	Name:	Adam Goldstein
	Name:  	David A. Teeters	 	Title:	Co-CEO
	Title:	President	 	Date:	02/08/2021
	Date:	 	 	 	 

 

    25 

     

    

 

CONSENT OF MASTER LESSOR

 

By signing below, the Master
Lessor consents to the terms and conditions of this Sublease Agreement.

 

CITY OF SALINAS,

a California charter city and
municipal corporation

 

	By:	/s/ Brett J. Godown	Date:	 

 

	Name:	Brett J. Godown, C.M.,
C.A.E.	 
	Title:	Airport Manager	 

  

     

     

    

  

EXHIBIT A

 

Legal Description of the Premises

 

(Intentionally Left Blank)

 

 

     

     

    

  

EXHIBIT B

 

Depiction of the Premises

 

 

  

    B-1 

     

    

  

EXHIBIT C

 

Permitted Uses of the Premises

 

		1.	Maintenance, repair, overhaul, modification, light manufacturing and associated services related to aircraft,
aircraft engines, and airframes; automatic flight systems; instruments, radio electronic equipment, propellers, and all other aircraft
components.

 

		2.	Specialized Aviation Service Operation (“SASO”) - a commercial aeronautical business that
is authorized to offer a single or limited service according to established Minimum Standards. Examples of a SASO include, but are not
limited to the following commercial aeronautical activities: flight training, aircraft maintenance, avionics maintenance and aircraft
storage.

 

		3.	Research and development of aircraft and aerospace vehicles and drones

 

		4.	Storage and service of equipment directly related to business operations.

 

		5.	Flight Training

 

		6.	Storage of aircraft.

 

		7.	Aircraft sales

 

    C-1

     

    

  

EXHIBIT D

 

Description of the Lessee Improvements

 

		·	In consideration for the Original Term and Renewal Term, Lessee agrees to a one-time payment to lessor
on March 1, 2021 of forty-five thousand and 00/100 $45,00000. This payment of $45,000.00 will be used solely for the replacement and ADA
compliance of exterior stairs on the southwest corner of the building, stairs inside on the west side of the building and an added door
to the main hangar doors on the North East side of the building. These repairs are required for Lessees ingress and egress to leased areas.
For consideration of these repairs lessor will discount first month’s rent by $3,000.00 and reimburse Lessee $45,000.00 in the form
rental abatement of $1,596.52 per month for 23 months starting February 1, 2021.

 

Lessor will construct the foregoing
improvements as soon as possible in a diligent, good and workmanlike manner and in compliance with all laws, regulations and codes.

 

Upon any termination of this
Lease that is not due solely to Lessee’s default, Lessor shall pay to Lessee the total amount of the foregoing rent abatement payments
(i.e., the $1,956.52 per month) that have not been applied as of the date of termination in payments of $1,596.52 per month until balance
has been repaid.

 

In no event shall Lessee offer
utilization of the premises prior to, and Lessee shall and hereby does indemnify, release, hold harmless, and agree to defend Released
and Indemnified Parties.

 

Lessee shall have the right
to terminate this lease with a 30-day notice if lessor cannot obtain permits for above work and or have work completed in a reasonable
timeline or remedy this issue.

 

    D-1

     

    

  

EXHIBIT E

 

Insurance Requirements

 

A.       Coverage
shall be at least as broad as:

 

1.       Commercial
General Liability (“CGL”): Insurance Services Office (“ISO”) Form CG 00 01 covering CGL on an occurrence basis,
including products and completed operations, property damage, bodily injury, and personal & advertising injury with limits no less
than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this
project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. Lessee shall maintain
fire legal liability insurance on the leased property with extended coverage and debris-cleanup provisions in an amount not less than
$1,000,000, and in any event that covers at least ninety percent (90%) of the actual cash value of all Improvements, Additional Improvements,
and betterments in or on the Premises. Products and completed operations coverage is not required provided that Lessee does not engage
in manufacturing or providing other services. Lessee is required to maintain employment practices coverage if it has or acquires any employees.

 

2.       Workers’
Compensation: Workers’ Compensation insurance, due to Lessee having employees, as required by the State of California, with Statutory
Limits, and Employer’s Practices Liability Insurance with limits of no less than $1,000,000 per incident for bodily injury or disease.

 

3.       Personal
Property: Property insurance against all risk of loss to any Lessee-owned or controlled property, including, without limitation, personal
property at full replacement cost with no coinsurance penalty provision and naming City of Salinas as a loss payee for the Improvements,
Additional Improvements, and betterments. Any fire legal liability coverage maintained shall also name Delta Mike Enterprises, LLC, a
California limited liability company (“Lessor”), Airmotive Specialties, Inc., a California corporation (“ASI”),
and the City of Salinas as additional insureds or as loss payees.

 

4.       Automobile
Liability: Insurance for any Lessee-owned or hired automobiles, and non-owned automobiles, with $1,000,000 each occurrence for bodily
injury and property damage. (This is required if Lessee is permitted to drive vehicles on any airport airside locations.)

 

5.       Hangar-Keepers
Liability: This is required if Lessee has any aircraft of others in its care, custody, and/or control (such as storing a friend’s
aircraft, managing training aircraft, managing a client’s aircraft, or etc.) in an amount of $1,000,000 for each aircraft for each
occurrence.

