Document:

cytx-ex102_7.htm

Exhibit 10.2

 

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of December 22, 2016, by and between CYTORI THERAPEUTICS, INC., a Delaware corporation (the "Company"), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability company (together with it permitted assigns, the “Buyer”).  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement by and between the parties hereto, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the "Purchase Agreement").

 

WHEREAS:

 

The Company has agreed, upon the terms and subject to the conditions of the Purchase Agreement, to sell to the Buyer up to Twenty Million Dollars ($20,000,000) of Purchase Shares and to induce the Buyer to enter into the Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the "Securities Act"), and applicable state securities laws.

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Buyer hereby agree as follows:

 

1.DEFINITIONS.

 

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

 

a."Investor" means the Buyer, any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement in accordance with Section 9 and who agrees to become bound by the provisions of this Agreement, and any transferee or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement in accordance with Section 9 and who agrees to become bound by the provisions of this Agreement.

 

b."Person" means any individual or entity including but not limited to any corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

c."Register," "registered," and "registration" refer to a registration effected by preparing and filing one or more registration statements of the Company in compliance with the Securities Act and pursuant to Rule 415 under the Securities Act or any successor rule providing for offering securities on a continuous basis ("Rule 415"), and the declaration or ordering of effectiveness of such registration statement(s) by the United States Securities and Exchange Commission (the "SEC").

 

d."Registrable Securities" means all of the Initial Commitment Shares, all of the Additional Commitment Shares, and all of the Purchase Shares that may, from time to time, be issued or become issuable to the Investor under the Purchase Agreement (without regard to any limitation or restriction on purchases), and any and all shares of capital stock issued or issuable with respect to the Purchase Shares, the Commitment Shares or the Purchase Agreement as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, without regard to any limitation on purchases under the Purchase Agreement.

 

e."Registration Statement" means one or more registration statements of the Company covering only the sale of the Registrable Securities.

 

2.REGISTRATION.

 

a.Mandatory Registration.  The Company shall, within ten (10) Business Days after the date hereof, file with the SEC an initial Registration Statement covering the maximum number of Registrable Securities as shall be permitted to be included thereon in accordance with applicable SEC rules, regulations and interpretations so as to permit the resale of such Registrable Securities by the Investor under Rule 415 under the Securities Act at then prevailing market prices (and not fixed prices), as mutually determined by both the Company and the Investor in consultation with their respective legal counsel, subject to the aggregate number of authorized shares of the Company’s Common Stock then available for issuance in its Certificate of Incorporation. The initial Registration Statement shall register only the Registrable Securities. The Investor and its counsel shall have a reasonable opportunity to review and comment upon such Registration Statement and any amendment or supplement to such Registration Statement and any related prospectus prior to its filing with the SEC, and the Company shall give due consideration to all such comments.  The Investor shall furnish all information reasonably requested by the Company for inclusion therein. The Company shall use its best efforts to have the Registration Statement and any amendment declared effective by the SEC at the earliest possible date. The Company shall use reasonable best efforts to keep the Registration Statement effective pursuant to Rule 415 promulgated under the Securities Act and available for the resale by the Investor of all of the Registrable Securities covered thereby at all times until the date on which the Investor shall have resold all the Registrable Securities covered thereby and no Available Amount remains under the Purchase Agreement (the "Registration Period"). The Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.

 

b.Rule 424 Prospectus.  The Company shall, as required by applicable securities regulations, from time to time file with the SEC, pursuant to Rule 424 promulgated under the Securities Act, the prospectus and prospectus supplements, if any, to be used in connection with sales of the Registrable Securities under the Registration Statement.  The Investor and its counsel shall have a reasonable opportunity to review and comment upon such prospectus prior to its filing with the SEC, and the Company shall give due consideration to all such comments.  The Investor shall use its reasonable best efforts to comment upon such prospectus within one (1) Business Day from the date the Investor receives the final pre-filing version of such prospectus. 

 

c.Sufficient Number of Shares Registered.  In the event the number of shares available under the Registration Statement is insufficient to cover all of the Registrable Securities, the Company shall amend the Registration Statement or file a new Registration Statement (a ”New Registration Statement”), so as to cover all of such Registrable Securities (subject to the limitations set forth in Section 2(a)) as soon as practicable, but in any event not later than ten (10) Business Days after the necessity therefor arises, subject to any limits that may be imposed by the SEC pursuant to Rule 415 under the Securities Act.  The Company shall use its reasonable best efforts to cause such amendment and/or New Registration Statement to become effective as soon as practicable following the filing thereof.

 

  d.           Offering.  If the staff of the SEC (the “Staff”) or the SEC seeks to characterize any offering pursuant to a Registration Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such Registration Statement to become effective and be used for resales by the Investor under Rule 415 at then-prevailing market prices (and not fixed prices), or if after the filing of the initial Registration Statement with the SEC pursuant to Section 2(a), the Company is 

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otherwise required by the Staff or the SEC to reduce the number of Registrable Securities included in such initial Registration Statement, then the Company shall reduce the number of Registrable Securities to be included in such initial Registration Statement (with the prior consent, which shall not be unreasonably withheld, of the Investor and its legal counsel as to the specific Registrable Securities to be removed therefrom) until such time as the Staff and the SEC shall so permit such Registration Statement to become effective and be used as aforesaid.  In the event of any reduction in Registrable Securities pursuant to this paragraph, the Company shall file one or more New Registration Statements in accordance with Section 2(c) until such time as all Registrable Securities have been included in Registration Statements that have been declared effective and the prospectus contained therein is available for use by the Investor.  Notwithstanding any provision herein or in the Purchase Agreement to the contrary, the Company’s obligations to register Registrable Securities (and any related conditions to the Investor’s obligations) shall be qualified as necessary to comport with any requirement of the SEC or the Staff as addressed in this Section 2(d).

 

3.RELATED OBLIGATIONS.

 

With respect to the Registration Statement and whenever any Registrable Securities are to be registered pursuant to Section 2 including on any New Registration Statement, the Company shall use its reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

a.The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any registration statement and the prospectus used in connection with such registration statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep the Registration Statement or any New Registration Statement effective at all times during the Registration Period, and, during such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any New Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the Investor as set forth in such registration statement.

 

b.The Company shall permit the Investor to review and comment upon the Registration Statement or any New Registration Statement and all amendments and supplements thereto at least two (2) Business Days prior to their filing with the SEC, and not file any document in a form to which Investor reasonably objects.  The Investor shall use its reasonable best efforts to comment upon the Registration Statement or any New Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date the Investor receives the final version thereof.  The Company shall furnish to the Investor, without charge any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New Registration Statement.

 

c.Upon request of the Investor, the Company shall furnish to the Investor, (i) promptly after the same is prepared and filed with the SEC, at least one copy of such registration statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any registration statement, a copy of the prospectus included in such registration statement and all amendments and supplements thereto (or such other number of copies as the Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by the 

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Investor. For the avoidance of doubt, any filing available to the Investor via the SEC’s EDGAR system shall be deemed “furnished to the Investor” hereunder.

 

d.The Company shall use reasonable best efforts to (i) register and qualify the Registrable Securities covered by a registration statement under such other securities or "blue sky" laws of such jurisdictions in the United States as the Investor reasonably requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction.  The Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky" laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

 

e.As promptly as practicable after becoming aware of such event or facts, the Company shall notify the Investor in writing of the happening of any event or existence of such facts as a result of which the prospectus included in any registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and promptly prepare a supplement or amendment to such registration statement to correct such untrue statement or omission, and deliver a copy of such supplement or amendment to the Investor (or such other number of copies as the Investor may reasonably request).  The Company shall also promptly notify the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a registration statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to the Investor by email or facsimile on the same day of such effectiveness and by overnight mail), (ii) of any request by the SEC for amendments or supplements to any registration statement or related prospectus or related information, and (iii) of the Company's reasonable determination that a post-effective amendment to a registration statement would be appropriate.

 

f.The Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of any registration statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

g.The Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities on the Principal Market.  The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

 

h.The Company shall cooperate with the Investor to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable 

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Securities to be offered pursuant to any registration statement and enable such certificates to be in such denominations or amounts as the Investor may reasonably request and registered in such names as the Investor may request.

 

i.The Company shall at all times provide a transfer agent and registrar with respect to its Common Stock.

