Document:

PURCHASE AND SALE AGREEMENT

 

By and between

 

COP-WESTERN AVENUE, LLC

a California limited liability company

 

as Seller,

 

and

 

MMB MANAGEMENT, LLC

a California limited liability company

 

as Purchaser

 

December 28, 2012

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	1.	DEFINITIONS	1
	 	 	 
	2.	PURCHASE AND SALE; CLOSING	3
	 	2.1	Purchase and Sale	3
	 	2.2	Closing	3
	 	2.3	Payment of Purchase Price	3
	 	2.4	Escrow Agent	4
	 	 	 	 
	3.	TITLE, DILIGENCE MATERIALS	5
	 	3.1	Title	5
	 	3.2	Survey	5
	 	3.3	Property Documents	5
	 	3.4	Inspection Indemnity	7
	 	 	 	 
	4.	CONDITIONS TO THE PURCHASER’S OBLIGATION TO CLOSE	8
	 	4.1	Closing Documents	8
	 	4.2	Title Policy	9
	 	4.3	Other Conditions	9
	 	 	 	 
	5.	CONDITIONS TO SELLER’S OBLIGATION TO CLOSE	10
	 	5.1	Purchase Price	10
	 	5.2	Closing Documents	10
	 	5.3	Other Conditions	10
	 	 	 	 
	6.	REPRESENTATIONS AND WARRANTIES OF SELLER	10
	 	6.1	Status and Authority of the Seller	10
	 	6.2	Action of the Seller	10
	 	6.3	No Violations of Agreements	11
	 	6.4	Litigation	11
	 	6.5	Existing Leases	11
	 	6.6	Agreements	11
	 	6.7	Not a Foreign Person	11
	 	6.8	Prohibited Person	11
	 	6.9	No Approval	11
	 	6.10	Bankruptcy	12
	 	6.11	No Notices	12
	 	6.12	Hazardous Materials	12
	 	6.13	Cause to be Untrue	12
	 	6.14	AS-IS	13
	 	 	 	 
	7.	REPRESENTATIONS AND WARRANTIES OF PURCHASER	14
	 	7.1	Status and Authority of the Purchaser	14
	 	7.2	Action of the Purchaser	14
	 	7.3	No Violations of Agreements	14

 

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	 	 	 	Page
	 	 	 	 
	 	7.4	Litigation	14
	 	7.5	Prohibited Person	14
	 	7.6	No Approvals	14
	 	7.7	Bankruptcy	15
	 	 	 	 
	8.	COVENANTS OF THE SELLER	15
	 	8.1	Approval of Leasing	15
	 	8.2	Operation of Property	15
	 	8.3	Compliance with Laws	15
	 	8.4	Compliance with Agreements	15
	 	8.5	Notice of Material Changes or Untrue Representations	16
	 	8.6	Insurance	16
	 	8.7	Cooperation	16
	 	 	 	 
	9.	APPORTIONMENTS	16
	 	9.1	Real Property Apportionments	16
	 	9.2	Closing Costs	18
	 	 	 	 
	10.	DAMAGE TO OR CONDEMNATION OF PROPERTY	19
	 	10.1	Casualty	19
	 	10.2	Condemnation	19
	 	10.3	Survival	19
	 	 	 	 
	11.	DEFAULT	 	19
	 	11.1	Default by the Seller	19
	 	11.2	Default by the Purchaser	20
	 	 	 	 
	12.	Miscellaneous	20
	 	12.1	Brokers	20
	 	12.2	Publicity	21
	 	12.3	Notices	21
	 	12.4	Waivers	22
	 	12.5	Assignment; Successors and Assigns	23
	 	12.6	Severability	23
	 	12.7	Counterparts	23
	 	12.8	Performance on Business Days	23
	 	12.9	Attorneys’ Fees	23
	 	12.10	Section and Other Headings	24
	 	12.11	Time of Essence	24
	 	12.12	Governing Law	24
	 	12.13	Arbitration	24
	 	12.14	Like-Kind Exchange	25
	 	12.15	Recording	26
	 	12.16	Non-liability of Representatives of Seller	26
	 	12.17	Non-liability of Representatives of Purchaser	26
	 	12.18	Waiver	26

 

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	 	 	 	Page
	 	 	 	 
	 	12.19	Further Assurances	26
	 	12.20	[Intentionally omitted.]	26
	 	12.21	IRS Real Estate Sales Reporting	26
	 	12.22	Entire Agreement	26
	 	12.23	Interrelation	26

 

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PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE
AGREEMENT is made as of December 28, 2012, by and between COP-WESTERN AVENUE, LLC, a California limited liability company (the
“Seller”), and MMB MANAGEMENT, LLC, a California limited liability company (the “Purchaser”).

 

WITNESSETH:

 

WHEREAS, the Seller
is the owner of the Property (this and other capitalized terms used and not otherwise defined herein shall have the meanings given
such terms in Section 1); and

 

WHEREAS, the Seller
wishes to sell to the Purchaser, and the Purchaser desires to purchase from the Seller, the Property, subject to and upon the terms
and conditions hereinafter set forth;

 

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

 

1.          DEFINITIONS.
Capitalized terms used in this Agreement shall have the meanings set forth below or in the section of this Agreement referred to
below:

 

1.1           “Agreement”
shall mean this Purchase and Sale Agreement, together with any exhibits and schedules attached hereto, as it and they may be amended
from time to time as herein provided.

 

1.2           “Business
Day” shall mean any day other than a Saturday, Sunday or any other day on which banking institutions in the State
of California are authorized by law or executive action to close.

 

1.3           “Closing”
shall have the meaning given such term in Section 2.2.

 

1.4           “Closing
Date” shall have the meaning given such term in Section 2.2.

 

1.5           “Commitment”
shall have meaning set forth in Section 3.1.

 

1.6           “Deposit”
shall have the meaning set forth in Section 2.3.

 

1.7           “Environmental
Laws” shall mean any substance, chemical, waste or material that is or becomes regulated by any federal, state or
local governmental authority because of its toxicity, infectiousness, radioactivity, explosiveness, ignitability, corrosiveness
or reactivity, including, without limitation, asbestos, solvents, polychlorinated biphenyls, flammable explosives, oil, petroleum
or any refined petroleum product.

 

    	 

    	 

    

  

1.8           “Escrow
Agent” shall have the meaning set forth in Section 2.4.

 

1.9           “Existing
Survey” shall mean the existing ALTA survey, if any, and any other “as-built” survey, for the Property.

 

1.10         “Existing
Title Policy” shall mean the existing title insurance policy for the Property.

 

1.11         “Grant
Deed” shall have the meaning set forth in Section 4.1(a).

 

1.12         “Hazardous
Materials” shall mean any substance, chemical, waste or material that is or becomes regulated by any federal, state
or local governmental authority because of its toxicity, infectiousness, radioactivity, explosiveness, ignitability, corrosiveness
or reactivity, including, without limitation, asbestos, solvents, polychlorinated biphenyls, flammable explosives, oil, petroleum
or any refined petroleum product.

 

1.13         “Improvements”
shall mean the Seller’s entire right, title and interest in and to the existing buildings, fixtures and other structures
and improvements situated on, or affixed to, the Land.

