Document:

LEASE

 

between

 

TEACHERS INSURANCE AND ANNUITY ASSOCIATION
OF AMERICA,

for the benefit of its separate Real
Estate Account

Landlord

 

and

 

VRINGO INC.,

Tenant

 

Premises:

 

A portion of the 15th floor at

780 Third Avenue, New York, New York

 

	Dated: July 10, 2012
	 
	

 

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TABLE OF CONTENTS

 

	Article	 	Caption	 	Page
	 	 	 	 	 
	1	 	Demise; Premises	 	4
	2	 	Term	 	4
	3	 	Rent; Rent Abatement	 	4
	4	 	Delivery of Possession of the Premises	 	5
	5	 	Use	 	6
	6	 	Floor Load; Telephone System	 	6
	7	 	Rent Adjustments	 	6
	8	 	Insurance	 	11
	9	 	Compliance with Laws	 	13
	10	 	Improvements; Tenant's Property	 	14
	11	 	Repairs	 	16
	12	 	Heating, Ventilation and Air Conditioning	 	17
	13	 	Electricity	 	18
	14	 	Cleaning and Other Services	 	19
	15	 	Damage to or Destruction of the Premises	 	20
	16	 	Eminent Domain	 	21
	17	 	Conditions of Limitation	 	22
	18	 	Re-Entry by Landlord; Remedies	 	23
	19	 	Curing Tenant's Defaults; Fees and Expenses	 	25
	20	 	Non-Liability and Indemnification	 	25
	21	 	Surrender	 	26
	22	 	Assignment, Mortgaging and Subletting	 	26
	23	 	Subordination and Attornment	 	29
	24	 	Access, Changes In Building Facilities	 	30
	25	 	Inability to Perform	 	31
	26	 	Legal Proceedings; Waiver of Counterclaims and Jury Trial	 	31
	27	 	No Other Waiver	 	32
	28	 	Arbitration	 	32
	29	 	Quiet Enjoyment	 	33
	30	 	Rules and Regulations	 	33
	31	 	Building Name	 	33
	32	 	Shoring; No Dedication	 	34
	33	 	Notice of Accidents	 	34
	34	 	Vaults	 	34
	35	 	Brokerage	 	34
	36	 	Security Deposit	 	35
	37	 	Window Cleaning	 	36
	38	 	Consents	 	36
	39	 	Notices	 	36
	40	 	Definitions; Construction of Terms	 	37
	41	 	Estoppel Certificate; Recording	 	40
	42	 	Intentionally Deleted	 	40
	43	 	Parties Bound	 	40
	44	 	Miscellaneous	 	41
	45	 	Anti –Terrorism Requirements	 	42
	 	 	Testimonium, Signature and Seals	 	 
	 	 	Exhibit A — Description of Land	 	A-1
	 	 	Exhibit B — Floor Plan	 	B-1
	 	 	Exhibit C – Intentionally Deleted	 	C-1
	 	 	Exhibit D — Cleaning Specifications	 	D-1
	 	 	Exhibit E — Rules and Regulations	 	E-1
	 	 	Exhibit F — Tenant Estoppel Certificate and Agreement	 	F-1
	 	 	Exhibit G — Tenant Acceptance Letter	 	G-1
	 	 	Exhibit H—  Form of Letter of Credit	 	H-1

 

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This Table of Contents
is included only as a matter of convenience and reference and shall not be deemed or construed in any way to define or limit the
scope of the following lease or the intent of any provision thereof.

 

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LEASE, dated July 10, 2012, between
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, for the benefit of its separate Real Estate Account, a New York
corporation, having an office at c/o TIAA-CREF, Global Real Estate, 730 Third Avenue, 4th Floor, New York, New
York 10017 ("Landlord"), and VRINGO, INC., a Delaware corporation, having an office at 44 West 28th
Street, Suite 1414, New York, New York ("Tenant")

 

WITNESSETH:

 

Landlord and Tenant hereby covenant and
agree as follows:

 

ARTICLE 1

 

Demise; Premises

 

Section 1.01 
Landlord hereby leases to Tenant, and Tenant hereby hires from Landlord the premises hereinafter described ("Premises")
in the building ("Building") located on the land ("Land") known by the street address 780 Third Avenue, New
York, New York, in the Borough of Manhattan, City and State of New York, as more particularly described in Exhibit A annexed hereto
and made a part hereof, for the Term hereinafter stated, for the rents hereinafter reserved, and upon and subject to the terms
of this Lease.

 

Section 1.02 
The Premises consist of a portion of the fifteenth (15th) floor in the Building, substantially as shown on the floor
plan annexed hereto as Exhibit B and made a part hereof, together with all fixtures and improvements which, at the commencement
of the Term or at any time during the Term, are attached thereto or installed therein and together with all appurtenances to the
Premises, including the right to use, in common with others, the Building Equipment, subject to the terms of this Lease.

 

Section 1.03
The definitions of certain terms used in this Lease are set forth in Section 40.01 and in various other Sections of this Lease.

 

ARTICLE 2

 

Term

 

Section 2.01
The Premises are leased for a term ("Term") which shall commence on the later of (i) the date of execution and delivery
of the Lease by both Landlord and Tenant and (ii) two (2) days following the date of notice of Landlord to Tenant of the completion
of Landlord’s Work set forth in Section 4.01("Commencement Date"), and shall end on the day immediately preceding
the three (3) year and one (1) month anniversary of the Commencement Date ("Expiration Date") unless the Term shall sooner
terminate pursuant to any of the terms of this Lease or pursuant to law.

 

Section 2.02 
When the Commencement Date has been determined by Landlord as set forth in Section 2.01, Landlord and Tenant shall, upon the request
of either of them, execute a statement prepared by Landlord setting forth such date. Neither Landlord's failure to request nor
Tenant's failure to execute such agreement shall affect Landlord's proper determination of the Commencement Date.

 

ARTICLE 3

 

Rent

 

Section 3.01 
A. Tenant shall pay to Landlord, without notice or demand, in lawful money of the United States of America, by check drawn on a
bank or trust company which is a member of the New York Clearinghouse Association, at the office of the Landlord or at such other
place as Landlord may designate, the following:

 

(a) annual fixed rent (such annual fixed
rent being referred to herein as "Fixed Rent") of $136,976.00 ($11,414.67 per month) payable in equal monthly installments,
in advance, on the first (lst) day of each and every calendar month during the Term; and

 

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(b) additional rent
("Additional Rent") consisting of all other sums of money as shall become due from and be payable by Tenant hereunder
(for default in the payment of which Landlord shall have the same remedies as for a default in the payment of Fixed Rent).

 

If Tenant shall fail to pay when due any
installment of Fixed Rent or any payment of Additional Rent for a period of 10 days after such installment or payment shall have
become due, Tenant shall pay interest thereon at the Interest Rate, from the date when such installment or payment shall have become
due to the date of the payment thereof, and such interest shall be deemed Additional Rent.

 

B. There shall be no
abatement of, deduction from, counter-claim or setoff against, Fixed Rent and Additional Rent except as otherwise specifically
provided in this Lease.

 

Section 3.02
Notwithstanding the provisions of Section 3.01, Tenant shall pay $11,414.67 on account of Fixed Rent upon the execution of this
Lease, which shall be credited on a per diem basis toward the payment of the installment(s) of Fixed Rent first due and payable
hereunder. If by reason of any of the provisions of this Lease, the Commencement Date for all or any part of the Premises shall
be other than the first day of a calendar month, Fixed Rent for such month shall be pro-rated on a per diem basis.

 

Section 3.03 Tenant covenants
to (a) pay the Fixed Rent and Additional Rent when due and (b) observe and perform, and not to suffer or permit any violation
of, Tenant's obligations under this Lease.

 

Section 3.04
Notwithstanding anything contained in Article 3 of this Lease to the contrary, but provided Tenant is not then in breach or default
under any of the terms, covenants or conditions in this Lease on Tenant’s part to observe or perform beyond notice and the
expiration of any applicable cure period, Tenant shall not be obligated to pay the first $11,414.67 of Fixed Rent becoming payable
by Tenant to Landlord under this Lease and the installment of Fixed Rent paid by Tenant to Landlord pursuant to Section 3.02 of
this Lease shall be applied to the second monthly installment(s) of Fixed Rent that Tenant is obligated to pay to Landlord under
this Lease.

 

ARTICLE 4

 

Delivery of Possession of the Premises

 

Section 4.01 Tenant
acknowledges that it has made a full and complete inspection of the Premises and is thoroughly familiar with the condition thereof,
and Tenant agrees to accept possession of the Premises on the Commencement Date in its then "as-is" broom clean condition.
Tenant, at Tenant’s sole cost and expense, shall perform all work in connection with preparing the Premises for its occupancy
in accordance with the provisions of Article 10 of the Lease. Notwithstanding the foregoing, Landlord agrees that it shall, prior
to the Commencement Date, remove the wall of the executive corner office (“ Landlord’s Work”).

 

Section 4.02 
The taking of occupancy of the whole or any part of the Premises by Tenant shall be conclusive evidence, as against Tenant, that
Tenant accepts possession of the same and that the Premises and the Building were in good and satisfactory condition at the time
such occupancy was so taken and that the Premises were substantially as shown on Exhibit B.

 

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ARTICLE 5

 

Use

 

Section 5.01
Tenant shall use and occupy the Premises for general, executive and administrative offices, and for no other purpose. Tenant shall
not use or occupy or suffer or permit the use or occupancy of any part of the Premises in any manner which in Landlord's reasonable
judgment would adversely affect (i) the proper and economical rendition of any service required to be furnished to any tenant,
(ii) the use or enjoyment of any part of the Building by any other tenant, or (iii) the appearance, character or reputation of
the Building as a first-class office building with retail stores. Tenant shall not at any time use or occupy or suffer or permit
anyone to use or occupy the Premises, or do or permit anything to be done in the Premises in violation of the Certificate of Occupancy
for the Building. Notwithstanding anything contained herein to the contrary, a breach of such covenant shall be deemed a material
and substantial default by Tenant under this lease, for which Landlord shall have all remedies available to it under this lease
and under the law, including, without limitation, the right to enforce such covenant by injunctive or other appropriate equitable
relief. Without limiting the generality of the foregoing, it is expressly understood that no portion of the demised premises shall
be used as, by or for (a) retail operations of any bank, trust company, savings bank, industrial bank, savings and loan association,
credit union or personal loan association or other form of entity, (b) a public stenographer or typist, (c) a barber shop, beauty
shop or beauty parlor, (d) a telephone or telegraph agency, (e) a telephone, court reporting, stenographic or secretarial service,
(f) a messenger service, (g) a travel or tourist agency, (h) an employment agency, (i) a restaurant or bar, (j) a commercial document
reproduction or offset printing service, (k) a public vending machine operation, (l) a retail, wholesale or discount shop for the
sale of books, magazines, audio or video tapes, CD ROM, DVD ROM or other devices for the recording or transmitting of audio or
visual signals, images, music or speech, electronic equipment and accessories or any other merchandise, (m) a retail service shop,
(n) a labor union, (o) a school or classroom, (p) a governmental or quasi-governmental bureau, department or agency, including
an autonomous governmental corporation, embassy or consular office of any country or other quasi-autonomous or sovereign organization,
whether or not subject to the Foreign Sovereign Immunities Act of 1976, as from time to time amended, or any successor statute,
(q) an advertising agency, (r) a firm whose principal business is real estate brokerage, (s) a company engaged in the business
of renting office or desk space, (t) any person, organization, association, corporation, company, partnership entity or other agency
immune from service or suit in the courts of the State of New York or the assets of which may be exempt from execution by Landlord
in any action for damages, (u) a factory of any kind, (v) retail sales, (w) any use to which material increased security costs
or insurance premiums payable by Landlord are attributed, (x) a payroll office or check cashing operation, (y) a clinic or (z)
any illegal purpose.

 

Section 5.02
If any governmental license or permit, other than a certificate of occupancy, shall be required for the proper and lawful conduct
of Tenant's business in the Premises or any part thereof, then Tenant, at its expense, shall duly procure and thereafter maintain
such license or permit and submit the same to Landlord for inspection. Tenant shall at all times comply with the terms and conditions
of each such license and permit, but in no event shall failure to procure or maintain such license or permit by Tenant affect Tenant's
obligations hereunder.

 

ARTICLE 6

 

Floor Load; Telephone System

 

Section 6.01
Tenant shall not place a load upon any floor that exceeds either the floor load per square foot that such floor was designed to
carry or which is allowed by any Legal Requirement. Subject to the preceding sentence, if Tenant wishes to place any safes or vaults
in the Premises it may do so at its own expense after giving notice to Landlord, but Landlord reserves the right to prescribe their
weight and position. Business machines and mechanical equipment in the Premises shall be placed and maintained by Tenant at Tenant's
sole expense, in such manner as shall be sufficient, in Landlord's reasonable judgment, to prevent vibration, noise, annoyance
and inconvenience to Landlord and other tenants.

 

Section 6.02
Tenant may install, maintain, or operate in the Premises business machines customarily used in offices such as computers, printers,
copy machines, fax machines, scanners, telephone systems, local area networks, data processing, teletype and other business machines
customarily used in offices; provided, however, Tenant shall comply with all of the terms of this Lease that may be applicable
to such installation, maintenance or operation. Tenant may, with the consent of Landlord, which shall not be unreasonably withheld,
install, maintain, or operate in the Premises business machines not customarily used in offices; provided, however, Tenant shall
comply with all of the terms of this Lease that may be applicable to such installation, maintenance or operation and shall give
Landlord prior notice of the installation thereof.

 

ARTICLE 7

 

Rent Adjustments

 

Section 7.01
For the purpose of this Lease:

 

A. The term "Premises Area" shall
be deemed to mean 2,446 square feet.

 

B. The term "Building Area" shall
be deemed to mean 470,000 square feet.

 

C. The term "Tenant's Proportionate
Share" shall be deemed to mean 0.52%.

 

D. "Landlord's Statement" shall
mean an instrument containing a computation of Additional Rent due pursuant to the provisions of this Article 7 furnished by Landlord
to Tenant.

 

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E. The term "Base Tax Factor"
shall mean the Taxes for the 2012/2013 Tax Year.

 

F. The term "Taxes" shall mean
(i) all real estate taxes, assessments (special or otherwise), sewer and water rents, rates and charges and any other governmental
levies, impositions or charges of a similar or dissimilar nature, whether general, special, ordinary, extraordinary, foreseen or
unforeseen, which may be assessed, levied or imposed upon all or any part of the Real Property, whether or not the same constitute
one or more tax lots, and (ii) any expenses (including reasonable attorney’s fees and disbursements and experts' and other
witness' fees) incurred by Landlord in contesting any of the foregoing or the assessed valuation of all or any part of the Real
Property; but "Taxes" shall not include any interest or penalties incurred by Landlord as a result of Landlord's late
payment of Taxes, except for interest payable in connection with the installment payments of assessments pursuant to the next sentence.
If by law, any assessment may be divided and paid in annual installments, then, provided the same is not prohibited under the terms
of the Superior Lease or the Superior Mortgage, for the purposes of this Article (x) such assessment shall be deemed to have been
so divided and to be payable in the maximum number of annual installments permitted by law and (y) there shall be deemed included
in Taxes for each Tax Year the annual installment of such assessment becoming payable during such Tax Year, together with interest
payable during such Tax Year on such annual installment and on all installments thereafter becoming due as provided by law, all
as if such assessment had been so divided. If at any time after the date hereof the methods of taxation prevailing at the date
hereof shall be altered so that in lieu of or as an addition to or as a substitute for the whole or any part of the taxes, assessments,
rents, rates, charges, levies or impositions now assessed, levied or imposed upon all or any part of the Real Property, there shall
be assessed, levied or imposed (a) a tax, assessment, levy, imposition or charge based on the income or rents received therefrom
whether or not wholly or partially as a capital levy or otherwise, or (b) a tax, assessment, levy, imposition or charge measured
by or based in whole or in part upon all or any part of the Real Property and imposed upon Landlord, or (c) a license fee measured
by the rents, or (d) any other tax, assessment, levy, imposition, charge or license fee however described or imposed, then all
such taxes, assessments, levies, impositions, charges or license fees or the part thereof so measured or based shall be deemed
to be Taxes; provided that any tax, assessment, levy, imposition or charge imposed on income from the Real Property shall be calculated
as if the Real Property is the only asset of the Landlord.

 

G. The term "Tax Year" shall
mean the 12 month period commencing on the first (1st) day of July of each year, or such other period of 12 months as may be duly
adopted as the fiscal year for real estate tax purposes in The City of New York.

 

H. The term "Escalation Year"
shall mean each calendar year which shall include any part of the Term.

 

I. The term "Base Operating Factor"
shall mean Landlord's actual Operating Expenses for the 2012 calendar year.

 

J. The term "Operating Expenses"
shall mean all costs and expenses (and taxes thereon, if any) paid or incurred by Landlord or on behalf of Landlord with respect
to the operation, cleaning, repair, safety, replacement, management, security and maintenance of the Real Property, Building Equipment,
sidewalks, curbs, plazas, and other areas adjacent to the Building, and with respect to the services provided tenants, including,
without limitation: (i) salaries, wages and bonuses paid to, and the cost of any hospitalization, medical, surgical, union and
general welfare benefits (including group life insurance), any pension, retirement or life insurance plans and other benefit or
similar expense relating to, employees of Landlord engaged in the operation, cleaning, repair, safety, management, security or
maintenance of the Real Property and the Building Equipment or in providing services to tenants; (ii) social security, unemployment
and other payroll taxes, the cost of providing disability and worker's compensation coverage imposed by any Legal Requirements,
union contract or otherwise with respect to said employees; (iii) the cost of electricity, gas, steam, water, heat, ventilation,
air conditioning and other fuel and utilities; (iv) the cost of casualty, rent, liability, fidelity, plate glass and any other
insurance; (v) the cost of repairs, maintenance and painting; (vi) expenditures for capital improvements and capital equipment
which under generally applied real estate practice are expensed or regarded as deferred expenses and capital expenditures which
are made by reason of Legal Requirements or Insurance Requirements, in each case such expenditures to be included in Operating
Expenses for the Escalation Year in which such costs are incurred and every subsequent Escalation Year, on a straight-line basis,
to the extent that such items are amortized over an appropriate period, but not more than 10 years, with interest calculated at
an annual rate equal to 1% above the prime rate at the time of Landlord's having made said expenditure; (vii) the cost or rental
of all building and cleaning supplies, tools, materials and equipment; (viii) the cost of uniforms, work clothes and dry cleaning;
(ix) window cleaning, concierge, guard, watchman or other security personnel, service or system, if any; (x) management fees or
if no managing agent is employed by Landlord, a sum in lieu thereof which is not in excess of then prevailing rates for management
fees payable in the Borough of Manhattan for first-class Third Avenue office buildings; (xi) charges of independent contractors
performing work included within this definition of Operating Expenses; (xii) telephone and stationery; (xiii) legal, accounting
and other professional fees and disbursements incurred in connection with the operation and management of the Real Property; (xiv)
association fees and dues; (xv) decorations; (xvi) depreciation of hand tools and other movable equipment used in the operation,
cleaning, repair, safety, management, security or maintenance of the Building; and (xvii) exterior and interior landscaping.

 

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Provided, however, that the foregoing costs
and expenses shall exclude or have deducted from them, as the case be: (a) executives' salaries above the grade of building manager;(b)
expenditures for capital improvements or capital equipment, other than those referred to above and in the next succeeding paragraph;
(c) amounts received by Landlord through proceeds of insurance to the extent they are compensation for sums previously included
in Operating Expenses (d) cost of repairs or replacements incurred by reason of fire or other casualty or condemnation to the extent
Landlord is compensated therefor, (e) advertising and promotional expenditures; (f) costs incurred in performing work or furnishing
services for any tenant (including Tenant), whether at such tenant's or Landlord's expense, to the extent that such work or service
is in excess of any work or service that Landlord is obligated to furnish to Tenant at Landlord's expense; (g) depreciation except
as provided above; (h) brokerage commissions; (i) taxes; and (j) refinancing costs and mortgage interest and amortization payments.

 

If Landlord shall purchase any item of
capital equipment or make any capital expenditure which has the effect of reducing the expenses which would otherwise be included
in Operating Expenses, then the costs of such capital equipment or capital expenditure are to be included in Operating Expenses
for the Escalation Year in which the costs are incurred and every subsequent Escalation Year, on a straight-line basis, to the
extent that such items are amortized over such period of time as Landlord reasonably estimates such savings or reductions in Operating
Expenses will equal Landlord's costs for such capital equipment or capital expenditure, with interest calculated at an annual rate
of 1% above the prime rate at the time of Landlord's having made said expenditure. If Landlord shall lease any items of capital
equipment designed to result in savings or reductions in expenses which would otherwise be included in Operating Expenses, then
the rentals and other costs paid with respect to such leasing shall be included in Operating Expenses for the Escalation Years
in which incurred.

 

If during all or part of any Escalation
Year, Landlord shall not furnish any particular item(s) of work or service (which would otherwise constitute an Operating Expense
hereunder) to portions of the Building due to the fact (i) such portions are not occupied or leased, (ii) such item(s) of work
or service is not required or desired by the tenant of such portion, (iii) such tenant is itself obtaining and providing such item
of work or service or (iv) any other reason, then, for the purposes of computing Operating Expenses, the amount of such item(s)
for such period shall be deemed to be increased by an amount equal to the additional costs and expenses which would reasonably
have been incurred during such period by Landlord if it had at its own expense furnished such item(s) of work or service to such
portion of the Building or to such tenant.

 

Section 7.02
A. Tenant shall pay as Additional Rent for each and every Tax Year all or a portion of which shall be within the Term (including
the Tax Year in effect on the Commencement Date) an amount ("Tenant's Tax Payment") equal to Tenant's Proportionate Share
of the amount by which the Taxes for such Tax Year are greater than the Base Tax Factor. Tenant's Tax Payment shall be payable
by Tenant to Landlord within ten (10) days after receipt of a Landlord's Statement regardless of whether such Landlord's Statement
is received prior to, on or after the first ( 1st) day of such Tax Year. If there shall be any increase in Taxes for any Tax Year,
whether during or after such Tax Year, or if there shall be any decrease in the Taxes for any Tax Year during such Tax Year, Landlord
may furnish a revised Landlord's Statement for such Tax Year, and Tenant's Tax Payment for such Tax Year shall be adjusted and,
(a) within ten ( 10) days after Tenant's receipt of such revised Landlord's Statement, Tenant shall (with respect to any increase
in Taxes for such Tax Year) pay such increase in Tenant's Tax Payment to Landlord, or (b) (with respect to any decrease in Taxes
for such Tax Year), Landlord shall credit such decrease in Tenant's Tax Payment against the next installment of Additional Rent
payable by Tenant pursuant to Section 7.02B below. If during the Term, Taxes are required to be paid (either to the appropriate
taxing authorities or as tax escrow payments, to the Superior Lessor or the Superior Mortgagee), in full or in monthly, quarterly
or other installments on any other date or dates than as presently required, then Tenant's Tax Payments shall be correspondingly
accelerated or revised so that said Tenant's Tax Payments are due at least 30 days prior to the date payments are due to the taxing
authorities or the Superior Lessor or the Superior Mortgagee. The benefit of any discount for any early payment or prepayment of
Taxes and of any tax exemption or abatement relating to all or any part of the Real Property shall accrue solely to the benefit
of Landlord and Taxes shall be computed without subtracting such discount or taking into account any such exemption or abatement.

 

 B. (1) At any time,
and from time to time, during the Term, Landlord may give to Tenant a Landlord's Statement setting forth Tenant's Projected Share
of Taxes (as hereinafter defined). Commencing on the first day of the first full calendar month next succeeding the date on which
Landlord gives Tenant such Landlord's Statement with respect to Tenant's Projected Share of Taxes and continuing thereafter on
the first day of each and every calendar month of the Term, Tenant shall pay to Landlord, as Additional Rent for the Tax Year in
which such Additional Rent payment is due, Tenant's Projected Share of Taxes. "Tenant's Projected Share of Taxes" shall
mean Landlord's estimate of Tenant's Tax Payment for the Tax Year next succeeding the Tax Year in which Tenant's Projected Share
of Taxes is payable by Tenant, divided by twelve (12).

 

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(2) Upon each date
that a Tenant's Tax Payment (or an installment thereof) shall be due from Tenant pursuant to the terms of Section 7.02A hereof,
Landlord shall apply the aggregate of the installments of Tenant's Projected Share of Taxes theretofore paid to Landlord (but not
previously applied pursuant to this Section 7.02B) against the Tax Payment (or installment thereof) then due from Tenant. If such
aggregate amount is insufficient to discharge such Tax Payment (or installment thereof), Landlord shall so notify Tenant in the
Landlord's Statement served upon Tenant pursuant to Section 7.02A, and the amount of Tenant's payment obligation with respect to
such Tax Payment (or installment thereof) pursuant to Section 7.02A, shall equal the amount of such insufficiency. If, however,
such aggregate amount shall be greater than the Tax Payment (or installment thereof), Landlord, at Landlord's option shall either
(x) pay the amount of such excess directly to Tenant, or (y) credit the amount of such excess against the next installment(s) of
Tenant's Projected Share of Taxes due hereunder.

 

(3) Notwithstanding
anything contained in Section 7.02(B)(2) above to the contrary, (a) if the first Landlord's Statement with respect to Tenant's
Projected Share of Taxes is given to Tenant after the Commencement Date, then in addition to the first payment of Tenant's Projected
Share of Taxes payable by Tenant hereunder, Tenant shall pay on the date that such first payment of Tenant's Projected Share of
Taxes is due, as Additional Rent for the Tax Year in which such first payment is due, an amount equal to such first payment of
Tenant's Projected Share of Taxes, multiplied by the number of full calendar months of the Term immediately prior to the date such
first payment is due, and (b) if any Landlord's Statement with respect to Tenant's Projected Share of Taxes (after said first Landlord's
Statement) is given to Tenant after the first day of any Tax Year, then in addition to the payment of Tenant's Projected Share
of Taxes payable by Tenant after the rendition of such Landlord's Statement, Tenant shall pay on the date that such payment of
Tenant's Projected Share of Taxes is due, as Additional Rent for the Tax Year in which such payment is due, an amount equal to
(a) such payment of Tenant's Projected Share of Taxes, multiplied by the number of full calendar months of such Tax Year preceding
the date that such payment of Tenant's Projected Share of Taxes is due, less (b) the aggregate amount of Tenant's Projected Share
of Taxes (if any) previously paid by Tenant during such period.

 

C. If the real estate
tax fiscal year of the City of New York shall be changed at any time after the date hereof, any Taxes for such fiscal year, a part
of which is included within a particular Tax Year and a part of which is not so included, shall be apportioned on the basis of
the number of days in such fiscal year included in the particular Tax Year for the purpose of making the computations under this
Section 7.02.

 

D. Only Landlord shall be eligible
to institute tax reduction or other proceedings to reduce the assessed valuation of the Real Property. If Landlord shall receive
a refund of Taxes for any Tax Year, Landlord shall either pay to Tenant, or, at Landlord's election, credit against subsequent
payments under this Section 7.02 or Section 7.03, an amount equal to Tenant's Proportionate Share of the refund, but which amount
shall not exceed Tenant's Tax Payment paid for such Tax Year. Nothing herein shall obligate Landlord to file any application or
institute any proceeding seeking a reduction in Taxes or assessed valuation.

 

E. Tenant's Tax Payment and any
credits with respect thereto as provided in this Section 7.02 shall be made as provided in this Section 7.02 regardless of the
fact that Tenant may be exempt, in whole or in part, from the payment of any taxes by reason of Tenant's diplomatic or other tax
exempt status or for any other reason whatsoever.

 

F. Tenant shall pay
to Landlord upon demand as Additional Rent any occupancy tax or rent tax now in effect or hereafter enacted, if payable by Landlord
in the first instance or hereafter required to be paid by Landlord.

 

G. If the Commencement Date or
the Expiration Date shall occur on a date other than July 1 or June 30, respectively, any Additional Rent under this Section 7.02
for the Tax Year in which such Commencement Date or Expiration Date shall occur shall be apportioned in that percentage which the
number of days in the period from the Commencement Date to June 30 or from July 1 to the Expiration Date, as the case may be, both
inclusive, shall bear to the total number of days in such Tax Year. In the event of a termination of this Lease, any Additional
Rent under this Section 7.02 shall be paid or adjusted within 30 days after submission of Landlord's Statement. In no event shall
Fixed Rent ever be reduced by operation of this Section 7.02 and the rights and obligations of Landlord and Tenant under the provisions
of this Section 7.02 with respect to any Additional Rent shall survive the termination of this Lease.

 

H. Each Landlord's
Statement furnished by Landlord with respect to Tenant's Tax Payment shall be accompanied by a copy of the real estate tax bill
for the Tax Year referred to therein, but Landlord shall have no obligation to deliver more than one such copy of the real estate
tax bill in respect of any Tax Year.

 

Section 7.03A.
Tenant shall pay as Additional Rent for each Escalation Year an amount ("Tenant's Operating Payment"), calculated as
follows:

 

In the case of each
Escalation Year a sum equal to Tenant's Proportionate Share of the amount by which Operating Expenses for such Escalation Year
exceed the Base Operating Factor.

 

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B. Landlord may furnish to Tenant,
with respect to each Escalation Year, a written statement setting forth Landlord's estimate of Tenant's Operating Payment for such
Escalation Year. Tenant shall pay to Landlord on the first day of each month during such Escalation Year an amount equal to one-twelfth
of Landlord's estimate of Tenant's Operating Payment for such Escalation Year. If, however, Landlord shall furnish any such estimate
for an Escalation Year subsequent to the commencement thereof, then (a) until the first day of the month following the month in
which such estimate is furnished to Tenant, Tenant shall pay to Landlord on the first day of each month an amount equal to the
monthly sum payable by Tenant to Landlord under this Section 7.03 in respect of the last month of the preceding Escalation Year;
(b) promptly after such estimate is furnished to Tenant or together therewith, Landlord shall give notice to Tenant stating whether
the installments of Tenant's Operating Payment previously made for such Escalation Year were greater or less than the installments
of Tenant' s Operating Payment to be made for such Escalation Year in accordance with such estimate, and (i) if there shall be
a deficiency, Tenant shall pay the amount thereof within 10 days after demand therefor, or (ii) if there shall have been an overpayment,
Landlord shall either refund to Tenant the amount thereof or, at Landlord's election, credit the amount thereof against subsequent
payments under this Section 7.03 or Section 7.02; and (c) on the first day of the month following the month in which such estimate
is furnished to Tenant, and monthly thereafter throughout the remainder of such Escalation Year, Tenant shall pay to Landlord an
amount equal to one-twelfth of Tenant's Operating Payment shown on such estimate. Landlord may at any time or from time to time
(but not more than twice with respect to any Escalation Year) furnish to Tenant a revised statement of Landlord's estimate of Tenant's
Operating Payment for such Escalation Year, and in such case, Tenant's Operating Payment for such Escalation Year shall be adjusted
and paid or refunded, as the case may be, substantially in the same manner as provided in the preceding sentence.

 

C. After the end of each Escalation
Year Landlord shall furnish to Tenant a Landlord's Statement for such Escalation Year. Each such year-end Landlord's Statement
for any Escalation Year shall be accompanied by a computation of operating expenses for the Building prepared by an independent
certified public accountant or independent managing agent designated by Landlord from which Landlord shall make the computation
of Operating Expenses hereunder. In making computations of operating expenses, the certified public accountant or managing agent
may rely on Landlord's estimates and allocations whenever said estimates and allocations are needed for this Article. If the Landlord's
Statement shall show that the sums paid by Tenant under Section 7.03C exceeded Tenant's Operating Payment required to be paid by
Tenant for such Escalation Year, Landlord shall either refund to Tenant the amount of such excess or, at Landlord's election, credit
the amount of such excess against subsequent payments under this Section 7.03 or Section 7.02; and if the Landlord's Statement
for such Escalation Year shall show that the sums so paid by Tenant were less than Tenant's Operating Payment paid by Tenant for
such Escalation Year, Tenant shall pay the amount of such deficiency within 10 days after demand therefor.

 

D. If the Commencement Date or
the Expiration Date shall occur on a date other than January 1 or December 31, respectively, any Additional Rent under this Section
7.03 for the Escalation Year in which such Commencement Date or Expiration Date shall occur shall be apportioned in that percentage
which the number of days in the period from the Commencement Date to December 31 or from January 1 to the Expiration Date, as the
case may be, both inclusive, shall bear to the total number of days in such Escalation Year. In the event of a termination of this
Lease, any Additional Rent under this Article shall be paid or adjusted within 30 days after submission of a Landlord's Statement.
In no event shall Fixed Rent ever be reduced by operation of this Section 7.03B and the rights and obligations of Landlord and
Tenant under the provisions of this Article with respect to any Additional Rent shall survive the Expiration Date or sooner termination
of this Lease.