 

j.If reasonably requested by the Investor, the Company shall (i) promptly incorporate in a prospectus supplement or post-effective amendment such information as the Investor believes should be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of such prospectus supplement or post-effective amendment as soon as practicable upon notification of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any registration statement.

 

k.The Company shall use its reasonable best efforts to cause the Registrable Securities covered by any registration statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable Securities.

 

l.Within one (1) Business Day after any registration statement which includes the Registrable Securities is ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with copies to the Investor) confirmation that such registration statement has been declared effective by the SEC in the form attached hereto as Exhibit A.  Thereafter, if requested by the Buyer at any time, the Company shall require its counsel to deliver to the Buyer a written confirmation whether or not the effectiveness of such registration statement has lapsed at any time for any reason (including, without limitation, the issuance of a stop order) and whether or not the registration statement is current and available to the Buyer for sale of all of the Registrable Securities.

 

m.The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable Securities pursuant to any registration statement.

 

4.OBLIGATIONS OF THE INVESTOR.

 

	
a.
	
The Company shall notify the Investor in writing of the information the Company reasonably requires from the Investor in connection with any registration statement hereunder.  The Investor shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request.

 

b.The Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any registration statement hereunder.

 

c.The Investor agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind described in Section 3(f) or the first sentence of 3(e), the Investor will immediately discontinue disposition of Registrable Securities pursuant to any registration statement(s) covering such Registrable Securities until the Investor's receipt of the copies of the supplemented or amended prospectus contemplated by Section 3(f) or the first sentence of 3(e).  

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Notwithstanding anything to the contrary, the Company shall cause its transfer agent to promptly deliver shares of Common Stock without any restrictive legend in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investor's receipt of a notice from the Company of the happening of any event of the kind described in Section 3(f) or the first sentence of Section 3(e) and for which the Investor has not yet settled.

 

5.EXPENSES OF REGISTRATION.

 

All reasonable expenses, other than sales or brokerage commissions, incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the Company, shall be paid by the Company.

 

6.INDEMNIFICATION.

 

a.To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, each Person, if any, who controls the Investor, the members, the directors, officers, partners, employees, agents, representatives of the Investor and each Person, if any, who controls the Investor within the meaning of the Securities Act or the Securities Exchange Act of 1934, as amended (the "Exchange Act") (each, an "Indemnified Person"), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys' fees, amounts paid in settlement or expenses, joint or several, (collectively, "Claims") incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto ("Indemnified Damages"), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in the Registration Statement, any New Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other "blue sky" laws of any jurisdiction in which Registrable Securities are offered ("Blue Sky Filing"), or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading, (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to the Registration Statement or any New Registration Statement  or (iv) any material violation by the Company of this Agreement (the matters in the foregoing clauses (i) through (iv) being, collectively, "Violations").  The Company shall reimburse each Indemnified Person promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.  Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information about the Investor furnished in writing to the Company by such Indemnified Person expressly for use in connection with the preparation of the Registration Statement, any New Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e); (ii) with respect to any superseded prospectus, 

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shall not inure to the benefit of any such person from whom the person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of any person controlling such person) if the untrue statement or omission of material fact contained in the superseded prospectus was corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e), and the Indemnified Person was promptly advised in writing not to use the incorrect prospectus prior to the use giving rise to a violation and such Indemnified Person, notwithstanding such advice, used it; (iii) shall not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e); and (iv) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Investor pursuant to Section 9.

 

b.In connection with the Registration Statement or any New Registration Statement, the Investor agrees to indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers who signs the Registration Statement or any New Registration Statement, each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act (collectively and together with an Indemnified Person, an "Indemnified Party"), against any Claim or Indemnified Damages to which any of them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information about the Investor set forth on Exhibit B attached hereto and furnished to the Company by the Investor expressly for use in connection with such registration statement; and, subject to Section 6(d), the Investor will reimburse any legal or other expenses reasonably incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Investor, which consent shall not be unreasonably withheld; provided, further, however, that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the Investor as a result of the sale of Registrable Securities pursuant to such registration statement.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by the Investor pursuant to Section 9. 

 

c.Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding.  The Indemnified Party or Indemnified Person shall 

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cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim.  The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.  No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its written consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent.  No indemnifying party shall, without the consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such claim or litigation.  Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

 

d.The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

e.The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

 

7.CONTRIBUTION.

 

To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

 

8.REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With a view to making available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration ("Rule 144"), the Company agrees, at the Company’s sole expense, so long as the Investor owns Registrable Securities, to use reasonable best efforts to:

 

a.make and keep public information available, as those terms are understood and defined in Rule 144;

 

b.file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act so long as the Company remains subject to 

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such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144;

 

c.furnish to the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company that it has complied with the reporting and or disclosure provisions of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration; and

 

d.take such additional action as is requested by the Investor to enable the Investor to sell the Registrable Securities pursuant to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Company’s Transfer Agent as may be requested from time to time by the Investor and otherwise fully cooperate with Investor and Investor’s broker to effect such sale of securities pursuant to Rule 144.

 

The Company agrees that damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Investor shall, whether or not it is pursuing any remedies at law, be entitled to seek equitable relief in the form of a preliminary or permanent injunctions, without having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions.

 

	
 
	
9.
	
ASSIGNMENT OF REGISTRATION RIGHTS.

 

The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor.  The Investor may not assign its rights under this Agreement without the written consent of the Company, other than to an affiliate of the Investor controlled by Jonathan Cope or Josh Scheinfeld.

 

10.AMENDMENT OF REGISTRATION RIGHTS.

 

No provision of this Agreement may be amended or waived by the parties from and after the date that is one Business Day immediately preceding the initial filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence, no provision of this Agreement may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written instrument signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

 

11.MISCELLANEOUS.

 

a.A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities.  If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such Registrable Securities.

 

	
b.
	
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered:  (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile or email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending 

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party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same.  The addresses for such communications shall be:

 

If to the Company:

Cytori Therapeutics, Inc.

3020 Callan Road

San Diego, CA 92121

Telephone:(858) 458-0900

Facsimile:(858) 458-0994

E-mail:tgirao@cytori.com

Attention:  Tiago Girão, CFO

 

With a copy to (which shall not constitute notice or service of process):

Latham & Watkins LLP

12670 High Bluff Drive

San Diego, CA 92130

Telephone:(858) 523-5435

Facsimile:(858) 523-5450

E-mail:cheston.larson@lw.com

Attention:Cheston J. Larson, Esq.

 

If to the Investor:

Lincoln Park Capital Fund, LLC

440 North Wells, Suite 410

Chicago, IL 60654

Telephone:312-822-9300

Facsimile:312-822-9301

E-mail:jscheinfeld@lpcfunds.com/jcope@lpcfunds.com

Attention:Josh Scheinfeld/Jonathan Cope

 

With a copy to (which shall not constitute notice or service of process):

Greenberg Traurig, LLP

The MetLife Building

200 Park Avenue

New York, NY 10166

Telephone:(212) 801-9200

Facsimile: (212) 801-6400

E-mail:             marsicoa@gtlaw.com

Attention:Anthony J. Marsico, Esq.

 

or at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three (3) Business Days prior to the effectiveness of such change.  Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's facsimile machine or email account containing the time, date, recipient facsimile number or email address, as applicable, and an image of the first page of such transmission or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

10

 

c.The corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its stockholders.  All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting the State of Illinois, County of Cook, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

d.This Agreement and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.  This Agreement and the Purchase Agreement supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

e.Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties hereto.

 

f.The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

g.This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement.  This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission or by e-mail in a “.pdf” format data file of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

h.Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

i.The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be applied against any party.

 

11

 

j.This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

 

 

* * * * * *

12

 

 

IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be duly executed as of day and year first above written.

 

 

 

THE COMPANY:

 

CYTORI THERAPEUTICS, INC.