 

1.14         “Land”
shall mean, the Seller’s entire right, title and interest in and to (a) the parcel(s) of land described in Exhibit
A hereto, together with (b) all easements, rights of way, privileges, licenses and appurtenances which the Seller may own
with respect thereto.

 

1.15         “Leases”
shall mean the leases identified in the Rent Roll and any other leases hereafter entered into in accordance with the terms of this
Agreement, and all of Seller's rights and interests therein, including Seller's rights to any tenant deposits held by or for Seller
pursuant to the Leases.

 

1.16         “Other
Property” shall mean the Seller’s entire right, title and interest in and to (a) all fixtures, machinery, systems,
equipment and items of personal property owned by the Seller and attached or appurtenant to, located on and used in connection
with the ownership, use, operation or maintenance of the Land or Improvements, if any, (b) all freely assignable intangible property
owned by the Seller arising from or used in connection with the ownership, use, operation or maintenance of the Land or Improvements,
if any; and (c) all use, occupancy, building and operating licenses, permits, approvals, and development rights, if any, and (d)
all freely assignable plans and specifications related to the Land and Improvements, if any. Seller shall not be required to obtain
any consents to assignment of the Other Property as a condition to closing.

 

1.17         “Permitted
Exceptions” shall mean, collectively, (a) liens for taxes, assessments and governmental charges not yet due and payable
or due and payable but not yet delinquent; (b) the Leases, and (c) such other nonmonetary encumbrances with respect to the Property
as may be shown on any supplemental title report which are not objected to by the Purchaser (or which are objected to, and subsequently
waived, by the Purchaser) in accordance with Section 3.1.

 

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1.18         “Property”
shall mean, collectively, all of the Land, the Improvements and the Other Property.

 

1.19         “Purchase
Price” shall mean Seventeen Million Six Hundred Thirty-One Four Hundred Fifty-Eight Dollars ($17,631,458) in good
funds, plus or minus all adjustments, prorations, and credits as provided in this Agreement.

 

1.20         “Purchaser”
shall have the meaning given such term in the preamble to this Agreement, together with any permitted successors and assigns.

 

1.21         “Rent
Roll” shall mean Schedule 1 to this Agreement.

 

1.22         “Seller”
shall have the meaning given such term in the preamble to this Agreement, together with any permitted successors and assigns.

 

1.23         “Survey”
shall have meaning set forth in Section 3.2.

 

1.24         “Title
Company” shall mean First American Title Insurance Company at the office set forth in Section 12.3:
Attention Lance Capel, Title Officer.

 

1.25         “Title
Inspection Period” shall have the meaning set forth in Section 3.1.

 

2.           PURCHASE
AND SALE; CLOSING.

 

2.1           Purchase
and Sale. In consideration of the payment of the Purchase Price by the Purchaser to the Seller and for other good and valuable
consideration, the Seller hereby agrees to sell to the Purchaser, and the Purchaser hereby agrees to purchase from the Seller,
the Property for the Purchase Price, subject to and in accordance with the terms and conditions of this Agreement. .

 

2.2           Closing.
The purchase and sale of the Property shall be consummated at a closing (the “Closing”) to be processed
at the offices of the Escrow Agent on or before January 23, 2013. The Closing shall be the date that the Grant
Deed for the Property is recorded in the applicable County recorder’s office..

 

2.3           Payment
of Purchase Price.

 

(a)          Within
two (2) Business Days of Opening of Escrow pursuant to Section 2.4, Purchaser shall deposit in escrow with Escrow
Agent (as defined in Section 2.4) as the initial earnest money deposit the sum of Five Hundred Thousand Dollars
($500,000) (the “Deposit”) in cash to be held and disbursed by Escrow Agent in accordance with the remaining
provisions of this Agreement including, without limitation, Section 3.3 below. The Deposit shall be non-refundable
in the event Purchaser gives Seller written notice of approval of the Property in accordance with Section 3.3 below.
In addition to the Deposit, Purchaser shall, concurrently with its execution of this Agreement, deliver to Seller the amount of
One Hundred Dollars ($100.00), which amount Seller and Purchaser agree has been bargained for as consideration for Seller's execution
and delivery of this Agreement and Purchaser’s right to inspect the Property. Such sum is in addition to and independent
of any other consideration or payment provided for in this Agreement and is non-refundable in all events.

 

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If the Escrow is not
opened pursuant to Section 4 on or before the date two (2) Business Days after the Opening of Escrow, or if Purchaser
fails to deposit the Deposit on or before the applicable date specified above, this Agreement and the Escrow shall automatically
stand terminated without further notice in which event Escrow Agent shall return any Deposit to Purchaser and Seller and Purchaser
shall have no further obligations under this Agreement except those that expressly survive termination hereunder.

 

(b)          One
(1) Business Day prior to the Closing Date, the Purchaser shall deposit in Escrow with Escrow Agent the balance of the Purchase
Price, subject to adjustment as provided in Article 9.

 

2.4          Escrow
Agent. Purchaser and Seller hereby engage First American Title Insurance Company (attention: Patty Beverly) at the office
set forth in Section 12.4 (“Escrow Agent”) to act as agent for the parties in closing this
transaction and carrying out the terms of this Agreement on the terms and conditions set forth herein. This Agreement shall constitute
escrow instructions to Escrow Agent; provided, however, in the event of any inconsistency between the provisions hereof and the
provisions of any escrow instructions requested by Escrow Agent, the terms hereof shall govern and control. “Opening
of Escrow” shall mean the date on which Escrow Agent receives one (1) fully executed original counterpart of this
Agreement from Seller and Purchaser together with the Deposit. Escrow Agent shall give Seller and Purchaser written notice of the
date of Opening of Escrow and its signature hereto indicating its acceptance of the escrow instructions. Escrow and the transaction
contemplated hereby shall close (referred to herein interchangeably as the “Close of Escrow,” the “Closing,”
or by similar words) when all documents and funds necessary to close this transaction have been received by Escrow Agent and the
Grant Deed conveying title to the Property to Purchaser has been recorded in accordance with Section 2.2.

 

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3.          TITLE,
DILIGENCE MATERIALS.

 