 

Section 7.04 A.
Landlord's failure to render Landlord's Statements with respect to any Tax Year or Escalation Year shall not prejudice Landlord's
right to thereafter render a Landlord's Statement with respect thereto or with respect to any subsequent Tax Year or Escalation
Year, nor shall the rendering of a Landlord's Statement prejudice Landlord's right to thereafter render a corrected Landlord's
Statement for that Tax Year or Escalation Year, as the case may be, provided that the corrected Landlord's Statement for that
Tax Year or Escalation Year is rendered within twelve (12) months of the original Landlord's Statement. Nothing herein contained
shall restrict Landlord from issuing a Landlord's Statement at any time there is an increase in Taxes, or Operating Expenses during
any Tax Year or Escalation Year or any time thereafter.

 

B. Each Landlord's Statement shall
be conclusive and binding upon Tenant unless (a) within 90 days after receipt of such Landlord's Statement Tenant shall notify
Landlord that it disputes the correctness of Landlord's Statement, specifying the particular respects in which Landlord's Statement
is claimed to be incorrect and (b) if such dispute shall not be resolved within 90 days after the giving of such Landlord's Statement,
Tenant shall, within 30 days after the expiration of such 90-day period, submit the dispute to arbitration pursuant to Article
28. Pending the determination of such dispute, Tenant shall pay Additional Rent in accordance with the applicable Landlord's Statement,
without prejudice to Tenant's position. If such dispute is ultimately determined in Tenant's favor, Landlord shall promptly after
such determination, upon demand, pay to Tenant any amount so overpaid by Tenant.

 

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ARTICLE 8

 

Insurance

 

Section 8.01
A. Tenant at all times during the Lease Term shall, at its own expense, keep in full force and effect (A) commercial general
liability insurance providing coverage against bodily injury and disease, including death resulting therefrom and property damage
to a combined single limit of $1,000,000 to one or more than one person as the result of any one accident or occurrence, which
shall include provision for contractual liability coverage insuring Tenant for the performance of its indemnity obligations set
forth in this Article 8 and in Article 20 of this Lease, with an Excess Limits (Umbrella) Policy in the amount of $3,000,000, (B) worker’s
compensation insurance to the statutory limit, if any, and employer’s liability insurance to the limit of $500,000 per occurrence,
and (C) All Risk or Causes of Loss - Special Form property insurance, including fire and extended coverage, sprinkler
leakage (including earthquake, sprinkler leakage), vandalism, malicious mischief, wind and/or hurricane coverage, covering full
replacement value of all of Tenant’s personal property, trade fixtures and improvements in the Premises. Landlord and its
designated property management firm shall be named an additional insured on each of said policies (excluding the worker’s
compensation policy) and said policies shall be issued by an insurance company or companies authorized to do business in the State
and which have policyholder ratings not lower than “A-” and financial ratings not lower than “VII” in Best’s
Insurance Guide (latest edition in effect as of the Effective Date and subsequently in effect as of the date of renewal of the
required policies). EACH OF SAID POLICIES SHALL ALSO INCLUDE A WAIVER OF SUBROGATION PROVISION OR ENDORSEMENT IN FAVOR OF LANDLORD,
AND AN ENDORSEMENT PROVIDING THAT LANDLORD SHALL RECEIVE THIRTY (30) DAYS PRIOR WRITTEN NOTICE OF ANY CANCELLATION OF, NONRENEWAL
OF, REDUCTION OF COVERAGE OR MATERIAL CHANGE IN COVERAGE ON SAID POLICIES. Tenant hereby waives its right of recovery against any
Landlord Party (as defined in Article 20) of any amounts paid by Tenant or on Tenant’s behalf to satisfy applicable worker’s
compensation laws. The policies or duly executed certificates showing the material terms for the same, together with satisfactory
evidence of the payment of the premiums therefor, shall be deposited with Landlord on the date Tenant first occupies the Premises
and upon renewals of such policies not less than fifteen (15) days prior to the expiration of the term of such coverage. If
certificates are supplied rather than the policies themselves, Tenant shall allow Landlord, at all reasonable times, to inspect
the policies of insurance required herein.

 

B.       It is expressly
understood and agreed that the coverages required represent Landlord’s minimum requirements and such are not to be construed
to void or limit Tenant’s obligations contained in this Lease, including without limitation Tenant’s indemnity obligations
hereunder. Neither shall (A) the insolvency, bankruptcy or failure of any insurance company carrying Tenant, (B) the
failure of any insurance company to pay claims occurring nor (C) any exclusion from or insufficiency of coverage be held to
affect, negate or waive any of Tenant’s indemnity obligations under this Article 8 or any other provision of this Lease.
With respect to insurance coverages, except worker’s compensation, maintained hereunder by Tenant and insurance coverages
separately obtained by Landlord, all insurance coverages afforded by policies of insurance maintained by Tenant shall be primary
insurance as such coverages apply to Landlord, and such insurance coverages separately maintained by Landlord shall be excess,
and Tenant shall have its insurance policies so endorsed. The amount of liability insurance under insurance policies maintained
by Tenant shall not be reduced by the existence of insurance coverage under policies separately maintained by Landlord. Tenant
shall be solely responsible for any premiums, assessments, penalties, deductible assumptions, retentions, audits, retrospective
adjustments or any other kind of payment due under its policies. Tenant shall increase the amounts of insurance or the insurance
coverages as Landlord may reasonably request from time to time, but not in excess of the requirements of prudent landlords or lenders
for similar tenants occupying similar premises in the New York metropolitan area.

 

C.       Tenant’s occupancy
of the Premises without delivering the certificates of insurance shall not constitute a waiver of Tenant’s obligations to
provide the required coverages. If Tenant provides to Landlord a certificate that does not evidence the coverages required herein,
or that is faulty in any respect, such shall not constitute a waiver of Tenant’s obligations to provide the proper insurance

 

D.       Throughout the Lease
Term, Landlord agrees to maintain (i) fire and extended coverage insurance, and, at Landlord’s option, earthquake damage
coverage, terrorism coverage, wind and hurricane coverage, and such additional property insurance coverage as Landlord deems appropriate,
on the insurable portions of Building in an amount not less than the fair replacement value thereof, subject to reasonable deductibles
(ii) boiler and machinery insurance amounts and with deductibles that would be considered standard for similar class office
building in the metropolitan area in which the Premises is located, and (iii) commercial general liability insurance with
a combined single limit coverage of at least $1,000,000.00 per occurrence. All such insurance shall be obtained from insurers Landlord
reasonably believes to be financially responsible in light of the risks being insured. The premiums for any such insurance shall
be a part of Operating Expenses.

 

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E.       If, by reason of
any failure of Tenant to comply with the provisions of this Lease, the rate of fire, boiler, sprinkler, water damage or other insurance
(with extended coverage) on the Building or on the property and equipment of Landlord or any other tenant or subtenant in the Building
shall be higher than it otherwise would be, Tenant shall reimburse Landlord and the other tenants in the Building for that part
of the fire, boiler, sprinkler, water damage or other insurance premiums thereafter paid by Landlord which shall have been charged
because of such failure by Tenant and Tenant shall make the reimbursement on the first day of the month following such payment
by Landlord. If Tenant shall fail to make such reimbursement when billed for the same, Landlord may treat the same as a default
in the payment of rental and shall also be entitled to interest on the unpaid sum at the then Default Rate until such sum shall
be fully paid to Landlord. In any action or proceeding wherein Landlord and Tenant are parties, a schedule or “make up”
of rates for the Building or Premises issued by the New York Fire Insurance Exchange or other body making fire insurance rates
for the Premises, shall be conclusive evidence of the facts therein stated and of the several items and charges in the fire insurance
rate then applicable to said Building or Premises.

 

Section
8.02   Mutual Waivers of Recovery. Landlord, Tenant, and all parties claiming under them, each mutually release
and discharge each other from responsibility for that portion of any loss or damage paid or reimbursed by an insurer of Landlord
or Tenant under any fire, extended coverage or other property insurance policy maintained by Tenant with respect to its Premises
or by Landlord with respect to the Building (or which would have been paid had the insurance required to be maintained hereunder
been in full force and effect), no matter how caused, including negligence, and each waives any right of recovery from the other
including, but not limited to, claims for contribution or indemnity, which might otherwise exist on account thereof. Any fire,
extended coverage or property insurance policy maintained by Tenant with respect to the Premises, or Landlord with respect to the
Building, shall contain, in the case of Tenant’s policies, a waiver of subrogation provision or endorsement in favor of Landlord,
and in the case of Landlord’s policies, a waiver of subrogation provision or endorsement in favor of Tenant, or, in the event
that such insurers cannot or shall not include or attach such waiver of subrogation provision or endorsement, Tenant and Landlord
shall obtain the approval and consent of their respective insurers, in writing, to the terms of this Lease. Tenant agrees to indemnify,
protect, defend and hold harmless each and all of the Landlord Parties from and against any claim, suit or cause of action asserted
or brought by Tenant’s insurers for, on behalf of, or in the name of Tenant, including, but not limited to, claims for contribution,
indemnity or subrogation, brought in contravention of this paragraph. The mutual releases, discharges and waivers contained in
this provision shall apply EVEN IF THE LOSS OR DAMAGE TO WHICH THIS PROVISION APPLIES IS CAUSED SOLELY OR IN PART BY THE NEGLIGENCE
OF LANDLORD OR TENANT.

 

Section
8.03   Business Interruption. Landlord shall not be responsible for, and Tenant releases and discharges
Landlord from, and Tenant further waives any right of recovery from Landlord for, any loss for or from business interruption or
loss of use of the Premises suffered by Tenant in connection with Tenant’s use or occupancy of the Premises, EVEN IF SUCH
LOSS IS CAUSED SOLELY OR IN PART BY THE NEGLIGENCE OF LANDLORD.

 

Section
8.04  Adjustment of Claims. Tenant shall cooperate with Landlord and Landlord’s insurers in the adjustment
of any insurance claim pertaining to the Building or Landlord’s use thereof.

 

Section
8.05   Increase in Landlord’s Insurance Costs. Tenant agrees to pay to Landlord any increase in premiums
for Landlord’s insurance policies primarily and directly resulting from Tenant’s use or occupancy of the Premises.

 

Section
8.06   Failure to Maintain Insurance. Any failure of Tenant to obtain and maintain the insurance policies and
coverages required hereunder or failure by Tenant to meet any of the insurance requirements of this Lease shall constitute an event
of default hereunder, and such failure shall entitle Landlord to pursue, exercise or obtain any of the remedies provided for in
Article 17, and Tenant shall be solely responsible for any loss suffered by Landlord as a result of such failure. In the event
of failure by Tenant to maintain the insurance policies and coverages required by this Lease or to meet any of the insurance requirements
of this Lease, Landlord, at its option, and without relieving Tenant of its obligations hereunder, may obtain said insurance policies
and coverages or perform any other insurance obligation of Tenant, but all costs and expenses incurred by Landlord in obtaining
such insurance or performing Tenant’s insurance obligations shall be reimbursed by Tenant to Landlord, together with interest
on same from the date any such cost or expense was paid by Landlord until reimbursed by Tenant, at the rate of interest provided
to be paid on judgments, by the law of the jurisdiction to which the interpretation of this Lease is subject.

 

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ARTICLE 9

 

Compliance with Laws/Environmental Compliance

 

Section 9.01 A.
Tenant shall give prompt notice to Landlord of any notice it receives of the violation of any law or requirement of public authority,
and Tenant, at its expense, shall comply with all laws and requirements of public authorities which shall, with respect to the
Premises or the use and occupation thereof, or the abatement of any nuisance, impose any violation, order or duty on Landlord
or Tenant, arising from (i) Tenant's use of the Premises, (ii) the manner of conduct of Tenant's business or operation of its
installations, equipment or other property therein, (iii) any cause or condition created by or at the instance of Tenant, other
than by Landlord's performance of any work for or on behalf of Tenant, or (iv) breach of any of Tenant's obligations hereunder.
However, Tenant shall not be so required to make any structural or other substantial change in the Premises unless the requirement
arises from a cause or condition referred to in clause (ii), (iii) or (iv) above. Furthermore, Tenant need not comply with any
such law or requirement of public authority so long as Tenant shall be contesting the validity thereof, or the applicability thereof
to the Premises, in accordance with Section 9.02. Landlord, at its expense, shall comply with all other such laws and requirements
of public authorities as shall affect the Premises, but may similarly contest the same subject to conditions reciprocal to Subsections
(a), (b) and (d) of Section 9.02.

 

B. If in any Escalation
Year, all or any portion of which shall be within the Term, Landlord shall incur any expenditure in respect of the Real Property
for capital improvements or capital equipment by reason of Legal Requirements or Insurance Requirements or which under generally
accepted real estate practice would be expensed or regarded as deferred expenses, Tenant shall reimburse Landlord, on demand, for
Tenant's Proportionate Share of the annual amortization (reasonably determined by Landlord on a straight-line basis over an appropriate
period not to exceed 10 years, with interest calculated at an annual rate of 1% above the prime rate at the time of Landlord's
having made such expenditures) of such expenditures; provided, however, that in the event Landlord receives an exemption or abatement
of Taxes by reason of any such capital improvement or capital equipment (other than an exemption, abatement or credit which is
the result of the application of Section 38 of the Internal Revenue Code, as amended, or any similar provision of Federal or New
York law), the cost of such capital improvement or capital equipment shall be reduced by the amount of such exemption or abatement.

 

Section 9.02 Tenant may,
at its expense (and if necessary, in the name of but without expense to Landlord) contest, by appropriate proceedings prosecuted
diligently and in good faith, the validity, or applicability to the Premises, of any law or requirement of public authority, and
Landlord shall cooperate with Tenant in such proceedings, provided that:

 

(a)      Landlord
shall not be subject to criminal penalty or to prosecution for a crime nor shall the Premises or any part thereof be subject to
being condemned or vacated, by reason of non-compliance or otherwise by reason of such contest;

 

(b)      Tenant
shall defend, indemnify and hold harmless Landlord against all liability, loss or damage which Landlord shall suffer by reason
of such non-compliance or contest, including reasonable attorney's fees and other expenses reasonably incurred by Landlord;

 

(c)      Such
non-compliance or contest shall not constitute or result in any violation of any superior lease or superior mortgage, or if such
superior lease and/or superior mortgage shall permit such non-compliance or contest on condition of such taking of action or furnishing
of security by Landlord, such action shall be taken and such security shall be furnished at the expense of Tenant; and

 

(d)      Tenant
shall keep Landlord advised as to the status of such proceedings. Without limiting the application of Subsection (a) above thereto,
Landlord shall be deemed subject to prosecution for a crime within the meaning of said Subsection, if Landlord, or any officer
of Landlord individually, is charged with a crime of any kind or degree whatever, whether by service of a summons or otherwise,
unless such charge is withdrawn before Landlord or such officer (as the case may be) is required to plead or answer thereto.

 

    	13

    	 

    

 

Section
9.03   A. Tenant shall comply with all federal, state and local environmental protection
and regulatory laws applicable to the Premises.

 

Tenant
shall not use, generate, manufacture, store or dispose of any hazardous substance on, under or about the Premises or the Building
nor transport any hazardous substance thereto. Tenant shall immediately advise the Landlord, in writing of any and all enforcement,
clean-up, remediation, removal or other governmental or regulatory actions instituted, completed or threatened pursuant to any
applicable laws relating to any hazardous substances; and all claims made or threatened by any person (including a governmental
authority) against the Premises, Tenant or Landlord relating to any damage, injury, costs, remedial action or cost recovery compensation
arising out of or due to the existence of any hazardous substance in or about the Premises or the Building. 

 

   B.
Tenant shall defend, indemnify and hold Landlord harmless from and against all actions, causes of action, claims, lawsuits, administrative
proceedings, hearings, judgments, awards, fines, penalties, costs (including legal, engineers', experts', investigatory and consulting
fees), damages, remediation activities and clean-up costs, liens, and all other liabilities incurred by Landlord whenever incurred,
arising out of any Tenant's act or failure to act directly resulting in (i) the existence or presence (or alleged existence or
presence) on or about the Building of any hazardous substance or the release of any hazardous substance into the environment; (ii)
any personal injury or property damage resulting from any hazardous substance in or about the Building; (iii) the violation of
any federal, state or municipal environmental protection or regulatory law; or (iv) the commencement or prosecution by any governmental
authority or private person or entity of any judicial or administrative procedure arising out of any claims under any federal,
state or municipal environmental protection or regulatory law or common law cause of action in which Landlord is named a party
or in which it may intervene. The obligations of Tenant under this paragraph B shall survive the expiration or earlier termination
of the term hereof.

 

“Hazardous
substance” means any hazardous substance as defined in the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, 42 U.S.C. §§ 9601 et seq., as amended by the Superfund Amendments and Reauthorization Act of 1986; hazardous
waste as defined in the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §§ 6901 et seq., as any of the foregoing
may be amended or superseded; oil; petroleum product, derivative, compound or mixture; mineral, including asbestos; chemical; gas;
medical waste; polychlorinated biphenyls (pcb's); methane; radon; radioactive material; volatile hydrocarbons; or other material,
whether naturally occurring, man-made or the by-product of any process, which is toxic, harmful or hazardous or acutely hazardous
to the environment or public health or safety; or any other substance the existence of which on or at any property would be the
basis for a claim for damages, clean-up costs or remediation costs, fine, penalty or lien under any federal, state or municipal
environmental protection or regulatory law or applicable common law.

 

ARTICLE 10

 

Improvements; Tenant's Property

 

Section 10.01
Upon and subject to the terms of this Article, Tenant, at any time and from time to time during the Term, at its sole cost and
expense, may make Improvements in and to the Premises, excluding structural changes, provided:

 

(a) The Improvements
will not result in a violation of or require a change in any certificate of occupancy applicable to the Premises or to the Building;

 

(b) The outside appearance,
usefulness or rentability of the Building or any part thereof shall not be affected in any way;

 

(c) No part of the Building
outside of the Premises shall be physically affected;

 

(d) The proper or economical
functioning of the Building Equipment shall not be adversely affected;

 

(e) In performing the
work involved in making such Improvements, Tenant shall be bound by and observe all of the terms of this Article;

 

(f) Tenant shall not
use the elevators during business hours on business days for haulage or removal of materials or debris;

 

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(g) Before proceeding
with any Improvements, Tenant shall submit to Landlord plans and specifications and all changes and revisions thereto, for the
work to be done for Landlord's approval and Tenant shall, upon demand of Landlord, pay to Landlord the reasonable professional
fees incurred by Landlord for the review of such plans and specifications and all changes and revisions thereto by its architect,
engineer and other consultants. Landlord may as a condition of its approval require Tenant to make revisions in and to the plans
and specifications and to post a bond or other security reasonably satisfactory to Landlord to insure the completion of such change;

 

(h) Tenant shall not
be permitted to install and make part of the Premises any materials, fixtures or articles which are subject to liens, conditional
sales contracts, chattel mortgages or security interests (as such term is defined in the Uniform Commercial Code as in effect in
New York at the time of the making of the Improvement);

 

(i) No Improvements estimated
to cost more than $50,000 (as estimated by Landlord's architect or licensed professional engineer or general contractor) shall
be undertaken (i) except under the supervision of a licensed architect or licensed professional engineer reasonably satisfactory
to Landlord, (ii) except after at least 30 days' prior notice to Landlord and (iii) prior to Tenant delivering to Landlord either
(y) a performance bond and a labor and materials payment bond (issued by a surety company satisfactory to Landlord and licensed
to do business in New York State) or (z) such other security as shall be satisfactory to Landlord;

 

(j) The sprinkler system
design is not thereby modified, altered or changed;

 

(k) Tenant shall not
(i) attach or affix any screws or fasteners to the exterior curtainwall of the Building or (ii) install, without the written consent
of Landlord, any materials that will come in contact with the exterior curtainwall of the Building; and

 

(l) Upon termination
of this Lease, Tenant shall, on Landlord's request, restore the Premises to their condition prior to the making of any Improvements
by Tenant, reasonable wear and tear and damage insured by casualty excepted.

 

Section 10.02 
All Improvements shall at all times comply with all Legal Requirements and Insurance Requirements and all Rules and Regulations
(including any Landlord may adopt with respect to the making of Improvements) and shall be made at such times and in such manner
as Landlord may from time to time reasonably designate. Tenant, at its expense, shall (a) obtain all necessary municipal and other
governmental permits, authorizations, approvals and certificates for the commencement and prosecution of such improvements and
for final approval thereof upon completion, (b) deliver copies thereof to Landlord and (c) cause all Improvements to be performed
in a good and first-class workmanlike manner, using materials and equipment at least equal in quality to the original installations
of the Building or the then standards for the Building established by Landlord. Improvements shall be promptly commenced and completed
and shall be performed in such manner so as not to interfere with the occupancy of any other tenant nor delay or impose any additional
expense upon Landlord in the construction, maintenance, cleaning, repair, safety, management, security or operation of the Building
or the Building Equipment; and if any such additional expense shall be incurred by Landlord as a result of Tenant's performance
of any Improvements, Tenant shall pay such additional expense as Additional Rent upon demand. Tenant shall furnish Landlord with
satisfactory evidence that the insurance required during the performance of the Improvements pursuant to Article 8 is in effect
at or before the commencement of the Improvements and, on request, at reasonable intervals thereafter. No Improvements shall involve
the removal of any fixtures, equipment or other property in the Premises which are not Tenant's Property without Landlord's prior
consent and unless they shall be promptly replaced, at Tenant's expense and free of superior title, liens, security interests and
claims, with fixtures, equipment or other property, as the case may be, of like utility and at least equal value, unless Landlord
shall otherwise consent. In addition to the foregoing, all Improvements shall be performed in compliance with all applicable provisions
of this Lease, all building regulations and with all applicable laws, ordinances, directions, rules and regulations of governmental
authorities having jurisdiction, including, without limitation, the Americans with Disabilities Act of 1990, as amended, New York
City Local Law No. 5/73 and New York City Local Law No. 58/87 and similar present or future laws, and regulations issued pursuant
thereto, and also New York City Local Law No. 76 and similar present or future laws, and regulations issued pursuant thereto, on
abatement, storage, transportation and disposal of asbestos, which work, if required, shall be effected at Tenant's sole cost and
expense, by contractors and consultants approved by Landlord and in strict compliance with the aforesaid rules and regulations
and with Landlord's rules and regulations thereon. Within thirty (30) days after final completion of any Improvement, Tenant shall
deliver to the Landlord final record drawings of the Improvement including, as may be pertinent to the work performed, a reflected
ceiling plan, mechanical and electrical drawings, partition plan and any other drawings which may be required to indicate accurately
the layout and systems of the Premises. Tenant shall require its architect to load and maintain such record plans on a CADD system.

 

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Section 10.03
Tenant, at its expense, shall promptly procure the cancellation or discharge of all notices of violation arising from or otherwise
connected with Improvements which shall be issued by any public authority having or asserting jurisdiction.

 

Section 10.04 
Tenant shall promptly pay the cost of all Improvements. Tenant hereby indemnifies Landlord against liability for any and all mechanic's
and other liens filed in connection with any Improvements or repairs. Tenant, at its expense, shall procure the discharge of all
such liens within 10 days after the filing of any such lien against the Premises or the Real Property. If Tenant shall fail to
cause any such lien to be discharged within the period aforesaid, then, in addition to any other right or remedy, Landlord may,
but shall not be obligated to, discharge the same either by paying the amount claimed to be due or by deposit or bonding proceedings,
and in any such event Landlord shall be entitled, if it elects, to compel the prosecution of an action for the foreclosure of such
lien and to pay the amount of the judgment in favor of the lienor with interest, costs and allowances. Any amount so paid by Landlord,
and all costs and expenses incurred by Landlord in connection therewith, shall constitute Additional Rent and shall be paid by
Tenant to Landlord on demand.

 

Section 10.05 
Only contractors reasonably approved by Landlord shall be permitted to act as a contractor for any work to be performed in accordance
with this Article.

 

Section 10.06
Tenant agrees that it will not at any time prior to or during the Term, either directly or indirectly, employ or permit the employment
of any contractor, mechanic or laborer, or permit any materials in the Premises, if the use of such contractor, mechanic or laborer
or such materials would, in Landlord's reasonable opinion, create any difficulty, strike or jurisdictional dispute with other contractors,
mechanics or laborers engaged by Tenant or Landlord or others, or would in any way disturb the construction, maintenance, cleaning,
repair, management, security or operation of the Building or any part thereof. In the event of any interference or conflict, Tenant,
upon demand of Landlord, shall cause all contractors, mechanics or laborers, or all materials causing such interference, difficulty
or conflict, to leave or be removed from the Building immediately.

 

Section 10.07
All fixtures, equipment, improvements and appurtenances attached to, or built into, the Premises at the commencement of or during
the Term (collectively "Fixtures"), whether or not at the expense of Tenant, shall be surrendered to Landlord upon the
termination of this Lease except as otherwise expressly provided in this Lease; provided, however, that any Fixtures attached to,
or built into, the Premises at the expense of Tenant shall be and remain the property of Tenant during the Term and any Fixtures
attached to, or built into, the Premises at the expense of Landlord shall be and remain the property of Landlord during the Term.
The Fixtures shall include all electrical, plumbing, heating and sprinkling equipment, fixtures, outlets, venetian blinds, partitions,
railways, gates, doors, vaults, paneling, molding, shelving, radiator enclosures, cork, rubber, linoleum and composition floors,
ventilating, silencing, air conditioning and cooling equipment, and all fixtures, equipment, improvements and appurtenances of
a similar nature or purpose whether or not attached to or built into the Premises.

 

Section 10.08
No approval of plans or specifications by Landlord or consent by Landlord allowing Tenant to make Improvements in the Premises
shall in any way be deemed to be an agreement by Landlord that the contemplated Improvements comply with any Legal Requirements
or Insurance Requirements or the certificate of occupancy for the Building nor shall it be deemed to be a waiver by Landlord of
the compliance by Tenant with any of the terms of this Lease. Notice is hereby given that neither Landlord, Landlord's agents,
the Superior Lessor, the Superior Mortgagee nor the Fee Mortgagee shall be liable for any labor or materials furnished or to be
furnished to Tenant upon credit, and that no mechanic's or other lien for such labor or materials shall attach to or affect any
estate or interest of Landlord or the Superior Lessor, Superior Mortgagee or Fee Mortgagee in and to the Premises or the Real Property.

 

ARTICLE 11

 

Repairs

 

Section 11.01
Tenant, at its sole cost and expense, shall take good care of the Premises and Building Equipment therein and Tenant's Property
and the Fixtures. Tenant, at its sole cost and expense, shall make and be responsible for all repairs, interior or exterior, structural
and otherwise, ordinary or extraordinary as and when needed to preserve the Premises and the Building Equipment therein and Tenant's
Property and the Fixtures in good working order and condition, the need for which arises primarily and directly out of (a) the
installation, use, existence or operation of Improvements, Tenant's Property or Fixtures, (b) the moving of Tenant's Property or
Fixtures in or out of the Building or the Premises, (c) the acts, omissions, negligence or misuse of Tenant or any of its subtenants
or any of its or their employees, agents, contractors, Licensees or invitees or their use or occupancy or manner of use or occupancy
of the Premises otherwise than in accordance with the terms of this Lease (except fire or other casualty caused by Tenant's negligence,
if the fire or other casualty insurance policies insuring Landlord are not invalidated and the rights of Landlord are not adversely
affected by this provision) or (d) pursuant to the provisions of Section 9.01A, provided, however, that Landlord, at its option,
may make any of the foregoing repairs (other than repairs to Tenant's Property) and in such event, Tenant shall pay to Landlord
the cost thereof, as Additional Rent, on demand. In no event shall Tenant be required to make, be responsible for or pay for any
repairs which are required as a result of the acts, omissions, negligence or willful misconduct of Landlord, its agents, other
tenants, contractors or employees. Tenant, at its sole cost and expense, shall promptly replace scratched, damaged or broken doors
and glass in and about the Premises and shall be responsible for all repairs and maintenance of wall and floor coverings in the
Premises. Tenant shall promptly make, at its sole cost and expense, all repairs in or to the Premises for which it is primarily
and directly responsible. If the Premises shall include any space on any ground, street, mezzanine or basement floor in the Building,
Tenant, at its sole cost and expense, shall make all necessary repairs to all windows and other glass in, on or about such space
and put, keep and maintain all portions of the Premises and any sidewalks, curbs, entranceways, passageways and vaults adjoining
and/or appurtenant to the Premises in clean and orderly condition, free of dirt, rubbish, snow, ice and other accumulations and
unlawful obstructions. All repairs made by or on behalf of Tenant or any person claiming through or under Tenant shall be made
and performed in conformity with the provisions of Article 10, and shall be at least equal in quality and class to the original
work or installation or the then standards for the Building established by Landlord.

 

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Section 11.02 
Landlord shall operate the Building as a first-class office building with retail stores. Landlord shall, at its expense, make or
cause to be made all necessary repairs to keep the Building in good order and repair excluding, however, (a) repairs of Tenant's
Property or Improvements not occasioned by Landlord's acts, omissions, negligence or willful misconduct and (b) repairs which Tenant
is obligated to make pursuant to Section 11.01 and the other terms of this Lease. Landlord shall, at Tenant's sole cost and expense,
perform all maintenance and make all necessary repairs to the air conditioning equipment and any security systems or devices which
may be installed in the Premises by Landlord, Tenant or others, except the building standard air conditioning system which (except
as otherwise provided in Section 11.01) shall be maintained and repaired at Landlord's sole cost and expense. Nothing contained
in this Section shall require Landlord to paint the Premises. No liability of Landlord to Tenant shall, however, accrue under this
Section unless and until Tenant has given notice to Landlord of the specific repair required to be made, or of the failure properly
to furnish any service.

 

Section 11.03
Tenant recognizes and acknowledges that the operation of the Building Equipment may cause vibration, noise, heat or cold which
may be transmitted throughout the Premises. Landlord shall have no obligation to endeavor to reduce such vibration, noise, heat
or cold beyond what is prevalent in the Building.

 

ARTICLE 12

 

Heating, Ventilation and Air Conditioning

 

Section 12.01
Landlord, at Landlord's expense (except as may be set forth in Article 13), shall furnish and distribute to the Premises, through
the Building heating, ventilating and air conditioning systems, heat, ventilating and air conditioning, as may be required for
reasonably comfortable occupancy of the Premises from 8:00 A.M. to 6:00 P.M. ("business hours") on business days. Business
days as used in this Lease shall mean all days except Saturdays, Sundays and the days observed by the Federal or the New York
State or City governments as legal holidays and such other days as shall be designated as holidays by the applicable operating
engineers union or building service employees union contract. Landlord and Tenant further agree to operate the heating, ventilating
and air conditioning equipment in accordance with their design criteria unless a recognized energy or water conservation program,
guidelines, regulations or recommendations promulgated by any Federal, State, City or other governmental or quasi-governmental
bureau, board, department, agency, office, commission or other subdivision thereof or the American Society of Heating, Refrigeration
and Air-Conditioning Engineers, Inc. or any successor thereto or other organization serving a similar function shall provide for
any reduction in operations below said criteria in which case such equipment shall be operated so as to provide reduced service
in accordance with such program, guidelines, regulations or recommendations.

 

Section 12.02
If Tenant shall require heating, ventilating or air conditioning service at any time other than during business hours on business
days ("after hours"), Landlord shall furnish the same upon advance notice from Tenant given prior to 2:00 P.M. on the
last business day to occur prior to such non-business day, and Tenant shall pay Landlord's then established charges therefor as
Additional Rent on demand.

 

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Section 12.03
Tenant acknowledges that the Building has windows capable of being opened. However, Tenant covenants that no one shall open said
windows, nor shall Tenant permit the opening of said windows at any time by anyone for any reason, except in full compliance with
the provisions of Section 37.01 of this Lease. As a result of the foregoing, Tenant acknowledges that the Premises may become uninhabitable
during hours or days when Landlord is not required to furnish heat, ventilation or air conditioning pursuant to this Article 12.
Any use or occupancy of the Premises during such hours or days when Landlord is not so required to furnish heating, ventilating
or air conditioning shall be at the sole risk, responsibility and hazard of Tenant. Landlord shall have no liability to Tenant
with respect to such condition of the Premises. In addition, Landlord shall not be responsible if the normal operation of the Building
heating or ventilating system or the air conditioning system serving the Premises shall fail to provide such service in accordance
with the requirements of this Lease in any portions of the Premises (a) which shall have an electrical load in excess of 3-1/2
watts per square foot of usable area for all purposes (including lighting and power), or which shall have a human occupancy factor
in excess of one person per 100 square feet of usable area, or (b) because of any rearrangement of partitioning or other improvements.
Tenant shall cooperate fully with Landlord at all times and abide by all regulations and requirements which Landlord may reasonably
prescribe for the proper functioning and protection of the heating, ventilating and air conditioning systems.