 

By: /s/ Tiago Girão

Name: Tiago Girão

Title:  CFO 

 

 

BUYER:

 

LINCOLN PARK CAPITAL FUND, LLC

BY: LINCOLN PARK CAPITAL, LLC

BY: ROCKLEDGE CAPITAL CORPORATION 

 

By: /s/ Josh Scheinfeld

Name: Josh Scheinfeld

Title: President

 

 

 

 

 

 

 

 

 

13

 

EXHIBIT A

 

TO REGISTRATION RIGHTS AGREEMENT

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

[Date]

 

[TRANSFER AGENT]

___________________

___________________

 

Re: [__________]

 

Ladies and Gentlemen:

 

Reference is made to that certain Purchase Agreement, dated as of December 22, 2016 (the “Purchase Agreement”), entered into by and between Cytori Therapeutics, Inc., a Delaware corporation (the “Company”), and Lincoln Park Capital Fund, LLC (the “Buyer”) pursuant to which the Company has agreed to issue to the Buyer shares of the Company's Common Stock, par value $0.001 per share (the “Common Stock”), in an amount up to Twenty Million Dollars ($20,000,000) (the “Purchase Shares”), in accordance with the terms of the Purchase Agreement.  In connection with the transactions contemplated by the Purchase Agreement, the Company has registered with the U.S. Securities & Exchange Commission the following shares of Common Stock:

 

	
 
	
(1)
	
up to 6,000,000 shares of Common Stock to be issued to the Buyer upon purchase by the Buyer from the Company from time to time (the “Purchase Shares”);

 

	
 
	
(2)
	
127,419 shares of Common Stock that have been issued to the Buyer as a commitment fee on the date of the Purchase Agreement (the “Initial Commitment Shares”); and

 

	
 
	
(3)
	
up to 382,258 additional shares of Common Stock to be issued to the Buyer as an additional commitment fee in accordance with the Purchase Agreement (the “Additional Commitment Shares” and, collectively with the Initial Commitment Shares, the “Commitment Shares”).

 

Pursuant to the Purchase Agreement, the Company also has entered into a Registration Rights Agreement, dated as of December 22, 2016, with the Buyer (the “Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to register the Purchase Shares, and the Commitment Shares under the Securities Act of 1933, as amended (the “Securities Act”).  In connection with the Company's obligations under the Purchase Agreement and the Registration Rights Agreement, on [_____________], 201[__], the Company filed a Registration Statement (File No. 333-[_________]) (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating to the resale of the Purchase Shares and the Commitment Shares.

 

In connection with the foregoing, we advise you that a member of the SEC's staff has advised us by telephone that the SEC has entered an order declaring the Registration Statement effective under the Securities Act at [_____] [A.M./P.M.] on [__________], 201[__] and we have no knowledge, after reviewing the list of stop orders on the SEC’s website, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the 

 

Purchase Shares and the Commitment Shares are available for resale under the Securities Act pursuant to the Registration Statement and may be issued without any restrictive legend. 

 

Very truly yours,

Cytori Therapeutics, Inc.

 

 

By:____________________

 

 

cc:Lincoln Park Capital Fund, LLC

 

 

 

 

 

EXHIBIT B

 

TO REGISTRATION RIGHTS AGREEMENT

 

Information About The Investor Furnished To The Company By The Investor 

Expressly For Use In Connection With The Registration Statement

 

 

Information With Respect to Lincoln Park Capital

 

As of the date of the Purchase Agreement, Lincoln Park Capital Fund, LLC, beneficially owned 127,419 shares of our common stock.  Josh Scheinfeld and Jonathan Cope, the Managing Members of Lincoln Park Capital, LLC, the manager of Lincoln Park Capital Fund, LLC, are deemed to be beneficial owners of all of the shares of common stock owned by Lincoln Park Capital Fund, LLC. Messrs. Cope and Scheinfeld have shared voting and investment power over the shares being offered under the prospectus filed with the SEC in connection with the transactions contemplated under the Purchase Agreement. Lincoln Park Capital, LLC is not a licensed broker dealer or an affiliate of a licensed broker dealer.Exhibit
10.1 

RECEIPT                                                                                                                                                                                                                                                  

 

Offer
Received From: ("Buyer")                                                              Big
Lake Estates, LLC                                                                                           

Agency
Confirmation: Broker named on Line 18 is the agent of (check one):

☒
the Buyer exclusively; or ☐ the Seller exclusively; or ☐ both the Buyer and Seller

Amount
of Earnest Money:                                                  Twenty
Thousand                                                             $20,000.00                                                                    

All
earnest money shall be deposited into a federally insured account acceptable to Buyer and Seller and any interest earned thereon
shall also be included as earnest money ("Earnest Money"). Buyer agrees that, if Buyer breaches this Contract, Earnest
Money is subject to forfeiture. If any check for Earnest Money is dishonored for any reason, Seller may, at Seller's option, immediately
cancel this Contract pursuant to lines 308-312. Unless otherwise provided herein, all Earnest Money is considered to be part of
the Purchase Price for the Property described below.

Earnest
Money shall be: (check one)

	☒	Delivered by Buyer to Escrow Company upon mutual
    execution of this Contract.

	☐	Held
                                    by Broker until mutual execution. Upon mutual execution, Broker shall promptly deposit the
                                    Earnest Money with the Escrow Company to which the check is payable. If the check is payable
                                    to Broker, Broker shall deposit the check in Broker's trust account or endorse the check without
                                    recourse and deposit it with a duly licensed Escrow Company.

                                    Form
                                    of Earnest Money: ☐ Personal Check ☒ Other: Wired to Title within 3 days
                                    of acceptance

Deposited
with: ☐ Broker's Trust Account ☒ Escrow Company

 

	Offer Received By: Andrew
    Ostrander                                      A0034             

                         (PRINT
    SALESPERSON'S NAME AND AGENT CODE)	
		

 

     Keller
Williams Professional Partners                                      KWPPO2
                                                          (collectively
"Broker")

           (PRINT
NAME OF FIRM)                                             (OFFICE
CODE)

 

PROPERTY
AND PURCHASE PRICE                                                                                                                                                                                               

Property
Description and Offer: Buyer agrees to purchase and Seller agrees to sell the following real property: 

Property
Address: 422 S Madison Dr                                                                                                                                                                          

City:
Tempe                                                           County:
Maricopa                                                               AZ,
Zip Code: 85281-7221         

Assessors
Parcel # 124-39-037                                                                                                                                                                                  

Legal
description: To be provided by title                                                                                                                                                       

______________________________________________________________________________________________________________ 

______________________________________________________________________________________________________________  

which
includes, at no additional cost to Buyer, all fixtures and improvements thereon, as well as the following items, if any, owned
by Seller and presently located on or in the real property: electrical distribution systems (power panels, ducting, conduits,
disconnects), lighting fixtures, computer wiring, telephone distribution systems (lines, jacks and connections), heating, ventilation
and air conditioning equipment, evaporative coolers, air lines, carpets, window coverings, wall coverings, security and fire detection
systems/alarms, and _____________________________________________________________________________________________

_______________________________________________________________________________________________________
(collectively the "Property"). All fixtures and improvements shall be free of liens and encumbrances unless otherwise
specified.

Leased
Equipment NOT Included: _________________________________________________________________________________

Personal
Property Included: ______________________________________________________________________________________ 

Personal
property shall be transferred in AS-IS CONDITION, FREE AND CLEAR OF ANY LIENS AND ENCUMBRANCES, and SELLER MAKES NO WARRANTY of
any kind, expressed or implied (including, without limitation, ANY WARRANTY OF MERCHANTABILITY).

Addenda
Incorporated: ☐ Schedule of personal property ☐ Lead-Based Paint Disclosure ☐ Other _______________________________

$          2,125,000.00 Full
Purchase Price, paid as outlined below. Buyer acknowledges that failure to have funds deposited as required to close
escrow on the date specified herein shall constitute a material breach of Contract.

$
         20,000.00 Earnest Money __________________________________________________________________________________

$
         20,000.00 Additional Earnest Money deposited upon satisfaction
of buyer's financing contingency                                                    

$          2,085,000.00
 Due at Closing                                                                                                                                                                   

______________________________________________________________________________________________________________

 

 

     

     

    

 

	Commercial
    Real Estate Purchase Contract »	Page
    2 of 9

 

Escrow:
This Contract shall be used as escrow instructions. The Escrow Company employed by the parties to carry out the terms of this
Contract shall be:  

	Chicago
    Title Agency	Stephanie
                                         Fife

	(ESCROW
    COMPANY)	(CONTACT
                                         PERSON)

	14200
    N. Northsight Blvd. #100, Scottsdale, AZ 85260	(480)538-1940
	(ADDRESS)	(TELEPHONE)
	(480)
    483-5676	Stephanie.Fife@ctt.com
	(FAX)	(E-MAIL)

 

Opening
of Escrow: The term "Opening of Escrow" shall mean the date when a fully executed Contract and the Earnest Money
have been delivered to Escrow Company. Escrow Company shall immediately notify Buyer, Seller and Broker(s) in writing of the date
of the Opening of Escrow.

