Document:

reta-ex101_517.htm

Exhibit 10.1

LEASE AMENDMENT NO. 11

 

 

THIS LEASE AMENDMENT NO. 11 (this “Amendment”) is made and entered into effective as of November 9, 2017 (the “Effective Date”) by and between SDCO GATEWAY COMMERCE I & II, INC., a Delaware corporation (“Landlord”), and REATA PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”).  

Recitals:

WHEREAS, by Lease dated with a Lease Reference Date as of May 25, 2006 between Landlord and Tenant (the “Original Lease”), as amended by Lease Amendment No. 1 dated March 2, 2010 between Landlord and Tenant (the “First Amendment”), Lease Amendment No. 2 dated May 24, 2010 between Landlord and Tenant (the “Second Amendment”), Lease Amendment No. 3 dated July 30, 2010 (referenced in subsequent Amendments as being dated July 1, 2010 and in fact intended to be dated June 30, 2010) between Landlord and Tenant (the “Third Amendment”), Lease Amendment No. 4 dated February 17, 2011 between Landlord and Tenant (the “Fourth Amendment”), Lease Amendment No. 5 dated May 1, 2011 between Landlord and Tenant (the “Fifth Amendment”), Lease Amendment No. 6 dated July 7, 2011 between Landlord and Tenant (the “Sixth Amendment”), Lease Amendment No. 7 dated July 23, 2012 between Landlord and Tenant (the “Seventh Amendment”), Lease Amendment No. 8 dated September 25, 2012 between Landlord and Tenant (the “Eighth Amendment”), Lease Amendment No. 9 dated June 12, 2013 (the “Ninth Amendment”), and Lease Amendment No. 10 dated May 26, 2015 (the “Tenth  Amendment”) (which Original Lease together with the First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment, Eighth Amendment, Ninth Amendment, Tenth Amendment  and all Commencement Date Agreements executed by Landlord and Tenant in connection therewith are herein together called the “Lease”), the leased space measuring approximately 34,890 square feet (collectively, the “Premises”), within that part of the Building (as defined in the Lease) known as Gateway Commerce II (herein so called), at 2801 Gateway Drive, Irving, Texas 75063 was leased to Tenant upon the terms and subject to the conditions contained in the Lease; and

WHEREAS, Landlord and Tenant have agreed to modify the Lease in the manner hereinafter appearing.

Agreement:

NOW, THEREFORE, for and in consideration of the foregoing recitals, Ten and No/100 Dollars ($10.00) in hand paid and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby acknowledge and agree to the following:

1.Recitals; Definitions.  The above Recitals are true and correct and are incorporated herein by reference.  Capitalized but otherwise undefined terms herein shall have the meanings set forth for such terms in the Lease.

2.Extension of Term.  Notwithstanding anything to the contrary contained in the Lease, the Lease Term is extended from its current expiration date of October 31, 2018, so that the same shall expire on October 31, 2020 unless sooner terminated as provided in the Lease as modified by this Amendment.   As of the Effective Date, all references to the Term in the Lease shall mean the Term as extended by this Amendment.  Tenant shall have no further right to extend the Term of the Lease except only as set forth in Paragraph 6 below.  

 

 

3.“As-Is” Delivery.  Subject to compliance by Landlord with its repair and maintenance obligations in the Lease, Tenant accepts the Premises for the Term as extended by this Amendment in its “AS-IS” condition.  Tenant acknowledges that (a) no representations, express or implied, regarding the condition of the Premises or the Building have been made by Landlord to Tenant; all implied warranties with respect to the Premises and the Building, including but not limited to those of fitness for a particular purpose, are expressly negated and waived, and (b) Landlord shall not be required to perform any demolition work or tenant finish work in the Premises or to provide any allowances therefor, except however that, on or before ninety (90) days after the Effective Date (subject only to any delay caused by Tenant or any Tenant Entity, or by a force majeure event outside of the reasonable control of Landlord, including a casualty event), Landlord will replace, at Landlord’s cost, heating and air conditioning units numbered RTU 5, RTU 10, RTU 13 and RTU 18 servicing the Premises (“Landlord’s Work”).  Tenant shall continue to remain responsible for the repair and, when needed, replacement of the heating and air conditioning systems servicing the Premises on the terms set forth in the Lease (including the units hereinabove listed following Landlord’s replacement of the same).      

4.Rent.  Rent shall remain payable as set forth in the Lease through October 31, 2018.  Thereafter and notwithstanding anything to the contrary contained in the Lease, the Annual Rent and Monthly Installment of Rent for the Premises during the Term, as extended by this Amendment, shall be as follows:

						
	
Period
	
Rentable Square
	
Annual Rent
	
Annual 
	
Monthly 

	
 
	
 
	
Footage
	
Per Square Foot
	
Rent
	
Installment of Rent

	
11/1/2018
	
10/31/2019
	
34,890
	
$18.00
	
$628,020.00
	
$52,335.00

	
11/1/2019
	
10/31/2020
	
34,890
	
$18.50
	
$645,465.00
	
$53,788.75

 

All other charges due under the Lease with respect to the Premises including Tenant’s Proportionate Share of excess Expenses and Taxes over Base Year (Expenses) and Base Year (Taxes) respectively (as modified by Paragraph 5 below) , shall remain payable as set forth in the Lease during the remainder of the Term as extended by this Amendment.  

5.Base Year.  Effective as of November 1, 2018 and continuing for the remainder of the Term as extended by this Amendment, the Lease shall be is revised so that (i) Base Year (Expenses) shall be Expenses for January 1, 2019 to December 31, 2019 and (ii) Base Year (Taxes) shall be Taxes for January 1, 2019 to December 31, 2019.  