3.1           Title.
Escrow Agent is hereby instructed to, within three (3) days after the date of Opening of Escrow, provide to Purchaser a Commitment
for Title Insurance relating to the Property (which Commitment, together with any amendments thereto is referred to as the “Commitment”),
disclosing all matters of record which relate to the title to the Property and Escrow Agent’s requirements for both closing
the escrow created by this Agreement and issuing the policy of title insurance described in Section 4.2. Escrow Agent
shall also simultaneously cause legible copies of all instruments and other documents referred to in the Commitment (collectively,
the “Underlying Documents”) to be furnished to Purchaser. On or prior to the date which is ten (10) days
prior to the expiration of the Property Inspection Period, (the “Title Inspection Period”), the Purchaser
shall give the Seller written notice of any title exceptions (other than Permitted Exceptions) set forth on the Commitment as to
which the Purchaser objects, in its sole and absolute discretion. The Seller shall have the right, but not the obligation, to attempt
to remove, satisfy or otherwise cure any exceptions to title to which the Purchaser so objects; provided, however, that Seller
shall be obligated to remove, satisfy or otherwise eliminate, on or before Closing, all monetary liens, deeds of trust and monetary
encumbrances securing the payment of money (other than liens for property taxes not yet due and payable). If Seller elects to take
such actions as may be required to cause such exceptions as to which Purchaser has objected to be removed from the Commitment,
the Seller shall, on or before five (5) days following delivery of Purchaser's objections, give the Purchaser written notice thereof;
it being understood and agreed that the failure of the Seller to timely give such written notice as to any matters objected to
by Purchaser shall be deemed an election by the Seller not to remedy such matters. If the Seller elects (or is deemed to have elected)
not to cure any title defects to which the Purchaser has so objected, the Purchaser may elect (i) to terminate this Agreement prior
to the expiration of the Property Inspection Period, in which case Purchaser shall receive a prompt return of the Deposit and Purchaser
and Seller shall have no further obligations to each other under this Agreement except for those obligations hereunder which expressly
survive such termination, or (ii) to consummate the transactions contemplated hereby, notwithstanding such title defect, without
any abatement or reduction in the Purchase Price on account thereof (whereupon such objected to exceptions or matters shall be
deemed to be Permitted Exceptions). The Purchaser shall make any such election by written notice to the Seller given on or prior
to five (5) days after delivery of the Seller’s notice of its unwillingness or inability to cure (or deemed election not
to cure) such defect and time shall be of the essence with respect to the giving of such notice. Failure of the Purchaser to give
such notice shall be deemed an election by the Purchaser to proceed in accordance with clause (ii) above. Escrow Agent shall also
promptly deliver to Purchaser any updated or revised Commitment, and the corresponding Underlying Documents, which reflect any
new lien, encumbrance, or other exception to title first arising after the Opening of Escrow and not shown on the original Commitment
described above (a “New Title Matter”), as to which the same procedures, rights and other provisions
set forth above in this Section 3.1 shall apply, except that the Title Inspection Period with respect to any such
New Title Matter shall be five (5) days. Notwithstanding the foregoing, Purchaser shall have no right to disapprove any survey
inspection after the expiration of the Title Inspection Period.

 

3.2           Survey.
Seller shall, within five (5) days after the Opening of Escrow, provide Purchaser with any Existing Survey to the extent such exist
and are in Seller’s possession or control. Purchaser may, at its cost, cause any such survey to be updated, or, in the event
there is no Existing Survey, cause a new survey to be prepared (collectively, the “Survey”) and Purchaser
shall have until the end of the Title Inspection Period to object in writing to any matter shown in the Survey. If Purchaser fails
to object within such time period, the legal description of the Property and any other matters shown in the Survey shall be deemed
approved by Purchaser. If Purchaser does object in writing to any matter shown in the Survey, Purchaser shall specify the matter
objected to in the Title Objection Notice.

 

3.3           Property
Documents. Purchaser acknowledges that Seller has delivered to Purchaser the Rent Roll and true and correct copies of those
documents set forth on Schedule 2 attached hereto (the “Property Documents”). Purchaser
acknowledges and agrees that Seller’s Property Documents will be provided by Seller to accommodate and facilitate Purchaser’s
investigations relating to the Land and the Property and that, except as expressly set forth herein, Seller makes no representations
and warranties of any kind regarding the accuracy or thoroughness of the information contained in Seller’s Property Documents
and Purchaser shall not be entitled to rely on the Property Documents. Purchaser must perform its own due diligence investigation
of the Property.

 

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Subject to the terms
and conditions below, Purchaser shall have until 5:00 p.m. California time on January 17, 2013 (the “Property
Inspection Period”) to review the Property Documents and perform a feasibility study with respect to the Property
which may include market and engineering studies, leasing and financial investigations, soil tests, drainage studies, confirmation
that all utilities including water, electric, gas, sewer and telephone are available to the Property, environmental investigations,
confirmation of zoning, and/or such other tests, studies or investigations with respect to the Property as Purchaser deems appropriate
in its sole and absolute discretion. Subject to the rights of tenants of the Property under their respective leases and with reasonable
advance notice to Seller, Seller shall cause access to the Property to be available to Purchaser and the persons so designated
by it within 48 hours of Purchaser’s written request, but during the regular business hours of the respective Property, and
shall afford them the opportunity to inspect and perform any tests upon the Property that Purchaser deems necessary or appropriate
to determine whether the Property is suitable for Purchaser’s purposes, in Purchaser's sole and absolute discretion. At Seller’s
request, Seller and/or the involved tenant or its designees shall be entitled to accompany Purchaser during any such inspection
or contact with any tenant. Purchaser shall have the right to conduct a Phase I environmental site assessment and, with Seller's
prior written consent (to be given or withheld in Seller’s sole and absolute discretion) a Phase II environmental site assessment
(including soils borings, soil sampling and, if relevant, ground water testing, and invasive sampling of building materials with
respect to the Premises). Purchaser’s activities at the Property shall be conducted in such a manner so as not to unreasonably
interfere with the occupancy of tenants or their employees, licensees or invitees. Purchaser shall have the right to conduct tenant
interviews with Seller's prior consent, not to be unreasonably withheld, but with Purchaser to be accompanied by a Seller representative
if required by Seller. Notwithstanding the foregoing, Purchaser shall not conduct any intrusive testing of the Property without
the prior written consent of Seller, not to be unreasonably withheld.

 

If Purchaser, after conducting
such inspections, investigations, and tests, determines that the Property or any part thereof or the Property Documents, or any
other aspect of the Property whatsoever, are not, in Purchaser’s sole and absolute discretion, satisfactory for any reason,
or no reason at all, then Purchaser may elect, at any time on or prior to the date of expiration of the Property Inspection Period,
to cancel this Agreement and the Escrow by written notice to Seller and Escrow Agent, in which case Purchaser shall receive a prompt
return of the Deposit and Purchaser and Seller shall have no further obligations to each other under this Agreement except for
those obligations hereunder which expressly survive such termination. Upon termination by Purchaser, but not as a condition precedent
to the return of the Deposit to Purchaser, Seller shall have the right to demand from Purchaser and pay the reasonable copying
costs for copies of all documents obtained by or for Purchaser with respect to its investigations of the Property (which shall
be delivered by Purchaser without any representation or warranty or liability to Purchaser), except for such document which are
of an internal and proprietary nature or the dissemination of which has been prohibited by the third-party preparer thereof. Notwithstanding
anything else contained herein to the contrary, if Purchaser has not provided Seller with a written notice of disapproval of the
Property or Property Documents prior to the end of the Property Inspection Period, the Property and Property Documents shall be
deemed approved by Purchaser. When Purchaser gives Seller written notice of approval of its due diligence or is deemed to have
given Seller notice of such approval, the Deposit shall be non-refundable to Purchaser except for a default by Seller. If Purchaser
cancels this Agreement as provided in this Section 3.3, then (i) Escrow Agent shall return to Seller all documents
Seller deposited with Escrow Agent in connection with the Escrow; (ii) Escrow Agent shall return to Purchaser all documents Purchaser
deposited with Escrow Agent in connection with the Escrow; and (iii) Escrow Agent shall return the Deposit to Purchaser. Upon such
event, this Agreement and the Escrow shall be deemed null and void and neither party shall have any further rights or obligations
to the other hereunder or on account hereof, except for those which by the provisions of this Agreement are expressly stated to
survive or occur at termination of this Agreement. If Purchaser does not elect to cancel this Agreement as provided in this Section
3.3, Purchaser shall be deemed to have approved all matters concerning the Property and elected to proceed with the acquisition
of the Property in accordance with and subject to the terms and conditions of this Agreement.