 

Close of
Escrow: Seller and Buyer shall comply with all terms and conditions of this Contract and Close Escrow 30 days after completion
of due diligence                                  
but in no event later than 03/16/2017. Any other closing date requires the written mutual agreement of Seller
and Buyer. MO/DA/YR Seller and Buyer hereby agree that the Close
of Escrow shall be defined as recordation of the deed and any other documents required to complete the transaction. The parties
expressly agree that the failure of any party to comply with the terms and conditions of this Contract by the scheduled Close
of Escrow shall constitute a material breach of this Contract.

 

Possession
and Keys: Possession and occupancy of the Property shall be delivered to Buyer at Close of Escrow, or ☐ ______________,
subject to the rights of tenants under existing leases. Seller shall provide keys and/or means to operate all
locks, mailboxes, security system/alarms, access to all common area facilities and                                                                         

                                                                                                                                                                                                                        

 

DUE
DILIGENCE AND INSPECTIONS.

 

Due Diligence:
Buyer's due diligence and inspection period shall be thirty (30) days or ☐ _______ days after Opening of Escrow
("Due Diligence Period"). During the Due Diligence Period, Buyer shall satisfy itself with respect to the physical condition
of the Property, the condition of title to the Property and as to the feasibility and suitability of the Property for Buyer's
intended purpose. REFER TO LINES 66-85 FOR IMPORTANT TERMS.

 

Buyer Disapproval:
If prior to the expiration of the Due Diligence Period or as otherwise provided herein, Buyer, in Buyer's sole discretion,
disapproves of the Property, Buyer shall:

 

	 	(a)	immediately
    cancel this Contract pursuant to Lines 308-312 without further written consent of the parties, in which event all Earnest
    Money shall be returned to Buyer; or
	 	 	 
	 	(b)	deliver
    to the Seller written notice of the items disapproved and provide Seller an opportunity to correct the items. If Buyer elects
    option (b), Seller shall respond in writing within five (5) days or ☐ ___________ days after delivery to Seller of Buyer's
    notice of items disapproved. If Seller is unwilling or unable to agree to correct any of the terms disapproved by Buyer, including
    making any repairs in a workmanlike manner, Buyer may either:

 

(a)
cancel this Contract within five (5) days after receipt of Seller's response or after expiration of the time period for Seller's
response, whichever occurs first, in which case all Earnest Money shall be returned to Buyer; or

 

(b)
proceed with the transaction, in which case Seller is not obligated to correct those items Seller has not agreed to correct in
writing.

 

If
Buyer cancels this Contract, Buyer shall return all documents provided by the Seller and provide Seller with copies of all reports
or studies generated by Buyer, provided, however, that Buyer shall not be required to deliver
any such report or study if the written contract that Buyer entered into with the consultant who prepared such report or study
specifically forbids the dissemination of the report or study to others.

 

BUYER'S
FAILURE TO GIVE WRITTEN NOTICE OF CANCELLATION OF THIS CONTRACT OR DISAPPROVAL OF ITEMS WITHIN
THE SPECIFIED TIME PERIODS SHALL CONCLUSIVELY BE DEEMED BUYER'S ELECTION TO PROCEED WITH THE TRANSACTION WITHOUT CORRECTION OF
ANY DISAPPROVED ITEMS THAT SELLER HAS NOT AGREED IN WRITING TO CORRECT.

 

Inspections:
During the Due Diligence Period, Buyer shall have the right, at Buyer's expense, to select an inspector(s), and to make economic,
environmental and physical "inspections" (including tests, surveys, and other studies) of the Property, including but
not limited to square footage, wood infestation, roof, designated flood hazard areas, structural, plumbing (such as galvanized
or polybutylene pipes), sewer/septic, well, heating, air conditioning, electrical and mechanical systems, built-in appliances,
soil, foundation, pool/spa and related equipment, cost of compliance with swimming pool regulations, possible environmental hazards
(such as asbestos, formaldehyde, radon gas, lead-based paint, fuel or
chemical storage tanks, methamphetamine, LSD, ecstasy, hazardous waste, other substances, materials or products, and/or location
in a federal or state Superfund area), water damage, mold, conditions conducive to mold, geologic conditions, location
of property lines, water/utility use restrictions and fees for services such as garbage, water/utility or fire protection, sign
usage, zoning regulations, variances, use permits, and compliance with Americans with Disabilities Act. If the presence of sex
offenders in the vicinity of the Property or the occurrence of a disease, natural death, suicide, homicide or other crime on or
in the vicinity of the Property is a material matter to the Buyer, it must be investigated by the Buyer during the Due Diligence
Period.

 

Square Footage:
BUYER IS AWARE THAT ANY REFERENCE TO THE SQUARE FOOTAGE (OR NET ACREAGE) OF THE REAL PROPERTY (LAND) OR IMPROVEMENTS THEREON
IS APPROXIMATE. IF SQUARE FOOTAGE (OR NET ACREAGE) IS A MATERIAL MATTER TO THE BUYER, IT MUST BE VERIFIED BY BUYER DURING THE
DUE DILIGENCE PERIOD.

 

 

     

     

    

 

	Commercial
    Real Estate Purchase Contract »	Page
    3 of 9

 

Wood Infestation
Inspection: IF CURRENT OR PAST WOOD INFESTATION (SUCH AS TERMITES) IS A MATERIAL MATTER TO THE BUYER, IT MUST BE INVESTIGATED
DURING THE DUE DILIGENCE PERIOD. If the lender requires an updated Wood Infestation Report, it shall be performed at Buyer's expense.
If wood infestation is disclosed in any Wood Infestation Report, REFER TO LINES 66-85 FOR IMPORTANT TERMS.

 

Flood Hazard:
If the Property is situated in an area identified as having any special flood hazards by any governmental entity including,
but not limited to, being designated as a special flood hazard area by the Federal Emergency Management Agency (FEMA), the Buyer's
lender may require the purchase of flood hazard insurance at the Close of Escrow or some future date. Special flood hazards may
affect the ability to encumber or improve the Property now or at some future date. Flood hazard designation of the Property or
cost of flood hazard insurance shall be determined by Buyer during the Due Diligence Period.

 

Survey:
A survey ☒ shall be performed ☐ is waived by the Buyer.

 

If a survey
is to be performed, Buyer shall have the survey completed by a licensed surveyor in accordance with the Arizona State Board of
Technical Registration's "Arizona Land Boundary Survey Minimum Standards" and review the receipt of results of survey
or map during the Due Diligence Period.

 

Cost of the
survey shall be paid by: ☐ Seller ☐ Buyer ☒ Other: Most recent existing survey provided by seller

 

	Surveyor's instructions are:
     	☐ 	A boundary survey and survey
    plat showing the corners either verified or monumentation.
	 	☐	A survey certified by a
    licensed surveyor, acceptable to Buyer and the Title Company, in sufficient detail for issuance of an American Land Title
    Association ("ALTA") Owner's Policy of Title Insurance showing all boundary, encroachment or survey exceptions and
    all improvements, utility lines and easements on the Property or within five (5) feet thereof.
	 	 	 
	 	☐	Other survey terms                                                                                                                                                

 

                                                                                                                                                                                                                                                            

 

Buyer's
Responsibility Regarding Inspections: Buyer shall keep the Property free and clear of liens, shall indemnify and hold Seller
harmless from all liability, claims, demands, damages, and costs and shall repair all damages arising from the inspections.

 

Final Walkthrough:
The Seller grants Buyer and any representative of Buyer reasonable access to conduct a final walkthrough of the Property for
the purpose of satisfying Buyer that any repairs agreed to by the Seller have been completed and, further, that the Property is
in substantially the same condition as on the date of the mutual execution of the Contract. Seller shall make the Property available
for the final walkthrough. If Buyer does not conduct such walkthrough, Buyer specifically releases Seller and Broker(s) of any
liability.