  

ARTICLE 13

 

Electricity

 

Section 13.01  Landlord has
installed in the Building and the Premises such electrical risers, feeders and wiring as shall be necessary to permit Tenant to
receive electrical energy for (a) Tenant's reasonable use of normal office equipment and such lighting, electrical appliances and
other machines and equipment as Landlord may reasonably permit to be installed in the Premises and (b) the operation of the heating,
ventilating and air conditioning system serving the Premises. Landlord has installed, at Landlord's expense, a meter for the purpose
of measuring electrical consumption on the fifteenth (15th) floor of the Building ("Tenant's Floor"). Landlord
shall maintain, service, repair and, if necessary, replace such meter. Tenant, upon demand by Landlord, shall pay to Landlord,
as Additional Rent, an amount equal to 25.92% of the costs incurred by Landlord in connection with such maintenance, service, repair
and replacement. Following the Commencement Date, Landlord shall have the right to cause an electrical engineer or a utility consultant
selected by Landlord to make a survey of Tenant's connected power load and the connected power load of that portion of the rentable
area of the Tenant's Floor not included within the Premises. Landlord, at Landlord's option, shall have the right, at any time
and from time to time during the Term, to cause similar surveys to be made. The term "Tenant's Share" shall mean 25.92%
or that percentage equal to Tenant's percentage of the aggregate of the connected power load for the entire rentable area of the
Tenant's Floor as determined from time to time pursuant hereto, plus 5% of Tenant’s Share for Landlord administrative and
overhead charges. The findings of Landlord's engineer or consultant shall be binding on Landlord and Tenant, subject to adjustment
as hereinafter provided. Promptly after receipt by Landlord of a bill from the public utility company furnishing electrical energy
to the Tenant's Floor, Landlord shall furnish to Tenant a copy thereof together with a request for payment to Landlord by Tenant
of Tenant's Share of such bill. Tenant shall promptly pay to Landlord, as Additional Rent, Tenant's Share of such bill. In the
event Tenant shall dispute any findings of the engineer or consultant designated by Landlord, Tenant may, within thirty (30) days
of receiving notice of such findings, designate by notice to Landlord an independent electrical engineer or utility consultant
to make, at Tenant's sole cost and expense, another determination of Tenant's connected power load. If the engineer or consultant
selected by Tenant shall determine that Tenant's connected power load is less than as determined by Landlord's engineer or consultant
and the two are unable to adjust such difference within twenty (20) days after the determination made by Tenant's engineer or consultant
is delivered to Landlord, the dispute shall be resolved by arbitration in accordance with Article 28. Pending a final determination
pursuant to such arbitration, however, Tenant shall pay Landlord for such electrical energy based on the determination of Landlord's
engineer or consultant' and, if it is determined that Tenant has overpaid, Landlord shall reimburse Tenant for any overpayment
at the conclusion of such arbitration. In any such arbitration, the arbitrator to be appointed shall be an electrical engineer
having at least five (5) years' experience in similar matters in New York City. Landlord will permit electrical risers, feeders
and wiring in the Building serving the Premises to be used by Tenant to the extent that they are available, suitable, safe and
within the plan and design capacities for the Building.

 

Section 13.02 Tenant
shall not, without the prior consent of Landlord, make or perform or permit any alteration to wiring installations or other electrical
facilities in or serving the Premises or any additions to the electrical fixtures, business machines or office equipment or appliances
(other than typewriters and similar low energy consuming office machines) in the Premises which utilize electrical energy. Should
Landlord grant such consent, all additional risers or other equipment required therefor shall be provided by Landlord and the cost
thereof shall be paid by Tenant within 10 days after being billed therefor, provided that Landlord shall not be obligated to consent
to any such alteration or installation if, in Landlord's judgment, the same or will cause permanent damage or injury to the Building
or the Premises or will cause or create a hazardous condition or entail excessive or unreasonable alterations, repairs or expense
or interfere with or disturb other tenants. Rigid conduit only will be allowed or such other wiring or conduit which will not violate
any applicable Legal Requirements.

 

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Section 13.03
Landlord shall have no liability to Tenant for any loss, damage or expense which Tenant may sustain or incur by reason of
any change, failure, inadequacy or defect in the supply or character of the electrical energy furnished to the Premises or if
the quantity or character of the electrical energy is no longer available or suitable for Tenant's requirements except for any
actual damage suffered by Tenant by reason of any such failure, inadequacy or defect caused by Landlord's negligence, and then
only after actual notice as provided in Section 11.02.

 

Section 13.04
Landlord shall furnish and install all lighting, tubes, lamps, starters, bulbs and ballasts required in the Premises and Tenant
shall pay to Landlord or its designated contractor the then established charges therefor as Additional Rent on demand, except that
any such items installed at the commencement of the Term for building standard fixtures shall be at Landlord's sole cost and expense.

 

Section 13.05
If pursuant to a Legal Requirement or the policies of the public utility company servicing the Building, Tenant is no longer permitted
to obtain electrical energy in the manner provided in Section 13.01, Landlord will furnish electrical energy to the Premises either,
at Landlord's option, on a submetering basis or a rent inclusion basis. Landlord shall give Tenant notice at least 30 days prior
to the date on which Landlord shall commence furnishing electrical energy to the Premises (unless such notice is not feasible under
the circumstances, in which event Landlord will give Tenant such reasonable notice as is possible), which notice will set forth
the method chosen by Landlord for furnishing electrical energy to the Premises and the terms on which Landlord will so furnish
electrical energy.

 

ARTICLE 14

 

Cleaning and Other Services

 

Section 14.01 
A. Provided this Lease is then in full force and effect, without any defaults by Tenant hereunder Landlord, at its expense, shall
cause the Premises, including the windows thereof (subject to Tenant maintaining unrestricted access to such windows), but excluding
any portions of the Premises used for the storage, preparation, service or consumption of food or beverages, to be cleaned, substantially
in accordance with the standard set forth in Exhibit D. Tenant shall pay to Landlord as Additional Rent on demand Landlord's charges
for (a) cleaning work in the Premises or the Building required because of (i) misuse or neglect on the part of Tenant or its agents,
employees, contractors, licensees or invitees, (ii) use of portions of the Premises for the storage, preparation, or consumption
of food or beverages, reproduction, data processing or computer operations, private lavatories or toilets or other special purposes
requiring greater or more difficult cleaning work than office areas, (iii) interior glass surfaces, (iv) non-Building Standard
materials or finishes installed by Tenant or at its request, (v) increases in frequency or scope in any of the items set forth
in Exhibit Das shall have been requested by Tenant, and (b) removal from the Premises and the Building of (i) so much refuse and
rubbish of Tenant as shall exceed that normally accumulated in the daily routine of ordinary business office occupancy, and (ii)
all of the refuse and rubbish of Tenant's machines and of any eating facilities requiring special handling and (c) material additional
cleaning work in the Premises or the Building required because of the use of the Premises by Tenant after hours. Landlord and its
cleaning contractor and their employees shall have access to the Premises at all times except between 8:00 A.M. and 5:30 P.M. on
business days and, to the extent that it will not unreasonably interfere with the operation of Tenant's business, during business
hours. Landlord and its cleaning contractor and their employees shall have the use of the Tenant's light, power and water in the
Premises, without charge therefor, as may be reasonably required for the purpose of cleaning the Premises. If Tenant is permitted
hereunder to and does have a separate area for the storage, preparation, service or consumption of food or beverages in the Premises,
Tenant, at its sole cost and expense, shall cause all portions of the Premises so used to be cleaned periodically in a manner reasonably
satisfactory to Landlord and to be exterminated regularly and, in addition, whenever there shall be evidence of any infestation.

 

  B. The cleaning services to be
furnished by Landlord pursuant to this Section may be furnished by a contractor or contractors employed by Landlord and Tenant
agrees that Landlord shall not be deemed in default of any of its obligations under this Section unless such default shall continue
for an unreasonable period of time after notice from Tenant to Landlord setting forth the specific nature of such default.

 

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Section 14.02
Landlord, at Landlord's expense, shall furnish necessary elevator service on business days during business hours and shall have
an elevator subject to call at all other times. Landlord shall not be required to furnish any operator service for automatic elevators.
If Landlord shall, at any time, elect to furnish operator service for any automatic elevators, Landlord shall have the right to
discontinue furnishing such service. In the event Tenant shall require the use of the Building's elevators for purposes not otherwise
supplied by Landlord or after hours, Landlord shall provide a service elevator or passenger elevator, as the case may be, for the
use of Tenant, provided that Tenant gives Landlord reasonable notice of the time and use of such elevators to be made by Tenant
and Tenant pays Landlord's usual and reasonable charges for the use thereof as Additional Rent on demand, including, without limitation,
any expense for operator service for such elevator which Landlord may deem necessary in connection with Tenant's use of such elevator.
Landlord shall have the right to change the operation or manner of operating any of the elevators in the Building and shall have
the right to discontinue, temporarily or permanently, the use of any one or more cars in any of the banks provided reasonable elevator
service is provided to the Premises.

 

Section 14.03
Landlord shall supply reasonably adequate quantities of hot and cold water to a point or points in the Premises for ordinary lavatory,
cleaning and drinking purposes. If Tenant requires, uses or consumes water for any other purpose, Landlord may install a water
meter and measure Tenant's consumption of water for all purposes. Tenant shall pay Landlord the cost of any such meter and its
installation and the cost of keeping such meter and any such installation equipment in good working order and repair as Additional
Rent on demand. Tenant agrees to pay for water consumed as shown on said meter and all sewer and any other rent, tax, levy or charge
based thereon which now or hereafter is assessed, imposed or a lien upon the Premises or the Building, as and when bills are rendered.

 

Section 14.04 Landlord
reserves the right to stop, interrupt or reduce service of the heating, ventilating or air conditioning systems, elevator, electrical
energy, or plumbing or any other service or systems, because of Force Majeure, Legal Requirements or Insurance Requirements or
for repairs or improvements, which, in the judgment of Landlord, are desirable or necessary. Landlord shall have no liability to
Tenant for failure to supply any such service or system during such period. Landlord agrees, however, to use its reasonable efforts
so that any such repairs, alterations and improvements shall be made with a minimum amount of inconvenience to Tenant and that
Landlord will diligently proceed therewith to completion, subject to Force Majeure.

 

Section 14.05
Tenant, its employees, or invitees may bring food or beverages into the Building for consumption within the Premises solely by
Tenant, its employees or invitees. In all events, all food and beverages shall be carried into the Building in closed containers.

  

Section 14.06
In the event Landlord supplies Tenant with condenser water for use in any Tenant air conditioning system, Tenant shall pay Landlord
for such condenser water at Landlord’s standard charges for supplying the same. 

 

ARTICLE 15

 

Damage to or Destruction of the Premises

 

Section 15.01
If the Premises or any part thereof shall be damaged or rendered Untenantable by fire or other insured casualty and Tenant gives
prompt notice thereof to Landlord and this Lease is not terminated pursuant to any provision of this Article, Landlord shall proceed,
with reasonable diligence after the collection of the insurance proceeds attributable to such damage, to repair or cause to be
repaired such damage to the Basic Construction of the Building. All other repairs required by reason of such casualty shall be
performed by Tenant, at its sole cost and expense, promptly and with due diligence. Except as provided in Section 15.07, the rent
shall be equitably abated to the extent that the Premises shall have been rendered Untenantable, such abatement to be from the
date of such damage to the date the Premises shall no longer be Untenantable; provided, however, should Tenant reoccupy a portion
of the Premises during the period the repair work is taking place and prior to the date the Premises are no longer Untenantable,
the rent allocable to such reoccupied portion, based upon the proportion which the reoccupied portion of the Premises bears to
the total area of the Premises, shall be payable by Tenant from the date of such occupancy.

 

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Section 15.02 
If the Premises shall be totally damaged or rendered wholly Untenantable by fire or other casualty, and Landlord has not terminated
this Lease pursuant to Section 15.03 and Landlord has not completed the making of the required repairs to the Premises and access
thereto within 9 months from the date of such damage or destruction and such additional time after such date (but in no event to
exceed 3 months), as shall equal the aggregate period Landlord may have been delayed in doing so by Force Majeure or adjustment
of insurance, Tenant, within 30 days after the date on which Landlord is required to complete the repairs pursuant to this Section,
may serve notice on Landlord of its intention to terminate this Lease, and if within said 30 day period, Landlord shall not have
substantially completed the making of the required repairs, this Lease shall terminate on the expiration of such 30 day period
as if such termination date were the Expiration Date without prejudice, however, to Landlord's or Tenant’s other rights and
remedies under the terms of this Lease.

 

Section 15.03 
If the Premises shall be totally destroyed or rendered wholly Untenantable by fire or other casualty or if the Building shall be
so damaged by fire or other casualty that substantial alteration or reconstruction of the Building shall, in Landlord's sole opinion,
be required (whether or not the Premises shall have been damaged by such fire or other casualty), then in any such event Landlord
may, at its option, terminate this Lease, by giving Tenant 30 days' notice of such termination, within 120 days after the date
of such fire or other casualty. In the event that such notice of termination shall be given, this Lease shall terminate as of the
date provided in such notice of termination (whether or not the Term shall have commenced) with the same affect as if that date
were the Expiration Date without prejudice, however, to Landlord's or Tenant’s rights and remedies under the terms of this
Lease. If, at any time prior to Landlord giving Tenant the aforesaid notice of termination or commencing the repair pursuant to
Section 15.01, there shall be a Successor Landlord, such Successor Landlord shall have a further period of 60 days from the date
of so taking possession to terminate this Lease by 30 days' notice to Tenant and in the event that such a notice of termination
shall be given, this Lease shall terminate as of the date provided in such 30 day notice of termination (whether or not the Term
shall have commenced) with the same effect as if that date were the Expiration Date without prejudice, however, to Landlord's (or
Successor Landlord's) or Tenant’s rights and remedies under the terms of this Lease.

 

Section 15.04 
Landlord shall not be liable for any inconvenience or annoyance to Tenant or injury to the business of Tenant resulting in any
way from any such damage by fire or other casualty or the repair thereof, except to the extent such fire or other casualty was
caused by Landlord’s negligence or willful misconduct. Landlord shall not be obligated to carry insurance of any kind on
Tenant's Property or any improvements made at Tenant's sole cost and expense, and Landlord shall not be obligated to repair any
damage thereto or replace the same, except to the extent such fire or other casualty was caused by Landlord’s negligence
or willful misconduct.

 

Section 15.05
Except as expressly provided in Article 8, nothing herein contained shall relieve Tenant from any liability to Landlord or to its
insurers in connection with any damage to the Premises or the Building by fire or other casualty if Tenant shall be legally liable
in such respect.

 

Section 15.06
This Article shall be considered an express agreement governing any case of damage to or destruction of the Building or any part
thereof by fire or other casualty, and Section 227 of the Real Property Law of the State of New York providing for such a contingency
in the absence of such express agreement, and any other law of like import now or hereafter enacted, shall have no application
in such case.

 

Section 15.07
Notwithstanding any of the foregoing provisions of this Article, if, by reason of some action or inaction on the part of Tenant
or any of its employees, agents, licensees or contractors, either (a) Landlord or the Superior Lessor, the Superior Mortgagee or
the Fee Mortgagee shall be unable to collect all of the insurance proceeds (including rent insurance proceeds) applicable to damage
or destruction of the Premises or the Building by fire or other casualty or (b) the Premises or the Building shall be damaged or
destroyed or rendered completely or partially Untenantable on account of fire or other casualty then, without prejudice to any
other remedy which may be available against Tenant, the abatement of rent provided for in this Article shall not be effective to
the extent of the uncollected insurance proceeds.

 

ARTICLE 16

 

Eminent Domain

 

Section 16.01 
If the whole or any substantial part of the Premises shall be acquired or condemned by Eminent Domain for any public or quasi public
use or purpose, then and in that event, the term of this Lease shall cease and terminate from the date of title vesting in such
proceeding and Tenant shall have no claim for the value of any unexpired term of the Lease and assigns to Landlord, Tenant's entire
interest in any such award. If less than a substantial part of the Premises is condemned, this Lease shall not terminate, but Rent
shall abate in proportion to the portion of the Premises condemned.

 

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ARTICLE 17

 

Conditions of Limitation

 

Section 17.01 
To the extent permitted by applicable law this Lease and the term and estate hereby granted are subject to the limitation that
whenever Tenant shall make an assignment of the property of Tenant for the benefit of creditors, or shall file a voluntary petition
under any bankruptcy or insolvency law, or an involuntary petition alleging an act of bankruptcy or insolvency shall be filed against
Tenant under any bankruptcy or insolvency law, or whenever a petition shall be filed or against Tenant under the reorganization
provisions of the United States Bankruptcy Act or under the provisions of any law of like import, or whenever a petition shall
be filed by Tenant under the arrangement provisions of the United States Bankruptcy Act or under the provisions of any law of like
import, or whenever a permanent receiver of Tenant or of or for the property of Tenant shall be appointed, provided that any such
case is not dismissed, discharged or denied within one hundred twenty (120) days of the filing thereof, then, Landlord, (a) at
any time after receipt of notice of the occurrence of any such event, or (b) if such event occurs without the acquiescence of Tenant,
at any time after the event continues for ninety (90) days Landlord may give Tenant a notice of intention to end the term of this
Lease at the expiration of five (5) days from the date of service of such notice of intention, and upon the expiration of said
five (5) day period this Lease and the term and estate hereby granted, whether or not the term shall theretofore have commenced,
shall terminate with the same effect as if that day were the Expiration Date, but Tenant shall remain liable for damages as provided
in Article 18.

 

Section 17.02
This Lease and the Term and estate hereby granted are subject to the limitations that:

 

 (a) if Tenant shall
default in the payment when due of any installment of Fixed Rent or in the payment when due of any Additional Rent, and such default
shall continue for a period of 5 business days after notice by Landlord to Tenant of such default; or

 

 (b) if Tenant shall
default in the performance of any term of this Lease on Tenant's part to be performed (other than the payment of Fixed Rent and
Additional Rent) and Tenant shall fail to remedy such default within 30 days after notice by Landlord to Tenant of such default,
or if such default is of such a nature that it cannot be completely remedied within said period of 30 days if Tenant shall not
(x) promptly upon the giving by Landlord of such notice, advise Landlord of Tenant's intention to institute all steps necessary
to remedy such situation, (y) promptly institute and thereafter diligently prosecute to completion all steps necessary to remedy
the same, and (z) complete such remedy within a reasonable time after the date of the giving of said notice by Landlord; and in
any event prior to such time as would either (i) subject Landlord, Landlord's agents, the Superior Lessor, the Superior Mortgagee
or the Fee Mortgagee to prosecution for a crime or (ii) cause a default under the Superior Lease or the Superior Mortgage; or

 

 (c) if any financial
statement or other financial information furnished by Tenant or Guarantor pursuant to the provisions of this Lease or at the request
of Landlord (including credit bureau reports or statements) shall evidence or disclose either net worth or net assets of Tenant
or Guarantor at least 50% less than the net worth or net assets, as the case may be, shown in either the immediately prior financial
statement or in the financial statement furnished at the time of execution of this Lease of Tenant or Guarantor, as the case may
be, and Tenant fails to furnish to Landlord promptly after notice from Landlord to Tenant requesting it, an additional security
deposit in cash (or other security acceptable to Landlord in its sole discretion) equivalent to the aggregate of the Fixed Rent
and Additional Rent payable hereunder for the 3 full calendar months immediately preceding such notice, which security shall be
held by Landlord pursuant to the terms of Article 36 until Tenant or Guarantor, as the case may be, shall furnish 2 succeeding
annual financial statements to Landlord evidencing increases of not less than 25% over each prior statement of Tenant and Guarantor,
as the case may be, in both net worth and net assets; or

 

 (d) if any event shall
occur or any contingency shall arise whereby this Lease or the estate hereby granted or the unexpired balance of the Term would,
by operation of law or otherwise, devolve upon or pass to any person other than Tenant except as is expressly permitted under Article
22; or

 

 (e) if the Premises
shall become abandoned (unless as a result of a casualty); or

 

 (f) if Tenant shall
default in the performance of any term, covenant, agreement or condition on Tenant's part to be observed or performed under any
other lease with Landlord of space in the Building and such default shall continue beyond the grace period, if any, set forth in
such other lease for the remedying of such default,

 

then in any of said events Landlord may
give to Tenant notice of intention to terminate this Lease to end the Term and the estate hereby granted at the expiration of 5
days from the date of the giving of such notice, and, in the event such notice is given, this Lease and the Term and estate hereby
granted (whether or not the Term shall have commenced) shall terminate upon the expiration of said 5 days with the same effect
as if that day were the Expiration Date, but Tenant shall remain liable for damages as provided in Article 18.

 

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Section 17.03 
If the notice provided for in Section 17.01 shall have been given and this Lease shall be terminated or if the Premises shall be
or become abandoned, then, in any such event, Landlord may without notice terminate all services.

 

ARTICLE 18

 

Re-Entry by Landlord; Remedies

 

Section 18.01
A. If Tenant shall default in the payment when due of any installment of Fixed Rent or in the payment when due of any Additional
Rent and such default shall continue for a period of 5 business days after notice from Landlord to Tenant of such default or if
this Lease and the Term shall terminate as provided in Article 17:

 

 (a) Landlord and Landlord's
agents may immediately, or at any time after such default or after the date upon which this Lease and the Term shall terminate,
re-enter the Premises or any part thereof, without notice, either by summary proceedings or by any other applicable action or proceeding,
or by force or otherwise (without being liable to indictment, prosecution or damages thereof), and may repossess the Premises and
dispossess Tenant and any other persons from the Premises and remove any and all of its or their property and effects from the
Premises, without liability for damage thereto, to the end that Landlord may have, hold and enjoy the Premises and in no event
shall reentry be deemed an acceptance of surrender of this Lease; and

 

 (b) Landlord, at its
option, may relet the whole or any part or parts of the Premises from time to time, either in the name of Landlord or otherwise,
to such tenant or tenants, for such term or terms ending before, on or after the Expiration Date, at such rental or rentals and
upon such other terms and conditions, which may include concessions and free rent periods, as Landlord, in its sole discretion,
may determine. Landlord shall use reasonable efforts, but shall have no absolute obligation to relet the Premises or any part thereof
and shall in no event be liable for refusal or failure to relet the Premises or any part thereof, or, in the event of such reletting,
for reasonable refusal or failure to collect any rent upon any such reletting, and no such reasonable refusal or failure shall
operate to relieve Tenant of any liability under this Lease or otherwise to affect any such liability. Landlord, at Landlord's
option, may make such repairs, improvement, alterations, additions, decorations and other physical changes in and to the Premises
as Landlord, in its sole discretion, considers advisable or necessary in connection with any such reletting or proposed reletting,
without relieving Tenant of any liability under this Lease or otherwise affecting any such liability.

 

B. No such re-entry
or taking possession of the Premises by Landlord shall be construed as an election by Landlord to terminate this Lease, unless
Landlord gives written notice to Tenant of such election. In the event Landlord relets the whole or any part or parts of the Premises
pursuant to this Article 18 without terminating this Lease, Landlord may at any time thereafter elect to terminate this Lease for
such previous default.

 

Section 18.02 Intentionally
Deleted.

 

Section 18.03
In the event of any breach by Tenant or any person claiming through or under Tenant of any of the terms of this Lease, Landlord
shall be entitled to seek to enjoin such breach or threatened breach and shall have the right to invoke any right allowed at law
or in equity, by statute or otherwise, as if re-entry, summary proceedings or other specific remedies were not provided for in
this Lease.

 

Section 18.04
If this Lease is terminated under the provisions of Article 17, or if Landlord shall re-enter the Premises, or in the event of
the termination of this lease, or of re-entry, by or under any summary dispossess or other proceeding or action or any provision
of law by reason of default hereunder on the part of Tenant, Tenant shall pay to Landlord as damages, at the election of Landlord,
either:

 

  (a)     a sum which at the time of such
termination of this Lease or at the time of any such re-entry by Landlord, as the case may be, represents the then value of the
excess, if any, of:

 

 (1) the aggregate of
the Fixed Rent and the Additional Rent payable hereunder which would have been payable by Tenant (conclusively presuming the Additional
Rent to be the same as was payable for the year immediately preceding such termination) for the period commencing with such earlier
termination of this Lease or the date of any such re-entry, as the case may be, and ending with the Expiration Date, had this lease
not so terminated or had Landlord not so re-entered the Premises for the same period; over

 

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 (2)      the
aggregate rental value of the Premises for the same period; or

 

 (b)      sums
equal to the Fixed Rent and the Additional Rent (as above presumed) payable hereunder which would have been payable by Tenant had
this Lease not so terminated, or had Landlord not so re-entered the Premises, payable upon the due dates therefor specified herein
following such termination or such re-entry and until the Expiration Date, provided, however, that if Landlord shall relet the
Premises during said period, Landlord shall credit Tenant with the net rents received by Landlord from such reletting, such net
rents to be determined by first deducting from the gross rents as and when received by Landlord from such reletting the expenses
incurred or paid by Landlord in terminating this Lease or in re-entering the Premises and in securing possession thereof, as well
as the expenses of reletting, including altering and preparing the Premises for new tenants, brokers' commissions, and all other
expenses properly chargeable against the Premises and the rental therefrom; it being understood that any such reletting may be
for a period shorter or longer than the remaining term of this Lease; but in no event shall Tenant be entitled to receive any excess
of such net rents over the sums payable by Tenant to Landlord hereunder, nor shall Tenant be entitled in any suit for the collection
of damages pursuant to this Subsection to a credit in respect of any net rents from a reletting, except to the extent that such
net rents are actually received by Landlord. If the Premises or any part thereof should be relet in combination with other space,
then proper apportionment on a square foot basis (for equivalent space) shall be made of the rent received from such reletting
and of the expenses of reletting.

 

If the Premises or any part thereof be
relet by Landlord for the unexpired portion of the term of this Lease, or any part thereof, before presentation of proof of such
damages to any court, commission or tribunal, the amount of rent reserved upon any reletting to a third party that is not, directly
or indirectly, affiliated with or related to Landlord shall, prima facie, be the fair and reasonable rental value for the Premises,
or part thereof, so relet during the term of the reletting.

 

Section 18.05
Suit or suits for the recovery of such damages, or any installments thereof, may be brought by Landlord from time to time at its
election, and nothing contained herein shall be deemed to require Landlord to postpone suit until the date when the term of this
Lease would have expired if it had not been so terminated under the provisions of Article 17, or under any provision of law, or
had Landlord not re-entered the Premises. Nothing herein contained shall be construed to limit or preclude recovery by Landlord
against Tenant of any sums or damages to which, in addition to the damages particularly provided above, Landlord may lawfully be
entitled by reason of any default hereunder on the part of Tenant. Nothing herein contained shall be construed to limit or prejudice
the right of Landlord to prove for and obtain as liquidated damages by reason of the termination of this Lease or re-entry on the
Premises for the default of Tenant under this Lease, an amount equal to the maximum allowed by any statute or rule of law in effect
at the time when, and governing the proceedings in which, such damages are to be proved whether or not such amount be greater,
equal to, or less than any of the sums referred to in Section 18.04.

 

Section 18.06
Nothing herein contained shall be construed as limiting or precluding the recovery by Landlord against Tenant of any sums or damages
to which, in addition to the damages particularly provided above, Landlord may lawfully be entitled by reason of any default hereunder
on the part of Tenant.

 

Section 18.07
Each right of Landlord provided for in this Lease shall be cumulative and shall be in addition to every other right provided for
in this Lease or now or hereafter existing at law or in equity, by statute or otherwise, and the exercise or beginning of the exercise
by Landlord of any one or more of such rights shall not preclude the simultaneous or later exercise by Landlord of any or all other
rights provided for in this Lease or now or hereafter existing at law or in equity, by statute or otherwise.

 

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ARTICLE 19

 

Curing Tenant's Defaults; Fees and Expenses

 

Section 19.01
If Tenant shall default in the performance of any term of this Lease on Tenant's part to be performed, Landlord, without thereby
waiving such default and without liability to Tenant in connection therewith, may, but shall not be obligated to, perform the same
for the account and at the expense of Tenant, without notice in case of emergency and upon 5 days' prior notice in all other cases,
Landlord may enter the Premises at any time to cure any default without any liability to Tenant. Bills for any expenses incurred
by Landlord in connection with any such performances or involved in collecting or endeavoring to collect rent or enforcing or endeavoring
to enforce any rights against Tenant under or in connection with this Lease or pursuant to law, including any cost, expense and
disbursement involved in instituting and prosecuting summary proceedings, as well as bills for any property, material, labor or
services provided, furnished or rendered, including reasonable attorneys' fees and disbursements, shall be paid by Tenant as Additional
Rent on demand. In the event that Tenant is in arrears in payment of rent, Tenant waives Tenant's right, if any, to designate the
items against which any payments made by Tenant are to be credited and Landlord may apply any payments made by Tenant to any items
Landlord sees fit, irrespective of and notwithstanding any designation or requests by Tenant as to the items against which any
such payments shall be credited. Landlord reserves the right, without liability to Tenant to suspend furnishing to Tenant electrical
energy and all or any other services (including heat, ventilation and air conditioning), whenever Landlord is obligated to furnish
the same after hours or otherwise at Tenant's expense, in the event that (but only for so long as) Tenant is in arrears in paying
Landlord therefor.

 

ARTICLE 20

 

Non-Liability and Indemnification

 

Section 20.01 Tenant
shall not do or permit any act or thing to be done upon the Premises which may subject Landlord to any liability or responsibility
for injury, damages to persons or property or to any liability by reason of any violation of law or of any legal requirement of
public authority, but shall exercise such control over the Premises to fully protect Landlord against any such liability. Tenant
shall defend, indemnify and hold harmless Landlord, managing agent, other agents, officers, directors, shareholders, partners,
principals, employees and tenants in common (whether disclosed or undisclosed) (hereinafter collectively referred to as the “Landlord
Parties”) from and against any and all claims, demands, liability, losses, damages, costs and expenses (including reasonable
attorneys’ fees and disbursements) arising primarily and directly from (a) any breach or default by Tenant in the full and
prompt payment and performance of Tenant’s obligations hereunder beyond the cure period contained in a written notice; (b)
the use or occupancy or manner of use or occupancy of the Premises by Tenant or any person claiming under or through Tenant; (c)
any act, omission or negligence of Tenant or any of its subtenants, assignees or licensees or its or their partners, principals,
directors, officers, agents, invitees, employees, guests, customers or contractors during the term hereof; (d) any accident, injury
or damage occurring in or about the Premises during the term hereof; (e) the performance by Tenant of any alteration or improvement
to the Premises including, without limitation, Tenant’s failure to obtain any permit, authorization or license or failure
to pay in full any contractor, subcontractor or materialmen performing work on such alteration; (f)any mechanics lien filed, claimed
or asserted in connection with any alteration or any other work, labor, services or materials done for or supplied to, or claimed
to have been done for or supplied to, Tenant or any person claiming through or under Tenant and (g) any certification made by any
architect or engineer retained by or on behalf of Tenant to any governmental authority (as well as any certification also executed
or submitted by Landlord if prepared by Tenant) in connection with any alteration or improvement to the Premises, except to the
extent that any such claims, demands, liability, losses, damages, costs or expenses in subsections (a) through (g) have resulted
primarily and directly from any Landlord Parties’ acts, omissions, negligence, or willful misconduct. If any claim, action
or proceeding is brought against any of the Landlord Parties for a matter covered by this indemnity, Tenant, upon notice from the
indemnified person or entity, shall defend such claim, action or proceeding with counsel reasonably satisfactory to Landlord and
the indemnified person or entity (Landlord hereby agreeing that counsel for Tenant’s insurance company is acceptable to Landlord).
The provisions of this Article shall survive the expiration or sooner termination of this Lease.

 

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ARTICLE 21

 

Surrender

 

Section 21.01
On the Expiration Date or upon the sooner termination of this Lease or upon any reentry by Landlord upon the Premises, Tenant shall,
at its sole cost and expense, quit, surrender, vacate and deliver the Premises to Landlord “broom clean” and in good
order, condition and repair except for ordinary wear, tear and damage by fire or other insured casualty, together with all Improvements
and Fixtures (except as otherwise provided for in this Lease). Tenant shall remove from the Real Property all of Tenant’s
Property and all other personal property and personal effects of all persons claiming through or under Tenant, and shall pay the
cost of repairing all damage to the Premises and the Real Property occasioned by such removal. Any Tenant’s property or other
personal property which shall remain in the Premises after the termination of this Lease shall be deemed to have been abandoned
and either may be retained by Landlord as its property or may be disposed of in such a manner as Landlord may see fit. If such
Tenant’s Property or other personal property or any part thereof shall be sold, Landlord may receive and retain the proceeds
of such sale as the property of Landlord. Any expense incurred by Landlord in removing or disposing of such Tenant’s Property
or other personal property shall be reimbursed to Landlord by Tenant as Additional Rent on demand.

 

Section 21.02
If the Expiration Date or the date of sooner termination of this Lease shall fall on a day which is not a business day, then Tenant's
obligations under Section 21.01 shall be performed on or prior to the immediately preceding business day.

 

Section 21.03
If the Premises are not surrendered upon the termination of this Lease, Tenant hereby indemnifies Landlord against liability primarily
and directly resulting from delay by Tenant in so surrendering the Premises, including any claims made by any succeeding tenant
or prospective tenant founded upon such delay.

 

Section 21.04
In the event Tenant remains in possession of the Premises after the termination of this Lease without the execution of a new lease,
Tenant, at the option of the Landlord, shall be deemed to be occupying the Premises as a tenant from month to month, at a monthly
rental equal to two times the Fixed Rent and Additional Rent payable during the last month of the Term, subject to all of the other
terms of this Lease insofar as the same are applicable to a month-to-month tenancy.

 

Section 21.05
Tenant's obligation under this Article shall survive the termination of this Lease.