 

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Purchaser or Purchaser’s
representatives, agents and/or consultants shall keep in full force and effect general liability insurance from an insurance company
and in form and substance reasonably approved by Seller, naming Seller as an additional insured during Purchaser’s or Purchaser’s
agents, representatives and/or consultants entries and inspections of the Property, as follows:

 

A.           Commercial
general liability insurance with combined single limits of not less than $2,000,000.00 per occurrence for bodily injury and property
damage, containing an endorsement insuring against damage to the Property and to or from underground utilities.

 

B.           Any
contractor hired to perform environmental tests to the Property shall maintain errors and omissions or professional liability insurance
covering injury or damage arising out of the rendering or failing to render professional services with limits of at least $2,000,000.00
per claim.

 

C.           All
insurance maintained under this Section 3.3 shall be procured from insurance companies reasonably satisfactory to
Seller.

 

Any damage, disturbance or other disruption
of the Improvements or the Land or other portion of the Property caused by Purchaser or its employees, contractors or agents shall
be promptly repaired and/or placed in the condition existing prior to disturbance thereof by Purchaser or its employees, contractors
and agents upon completion of any activities by such parties on or with respect to the Property.

 

3.4           Inspection
Indemnity. Purchaser shall indemnify, defend and hold harmless Seller for, from and against any and all losses, defaults,
liabilities, causes of action, demands, claims, damage or expenses of every kind including, without limitation, reasonable attorneys’
fees and court costs, arising as a result of each of the inspections by Purchaser and/or its employees, agents and contractors,
and from and against any mechanic’s liens or claims of lien resulting therefrom (“Inspection Indemnity”).
The Inspection Indemnity shall survive the Close of Escrow or any termination or cancellation of this Agreement, and shall not
be subject to or limited by, the provisions of Section 12.13 hereof.

 

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4.           CONDITIONS
TO THE PURCHASER’S OBLIGATION TO CLOSE. The obligation of the Purchaser to acquire the Property shall be subject
to the satisfaction of the following conditions precedent on and as of the Closing Date:

 

4.1          Closing
Documents. The Seller and Purchaser as applicable shall have delivered, or cause to have been delivered, to the Escrow
Agent the following:

 

(a)          A
deed to the Property in the form set forth in Exhibit “G” attached hereto (the “Grant Deed”),
duly executed and acknowledged by the Seller, conveying title to the Property, free from all liens and encumbrances other than
the Permitted Exceptions;

 

(b)          An
assignment by the Seller and an assumption by the Purchaser, in the form set forth on Exhibit “C” attached
hereto (“Assignment of Leases”), duly executed by the Seller and the Purchaser, of all of the Seller’s
right, title interest obligations and liabilities in, to and under the Leases;

 

(c)          Written
notice to each of the tenants of the Property in the form set forth on Exhibit “E” attached hereto (“Notices
to Tenants”) executed by Seller and Purchaser which notifies the tenants to pay to the Purchaser all rent and other
payments made by the tenants under the Leases from and after the Closing Date;

 

(d)          A
general assignment by the Seller and an assumption by the Purchaser in the form set forth on Exhibit “B”
attached hereto (“General Assignment”), duly executed by the Seller and the Purchaser, of all of the
Seller’s right, title interest obligations and liabilities, if any, in, to and under all freely transferable Other Property;

 

(e)          A
bill of sale executed by the Seller, without warranty of any kind except as expressly set forth in this Agreement, in the form
set forth on Exhibit “D” attached hereto (“Bill of Sale”), with respect to
any personal property owned by the Seller, situated at the Property owned by Seller and used in connection with the Property (it
being understood and agreed that no portion of the Purchase Price is allocated to personal property);

 

(f)          To
the extent the same are in the Seller’s possession or control, copies of all material documents and agreements, plans and
specifications and contracts, licenses and permits pertaining to the Property;

 

(g)          To
the extent the same are in the Seller’s possession or control, duly executed original copies of the Leases;

 

(h)          A
closing statement showing the Purchase Price, and fees, and costs and expenses paid in connection with the Closing, all according
to the applicable provisions of this Agreement; and

 

(i)          Such
other conveyance documents, certificates, deeds and other instruments as the Escrow Agent or the Title Company may reasonably require
and as are customary in like transactions in sales of property in similar transactions.

 

    	-8-

    	 

    

  

4.2          Title
Policy. The Title Company shall be prepared to issue to Purchaser, upon payment of the title premium, a CLTA standard coverage
policy of title insurance in the amount of the Purchase Price, showing title to the Property vested in the Purchaser subject to
only the exceptions approved by Purchaser pursuant to this Agreement. Purchaser shall have the right to obtain an ALTA extended
coverage policy of title insurance and any endorsements, provided: (i) Purchaser pays the cost of the ALTA policy and any endorsements,
in excess of the cost of the CLTA policy; (ii) Purchaser obtains, at Purchaser’s sole cost and expense, an ALTA survey of
the Property; and (iii) the issuance of the ALTA policy and/or endorsements shall not delay the Closing.

 

4.3          Other
Conditions.

 

(a)          All
representations and warranties of the Seller herein shall be true, correct and complete in all material respects on and as of the
Closing Date and the Seller shall not be in default under this Agreement.

 

(b)          No
later than five (5) Business Days prior to the Closing Date, Seller shall have obtained estoppel certificates from all tenants
of the Property, in the form prescribed by the particular tenant’s corresponding Lease, and if (and only if) no estoppel
certificate form is prescribed by the particular Lease, then in a form attached hereto as Exhibit “F”
(the “Tenant Estoppels”). Tenant Estoppels presented to Purchaser and not objected to within three (3)
Business days shall be deemed approved. Such Tenant Estoppels shall be consistent with each corresponding Lease, and shall not
reveal any default by landlord or tenant, any right to offset rent by the tenant or any claim of the same. Notwithstanding the
foregoing, any modification by a tenant to an estoppel certificate to qualify with a knowledge standard, or to conform a statement
to the applicable Lease shall not be grounds for disapproval by Purchaser. Seller shall make reasonable efforts to obtain and deliver
the Tenant Estoppels required under this Section 4.3(b), provided, however, in no event shall Seller be deemed in
default under this Agreement in the event of Seller’s inability to timely provide all of the required Tenant Estoppels hereunder,
and Purchaser’s sole remedy against Seller in the event of Seller’s inability to provide the required Tenant Estoppels
shall be to terminate this Agreement, receive a refund of its Deposit.

 

(c)          At
such time as Seller delivers to Purchaser Tenant Estoppels from all the tenants, and same have not been disapproved by Purchaser
as provided above, then the Purchaser’s condition to Closing set forth in this Section 4.3(b) shall automatically
be deemed satisfied, and Seller shall have no obligation to execute any substitute Tenant Estoppels for any tenant that has not
delivered an Estoppel Certificate, or for any Estoppel Certificate that has been disapproved by Purchaser. Notwithstanding anything
herein to the contrary, in the event that Seller is unable, despite its reasonable efforts to provide all the Tenant Estoppels
to Purchaser on or before the fifth (5th) Business Day prior to Closing, then Seller shall have the right in its sole discretion
(but not the obligation) to satisfy the condition set forth in this Section 4.3(b) by providing substitute Estoppel
Certificate(s) executed by Seller, and in the exact form as would be required per the foregoing provisions had the tenant signed
such estoppel certificate (“Substitute Estoppel Certificate”), for any tenants who do not provide a Estoppel
Certificate or whose Estoppel Certificate has been disapproved by Purchaser, which Purchaser shall be entitled to reply upon. Seller
shall be automatically released from liability for any certification in any such Substitute Estoppel Certificate to the extent
such certification is ultimately made to Purchaser by an Estoppel Certificate executed by the applicable tenant, whether prior
to or following the Close of Escrow, provided such tenant estoppel certificate is in a form which would have satisfied the requirements
of this Section 4.3(b) had it been timely delivered to Purchaser.