 

Seller's
Responsibility Regarding Inspections and Final Walkthrough: Seller shall make the Property available for all inspections
during the Due Diligence Period and final walkthrough. Seller understands that the inspections and final walkthrough require that
all utilities be on and the Seller is responsible for providing same at Seller's expense.

 

Sanitation
and Waste Disposal Systems: Buyer is aware and Seller warrants that the Property is on a:

 

☒ 
sewer system ☐ septic system ☐ alternative system

 

Seller's
Obligations Regarding On-Site Wastewater Treatment Facility (conventional septic or alternative system) ("Facility"):
If such a Facility has been installed on the Property, Seller shall deliver to Buyer copies of Facility permits and any other
Facility documents of record within five (5) days after Opening of Escrow. During Due Diligence Period, any Facility on the Property
shall be inspected as required by law at: ☐ Buyer's expense ☐ Seller's expense by an inspector recognized by the applicable
governmental authority. Seller shall deliver to Escrow Company, at Seller's expense, any certification and/or documentation required.
Escrow Company is instructed to file any transfer form(s) with applicable county authority. Buyer shall pay any Facility transfer
fees.

 

Seller's
Obligations Regarding Wells: If any well is located on the Property, Seller shall deliver to Escrow Company, before Close
of Escrow, a copy of the Arizona Department of Water Resources ("ADWR") "Registration
of Existing Wells." Escrow Company is hereby instructed to send to the ADWR a "Change of Well Information." Seller
does not warrant the gallons per minute as reflected on the ADWR certification of registration. Buyer may verify gallons per minute
during Due Diligence Period through a certified flow test.

 

Changes
During Escrow: Seller shall immediately notify Buyer in writing: (i) of any changes in the disclosures made herein, in the
Seller Property Disclosure Statement, or otherwise; (ii) if Seller modifies any existing lease or other agreement affecting the
Property; or (iii) if Seller enters into any new leases, rental agreements, service contracts or other agreements affecting the
Property. Buyer shall be allowed five (5) days after receipt of such notice to provide written notice to Seller of any items disapproved.
REFER TO LINES 66-85 FOR IMPORTANT TERMS.

 

DISCLOSURES

 

 

Seller
Property Disclosure Statement ("SPDS"):

 

	(a)	☐	Buyer
    has received, read, and approved the SPDS.

 

	 	 	 	 		 	 
	(b)	☐	Buyer
    waives review and approval of the SPDS. (BUYER'S INITIALS REQUIRED TO WAIVE SPDS	 	BUYER	 	BUYER

 

	(c)	☒	Seller
    shall deliver the SPDS to Buyer within five (5) days after Opening of Escrow.

 

     

     

    

 

	Commercial
    Real Estate Purchase Contract »	Page
    4 of 9

 

Additional
Seller Disclosures and Information: Seller shall provide to Buyer the following disclosures and information pertinent to the
Property in writing within five (5) days or                  
days after Opening of Escrow: (1) any information known to Seller that may adversely affect the Buyer's use of the Property,
(2) any known pending special assessments, association fees, claims, or litigation, (3) copies of covenants, conditions, and restrictions,
articles of incorporation; by-laws; other governing documents; and any other documents required by law, (4) financial statements,
copies of current rent rolls, lists of current deposits, personal property lists, copies of leases, rental agreements, service
contracts, (5) a copy of the most recent survey, if available, and (6) any and all other agreements, documents, studies, or reports
relating to the Property in Seller's possession or control provided, however, that Seller shall not be required to deliver any
report or study if the written contract that Seller entered into with the consultant who prepared such report or study specifically
forbids the dissemination of the report to others. The Buyer shall provide written notice to Seller prior to the expiration of
the Due Diligence Period of any items disapproved. REFER TO LINES 66-85 FOR IMPORTANT TERMS. Seller shall deliver all original
documents and estoppel certificates executed by all tenants to Buyer at Close of Escrow.

 

No
Seller or Tenant Bankruptcy, Probate or Insolvency Proceedings. Seller has no notice or knowledge that any tenant on the Property
is the subject of a bankruptcy, probate or insolvency proceeding. Further, Seller is not the subject of a bankruptcy, insolvency
or probate proceeding.

 

Seller's
Notice of Violations: Seller represents that Seller has no knowledge of any notice of violations of City, County, State, or
Federal building, zoning, fire, or health laws, codes, statutes, ordinances, regulations, or rules filed or issued regarding the
Property. If Seller receives notice of violations of any of the aforementioned prior to Close of Escrow, Seller shall immediately
notify Buyer in writing. Buyer shall have five (5) days after receipt of such notice to provide written notice to Seller of any
items disapproved.

 

REFER
TO LINES 66-85 FOR IMPORTANT TERMS.

 

DISCLOSURES
FOR PROPERTY USED FOR RESIDENTIAL PURPOSES

 

 

(If
Property is not used for residential purposes, GO TO LINE 194.)

 

Notice
to Buyer of Swimming Pool Barrier Regulations (Initials Required): The State of Arizona has swimming pool barrier regulations
that are outlined in the Arizona Department of Health Services Private Pool Safety Notice. The county or municipality in which
the Property is located may have different swimming pool barrier regulations than the state. During the Due Diligence Period,
Buyer agrees to investigate all applicable state, county, and municipal swimming pool barrier regulations and, unless disapproved
prior to the expiration of the Due Diligence Period, agrees to comply with and pay all costs of compliance with said regulations.
BUYER'S INITIALS ACKNOWLEDGE 1) EXISTENCE OF SWIMMING POOL BARRIER REGULATIONS and 2) If this Property contains a swimming pool,
RECEIPT OF THE ARIZONA DEPARTMENT OF HEALTH SERVICES APPROVED PRIVATE POOL SAFETY NOTICE AS REQUIRED BY A.R.S. §36-1681 (E).

 

	(BUYER'S
    INITIALS REQUIRED)	 	 	 	 
	 	 	BUYER	 	BUYER

 

Lead-Based
Paint Disclosure (Initials Required): If the Property was built prior to 1978, Seller shall: (1) notify the Buyer of any known
lead-based paint or lead-based paint hazards in or on the Property; (2) provide the Buyer with any lead-based paint risk assessments
or inspections of the Property in the Seller's possession; (3) provide the Buyer with the Disclosure of Information on Lead-based
Paint and Lead-Based Paint Hazards, and any reports, records, pamphlets, and/or other materials referenced therein, including
the pamphlet "Protect Your Family from Lead in Your Home" (collectively "Lead-Based Paint Information").

☐
Lead-Based Paint Information was provided prior to Contract acceptance and Buyer acknowledges the opportunity to conduct lead
based paint risk assessments or inspections during Due Diligence Period.

☒
Seller shall provide the Lead-Based Paint Information to Buyer within five (5) days after Opening of Escrow. Buyer may within
ten (10) days or ☐                   
days after receipt of the Lead-Based Paint Information conduct or obtain a risk assessment or inspection of the Property for
the presence of lead-based paint or lead based-paint hazards ("Assessment Period"). Buyer may within five (5) days after
receipt of the Lead-Based Paint Information or five (5) days after expiration of the Assessment Period cancel this Contract in
Buyer's sole discretion by delivering written notice of cancellation to Seller Pursuant to Lines 308-312.

 

	Prior
    to 1978: If Property was constructed prior to 1978, BUYER'S INITIALS REQUIRED	 	 	 	
	 	 	BUYER	 	BUYER

 

	1978
    or Later: If Property was constructed in 1978 or later, BUYER'S INITIALS REQUIRED	 	 	 	 
	 	 	BUYER	 	BUYER

 

IF
THIS IS AN ALL CASH SALE, GO TO LINE 208.

 

FINANCING

 

(If
financing is to be other than new financing, see attached addendum.)

This
sale  ☒ is ☐ is not contingent upon Buyer obtaining a satisfactory financing commitment within Financing
Commitment Contingency Period. (If sale is not contingent on a financing commitment, go to line 209.)