 

ARTICLE 22

 

Assignment, Mortgaging and Subletting

 

Section 22.01
Tenant, for itself, its heirs, distributee, executors, administrators, legal representatives, successors and assigns, expressly
covenants that it shall not assign, mortgage, pledge, or otherwise encumber, all or any part of its interest in this Lease, sublet
the Premises, in whole or in part, or suffer or permit the Premises or any part thereof to be used or occupied by others, without
the prior written consent of Landlord in each instance. Any assignment, sublease, mortgage, pledge, encumbrance or transfer in
contravention of the provisions of this Article 22 shall be void.

 

Section 22.02
If Tenant shall, at any time or from time to time, desire to assign its interest in this Lease or to sublet the Premises, the Tenant
shall submit to Landlord a written request for Landlord's consent to such assignment or subletting, which request shall be accompanied
by the following information: (i) a true copy of the proposed instrument of assignment or sublease, the effective or commencement
date of which shall be not less than 60 nor more than 180 days after the giving of such notice, and copies of all other agreements
between the parties signed concurrently or in connection with such assignment or sublease; (ii) a statement setting forth in reasonable
detail the name and address of the proposed assignee or subtenant, the nature of its business and the proposed uses of the Premises;
and (iii) current financial information about the proposed assignee or subtenant and any guarantor of its obligations, including,
without limitation, its most recent financial statement, and any other information Landlord may reasonably request with respect
to the proposed assignee or subtenant. Landlord, by notice given to Tenant within sixty (60) days after receipt of Tenant's request
for consent, may terminate this Lease on a date to be specified in said notice (the "Termination Date"), which date shall
be not earlier than one (1) day before the effective date of the proposed assignment or subletting nor later than sixty-one (61)
days after said effective date, and, in such event, all rent and additional rent due hereunder shall be paid and apportioned to
such date, and Tenant shall vacate and surrender the Premises on or before the Termination Date as if it were the Expiration Date.
If Landlord shall so exercise its option to terminate this Lease, Landlord shall have the right to let all or portions of the Premises
to any person (including, without limitation, Tenant's proposed assignee or subtenant), without any liability to Tenant.

 

Section 22.03
If Landlord shall not exercise its option to terminate this Lease pursuant to Section 22.02 above, Landlord shall not unreasonably
withhold its consent to the proposed assignment or subletting for the use expressly permitted in this Lease, provided that:

 

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  (1)       the
Premises shall not, without Landlord's prior consent, have been listed or otherwise publicly advertised for assignment or subletting
at a rental rate lower than the higher of (a) the Fixed Rent and all Additional Rent then payable, or (b) the then prevailing rental
rate for other space in the Building, and Tenant shall not enter into any sublease at a lower rental rate than the Fixed Rent and
all Additional Rent then payable;

 

  (2)       Tenant
shall employ, as exclusive renting agent for subletting and assignment of this Lease, having the sole and exclusive right to lease,
Landlord's managing agent for the Building or such broker as shall be approved by Landlord;

 

  (3)       Tenant
shall not then be in default hereunder;

 

  (4)       the
proposed assignee or subtenant shall have a financial standing, be of a character be engaged in a business, and propose to use
the Premises, in a manner in keeping with the standards of the Building;

 

  (5)       The
proposed assignee or subtenant shall not then be a tenant, subtenant or assignee of any space in the Building, nor shall the proposed
assignee or subtenant be a person or entity with whom Landlord is then or has been, within the prior six-month period, negotiating
to lease space in the Building;

 

  (6)       the
character of the business to be conducted in the Premises by the proposed assignee or subtenant shall not be likely to increase
building operating expenses, use of elevators, cleaning services or other services in the Building;

 

  (7)       there
shall be no more than one subtenant in the Premises at any time;

 

  (8)       Tenant
shall reimburse Landlord on demand for any costs, including reasonable attorneys' fees and disbursements, that may be incurred
by Landlord in connection with said assignment or sublease; and

 

  (9)       the
proposed assignee or subtenant shall not be any entity which is entitled to diplomatic or sovereign immunity or which is not subject
to service of process in the State of New York or to the jurisdiction of the courts of the State of New York and the United States
located in New York County.

 

If there is a dispute between Landlord
and Tenant as to the reasonableness of Landlord's refusal to consent to any subletting or assignment, such dispute shall be determined
by arbitration in The City of New York in accordance with the prevailing rules of the American Arbitration Association. The arbitrators
shall be bound by the provisions of this Lease and shall not add to, subtract from, or otherwise modify such provisions. Notwithstanding
any contrary provisions hereof, Tenant hereby waives any claim against Landlord for money damages which it may have based upon
any assertion that Landlord has unreasonably withheld or delayed any consent to any assignment or a subletting pursuant to this
Article. Tenant agrees that, in the event of any such dispute, its sole remedy shall be an action or proceeding to enforce such
provision or for specific performance.

 

Section 22.04
Every subletting hereunder is subject to the express condition, and by accepting a sublease hereunder each subtenant shall be conclusively
deemed to have agreed, that if this Lease should be terminated prior to the Expiration Date or if Landlord should succeed to any
portion of Tenant's estate in the Premises, then at Landlord's election such subtenant shall either surrender that portion of the
Premises to Landlord within sixty (60) days of Landlord's request therefor, or shall attorn to and recognize Landlord as such subtenant's
landlord under such sublease (except that Landlord shall not be liable for any previous act or omission of Tenant, nor bound by
any modification of the Sublease not approved in writing by Landlord, nor liable for any security not received by landlord or any
prepaid rent in excess of one month's rent), and such subtenant shall promptly execute and deliver any instrument Landlord may
reasonably request to evidence such attornment.

 

Section 22.05
Tenant shall deliver to Landlord a copy of each sublease or assignment made hereunder within ten (10) days after the date of its
execution. Tenant shall remain fully liable for the due and timely performance of all of Tenant's obligations hereunder notwithstanding
any subletting or assignment provided for herein and, without limiting the generality of the foregoing, shall remain fully responsible
and liable to Landlord for all acts and omissions of any subtenant, assignee or anyone claiming by, through or under any subtenant
or assignee which shall be in violation of any of the obligations of this Lease, and any such violation shall be deemed to be a
violation by Tenant. Notwithstanding any assignment and assumption by the assignee of the obligations of Tenant hereunder, Tenant
herein named, and each immediate or remote successor in interest of Tenant herein named, shall remain liable jointly and severally
(as a primary obligor) with its assignee and all subsequent assignees for the performance of Tenant's obligations hereunder, and
shall remain fully and directly responsible and liable to Landlord for all acts and omission on the part of any assignee subsequent
to it in violation of any of the obligations of this Lease.

 

    	27

    	 

    

 

Section 22.06
Each sublease shall be in form and content satisfactory to Landlord, and shall contain provisions setting forth the matters contained
in Section 22.04 above, and further provisions that: (i) the sublease is subject and subordinate to this Lease and all amendments
and modifications hereof, and (ii) the sublease shall not be assigned, transferred, pledged, mortgaged or encumbered by the subtenant,
in whole or in part, nor shall the sublet premises be further sublet or used or occupied by persons other than the subtenant, without
the prior written consent of Landlord in each instance. No subletting shall end later than one day before the Expiration Date of
this Lease.

 

Section 22.07
No assignment of Tenant's interest in this Lease shall be binding upon Landlord unless the assignee shall execute, acknowledge
and deliver to Landlord an agreement, in form and substance satisfactory to Landlord, whereby such assignee agrees unconditionally
to be personally bound by and to perform all of the obligations of Tenant hereunder and further expressly agrees that notwithstanding
such assignment the provisions of this Article shall continue to be binding upon such assignee with respect to all future assignments
and transfers.

 

Section 22.08 
If Landlord shall have consented to any assignment or subletting, or if there is any transfer of this Lease by operation of law
or otherwise, and if Tenant shall receive any consideration from its assignee or subtenant for or in connection with the assignment
of Tenant's interest in this Lease or the subletting of the Premises or any part thereof, as the case may be, or if Tenant shall
sublet the Premises or a part thereof at a rental rate (including additional rent) which shall exceed the rental rate payable hereunder
(explicitly excluding sums paid for the sale or rental of Tenant's fixtures, leasehold improvements, equipment, furniture or other
personal leasehold property), then Tenant shall pay to Landlord, as Additional Rent hereunder, 50% of the amount of such excess
after deducting the actual reasonable expenses of Tenant in connection with such assignment or sublease for broker’s fees,
attorney’s fees, tenant allowances and abatement of rent. In the case of a subletting of less than the entire Premises, the
above calculation of rental rates shall be made on a per square foot basis.

 

Section 22.09
If Tenant or any general partner of Tenant is ever a partnership or corporation or other entity, the provisions of this lease limiting
or prohibiting the assignment hereof or subletting of the Premises shall be deemed to have been violated by (i) the transfer or
transfers of a partnership interest, stock ownership or other equity interest, or (ii) the issuance of new such partnership or
stock interests, or (iii) the merger, dissolution or liquidation, in or of Tenant, or any entity which is a general partner of
Tenant, whether voluntarily or by operation of law, if such happening or happenings, individually or in the aggregate result in
(a) the admission of a new general partner of Tenant, or (b) a change in control (hereinafter defined ) of Tenant or any general
partner of Tenant. As used in the preceding sentence the term "control" shall mean actual operating control of Tenant's
ordinary business operations or a beneficial ownership interest (direct or indirect) of 50% or more in Tenant or any general partner
of Tenant. Throughout the term of this Lease, within ten (10) days after request by Landlord, Tenant will advise Landlord by sworn
statement in writing as to the identity and ownership interests of its shareholders, partners and other principals.

 

Section 22.10
In the event that Tenant fails to execute and deliver any assignment or sublease to which Landlord consented under the provisions
of this Article within forty-five (45) days after the giving of such consent, then Tenant shall again comply with all of the provisions
of this Article before assigning its interest in this Lease or subletting the Premises.

 

Section 22.11 
The consent of Landlord to an assignment or a subletting shall not relieve Tenant from obtaining the express consent in writing
of Landlord to any further assignment or subletting.

 

Section 22.12
If Tenant's interest in this Lease be assigned, or if the Premises or any part thereof be sublet or occupied by anyone other than
Tenant, upon default by Tenant, Landlord may collect rent from the assignee, subtenant or occupant and apply the net amount collected
to the rental herein reserved, but no such assignment, subletting, occupancy or collection shall be deemed a waiver of the provisions
of this Article or of any default hereunder or the acceptance of the assignee, subtenant or occupant as Tenant, or a release of
Tenant from the further observance or performance by Tenant of all of the covenants, conditions, terms and provisions on the part
of Tenant to be performed or observed.

 

Section 22.13 
Tenant agrees to forever indemnify and hold harmless Landlord from and against the claims of any proposed subtenant or assignee
relating to Landlord's response to Tenant's request for consent to an assignment or subletting, and claims of any broker who alleges
to have played any part in bringing about a proposed sublease or assignment in each case whether or not such sublessor assignment
shall be consented to by Landlord and/or consummated, and against all losses, damages, costs and expenses incurred by Landlord
(including, without limitation, attorneys fees) relating to or resulting from such claims.

 

Section 22.14
The listing or posting of any name, other than that of Tenant, whether on the door or exterior wall of the Premises, the Building’s
tenant directory in the lobby or elevator, or elsewhere, shall not:

 

   (i) Constitute a waiver
of Landlord’s right to withhold consent to any sublet or assignment pursuant to this Article 22.

 

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   (ii) Be deemed an implied
consent by Landlord to any sublet of the Premises or any portion thereof, to any assignment or transfer of the Lease, or to any
unauthorized occupancy of the Premises, except in accordance with the express terms of the Lease; or

 

Section
22.15  Notwithstanding anything to the contrary contained in Article 22, Tenant shall have the privilege, subject to the terms
and conditions hereinafter set forth without the consent of Landlord (and without Landlord having the right set forth in Section
22.02) to assign its interest in this Lease (i) to a purchaser of all or substantially all of Tenant's assets or stock or pursuant
to a merger or consolidation (provided such purchaser shall have also assumed substantially all of Tenant's liabilities), or (ii)
to a corporation or partnership entity or limited liability company which shall control, be under the control of, or be under common
control with, Tenant or its principals (the term "control" as used herein shall be deemed to mean ownership of more than
50% of the outstanding voting stock of a corporation, or other majority equity and controlling interest if the assignee is not
a corporation) (any such entity being a "Related Entity"). Tenant may, without consent of Landlord, also sublease all
or any portion of the Premises to any corporation or other entity which is a Related Entity only for so long as such corporation
or other entity shall remain a Related Entity. Any assignment or subletting described above may be made upon the condition that
(A) the principal purpose of such assignment or sublease is not the acquisition of Tenant's interest in this Lease (except if such
assignment or sublease is made to a Related Entity and is made for a valid business purpose) and (B) no such assignment shall be
valid unless Tenant shall, within ten (10) business days after execution thereof, deliver to Landlord (x) a duplicate original
instrument of assignment in form and substance reasonably satisfactory to Landlord, duly executed by the Tenant and (y) a duplicate
original instrument in form and substance reasonably satisfactory to Landlord, duly executed by the assignee, in which such assignee
shall assume observance and performance of, and agree to
be bound by, all of the terms, covenants and conditions of this Lease on Tenant's part to be observed and performed and (C) no
such sublease shall be valid unless Tenant shall, within ten (10) business days after the execution thereof, deliver to Landlord
a duplicate original sublease in form and substance reasonably satisfactory to Landlord, duly executed by Tenant and subtenant.
If at any time following such subletting to a Related Entity, such subtenant shall cease to be a Related Entity, then Tenant shall
not more than ten (10) business days after the date such subtenant shall cease to be a Related Entity, deliver to Landlord a duplicate
original instrument or assignment and assumption in form and substance reasonably satisfactory to Landlord duly executed by such
subtenant and Tenant terminating such sublease. If at any time following such assignment to a Related Entity, such assignee shall
cease to be a Related Entity, then Tenant shall not more than ten (10) business days after the date such assignee shall cease to
be a Related Entity, deliver to Landlord a duplicate original instrument of assignment and assumption in form and substance reasonably
satisfactory to Landlord duly executed by such assignee and Tenant whereby the assignee shall assign this Lease and right such
assignee may have hereunder to Tenant.

 

ARTICLE 23

 

Subordination and Attornment

 

Section 23.01
This Lease and all rights of Tenant hereunder are and shall be subject and subordinate in all respects to (a) all present and future
ground leases, operating leases, superior leases, overriding leases and underlying leases and grants of term of the Land and the
Building or any portion thereof (collectively, including the applicable items set forth in subdivision (d) of this Section 23.01,
the "Superior Lease"), (b) all mortgages and building loan agreements, including leasehold mortgages and spreader and
consolidation agreements, which may now or hereafter affect the Land, the Building or the Superior Lease (collectively, including
the applicable items set forth in subdivisions (c) and (d) of this Section 23.01, the "Superior Mortgage") whether or
not the Superior Mortgage shall also cover other lands or buildings or leases except that a mortgage on the Land only shall not
be a Superior Mortgage so long as there is in effect a Superior Lease which is not subordinate to such mortgage, (c) each advance
made or to be made under the Superior Mortgage, (d) all renewals, modifications, replacements, supplements, substitutions and extensions
of the Superior Lease and the Superior Mortgage and all spreader and consolidations of the Superior Mortgage and (e) the Declaration.
The provisions of this Section shall be self-operative and no further instrument of subordination shall be required. In confirmation
of such subordination, Tenant shall promptly execute and deliver, at its own cost and expense, any instrument, in recordable form
if requested, that Landlord, the Superior Lessor or the Superior Mortgagee may reasonably request to evidence such subordination;
and if Tenant fails to execute, acknowledge or deliver any such instrument within 10 days after the request therefor, Tenant hereby
irrevocably constitutes and appoints Landlord as Tenant's attorney-in-fact, coupled with an interest, to execute, acknowledge and
deliver any such instruments for and on behalf of Tenant.

 

Section 23.02
Landlord hereby notifies Tenant that this Lease may not be cancelled or surrendered, or modified or amended so as to reduce the
rent, shorten the Term or adversely affect in any other respect to any material extent the rights of Landlord hereunder and that
Landlord may not accept prepayments of any installments of rent except for prepayments in the nature of security for the performance
of Tenant's obligations hereunder, without the consent of the Superior Lessor and the Superior Mortgagee in each instance, except
that said consent shall not be required for the institution or prosecution of any action or proceedings against Tenant by reason
of a default on the part of Tenant under the terms of this Lease.

 

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Section 23.03
If, at any time prior to the termination of this Lease, the Superior Lessor or the Superior Mortgagee or any person, or the Superior
Lessor's or Superior Mortgagee's or such person's successors or assigns (the Superior Lessor, Superior Mortgagee and any such person
or successor or assign being herein collectively referred to as "Successor Landlord") shall succeed to the rights of
Landlord under this Lease through possession or foreclosure or delivery of a new lease or deed or otherwise, Tenant agrees, at
the election and upon request of any such Successor Landlord, to fully and completely attorn, from time to time, to and recognize
any such Successor Landlord, as Tenant's landlord under this Lease upon the then executory terms of this Lease; provided such Successor
Landlord shall agree in writing to accept Tenant's attornment. The foregoing provision of this Section shall inure to the benefit
of any such Successor Landlord, shall apply notwithstanding that, as a matter of law, this Lease may terminate upon the termination
of the Superior Lease, shall be self- operative upon any such demand, and no further instrument shall be required to give effect
to said provisions. Tenant, however, upon demand of any such Successor Landlord agrees to execute, from time to time, instruments
to evidence and confirm the foregoing provisions of this Section satisfactory to any such Successor Landlord, acknowledging such
attornment and setting forth the terms and conditions of its tenancy and Tenant hereby constitutes and appoints Landlord attorney-in-fact
for Tenant to execute any such instrument for and on behalf of Tenant, such appointment being coupled with an interest. Upon such
attornment this Lease shall continue in full force and effect as a direct lease between such Successor Landlord and Tenant upon
all of the then executory terms of this Lease except that such Successor Landlord shall not be (a) liable for any previous act
or omission or negligence of Landlord under this Lease; (b) subject to any counterclaim, defense or offset, not expressly provided
for in this Lease and asserted with reasonable promptness, which theretofore shall have accrued to Tenant against Landlord; (c)
obligated to perform any Work; (d) bound by any previous modification or amendment of this Lease or by any previous prepayment
of more than one month's rent, unless such modification or prepayment shall have been approved in writing by the Superior Lessor
or the Superior Mortgagee through or by reason of which the Successor Landlord shall have succeeded to the rights of Landlord under
this Lease; (e) obligated to repair the Premises or the Building or any part thereof, in the event of total or substantial total
damage beyond such repair as can reasonably be accomplished from the net proceeds of insurance actually made available to Successor
Landlord; or (f) obligated to repair the Premises or the Building or any part thereof, in the event of partial condemnation beyond
such repair as can reasonably be accomplished from the net proceeds of any award actually made available to Successor Landlord,
as consequential damages allocable to the part of the Premises or the Building not taken. Nothing contained in this Section shall
be construed to impair any right otherwise exercisable by any such owner, holder or lessee.

 

Section 23.04
If any act or omission by Landlord would give Tenant the right, immediately or after lapse of time, to cancel or terminate this
Lease or to claim a partial or total eviction, Tenant will not exercise any such right until (a) it has given written notice of
such act or omission to each Superior Mortgagee and each Superior Lessor, whose name and address shall have previously been furnished
to Tenant, by delivering notice of such act or omission addressed to such party at its last address so furnished and (b) a reasonable
period for remedying such act or omission shall have elapsed following such giving of notice and following the time when such Superior
Mortgagee or Superior Lessor shall have become entitled under such Superior Mortgage or Superior Lease, as the case may be, to
remedy the same (which shall in no event be less than the period to which Landlord would be entitled under this Lease to effect
such remedy) provided such Superior Mortgagee or Superior Lessor shall, with reasonable diligence, give Tenant notice of intention
to, and commence and continue to, remedy such act or omission or to cause the same to be remedied.

 

ARTICLE 24

 

Access, Changes In Building Facilities

 

Section 24.01 
Nothing herein contained shall be construed as a letting by Landlord to Tenant of (a) the faces of exterior walls, (b) the space
above the hung ceiling of the Premises, and below the underside of the floor slab of any higher floor, (c) the space below the
underside of the Premises, (d) the land below the sub-base of or air rights above, the Premises or the Building, (e) the roof,
or (f) the common areas and facilities of the Building. All parts (except surfaces facing the interior of the Premises ) of all
walls, windows and doors bounding the Premises, (including exterior Building walls, core corridor walls and doors and any core
corridor entrance) any space in or adjacent to the Premises used for shafts, stacks, pipes, conduits, fan rooms, ducts, electric
or other utilities, sinks or other Building facilities, and the use thereof, as well as access thereto through the Premises for
the purpose of operation, maintenance, decoration and repair, are reserved to Landlord.

 

Section 24.02
Tenant shall permit Landlord to install, use, replace and maintain pipes, ducts and conduits within the demising walls, bearing
columns and ceilings of the Premises, provided that Landlord shall not unreasonably interfere with Tenant's use of the Premises
or the conduct of Tenant's business.

 

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Section 24.03
Landlord or Landlord's agent shall have the right, upon request upon reasonable advance notice (except in emergency under clause
(ii) hereof) to enter and/or pass through the Premises or any part thereof, at reasonable times during reasonable hours, in the
presence of a representative of Tenant (i) to examine the Premises and to show them to the fee owners, lessors of superior leases,
holders of superior mortgages, or prospective purchasers, mortgagees or lessees of the Building as an entirety, and (ii) for the
purpose of making such repairs or changes in or to the Premises or in or to its facilities, as may be provided for by this Lease
or as may be mutually agreed upon by the parties or as Landlord may be required to make by law or in order to repair and maintain
said structure or its fixtures or facilities. Such work shall be done in a first-class manner and so as not to unreasonably interfere
with or impair Tenant's decorations, layout or use of the demised premises or to diminish the area of the demised premises (other
than a de minimus amount) or reduce the ceiling height of the demised premises (other than a de minimus amount). Any such work
shall be performed during such hours and in such a manner as to minimize interference with the conduct of Tenant's business and
to safeguard Tenant's property; provided, however, that Landlord shall have no obligation to employ contractors or labor at so-called
overtime or other premium pay rates. Following the completion of any of the foregoing work, Landlord shall promptly repair and
restore the demised premises to substantially the same condition existing prior to the performance of such work. Landlord shall
be allowed to take all materials into and upon the Premises that may be required for such repairs, changes, repainting or maintenance,
without liability to Tenant, but Landlord shall not unreasonably interfere with Tenant's use of the Premises or the conduct of
Tenant’s business, in which case Landlord shall be liable for the reasonable cost of repairing any damage occasioned thereby.
Landlord shall also have the right to enter on and/or pass through the Premises, or any part thereof, at such times as such entry
shall be required by circumstances of emergency affecting the Premises or said structure, in which case Landlord shall be liable
for the reasonable cost of repairing any damage occasioned thereby.

 

Section 24.04
During the period of eighteen (18) months prior to the Expiration Date Landlord may exhibit the Premises to prospective tenants,
provided that Landlord shall not unreasonably interfere with Tenant’s use of the Premises.

 

Section 24.05
Landlord reserves the right, at any time, without incurring any liability to Tenant therefor, to make such changes in or to the
Building and the fixtures and equipment thereof, as well as in or to the street entrances, halls, passages, elevators, escalators,
and stairways thereof, as it may deem necessary or desirable, provided that Landlord shall not unreasonably interfere with Tenant’s
use of the Premises.

 

ARTICLE 25

 

Inability to Perform

 

Section 25.01
This Lease and the obligations of Tenant to pay rent and perform all of the terms of this Lease on the part of Tenant to be performed
shall in no way be affected because Landlord is unable or delayed in fulfilling any of its obligations under this Lease or by reason
of Force Majeure, provided that Landlord provides notice to Tenant of the delay and reason therefore that is beyond Landlord’s
reasonable control, and continues to provide Tenant with periodic updates. Landlord shall in each instance exercise reasonable
diligence to effect performance when and as soon as possible, without unreasonable further delay. However, Landlord shall be under
no obligation to employ overtime labor.

 

ARTICLE 26

 

Legal Proceedings; Waiver of Counterclaims
and Jury Trial

 

Section 26.01
In the event Landlord commences any summary proceeding or action for non-payment of rent, Tenant covenants and agrees that it will
not interpose, by consolidation of actions or otherwise, any counterclaim or other claim seeking affirmative relief of whatsoever
nature or description in any such proceeding, except for claims inter-related to the claims in the main litigation or mandatory
counterclaims.. To the extent permitted by applicable law, Landlord and Tenant hereby waive trial by jury in any action or proceeding,
and with respect to any claim asserted in any such action or proceeding, brought by either of the parties against the other on
any matter whatsoever arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, Tenant's
use or occupancy of the Premises, any claim of injury or damage, or any emergency or other statutory remedy with respect thereto.
Tenant hereby represents to Landlord that it is not entitled, directly or indirectly, to diplomatic or sovereign immunity and Tenant
agrees that in all disputes arising, directly or indirectly out of this Lease, Tenant shall be subject to service of process in,
and the jurisdiction of the courts of, the State of New York. The provisions of this Article shall survive the Expiration Date
or sooner termination of this Lease.

 

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ARTICLE 27

 

No Other Waiver

 

Section 27.01 
The failure of either party to insist in any instance upon the strict performance of any term of this Lease, or to exercise any
right herein contained, shall not be construed as a waiver or relinquishment for the future of the performance of such obligation
of this Lease or of the right to exercise any such right, but the same shall continue and remain in full force and effect with
respect to any subsequent breach, act or omission.

 

Section 27.02
The following specific provisions of this Section shall not limit the generality of the provisions of this Article:

 

  (a) No agreement to
accept a surrender of all or any part of the Premises or this Lease shall be valid unless in writing and signed by Landlord. No
delivery of keys shall operate as a termination of this Lease or a surrender of the Premises or this Lease. Without limiting the
generality of the preceding sentence, if, subject to the provisions of Article 22, Tenant shall at any time request Landlord to
sublet the Premises for Tenant's account, Landlord or Landlord's agent is authorized to receive said keys for such purpose without
releasing Tenant from any of its obligations under this Lease, and Tenant hereby releases Landlord from any liability for loss
or damage to any of Tenant's Property in connection with such subletting.

 

  (b) The receipt or acceptance
by Landlord of rent with knowledge of breach by Tenant of any term of this Lease shall not be deemed a waiver of such breach.

 

  (c) No payment by Tenant
or receipt by Landlord of a lesser amount than the correct rent shall be deemed to be other than a payment on account, nor shall
any endorsement or statement on any check or any accompanying letter be deemed to effect or evidence an accord and satisfaction,
and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance or pursue any other
right of Landlord.

 

  (d) Neither any option
granted to Tenant in this Lease or in any collateral instrument to renew or extend the Term, nor the exercise of any such option
by Tenant, shall prevent Landlord from exercising any option or right granted or reserved to Landlord in this Lease or in any collateral
instrument or that Landlord may otherwise have, to terminate this Lease or any renewal or extended term. Any termination of this
Lease shall serve to terminate any such renewal or extension, whether or not Tenant shall have exercised any option to renew or
extend the Term. Any such option or right on the part of Landlord to terminate this Lease shall continue during any extension or
renewal of the Term. No option granted to Tenant to renew or extend the Term shall be deemed to give Tenant any further option
to renew or extend the Term.

 

  (e) No waiver by Landlord
in favor of any other tenant or occupant of the Building shall constitute a waiver in favor of the Tenant named herein.

 

ARTICLE 28

 

Arbitration

 

Section 28.01
Either party may request arbitration of any matter in dispute wherein arbitration is expressly provided in this lease as the appropriate
remedy. The party requesting arbitration shall do so by giving notice to that effect to the other party, and both parties shall
promptly thereafter jointly apply to the American Arbitration Association (or any organization successor thereto) in the City and
County of New York, Borough of Manhattan, for the appointment of a single arbitrator.

 

Section 28.02
The arbitration shall be conducted in accordance with the then prevailing rules of the American Arbitration Association (or any
organization successor thereto) in the City and County of New York, Borough of Manhattan. In rendering such decision and award,
the arbitrator shall not add to, subtract from or otherwise modify the provisions of this Lease.

 

Section 28.03
If for any reason whatsoever a written decision and award of the arbitrator shall not be rendered within ninety (90) days after
the appointment of such arbitrator, then at any time thereafter before such decision and award shall have been rendered either
party may apply to the Supreme Court of the State of New York or to any other court having jurisdiction and exercising the functions
similar to those now exercised by such court, by action, proceeding or otherwise (but not by a new arbitration proceeding) as may
be proper to determine the question in dispute consistently with the provisions of this Lease.

 

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Section 28.04
All the expenses of the arbitration shall be borne by the parties equally.

 

ARTICLE 29

 

Quiet Enjoyment

 

Section 29.01
If, and so long as, Tenant pays the rent and keeps, observes and performs each and every term of this Lease on the part of Tenant,
to be kept, observed and performed, Tenant shall peaceably and quietly enjoy the Premises throughout the Term without hindrance
by Landlord or any person lawfully claiming through or under Landlord, subject to the terms of this Lease and of the Superior Lease
and the Superior Mortgage.

 

This covenant shall be construed as a covenant
running with the Land and shall not be construed as a personal covenant or obligation of Landlord, except to the extent of Landlord's
interest in this lease and then subject to the terms of Section 43.02.

 

ARTICLE 30

 

Rules and Regulations

 

Section 30.01
Tenant and its employees, agents, invitees and licensees shall faithfully observe and strictly comply with, and shall not permit
violation of, the Rules and Regulations annexed hereto as Exhibit E, and such changes therein and additions thereto as Landlord
hereafter may make and communicate to Tenant ("Rules and Regulations"). Tenant's right to dispute the reasonableness
of any changes in the Rules and Regulations and additional Rules and Regulations shall be deemed waived unless asserted to Landlord
within 30 days after Landlord shall have given Tenant notice of the adoption of any such additional Rules and Regulations. In case
of any conflict or inconsistency between the provisions of this Lease and any Rules and Regulations, the provisions of this Lease
shall control. Landlord shall have no duty or obligation to enforce any Rule or Regulation, or any term, covenant or condition
of any lease, against any other tenant, and Landlord's failure or refusal to enforce any Rule or Regulation, or any term, covenant
or condition of any other lease against any other tenant shall be without liability of Landlord to Tenant. Landlord shall not discriminate
against Tenant in the enforcement of the Rules and Regulations, nor shall Tenant be required to comply with any Rules and Regulations
which would prevent Tenant's permitted use hereunder of the Premises.

 

Section 30.02
Notwithstanding anything to the contrary in any of the Rules and Regulations, whenever Landlord shall claim by notice to Tenant
that Tenant is violating any of the provisions of the Rules and Regulations and Tenant shall in good faith dispute such claim to
Landlord within 10 days after service of Landlord's notice of the violation, the dispute shall be determined by arbitration pursuant
to Article 28.

 

ARTICLE 31

 

Building Name

 

Section 31.01
The Building may be designated and known by any name or address Landlord may choose and such designated name or address may be
changed from time to time in Landlord's sole discretion. Tenant agrees not to refer to the Building by any name or address other
than as designated by Landlord. The Building may be named after any person, firm or otherwise, whether or not such name is, or
resembles, the name of a tenant of the Building. In no event shall Tenant use, in connection with its business or otherwise, any
photographic or other type of representation of the Building. In the event the Building is named after any person, firm or otherwise.
Tenant, in connection with its business or otherwise, shall not refer to the Building by such name but shall only use the street
address of the Building.

 

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ARTICLE 32

 

Shoring; No Dedication

 

Section 32.01
If an excavation or other substructure work shall be undertaken or authorized upon the land adjacent to the Building or in the
vaults beneath the Building or in subsurface space adjacent to said vaults, Tenant, without liability on the part of Landlord therefor,
shall upon reasonable prior notice by Landlord to Tenant (except in the event of an emergency) afford Landlord or the person causing
such excavation or other substructure work, license to enter upon the Premises for the purpose of doing such work as Landlord or
such person shall deem necessary to protect any of the walls or structures of the Building or surrounding land from injury or damage
and to support the same by proper foundations, pinning and/or underpinning, and, except in case of emergency, Landlord shall endeavor
to have such entry accomplished during reasonable hours in the presence of a representative of Tenant, who shall be designated
by Tenant promptly upon Landlord's request. Such license to enter shall be without liability of Landlord to Tenant.

 

Section 32.02
Landlord shall have the right to erect any gate, chain or other obstruction or to close off any portion of the Real Property to
the public at any time to the extent necessary to prevent a dedication thereof for public use.

 

ARTICLE 33

 

Notice of Accidents

 

Section 33.01
Tenant shall give notice to Landlord, promptly after Tenant learns thereof, of any accident, emergency, occurrence for which Landlord
might be liable, fire or other casualty and all damages to or defects in the Premises, the Building or the Building Equipment for
the repair of which Landlord might be responsible or which constitutes Landlord's property. Such notice shall be given in accordance
with Article 39.