 

    	-9-

    	 

    

  

(d)          Purchaser
shall not have terminated this Agreement in accordance with Section 10.1 or Section 10.2 below.

 

5.          CONDITIONS
TO SELLER’S OBLIGATION TO CLOSE. The obligation of the Seller to convey the Property to the Purchaser is subject
to the satisfaction of the following conditions precedent on and as of the Closing Date:

 

5.1           Purchase
Price. The Purchaser shall deliver to the Escrow Agent the Purchase Price payable hereunder (less the Deposit which shall
be applied to the Purchase Price), subject to the adjustments set forth in Section 2.3, together with any closing
costs to be paid by the Purchaser under Section 9.2.

 

5.2           Closing
Documents. The Purchaser shall have delivered to the Escrow Agent duly executed and acknowledged counterparts of the documents
described in Section 4.1, where required.

 

5.3           Other
Conditions. All representations and warranties of the Purchaser herein shall be true, correct and complete in all material
respects on and as of the Closing Date and the Purchaser shall not be in default under this Agreement.

 

6.          REPRESENTATIONS
AND WARRANTIES OF SELLER. To induce the Purchaser to enter into this Agreement, the Seller represents and warrants to the
Purchaser as of the date of this Agreement and as of Closing, except as qualified by Schedule 3, as follows:

 

6.1           Status
and Authority of the Seller. The Seller is duly organized, validly existing and in good standing under the laws of its
state of organization or formation, and has all requisite power and authority under its organizational documents to enter into
and perform its obligations under this Agreement and to consummate the transactions contemplated hereby.

 

6.2           Action
of the Seller. With the exception of the Shareholder Approval, the Seller has taken all necessary action to authorize the
execution, delivery and performance of this Agreement, and upon the execution and delivery of any document to be delivered by the
Seller on or prior to the Closing Date, this Agreement and such document shall constitute the valid and binding obligation and
agreement of the Seller, enforceable against the Seller in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws of general application affecting the rights and remedies of
creditors, and except for the Shareholder Approval.

 

    	-10-

    	 

    

  

6.3           No
Violations of Agreements. Neither the execution, delivery or performance of this Agreement by the Seller, nor compliance
with the terms and provisions hereof, will result in any breach of the terms, conditions or provisions of, or conflict with or
constitute a default under, or result in the creation of any lien, charge or encumbrance upon the Property pursuant to the terms
of any indenture, mortgage, deed of trust, note, evidence of indebtedness or any other agreement or instrument by which the Seller
is bound.

 

6.4           Litigation.
Seller has not received written notice that, nor to Seller's actual knowledge is there, any investigation, action, claim or proceeding
is pending, asserted, or threatened, which (i) questions the validity of this Agreement or any action taken or to be taken pursuant
hereto or (ii) involves condemnation or eminent domain proceedings against the Property or any portion thereof.

 

6.5           Existing
Leases. Subject to Section 8.1, other than the Leases listed in the Rent Roll, the Seller has not entered
into any written contract or agreement with respect to the use or occupancy of the Property that will be binding on the Purchaser
after the Closing. The copies of the Leases and all tenant correspondence files heretofore delivered by the Seller to the Purchaser
are true, correct and complete copies thereof. The information set forth in the Rent Roll is true, correct and complete in all
material respects.

 

6.6           Agreements.
Other than as set forth in the Property Documents, the Seller has not entered into any contract or agreement with respect to the
Property which will be binding on the Purchaser after the Closing other than contracts and agreements being assumed by the Purchaser
or which are terminable upon thirty (30) days notice without payment of premium or penalty.

 

6.7           Not
a Foreign Person. The Seller is not a “foreign person” within the meaning of Section 1445 of the United States
Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

 

6.8           Prohibited
Person. For purposes of this Agreement, a “Prohibited Person” means any of the following: (i)
a person or entity that is listed in the Annex to, or is otherwise subject to the provisions of, Executive Order No. 13224
on Terrorist Financing (effective September 24, 2001) (herein called the “Executive Order”); (ii) a person
or entity owned or Controlled by, or acting for or on behalf of any person or entity that is listed in the Annex to, or is otherwise
subject to the provisions of, the Executive Order; (iii) a person or entity that is named as a “specifically designated
national” or “blocked person” on the most current list published by the U.S. Treasury Department’s Office
of Foreign Assets Control (herein called “OFAC”) at its official website, http://www.treas.gov/offices/enforcement/ofac;
(iv) a person or entity that is otherwise the target of any economic sanctions program currently administered by OFAC; or
(v) a person or entity that is affiliated with any person or entity identified in the foregoing clauses (i), (ii),
(iii), or (iv). Seller represents and warrants to Purchaser, knowing that Purchaser is relying on such representation
and warranty, that Seller is not a Prohibited Person.

 

6.9           No
Approval. No authorization, consent, or approval of any governmental authority (including courts) is required for the execution
and delivery by Seller of this Agreement or the performance of its obligations hereunder.

 

    	-11-

    	 

    

 

6.10         Bankruptcy.
Seller has not (a) made a general assignment for the benefit of creditors, (b) filed any voluntary petition in bankruptcy or suffered
the filing of an involuntary petition by Seller's creditors, (c) suffered the appointment of a receiver to take possession of all
or substantially all of Seller's assets, (d) suffered the attachment or other judicial seizure of all, or substantially all, of
Seller's assets, (e) admitted in writing its inability to pay its debts as they come due, or (f) made an offer of settlement, extension
or composition to its creditors generally.

 

6.11         No
Notices. Seller has not received any written notice from any governmental agency requiring the correction of any condition
with respect to the Property, or any part thereof, by reason of a violation of any applicable federal, state, county or municipal
law, code, rule or regulation (including those respecting the Americans With Disabilities Act or any law of regulation respecting
the presence of hazardous materials or toxic waste on the Property), which has not been cured or waived.

 

6.12         Hazardous
Materials. To the actual knowledge of Seller, except as disclosed in the Property Documents, Seller: (i) is not aware of
the existence of any Hazardous Materials on the Property in violation of Environmental Laws; and (ii) Seller has not received any
notices from any governmental environmental regulatory agencies of any violation of Environmental Laws and/or the existence of
Hazardous Materials on the Property.

 

6.13         Cause
to be Untrue. Seller will not take or cause to be taken any intentional action, which would cause any of the representations
or warranties contained in this Agreement to be untrue as of the Close of Escrow.