Financing
Commitment Contingency Period: If the sale is contingent upon Buyer obtaining a satisfactory financing commitment, Buyer shall
have thirty (30) days or ☒       60       days after
the Opening of Escrow ("Financing Commitment Contingency Period") to obtain a financing commitment satisfactory to Buyer
in Buyer's sole discretion, for a loan to purchase the Property or Buyer may cancel this Contract pursuant to Lines 308-312 and
receive a refund of the Earnest Money. PRIOR TO THE EXPIRATION OF THE FINANCING COMMITMENT CONTINGENCY PERIOD, BUYER SHALL
DELIVER TO SELLER AND ESCROW COMPANY WRITTEN NOTICE THAT BUYER HAS NOT RECEIVED SUCH SATISFACTORY FINANCING COMMITMENT OR BUYER
SHALL BE DEEMED TO HAVE WAIVED THE FINANCING COMMITMENT CONTINGENCY AND ANY RIGHT TO CANCEL DUE TO FINANCING.

Financing
Application: Within ten (10) days after the Opening of Escrow, Buyer shall submit a formal loan application to a lender of
Buyer's choice. Buyer and Seller shall promptly provide to such lender all materials and documents lender deems appropriate to
facilitate such lender's processing of such loan application. Buyer agrees to pay such fees as required by the lender and all
other financing costs. Buyer authorizes the lender to provide financing status updates to Broker(s).

 

     

     

    

 

	Commercial
    Real Estate Purchase Contract »	Page
    5 of 9

 

TITLE
AND ESCROW

 

Title
and Vesting: Taking title may have significant legal, estate planning and tax consequences. Buyer should obtain legal and
tax advice.

Buyer
will take title as determined before Close of Escrow or ☐ Other: _________________________________________

Title
Commitment and Title Insurance: Buyer shall be provided at Seller's expense a Standard Owner's Title Insurance Policy showing
the title vested in Buyer as provided in Line 210. Buyer may acquire extended coverage(s) at Buyer's own additional expense. Escrow
Company is hereby instructed to obtain and distribute to Buyer and Broker(s) a Commitment for Title Insurance in sufficient detail
for the issuance of an Extended Owner's Title Insurance Policy together with complete and legible copies of all documents that
will remain as exceptions to Buyer's policy of title insurance ("Title Commitment"), within fifteen (15) days after
Opening of Escrow. Buyer shall have until the expiration of the Due Diligence Period to provide written notice to Seller of any
items disapproved. Buyer shall have five (5) days after receipt of any amendments to Title Commitment or notice of any subsequent
exceptions to provide Seller written notice of any amendment or exceptions disapproved. REFER TO LINES 66-85 FOR IMPORTANT TERMS.

Seller
shall convey title by special warranty deed or ☐ _________________________________________________ deed.

Additional
Instructions: (a) If the Escrow Company is also acting as the title agency but is not the title insurer issuing the title
insurance policy, the Buyer and Seller hereby instruct the Escrow Company to deliver to the Buyer and Seller upon Opening of Escrow
a closing protection letter from the title insurer indemnifying the Buyer and Seller for any losses due to fraudulent acts or
breach of escrow instructions by the Escrow Company. (b) All documents necessary to close this transaction shall be executed promptly
by Seller and Buyer in the standard form used by Escrow Company. Escrow Company is hereby instructed to modify such documents
to the extent necessary to be consistent with this Contract. (c) All closing and escrow costs, unless otherwise stated herein,
shall be allocated equally between Seller and Buyer in accordance with local custom and applicable laws and regulations. (d) Escrow
Company is hereby instructed to send to Broker(s) copies of all notices and communications directed to or from Seller or Buyer.
Escrow Company shall provide Broker(s) with access to escrowed materials and information regarding the escrow.

Prorations,
Expenses and Adjustments:

Taxes:
Real property taxes payable by the Seller shall be prorated through Close of Escrow, based upon the latest tax bill available.
The parties agree that any discrepancy between the latest tax bill available and the actual tax bill when received shall be handled
as a Post Closing Matter and Buyer or Seller may be responsible for additional tax payments to each other. 

Insurance:
If Buyer takes an assignment of the existing casualty and/or liability insurance that is maintained by Seller, the current
premium shall be prorated through Close of Escrow. 

Rents,
Interest and Expenses: Rents; interest on existing notes, if transferred; utilities; and operating expenses shall be prorated
through Close of Escrow. The Parties agree to adjust any rents received after Close of Escrow as a Post Closing Matter.

Deposits:
All deposits held by Seller pursuant to rent/lease agreement(s) shall be credited against the cash required of Buyer at Close
of Escrow or ☐ paid to Buyer by Seller at Close of Escrow.

Post
Closing Matters: The parties shall promptly adjust any item to be prorated that is not determined or determinable at Close
of Escrow as a Post Closing Matter by appropriate cash payment to the other party outside of the escrow when the amount due is
determined. Seller and Buyer agree that Escrow Company and Broker(s) are relieved of any responsibilities for said adjustments.

Insurance:
Buyer shall insure that any fire, casualty, or other insurance desired by Buyer, or required by any Lender, is in place at
Close of Escrow. Buyer specifically releases Broker(s) from any obligations relating to such insurance.

Assessments:
The amount of any assessment that is a lien as of the Close of Escrow, shall be: 

☒
paid in full by Seller ☐ prorated and assumed by Buyer ☐ paid in full by Buyer.

Any
assessment that becomes a lien after Close of Escrow is the Buyer's responsibility.

IRS
and FIRPTA Reporting: Seller agrees to comply with IRS reporting requirements. If applicable, Seller agrees to complete, sign,
and deliver to Escrow Company a certificate indicating whether Seller is a foreign person or a non-resident alien pursuant to
the Foreign Investment in Real Property Tax Act (FIRPTA). Buyer acknowledges that if the Seller is a foreign person, the Buyer
(or Escrow Company, as directed by Buyer) must withhold a tax of up to 15% of the purchase price, unless an exemption applies.

RESPA:
The Real Estate Settlement Procedures Act (RESPA) requires that no Seller of property that will be purchased with the assistance
of a federally-related mortgage financing shall require, directly or indirectly, as a condition of selling the property, that
title insurance covering the property be purchased by the Buyer from any particular title company.

TAX
DEFERRED EXCHANGE: Seller and Buyer are advised to consult a professional tax advisor regarding the advisability of a tax-deferred
exchange pursuant to I.R.C. §1031 or otherwise. Seller and Buyer agree to cooperate in a tax deferred exchange provided that
Close of Escrow is not delayed. All additional costs in connection with any such tax deferred exchange shall be borne by the party
requesting the exchange. The non-requesting party and Broker(s) shall be indemnified and held harmless from any liability that
may arise from participation in the tax deferred exchange.

 

WARRANTIES

 

Seller
Warranties: Seller warrants and shall maintain and/or repair the Property so that, at the earlier of possession of the Property
or Close of Escrow, all heating, cooling, mechanical, plumbing, and electrical systems (including swimming pool and/or spa, motors,
filter systems, cleaning systems, and heater, if any), and built-in appliances will be in working condition or as otherwise agreed
in this Contract. Seller also warrants that, at the earlier of possession of the Property or Close of Escrow, the Property shall
be in substantially the same condition as on the date of the mutual execution of the Contract.

Buyer
Warranties: Buyer warrants that Buyer has disclosed to Seller any information that may materially and adversely affect the
Buyer's ability to close escrow or complete the obligations of this Contract. At the earlier of the removal of all contingencies,
possession of the Property or Close of Escrow, (a) Buyer warrants to Seller that Buyer has conducted all desired independent investigations
and accepts the Property and (b) Buyer acknowledges that there will be no Seller warranty of any kind, except as stated in Lines
259-263.

 

     

     

    

 

	Commercial
    Real Estate Purchase Contract »	Page
    6 of 9

 

Warranties
that Survive Closing: Prior to the Close of Escrow, Seller warrants that payment in full will have been made for all rental
and/or privilege taxes, labor, professional services, materials, machinery, fixtures, or tools furnished within the 150 days immediately
preceding the Close of Escrow in connection with the construction, alteration, or repair of any structure on or improvement made
to the Property. Seller warrants that the information on Lines 131-139 regarding connection to a public sewer system, septic tank
or other sanitation system is correct to Seller's knowledge. Seller warrants that Seller has disclosed to Buyer and Broker(s)
all material latent defects and any information concerning the Property known to Seller, which materially and adversely affect
the consideration to be paid by Buyer.

REMEDIES

Remedies:
The parties agree to the remedies for breach of Contract indicated below.