 

ARTICLE 34

 

Vaults

 

Section 34.01 
No vaults, vault space or other space not within the property line of the Building is leased hereunder notwithstanding anything
contained in or indicated on any sketch, blueprint or plan, or elsewhere in this Lease to the contrary. Landlord makes no representation
as to the location of the property line of the Building. All vaults and vault space and all other space not within the property
line of the Building, which Tenant may be permitted to use and/or occupy, are to be used and/or occupied under a license revocable
by Landlord on 10 days' notice to Tenant, and if any such license shall be revoked by Landlord, or if the amount of any such vaults,
vault space or other space shall be diminished or required by any federal, state or municipal authority or public utility, Landlord
shall be without liability to Tenant. Any fee, tax or charge imposed by any governmental authority for any such vault, vault space
or other space, to the extent actually used by Tenant, shall be paid by Tenant, as Additional Rent, within five (5) days after
Landlord's demand therefor.

 

ARTICLE 35

 

Brokerage

 

Section 35.01
Tenant represents that in the negotiation of this Lease it dealt with no brokers other than JRT Realty Group, Inc. and Winslow
& Company LLC and that as far as Tenant is aware said brokers are the sole brokers who negotiated this Lease. Landlord agrees
to pay said brokers a commission in accordance with a separate agreement. Tenant hereby indemnifies Landlord against liability
arising out of any inaccuracy or alleged inaccuracy of the above representation. Landlord shall have no liability for brokerage
commissions arising out of an assignment or a sublease by Tenant and Tenant shall and does hereby indemnify Landlord and hold it
harmless from any and all liability for brokerage commissions arising out of any such assignment or sublease. The covenants, representations
and agreements of Tenant set forth in this Section 35.01 shall survive the termination of this Lease.

 

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ARTICLE 36

 

Security Deposit

 

Section 36.01 Tenant has deposited
with Landlord the sum of $45,658.66 (if by check subject to collection) or by Letter of Credit as security for the full and punctual
performance by Tenant of all of the terms of this Lease. Landlord shall deposit such security deposit in an interest bearing account
in a financial institution to be selected by Landlord in its sole discretion. Landlord shall be entitled to receive as an administrative
expense, a sum equal to one (1%) percent per annum (but only in the event annual interest on such account is in excess of one (1%)
percent per annum) upon such security deposit, the interest to be credited to Tenant annually. In the event Tenant defaults in
the performance of any of the terms of this Lease, including the payment of rent, Landlord may after written notice to Tenant,
use, apply or retain the whole or any part of the security so deposited or may notify the Issuing Bank (as defined in Section 36.02)
and thereupon receive all or a portion of the monies represented by said Letter of Credit, and may use, apply or retain the whole
or any part of such proceeds, as the case may be, to the extent required for the payment of any rent or for any sum which Landlord
may expend or may be required to expend by reason of Tenant's default in respect of any of the terms of this Lease, including any
damages or deficiency in the re-letting of the Premises, whether accruing before or after summary proceedings or other re-entry
by Landlord. In the case of every such use, application or retention, Tenant shall, on demand, pay to Landlord the sum so used,
applied or retained which shall be added to the security deposit so that the same shall be replenished to its former amount. as
security for the full and punctual performance by Tenant of all of the terms of this Lease. If Tenant shall fully and punctually
comply with all of the terms of this Lease, the cash security, or the Letter of Credit, as the case may be, together with any accrued
interest thereon, less any administrative expenses to which Landlord is entitled pursuant to this Article 36, shall be promptly
returned to Tenant after the termination of this Lease and delivery of exclusive possession of the Premises to Landlord. In the
event of a sale or lease of the building, Landlord shall have the right to transfer the cash security, or the Letter of Credit,
as the case may be, to the vendee or lessee and Landlord shall ipso facto be released by Tenant from all liability accruing from
and after the date of such transfer for the return of such security; and Tenant agrees to look solely to the new landlord for the
return of said security; and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the security
to a new landlord. Tenant shall not assign or encumber or attempt to assign or encumber the monies deposited herein as security
and neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance or attempted assignment or
encumbrance. Tenant shall contemporaneously with its execution of this Lease, deliver to Landlord a duly executed IRS form W-9
setting forth Tenant’s social security number or employer identification number, as the case may be (or such other forms
as may from time to time be promulgated by the Internal Revenue Service for such purpose).

 

Section 36.02
In lieu of a cash deposit, Tenant may deliver to Landlord a clean and irrevocable Letter of Credit issued by and drawn upon any
commercial bank which is a member of the New York Clearing House Association with offices for banking purposes in the City of New
York (the “Issuing Bank”), which is satisfactory to Landlord and which satisfies both the Minimum Rating Agency
Threshold (as hereinafter defined) and the Minimum Capital Threshold (as hereinafter defined). The “Minimum Rating Agency
Threshold” shall mean that the Issuing Bank has outstanding unsecured, uninsured and unguaranteed senior long-term indebtedness
that is then rated (without regard to qualification of such rating by symbols such as “+” or “-” or numerical
notation) “Baa” or better by Moody’s Investors Service, Inc. and/or “BBB” or better by Standard &
Poor’s Rating Services, or a comparable rating by a comparable national rating agency designated by Landlord in its discretion.
The “Minimum Capital Threshold” shall mean that the Issuing Bank has combined capital, surplus and undivided
profits of not less than $2,000,000,000.

 

If, at any
time or from time to time, Landlord determines that an Issuing Bank (i) no longer satisfies the Minimum Rating Agency Threshold,
(ii) no longer satisfies the Minimum Capital Threshold, (iii) has been seized or closed by the Federal Reserve Board, the Federal
Deposit Insurance Corporation, the Office of the Comptroller of the Currency, or another governmental or regulatory agency or authority,
(iv) has become insolvent, or (v) is unwilling or unable to honor the Letter of Credit or to perform its obligations to honor a
draw upon the Letter of Credit, then within five (5) days after demand, Tenant shall deliver to Landlord a replacement Letter of
Credit, issued by a replacement Issuing Bank which satisfies the Minimum Rating Agency Threshold and the Minimum Capital Threshold
and is otherwise satisfactory to Landlord in its discretion.

 

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Said Letter of Credit shall have a term
of not less than one year, be in form and content reasonably satisfactory to Landlord and substantially in the form set forth in
Exhibit H, be for the account of Landlord and be in the amount set forth in Sections 36.01. Tenant shall be required to maintain
the Letter of Credit in full force and effect throughout the term of the Lease and the final expiry date for said Letter of Credit
shall be no earlier than six months following the Expiration Date of the Lease. The Letter of Credit shall provide that it shall
be deemed automatically renewed, without amendment, for consecutive periods of one year each thereafter during the term of this
Lease, unless the Issuing Bank sends notice (the “Non-Renewal Notice”) to Landlord by certified mail, return receipt
requested, not less than thirty (30) days next preceding the expiration date of the Letter of Credit that it elects not to have
such Letter of Credit renewed. Landlord shall have the right, upon its receipt of the Non-Renewal Notice, by sight draft to the
Issuing Bank, to receive the monies represented by the existing Letter of Credit and to hold such proceeds pursuant to Article
36 as cash security in accordance with the provisions of Section 36.01 or until a new Letter of Credit meeting the requirements
of this Section 36.02 shall be tendered.

 

ARTICLE 37

 

Window Cleaning

 

Section 37.01 Tenant
will not clean nor require, permit, suffer or allow any window in the Premises to be cleaned from the outside in violation of Section
202 of the Labor Law or any other applicable law or of the Rules of the Board of Standards and Appeals, or of any other Board or
body having or asserting jurisdiction.

 

ARTICLE 38

 

Consents

 

Section 38.01
Wherever it is specifically provided in this Lease that a party's consent is not to be unreasonably withheld, a response to a request
for such consent shall also not be unreasonably delayed. If either Landlord or Tenant considers that the other has unreasonably
withheld or delayed a consent, it shall so notify the other party within 10 days after receipt of notice of denial of the requested
consent or, in case notice of denial is not received, within 20 days after making its request for the consent.

 

Section 38.02
Tenant hereby waives any claim against Landlord which it may have based upon any assertion that Landlord has unreasonably withheld
or unreasonably delayed any such consent, and Tenant agrees that its sole remedy shall be an action or proceeding to enforce any
such provision or for specific performance, injunction or declaratory judgment. In the event of such determination, the requested
consent shall be deemed to have been granted; however, Landlord shall have no liability to Tenant for its refusal or failure to
give such consent. The sole remedy for Landlord's unreasonably withholding or delaying of consent shall be as provided in this
Section.

 

Section 38.03
Notwithstanding anything to the contrary provided in this Lease, in any instance where the consent of the Superior Lessor and/or
the Superior Mortgagee is required Landlord shall not be required to give its consent until and unless the Superior Lessor and/or
the Superior Mortgagee has given its consent.

 

ARTICLE 39

 

Notices

 

Section 39.01
A. Except as otherwise expressly provided in this Lease or pursuant to any Legal Requirement, any bills, statements, notices, demands,
requests, consents or other communications (collectively, "notices") given or required to be given under or in connection
with this Lease or pursuant to any Legal Requirement shall be effective only if in writing and,

 

(a) if to Tenant, then, at the
option of Landlord, (i) sent by registered or certified mail, return receipt requested, postage prepaid, addressed to Tenant's
address as set forth in this Lease if mailed prior to the Commencement Date or at the Building if subsequent to the Commencement
Date, or to such other address as Tenant may designate for such purpose by like notice, or (ii) delivered personally to Tenant,
(b) if to Landlord, sent by registered or certified mail, return receipt requested, postage prepaid, to Landlord's address as set
forth in this Lease, or to such other or further address or addresses as Landlord may designate for such purpose by like notice;
or (c) if to any other person, sent by registered or certified mail, return receipt requested and postage prepaid addressed to
such person's last known principal address or to such other address as such person may designate to Landlord and Tenant as its
address for such purpose by like notice.

 

B. Notices shall be
deemed to have been rendered or given (a) on the date delivered, if delivered to Tenant personally, or (b) on the date mailed,
if mailed as provided in this Section, unless mailed outside of The City of New York, in which case it shall be deemed to have
been rendered or given 3 business days after mailing. Notices given by counsel for either party or by Landlord’s managing
agent, JRT Realty Group, Inc. shall be deemed valid notices if addressed and sent in accordance with the provisions of this Article.

 

    	36

    	 

    

 

ARTICLE 40

 

Definitions; Construction of Terms

 

Section 40.01
For the purposes of this Lease and all agreements supplemental to this Lease:

 

  (a) "Additional
Rent" shall have the meaning given in Section 3.01A.

 

  (b) "after hours"
shall have the meaning given in Section 12.02.

 

  (c) "Basic Construction
of the Building" mean in addition to the structure itself, the mechanical and electrical systems and the distribution thereof
to locations from which each floor can be served, and the elevators, lobby and other common areas, and any other necessary construction,
excepting only any materials or work to finish any portion for occupancy by particular tenants.

 

  (d) "Building"
shall have the meaning given in Section 1.01.

 

  (e) "Building Equipment"
shall mean all machinery, apparatus, equipment, personal property, fixtures and systems, of every kind and nature whatsoever now
or hereafter attached to or used in connection with the operation or maintenance of the Building, including all electrical, heating,
mechanical, sanitary, sprinkler, utility, power, plumbing, cleaning, fire prevention, refrigeration, ventilating, air cooling,
air conditioning, elevator and escalator systems, apparatus and equipment, and any and all renewals and replacements of any thereof;
but excluding, however, (i) Tenant's Property, (ii) property of any other tenant, (iii) property of contractors servicing the Building
and (iv) improvements for water, gas, steam and electricity and other similar equipment owned by any public utility company or
any governmental agency or body.

 

  (f) "business days"
and "business hours" shall have the respective meanings given in Section 12.01.

 

  (g) "Commencement
Date" shall have the meaning given in Section 2.01A.

 

  (h) "Expiration
Date" shall have the meaning given in Section 2.01A.

 

  (i) "Declaration"
shall mean the Declaration, dated July 27, 1981, made by Landlord, recorded in the Office of the Register of the City of New York
on August 20, 1981, as No. 10726 in Reel 579 of conveyances at page 1641. The Declaration requires, among other things, that in
the event the building known as 155 East 48th Street, New York, New York or the building now known as 150 East 49th Street, New
York, New York shall be altered or reconstructed so as to come within a certain distance of the exterior wall openings on the west
lot line of the Land, such exterior wall openings will be closed, at Landlord's expense, with construction meeting the fire resistance
rating requirement for exterior wall construction.

 

  (j) "Fee Mortgage"
shall mean, collectively, any mortgage which does not constitute a Superior Mortgage and which encumbers the Land and all renewals,
modifications, replacements, substitutions, supplements, extensions, spreaders, and consolidations thereof.

 

  (k) "Fee Mortgagee"
shall mean, collectively, all holders at the time of the Fee Mortgage.

 

  (l) "Fixed Rent"
shall have the meaning given in Section 3.01A.

 

  (m) "Fixtures"
shall have the meaning given in Section 10.07.

 

  (n) "Force Majeure"
shall mean any and all causes beyond Landlord's reasonable control, including delays caused by Tenant, other tenants, governmental
restriction, regulation or control, labor dispute, strike, accident, mechanical breakdown, shortages or inability to obtain labor,
fuel, steam, water, electricity or materials, acts of God, enemy action, civil commotion, fire or other casualty.

 

  (o) "Guarantor",
if any, shall mean any person(s) who guarantees any or all of Tenant's obligations under this Lease.

 

    	37

    	 

    

 

  (p) "Improvements"
shall mean improvements made by or on behalf of Tenant or any person claiming through or under Tenant.

 

  (q) "improvements"
shall mean improvements, alterations, additions, substitutions, betterments and decorations.

 

  (r) "Insurance
Requirements" shall mean all requirements of any insurance policy coveting or applicable to all or any part of the Real Property
or the Premises or the use thereof, all requirements of the issuer of any such policy and all orders, rules, regulations, recommendations
and other requirements of the New York Board of Fire Underwriters or the Insurance Service Office or any other body exercising
the same or similar functions and having jurisdiction or cognizance of all or any part of the Real Property or the Premises.

 

  (s) "Interest Rate"
shall mean a rate per annum equal to the lesser of (a) 2% above the prime rate in effect from time to time (but in no event less
than 15% per annum) or (b) the maximum applicable legal rate, if any.

 

  (t) "Land"
shall have the meaning given in Section 1.01.

 

  (u) "Landlord"
shall have the meaning given in Section 43.02.

 

  (v) "Landlord's
Work", if any, shall have the meaning given in Exhibit C.

 

  (w) "Legal Requirements"
shall mean laws, statutes and ordinances (including building codes and zoning regulations and ordinances) and the orders, rules,
regulations, directives and requirements of all federal, state, county, city and borough departments, bureaus, boards, agencies,
offices, commissions and other subdivisions thereof, or of any official thereof, or of any other governmental, public or quasi-public
authority, whether now or hereafter in force, which may be applicable to the Real Property or the Premises or any part thereof
or the sidewalks, curbs or areas adjacent thereto and the Declaration and all requirements, obligations and conditions of all instruments
of record on the date of this Lease.

 

  (x) "Premises"
shall have the meaning given in Section 1.01.

 

  (y) "prime rate"
shall mean the annual rate of interest from time to time publicly announced by JP Morgan Chase Bank, N.A., as its prime lending
rate.

 

  (z) "Real Property"
shall mean the Building and the Land and all easements, air rights, development rights and other appurtenances thereto.

 

  (aa) "Rules and
Regulations" shall have the meaning given in Section 30.01.

 

  (bb) "Superior
Lease" shall have the meaning given in Section 23.01.

 

  (cc) "Superior
Lessor" shall mean, collectively, all lessors at the time of the Superior Lease.

 

  (dd) "Superior
Mortgage" shall have the meaning given in Section 23.01.

 

  (ee) "Superior
Mortgagee" shall mean, collectively, all holders at the time of the Superior Mortgage.

 

  (ff) "Successor
Landlord" shall have the meaning given in Section 23.04.

 

  (gg) "Tenant"
shall have the meaning given in Section 43.03.

 

  (hh) "Tenant's
Property" shall mean all fixtures, Improvements and other property (i) installed at the sole expense of Tenant, (ii) with
respect to which Tenant has not been granted any credit or allowance by Landlord, (iii) which are removable without material damage
to the Premises and (iv) which are not replacements of any property of landlord, whether any such replacement is made at Tenant's
expense or otherwise.

 

  (ii) "Tenant's
Work", if any, shall have the meaning given in Exhibit C.

 

  (jj) "Term"
shall have the meaning given in Section 2.01A.

 

  (kk) "Untenantable"
shall mean the extent to which Tenant is actually unable to use any or all of the Premises in the normal course of its business.

 

    	38

    	 

    

 

  (ll) For the purposes
of this Lease and all agreements supplemental to this Lease, the following additional definitions shall also apply (whether or
not capitalized or in lower case):

 

The terms "include",
"including" and "such as" shall construed as if followed by the phrase "without being limited to".

 

The term "obligations of
this Lease", and words of like import, shall mean the covenants to pay rent and additional rent under this Lease and all of
the other covenants and conditions contained in this Lease. Any provision in this Lease that one party or the other or both shall
do or not do or shall cause or permit or not cause or permit a particular act, condition, or circumstance shall be deemed to mean
that such party so covenants or both parties so covenant, as the case may be.

 

The term "Tenant's obligations
hereunder", and words of like import, and the term "Landlord's obligations hereunder", and words of like import,
shall mean the obligations of this Lease which are to be performed or observed by Tenant, or by Landlord, as the case may be. Reference
to "performance" of either party's obligations under this Lease shall be construed as "performance and observance".

 

Reference to Tenant being or
not being "in default hereunder", or words of like import, shall mean that Tenant is in default after notice to Tenant
and failure to cure in the performance of one or more of Tenant's obligations hereunder, or that Tenant is not in default after
notice to Tenant and failure to cure in the performance of any of Tenant's obligations hereunder, or that a condition of the character
described in Section 17.01 has occurred and continues or has not occurred or does not continue, as the case may be.

 

The term "repair" shall
be deemed to include restoration and replacement as may be necessary to achieve and/or maintain good working order and condition.

 

Reference to "termination
of this Lease" includes expiration or earlier termination of the term of this Lease or cancellation of this Lease pursuant
to any of the provisions of this Lease or to law. Upon a termination of this Lease, the term and estate granted by this Lease shall
end at noon of the date of termination as if such date were the date of expiration of the term of this Lease and neither party
shall have any further obligation or liability to the other after such termination (i) except as shall be expressly provided for
in this Lease, or (ii) except for such obligation as by its nature or under the circumstances can only be, or by the provisions
of this Lease, may be, performed after such termination, and, in any event, unless expressly otherwise provided in this Lease,
any liability for a payment which shall have accrued to or with respect to any period ending at the time of termination shall survive
the termination of this Lease.

 

The term "in full force
and effect" when herein used in reference to this Lease as a condition to the existence or exercise of a right on the part
of Tenant shall be construed in each instance as including the further condition that at the time in question no default on the
part of Tenant exists, and no event has occurred which has continued to exist for such period of time (after the notice, if any,
required by this Lease), as would' entitle Landlord to terminate this Lease or to dispossess Tenant.

 

Section 40.02
A. If any of the provisions of this Lease, or the application thereof to any person or circumstance, shall, to any extent, be invalid
or unenforceable, the remainder of this Lease, or the application of such provision or provisions to persons or circumstances other
than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and every provision of this
Lease shall be valid and enforceable to the fullest extent permitted by law.

 

   B. If any term of this Lease
is found invalid or unenforceable to any extent by a final judgment or award which shall not be subject to change by appeal, then
either party may initiate an arbitration in accordance with the provisions of Article 28. Said arbitrator shall devise a valid
and enforceable substitute term for this Lease which shall as nearly as possible carry out the intention of the parties with respect
to the term of this Lease found invalid or unenforceable. Such substitute term as so devised shall thereupon be deemed a part of
this Lease.

 

Section 40.03
The various terms which are defined in other Articles of this Lease or are defined in Exhibits annexed hereto shall have the meanings
specified in such other Articles and such Exhibits for all purposes of this Lease and all agreements supplemental thereto, unless
the context clearly indicates the contrary.

 

Section 40.04
The Article headings in this Lease and the Table of Contents to this Lease are inserted only as a matter of convenience or reference,
and are not to be given any effect in construing this Lease.

 

    	39

    	 

    

 

ARTICLE 41

 

Estoppel Certificate; Recording

 

Section 41.01
(a) At any time and from time to time upon not less than 10 days' prior notice by Landlord or the Superior Lessor or the Superior
Mortgagee to Tenant, Tenant shall, without charge, execute, acknowledge and deliver (1) a statement in writing in the form annexed
hereto as Exhibit F addressed to such party as Landlord, or the Superior Lessor or e Superior Mortgagee, as the case may be, may
designate (with such additions or changes as may be reasonably requested) or in form satisfactory to Landlord, or the Superior
Lessor or the Superior Mortgagee, as the case may be, certifying all or any of the following: (i) that this Lease is unmodified
and in full force and effect (or if there have been modifications, that this Lease is in full force and effect as modified and
stating the modifications), (ii) whether the Term has commenced and Fixed Rent and Additional Rent have become payable hereunder
and, if so, the dates to which they have been paid, (iii) whether or not, to the best knowledge of the signer of such certificate,
Landlord is in default in performance of any of the terms of this Lease and, if so, specifying each such default of which the
signer may have knowledge, (iv) whether Tenant has accepted possession of the Premises, (v) whether Tenant has made any claim
against Landlord under this Lease and, if so, the nature thereof and the dollar amount, if any, of such claim, (vi) whether there
exist any offsets or defenses against enforcement of any of the terms of this Lease upon the part of Tenant to be performed, and,
if so, specifying the same, (vii) either that Tenant does not know of any default in the performance of any provision of this
Lease or specifying any default of which Tenant may have knowledge and stating what action Tenant is taking or proposes to take
with respect thereto, (viii) that, to the knowledge of Tenant, there are no proceedings pending or threatened against Tenant or
Guarantor before or by any court or administrative agency which, if adversely decided, would materially and adversely affect the
financial condition or operations of Tenant or Guarantor or, if any such proceedings are pending or threatened to the knowledge
of Tenant, specifying and describing the same and (ix) such further information with respect to the Lease or the Premises as Landlord
may reasonably request or the Superior Mortgagee or Superior Lessor may require, and/or (2) "Tenant Acceptance Letter"
in the form annexed hereto as Exhibit G, it being intended that any such statement delivered pursuant hereto may be relied upon
by any prospective purchaser of the Real Property or any part thereof or of the interest of Landlord in any part thereof, by any
mortgagee or prospective mortgagee thereof, by any lessor or prospective lessor thereof, by any lessee or prospective lessee thereof,
or by any prospective assignee of any mortgage thereof.

 

   (b) The failure of Tenant
to execute, acknowledge and deliver to Landlord a statement in accordance with the provisions of this Section within said 10 day
period shall constitute an acknowledgment by Tenant, which may be relied on by any person who would be entitled to rely upon any
such statement, that such statement as submitted by Landlord is true and correct.

 

Section 41.02
Upon written request of Landlord, but not more frequently than once in any twelve (12) month period, Tenant shall promptly furnish
Landlord with the most current then prepared and available financial statement, certified by Tenant or an independent auditor to
be true and correct, reflecting Tenant’s then current financial condition.

Upon request of Landlord, Tenant will furnish
to Landlord:

 

Section 41.03
Tenant agrees not to record this Lease (or a memorandum hereof) or any other document related hereto.

 

ARTICLE 42

 

Intentionally Deleted

 

ARTICLE 43

 

Parties Bound

 

Section 43.01
The terms of this Lease shall bind and benefit the successors and assigns of the parties with the same effect as if mentioned in
each instance where a party is named or referred to, except that no violation of the provisions of Article 22 shall operate to
vest any right in any successor or assignee of Tenant and that the provisions of this Article shall not be construed as modifying
the conditions of limitation contained in Article 17.

 

    	40

    	 

    

 

Section 43.02
A. The term "Landlord" shall mean only the owner at that time in question of the present landlord's interest in the Building
and in the event of a sale or transfer of the Building (by operation of law or otherwise), or in the event of the making of a lease
of all or substantially all of the Building, or in the event of a sale or transfer (by operation of law or otherwise) of the leasehold
estate under any such lease, the grantor, transferor or lessor, as the case may be, shall be and hereby is (to the extent of the
interest or portion of the Building or leasehold estate sold, transferred or leased) automatically and entirely released and discharged,
from and after the date of such sale, transfer or leasing, of all liability in respect of the performance of any of the terms of
this Lease on the part of Landlord thereafter to be performed; provided that the purchaser, transferee or lessee (collectively,
"Transferee") shall be deemed to have assumed and agreed to perform, subject to the limitations of this Section and Section
23.04 (and without further agreement between the then parties hereto, or among such parties and the Transferee) and only during
and in respect of the Transferee's period of ownership of the Landlord's interest under this Lease, all of the terms of this Lease
on the part of Landlord to be performed during such period of ownership, which terms shall be deemed to "run with the land"
it being intended that Landlord's obligations hereunder shall, as limited by this Article, be binding on Landlord, its successors
and assigns, only during and in respect of their respective successive periods of ownership.

 

   B. No recourse shall
be had on any of Landlord's obligations hereunder or for any claim based thereon or otherwise in respect thereof against any incorporator,
subscriber to the capital stock, shareholder, officer or director, past, present or future, of any corporation or any partner or
joint venturer which shall be Landlord hereunder or included in the term "Landlord" or of any successor of any such corporation,
or against any principal, disclosed or undisclosed, or any affiliate of any party which shall be Landlord or included in the term
"Landlord," whether directly or through Landlord or through any receiver, assignee, trustee in bankruptcy or through
any other person, firm or corporation, whether by virtue of any constitution, statute or rule of law or by enforcement of any assessment
or penalty or otherwise, all such liability being expressly waived and released by Tenant.

 

   C. Tenant shall look
solely to Landlord's estate and interest in the Building for the satisfaction of any right of Tenant for the collection of a judgment
or other judicial process or arbitration award requiring the payment of money by Landlord and no other property or assets of Landlord,
Landlord's agents, incorporators, shareholders, officers, directors, partners, principals (disclosed or undisclosed) or affiliates
shall be subject to levy, lien, execution, attachment, or other enforcement procedure for the satisfaction of Tenant's rights and
remedies under or with respect to this Lease, the relationship of Landlord and Tenant hereunder or under law, or Tenant's use and
occupancy of the premises or any other liability of Landlord to Tenant.

 

Section 43.03
The term "Tenant" shall mean the Tenant herein named or any assignee or other successor in interest (immediate or remote)
of the Tenant herein named, which at the time in question is the owner of the Tenant's estate and interest granted by this Lease;
but the foregoing provisions of this subsection shall not be construed to permit any assignment of this Lease or subletting of
the Premises or to relieve the Tenant herein named or any assignee or other successor in interest (whether immediate or remote)
of the Tenant herein named from the full and prompt performance of Tenant's obligations hereunder.

 

Section 43.04
Nothing contained in this Lease shall be deemed to confer upon any tenant, or anyone claiming under or through any tenant, any
right to insist upon, or to enforce against Landlord or Tenant, the performance of Tenant's obligations hereunder.

 

Section 43.05
The submission by Landlord to Tenant of this Lease in draft form shall be deemed submission solely for Tenant's consideration and
not for acceptance and execution. Such submission shall have no binding force and effect, shall not constitute an option for the
leasing of the Premises, and shall not confer any rights or impose any obligations upon either party. The submission by Landlord
of this Lease for execution by Tenant and the actual execution and delivery thereof by Tenant to Landlord shall similarly have
no binding force and effect on Landlord unless and until Landlord shall have executed this Lease and a counterpart thereof shall
have been delivered to Tenant.

 

ARTICLE 44

 

Miscellaneous

 

Section 44.01
This Lease contains the entire agreement between the parties and all prior negotiations and agreements are merged into this Lease.
This Lease may not be changed, modified, abandoned or discharged, in whole or in part, nor any of its provisions waived except
by a written instrument which (a) expressly refers to this Lease, (b) is executed by the party against whom enforcement of the
change, modification, abandonment, discharge or waiver is sought and (c) is permissible under the Superior Mortgage and the Superior
Lease.

 

    	41

    	 

    

 

Section 44.02
Tenant expressly acknowledges that neither Landlord nor Landlord's agents has made or is making, and Tenant, in executing and delivering
this Lease, is not relying upon, any warranties, representations, promises or statements, except to the extent that the same are
expressly set forth in this Lease, and no rights, easements or licenses are or shall be acquired by Tenant by implication or otherwise
unless expressly set forth in this Lease.

 

Section 44.03
Any apportionment or prorations of rent to be made under this Lease shall be computed on the basis of a 360 day year, with 12 months
of 30 days each.

 

Section 44.04
The laws of the State of New York applicable to contracts made and to be performed wholly within the State of New York shall govern
and control the validity, interpretation, performance and enforcement of this Lease.

 

Section 44.05
If Tenant is a corporation, each person executing this Lease on behalf of Tenant hereby covenants, represents and warrants that
Tenant is a duly incorporated or duly qualified (if foreign) corporation and is authorized to do business in the State of New York
(a copy of evidence thereof to be supplied to Landlord upon request); and that each person executing this Lease on behalf of Tenant
is an officer of Tenant and that he is duly authorized to execute, acknowledge and deliver this Lease to Landlord (a copy of a
resolution to that effect to be supplied to Landlord upon request).

 

Section 44.06 A. If Tenant
is a partnership (or is comprised of 2 or more persons. individually, or as joint venturers or as copartners of a partnership)
or if Tenant's interest in this Lease shall be assigned to a partnership (or to 2 or more persons, individually, or as joint venturers
or as copartners of a partnership) pursuant to Article 22 (any such partnership and such persons are referred to in this Article
as "Partnership Tenant"), the following provisions of this Section shall apply to such Partnership Tenant: (a) the liability
of each of the parties comprising Partnership Tenant shall be joint and several, and (b) each of the parties comprising Partnership
Tenant hereby consents in advance to, and agrees to be bound by, any modifications, termination, discharge or surrender of this
Lease which may hereafter be made and by any notices, demands requests or other communications which may hereafter be given, by
Partnership Tenant or by any of the parties comprising Partnership Tenant, and (c) any bills, statements, notices, demands, requests
or other communications given or rendered to Partnership Tenant or to any of the parties comprising Partnership Tenant shall be
deemed given or rendered to Partnership Tenant and to all such parties and shall be binding upon Partnership Tenant and all parties,
and (d) if Partnership Tenant shall admit new partners, all such new partners shall, by their admission to Partnership Tenant,
be deemed to have assumed performance of all of the terms, covenants and conditions of this Lease on Tenant's part to be observed
and performed, and (e) Partnership Tenant shall give prompt notice to Landlord of the admission of any such new partners, and upon
demand of Landlord, shall cause each such new partner to execute and deliver to Landlord an agreement in form satisfactory to Landlord,
wherein each such new Partner shall assume performance of all of the terms, covenants and conditions of this Lease on Tenant's
part to be observed and performed (but neither Landlord's failure to request any such agreement nor the failure of any such new
partner to execute or deliver any such agreement nor the failure of any such new partner to execute or deliver any such agreement
to Landlord shall vitiate the provisions of Subdivision (d) of this Section 44.06 A).

 

Section 44.07
All Exhibits to this Lease and any and all Rider provisions attached to this Lease are hereby incorporated into this Lease. If
any provision contained in any Rider hereto is inconsistent or in conflict with any printed provision of this Lease, the provision
contained in such Rider shall supersede said printed provision and shall control.

 

Article 45

 

Anti-Terrorism Requirements

 

Section 45.01
Tenant represents and warrants that (i) neither Tenant nor any person, group or entity who owns any direct or indirect beneficial
interest in Tenant or any of them, is listed on the list maintained by the United States Department of the Treasury, Office of
Foreign Assets Control (commonly known as the OFAC List) or otherwise qualifies as a terrorist, Specially Designated National and
Blocked Person or a person with whom business by a United States citizen or resident is prohibited (each a “Prohibited Person”);
(ii) neither Tenant nor any person, group or entity who owns any direct or indirect beneficial interest in Tenant or any of them
is in violation of any anti-money laundering or anti-terrorism statute, including, without limitation, the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, U.S. Public Law 107-56 (commonly
known as the USA PATRIOT Act), and the related regulations issued thereunder, including temporary regulations, and Executive Orders
(including, without limitation, Executive Order 13224) issued in connection therewith, all as amended from time to time; and (iii)
neither Tenant nor any person, group or entity who owns any direct or indirect interest in Tenant is acting on behalf of a Prohibited
Person. Tenant shall indemnify and hold Landlord harmless from and against all claims, damages, losses, risks, liabilities and
costs (including fines, penalties and legal costs) arising from any misrepresentation in this paragraph or Landlord’s reliance
thereon. Tenant’s obligations under this paragraph shall survive the expiration or sooner termination of the term of this
lease.