 

The representations and
warranties made in this Agreement by the Seller shall be continuing and shall be deemed remade by the Seller as of the Closing
Date, with the same force and effect as if made on, and as of, such date. All representations and warranties made in this Agreement
by the Seller shall survive the Closing for a period of six (6) months, and upon expiration shall be of no further force or effect
except to the extent that with respect to any particular alleged breach, the Purchaser files a legal action in a court with appropriate
jurisdiction for breach of the representations and warranties within said 6-month period. References in this Article 6 to the “actual
knowledge” of Seller shall refer only to the actual knowledge of Jon Carley, who Seller hereby represents to be, and
who at Closing shall be, the person most knowledgeable and qualified to make the foregoing representations and warranties on behalf
of Seller (which knowledge shall not include any imputed or constructive knowledge), and shall not be construed to refer to the
knowledge of any other officer, agent or employee of Seller or any affiliate thereof or to impose upon such designated individuals
any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains or impose any personal liability
on such individual. No claim for a breach of any representation or warranty of Seller shall be actionable or payable (a) if the
breach in question results from or is based on a condition, state of facts or other matter which was disclosed by Seller to Purchaser
in writing prior to Closing; and (b) unless the valid claim for any single claimed breach is more than Fifty Thousand and No/100
Dollars ($50,000.00). In no event shall the total liability of Seller to Purchaser for all breaches of all representations and
warranties of Seller in this Agreement exceed Five Hundred Thousand Dollars ($500,000.00). If prior to Closing, Seller’s
representations, as made as of the Effective Date, are determined to be untrue in any material respect as of the Effective Date
or if Seller’s representations, as remade on the Closing Date, shall result in Seller’s Representations made as of
the Effective Date being untrue in any material respect as of the Closing Date, then Purchaser may, at Purchaser’s option,
as its sole and exclusive remedy, terminate this Agreement by notice in writing to Seller, in which event Escrow Agent shall promptly
refund the entire Deposit to Purchaser.

 

    	-12-

    	 

    

  

6.14         AS-IS.
Except as expressly provided in this Agreement or in any documents to be delivered to the Purchaser at the Closing, the Seller
has not made, and the Purchaser has not relied on, any information, promise, representation or warranty, express or implied, regarding
the Property, whether made by the Seller, on the Seller’s behalf or otherwise, including, without limitation, the physical
condition of the Property, the financial condition of the tenants under the Leases, title to or the boundaries of the Property,
pest control matters, soil conditions, the presence, existence or absence of hazardous wastes, toxic substances or other environmental
matters, compliance with building, health, safety, land use and zoning laws, regulations and orders, structural and other engineering
characteristics, traffic patterns, market data, economic conditions or projections, HABITABILITY, MERCHANT-ABILITY, FITNESS FOR
A PARTICULAR PURPOSE, TAX CONSEQUENCES, LATENT OR PATENT PHYSICAL defects or conditions, UTILITIES, OPERATING HISTORY OR PROJECTIONS,
VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH GOVERNMENTAL LAWS. furthermore, EXCEPT AS EXPRESSLY PROVIDED
IN THIS AGREEMENT or in any documents to be delivered to the Purchaser at the Closing, PURCHASER HAS NOT RELIED AND WILL NOT RELY
ON, AND SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS OR INFORMATION
PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT LIMITATION, PROPERTY INFORMATION PACKAGES DISTRIBUTED
WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGER OF THE PROPERTY, REAL ESTATE BROKER OR AGENT REPRESENTING
OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING and any other information
pertaining to the Property or the market and physical environments in which they are located. The Purchaser acknowledges that,
EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT or in any documents to be delivered to the Purchaser at the Closing, (i) the Purchaser
has entered into this Agreement with the intention of relying upon its own investigation or that of ITS CONSULTANTS with respect
to the physical, environmental, economic and legal condition of the Property and (ii) the Purchaser is not relying upon the PROPERTY
DOCUMENTS OR any statements, representations or warranties of any kind, other than those specifically set forth in this Agreement
or in any document to be delivered to the Purchaser at the Closing, made. The Purchaser has inspected the Property and is fully
familiar with the physical condition thereof and, subject to the representations and warranties made in this Agreement, shall purchase
the Property in its “as is”, “where is” and “with all faults” condition on the Closing Date.
Notwithstanding anything to the contrary contained herein, in the event that PURCHASER has actual knowledge of the default of SELLER
(a “Known Default”), but nonetheless elects to consummate the transactions contemplated hereby and proceeds
to Closing, then the rights and remedies of PURCHASER shall be waived with respect to such Known Default upon the Closing and SELLER
shall have no liability with respect thereto. EXCEPT IN THE EVENT OF SELLER'S FRAUD, AND EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT
or in any documents to be delivered to the Purchaser at the Closing, FROM AND AFTER THE CLOSING, PURCHASER SHALL ASSUME THE RISK
THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY
NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE IRREVOCABLY AND
UNCONDITIONALLY WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S MEMBERS OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES
AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION EXCEPT FOR FRAUD AND SELLER'S OBLIGATIONS UNDER THIS
AGREEMENT (INCLUDING CAUSES OF ACTION IN TORT OTHER THAN FRAUD), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’
FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST
SELLER (AND SELLER’S MEMBERS, OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING
OUT OF THE PROPERTY ITS OPERATION ANY WAY IN CONNECTION WITH THE FOREGOING, PURCHASER EXPRESSLY WAIVES THE BENEFITS OF ANY PROVISION
OR PRINCIPLE OF FEDERAL STATE OR LOCAL LAW OR REGULATION THAT MAY LIMIT THE SCOPE OR EFFECT OF THE FOREGOING WAIVER AND RELEASE
INCLUDING, WITHOUT LIMITATION, THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES: “A GENERAL RELEASE DOES
NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR” OR EQUIVALENT LAW OF ANY
JURISDICTION, TO THE EXTENT APPLICABLE.

 

    	-13-

    	 

    

  

This release by
Purchaser shall constitute a complete defense to any claim, cause of action, defense, contract, liability, indebtedness or obligation
released pursuant to this release. Nothing in this release shall be construed as (or shall be admissible in any legal action or
proceeding as) an admission by Seller or any other released party that any defense, indebtedness, obligation, liability, claim
or cause of action exists which is within the scope of those hereby released.

 

          /s/
JKM          

Purchaser’s Initials

 

7.           REPRESENTATIONS
AND WARRANTIES OF PURCHASER. To induce the Seller to enter into this Agreement, the Purchaser represents and warrants to
the Seller as follows:

 

7.1           Status
and Authority of the Purchaser. The Purchaser is duly organized, validly existing and in good standing under the laws of
its state of organization or formation, and has all requisite power and authority under its charter documents to enter into and
perform its obligations under this Agreement and to consummate the transactions contemplated hereby.

 

7.2           Action
of the Purchaser. The Purchaser has taken all necessary action to authorize the execution, delivery and performance of
this Agreement, and upon the execution and delivery of any document to be delivered by the Purchaser on or prior to the Closing
Date, this Agreement and such document shall constitute the valid and binding obligation and agreement of the Purchaser, enforceable
against the Purchaser in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws of general application affecting the rights and remedies of creditors.

 

7.3           No
Violations of Agreements. Neither the execution, delivery or performance of this Agreement by the Purchaser, nor compliance
with the terms and provisions hereof, will result in any breach of the terms, conditions or provisions of, or conflict with or
constitute a default under, or result in the creation of any lien, charge or encumbrance upon any property or assets of the Purchaser
pursuant to the terms of any indenture, mortgage, deed of trust, note, evidence of indebtedness or any other agreement or instrument
by which the Purchaser is bound.