If Buyer
is in breach: (check one)

☐ All
Rights and Remedies: Seller may cancel this Contract pursuant to Lines 308-312 and/or proceed upon any claim or remedy that the
Seller may have in law or equity.

☒ Liquidated
Damages: The parties agree that it would be impracticable or extremely difficult to fix the actual damages that Seller would suffer
if Buyer fails to perform Buyer's obligations pursuant to this Contract. Therefore, if Buyer breaches this Contract, Seller shall
be entitled to the Earnest Money as Seller's sole remedy and Buyer shall be released from any further liability
to Seller. In such event, this Contract shall be cancelled and Seller shall pay any Escrow Company cancellation fees.

	(INITIALS
    REQUIRED)	

If Seller is in breach:

All Rights
and Remedies: Buyer may cancel this Contract pursuant to Lines 308-312, shall be entitled to the return of the Earnest Money and/or
proceed upon any claim or remedy that the Buyer may have in law or equity.

Mediation:
Buyer and Seller agree to mediate any dispute or claim arising out of or relating to this Contract, any alleged breach of
this Contract, or services provided in relation to this Contract, claims for Earnest Money or representations made by the Buyer
or Seller in connection with the sale, purchase, financing, condition, or other aspect of the Property to which this Contract
pertains, including, without limitation, allegations of concealment, misrepresentation, negligence and/or fraud before resorting
to court action. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally
and confidentially. Mediators cannot impose binding decisions. The parties must agree and sign an agreement before any settlement
reached at the mediation is binding. Mediation shall take place in the State of Arizona. All mediation costs shall be paid equally
by the parties to the Contract.

Exclusions
from Mediation: The following matters are excluded from mediation hereunder: (a) any action brought in the Small Claims Division
of an Arizona Justice Court (up to $3,500), so long as the matter is not thereafter transferred or removed from the Small Claims
Division; (b) judicial or nonjudicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or agreement
for sale; (c) an unlawful entry or detainer action; (d) the filing or enforcement of a mechanic's lien; or (e) any matter that
is within the jurisdiction of a probate or bankruptcy court. The filing of a judicial action to enable the recording of a notice
of pending action, or order of attachment, receivership, injunction, or other provisional remedies shall not constitute a waiver
of the obligation to mediate under this provision, nor shall it constitute a breach of the duty to mediate.

Attorneys
Fees and Costs: If Buyer or Seller files suit against the other to enforce any provision of this Contract or for damages sustained
by reason of its breach, all parties prevailing in such action, on trial and appeal, shall receive their reasonable attorney's
fees and costs as awarded by the court. In addition, both Seller and Buyer agree to indemnify and hold harmless all Brokers against
all costs and expenses that any Broker may incur or sustain in connection with any lawsuit arising from this Contract and will
pay the same on demand unless the court grants judgment in such action against the party to be indemnified. Costs shall include,
without limitation, reasonable attorney's fees, expert witness fees, fees paid to investigators, and court costs.

Cancellation:
Any party who wishes to cancel this Contract as provided herein or because of any material breach by another party, and who
is not in material breach except as occasioned by a material breach by the other party, may cancel this Contract by delivering
written notice of cancellation to either the breaching party or to the Escrow Company stating the basis for cancellation or nature
of the breach. Cancellation shall become effective immediately upon delivery of the written notice of cancellation to either the
breaching party or Escrow Company.

Release
of Earnest Money: In the event of a dispute between Buyer and Seller regarding Earnest Money deposited with Escrow Company,
Buyer and Seller authorize Escrow Company to release Earnest Money pursuant to the terms and conditions of this Contract. Buyer
and Seller specifically authorize Escrow Company to act in its sole and absolute discretion in the release of Earnest Money. Buyer
and Seller agree to hold harmless and indemnify Escrow Company against any claim, action or lawsuit of any kind, and from any
loss, judgment, or expense, including costs and reasonable attorneys' fees, arising from or relating in any way to the release
of Earnest Money.

Recommendations:
If any Broker recommends a builder, contractor, inspector, vendor or any other person or entity to Seller or Buyer for any
purpose, such recommendation shall be independently investigated and evaluated by Seller or Buyer, who hereby acknowledge that
any decision to enter into any contractual arrangements with any such person or entity recommended by any Broker will be based
solely upon such independent investigation and evaluation. Seller and Buyer understand that said contractual arrangement may result
in a commission or fee to Broker, which shall be disclosed in writing to the Seller and Buyer as required by law.

 

     

     

    

 

	Commercial
    Real Estate Purchase Contract »	Page
    7 of 9

 

ADDITIONAL TERMS

 

 

This
offer is contingent upon Buyer receiving the following items: (1) a commitment to lend to Buyer a sum equal to at least 70% of
the Purchase Price, at terms reasonably acceptable to Buyer. Such loan ("New Loan") shall be secured by a first trust
or mortgage on the Property. Buyer hereby agrees to diligently pursue obtaining the New Loan, (2) the Buyers approval of the existing
lease and obtaining appropriate estoppel certificate discuss at least 15 days prior to closing, (3) right to lease terms with
the tenant during due diligence; and Seller receiving the following items: (1) appropriate financing with terms at the Seller’s
sole discretion to pay off Deed of Trust and Closing Costs and Commissions, within 30 days of execution of this contract.

Buyer to
have a 60 day financing contingency period, at the end of which time, the buyer shall deposit an additional $20,000 earnest money
into escrow. All escrow monies become non-refundable and released to seller if buyer fails to perform. Contingency Period to commence
upon execution of the contract.

Buyer and
Seller acknowledge that it is the intention of the Buyer to acquire/sell property as part of a tax-deferred exchange under Internal
Revenue Code Section 1031. The Seller agrees to cooperate as long as it does not delay the closing or cause additional expense
to the other. Buyer will assign the rights (but not obligations) of this agreement to a Qualified Intermediary. Cooperation means
that parties will approve an assignment, agree to release the Intermediary from any claim made by other, and agree to all other
appropriate action or sign any other document which does not create additional liability or expense.

Risk
of Loss: If there is any loss or damage to the Property between the date of mutual execution of this Contract and the Close
of Escrow or possession of the Property, whichever is earlier, by reason of fire, vandalism, flood, earthquake or act of God,
the risk of loss shall be borne by the Seller, provided, however, that if the cost of repairing such loss or damage would exceed
ten percent (10%) of the purchase price, either Seller or Buyer may elect to cancel the Contract by written notice pursuant to
lines 308-312.

Permission:
Buyer and Seller grant Broker(s) permission to advise the public of the existence of this Contract.

Arizona
Law: This Contract shall be governed by Arizona law and jurisdiction is exclusively conferred on the State of Arizona.

Time
is of the essence: The parties acknowledge that time is of the essence in performance of the obligations described herein.

Broker's
Fee: Buyer and Seller each represent and warrant to the other that he/she/it has had no dealings with any person, firm, broker
or finder in connection with the negotiation of this Contract and/or the consummation of the purchase and sale contemplated herein,
other than the Broker(s) named herein, and no Broker or other person, firm or entity, other than said Broker(s) is/are entitled
to any commission or finder's fee in connection with this transaction as the result of any dealings or acts of either Buyer or
Seller. Buyer and Seller do each hereby agree to indemnify, defend, protect and hold the other harmless from and against any costs,
expenses or liability for compensation, commission or charges that may be claimed by any broker, finder or other similar party,
other than said named Broker(s) by reason of any dealings or act of the indemnifying party.

Compensation:
Seller and Buyer acknowledge that Broker(s) shall be compensated for services rendered as previously agreed by separate written
agreement(s). Any separate written agreement(s) shall be delivered to Escrow Company for payment at Close of Escrow, if not previously
paid, and shall constitute an irrevocable assignment of Seller's proceeds at Close of Escrow and/or payment shall be collected
from Buyer as a condition to Close, as applicable. If any Broker hires an attorney to enforce the collection of the brokerage
fee payable pursuant to this Contract and is successful in collecting some or all of such brokerage fee, the party(ies) responsible
for paying such brokerage fee agree(s) to pay such Broker's costs including, but not limited to: reasonable attorneys' fees, expert
witness fees, fees paid to investigators, and court costs.