 

    	42

    	 

    

 

    	43Exhibit 10.1

*** text omitted
and filed sperately

confidential treatment
requested

under 17 c.f.r.
§§ 200.80(b)(4) and 240.24b-2 

 

LICENSE
Agreement

 

 

This License
Agreement (the “Agreement” or the “License Agreement”) is effective as of July 12, 2012 (the “Effective
Date”) by and between RegeneRx Biopharmaceuticals, Inc., a company organized and existing under the laws of the state
of Delaware, with offices at 15245 Shady Grove Road, Suite 470, Rockville, Maryland, U.S.A. (hereinafter “Licensor”),
and Lee’s Pharmaceutical (HK) Limited, a Hong Kong registered company with its principal place of business at Unit 110-111,
Bioinformatics Centre, No. 2 Science Park West Avenue, Hong Kong Science Park, Shatin, Hong Kong (hereinafter “Licensee”),
each a “Party” and, collectively, the “Parties.”

 

Recitals

 

WHEREAS,
Licensor is engaged in the business of developing biopharmaceutical products, including the clinical development of drug candidates
referred to as RGN-137, RGN-259 and RGN-352, which utilize Tβ4 (as defined herein) as the biologically active ingredient;

 

WHEREAS,
Licensee is engaged in the business of developing, marketing, manufacturing, and distributing biopharmaceutical products including
in China, Hong Kong, and Macau;

 

WHEREAS,
Licensee wishes to obtain the rights to develop, manufacture and commercialize the Licensed Product in the Field (as each such
term is defined herein) in China, Hong Kong, Macau and Taiwan and Licensor wishes to grant such rights, in each case upon the
terms and conditions set forth herein; and

 

WHEREAS,
Licensor and Licensee wish to specify certain terms relating to the manufacture of the Licensed Product by Licensee or relating
to the supply of the Licensed Product and/or the API (as defined herein) in the event that respectively Licensor elects to supply
commercial quantities of the Licensed Product and/or the API to Licensee and Licensee elects to buy commercial quantities of the
Licensed Product and/or the API.

 

NOW,
THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties agree as follows:

 

 

Section
1. Definitions

 

As used in this
Agreement, the following capitalized terms shall have the following meanings:

 

“Affiliate”
shall mean, with respect to a Person, any Person that Controls, is Controlled by or is under common Control with such first Person.
For purposes of this definition only, “Control” means (a) to possess, directly or indirectly, the power to
direct the management or policies of a Person, whether through ownership of voting securities, by contract relating to voting
rights or corporate governance, or (b) to own, directly or indirectly, at least fifty percent (50%) of the outstanding voting
securities or other ownership interest of such Person. 

 

    	 

    	 	

    
 

 

“Agreement”
shall have the meaning given such term in the preamble.

 

“API”
shall mean Tβ4 in the form of an active ingredient to be utilized as a component in the Licensed Product.

 

“Challenge” shall
have the meaning given such term in Section 8.8(b).

 

“Change of Control”
shall mean, with respect to a Party, the occurrence of any of the following:

 

(a) any consolidation,
merger, recapitalization or reorganization of a Party with or into any Third Party, or any other corporate reorganization involving
a Third Party (“Merger”), as long as the stockholders of such Party immediately prior to the Merger own less
than fifty percent (50%) of the surviving entity’s voting power immediately after the Merger;

 

(b) a change in
the beneficial ownership of more than fifty percent (50%) of the voting securities of any Party (whether in a single transaction
or series of related transactions) where, immediately after giving effect to such change, the legal or beneficial owner of more
than fifty percent (50%) of the voting securities of such Party is a Third Party, excluding any equity investment by venture capitalists
or investment banks or other nonstrategic investors, who alone or with their Affiliates, are not themselves in the business of
developing and commercializing pharmaceutical products; or

 

(c) the sale,
transfer, lease, license or other disposition to a Third Party of all or substantially all of a Party’s assets in one or
a series of related transactions.

 

“Commercialization
Plan” shall have the meaning given such term in Section 4.1.

 

“Commercially
Diligent Efforts” shall mean, with respect to the development and commercialization by Licensee of at least one Licensed
Product, the level of efforts and resources generally used by similarly situated pharmaceutical companies marketing compounds
or products throughout the Territory (including internally developed, acquired and in-licensed compounds or products) with similar
commercial potential at a similar stage in their lifecycle (assuming continuing development of such product). 

 

“Confidential
Information” shall mean any and all information, data, results, Inventions, trade secrets, techniques, material, or
compositions of matter of any type or kind, including without limitation all Know-How and all other scientific, pre-clinical,
clinical, regulatory, manufacturing, marketing, personnel, financial, legal and commercial information or data, whether communicated
in writing, orally or by any other method, that a Party treats or identifies as confidential and, in each case, is disclosed by
one Party to the other Party under this Agreement.

 

    	2*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    
 

“Control”,
“Controls” and “Controlled” shall mean, with respect to a particular item of information
or intellectual property right, that the applicable Party or any Affiliate of such Party owns or has a license to such item or
right and has the ability to grant to the other Party access to and a license or sublicense (as applicable) under such item or
rights as provided for herein without violating the terms of any agreement or other arrangement with any Third Party existing
as of the Effective Date or thereafter.

 

“Development
Plan” shall have the meaning given such term in Section 3.1.

 

“Disclosing
Party” shall have the meaning given such term in Section 9.1.

 

“Distributor”
shall mean any Third Party appointed by Licensee to distribute, market and sell Licensed Product purchased from Licensee or any
of its Affiliates (regardless of whether such Third Party has the right or obligation to provide packaging or labeling services
with respect to such Licensed Product) that: (i) is not required to make royalty or other similar payment to Licensee or any of
its Affiliates with respect to any Licensed Patent or Licensed Know-How related to the Licensed Product; and (ii) has no right
to market such Licensed Product under its own trademark or trade name.

 

“Effective
Date” shall have the meaning given such term in the preamble.

 

“Expiry
Date” shall have the meaning given such term in Section 12.1.

 

“Extended
Term” shall have the meaning given such term in Section 12.1.

 

“FDA”
shall mean the United States Food and Drug Administration or any successor U.S. governmental agency performing similar functions.

 

“Field”
shall mean the diagnosis, prevention and treatment of all human and animal diseases and conditions, provided, however, that “Field”
shall not include any use of the Licensed Product incorporated into the form of any type of cosmetic or food product.

 

“First
Commercial Sale” shall mean the initial sale of Licensed Product by or on behalf of Licensee, its Affiliates or Sublicensees
in exchange for cash or some equivalent to which value can be assigned for the purpose of determining Net Sales in the Territory
following Regulatory Approval of the Licensed Product in the Territory. For clarity, First Commercial Sale shall not include transfers
of Licensed Product at or below cost by or on behalf of Licensee, its Affiliates or Sublicensees in connection with compassionate
use, emergency use, treatment INDs, or the like authorized by the FDA, the SFDA, or any corresponding Governmental Authorities.

 

“GAAP”
shall mean, in the case of the Licensor, Generally Accepted Accounting Principles recognized in the United States, and in the
case of the Licensee, Generally Accepted Accounting Principles recognized in Hong Kong.

 

    	3*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

“Generic
or Branded Generic” shall mean a drug product containing the same active ingredients as Licensed Products and is subject
to the regulations of the governments of countries where they are dispensed and is comparable to brand/reference listed drug product
in dosage form, strength, route of administration, quality and performance characteristics, and intended use.

 

“GCP”
shall mean the then current good clinical practices as defined in U.S. Regulations 21 C.F.R. §§ 50, 54, 56, 312 and
314, the International Conference of Harmonization (ICH) E6 “Good Clinical Practice: Consolidated Guidance,” and in
any successor regulation or any official guidance documents issued by a Governmental Authority.

 

“GLP”
shall mean the then current good laboratory practice standards as defined by the FDA pursuant to 21 C.F.R. Part 58, and in any
successor regulation or any official guidance documents issued by a Governmental Authority.

 

“GMP”
shall mean the then current good manufacturing practices as defined by the FDA pursuant to 21 C.F.R. §§ 210 and 211
and in any successor regulation or any official guidance documents issued by a Governmental Authority.

 

“Governmental
Action” shall have the meaning given such term in Section 12.2 (c).

 

“Governmental
Authority” shall mean: (i) any national, federal, provincial, state, municipal or other governmental body in any jurisdiction
in the Territory, the United States or elsewhere, (ii) any international or multi-lateral body, (iii) any subdivision, ministry,
department, secretariat, bureau, agency, commission, board, instrumentality or authority of any of the foregoing governments or
bodies, (iv) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for
any of the foregoing governments or bodies, or (v) any international, multi-lateral, or multi-national judicial, quasi-judicial,
arbitration or administrative court, grand jury, tribunal, commission, board or panel, in each case having jurisdiction over the
United States or any jurisdiction in the Territory.

 

“Hong
Kong” shall mean the Hong Kong Special Administrative Region of the People’s Republic of China.

 

“IND”
shall mean an investigational new drug application filed with the FDA, or the equivalent in any jurisdiction in the Territory.

 

“Indemnified
Party” shall have the meaning given such term in Section 11.3.

 

“Indemnifying
Party” shall have the meaning given such term in Section 11.3.

 

“Initial
Term” shall have the meaning given such term in Section 12.1

 

“Intellectual
Property” shall mean any Inventions, Patents, patent rights, utility models, copyrights, trade secrets, Trademarks,
service marks, Know-How, technical information and all other intellectual property rights.

 

    	4*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    
 

 

“Invention”
shall mean any process, method, use, composition of matter, article of manufacture, discovery, finding, or invention, whether
or not patentable.

 

“Joint
Development Committee” shall have the meaning given such term in Section 3.4.

 

“Joint
Inventions” shall have the meaning given such term in Section 8.2(c).

 

“Know-How”
shall mean all tangible and intangible (i) techniques, technology, practices, trade secrets, methods, knowledge, know-how, skill,
experience, test data and results (including pharmacological, toxicological and clinical test data and results), analytical and
quality control data, results or descriptions, software and algorithms, and (ii) compounds, compositions of matter, and physical,
biological or chemical material.

 

“Laws”
shall mean (i) all constitutions, treaties, laws, statutes, codes, ordinances, guidance, orders, decrees, rules, regulations,
and municipal by-laws, whether domestic or international, anywhere in the Territory or as may otherwise be agreed in writing between
the Parties, (ii) all judgments, orders, writs, injunctions, decisions, rulings, decrees and awards of any Governmental Authority,
and (iii) all policies, practices and guidelines of any Governmental Authority.

 

“Licensed
Know-How” shall mean Know-How owned or Controlled by Licensor that exists as of the Effective Date or at any time thereafter
during the Term, in each case that is necessary or useful for the development, registration, manufacture, promotion, marketing,
distribution, or sale of the Licensed Product in the Field in the Territory.

 

“Licensed
Patents” shall mean the Patents owned or Controlled by Licensor as of the Effective Date (as listed in Exhibit A
hereto), to the extent that such Patents disclose or claim the Licensed Product as well as any future Patents owned or Controlled
by Licensor or its Affiliates during the Term, to the extent that such future Patents disclose or claim the Licensed Product.

 

“Licensed
Product” shall mean any product containing any Licensor’s drug candidates including, without limitation, those
referred to as RGN-137, RGN-259 and RGN-352, that utilize Tβ4 as at least one of the biologically active ingredients and/or
improvements thereto developed or acquired by or on behalf of Licensor for the Field in the Territory, in each case to the extent
such improvements are owned or Controlled by Licensor. The term “Licensed Product” shall include both clinical and
commercial applications of any such product.

 

“Licensee”
shall have the meaning given such term in the preamble.

 

“Licensee
Inventions” shall have the meaning given such term in Section 8.2(a).

 

“Licensee
Product Data” shall have the meaning given such term in Section 12.3 (b) (i)

 

“Licensor”
shall have the meaning given such term in the preamble.

 

“Licensor
Inventions” shall have the meaning given such term in Section 8.2(b).

 

 

    	5*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

“Losses”
shall have the meaning given such term in Section 11.1.

 

“Macau”
shall mean the Macau Special Administrative Region of the People’s Republic of China.

 

“Marketing
Approval” shall mean all approvals, licenses, registrations, or authorizations of a Regulatory Authority in any jurisdiction
of the Territory necessary for the manufacture, use, storage, marketing, importation or sale of the Licensed Product in such jurisdiction.

 

“Marketing
Year” shall mean the period commencing on the date that Marketing Approval in the PRC is obtained and ending on December
31 of the same year. Thereafter, and for the duration of this Agreement, each subsequent Marketing Year will correspond to a calendar
year period (i.e., from January 1 to December 31).

 

“Net
Sales” shall mean the gross receipts for sales made by Licensee and/or its Affiliates and Sublicensees of the
Licensed Product to other independent buyer(s), including, without limitation, to Distributors in bona fide arm’s length
transactions, less the following deductions with respect to such sale, to the extent applicable to the Licensed Product and to
the extent actually allowed and taken: (i) quantity and/or cash discounts actually allowed or taken to the extent customary; (ii)
customs, duties, excise taxes, if any, directly related to the sale of the Licensed Product and actually paid; (iii) amounts allowed
by reason of rejections and return of goods; (iv) Third-Party rebates related to the sale of the Licensed Product; and (v) import
tax, value-added tax and other similar sales taxes related to the sale of the Licensed Product, all to the extent in accordance
with GAAP as consistently applied across all products of Licensee. No deductions shall be made for commissions paid to individuals,
whether with independent sales agencies or regularly employed by Licensee, its Affiliates or Sublicensees, and on its payroll,
or for the cost of collections. On sales made in other than in arm’s length transaction, the value of Net Sales attributed
to such a transaction shall be that which would have been received in an arm’s length transaction, based on sales of like
quantity and quality products on or about the time of such transaction.

 

“Panel”
shall have the meaning given such term in Section 13.8(c)(i).

 

“Parties”
and “Party” shall have the meanings given such terms in the preamble.

 

“Patents”
shall mean any and all patents and/or patent applications, and any patents issuing on such patent applications, as well as
any continuations, divisions, reissues and re-examinations of any of the foregoing.

 

“Person”
shall mean an individual, sole proprietorship, partnership, limited partnership, limited liability partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated association, joint venture or other similar entity
or organization, including a government or political subdivision, department or agency of a government.

 

“PHS”
shall mean the National Institutes of Health, the Centers for Disease Control, and/or the FDA, agencies of the United States Public
Health Service within the Department of Health and Human Services.

 

 

    	6*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

“PHS
License” shall mean the Patent License Agreement, dated as of February 6, 2001, between PHS and Licensor, attached hereto
as Exhibit B.

 

“Product
Liability Claim” shall mean any Third Party proceedings involving any actual or alleged death or bodily injury arising
out of or resulting from the use of the Licensed Product sold by Licensee or its Sublicensees.

 

“Prohibited
List” shall mean (a) the HHS/OIG List of Excluded Individuals/Entities (available through the Internet at http://www.oig.hhs.gov);
(b) the General Services Administration’s List of Parties Excluded from Federal Programs (available through the Internet
at http://www.epls.gov); and (c) the FDA Debarment List (available through the Internet at http://www.fda.gov/ora/compliance_ref/debar/).
-

 

“PRC”
shall mean the People’s Republic of China, excluding Hong Kong and Macau.

 

“Prosecute”
shall have the meaning given such term in Section 8.5(a).

 

“Receiving
Party” shall have the meaning given such term in Section 9.1.

 

“Regulatory
Approval” shall mean any and all approvals (including, to the extent necessary, pricing approvals), licenses, registrations
or authorizations of any Governmental Authority, necessary for the promotion, development (including without limitation the conduct
of clinical trials), marketing, distribution, manufacture, sale or importation of a Licensed Product.

 

“Regulatory
Authority” shall mean any applicable Governmental Authority in any jurisdiction in the Territory from which Regulatory
Approval is required to be obtained, including the State Food and Drug Administration in the PRC, the Trade and Industry Department
and the Department of Health in Hong Kong, and any local counterparts.

 

“Regulatory
Laws” shall mean all applicable Laws governing (i) marketing approval or clearance, import, export, testing, investigation,
development, manufacture, packaging, labeling, handling, storage, distribution, installation, servicing, marketing, or sale, (ii) recordkeeping
and reporting obligations, (iii) recalls, or (iv) similar regulatory matters, with respect to the Licensed Product.

 

“Relevant
Period” shall mean, on a Licensed Product by Licensed Product basis, the period starting from the Effective Date and
ending on the expiration of the last-to-expire valid and applicable Licensed Patent within the Territory or ten (10) years from
the First Commercial Sale of each Licensed Product in the PRC, whichever is later.

 

“Renewal
Options” shall have the meaning given such term in Section 12.1

 

“Royalty
Term” shall mean the period commencing on the First Commercial Sale and ending at the expiration of or the effective
date of termination of this Agreement.

 

    	7*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

“Semester”
shall have the meaning January 1 through June 30 and July 1 through December 31 of each calendar year.

 

“SFDA”
shall mean the State Food and Drug Administration in the PRC.

 

“Sublicensee”
shall mean any Affiliate or Third Party to whom Licensee sublicenses any rights as permitted by Section 2.1(c).

 

“Sublicense
Participation Fee” shall mean any non-refundable consideration, including, but not limited to, up-front licensing fees,
development, commercial, advance royalty, or other milestone payments received by Licensee from a Sublicensee pursuant to an agreement
in connection with the development and commercialization of a Licensed Product in the Territory. 

 

“Supply
Agreement” shall have the meaning given such term in Section 5.2.

 

“Taiwan”
shall mean the Republic of China.

 

“Tβ4”
shall mean the 43 amino acid peptide commonly referred to as Thymosin Beta 4.

 

“Territory”
shall mean the PRC, Hong Kong, Macau and Taiwan.

 

“Third
Party” shall mean any Person other than Licensor, Licensee, and Affiliates of either Party.

 

“Trademark”
shall mean any trademark, trade dress, brand mark, trade name, brand name, logo, business symbol or other similar indicia of origin.

 

“ICC
Rules” shall have the meaning given such term in Section 13.8(c).

 

“Valid
Claim” shall mean a claim of an issued and unexpired Licensed Patent, that has not been revoked or held unenforceable
or invalid by a decision of a court or other Governmental Authority of competent jurisdiction, and that is not appealable or has
not been appealed within the time allowed for appeal, and that has not been abandoned, disclaimed, denied or admitted to be invalid
or unenforceable through reissue, re-examination, disclaimer or otherwise.

 

 

Section
2.  License Grant and Other Rights

 

2.1License
Grants to Licensee

 

(a)Non-Exclusive
License. Subject to the terms of this Agreement, Licensor hereby grants to Licensee a non-exclusive, irrevocable (except as
otherwise provided for in this Agreement and the PHS License), royalty-free license to use the Licensed Patents and the Licensed
Know-How to develop the Licensed Product in the Field in the Territory.

 

(b)Exclusive
License. Subject to the terms of this Agreement, Licensor hereby grants to Licensee an exclusive irrevocable (except as otherwise
provided for in this Agreement and the PHS License) royalty-bearing license to use the Licensed Patents and the Licensed Know-How
to manufacture, offer to sell, sell and import the Licensed Product in the Field in the Territory.

 

    	8*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

(c)Sublicensing.

 

(i)Licensee
shall be entitled to sublicense any or all of the rights granted to Licensee pursuant to Section 2.1(a) or 2.1 (b) to any
of its Affiliates or Third Party upon thirty (30) days’ prior written notice to Licensor, which notice shall include the
identity of such Affiliate or Third Party..

 

(ii)All
sublicenses granted to Affiliates or Third Parties pursuant to Section 2.1(c)

(i) above shall be subject to all terms, conditions, obligations and covenants
of this Agreement and all applicable provisions of the PHS License. No sublicense shall relieve Licensee of any of its obligations
hereunder.

 

(d)No Further
Licenses. Except for the licenses granted to Licensee pursuant to Sections 2.1(a)

  and 2.1 (b), no further rights or licenses are granted to Licensee
in or under this Agreement, whether expressly or by implication.

 

(e)Licensor’s
Retained Rights. Notwithstanding the rights granted to Licensee in Sections 2.1(a) and 2.1(b) and without limiting the generality
of Section 2.1(f), Licensor retains the rights to:

 

(i)conduct
or have conducted clinical trials and other studies involving the Licensed Product in the Territory for the generation of data
in support of regulatory submissions to the Regulatory Authorities outside the Territory; or

 

(ii)conduct
activities in the Territory with respect to the manufacture, formulation and processing of the Licensed Product for use and commercialization
outside the Territory, provided that Licensor shall first give Licensee the opportunity to manufacture, formulate and process
the Licensed Product for commercialization outside the Territory. If Licensee chooses not to provide such activities to Licensor,
or is unable to perform such activities for whatever reason, or the price or timing for such activities is unacceptable to Licensor,
Licensor shall be free to choose an alternative source in the Territory for such activities.

 

(f)Negative
Covenant. Licensee covenants that it will not, and it will not permit any of its Affiliates to, use or practice any Licensed
Patents and Licensed Know-How outside the scope of the license granted to it under Sections 2.1(a) and 2.1(b) above.

 

2.2Transfer
of Licensed Know-How. Upon the reasonable request of Licensee and at no cost to Licensee, Licensor shall promptly provide
Licensee with such tangible embodiments of the Licensed Know-How as are in Licensor’s possession or control so as to permit
Licensee to enjoy the licenses granted to it pursuant to Sections 2.1(a)

  and 2.1 (b).

 

    	9*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

2.3Use
of Affiliates. At Licensor’s option, any of Licensor’s rights under this Agreement may be exercised by any Affiliate
of Licensor. Further, at Licensor’s option, any of Licensor’s obligations under this Agreement may be performed by
any Affiliate of Licensor, and such obligations will be deemed satisfied upon performance by such Affiliate.

 

2.4PHS
Reserved Rights. Notwithstanding anything contained in Section 2.1

to the contrary, Licensee:

 

(a)acknowledges
that PHS has retained certain rights and interests in the Licensed Patents pursuant to the PHS License;

 

(b)agrees
that the provisions of the PHS License contained in Exhibit C shall be binding on Licensee and its successors as if Licensee
or its successors were the licensee under the PHS License; and

 

(c)shall assist
Licensor in complying with Licensor’s obligations under the PHS License.

 

 

Section
3. Development

 

3.1Development
Plan.

 

(a)Initial
Development Plan. Licensee shall carry out all development activities with respect to the Licensed Product in the Territory
in accordance with a development plan as agreed upon in writing by the Parties (the “Development Plan”).

 

(b)Development
Activities. For purposes of this Agreement, development activities shall mean all activities that are reasonably required
to obtain Regulatory Approval of the Licensed Product in the Territory, including without limitation toxicology, in vitro testing,
in vivo testing, in silico testing, stability testing, statistical analysis and report writing, packaging and regulatory affairs,
preclinical studies and clinical trials.

 

3.2Content
of Development Plans. The Development Plan (as amended after the Effective Date) shall include, to the extent applicable,
(i) the identity of the Licensed Product to be developed, (ii) a description of the overall program of development for such Licensed
Product through Regulatory Approval in the Territory, (iii) a description of the development activities including preclinical
studies, pharmacology, toxicology, formulation, clinical pharmacology studies, clinical studies and regulatory plans and other
key elements necessary to obtain Regulatory Approval for the Licensed Product, (iv) specific plans and protocols for clinical
studies, including Licensee’s good faith forecast of the quantity of clinical supplies of API that Licensee will require,
(v) a schedule for all such activities, and (vi) specific tentative deadlines for meeting specified regulatory milestones.

 

3.3Updates
and Amendments to the Development Plan. The Parties shall amend the Development Plan at least once every twelve (12) months
to expand and refine the description of the activities specified in the initial Development Plan or other then current Development
Plan and to add other development activities, and the anticipated schedule and budgets for all such activities. Such amended Development
Plan shall become effective only upon the approval of the Joint Development Committee. If the Parties fail to update the Development
Plan as required by this Section 3.3 the most recently approved Development Plan shall continue in effect until such time as an
amended Development Plan becomes effective.

 

    	10*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

3.4Joint
Development Committee. Within one hundred eighty days (180) days from the Effective Date, the Parties shall establish a joint
development committee (the “Joint Development Committee”) to coordinate and oversee the development of the
Licensed Product in the Territory.

 

(a)Composition
of the Joint Development Committee. The Joint Development Committee shall be comprised of an equal number of representatives
from each Party, initially two persons, each of whom has relevant experience and skill appropriate for service on the Joint Development
Committee, such as heads of clinical, manufacturing, and commercial development. The Parties may establish and later change the
number of representatives that each Party has on the Joint Development Committee, as long as an equal number of representatives
from each Party is maintained (unless such Party desires to have fewer representatives). Each Party may change any of its representatives
on the Joint Development Committee at any time upon notice to the other Party.

 

(b)Decisions
of the Joint Development Committee. Except as otherwise provided in this Agreement, in the event that the Joint Development
Committee cannot reach a decision in any matter properly before it, Licensee shall have final decision-making authority with respect
to such matter, including approval and amendments of the Development Plan; provided, however, that any such matter under dispute
shall first be referred to the Parties’ respective Presidents or chief executive officers, for attempted resolution by good
faith negotiations within fourteen (14) days; further provided, that any final decision made by Licensee shall (i) be consistent
with the terms of this Agreement (including Licensee’s diligence obligations hereunder); (ii) not materially affect the
rights and obligations of Licensor under this Agreement without Licensor’s consent; (iii) not materially affect the development,
manufacture or commercialization of the Licensed Products outside the Field and/or outside the Territory, as reasonably determined
by Licensor.

 

(c)Activities
of the Joint Development Committee. The Joint Development Committee shall be responsible for establishing and approving the
Development Plan.

 

(d)Meetings
of the Joint Development Committee. The Joint Development Committee shall hold its first meeting within one hundred eighty
days (180) days after the Effective Date and shall meet thereafter on a schedule and at locations mutually determined by the Parties.
Ad hoc meetings of the Joint Development Committee may be called by either Party upon reasonable advance notice to the other.
Subject to the Parties mutual agreement, regular and ad hoc meetings may be face-to-face or by teleconference or videoconference.

 

    	11*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

(e)Joint
Development Committee Expenses. Each Party shall bear the expense of the participation of its representatives on the Joint
Development Committee and in Joint Development Committee meetings.

 

3.5Clinical
Trials. Licensee shall be responsible for conducting or having conducted all clinical trials of the Licensed Product in the
Territory and for paying all fees, costs and other expenses associated therewith.

 

3.6Regulatory
Approvals. Licensee shall be responsible for obtaining and maintaining all Regulatory Approvals necessary to conduct such
clinical trials, including without limitation any Certificate for Clinical Trial and Medicinal Test in Hong Kong, and for paying
all fees, costs and other expenses associated therewith.

 

3.7Licensor’s
Cooperation. As reasonably requested by Licensee, Licensor shall cooperate with and assist Licensee in obtaining any Regulatory
Approvals necessary to conduct clinical trials of the Licensed Product in the Territory. In connection therewith, Licensor shall
provide Licensee upon request with copies of any regulatory materials and/or data as are reasonably necessary for these purposes.

 

3.8Clinical
Supply of Licensed Product.

 

(a)Clinical
Supply. Licensor shall supply Licensee with such quantities of the API, as appropriate, as are required by Licensee in order
to conduct development activities in accordance with the Development Plan, including clinical trials of the Licensed Product.
Licensor shall supply such API on the schedule and subject to such forecasting, pricing, and other ordering and delivery procedures
as are mutually agreed upon in writing by the Parties.

 

(b)Clinical
Supply Costs. Subject to the other provisions hereof, Licensor shall supply at its cost sufficient supply of API for a Phase
II dry eye clinical trial required by Licensee pursuant to Section 3.8(a)

. Licensee shall reimburse Licensor for Licensor’s fully-allocated manufacturing
costs for any API required by Licensee for all other clinical development, including clinical trials. In all cases, Licensee shall
be responsible for the cost of formulating, filling and finishing Licensed Product in accordance with applicable Laws in the relevant
jurisdiction.

 

3.9Diligence.
Notwithstanding anything specified in any Development Plan, Licensee shall at all times exert no less than Commercially Diligent
Efforts to develop at least one Licensed Product in the Territory, including seeking Regulatory Approval and Marketing Approval
of the Licensed Product in the Territory. Licensee shall require any Affiliates, Sublicensees, and/or Third Parties it uses to
develop the Licensed Product to use such efforts on Licensee's behalf.

 

    	12*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

Section
4. Commercialization of Licensed Product 

 

4.1Commercialization
Plan.

 

(a)Initial
Commercialization Plan. Licensee shall carry out all commercialization activities with respect to the Licensed Product in
the Territory in accordance with a commercialization plan provided for by Licensor (the “Commercialization Plan”).
The initial Commercialization Plan shall be provided to Licensor within ninety (90) days from the expected First Commercial Sale
date with respect to PRC.

 

(b)Commercialization
Activities. For purposes of this Agreement, commercialization activities shall mean all appropriate activities undertaken
before and after Regulatory Approval relating specifically to the marketing, sale and distribution of the Licensed Product in
the Territory, including, without limitation, (i) sales force detailing, advertising, education, planning, marketing, sales force
training and distribution, (ii) scientific and medical affairs, and (iii) pricing and related terms for the Licensed Product.

 

4.2Content
of Commercialization Plan.

 

(a)Description
of Activities. The Commercialization Plan (as amended, if needed) shall include a reasonable description of the activities
that Licensee shall undertake in order to market the Licensed Product in the Territory, including, but not limited to, (i) media
marketing plans, promotional activities and similar matters, including detailed budgets, and (ii) the identity of intended major
Distributors and Sublicensees, if any.

 

(b)Net
Sales Targets. The Parties acknowledge that, as of the Effective Date, specific Net Sales targets in any Marketing Year are
difficult to determine. The Commercialization Plan shall specific a broad range of Net Sales targets that will be refined and
updated in amendments to the Commercialization Plan as the Licensed Product in the Territory approaches Regulatory Approval.

 

4.3Amendments
to the Commercialization Plan. The Parties shall amend the Commercialization Plan at least once every twelve (12) months after
the First Commercial Sale date with respect to the PRC to refine the description of the activities specified in the initial Commercialization
Plan and any subsequently amended Commercialization Plan, and to add other commercialization activities, to update the anticipated
schedule and budgets for all such activities, and to update the Net Sales targets. Such amended Commercialization Plan shall comply
with the provisions of Section 4.2. If the Parties fail to update the Commercialization Plan as required by this Section 4.3,
the most recently approved Commercialization Plan shall continue in effect until such time as an amended Commercialization Plan
becomes effective pursuant to this Section 4.3.

 

4.4Diligence.
Licensee shall at all times exert no less than Commercially Diligent Efforts to promote, market and distribute at least one Licensed
Product in the Territory. Licensee shall require any Affiliates, Sublicensees, Distributors, and/or other Third Parties it uses
to promote, market and distribute the Licensed Product to use such efforts on Licensee's behalf.

 

    	13*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

4.5Notification
of Benchmarks and Milestones. Licensee shall report in writing to Licensor the date of the First Commercial Sale in each country
of the Territory and the achievement of any milestone specified in this Agreement within thirty (30) days of such occurrences.

  

Section
5. Manufacture and Supply of Licensed Product 

 

5.1Supply
Obligation. Upon Licensee’s written request and subject to the terms of a definitive supply agreement to be negotiated
by the Parties, Licensor shall manufacture and supply to Licensee (i) API at no charge for a Phase 2 ophthalmic clinical trial
aimed at studying the Licensed Product in patients affected by dry eye in quantities and timeframes to be agreed; and (ii) API
at Licensee’s cost for other clinical trials to be conducted by Licensee in the Territory.

 

5.2Supply
Terms. Licensee shall at all times be entitled to manufacture or source API from suppliers of its choice. Upon Licensee’s
written request, Licensee may purchase all or part of its commercial requirements of API from Licensor at a cost plus price to
be discussed and agreed upon by the Parties, subject to Licensor’s ability to deliver required amounts of API pursuant to
the terms of a commercial supply agreement to be negotiated by the Parties.

 

5.3Manufacturing
License. Licensor grants to Licensee the rights under the Licensed Patents and Licensed Know-How as may be necessary in order
for Licensee to manufacture or have manufactured by an Affiliate or by a Third Party the API and the Licensed Product in the Territory
for the sole purpose of exercising the licenses granted to Licensee pursuant to Sections 2.1(a) and
(b).

  

Section
6. Royalties and Payments 

 

6.1Royalties.

 

(a)During
the Royalty Term, on an annual basis, Licensee shall pay Licensor royalties equal to [***]% of aggregate annual Net Sales up to
U.S. $[***] for all Licensed Products, [***]% of aggregate annual Net Sales for all Licensed Products between U.S. $[***] and
U.S. $[***], and [***]% of aggregate annual Net Sales for all Licensed Products above U.S. $$[***]. Each such payment shall be
due and payable no later than sixty (60) days after the end of the Semester in which the applicable Net Sales were made. In case
any Generic/Branded Generic of any Licensed Product by any Third Party enter the market without a direct or indirect agreement
with the Licensee, its Affiliates or their Sublicensees or Distributors for the Licensed Product and during the applicable Semester
, on a country-by-country basis and product-by-product basis, such Generic/Branded Generic taken in the aggregate have according
to IMS or similar data source a market share (measured in US dollars) in such country of at least 30% (thirty percent), then the
royalties’ rate applicable in such market will be reduced by fifty percent (50%).