6.Renewal Option. Tenant shall be allowed a renewal option on the terms more particularly set forth in Exhibit A attached to this Amendment and made a part hereof. All other renewal options in the Lease, including as set forth in Paragraph 12 of the Seventh Amendment, are deleted.

7.Right of First Refusal Option.  Tenant shall be allowed a one-time only right of first refusal option on the immediately adjacent leasable space on the terms more particularly set forth in Exhibit B attached to this Amendment and made a part hereof.  All other right of first refusal options, right of first offer options, expansion options, or any other similar options previously given under the Lease, including as set forth in Paragraph 11 of the Seventh Amendment, are deleted.

8.Landlord Remedies in the Event of a Default.  Section 19.3 in the Original Lease, as amended, is further amended so that the Concession Amount as therein defined shall include the aggregate of all amounts expended by Landlord for Landlord’s Work and for brokers’ commissions payable by reason of this Amendment.

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9.Tenant’s Authority.  Tenant represents and warrants that Tenant has been and is qualified to do business in the State of Texas and that the entity has full right and authority to enter into this Amendment.  Each of the persons executing this Amendment on behalf of Tenant warrants that such person has been duly authorized to sign on behalf of Tenant by appropriate actions. 

10.Exculpation.  Article 41 of the Original Lease shall apply in full to this Amendment.

11.Brokerage.  Landlord and Tenant each hereby warrant to the other that it has not dealt with any broker or agent in connection with the negotiation or execution of this Amendment, other than Fults Commercial, LLC (representing Landlord) and Colliers International (representing Tenant).   LANDLORD AND TENANT SHALL EACH INDEMNIFY THE OTHER AGAINST ALL COSTS, EXPENSES, ATTORNEYS’ FEES, AND OTHER LIABILITY FOR COMMISSIONS OR OTHER COMPENSATION CLAIMED BY ANY OTHER BROKER OR AGENT CLAIMING THE SAME BY, THROUGH, OR UNDER THE INDEMNIFYING PARTY IN RESPECT OF THIS AMENDMENT. 

12.Ratification.  Landlord and Tenant hereby ratify and affirm the Lease, and agree that the Lease is and shall remain in full force and effect, except as expressly amended hereby.

13.Successors and Assigns.  The covenants, conditions, provisions and agreements contained in this Amendment shall bind Tenant, its successors and assigns and inure to the benefit of Landlord and its successors and assigns. 

14.Counterparts.  This Amendment may be executed in any number of identical counterparts each of which shall be deemed to be an original and all, when taken together, shall constitute one and the same instrument.  Landlord shall not be bound by this Amendment until it has received a copy of this Amendment duly executed by Tenant and has delivered to Tenant a copy of this Amendment duly executed by Landlord.

 

[Signature Page Follows]

 

 

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IN WITNESS WHEREOF, this Amendment is hereby executed by Landlord and Tenant as of the Effective Date.

LANDLORD:

 

SDCO GATEWAY COMMERCE I & II, INC.,

a Delaware corporation 

 

 

By: /s/ Kim Boudreau

 

Kim Boudreau, Vice President

 

 

 

TENANT:

 

REATA PHARMACEUTICALS, INC., 

a Delaware corporation 

 

 

By: /s/ Jason D. Wilson

 

Jason D. Wilson, Chief Financial Officer

 

 

Signature Page

 

EXHIBIT A

attached to and made a part of Lease Amendment No. 11

dated as of the Effective Date and made between

SDCO Gateway Commerce I & II, Inc. as Landlord, and

Reata Pharmaceuticals, Inc., as Tenant 

RENEWAL OPTION

Provided that (i) there has not been a violation of Section 19.9 of the Original Lease (if Tenant fails to pay Landlord an amount exceeding $2,500.00 on more than two (2) occasions during the twelve (12) month period immediately preceding Tenant’s exercise of the renewal option under this Exhibit), (ii) Tenant is not then in default beyond any applicable cure, grace or notice period at the time of exercise of the renewal option hereunder permitted, and (iii) Tenant is then in occupation of at least fifty percent (50%) of the Premises, Tenant shall have the option to renew the Lease for one (1) additional term of one (1) year commencing as of November 1, 2020, on the same terms and conditions set forth in the Lease, except as modified by the terms, covenants and conditions as set forth below: 

(a)If Tenant elects to exercise said option, then Tenant shall provide Landlord with an irrevocable written notice of exercise of the option no earlier than November 1, 2019  and no later than February 1, 2020.   Time shall be of the essence herein so that if Tenant fails to provide such notice, Tenant shall have no further or additional right to extend or renew the term of the Lease.

(b)The Annual Rent in effect at the expiration of the then Term of the Lease shall be adjusted to reflect the then current fair market rental for comparable space in other comparable buildings in the submarket in which the Building is located, having regard to all allowances and leasing concessions including the availability of parking and any parking charges therefor as of the date the renewal term is to commence and taking into account the specific provisions of the Lease except to the extent hereunder provided.  Landlord shall advise Tenant of the new Annual Rent and Monthly Installment of Rent for the Premises no later than thirty (30) days after receipt of Tenant’s written request therefor.  Said request shall be made no earlier than thirty (30) days prior to the date on which Tenant may exercise its option under this Exhibit.  Tenant shall have twenty (20) days from said notification to provide Landlord with written notice that Tenant accepts or rejects the revised Annual Rent and Monthly Installment of Rent for the renewal Term.  If Tenant fails to provide such notice, then Tenant shall be deemed to have waived its option to renew the Lease, and Tenant shall have no further or additional right to extend the Term of the Lease.  If Tenant accepts in writing Landlord’s determination of the revised Annual Rent and Monthly Installment of Rent for the renewal Term then such acceptance shall be irrevocable; provided, however, that Tenant shall not be deemed to exercise its option to renew the Lease until Tenant provides Landlord with the written notice pursuant to paragraph (a) above.  If Tenant, within the 20-day period, notifies Landlord in writing that it rejects Landlord’s determination of the Annual Rent and Monthly Installment of Rent for the renewal Term and if the parties do not agree upon the new revised Annual Rent and Monthly Installment of Rent for the renewal Term within thirty (30) days of Landlord’s receipt of Tenant’s notice, then this option shall be of no further force or effect and Tenant shall have no further or additional right to extend the Term of the Lease. 