 

7.4           Litigation.
The Purchaser has received no written notice that any investigation, action or proceeding is pending or threatened which questions
the validity of this Agreement or any action taken or to be taken pursuant hereto.

 

7.5           Prohibited
Person. Purchaser represents and warrants to Seller, knowing that Seller is relying on such representation and warranty,
that Purchaser is not a Prohibited Person.

 

7.6           No
Approvals. No authorization, consent, or approval of any governmental authority (including courts) is required for the
execution and delivery by Purchaser of this Agreement or the performance of its obligations hereunder.

 

    	-14-

    	 

    

  

7.7           Bankruptcy.
Purchaser has not (a) made a general assignment for the benefit of creditors, (b) filed any voluntary petition in bankruptcy or
suffered the filing of an involuntary petition by Purchaser's creditors, (c) suffered the appointment of a receiver to take possession
of all or substantially all of Purchaser's assets, (d) suffered the attachment or other judicial seizure of all, or substantially
all, of Purchaser's assets, (e) admitted in writing its inability to pay its debts as they come due, or (f) made an offer of settlement,
extension or composition to its creditors generally.

 

The representations and
warranties made in this Agreement by the Purchaser shall be continuing and shall be deemed remade by the Purchaser as of the Closing
Date with the same force and effect as if made on, and as of, such date. All representations and warranties made in this Agreement
by the Purchaser shall survive the Closing for a period of six (6) months, and upon expiration shall be of no further force or
effect except to the extent that with respect to any particular alleged breach, the Seller files a legal action in a court with
appropriate jurisdiction for breach of Purchaser’s representations and warranties prior to the expiration of said period.

 

8.          COVENANTS
OF THE SELLER. The Seller hereby covenants with the Purchaser between the date of this Agreement and the Closing Date or
earlier termination of the Agreement as follows:

 

8.1           Approval
of Leasing. Following Opening of Escrow, Seller will not extend, amend or terminate any existing Lease, or enter into any
new Lease without providing Purchaser the following: (a) all material supporting documentation, including, without limitation,
broker’s commissions, tenant improvement allowances, cancellation fees and any tenant financial information to the extent
in Seller’s possession; and (b) as to any such extension, amendment or termination of a Lease, or new Lease which is
to be executed after the Opening of Escrow, or which is to become effective after the Opening of Escrow but which was not disclosed
to Purchaser prior to the Opening of Escrow, Seller must receive Purchaser’s prior written approval which may be withheld
in Purchaser’s reasonable discretion. Purchaser agrees to give Seller written notice of approval or disapproval of a proposed
amendment or termination of a Lease, or new Lease within five (5) days after Purchaser’s receipt of all of the items described
above. If Purchaser does not respond to Seller’s request within such five (5) day time period, then Purchaser will be deemed
to have disapproved such amendment, termination or new Lease.

 

8.2           Operation
of Property. To continue to operate the Property substantially consistent with past practices.

 

8.3           Compliance
with Laws. To comply in all material respects with (i) all laws, regulations and other requirements from time to time applicable
of every governmental body having jurisdiction of the Property, or the use or occupancy thereof, and (ii) all material terms, covenants
and conditions of all agreements affecting the Property.

 

8.4           Compliance
with Agreements. To comply with each and every material term, covenant and condition contained in the Leases and any other
material document or agreement affecting the Property.

 

    	-15-

    	 

    

  

8.5           Notice
of Material Changes or Untrue Representations. Upon learning of any material adverse change affecting the Property or any
event or circumstance which makes any representation or warranty of the Seller to the Purchaser under this Agreement untrue or
misleading, promptly to notify the Purchaser thereof in writing.

 

8.6           Insurance.
To maintain, or cause to be maintained, all existing property insurance relating to the Property.

 

8.7           Cooperation.
The Purchaser and the Seller shall reasonably cooperate in complying with the requirements under the Leases in connection with
the transfer and assignment of the Property and the Leases to the Purchaser.

 

9.           APPORTIONMENTS.

 

9.1          Real
Property Apportionments.

 

(a)          The
following items shall be apportioned at the Closing as of the close of business on the day immediately preceding the Closing Date:

 

(i)          to
the extent same have been paid to Seller as of the Closing Date, monthly Rents that are not delinquent, operating costs, taxes
and other fixed charges payable under the Leases;

 

(ii)         to
the extent same have been paid to Seller as of the Closing Date, percentage rents and other unfixed charges payable under the Leases;

 

(iii)        fuel,
electric, water and other utility costs;

 

(iv)        municipal
assessments and governmental license and permit fees;

 

(v)         non-delinquent
real estate taxes and assessments other than special assessments, based on the rates and assessed valuation applicable in the fiscal
year for which assessed;

 

(vi)        water
rates and charges;

 

(vii)       sewer
and vault taxes and rents; and

 

(viii)      all
other items of income and expense normally apportioned in sales of property in similar situations in the jurisdiction where the
Property is located.

 

If any of the foregoing
cannot be apportioned at the Closing because of the unavailability of the amounts which are to be apportioned, such items shall
be apportioned on the basis of a good faith estimate by the parties and reconciled as soon as practicable after the Closing Date
but, in any event, no later than twelve (12) months after the Closing Date.

 

    	-16-

    	 

    

  

(b)          If
there are water, gas or electric meters located at the Property, the Seller shall obtain readings thereof to a date not more than
thirty (30) days prior to the Closing Date and the unfixed water rates and charges, sewer taxes and rents and gas and electricity
charges, if any, based thereon for the intervening time shall be apportioned on the basis of such last readings. If such readings
are not obtainable by the Closing Date, then, at the Closing, any water rates and charges, sewer taxes and rents and gas and electricity
charges which are based on such readings shall be prorated based upon the per diem charges obtained by using the most recent period
for which such readings shall then be available. Upon the taking of subsequent actual readings, the apportionment of such charges
shall be recalculated and the Seller or the Purchaser, as the case may be, promptly shall make a payment to the other based upon
such recalculations. The parties agree to make such final recalculations within sixty (60) days after the Closing Date. At Closing,
Purchaser shall credit to the account of Seller all refundable cash or other deposits posted with utility companies serving the
Property, or, at Seller’s option, Seller shall be entitled to receive and retain such refundable cash and deposits.

 

(c)          If
any refunds of real property taxes or assessments, water rates and charges or sewer taxes and rents shall be made after the Closing,
the same shall be held in trust by the Seller or the Purchaser, as the case may be, and shall first be applied to the unreimbursed
costs incurred in obtaining the same, then to any required refunds to tenants under the Leases, and the balance, if any, shall
be paid to the Seller (for the period prior to the Closing Date) and to the Purchaser (for the period commencing with the Closing
Date).

 

(d)          If,
on the Closing Date, the Property shall be or shall have been affected by any special or general assessment or assessments or real
property taxes payable in a lump sum or which are or may become payable in installments of which the first installment is then
a charge or lien and has become payable, the Seller shall pay or cause to be paid at the Closing the unpaid installments of such
assessments due and as of the Closing Date.

 

(e)          No
insurance policies of the Seller are to be transferred to the Purchaser, and no apportionment of the premiums therefor shall be
made.