 

(b)If it is
necessary for Licensee to obtain a license from a Third Party under any Patent in a particular country in the Territory in order
to use, make, or sell a Licensed Product and Licensee obtains such a license, Licensee may deduct, from the royalty payment that
would otherwise have been due pursuant to Section 6.1(a) with respect to Net Sales of the applicable Licensed Product in such
country in a particular applicable Semester an amount equal to fifty percent (50%) of the royalties paid by Licensee to such Third
Party pursuant to such license on account of the sale of such Licensed Product in such country during such applicable Semester.

 

    	14*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

(c)If Licensee
wishes to pursue the development, promotion, marketing, distribution and sale of the Tβ4 fragment LKKTETQ, which product
was licensed for certain uses by Licensee from the National Institute of Health of the United States of America prior to the signing
of this Agreement, and if such development, promotion, marketing, distribution and sale would infringe upon any Valid Claim of
any issued patents or future patents owned or Controlled by Licensor in the Territory (hereinafter, «Licensor LKKTETQ Patent »),
then the license grant and other rights granted from Licensor to Licensee according to Section 2 of this Agreement shall be automatically
expanded to include also the Licensee’s right to exploite such Licensor LKKTETQ Patent. In such a case, the Parties will
negotiate in good faith an appropriate royalty on the Net Sales obtained by Licensee in the Territory with the LKKTETQ containing
product whose sales infringe any Valid Claim as referred to above. In no event such royalty will be greater than seventy percent
(70%) of the royalty rates provided for in Section 6.1(a) above. Furthermore, in this case, there will be no License Fees nor
Milestone Payments nor Sublicense Participation Fees owed by Licensee to Licensor in connection with the sales of such LKKTETQ
containing product.

 

6.2Licensee
Fee.

 

(a)On March
28, 2012 Licensee paid Licensor U.S. $200,000 pursuant to the terms set forth in the Binding Term Sheet that was executed between
the Parties on March 27.

 

(b)Licensee
shall promptly pay to Licensor U.S. $200,000 upon execution of this License Agreement.

 

(c)Licensor
shall be obligated to promptly return to Licensee U.S. $200,000 if License Agreement is not executed.

 

6.3Milestone
Payments.

 

(a)Licensee
shall promptly pay to Licensor a non-refundable sum of U.S. $500,000 upon initiation of First Commercial Sale of the first Licensed
Product in the PRC.

 

(b)Licensee
shall promptly pay to Licensor a non-refundable sum of U.S. $1,500,000 upon obtaining U.S. $50,000,000 of aggregate, cumulative
commercial Net Sales in the Territory.

 

(c)Licensee
shall promptly pay to Licensor a non-refundable sum of U.S. $1,600,000 upon obtaining U.S. $80,000,000 of aggregate, cumulative
commercial Net Sales in the Territory.

 

    	15*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

6.4Sublicense
Participation Fees. Licensor shall be entitled to an amount equal to thirty percent (30%) of any Sublicense Participation
Fees received by Licensee, provided that any amounts already paid to Licensor under Section 6.2 and 6.3 above with respect to
such Licensed Product shall be creditable against the amount payable under this Section 6.4.

 

6.5Royalty
Reports. Licensee shall furnish to Licensor, within sixty (60) days following the end of each Semester during the Royalty
Term, a complete, detailed and accurate written report for such Semester showing (i) the gross amount of sales, on a unit-by-unit
basis, of Licensed Products by Licensee and Sublicensees to independent buyers (whether an end-user, wholesaler or otherwise)
in bona fide arm’s length transactions; (ii) the adjustments resulting from the deductions in the definition of “Net
Sales; (iii) total Net Sales and (iv) the conversion into United States Dollars, pursuant to Section 6.7, of any
such Net Sales made in another currency; and (v) the calculation of royalties due.

 

6.6Manner
of Payments. All payments due Licensor under this Agreement shall be payable in United States Dollars by wire transfer of
immediately available funds to such bank account(s) as Licensor shall designate, or by such other method as Licensor may reasonably
designate.

 

6.7Exchange
Rate. When converting any amount in another currency into United States Dollars, Licensee shall use an exchange rate
equal to New York foreign exchange rate quoted in the Wall Street Journal on the business day prior to the date a payment
under this Agreement is due.

 

6.8Interest
on Late Payments. Any payment not paid within thirty (30) calendar days from the date such payment is due under this Agreement
shall be subject to interest from and including the date such payment is due through and including the date such payment is actually
made at an annual rate equal to the sum of two percent (2%) plus the annual prime rate of interest quoted in the Money Rates Section of
the Wall Street Journal calculated daily on the basis of a 365-day year, or similar reputable data source, or, if lower,
the highest rate permitted under applicable law. The payment of such interest shall not limit Licensor from exercising any other
rights it may have as a consequence of the lateness of any payment.

 

6.9Records;
Audit Rights.

 

(a)Records.
Licensee shall maintain, and shall require its Affiliates and Sublicensees to maintain, during the Term of this Agreement and
for a period of five (5) years thereafter, complete, detailed and accurate books and records in connection with the sale of Licensed
Product as necessary to allow the accurate determination of any and all financial and accounting information relevant to either
Party’s payment obligations hereunder, including without limitation as necessary for the calculation of the royalties due
to Licensor hereunder and any fees payable pursuant to Section 12.3(d)

 

(b)Audit
Rights.

 

    	16*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    
 

 

(i)Licensor
or its representative shall have the right to annually audit Licensee’s, its Affiliates’ and its Sublicensees’
records as set forth in this Section 6.9

. Licensee shall permit Licensor or its representative to have access during
normal business hours to such records of Licensee, its Affiliates and its Sublicensees as may be reasonably necessary to verify
the accuracy of the royalty reports hereunder for any Semester during a Marketing Year ending not more than one (1) year prior
to the date of such request, provided that if Licenseee or its Sublicensee as defined herein restates any of its financial statements,
or if there are any financial irregularities reported, or if during the audit of Licensee’s records under this Section 6.9(b)(i)
material discrepencies are found with regard to royalties owed to Licensor, Licensor shall be able to audit the Licensee’s
or Sublicensee’s records for most recently ended Marketing Year and any Marketing Year ending not more than three (3) years
prior thereto. Annual audits can take place no more often than once per each calendar year. Notice of Licensor’s intent
to conduct an audit must be provided within 30 days of the later of: (i) Licensor’s receipt of the periodic royalty report
reflecting full yearly sales of Licensed Product or (ii) Licensee’s filing of its official report in accordance with the
Hong Kong Stock Exchange regulations. Except as otherwise provided in Section 6.9(b)(ii), each Party shall be responsible
for its own costs and expenses relating to any audit conducted under this Section 6.9(b)(i). Licensee shall cause its Affiliates
and Sublicensees to agree to make their records available for audit by Licensor or its representative as set forth in this Section 6.9.

 

(ii)If any
audit conducted by Licensor or its representative shows an underpayment of royalties to Licensor, Licensee shall remit to Licensor
the amount of such underpayment within thirty (30) days after its receipt of Licensor’s request therefor. If an underpayment
in royalties exceeds five percent (5%) of the total amount owed for the period then being audited, Licensee shall be responsible,
and promptly shall reimburse Licensor, for Licensor’s reasonable out-of-pocket costs for conducting the audit. If any audit
conducted by Licensor or its representative shows an overpayment of royalties to Licensor, then at Licensor’s option, such
overpayment shall either be refunded to Licensee promptly or be credited against amounts payable by Licensee in subsequent Semesters.

 

(c)Confidentiality.
Licensor shall treat all financial information of Licensee, its Affiliates and Sublicensees that Licensor reviews in connection
with any audit conducted under this Section 6.9 as Confidential Information of Licensee
subject to the provisions of Section 9 of this Agreement.

  

Section
7. Regulatory Matters

 

7.1Regulatory
Approvals. Licensee shall have the sole authority and responsibility to obtain in its own name and maintain any Regulatory
Approvals and Marketing Approvals with respect to the Licensed Product in the Territory. Licensor shall, promptly after the Effective
Date, provide Licensee with a copy of any relevant data related to the Licensed Product owned by Licensor that have been filed
with the FDA. Subject to the prevailing applicable Regulatory Law in the Territory, Licensor shall retain the sole right, but
not the obligation, to be designated as the sponsor of any and all clinical trials of Licensed Product conducted by Licensee,
and Licensor shall have the sole right to decide, to the extent permitted by the applicable Regulatory Law in the Territory, whether
any clinical trials shall be conducted under an IND issued by the FDA or under an IND issued by the SFDA. Irrespective of the
exercise of such rights, Licensee shall at all times be responsible for ensuring that any and all clinical trials are conducted
in compliance with all applicable Regulatory Laws and other requirements of any Regulatory Authority in the Territory, and all
Regulatory Laws and other requirements of any Governmental Authority (including any promulgated by the FDA) that would be applicable
if such clinical trials were sponsored under Licensor’s IND or otherwise subject to the jurisdiction of the FDA.

 

    	17*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

7.2Contact
with Governmental Authorities. Subject to the other provisions of this Section 7.2, Licensee shall be solely responsible
for responding to all inquiries, notices of violation, warning letters, inspectional observations, and other actions from or by
Governmental Authorities in the Territory, in each case to the extent related to the Licensed Product in the Territory. Licensor
and Licensee shall immediately forward to each other copies of any material correspondence from any Governmental Authority that
it receives in respect of the Licensed Product. Notwithstanding the other provisions of this Section 7.2, Licensee shall
not respond to any inquiries or other correspondence from a Governmental Authority with respect to the Licensed Product in the
Territory without first providing Licensor with a copy of its proposed response, and incorporating any reasonable comments of
Licensor in such response. Licensor shall cooperate with Licensee in responding to any inquiry or other correspondence from a
Governmental Authority in a timely manner, including by promptly responding to all inquiries of Licensee relating thereto.

 

7.3Regulatory
Information. Each Party agrees to provide the other Party with all reasonable assistance and take all actions reasonably requested
by the other Party that are necessary or desirable to enable the other Party to comply with any Law or other requirement of any
Governmental Authority applicable to the Licensed Product. Such assistance and actions shall include, among other things, (a) informing
the other Party, within five (5) business days, of receiving notice of any action by, or notification or other information which
it receives (directly or indirectly) from any Governmental Authority that: (i) raises any material concerns regarding the safety
or efficacy of the Licensed Product; (ii) indicates or suggests a potential material liability for either Party to Third Parties
arising in connection with the Licensed Product; or (iii) is reasonably likely to lead to a field alert report, recall or market
withdrawal of the Licensed Product; provided, that neither Party shall be obliged to disclose information in breach of any contractual
restriction; and (b) Licensee immediately reporting to Licensor the occurrence of any adverse reaction (including without
limitation death) or other incident during any clinical trial or medicinal exam and any other information so as to enable Licensor
to fulfil its reporting obligations to any Governmental Authority, as further specified by the Safety Agreement.

 

7.4Official
Documentation. Licensee shall provide to Licensor one exact copy of any official registration and/or importation documents
supplied by the relevant Regulatory Authorities immediately upon issuance. In case of early termination of this Agreement, Licensee
shall provide to Licensor any original versions of such registrations and/or documents that are not otherwise in Licensor’s
possession as per Section 12.3(a).

 

    	18*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

7.5Clinical
Trial Reports. Without limiting any of Licensee’s obligations under this Agreement, Licensee shall be responsible for
preparing the clinical trial yearly progress reports, clinical trial final report and any other reports as may be required by
a Regulatory Authority in connection with clinical trials of the Licensed Product; provided, however that Licensee shall provide
drafts of such reports for Licensor’s knowledge prior to submission to the applicable Regulatory Authority and provide all
final reports submitted to applicable Regulatory Authorities.

 

7.6Unknown
Side Effects; Adverse Reactions

 

(a)Reporting
Unknown Side Effects and Adverse Reactions. Each Party shall provide promptly to the other Party any information and data
relating to any serious or previously unknown side effects or adverse reactions relating to the Licensed Product that the providing
Party receives from any source, as further specified in the Safety Agreement.

 

(b)Safety
Agreement. Promptly after the Effective Date and before the date that Licensee commences any clinical trials of the
Licensed Product in the Territory, the Parties shall enter into a separate written safety agreement containing
(i) appropriate provisions addressing safety issues relating to the Licensed Products, (ii) a description of the
types of side effects and reactions that must be reported pursuant to Section 7.6(a) and any other complaints or
information requests that must be reported, and (iii) such cooperative working procedures as are reasonably necessary to
ensure that satisfactory systems and processes are in place to ensure the effective exchange of safety and other medical
information relating to the Licensed Product (the “Safety Agreement”).

 

Section
8.  Intellectual Property

 

8.1Trademarks.
Licensee shall be free to use Licensee’s Trademarks or any other Trademark(s) owned by the Licensee in the Territory for
the Licensed Product.

 

8.2Ownership
of Inventions.

 

(a)Licensee
Inventions. Subject to any licenses granted to Licensor herein, Licensee shall own all Inventions having as inventors only
employees, consultants or contractors of Licensee (“Licensee Inventions”). Licensee shall have written agreements
in place with its employees, consultants, and contractors giving Licensee all rights and authority necessary to grant the license
in Section 8.3(a).

 

(b)Licensor
Inventions. Subject to any licenses granted to Licensee herein, Licensor shall own all Inventions having as inventors only
employees, consultants or contractors of Licensor (“Licensor Inventions”). Licensor shall have written agreements
in place with its employees, consultants, and contractors giving Licensor all rights and authority necessary to grant the license
in Section 8.3(b).

 

(c)Joint
Inventions. Licensee and Licensor shall own jointly all Inventions having as inventors employees, consultants or contractors
of both Licensee and Licensor (“Joint Inventions”). The Parties will agree on a case-by-case basis the appropriate
allocation of cost and control concerning matters regarding the prosecution, maintenance, defense and infringement of Patents
for such Joint Inventions.

 

    	19*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

8.3Licenses
to Certain Inventions. 

 

(a)License
Grant to Licensor. To the extent that any Licensee Invention or any Joint Invention relates to the development, promotion,
marketing, distribution, manufacturing or sale of the Licensed Product, Licensee hereby grants to Licensor, and Licensor hereby
accepts, an exclusive, perpetual, transferable, sublicensable (through multiple tiers), royalty-bearing license under Licensee’s
rights in such Licensee Invention or Joint Invention, as applicable, to research, develop, promote, market, distribute, manufacture,
have manufactured, sell, offer for sale or import the Licensed Product outside the Territory and/or outside the Field. The foregoing
license shall include a right of reference (transferable by Licensor to its Affiliates and sublicensees) to all regulatory filings
made by Licensee in the Territory and all data from any clinical trials conducted by Licensee pursuant to this Agreement for the
development, manufacture and commercialization of any Licensed Product outside the Territory and/or outside the Field. Licensee
shall promptly disclose all Licensee Inventions and Joint Inventions in writing to Licensor. If Licensor desires to use any such
Licensee Invention and/or Joint Invention for the development, manufacture and commercialization of the Licensed Products outside
the Territory and/or outside the Field, Licensor shall notify Licensee in writing. Following Licensee’s receipt of such
notice, the Parties shall negotiate in good faith and on a case-by-case basis the terms and conditions of such license, including
commercially reasonable royalty rates; provided that such royalty shall in no event exceed 4% on relevant net sales. If the Parties
are unable to agree on the terms and conditions for such license within ninety (90) days of commencemcent of negotiations, the
matter shall be resolved in accordance with Section 13.8.

 

(b)License
Grant to Licensee. To the extent that any Licensor Invention or any Joint Invention relates to the development, promotion,
marketing, distribution, or sale of the Licensed Product, then such Licensor Invention or Licensor’s interest in such Joint
Invention, as applicable, shall be deemed a Licensed Patent and shall be subject to the licenses granted to Licensee pursuant
to Sections 2.1(a) and 2.1(b).

 

8.4Patent
Marking. Licensee shall, and shall cause its Affiliates, Sublicensees and Distributors to mark all Licensed Products sold
or otherwise distributed pursuant to this Agreement in accordance with the applicable patent statutes and other relevant regulations
in the jurisdiction of the Territory in which such Licensed Product is manufactured, sold or otherwise distributed.

 

8.5Prosecution
and Maintenance of Licensed Patents in the Territory.

 

(a)Prosecution.
As between Licensor and Licensee, Licensor shall have the right, but not the obligation, to prepare, file, prosecute, and maintain
the Licensed Patents in the Territory, and to pursue any proceeding (including interferences, re-examinations, examinations, protests,
reissues, opposition proceedings and the like) relating to any of the Licensed Patents (collectively “Prosecute”)
in the Territory, such costs and expenses shall be shared equally by the Parties. The Parties agree to utilize Licensee’s
local intellectual property counsel and counsel shall promptly provide Licensor with all information related to such prosecution.
In the event that Licensor decides not to Prosecute any Licensed Patent, Licensor shall notify Licensee of its decision and the
reason therefor, and subject to Licensor’s consent (which will not be unreasonably withheld or delayed), Licensee shall
have the right to Prosecute such Licensed Patent in the Territory at its expense.

 

    	20*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

(b)Cooperation.
In connection with any of Licensor’s activities to Prosecute any of the Licensed Patents, Licensee shall cooperate fully
and provide Licensor with any information or assistance that Licensor reasonably requests, including executing such documents
as may be necessary with respect to such prosecution activity. If Licensee becomes aware of any patent, information, proceeding
or other matter that may affect the preparation, filing, prosecution, or maintenance of any of the Licensed Patents or that may
adversely impact the validity, scope, title or enforceability of any of the Licensed Patents, Licensee shall promptly notify Licensor
of such patent, information, proceeding, or matter.

 

8.6Infringement
by Third Parties.

 

(a)Notice.
If Licensee learns of any actual or possible infringement of any Licensed Patent in the Territory, or any actual or possible misappropriation
or misuse of Licensed Know-How, Licensee shall promptly notify Licensor of such infringement, misappropriation or misuse.

 

(b)Right
to Bring Suit in the Territory.

 

(i)As between
Licensor and Licensee, Licensor shall have the right but not the obligation, to bring and control any legal action or proceeding
with respect to any infringement of Licensed Patents or any misappropriation or misuse of Licensed Know-How by Third Parties in
the Territory, at its own expense and using counsel of its own choice.

 

(ii)In the
event that Licensor declines to take legal action with respect to any infringement of the Licensed Patents, Licensee shall have
the right, after giving Licensor ten (10) working days’ prior notice of its intent to do so, to take such legal action at
its own expense, with the concomitant right to choose legal counsel reasonably acceptable to Licensor and to determine legal strategy.
Licensor shall have the right to participate in any such legal action using its own counsel, at its own expense. Licensee may
not settle or compromise any such controversy with any Third Party without the prior written approval of Licensor, which shall
not be unreasonably withheld or delayed.

 

(iii)For
any action or proceeding brought by Licensor pursuant to this Section 8.6

, if Licensor is unable to initiate or prosecute such action solely in its
own name, then Licensee shall join such action voluntarily and shall execute all documents necessary to initiate litigation to
prosecute and maintain such action-

 

    	21*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    
 

 

(iv)In connection
with any action or proceeding brought by Licensor pursuant to this Section 8.6, Licensee shall cooperate fully and will provide
Licensor with any information or assistance that Licensor reasonably requests.

 

8.7Certifications.
Each Party shall inform the other Party of any certification related to the Licensed Product regarding any Licensed Patents it
receives pursuant to either 21 U.S.C. §§ 355(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV) or its successor provisions,
or any equivalent regulations in any jurisdiction of the Territory, and shall provide the other Party with a copy of such certification
within five (5) days of receipt by such Party. Licensor’s and Licensee’s rights with respect to the initiation
and prosecution of any legal action as a result of such certification or any recovery obtained as a result of such legal action
shall be as set forth in this Section 8.

 

8.8Defense
of Third Party Claims.

 

(a)Notice.
If either Party learns that a Third Party has commenced or plans to commence, either as a claim, a counterclaim, or an action
for declaratory judgment, an action or proceeding challenging any of the Licensed Patents in any jurisdiction of the Territory,
such Party shall promptly provide the other Party with notice thereof.

 

(b)Licensor’s
Right to Defend. As between Licensor and Licensee, Licensor shall have the right, but not the obligation, to defend and control
any claim, counterclaim or other action initiated by a Third Party challenging any of the Licensed Patents in any jurisdiction
of the Territory (each a “Challenge”), at its own expense and using counsel of its own choice.

 

(i)For the
defense of any Challenge pursuant to this Section 8.8, if Licensor is unable to initiate or prosecute such defense solely
in its own name, then Licensee (subject to any necessary approval of the relevant court) shall join such action voluntarily and
shall execute all documents necessary to initiate litigation to prosecute and maintain such action. -

 

(ii)In connection
with the defense of any Challenge brought by Licensor pursuant to this Section 8.8, Licensee shall cooperate fully and will
provide Licensor with any information or assistance that Licensor reasonably requests.

 

8.9Awards
and Recovery. Any recovery obtained by Licensor in connection with or as a result of any action contemplated by Section 8.6
or 8.8, whether by settlement of otherwise, shall be shared by the Parties as follows:

 

(a)such recovery
shall first be allocated to Licensor for reimbursement in respect of its respective out-of-pocket costs and expenses incurred
in connection with such action; and

 

(b)any remaining
amounts after such reimbursement shall be split equally by the Parties.

 

    	22*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

Section
9. Confidentiality and Press Releases

 

9.1Confidential
Information. Except to the extent expressly authorized by this Agreement, or otherwise agreed in writing by the Parties, the
Parties agree that the receiving Party (the “Receiving Party”) shall keep confidential and shall not publish
or otherwise disclose or use for any purpose other than as provided for in this Agreement any Confidential Information which is
disclosed to it by the other Party (or an Affiliate thereof) (each, a “Disclosing Party”), except to the extent
that the Receiving Party can demonstrate by competent written evidence that such Confidential Information:

 

(a)was already
legally in the possession of the Receiving Party, other than under an obligation of confidentiality, at the time of disclosure
by the Disclosing Party;

 

(b)was generally
available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party;

 

(c)became
generally available to the public or was otherwise part of the public domain after its disclosure and other than through any act
or omission of the Receiving Party in breach of this Agreement;

 

(d)was disclosed
to the Receiving Party, other than under an obligation of confidentiality, by a Third Party who had no obligation to the Disclosing
Party not to disclose such information to others; or

 

(e)is independently
discovered or developed by the Receiving Party without the use of Confidential Information provided by the Disclosing Party.

 

9.2Exceptions.
The obligations of this Section 9 shall not apply to Confidential Information that:

 

(a)is submitted
to Governmental Authorities by the Receiving Party to facilitate the issuance of any Regulatory Approval for the Licensed Product,
or to obtain, maintain, enforce or defend Patents (in each case only to the extent permitted by this Agreement; provided that
(A) such disclosure may be only to the extent reasonably necessary to obtain Regulatory Approvals or Patents, as applicable, and
(B) the Receiving Party shall take reasonable measures to assure confidential treatment of such information to the extent applicable;

 

(b)is provided
by the Receiving Party to Third Parties (including, in the case of Licensee, to its Affiliates, Sublicensees or Distributors)
under written confidentiality agreements having provisions at least as stringent as those in this Agreement, for consulting, development,
external testing, marketing trials and other similar activities to the extent that such Receiving Party is permitted to conduct
such activities pursuant to this Agreement; or

 

    	23*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    
 

(c)is otherwise
required to be disclosed by the Receiving Party in compliance with Laws (including, without limitation and for the avoidance of
doubt, the requirements of the U.S. Securities and Exchange Commission, the American Stock Exchange, the Hong Kong Stock Exchange,
and any other stock exchange on which securities issued by a Party are traded) or order by a court or other Governmental Authority
having competent jurisdiction; provided, however, that the Receiving Party shall first give written notice to the Disclosing Party
in order to allow the Disclosing Party the opportunity to seek confidential treatment of the Confidential Information. Confidential
Information that is disclosed pursuant to Law or an order by a court or other Governmental Authority shall remain otherwise subject
to the confidentiality and non-use provisions of this Section 9, and the Party disclosing Confidential Information pursuant to
a Law or order by a court or other Governmental Authority shall take all reasonable steps necessary, including without limitation
obtaining an order of confidentiality, to ensure the continued confidential treatment of such Confidential Information.

 

9.3Disclosure
to PHS. Licensor may disclose certain Confidential Information of Licensee to PHS in order to comply with the PHS License.
In such event, such Confidential Information shall be subject to the applicable confidentiality provisions of the PHS License.

 

9.4Return
of Confidential Information Upon Expiration or Termination of Agreement. Within thirty (30) days after any expiration
or termination of this Agreement, each Party shall destroy (and certify to the other Party such destruction) or return (as requested
by the other Party) all Confidential Information provided by the other Party except as otherwise set forth in this Agreement,
and except that each Party may retain a single copy of the Confidential Information in its confidential legal files for the sole
purpose of ascertaining its ongoing rights and responsibilities regarding the Confidential Information and for defending or enforcing
its legal rights.

 

9.5Written
Agreements. The Receiving Party shall have in effect or obtain written agreements from each of its employees, consultants
and contractors who have access to Confidential Information of the Disclosing Party, which agreements shall obligate such persons
to similar obligations of confidentiality, and to assign to the Receiving Party all Know-How, information and Inventions conceived,
made or reduced to practice by such persons during the course of performing the Receiving Party’s obligations under this
Agreement. Each Party will notify the other Party promptly upon discovery of any unauthorized use or disclosure of the Confidential
Information of the other Party.

 

9.6Remedies.
Each Party shall be entitled, in addition to any other right or remedy it may have, at law or in equity, to seek an injunction,
without the posting of any bond or other security, enjoining or restraining the other Party from any violation or threatened violation
of this Section 9.

 

9.7Prior
Confidentiality Agreement. The Confidential Disclosure Agreement, dated as of July 2, 2005, between Licensor and Licensee
shall remain in effect with respect to disclosures made thereunder prior to the Effective Date.

 

9.8Press
Releases. Except as required by Law (including, without limitation and for the avoidance of doubt, the requirements of the
U.S. Securities and Exchange Commission, the American Stock Exchange, the Hong Kong Stock Exchange, and any other stock exchange
on which securities issued by a Party are traded) or any Governmental Authority, neither Party shall make any press release or
other public announcement relating to this Agreement or the transactions described herein without the prior written consent of
the other Party.

 

 

    	24*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

Section
10. Representations, Warranties and Covenants

 

10.1Licensor
Representations, Warranties and Covenants. Licensor hereby represents, warrants and covenants to Licensee as follows:

 

(a)the execution,
delivery and performance by Licensor of this Agreement and the consummation of the transactions contemplated hereby are within
Licensor’s corporate powers and have been duly authorized by all necessary corporate action on the part of Licensor. This
Agreement constitutes the legal, valid and binding obligation of Licensor, enforceable against Licensor in accordance with its
terms;

 

(b)the execution,
delivery and performance of this Agreement by Licensor will not violate any Law or any order of any Governmental Authority;

 

(c)except
as may be required to permit the sale or exportation of Licensed Product into the Territory from time to time during the Term,
the execution, delivery or performance of this Agreement by Licensor will not require Licensor to obtain any permits, authorizations
or consents from any Governmental Authority, and such execution, delivery and performance will not result in a material breach
of or give rise to any termination of any agreement or contract to which Licensor is a Party;

 

(d)Licensor
has the right and authority to grant the licenses granted in Section 2

of this Agreement; and

 

(e)Licensor,
its Affiliates, and its and their respective employees, agents, contractors and consultants have never been (i) debarred
or (ii) convicted of a crime for which a person can be debarred, under Section 306(a) of the Generic Drug Enforcement
Act of 1992 (Section 306 (a) or (b)) or similar Laws of any foreign jurisdiction. Licensor, its Affiliates, and its and their
respective employees, agents, contractors and consultants have never been (i) threatened to be debarred or (ii) indicted
for a crime or otherwise engaged in conduct for which a person can be debarred, under Section 306(a) or (b) of the Generic
Drug Enforcement Act of 1992 or similar Laws of any other jurisdiction. Licensor shall promptly notify Licensee upon learning
of any such debarment, conviction, threat or indictment.

 

10.2Licensee
Representations, Warranties and Covenants. Licensee hereby represents, warrants and covenants to Licensor as follows:

 

(a)the execution,
delivery and performance by Licensee of this Agreement and the consummation of the transactions contemplated hereby are within
Licensee’s corporate powers and have been duly authorized by all necessary corporate action on the part of Licensee. This
Agreement constitutes the legal, valid and binding obligation of Licensee, enforceable against Licensee in accordance with its
terms;

 

    	25*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

(b)Licensee
will be at all times properly registered, licensed and qualified, and have all requisite power and authority under its organizational
documents and in accordance with the Laws of the Territory to develop (including without limitation the conduct of clinical trials),
promote, market, distribute, import, export and sell the Licensed Product in the Territory, and to conduct its business and perform
its obligations hereunder and, during the Term, it shall take all action as may be required and necessary to obtain and keep current
any governmental licenses, permits, registrations and approvals (including without limitation Regulatory Approvals) that are necessary
or advisable for it to carry out its activities hereunder;

 

(c)the execution,
delivery and performance of this Agreement by Licensee will not violate any Law or any order of any Governmental Authority;

 

(d)except
for Regulatory Approvals and as may be required to permit the sale or importation of Licensed Product from time to time into the
Territory during the Term, the execution, delivery or performance of this Agreement by Licensee will not require Licensee to obtain
any permits, authorizations or consents from any Governmental Authority, and such execution, delivery and performance will not
result in a material breach of or give rise to any termination of any agreement or contract to which Licensee is a Party;

 

(e)Licensee,
its Affiliates, and its and their respective employees, agents, contractors and consultants have never been (i) debarred
or (ii) convicted of a crime for which a person can be debarred, under Section 306(a) of the Generic Drug Enforcement
Act of 1992 (Section 306 (a) or (b)) or similar Laws of any foreign jurisdiction. Licensee, its Affiliates, and its and their
respective employees, agents, contractors and consultants have never been (i) threatened to be debarred or (ii) indicted
for a crime or otherwise engaged in conduct for which a person can be debarred, under Section 306(a) or (b) of the Generic
Drug Enforcement Act of 1992 or similar Laws of any other jurisdiction. Licensee shall promptly notify Licensor upon learning
of any such debarment, conviction, threat or indictment;

 

(f)Licensee
and its Affiliates and its and their respective employees, agents, contractors and consultants shall not use any Person on a Prohibited
List in connection with the performance of any of its obligations or activities under this Agreement;

 

(g)Licensee
shall carry out its obligations and activities under this Agreement, including the development, promotion, marketing, distribution
and sale of Licensed Products, in accordance with: (i) the terms hereof, (ii) all applicable Laws and Regulatory Laws, including
without limitation the Pharmacy and Poisons Ordinance (Chapter 138 of the Laws of Hong Kong), the Dangerous Drugs Ordinance (Chapter
134 of the Laws of Hong Kong) and any subsidiary legislation thereunder; and (iii) GCP, GLP, and, to the extent Licensee manufactures
or has manufactured any Licensed Products pursuant to Section 5.2

, GMP;

 

    	26*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

(h)As of the
Effective Date, Licensee believes in good faith that it will have sufficient financial resources available to carry out, or to
have carried out, all of its obligations and activities contemplated under this Agreement;

 

(i)Licensee
and its Affiliates shall not develop, promote, market, distribute, or sell during the Initial Term and the Extended Term any product
in the Field that utilizes or otherwise contains Tβ4 or any derivatives, analogs or fragments thereof without Licensor’s
prior written approval, with the exception of peptide LKKTETQ that Licensee has licensed from the National Institute of Health
of the United States of America prior to the signing of this Agreement. The development, promotion, marketing, distribution and
sale of such peptide LKKTETQ by Licensee is subject to the provisions of 6.1(c); and

 

(j)Licensee
shall not reverse engineer or otherwise deconstruct any API or component part of finished Licensed Product for the purpose of
developing a product that would compete with the Licensed Product in the Field. 

 

10.3Disclaimer
of Warranties. EXCEPT AS SET FORTH IN THIS AGREEMENT, NEITHER PARTY GIVES ANY OTHER WARRANTY, EXPRESS OR IMPLIED REGARDING
THE LICENSED PRODUCTS, THE LICENSED KNOW-HOW, THE LICENSED PATENTS, OR THE SCOPE OR VALIDITY THEREOF. ALL OTHER WARRANTIES, INCLUDING,
WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT ARE EXPRESSLY DISCLAIMED.

 

 

Section
11. Indemnification

 

11.1Indemnification
by Licensor. Licensor shall defend, indemnify and hold harmless Licensee, its Affiliates, and its and their respective officers,
directors, employees and agents from and against any and all losses, liabilities, claims, damages, penalties, fines, costs and
expenses (including reasonable legal fees and other litigation costs, regardless of outcome) (collectively “Losses”)
arising as a result of any Product Liability Claims or mandatory or voluntary recall of the Licensed Product in any jurisdiction
of the Territory, in each case solely if and to the extent that such Losses are caused by (i) failure of any Licensed Product
provided by Licensor to conform to the relevant specifications therefor as specified with any clinical supplies provided to Licensee;
or (ii) any willful act or negligence of Licensor and/or its manufacturer of clinical supplies in relation to the Licensed
Product; provided, however, that Licensor shall have no obligation under this Section 11.1 if Licensee or any of its Affiliates,
Sublicensees or Distributors has been negligent, whether in testing, storing, handling or otherwise dealing with the Licensed
Product, or in case such Losses arise out of or are attributable to any breach of this Agreement by Licensee.