(c)The Premises shall be taken by Tenant during the renewal Term, in its “AS-IS” condition and Landlord shall have no liability to perform any renovation work nor to provide any improvement allowances therefor unless otherwise agreed upon in the determination of fair market rental.

		
	
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(d)Upon exercise of this option, Tenant shall execute an amendment to the Lease prepared by Landlord confirming the exercise of the option and the new Annual Rent and Monthly Installment of Rent for the Premises during the renewal Term.  Landlord’s failure to prepare or Tenant’s failure to execute such amendment shall not affect the validity of the exercise of this option or alter Tenant’s obligations during the renewal Term as determined hereby. 

(e)This option is personal to Reata Pharmaceuticals, Inc. and its Affiliate (as such term is defined in Section 9.8 of the Original Lease) and cannot be exercised by any sublessee or other assignee.  This option shall no longer be effective if Tenant subleases or transfers possession of any portion of the Premises other than to an Affiliate.  In addition, without limitation on any other provisions of this Exhibit, this option shall terminate and be of no further force or effect if (i) Landlord terminates Tenant’s right to possession due to an Event of Default, or (ii) Tenant, is in occupation of less than fifty percent  (50%) of the Premises, or (iii) Tenant ceases operating business from the Premises or vacates the Premises for in excess of thirty (30) days for reasons other than casualty or approved repairs (notwithstanding that it has left furniture, fixtures or equipment in the Premises), or (iv) Tenant assigns or is deemed to have assigned its interest under the Lease, other than to an Affiliate.  Upon exercise of this renewal option Tenant shall have no further right to extend the Term of the Lease other than by agreement with Landlord in its sole discretion.

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EXHIBIT B

attached to and made a part of Lease Amendment No. 11

dated as of the Effective Date and made between

SDCO Gateway Commerce I & II, Inc. as Landlord, and

Reata Pharmaceuticals, Inc., as Tenant 

 

RIGHT OF FIRST REFUSAL OPTION (ONE TIME ONLY)

 

Subject to and upon the terms and provisions set forth in this Exhibit B, provided that (i) there has not been a violation of Section 19.9 of the Original Lease (if Tenant fails to pay Landlord an amount exceeding $2,500.00 on more than two (2) occasions during the twelve (12) month period immediately preceding Tenant’s exercise of the right of first refusal option under this Exhibit), (ii) Tenant is not then in default beyond any applicable cure, grace or notice period at the time of exercise of the right of first refusal option hereunder permitted, and (iii) Tenant is then in occupation of at least fifty percent (50%) of the Premises, Tenant shall have a one-time only right of first refusal to lease the leasable space located immediately adjacent to the Premises as of the Effective Date of this Amendment (the “ROFR Space”) exercisable upon receipt by Landlord and Landlord’s notice to Tenant containing the basic terms (the “ROFR Notice”) of a bona fide third party offer (the “ROFR Offer”) to lease all or any part of such ROFR Space (the “Available ROFR Space”) when the same becomes available for lease on the terms set forth below.

(a)Upon receipt of the ROFR Notice, Tenant shall have a period of five (5) business days from and after the date of delivery of the ROFR Notice in which to unconditionally and irrevocably exercise Tenant's right to lease the Available ROFR Space pursuant to the terms and conditions of the ROFR Offer.  If Tenant fails or is unable to timely exercise its right hereunder with respect to the Available ROFR Space, then such right shall lapse, time being of the essence with respect to the exercise thereof (it being understood that Tenant’s right hereunder is a one-time right only as to each Available ROFR Space the first time it is offered to Tenant hereunder), and Landlord may lease all or a portion of the Available ROFR Space to any other party (the “Prospect”) if there is not a change in material economic terms and conditions (hereafter defined) as set forth in the ROFR Offer (Landlord shall not be obligated to lease the Available ROFR Space to the original offeror under the ROFR Offer), and, if so leased, Tenant will then have no further rights to the Available ROFR Space which is thereby fully released from this option. Tenant acknowledges that if Tenant counteroffers the ROFR Offer, or does not timely deliver Tenant’s unconditional and irrevocable acceptance of the ROFR Offer, then Landlord shall be at liberty at any time thereafter in its sole and absolute discretion (even if Landlord has commenced negotiations with Tenant) to determine that Tenant has waived its option to take the Available ROFR Space, and Landlord may thereupon lease the Available ROFR Space to a Prospect as aforesaid.    Landlord must re-offer the Available ROFR Space to Tenant if, in the Landlord’s subsequent negotiations or re-negotiations with the Prospect, the average Annual Rent per square foot is reduced by more than ten percent (10%), if any available tenant improvement allowance is increased by more than ten percent (10%) per square foot, or if there is any other change in material economic terms and conditions (collectively, a “change in material economic terms and conditions”). In the event of such material economic change, upon receipt of a written notification Landlord with the terms of such re-offer (the “Re-Offer”), Tenant shall have a period of five (5) days from and after the date of delivery of the re-offer notice in which to exercise Tenant’s right to lease the Available ROFR Space pursuant to the terms and conditions of the Re-Offer, failing which Landlord shall be at liberty to lease the Available ROFR Space to a Prospect on substantially the same material economic terms and conditions set forth in the Re-Offer.  Unless otherwise agreed in writing by Landlord and Tenant’s real estate broker, in no event shall Landlord be obligated to pay a commission with respect to any space leased by Tenant under this Exhibit, 

		
	
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AND TENANT AND LANDLORD SHALL EACH INDEMNIFY THE OTHER AGAINST ALL COSTS, EXPENSES, ATTORNEYS’ FEES, AND OTHER LIABILITY FOR COMMISSIONS OR OTHER COMPENSATION CLAIMED BY ANY BROKER OR AGENT CLAIMING THE SAME BY, THROUGH, OR UNDER THE INDEMNIFYING PARTY. Such indemnity shall survive the termination of the Lease.  In no event may Tenant elect to accept only a portion of the Available ROFR Space offered to Tenant under the ROFR Offer.