COMMISSIONS
PAYABLE FOR THE SALE, LEASING, OR MANAGEMENT OF PROPERTY ARE NOT SET BY ANY BOARD OR ASSOCIATION OF REALTORS® OR MULTIPLE
LISTING SERVICE, OR IN ANY MANNER OTHER THAN BETWEEN THE BROKER AND CLIENT. THE SELLER AND THE BUYER ACKNOWLEDGE THAT THE BROKER(S)
REFERENCED HEREIN ARE THIRD-PARTY BENEFICIARIES OF THIS CONTRACT.

 

 

     

     

    

 

	Commercial
    Real Estate Purchase Contract »	Page
    8 of 9

Additional
Compensation: The Real Estate Settlement Procedures Act ("RESPA") prohibits the paying or receiving of any fee,
kickback, or thing of value for the referral of any business related
to settlement or closing of a federally regulated mortgage financing, including, but not limited to, any services related to the
origination, processing, or funding of a federally regulated mortgage financing, and includes settlement related business. RESPA
does not prohibit fees, salaries, compensation, or other payments for services actually performed. If any Broker performs any
such services for a fee, Seller and Buyer consent to the payment of this additional compensation as follows:________________________________________________

 

 

 

 

Subsequent
Offers: Buyer acknowledges that Seller has the right to accept subsequent offers until Close of Escrow. Seller understands
that any subsequent offer accepted by the Seller must be a backup offer, namely, contingent on the cancellation of this Contract. 

Entire
Agreement: This Contract, and any addenda and attachments, shall constitute the entire agreement between Seller and Buyer,
and shall supersede any other written or oral agreements between Seller and Buyer. This Contract, including any extensions of
any time periods referenced herein, can be modified only by a writing signed by Seller and Buyer. A fully executed facsimile copy
of the entire Contract shall be treated as an original Contract. This Contract and any other documents required by this Contract
may be executed and delivered by facsimile and in any number of counterparts, which shall become effective upon delivery as provided
for herein. All counterparts shall be deemed to constitute one instrument, and each counterpart shall be deemed an original. The
failure to initial any page of this Contract shall not affect the validity or terms of this Contract. All references to days in
this Contract shall be construed as calendar days.

Assignment:
Except in the event of a tax-deferred exchange, Buyer shall not assign this Contract without the prior written consent of
Seller. Any such assignment shall not release Buyer from Buyer's obligations under this Contract.

Release
of Brokers: SELLER AND BUYER HEREBY ACKNOWLEDGE THAT THEY HAVE BEEN AND ARE NOW ADVISED BY THE BROKER(S) TO CONSULT AND RETAIN
THEIR OWN EXPERTS TO ADVISE AND REPRESENT THEM CONCERNING THE LEGAL AND INCOME TAX EFFECTS OF THIS CONTRACT, AND THE CONDITION
OF THE PROPERTY. SELLER AND BUYER HEREBY EXPRESSLY RELEASE, HOLD HARMLESS AND INDEMNIFY ALL BROKER(S) IN THIS TRANSACTION FROM
ANY AND ALL LIABILITY AND RESPONSIBILITY REGARDING THE CONDITION, SQUARE FOOTAGE/ACREAGE, LOT LINES OR BOUNDARIES, VALUE, FINANCING,
RENT ROLLS, INCOME AND EXPENSE PROJECTIONS OR PROFORMAS, ENVIRONMENTAL CONDITIONS, SANITATION SYSTEMS, ROOF CONDITION, WOOD INFESTATION
AND WOOD INFESTATION REPORT, COMPLIANCE WITH BUILDING CODES, ZONING OR OTHER GOVERNMENTAL REGULATIONS, OR ANY OTHER MATERIAL MATTERS
RELATING TO THE PROPERTY.

	(INITIALS
    REQUIRED)	

Time
for Acceptance: This is an offer to purchase the Property. Unless acceptance is signed by Seller and a signed copy delivered
in person, by private or United States mail, or facsimile, and received by Buyer or by Broker named on Lines 17-18 by:  December
22 , 2016  at 11:59 ☐ AM ☒ PM, Mountain Standard Time, or unless this offer to purchase
has been previously withdrawn in writing by Buyer, this offer to purchase shall be deemed withdrawn and the Buyer's Earnest Money
shall be returned.

THIS
CONTRACT CONTAINS NINE (9) PAGES EXCLUSIVE OF ANY ADDENDA AND ATTACHMENTS. PLEASE ENSURE THAT YOU HAVE RECEIVED AND READ ALL NINE
(9) PAGES OF THIS OFFER AS WELL AS ANY ADDENDA AND ATTACHMENTS. 

The
undersigned agree to purchase the Property on the terms and conditions herein stated
and acknowledge receipt of a copy hereof.

	/s/
    Michael Tenuta	dotloop
                                         verified
 12/21/16 3:55PM EST

                                                                                4TWW-JGEA-EXNH-MJGC
	 	 	 
	^ BUYER’S SIGNATURE	MO/DA/YR	 	^ BUYER’S SIGNATURE	MO/DA/YR

 

	Big
    Lake Estates, LLC	 	       
	BUYER NAME
    PRINTED	 	BUYER NAME
    PRINTED

 

	By:	Michael
    Tenuta	 
	 	 	 
	Its:	Member	 

 

	 	 	 
	ADDRESS	 	ADDRESS

 

	 	 	 
	CITY,
    STATE, ZIP COPE	 	CITY,
    STATE, ZIP COPE

 

	Broker:
     	Keller
    Williams Professional Partners	 	Andrew
    Ostrander
	 	(COMPANY
    NAME)	 	(LICENSEE)

 

	 7025
                                         W. Bell Rd., Ste. 10

                                                                                Phoenix,
                                         AZ 85308 
	(480)
    229-6999	(480)
    295-7608 	 
	(ADDRESS)	(TELEPHONE)	(FAX)	(E-MAIL)

 

     

     

    

 

	Commercial
    Real Estate Purchase Contract »	Page
    9 of 9

 

ACCEPTANCE

 

 

Agency
Confirmation: The following agency relationship(s) is hereby confirmed for this transaction:

 

	Listing Broker: 	Joseph
    Lewis	 	The
    Real Estate Brokers, LLC	(602)
    740-3916
	 	(PRINT SALESPERSON’S NAME AND AGENCY CODE)	JL306  	(PRINT FIRM NAME AND OFFICE CODE)
     B675	(TELEPHONE)

 

Is
the agent of (check one):   ☒  the Seller exclusively; or    ☐  both the Buyer
and Seller

 

Seller
Receipt of Copy: The undersigned acknowledge receipt of a copy hereof and grant permission to Broker named on Lines 17-18 to deliver
a copy to Buyer.

 

	☐ 	Counter
    Offer is attached, and is incorporated herein by reference. Seller must sign both the Contract and the Counter Offer.
    If there is a conflict between this Contract and the Counter Offer, the provisions of the Counter Offer shall be controlling.

 

The
undersigned agree to sell the Property on the terms and conditions herein stated.

 

	/s/
    Bryan McLaren	12/22/16	 	 	 
	^ SELLER’S SIGNATURE	MO/DA/YR	 	^ SELLER’S SIGNATURE	MO/DA/YR

 

	ZONED
    PROPERTIES, INC.	 	 
	SELLER’S
    NAME PRINTED	 	SELLER’S
    NAME PRINTED

 

By:
BRYAN MCLAREN

 

Its:
CEO

 

	 	 	 
	ADDRESS	 	ADDRESS

 

	 	 	 
	CITY,
    STATE, ZIP COPE	 	CITY,
    STATE, ZIP COPE

 

	Broker:
     	The
    Real Estate Brokers, LLC	 	Joseph
    Lewis
	 	(COMPANY
    NAME)	 	(LICENSEE)

 

	 	(602)
    740-3916	 	 
	(ADDRESS)	(TELEPHONE)	(FAX)	(E-MAIL)

 

ACCEPTANCE
BY ESCROW COMPANY

 

 

Date
of Opening of Escrow: ________________________

 

The
provisions of this Contract are hereby acknowledged and agreed to.

 

Escrow
Company: Chicago Title Agency

 

By:
________________________________

 

Its:
________________________________

 

	 
	For
    Broker Use Only:
	Brokerage
    File/Log No. ______ Manager’s Initials _____ Broker’s Initials _______ Date __________
	MO/DA/YR

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