 

11.2Indemnification
by Licensee. Licensee shall defend, indemnify and hold harmless Licensor, its Affiliates, and its and their respective officers,
directors, employees and agents from and against any and all Losses arising as a result of any and all Third Party claims if and
to the extent that such Losses are caused by Licensee’s and/or any Affiliate’s, Sublicensee’s or Distributor’s
manufacture, storage, development, use, promotion, marketing, distribution, and sale of the Licensed Product, provided, however,
that Licensee shall have no obligation under this Section 11.2 if Licensor and/or its manufacturer have been negligent, whether
in manufacturing, testing, storing, handling or otherwise dealing with the Licensed Product, or in the case said claims arise
out of or are attributable to any breach of this Agreement by Licensor.

 

    	27*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    
 

 

11.3Procedures.
The Party seeking indemnification under this Section 11 (the “Indemnified Party”)
shall give prompt notice to the Party against whom indemnity is sought (the “Indemnifying Party”) of the assertion
or commencement of any claim for indemnification pursuant to this Section 11, and shall provide the Indemnifying Party such information
with respect thereto that the Indemnifying Party may reasonably request. The failure to give such notice will relieve the Indemnifying
Party of its indemnification obligations hereunder only to the extent that the Indemnifying Party has suffered actual prejudice
thereby. The Indemnifying Party shall assume and control the defense and settlement of any such action, suit or proceeding at
its own expense. The Indemnified Party shall, if requested by the Indemnifying Party, cooperate in all reasonable respects in
such defense, at the Indemnifying Party’s expense, subject to the following. The Indemnified Party will be entitled at its
own expense to participate in such defense and to employ separate counsel for such purpose. For so long as the Indemnifying Party
is diligently defending any action, suit or proceeding pursuant to this Section 11, the Indemnifying Party will not be liable
under this Section 11

for any settlement effected without its consent. No Party shall enter into
any compromise or settlement which commits the other Party to take, or to forbear to take, any action without the other Party’s
prior written consent.

 

11.4Consequential
Damages. NEITHER PARTY SHALL BE LIABLE TO OR OTHERWISE RESPONSIBLE TO THE OTHER PARTY HERETO FOR ANY LOSS OF PROFITS,
DIMINUTION IN VALUE, OR INCIDENTAL, INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES THAT ARISE OUT OF OR
RELATE TO THIS AGREEMENT OR THE PERFORMANCE OR BREACH HEREOF OR OTHERWISE AND WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR
OTHERWISE; PROVIDED, THAT, THE FOREGOING LIMITATION SHALL NOT APPLY: (I) TO A PARTY’S INDEMNIFICATION OBLIGATIONS
PURSUANT TO SECTIONS 11.1 AND 11.2 ABOVE; (II) TO ANY GROSSLY NEGLIGENT ACT OR WILLFUL MISCONDUCT OF A PARTY; OR (III)
TO A PARTY’S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS PURSUANT TO SECTION 9 HEREOF.

 

11.5Insurance.

 

(a)General
Liability. Each Party shall maintain as and when available comprehensive general liability insurance, including blanket contractual
liability insurance through the Term and for five (5) years thereafter, which insurance shall afford limits of not less than $5,000,000
for each occurrence for bodily injury liability, personal injury liability, products liability, property damage liability, contractual
liability and completed operations liability. Each Party shall ensure that such insurance will include coverage for defense costs.

 

    	28*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

(b)Product
Liability. Each Party shall maintain as and when available and thereafter throughout the Term product liability insurance
on commercially standard terms for the pharmaceutical manufacturing industry, with a reputable insurer, in an amount not less
than $5,000,000 per occurrence and $5,000,000 in the annual aggregate.

 

(c)Certificate
of Insurance. Each Party will provide, upon request and as and when available, the other with certificate(s) of insurance
evidencing the above and showing the name of the issuing company, the policy number, the effective date, the expiration date and
the limits of liability. Each Party shall cause its insurance policy to name the other Party hereto as an additional insured.
Each Party’s general liability insurance policy shall contain a waiver of subrogation rights which that Party’s insurer(s)
may have against the other Party.

  

Section
12. Term and Termination

 

12.1Term
and Rules Post Expiration:

 

(a)This Agreement
shall enter into full force and effect at the Effective Date and subject to the renewal options (the “Renewal Options”)
as provided under this Section 12, the initial term of this Agreement shall be three (3) years from the Effective Date (the “Initial
Term”). Licensor hereby irrevocably grants the Renewal Options to the Licensee, which shall be solely exercisable by
the Licensee at its own discretion, to renew this Agreement on the same terms and conditions under this Agreement for another
extended term of three (3) years (the “Extended Term”), and such Renewal Options can be exercised by the Licensee
for not more than six (6) times on each of the date falling immediately before the expiry date of the Initial Term (for the first
time of the exercise of the Renewal Option) or the expiry date of each of the Extended Term (for the second time of the exercise
of the Renewal Option and onward). The Parties hereto acknowledge and agree that the exercise of the Renewal Option by the Licensee
shall, where applicable, be subject to further independent shareholder approval and any other requirements under the Listing Rules
at each time when the Renewal Option is exercised. This Agreement shall remain in force on a country-by-country basis and on a
Licensed Product-by-Licensed Product basis until the expiration of the Initial Term (if the Renewal Options are not exercised
by the Licensee) or the expiration of the Extended Term (if the Renewal Options are exercised by the Company) (the “Expiry
Date”). For the avoidance of doubt and subject to the provisions of Section 12.3 below, Licensor shall have no right
to refuse to renew this Agreement if the Licensee chooses to exercise the Renewal Options. The Parties hereto hereby confirm that
if the Licensee exercises its Renewal Options no renewal agreement is required to be entered into, and the terms of this Agreement
shall remain in full force and effect during the Extended Term(s).

 

(b)If the
Initial Term and the Extended Term cover the entire Relevant Period with respect to any given Licensed Product, the Licensee shall,
upon the expiration of the Relevant Period, have, with respect to such Licensed Product, a royalty-free, fully paid up, perpetual
and irrevocable license, with the right to sublicense and/or assign, for the use of the Licensed Patents and the Licensed Know-How.
For the avoidance of doubt, on a Licensed Product-by-Licensed Product basis, the Licensee shall be entitled to retain in full
all profits generated from the Licensed Patents and the Licensed Know-How after expiration of the Relevant Period.

 

    	29*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

12.2Termination
and Rules Post Termination:

 

(a)In the
event either Party is in breach of any material obligation hereunder (the “Breaching Party”), the non
breaching Party may give written notice to the Breaching Party specifying the claimed particulars of such breach, and in the event
such material breach is not cured, within sixty (60) days following the date of such written notification, without prejudice to
any other rights and remedies available at any time to the non breaching Party, the non breaching Party shall have the right thereafter
to terminate this Agreement by giving thirty (30) days prior written notice to the Breaching Party to such effect.

 

(b)Termination
for Governmental Action. Either Party may terminate this Agreement upon ten (10) days’ prior written notice in
the event that any Governmental Authority takes any action or raises any objection (“Governmental Action”)
that prevents Licensee, for a period of not less than one hundred eighty (180) days, from importing, exporting, purchasing or
selling the Licensed Product in the Territory, or that has the effect of making Licensor’s manufacture of the Licensed Product
unlawful.

 

(c)Termination
by Licensor for Patent Challenge. Licensor may terminate this Agreement in its entirety immediately upon written notice to
Licensee if Licensee or its Affiliates or Sublicensees (directly or indirectly, individually or in association with any person
or entity) challenges the validity, enforceability or scope of any Licensed Patents anywhere in the world.

 

(d) Termination
or Conversion Pursuant to the PHS License. In the event that PHS terminates the PHS License under Article 13 therein or rescinds
a Licensed Field of Use (as that term is defined in the PHS License) that includes any portion of the Field in which Licensee
is licensed hereunder, Licensee may, at its option:

 

(i)terminate
this Agreement; or

 

(ii)convert
this Agreement to a license between Licensee, on the one hand, and Licensor and PHS, on the other hand, with such conversion subject
to the approval of PHS, which shall not be unreasonably withheld, and contingent upon Licensee’s acceptance of all of the
provisions of the PHS License.

 

(e)Termination
for Bankruptcy. To the extent permitted under applicable Law, if at any time during the term of this Agreement, an Event of
Bankruptcy (as defined below) relating to either Party (the “Bankrupt Party”) occurs, the other Party (the “Other
Party”) shall have, in addition to all other legal and equitable rights and remedies available hereunder, the option to
terminate this Agreement upon sixty (60) days written notice to the Bankrupt Party. It is agreed and understood that if the Other
Party does not elect to terminate this Agreement upon the occurrence of an Event of Bankruptcy, except as may otherwise be agreed
with the trustee or receiver appointed to manage the affairs of the Bankrupt Party, the Other Party shall continue to make all
payments required of it under this Agreement as if the Event of Bankruptcy had not occurred, the Bankrupt Party shall not have
the right to terminate any license granted herein. The term “Event of Bankruptcy” means: (i) filing in any court or
agency pursuant to any statute or regulation of any state or country, a petition in bankruptcy or insolvency or for reorganization
or for an arrangement or for the appointment of a receiver or trustee of the Bankrupt Party or of its assets; (ii) proposing a
written agreement of composition or extension of a Bankrupt Party’s debts; (iii) being served with an involuntary petition
against the Bankrupt Party, filed in any insolvency proceeding, and such petition shall not be dismissed within sixty (60) days
after the filing thereof; (iv) proposing or being a party to any dissolution or liquidation when insolvent; or (v) making an assignment
for the benefit of creditors. Without limitation, the Bankrupt Party’s rights under this Agreement shall include those rights
afforded by 11 U.S.C. § 365(n) of the United States Bankruptcy Code (the “Bankruptcy Code”) and any successor
thereto. If the bankruptcy trustee of a Bankrupt Party as a debtor or debtor-in-possession rejects this Agreement under 11 U.S.C.
§ 365(o) of the Bankruptcy Code, the Other Party may elect to retain its rights licensed from the Bankrupt Party hereunder
(and any other supplementary agreements hereto) for the duration of this Agreement and avail itself of all rights and remedies
to the full extent contemplated by this Agreement and 11 U.S.C. § 365(n) of the Bankruptcy Code, and any other relevant laws.

    	30*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

12.3Effects
of Termination.

 

(a)Return
of Material. In the event of early termination of this Agreement for any reason: (i) all rights and licenses granted to Licensee
under this Agreement shall terminate (including all rights and licenses with respect to Licensed Patents and Licensed Know-How),
and (ii) Licensee shall transfer to Licensor all data, files, records, information and other materials (including clinical supplies
of Licensed Product and including the originals of any registrations and/or importation documents as specified in Section 7.4)
in its possession or control relating to, containing or comprising the Licensed Product, including Licensor’s Confidential
Information.

 

(b)Transfer
of Materials. In the event of early termination of this Agreement in accordance with Section 12.2 ( c ) above:

 

(i)to the
extent not transferred pursuant to Section 12.3(a), Licensee shall provide to Licensor a copy of any and all documentation and
data owned by Licensee and in tangible form at the time of termination of the Agreement that has been generated with respect to
the Licensed Product and is necessary to enable Licensor to continue development of a Licensed Product and the commercialization
thereof in the Territory (collectively, the “Licensee Product Data”), and Licensor may use such Licensee Product
Data at its discretion on an exclusive basis, to the extent necessary to enable Licensor, its Affiliates and Third Parties on
behalf of Licensor or its Affiliates to continue to develop and commercialize a Licensed Product in the Territory; and

 

(ii)if such
termination occurs after a Licensed Product has received Regulatory Approval, Licensee shall, if permitted under applicable Law,
promptly transfer and deliver to Licensor original copies of any and all Regulatory Approvals obtained in connection with the
Licensed Product in the Territory (including any and all official registrations, licenses, permits, certificates, and/or importation
documents issued by Regulatory Authorities in the Territory), as well as any and all regulatory documentation and applications
for Regulatory Approval submitted to Regulatory Authorities in the Territory in connection with the Licensed Product; Licensor
shall pay Licensee’s direct, out-of-pocket costs for compliance with this Section 12.3(b)(ii); and

 

 

    	31*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

 

(iii)to
the extent that any Regulatory Approval is issued in the name of Licensee, its Affiliates, Sublicensees or other designee, Licensee
shall, to the extent permitted by applicable Law, promptly assign or procure the assignment to Licensor (or its designee) such
Regulatory Approvals, and in the event assignment is not permitted under applicable Law or cannot be carried out for any other
reason, the Licensee shall take all steps that are necessary and/or desirable to assist Licensor to obtain such Regulatory Approvals
in the name of Licensor (or its designee) in the Territory, with such actions including without limitation coordinating with the
applicable Regulatory Authority, furnishing all necessary information and documents in respect thereof, and promptly cancelling
and terminating (as necessary) all Regulatory Approvals held by the Licensee, its Affiliate(s), Sublicensee(s) and/or other designee(s)
which are not otherwise assignable or transferable to the Licensor (or its designee); Licensor shall pay Licensee’s direct,
out-of-pocket costs for compliance with this Section 12.3(b)(iii); and

 

(iv)Licensee
shall assign (or cause its Affiliates to assign) to Licensor all agreements with any Third Party with respect to the conduct of
clinical trials for the Licensed Product, including agreements with contract research organizations, clinical sites and investigators,
unless expressly prohibited by any such agreement or unless such agreement covers clinical trials for products in addition to
the Licensed Products (in which case Licensee shall cooperate with Licensor in all reasonable respects to secure the consent of
such Third Party to such assignment or to the conclusion of a new agreement between the Licensor and the Third Party on terms
substantially similar to the agreement between Licensee and the Third Party), and Licensor shall assume all obligations under
all such agreements.

 

(c)Survival
of Sublicenses. All sublicenses granted by Licensee to Sublicensees shall survive termination of this Agreement, and Licensor
shall assume all such sublicenses as the Licensor thereunder in accordance with the terms of such sublicenses; provided, however,
that Licensor may elect to terminate any such sublicenses, and Licensor shall not be required under this Section 12 to assume
obligations under any such sublicense that are greater in scope than those set forth in this Agreement.

 

(d)Remedies
for Termination. Expiration or termination of this Agreement by either Party shall not affect any claim, demand, liability
or right of a Party arising pursuant to this Agreement prior to such termination or expiration hereof.

 

12.4Survival.
The following provisions shall survive the termination or expiration of this Agreement: Sections 6 (with respect to Net Sales
made prior to expiration or termination of this Agreement), 7.3, 7.6(a), 9, 11, 12.3, 12.4, 13, and all provisions of the PHS
License that are binding on Licensee and are specified in the PHS License as surviving the expiration or termination thereof.

 

 

    	32*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    

Section
13. Miscellaneous

 

13.1Waiver.
The waiver by any Party of a breach of any provision of this Agreement shall not operate, or be construed, as a waiver of any
subsequent breach.

 

13.2Modification.
No change, modification, or waiver of any term of this Agreement shall be valid unless it is in writing and signed by both Parties.

 

13.3Entire
Agreement. This Agreement (including all exhibits and attachments hereto, all of which are incorporated herein by reference)
constitutes the entire agreement between the Parties (and their Affiliates) with respect to the subject matter hereof and thereof,
and supersedes all prior agreements and understandings, whether oral or written, between the Parties, except for the Confidential
Disclosure Agreement described in Section 9.7.

 

13.4English
Language. This Agreement is written and executed in the English language. Any translation into any other language shall not
be an official version of this Agreement and in the event of any conflict in interpretation between the English version and such
translation, the English version shall prevail.

 

13.5Assignment.
Licensor and Licensee shall be entitled to assign its rights or delegate its obligations hereunder to any of its Affiliates or
to a Third Party upon (30) thirty days’ prior written notice to Licensor. All sublicenses granted to Affiliates or Third
Parties pursuant to this Section 13.5 shall be subject to all terms, conditions, obligations and covenants of this Agreement
and all applicable provisions of the PHS License. In addition, each Party hereby consents to the other Party’s assignment
of its rights and obligations under this Agreement in connection with a Change of Control of such Party. No such assignment
shall remove or mitigate the obligations or liability of the assigning Party unless otherwise agreed in writing by the non-assigning
Party. For clarity, if Licensor is involved in a Change of Control with a Third Party: (a) the intellectual property rights of
such Third Party existing as of the date of closing of such Change of Control or developed outside of any activities under this
Agreement (if such Third Party becomes the assignee of this Agreement); or (b) the intellectual property rights of such Third
Party (if such Third Party remains an Affiliate of Licensor), shall be automatically excluded from the definitions of Licensed
Patents and Licensed Know-How licensed to Licensee under this Agreement.

 

13.6Independent
Contractor. This Agreement shall not be construed as constituting a partnership, joint venture or any other form of legal
association that would impose liability upon one Party for the act or failure to act of the other Party, or as providing either
Party with the right, power or authority (express or implied) to create any duty or obligation of the other Party.

 

13.7Third
Party Beneficiaries. Any sublicense granted by Licensee to an Affiliate or Third Party pursuant to Section 2.1(c) is
intended by the Parties to be a third party beneficiary of this Agreement; provided that such Sublicense is in compliance
with all of its obligations under any such sublicense to the extent that such obligations are required under this Agreement.
Except as expressly provided in this Section 13.7, the Parties do not intend, nor will any Section of this Agreement be
interpreted, to create for any person any third party beneficiary rights.

 

    	33*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    
 

 

13.8Disputes.
Disputes regarding the scope, validity or enforceability of Patents are excluded from this Section 13.8.

 

(a)Good
Faith Negotiations by Officers. In the event of disputes between the Parties arising out of or relating to this Agreement,
or the breach, termination (other than termination for convenience in accordance with Sections 12.2(a) and 12.3(d)) or invalidity
thereof, a Party seeking to resolve such dispute will, by written notice to the other, have such dispute referred to their respective
chief executive officers, for attempted resolution by good faith negotiations within fourteen (14) days after such notice is received.

 

(b)Mediation.
In the event that the Parties are unable to resolve a dispute through good faith negotiations pursuant to Section 13.8(a)

, the Parties agree to submit such dispute to non-binding mediation using
an industry expert mutually acceptable to the Parties. The costs of any such mediation shall be shared by the Parties equally.

 

(c)Arbitration.
If all good faith attempts to resolve a dispute through negotiations and mediation pursuant to Sections 13.8(a) and (b) have failed
after sixty (60) days from notice provided pursuant to Section 13.8(a), then upon the request of either Party, the dispute shall
be finally resolved by binding arbitration administered by I.C.C. Arbitration (the “ICC Rules”).

 

(i)The arbitration
shall be conducted by a panel of three neutral arbitrators (the “Panel”) appointed in accordance with the ICC
Rules.

 

(ii)The
arbitration proceedings shall take place in Geneva, Switzerland. The arbitral proceedings and all pleadings shall be in the English
language. Any written evidence originally in a language other than English shall be submitted in English translation accompanied
by the original or true copy thereof.

 

(iii)The
Panel shall have the power to decide all questions of arbitrability.

 

(iv)At the
request of either Party, the Panel will enter an appropriate protective order to maintain the confidentiality of information produced
or exchanged in the course of the arbitration proceedings.

 

(v)The Panel
is empowered to award any remedy allowed by law, including monetary damages, prejudgment interest and punitive damages, and to
grant final, complete, interim or interlocutory relief, including injunctive relief.

 

(vi)The
Parties may apply to a court of competent jurisdiction within the Hong Kong, or the United States for a temporary restraining
order, preliminary injunction, or other interim or conservatory relief, as necessary, without breach of this arbitration agreement
and without any abridgment of the powers of the arbitrators. Judgment on the award rendered by the Panel may be entered in any
court having jurisdiction thereof. Each Party hereby waives any defenses it may have to the personal jurisdiction and venue of
such courts to resolve such disputes, including without limitation the defense of forum non conveniens, and each Party
agrees not to file any motion to seek any relief under any forum non conveniens defense.

 

 

    	34*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    
 

 

(vii)Each
Party shall bear its own legal fees arising in connection with the dispute. The Panel may assess costs, fees and expenses of the
ICC and the Panel to the Parties in the manner the Panel deems appropriate under the circumstances.

 

13.9Notices.
Except as otherwise provided herein, all notices or other communications hereunder shall be deemed sufficient if given in writing,
via registered mail (return receipt requested), postage paid, or by reputable high speed delivery service (e.g., FedEx)
or by courier addressed to the appropriate Party at the address set forth below, or at such other place as such Party may designate
in writing to the other Party.

 

	 

        If
        to Licensor:
	RegeneRx Biopharmaceuticals,
        Inc.

        15245 Shady Grove Road

        Suite 470

        Rockville, Maryland 20850

        U.S.A.

        Attn:  President
        and CEO

        Phone: 301.208.9191

        Fax:  (301) 208-9191

	 	 
	With
    a copy to:	Ken
        Krisko, Esq.

        Cooley LLP

        One Freedom
        Square

        Reston Town Center 

        11951 Freedom Drive

        Reston, VA  20190-5656
        

        Direct: (703) 456-8187

        Fax: (703)
        456-8100

	 	 
	If
    to Licensee:	Lee’s
        Pharmaceutical (HK) Limited

        Unit 110-111, Bioinformatics
        Center

        No. 2 Science Park West
        Avenue

        Hong Kong Science Park

        Shatin, Hong Kong

        Attn: Benjamin Li

        Fax.: 00852 23141708

	 	 

All such notices
shall be effective upon receipt.

 

13.10Governing
Law. This Agreement shall be governed and construed in accordance with the laws of New York, USA without regard to
its principles of conflict of laws. The Parties agree to exclude the application to this Agreement of the United Nations Convention
on Contracts for the International Sale of Goods.

 

    	35*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    
 

 

13.11Severability.
The provisions of this Agreement are severable. If any item or provision of this Agreement shall to any extent be invalid or unenforceable,
the remainder of this Agreement shall not be affected thereby, and each term and provision of this Agreement shall be valid and
shall be enforced to the fullest extent permitted by law. The Parties will use diligent good faith efforts to revise this Agreement
as and to the extent reasonably necessary to effectuate their original intent and purpose under this Agreement.

 

13.12Jurisdiction
and Venue. In connection with any dispute arising hereunder or in connection with the subject matter hereof
that is not settled in accordance with Section 13.8

, each of the Parties hereby consents to the exclusive jurisdiction and venue
of the courts of Geneva, Switzerland. Each Party hereby irrevocably waives any right that it may have to assert that any such
court lacks jurisdiction or that such forum is not convenient.

 

end
of page

[signatures appear on following page]

 

    	36*** Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

    	 

    
 

IN WITNESS WHEREOF, this Agreement
has been executed by a duly authorized officer of each Party as of the Effective Date.

 

 

	 	 	Lee’s Pharmaceutical (HK) Limited
	 	 	 
	 	 	 
	 	 	By:  /s/ Benjamin Li
	 	 	Name: Benjamin Li
	 	 	Title: Chief Executive Officer
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	RegeneRx Biopharmaceuticals, Inc.
	 	 	 
	 	 	 
	 	 	By:  /s/J.J. Finkelstein
	 	 	Name: J.J. Finkelstein
	 	 	Title: President & CEO

 

 

    	 

    	 

    
  

Exhibits

 

 

 

Exhibit A - Licensed
Patents: to be filled by Regenerx

Exhibit B - PHS
License: to be filled by Regenerx

Exhibit C - PHS
License Terms Applicable to Licensee

 

 

    	 

    	 

    
 

  

Exhibit
A

 

LICENSED
PATENTS

 

 

 

 

 

 

    	A-1

    	 

    

Exhibit B

 

PHS LICENSE

 

Previously
filed as Exhibit 10.1 to Annual Report on Form 10-KSB for the year ended December 31, 2000 (File No. 001-15070) (Filed April
2, 2001)

 

    	B-2

    	 

    

Exhibit C

 

PHS LICENSE
TERMS

APPLICABLE
TO LICENSEE

 

For the purposes of this Exhibit C
only, terms in bold have the meanings given such terms in the PHS License.

 

 

		5.01	PHS reserves on behalf of the
                                                             Government an irrevocable, nonexclusive, non-transferable,
                                                             royalty-free license for the practice of all inventions licensed
                                                             under the Licensed Patent Rights throughout the world by or
                                                             on behalf of the Government and on behalf of any foreign government
                                                             or international organization pursuant to any existing or future
                                                             treaty or agreement to which the Government is a signatory.
                                                             Prior to the First Commercial Sale, Licensee agrees
                                                             to provide PHS reasonable quantities of Licensed Products
                                                             or materials made through the Licensed Processes solely
                                                             for PHS research use and not for purposes of commercial development,
                                                             manufacture or distribution, at a price equal to Licensee’s
                                                             cost of such.

 

		5.02	Licensee agrees that products
                                                             used or sold in the United States embodying Licensed Products
                                                             or produced through use of Licensed Processes shall be
                                                             manufactured substantially in the United States, unless a written
                                                             waiver is obtained in advance from PHS.

 

		5.03	Licensee acknowledges that
                                                             PHS may enter into future Cooperative Research and Development
                                                             Agreements (CRADAs) under the Federal Technology Transfer Act of
                                                             1986 that relate to the subject matter of this Agreement.
                                                             PHS agrees to notify Licensee, as soon as is practical
                                                             of any proposed CRADA that relates to the subject matter of this
                                                             Agreement. Licensee agrees not to unreasonably deny
                                                             requests for a Research License from such future collaborators
                                                             with PHS when acquiring such rights is necessary in order
                                                             to make a Cooperative Research and Development Agreement (CRADA)
                                                             project feasible. As of the effective date of this Agreement,
                                                             Licensee requests that Licensee have an opportunity
                                                             to join as a party to any proposed Cooperative Research and Development
                                                             Agreement (CRADA).

 

		5.04	In addition to the reserved license
                                                             of Paragraph 5.01 above, PHS reserves the right to grant such
                                                             nonexclusive Research Licenses directly or to require Licensee
                                                             to grant nonexclusive Research Licenses on commercially
                                                             reasonable terms. The purpose of this Research License is
                                                             to encourage basic research, whether conducted at an academic or
                                                             corporate facility. In order to safeguard the Licensed Patent
                                                             Rights, however, PHS shall consult with Licensee
                                                             before granting to commercial entities a Research License
                                                             or providing to them research samples of Licensed Products
                                                             or materials made through the Licensed Processes, provided
                                                             however that PHS will not provide materials obtained from
                                                             Licensee under Paragraph 5.01 above to third parties, except
                                                             with Licensee’s prior written consent, which shall not
                                                             be unreasonably withheld.

 

    	C-3

    	 

    

 

		8.01	Licensee agrees to keep accurate
                                                             and correct records of Licensed Products made, used, sold,
                                                             or imported and Licensed Processes practiced under
                                                             this Agreement appropriate to determine the amount of royalties
                                                             due PHS. Such records shall be retained for at least five
                                                             (5) years following a given reporting period and shall be available
                                                             during normal business hours upon five (5) business days prior written
                                                             notice from PHS to Licensee for inspection at the expense
                                                             of PHS by an accountant or other designated auditor selected
                                                             by PHS for the sole purpose of verifying reports and payments
                                                             hereunder. The accountant or auditor shall only disclose to PHS
                                                             information relating to the accuracy of reports and payments
                                                             made under this Agreement. If an inspection shows an under reporting
                                                             or underpayment in excess of five percent (5%) for any twelve (12)
                                                             month period, then Licensee shall reimburse PHS for
                                                             the cost of the inspection at the time Licensee pays the unreported
                                                             royalties, including any late charges as required by Paragraph 9.08
                                                             of this Agreement. All payments required under this Paragraph
                                                             shall be due within thirty (30) days of the date PHS provides
                                                             Licensee notice of the payment due.

 

		10.01	Licensee shall use its
                                                              reasonable best efforts to bring the Licensed Products and
                                                              Licensed Processes to Practical Application. “Reasonable
                                                              best efforts” for the purposes of this provision shall include
                                                              substantial adherence to the Commercial Development Plan
                                                              at Appendix F and substantial performance of the Benchmarks
                                                              at Appendix E as may be amended from time to time by mutual written
                                                              consent. The efforts of sublicensees and Affiliates shall be considered
                                                              the efforts of Licensee. To the extent that the Benchmarks
                                                              or development obligations set forth in Appendix E differ from
                                                              or conflict with those set forth in the Commercial Development
                                                              Plan in Appendix F, Appendix E shall be considered to supersede
                                                              Appendix F and the Commercial Development Plan in Appendix F shall
                                                              be amended to be consistent with Appendix E.

 

		10.02	Upon the First Commercial Sale,
                                                              until the expiration of this Agreement, Licensee shall
                                                              use its reasonable best efforts to make Licensed Products
                                                              and Licensed Processes reasonably accessible to the United
                                                              States public.

 

		12.05	Licensee shall indemnify and
                                                              hold PHS, its employees, students, fellows, agents, and consultants
                                                              (the “Indemnified Parties”) harmless from and
                                                              against all liability, demands, damages, expenses, and losses, including
                                                              but not limited to death, personal injury, illness, or property
                                                              damage (the “Indemnified Losses”) suffered by
                                                              an Indemnified Party in connection with or arising out of
                                                              a) the use by or on behalf of Licensee, its sublicensees,
                                                              directors, employees, or third parties of any Licensed Patent
                                                              Rights, or b) the design, manufacture, distribution, or
                                                              use of any Licensed Products, Licensed Processes or
                                                              materials by Licensee, or other products or processes developed
                                                              in connection with or arising out of the Licensed Patent Rights.
                                                              Licensee agrees to maintain a liability insurance program
                                                              consistent with sound business practice. Notwithstanding any other
                                                              provision to the contrary, Licensee shall have no obligation
                                                              to indemnify an Indemnified Party from an Indemnified
                                                              Loss in connection with or arising out of the design, manufacture,
                                                              distribution or use of any Licensed Product or Licensed
                                                              Process by or on behalf of the Indemnified Party.

 

    	C-4

    	 

    
 

 

		13.05	PHS shall specifically have
                                                              the right to terminate or, with Licensee’s consent,
                                                              modify, at its option, this Agreement, if PHS determines
                                                              that the Licensee: 1) is not using its reasonable best
                                                              efforts to effectuate the Commercial Development Plan submitted
                                                              with its request for a license and the Licensee cannot otherwise
                                                              demonstrate to PHS’s satisfaction that the Licensee
                                                              has taken, or can be expected to take within a reasonable time,
                                                              effective steps to achieve Practical Application of the Licensed
                                                              Products or Licensed Processes; 2) has not used
                                                              its reasonable best efforts to achieve the Benchmarks as
                                                              my be modified under Paragraph 9.02; 3) has wilfully made a
                                                              false statement of, or wilfully omitted, a material fact in the
                                                              license application or in any report required by this Agreement;
                                                              4) has committed a material breach of a covenant or agreement
                                                              contained in the license; 5) is not keeping Licensed Products
                                                              or Licensed Processes reasonably available to the public
                                                              after commercial use commences; 6) cannot reasonably satisfy
                                                              unmet health and safety needs; or 7) cannot reasonably justify
                                                              a failure to comply with the domestic production requirement of
                                                              Paragraph 5.02 unless waived. In making this determination, PHS
                                                              will take into account the normal course of commercial development
                                                              programs conduct with sound and reasonable business practices and
                                                              judgment and the annual reports submitted by Licensee under
                                                              Paragraph 9.02. Prior to invoking this right, PHS shall give
                                                              written notice to Licensee providing Licensee specific
                                                              notice of, and a ninety (90) day opportunity to respond to, PHS’s
                                                              concerns as to the previous items 1) to 7). If Licensee
                                                              fails to alleviate PHS’s concerns as to the previous
                                                              items 1) to 7) or fails to initiate corrective action to PHS’s
                                                              reasonable satisfaction, PHS may terminate this Agreement.

 

		13.07	PHS reserves the right according
                                                              to 35 U.S.C. § 209(1)(4) to terminate or modify this Agreement
                                                              if it is determined that such action is necessary to meet requirements
                                                              for public use specified by federal regulations issued after the
                                                              date of the license and such requirements are not reasonably satisfied
                                                              by Licensee.

 

		13.08	Within thirty (30) days of receipt
                                                              of written notice of PHS’s unilateral decision to modify
                                                              or terminate this Agreement, Licensee may, consistent
                                                              with the provisions of 37 C.F.R. 404.11, appeal the decision by
                                                              written submission to the designated PHS official. The decision
                                                              of the designated PHS official shall be the final agency
                                                              decision. Licensee may thereafter exercise any and all administrative
                                                              or judicial remedies that may be available.

 

		13.09	Within ninety (90) days of expiration
                                                              or termination of this Agreement under this Article 13, a
                                                              final report shall be submitted by Licensee. Any royalty
                                                              payments, including those incurred but not yet paid (such as the
                                                              full minimum annual royalty), and those related to patent expense,
                                                              due to PHS shall become immediately due and payable upon
                                                              termination or expiration. If terminated under this Article 13,
                                                              sublicensees may elect to convert their sublicenses to direct licenses
                                                              with PHS and Licensee pursuant to Paragraph 4.03.

 

    	C-5

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