(b)If Tenant exercises such option, then effective as of the date Landlord delivers the Available ROFR Space, the Available ROFR Space shall automatically be included within the Premises and subject to all the terms and conditions of the Lease, except as set forth in the ROFR Offer and as follows:

(i)Tenant's Proportionate Share shall be recalculated, using the total square footage of the Premises, as increased by the Available ROFR Space.

(ii)Unless otherwise set forth in the ROFR Offer, the Available ROFR Space shall be leased on an “AS-IS”, “WITH ALL FAULTS” basis and Landlord shall have no obligation to improve the Available ROFR Space or grant Tenant any improvement allowance thereon.

(iii)Landlord will use reasonable diligence to make the Available ROFR Space available to Tenant on the date specified in the ROFR Offer.  Landlord shall not be liable for the failure to give possession of the Available ROFR Space to Tenant on such date, and such failure shall not impair the validity of the Lease, or extend the Term, but the rent for the Available ROFR Space shall be abated until possession is delivered to Tenant and such abatement shall constitute full settlement of all claims that Tenant might otherwise have against Landlord by reason of such failure to give possession of the Available ROFR Space to Tenant on the date originally identified by Landlord.

(c)Within thirty (30) days of Tenant’s acceptance of the ROFR Offer and its compliance with the terms of this Exhibit, Landlord shall prepare and deliver and Tenant shall execute an amendment to the Lease confirming the inclusion of the Available ROFR Space, Tenant’s Proportionate Share, as revised, and the terms of the ROFR Offer including the Annual Rent and the Monthly Installment of Rent for the Available ROFR Space and the Lease Term for the Available ROFR Space; provided however that Landlord’s failure to prepare or Tenant’s failure to execute such amendment shall not affect the validity of the exercise of the option or Tenant’s obligations with respect to the Available ROFR Space.

(d)This option is subordinate to all rights of renewal, extension, expansion, relocation or first offer or refusal rights or any similar rights as to the ROFR Space in favor of other tenants in the Building as of the Effective Date of this Amendment.  Tenant acknowledges that this option is also subordinate to Landlord’s right to negotiate new leases with any occupant of the ROFR Space pursuant to existing leases or agreements whether or not such leases or agreements contain rights of renewal, and Landlord shall not be required to deliver a ROFR Notice to Tenant before consummating any new lease between Landlord and such occupant for ROFR Space, and Tenant may not exercise its option hereunder with respect to such ROFR Space.  

(e)This option and Tenant's rights under this Exhibit are personal to Reata Pharmaceuticals, Inc. and its Affiliate, and cannot be exercised by any sublessee or other assignee of Tenant.  Without limitation on any other provisions of this Exhibit, this option shall terminate and be of no further force or effect if (i) Tenant does not timely and properly exercise the option, or has declined to lease the Available 

		
	
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ROFR Space, (ii) Landlord terminates Tenant's right to possession due to an Event of Default, (iii) Tenant is in occupation of less than the entire of the Premises, (iv) Tenant ceases operating business from the Premises for in excess of thirty (30) days for reasons other than casualty or approved repairs, (v) Tenant assigns or is deemed to have assigned its interest under this Lease other than to an Affiliate, (vi) Tenant has advised Landlord in writing that it does not intend to renew its lease of the Premises upon expiration of the Term, or (vii) there is less than nine (9) months remaining in the Term and Tenant has not exercised its renewal option.

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B-3InitialsExhibit 10.22

 

STOCKHOLDERS
AGREEMENT

 

STOCKHOLDERS
AGREEMENT dated as of November 13, 2017 (this “Agreement”), by and among NEXXIS INC., a Nevada corporation (the “Company”),
and each holder of the Company’s Common Stock, par value $0.0001 per share (“Common Stock”), who is or becomes
a party to this Agreement (collectively, the “Stockholders”).

 

WHEREAS,
after giving effect to the Company’s articles of incorporation (the “Articles”), which have been approved by
the Stockholders, the Company has authorized capital stock consisting of 10,000,000 shares of Common Stock, of which an aggregate
of 1,000,000 shares of Common Stock (the “Securities” or the “Shares”) will initially be issued and outstanding;

 

WHEREAS,
the Stockholders desire to promote the best interests of the Company by providing for the management of the Company and by regulating
the transfer and voting of shares of Common Stock and certain other matters; and

 

WHEREAS,
in the event any Stockholder transfers the Securities, then the party acquiring the Securities is required to enter this Agreement
with the Company.

 

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

 

1.       Shares
Owned by Stockholders.

 

1.1       Contemporaneously
with the execution of this Agreement:

 

(a)       The
Company is issuing and selling to the Stockholders and the Stockholders are purchasing from the Company, an aggregate of one million
(1,000,000) shares of Common Stock pursuant to Subscription Agreements (the “Subscription Agreements”) dated the date
of this Agreement.