 

B.       Other
Insurance Provisions:

 

All the insurance policies
in Section A above are to contain, or be endorsed to contain, the following provisions:

 

(1)       Additional
Insured Endorsement — Except for the worker’s compensation policy, all such policies shall include (i) the City of
Salinas, its elected and appointed officials, officers, employees, representatives, volunteers, and agents (hereinafter collectively
the “City”), (ii) Lessor, and (iii) ASI, all as Additional Insureds via endorsement.

 

    E-1 

     

    

 

(2)       Waiver
of Subrogation Endorsement - Lessee hereby grants to Master Lessor, Lessor, and ASI a waiver of subrogation which any insurer may acquire
against Master Lessor, its Released and Indemnified Parties Lessor or ASI, from Lessee. Lessee agrees to obtain any endorsement that may
be necessary to affect this waiver of subrogation but this provision applies regardless of whether or not the Master Lessor, Lessor, or
ASI has received a waiver of subrogation endorsement from the insurer. The Workers’ Compensation policy shall be endorsed with a
waiver of subrogation in favor of the Master Lessor, Lessor, and ASI for all work performed by the Lessee, its employees, agents, and
subcontractors

 

(3)       Primary
and Non-contributing Coverage - All required insurance policies and all renewals thereof shall be primary and non-contributing; the required
insurance policy shall be primary over any other insurance, deductible, or self-insurance maintained by the City and non-contributory
with respect to the City.

 

(4)       Cancellation
- Required insurance policies shall not be cancelled or the coverage reduced until a thirty (30) day written notice of cancellation has
been served upon the Master Lessor except ten (10) days shall be allowed for non-payment of premium.

 

(5)       Broader
Coverage/Higher Limits - If the Lessee or Permit Holder maintains broader coverage and/or higher limits than the minimums shown above,
the Lessee or Permit Holder requires and shall be entitled to the broader coverage and/or higher limits maintained by the Lessee or Permit
Holder. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the
Master Lessor primarily and Lessor secondarily.

 

(6)       Acceptability
of Insurers - Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no
less than A-: VII, unless otherwise acceptable to the Master Lessor.

 

(7)       Verification
of Coverage — Lessee or Permit Holder shall furnish the Master Lessor, Lessor, and ASI with original Certificates of Insurance including
an additional insured endorsement and all required amendatory endorsements (or copies of the applicable policy language effecting coverage
required by this clause) and a copy of the Declarations and Endorsement Pages of the liability policies listing all policy endorsements
to Master Lessor, Lessor, and ASI before work begins. However, failure to obtain the required documents prior to the work beginning shall
not waive the Permit Holder’s obligation to provide them. The Master Lessor, Lessor, and ASI all reserve the right to require complete,
copies of all required insurance policies, including endorsements, required by these specifications, at anytime.

 

(8)       Special
Risk or Circumstances - Master Lessor reserves the right to modify these requirements, including limits, based on the nature of the risk,
prior experience, insurer, coverage, or other special circumstances.

 

    E-2

     

    

 

(9)       Self-Insured
Retentions - Self-insured retentions must be declared to and approved by the Master Lessor. At the option of the Master Lessor, the
Lessee shall provide coverage to reduce or eliminate such self-insured retentions as respects the Master Lessor, its officers,
officials,employees, and volunteers; or the Lessee shall provide evidence satisfactory to the Master Lessor guaranteeing payment of
losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to
provide, that the self-insured retention may be satisfied by either the named insured or Master Lessor of Salinas. All such
insurance shall be by policy or included by endorsement, waiver of subrogation rights in favor of the Master Lessor. Lessee and
Lessor hereby covenant and agree to the same, and each agrees to and shall be responsible hereunder.

 

(10)       Sublessees,
Contractors, and Subcontractors — Lessor and Lessee shall require all sublessees, contractors, and subcontractors who perform work
on the Premises to maintain general liability insurance in an amount of no less than $1 million combined single limit per occurrence which
complies with all of the provisions in this Insurance section above, including providing an additional insured endorsement in favor of
the Master Lessor, Lessor, and ASI, and Lessee shall provide Master Lessor, Lessor, and ASI with copies of such insurance certificates
and endorsements at the initiation of any sublease between Lessee and a sublessee as well as upon request by the Master Lessor, Lessor,
or ASI.

 

Furthermore, before commencing
or allowing commencement of any work of improvement, Lessee shall ensure that all of its employees and/or all employees of any sublessees,
contractors and subcontractors, are covered by workers’ compensation insurance with waivers of subrogation in place via policy or
endorsement in favor of Master Lessor, Lessor and ASI.

 

    E-3

     

    

  

EXHIBIT F

 

Rental Schedule

 

	Year	 	 	Monthly Rent	 	 	Annual Rent	 
	1	 	 	$	5,382.90	 	 	$	64,594.80	 
	2	 	 	$	5,557.84	 	 	$	66,694.13	 
	3	 	 	$	5,738.47	 	 	$	68,861.69	 
	4	 	 	$	5,924.97	 	 	$	71,099.70	 

 

    F-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}]]