 

(b)       After
giving effect to the transactions described in this Section 1.1, the outstanding shares of Common Stock will be owned as follows:

 

	Name	 	Shares	 	 	Percentage of Ownership	 
	 	 	 	 	 	 	 
	Data Storage Corporation	 	 	800,000	 	 	 	80.00	%
	John Camello	 	 	200,000	 	 	 	20.00	%
	 	 	 	 	 	 	 	 	 
	Total:	 	 	1,000,000	 	 	 	100.00	%

 

    	

     

    

 

1.2       Each
Stockholder represents and warrants to the other Stockholders and the Company that all of the shares referred to in Section 1.1
of this Agreement as being owned by such Stockholder are and will be, upon issuance thereof as provided in Section 1.1 of this
Agreement, owned by such Stockholder free and clear and not subject to any pledge, security interest, lien, option, right or other
encumbrance, except for the escrow agreements referred to in this Agreement.

 

1.3       Any
additional shares of Common Stock which any Stockholder may acquire, whether from the Company or another Stockholder or otherwise,
shall be subject to this Agreement in the same manner as if such shares were owned by such Stockholder on the date of this Agreement.

 

		2.	Restrictions
                                         on Transfer. 

 

2.1       Prohibited
Transfer. No Stockholder shall voluntarily or involuntarily (whether by operation of law or otherwise) sell, assign, transfer,
devise, encumber, pledge, give, bequeath, hypothecate or otherwise dispose of (“Transfer”) any or all of the Shares
now or hereafter legally or beneficially owned by a Stockholder, except as otherwise specifically provided in this Agreement.
Any Transfer of Shares made by any Stockholder shall be void unless otherwise specifically authorized by this Agreement. The Company
or its transfer agent shall not permit any transfer to be recorded on the books unless the transfer is made in accordance with
this Agreement.

 

2.2       Legend.
Each stock certificate representing the Shares that are subject to this Agreement shall bear the following legend (together with
any other legend required or appropriate for compliance with state and federal securities laws):

 

“This
certificate and the shares of stock represented by it are held subject to the terms and restrictions of that certain Stockholders’
Agreement, dated as of November 13, 2017 by and among certain holders of its securities (the “Agreement”) and all amendments
thereto, and may not be sold, pledged, assigned, distributed, bequeathed, encumbered, gifted, devised, hypothecated or otherwise
transferred except in accordance with the terms and provisions thereof. A copy of the Agreement, and any and all amendments thereto,
is on file in the office of the secretary of the Company.”

 

		3.	Transfers
                                         of Shares.

 

3.1.       Restrictions
on Resales. The Minority Stockholder (as defined below) may not sell, transfer or convey, or otherwise dispose of, in one
or a series of transactions, Shares owned by the Minority Stockholder to any person or entity without the express written consent
of Data Storage Corporation (the “Principal Stockholder”), subject to the terms of this Agreement.

 

    	-2-

     

    

 

For
purposes of this Agreement, the term “Affiliate” means any corporation, association, partnership, limited liability
company, trust, joint venture, unincorporated organization, business, or other legal entity or family member that, directly or
indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with such Selling Stockholder.

 

3.2       Tag
Along Rights. If at any time or from time to time, the Principal Stockholder proposes to sell any Shares, then any of the
other Stockholders of the Company that are part of this Agreement (each, a “Minority Stockholder”) may include in
the sale to the proposed transferee, on the same terms and conditions, Shares owned by the Minority Stockholder. The Principal
Stockholder shall not consummate or enter into any agreement to consummate such sale unless the prospective purchaser also offers
to purchase a corresponding percentage of the Shares of each Minority Stockholder that has exercised his, her, or its right to
participate in such sale under this Section 3.2 at the same price and on the same other terms as the prospective purchaser offered
to purchase the Shares of the Principal Stockholder (the “Tag-Along Right”).

 

(a)       If
the Principal Stockholder desires to sell in accordance with this Section, it shall communicate in writing such election (a “Tag
Along Notice”), which communication shall state (i) the number of Offered Shares that the Principal Stockholder desires
to sell, (ii) the name and address of the prospective purchaser, and (iii) the material terms of such sale, including the amount
of consideration (and the value of any non-cash consideration) offered by the prospective purchaser. The Tag Along Notice shall
be delivered in person or mailed to the Minority Stockholder at the address set forth in the books and records of the Company
in accordance with this Agreement within ten (10) days of the date of such offer.

 

(b)       Within
thirty (30) days from the delivery of the Tag Along Notice, the Minority Stockholder may elect to exercise his, her, or its Tag-Along
Right by delivering written notice to the Approving Shareholders of his, her or its election to participate in the sale of the
Shares being offered for sale. If a Minority Stockholder exercises his, her or its Tag Along Rights, such Minority Stockholder
shall request the Principal Stockholder to submit an offer (the “Revised Offer”) to the prospective purchaser to include
for purchase all or none of the Shares of the Minority Stockholder on the same terms as conditions (“Original Conditions”)
under which the prospective purchaser would purchase Shares from the Principal Stockholder. The Revised Offer shall be required
to be submitted within 20 days of such request.

 

(c)       If
a Revised Offer is submitted with terms of sale substantially equal to or greater than the Original Conditions, the Principal
Stockholder shall be obligated to accept the Revised Offer and consummate the sale contemplated thereby. If the terms and conditions
contained in the Revised Offer are not substantially equal to or greater than the Original Conditions, then the Principal Stockholder
shall have the right to cause the Revised Offer to be rejected by the Principal Stockholder.

 

    	-3-

     

    

 

3.3       Drag-Along
Rights. Anything in this Agreement to the contrary notwithstanding, if the Principal Stockholder proposes to transfer its
shares to a third-party buyer as permitted by the terms of this Agreement, the Principal Stockholder shall notify the Minority
Stockholder in writing of such proposed sale, the terms and conditions thereof and provide documentary evidence of the identity
of such third-party buyer and its relationship to the Principal Stockholder. The Principal Stockholder shall have the right (a
“Drag-Along Right”) to force the Minority Stockholder to participate in the transfer of shares to the third-party
buyer on the same terms and conditions upon which the Principal Stockholder participates in such transfer to the third-party buyer.

 

3.4       Acquisition
of Minority Stockholder Shares by Principal Stockholder. The Principal Stockholder shall have the right during the Term (as
defined herein) of this Agreement to acquire all of the issued and outstanding Minority Stockholder Shares at any time after the
18-month anniversary of the filing of the Articles based on a formula of 4.5 times the Company’s EBITDA. The EBITDA multiple
resulting from the forgoing calculation shall be based on end-user accounts which are invoiced by the Company for their services.
Commission revenue to be included in the above EBITDA multiple shall be limited to ten percent (10%) of the Company’s overall
revenue. Commission revenue is defined as services billed by a third party resulting in a commission payment to the Company.

 

3.5       Transfers
by Operation of Law. If any Stockholder’s Shares are transferred by operation of law due to such Stockholder’s
bankruptcy, an attachment and levy on the Shares by such Stockholder’s creditor or resulting from some other event (collectively,
a “Transfer by Operation of Law”), then the other Stockholders and the Company shall have the right to acquire such
Shares in a manner consistent with this Agreement. The purchase price of such Shares shall be determined by the parties to such
transaction, or absent an agreement within twenty (20) days after such Transfer by Operation of Law, by arbitration. The effective
date of the transfer of the Shares of such Stockholder to the other Stockholders or the Company shall be the day immediately preceding:
(A) the bankruptcy of such Stockholder; (B) the date such Stockholder’s creditor attaches and levies against such Shares;
or (C) the date on which the Shares are otherwise transferred by operation of law. 

 

3.6       Conditions
of Sale. The Shares sold pursuant to this Section shall be free and clear of all liens, claims, and encumbrances whatsoever
except those arising under this Agreement. The offer from a third party as provided in this Agreement shall be accompanied by
the deposit of ten percent (10%) of the purchase price in cash with an escrow agent.

 

3.7       Failure
to Deliver Shares. If any party required under this Agreement fails to give any notice, make any offer, sell any Shares,
or close any sale, then any Stockholder of the Company may institute and maintain a proceeding to compel the specific performance
of this Agreement by the defaulting party, and the successful party or parties shall be entitled to all court costs and reasonable
trial and appellate attorney’s fees incurred in such proceeding.

 

3.8       Termination
of Restrictions on Transfer. The rights, restrictions and procedures contained in this Section shall terminate immediately
prior to the closing of an initial public offering of the Common Stock of the Company, or immediately prior to the consummation
of an Approved Sale. “Approved Sale” means a sale of the entire Company, whether such sale is structured as a sale
of all of the Company’s outstanding shares of capital stock, a sale of all or substantially all of the assets of the Company,
or as a merger, consolidation or otherwise.

 

    	-4-

     

    

 

		4.	Corporate
                                         Opportunity; Confidentiality.

 

4.1       During
the term of this Agreement, the Company may disclose or make known to the Stockholders, and the Stockholders may be given access
to or may become acquainted with, certain information, trade secrets or both relating to the Company and/or the business of the
Company, including but not limited to confidential information and trade secrets regarding tapes, computer programs, designs,
skills, procedures, methods, documentation, drawings, facilities, customers, policies, marketing, pricing, sales lists and leads,
and other information and know-how, not previously known to such Stockholder(s), all relating to or useful in the Company’s
business or the business of its affiliates (collectively “Confidential Information”), and which the Company considers
proprietary and desires to maintain confidential.

 

4.2       During
the term of this Agreement and at all times thereafter, the Stockholders shall not in any manner, either directly or indirectly,
divulge, disclose or communicate to any person or firm, except to or for the Company’s benefit as directed by the Company,
any of the Confidential Information which he may have acquired in the course of or as an incident to his status as a Stockholder,
director, consultant, agent or employee of the Company, the parties agreeing that such Confidential Information affects the successful
and effective conduct of the Company’s business and its goodwill and that any breach of the terms of this Section is a material
breach of this Agreement. All equipment, documents, memoranda, reports, records, files, materials, samples, books, correspondence,
lists, other written and graphic records, and the like (collectively, the “Materials”), affecting or relating to the
Company or its business, which a Stockholder shall prepare, use, construct, observe, possess or control shall be and remain the
Company’s sole property. If at any time a Stockholder shall cease to be a Stockholder of the Company, the Materials and
all copies thereof in the custody or control of any such Stockholder shall be delivered promptly to the Company.

 

4.3       Stockholders
agree that during the term of this Agreement (as defined herein) and until the first anniversary of the expiration of the Term
of this Agreement, the Minority Stockholder will not, except with the prior written consent of the Board of Directors, directly
or indirectly, either for himself or for any other person, partnership, corporation, joint venture, business trust, cooperative,
limited partnership or any other entity, solicit any (i) clients of the Company, (ii) prospects in the Company’s database
or otherwise, (iii) distribution channels of the Company, (iv) customers of the Company or (v) employees of the Company.

 

		5.	Management
                                         of the Company/Board of Directors and Future Capital Contributions.

 

5.1       The
Board of Directors of the Company shall be responsible for the overall management of the Company. All Stockholders agree to vote
for the Directors nominated by respective parties to this Agreement. The Board of Directors shall initially consist of three (3)
directors. Each of the Shareholders agrees to vote his, her or its Shares to elect the Shareholders as directors of the Company,
and such Shareholders agree to accept such directorship until his, her or its resignation or removal in accordance with the Company’s
bylaws and all other corporate governing documents.

 

    	-5-

     

    

 

5.2
      Any future capital infusion requirements shall be determined by the Board of Directors.

 

		6.	Distributions
                                         of Income and Losses. 

 

6.1       Determination
of Net Income and Loss. The net profits or net losses of the Company for each fiscal year will be determined on an accrual
basis in accordance with generally accepted principles of accounting.

 

6.2       Annual
Distributions of Net Income. Annual post-audit profit distributions (the “Annual Distributions”) shall be issued
to the Company’s Stockholders in connection with the revenue of the Company (i) on a pro-rata basis (i.e. based on each
Stockholder’s percentage of ownership of the Company), (ii) based on no less than 50% of each Stockholder’s ownership
of the Company and (iii) such Annual Distributions shall be based on and comprised of available cash; provided, however,
that if cash is not available to issue Annual Distributions, any unissued Annual Distributions shall accrue and be issued within
30 days of the requisite cash becoming available in connection with such unissued Annual Distributions. At the sole discretion
of the Board of Directors of the Company Annual Distributions may be issued to the Company’s Stockholders based on no more
than 50% of each Stockholder’s ownership of the Company. As additional cash of the Company may from time to time become
available, additional distributions may be made to the Stockholders based on no less than 50% of each Stockholder’s ownership
of the Company. No Shareholder shall have priority over any other Shareholder either as to the return of his, her, or its capital
infusions or as to distributions made by the Company. 

 

7.       Services
to be Provided by Principal Stockholder. The Principal Stockholder shall provide certain services and resources (the “Principal
Stockholder Services”) to the Company during the Term of this Agreement, which such Principal Stockholder Services are set
forth on Exhibit A attached hereto.

 

8.       Termination.

 

8.1       Term. This
Agreement shall continue in force as to each Stockholder until such time as that Stockholder owns Common Stock or securities convertible
into Common Stock in an amount equal to zero percent (0.0%) of the then outstanding shares of Common Stock.

 

8.2       Termination. This
Agreement shall terminate and all rights and obligations hereunder shall cease upon the mutual agreement of the Stockholders. 

 

    	-6-

     

    

 

		9.	Miscellaneous
                                         Provisions.

 

9.1       Conflicts.
In the event of a conflict between the terms of this Agreement and similar terms in an option agreement or other agreement governing
shares of stock held by a Stockholder, the terms of this Agreement shall govern. 

 

9.2       Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the beneficiaries, heirs and representatives of
the Stockholders and the successors and assigns of the Company.

 

9.3       Jurisdiction,
Venue and Governing Law. This Agreement shall be governed by, and construed and interpreted in accordance with the laws of
the State of New York, without regard to such State’s principles of conflict of laws, except to the extent that the General
Corporation Law of the State of Nevada applies. The parties irrevocably and unconditionally agree that the exclusive place of
jurisdiction for any action, suit or proceeding (“Actions”) relating to this Agreement shall be in the federal
or state courts sitting in Suffolk County, New York, and each such party hereby irrevocably and unconditionally agrees to submit
to the jurisdiction of such courts for purposes of any such Actions. Each party irrevocably and unconditionally waives any objection
it may have to the venue of any Action brought in such courts or to the convenience of the forum. Final judgment in any such Action
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment, a certified or true copy of which shall
be conclusive evidence of the fact and the amount of any indebtedness or liability of any party therein described. 

 

9.4       WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

9.5       Counterparts.
This Agreement may be executed by the parties hereto in counterparts, each of which shall be deemed to be an original, but all
such counterparts shall constitute one and the same instrument, and all signatures need not appear on any one counterpart.

 

9.6       Stock
Splits, etc. All share numbers used in this Agreement are subject to adjustment in the case of any stock split, reverse stock
split, combination or similar events.

 

    	-7-

     

    

 

9.7       Notices.
All notices and other communications provided for herein shall be in writing and shall be deemed to have been duly given if delivered
personally, sent by registered or certified mail, return receipt requested, postage prepaid, sent via overnight delivery service
or sent via facsimile, and shall be effective (1) when personally delivered, (2) on the day following delivery to an overnight
courier service if sent for delivery within the United States (or on the second business day following delivery to such courier
service if sent for delivery outside the United States), (3) on the business day following receipt of transmission if sent via
facsimile, or (4) on the fifth business day after the date of mailing if sent by registered or certified mail, in each case to
the following addresses:

 

To
the Board or the Company:

 

Nexxis
Inc.

68
South Service Road, Suite 100

Melville,
New York 11747

Attn:
Charles M. Piluso, CEO

 

To
the Stockholders:

 

At
the address set forth on signature pages attached hereto.

 

Addresses
may be changed by written notice sent to the other party at the last recorded address of that party.

 

9.8        Amendments
and Waivers. No change or modification to this Agreement shall be valid unless the same is in writing and signed by the parties
hereto. Subject to the previous sentence, no waiver of any provision of this Agreement shall be valid unless in writing and signed
by the party against whom it is sought to be enforced. The failure of any party at any time to insist upon strict performance
of any condition, promise, agreement or understanding set forth herein shall not be construed as a waiver or relinquishment of
the right to insist upon strict performance of the same or other condition, promise, agreement or understanding at a future time.

 

9.9        Severability.
If any provision of this Agreement shall be adjudged by any court of competent jurisdiction to be invalid or unenforceable for
any reason, such judgment shall not affect, impair or invalidate the remainder of this Agreement.

 

9.10      Prior
Understandings. This Agreement embodies the entire understanding of the parties hereto, and supersedes all other oral or
written agreements or understandings between them regarding the subject matter hereof. In the event of any conflict between the
terms of this Agreement and the terms of any other agreement, the terms of this Agreement shall control. No change, alteration
or modification hereof may be made except in writing, signed by each of the parties hereto. The headings in this Agreement are
for convenience of reference only and shall not be construed as part of this Agreement or to limit or otherwise affect the meaning
hereof.

 

9.11      Further
Assurances. From and after the date of this Agreement, upon the request of a party, the other parties shall execute and deliver
such instruments, documents or other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate
fully the intent and purposes of this Agreement.

 

    	-8-

     

    

 

9.12     Dealings
in Good Faith; Best Efforts. Each party hereto agrees to act in good faith with respect to the other party or parties in
exercising its rights and discharging its obligations under this Agreement. Each party further agrees to use its best efforts
to ensure that the purposes of this Agreement are realized and to take all steps as are reasonable in order to implement the operational
provisions of this Agreement. Each party agrees to execute, deliver and file any document or instrument necessary or advisable
to realize the purposes of this Agreement.

 

9.13     Indemnification
by Company. The Company agrees to indemnify and hold each of the Shareholders harmless from and against any claim, loss,
damage, liability or cost asserted against or incurred by such Shareholder that is attributable to the services rendered in that
capacity, except for any such claim, loss, damage, liability or cost determined by a court having proper jurisdiction, to be the
direct result of an act by the Shareholder that is: (i) unlawful; (ii) caused by such Shareholders’ bad faith, gross negligence
or willful misconduct, or (ii) specifically outside the scope of such Shareholder’s authority.

 

9.14     Inspection
Rights. Upon reasonable notice from a Shareholder, the Company shall, and shall cause its directors, officers and employees
to, afford each Shareholder reasonable access during normal business hours to (i) the Company’s properties, offices, plants
and other facilities and (ii) the corporate, financial and similar records, reports and documents of the Company, including, without
limitation, all books and records, minutes of proceedings, internal management documents, reports of operations, reports of adverse
developments, copies of any board of director letters to Shareholders, and to permit the Shareholder to examine such documents
and make copies thereof.

 

[Signature
Pages Follow]

 

    	-9-

     

    

 

IN
WITNESS WHEREOF, the parties have duly executed this Agreement or caused this Agreement to be duly executed by their respective
officers or other representatives thereunto duly authorized as of the day and year first set forth above.

 

	 	THE COMPANY:
	 	 	 
	 	NEXXIS INC.
	 	 	 
	 	By:	/s/Charles
    M. Piluso
	 	 	Name: Charles M. Piluso
	 	 	Title: CEO 

  

    	

     

    

 

IN
WITNESS WHEREOF, the undersigned hereby executes the Stockholders Agreement of Nexxis Inc. dated as of November 13, 2017 (the “Agreement”)
and hereby agrees to become a party to the Agreement, effective as of the date hereof, and hereby agrees that the undersigned
is a “Stockholder” as defined in the Agreement and shall be bound by all the terms and provisions of the Agreement
as though an original signatory thereto and that the Securities acquired by the undersigned are “Securities” subject
to the terms of the Agreement. The undersigned acknowledges receipt of a copy of the Agreement and acknowledges that the undersigned
has read the Agreement and is familiar with its terms.

	 	 	 	 
	Principal Stockholder:	 	Minority Stockholder:
	 	 	 	 
	Data Storage Corporation	 	 
	 	 	 	 
	By:	/s/Charles
    M. Piluso	 	/s/John
    Camello
	Name: Charles M. Piluso	 	John Camello
	Title: CEO	 	 
	 	 	 	 
	68 South Service Road, Suite
    100	 	15 Laurel Lane______
	Number and Street	 	Number and Street
	 	 	 	 
	Melville, New York 11747	 	Commack, New York 11725
	City, State and Zip	 	City, State and Zip

 

    	

     

    

 

Exhibit
A

  

PRINCIPAL
STOCKHOLDER SERVICES

 

The
Principal Stockholder shall provide, or cause to be provided, to the Company certain ongoing services and resources including,
but not limited to:

 

		A.	Finance
                                         and Administration:

 

		i.	Payroll; 

		ii.	Human
                                         resources;

		iii.	Administrative
                                         support;

		iv.	Accounting
                                         and Bookkeeping;

		v.	General
                                         office space and required equipment and services to conduct business; and

		vi.	Legal
                                         support as required for Vendor and Customer contract negotiations, new-hires, general
                                         counsel, etc.

 

		B.	Sales
                                         and Marketing:

 

		i.	Access
                                         to all marketing companies and vendors, which will offer counsel and provide for all
                                         marketing campaigns, client surveys and events;

 

		ii.	Creation
                                         of a website and further development of the current website;

 

		iii.	Access
                                         to Data Storage Corporation’s customer base and contacts for cross selling with
                                         coordination from Data Storage Corporation; and

 

		iv.	Warm
                                         introductions by Data Storage Corporation management to their customer base and Channel
                                         Partners to enable and support the Company’s sales efforts for rapid expansion.
                                         For example, webinars, joint calls and email campaigns.

 

		C.	Operations
                                         and engineering:

 

		(i)	Technical
                                         support for networking to Data Storage Corporation clients for internet and dedicated
                                         circuits for access to Data Storage Corporation’s IaaS, SaaS and Disaster Recovery
                                         solutions;

 

		(ii)	The
                                         Company will be permitted to obtain technical support from a third party in the event
                                         Data Storage Corporation and Hosted Voice Wholesale Providers cannot provide the necessary
                                         technical support for Hosted Voice Sales, Installation and Service;

 

		(iii)	Access
                                         to Data Storage Corporation cages and collocations providers for required equipment;
                                         and

 

		(iv)	Technical
                                         support for selection, installation, and ongoing requirements of products and services
                                         acquired for the Company’s portfolio.

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