 

(f)          At
the Closing, the Seller shall transfer to, or cause to be credited to, the Purchaser the amount of all security deposits held pursuant
to the terms of the Leases.

 

(g)          Brokerage
commissions, tenant improvement expenses and other amounts payable by the Seller as landlord under Leases first entered into by
the Seller after the Opening of Escrow and approved by Purchaser pursuant to the approval procedures set forth in Section
8.1, or otherwise, or due in connection with the renewal or extension of any existing Lease taking place after the Opening
of Escrow, shall be the sole responsibility of the Purchaser. The Purchaser shall receive a credit at Closing for all unfunded,
brokerage commissions, tenant improvement allowances and other amounts payable by the Seller as landlord under Leases (only to
the extent) entered into by the Seller prior to the date of this Agreement and solely attributable to periods prior to the Close
of Escrow.

 

    	-17-

    	 

    

 

(h)          If
a net amount is owed by the Seller to the Purchaser pursuant to this Section 9.1, such amount shall be credited against
the Purchase Price. If a net amount is owed by the Purchaser to the Seller pursuant to this Section 9.1, such amount
shall be added to the Purchase Price paid to the Seller.

 

(i)          If,
on the Closing Date, there are past due rents with respect to any Lease then such delinquent rents shall not be prorated at Closing.
Any delinquent rents received by the Purchaser from a tenant after the Closing shall be applied between the parties, as follows:
first, to the out of pocket expenses incurred by Purchaser in collecting such rents, and second, to rents due or to become due
during the calendar month in which the Closing occurs, and third, to all other rents due or past due in inverse order to the order
in which they became due (i.e., first to arrearages most recently occurring, then to older arrearages). Seller shall promptly remit
to Purchaser all sums received by Seller from tenants after the Closing other than for rents for which Purchaser received credit
hereunder. Any delinquent rents not paid to Purchaser shall bear interest at the maximum rate by law until paid. In no event shall
the Seller have any right to take any action to collect any past due rents or other amounts following the Closing; provided, however,
the Purchaser shall use commercially reasonable efforts to collect such past due rents and other amounts, except that the Purchaser
shall have no obligation to institute any legal action or proceeding or otherwise enforce any of its rights and remedies under
any Lease in connection with such commercially reasonable efforts.

 

The provisions of this
Section 9.1 shall survive the Closing.

 

9.2          Closing
Costs.

 

(a)          The
Purchaser shall pay (i) the costs its own diligence in connection with the transactions contemplated hereby; (ii) all premiums,
charges and fees of the Title Company in excess of the premium for a standard owners CLTA title policy in the amount of the Purchase
Price including for the Purchaser’s account the cost of extended coverage and any affirmative endorsements, and (iii) fifty
percent (50%) of the Escrow Fee.

 

(b)          The
Seller shall pay (i) the title insurance premium for a standard CLTA policy of title insurance in the amount of the Purchase Price,
(ii) fifty percent (50%) of the Escrow Fee, (iii) all transfer taxes, transfer fees, documentary stamp taxes, and other similar
fees, taxes or charges; and (iv) all recording fees.

 

(c)          Each
party shall pay the fees and expenses of its attorneys and other consultants, except as provided in Section 12.9
of this Agreement.

 

(d)          Any
other costs shall be allocated in accordance with customary practice in the jurisdiction in which the relevant Property is located.

 

    	-18-

    	 

    

 

10.         DAMAGE
TO OR CONDEMNATION OF PROPERTY.

 

10.1         Casualty.
If, prior to the Closing, any of the individual buildings making up any Property is materially destroyed or damaged by fire or
other casualty (i.e., five percent (5%) or more of any Property), or in the event that the physical condition of any Property otherwise
suffers a material adverse change resulting in a diminution of value of five percent (5%) or more of such Property, the Seller
shall promptly notify the Purchaser of such fact. In such event, the Purchaser shall have the right to terminate this Agreement
by giving written notice to the Seller not later than ten (10) days after the giving the Seller’s notice (and, if necessary,
the Closing Date shall be extended until one day after the expiration of such ten (10) day period). If the Purchaser elects to
terminate this Agreement as aforesaid, this Agreement shall terminate and be of no further force and effect, the Deposit shall
be promptly returned to Purchaser, and no party shall have any liability to the other hereunder. If less than a material part of
any of the individual buildings making up the Property shall be affected by fire or other casualty or if the Purchaser shall not
elect to terminate this Agreement as aforesaid, there shall be no abatement of the Purchase Price and the Seller shall assign to
the Purchaser at the Closing the rights of the Seller to the proceeds, if any, under the Seller’s insurance policies covering
the Property with respect to such damage or destruction and there shall be credited against the Purchase Price the amount of any
deductible, any proceeds previously received by Seller on account thereof and any deficiency in proceeds.

 

10.2         Condemnation.
If, prior to the Closing, a material part of any of the individual land making up any Property (i.e., a portion of and/or interest
in any Property comprising five percent (5%) or more of the value of any Property), is taken by eminent domain (or is the subject
of a pending taking which has not yet been consummated), the Seller shall notify the Purchaser of such fact promptly after obtaining
knowledge thereof and the Purchaser shall have the right to terminate this Agreement by giving written notice to the Seller not
later than ten (10) days after the giving of the Seller’s notice (and, if necessary, the Closing Date shall be extended until
one day after the expiration of such ten (10) day period). If the Purchaser elects to terminate this Agreement as aforesaid, this
Agreement shall terminate and be of no further force and effect, the Deposit shall be promptly returned to Purchaser, and no party
shall have any liability to the other hereunder. If less than a material part of any of the individual buildings making up the
Property shall be affected or if the Purchaser shall not elect to terminate this Agreement as aforesaid, the sale of the Property
shall be consummated as herein provided without any adjustment to the Purchase Price (except to the extent of any condemnation
award received by the Seller prior to the Closing) and the Seller shall assign to the Purchaser at the Closing all of the Seller’s
right, title and interest in and to all awards, if any, for the taking, and the Purchaser shall be entitled to receive and keep
all awards for the taking of the Property or portion thereof.

 

10.3         Survival.
The parties’ obligations, if any, under this Section 10 shall survive the Closing.

 

11.         DEFAULT.

 

11.1         Default
by the Seller. If the transaction herein contemplated fails to close solely as a result of a default by Seller hereunder,
the Purchaser may, as its sole remedy, either (a) terminate this Agreement and receive a refund of its Deposit, plus Purchaser’s
actual documented out-of-pocket third party expenses incurred in conducting its due diligence with respect to the transaction contemplated
by this Agreement, subject to a cap of Twenty-Five Thousand Dollars ($25,000.00), or (b) pursue an action for specific performance
provided that Purchaser files such action in a court with appropriate jurisdiction within thirty (30) days of Seller’s default.

 

    	-19-

    	 

    

  

11.2         Default
by the Purchaser. IF THE TRANSACTION HEREIN CONTEMPLATED FAILS TO CLOSE AS A RESULT OF THE DEFAULT OF THE PURCHASER
HEREUNDER, THEN SELLER’S SOLE AND EXCLUSIVE RIGHT AND REMEDY FOR SUCH BREACH SHALL BE TO TERMINATE THIS AGREEMENT AND CANCEL
THE ESCROW BY WRITTEN NOTICE TO PURCHASER AND ESCROW AGENT IN WHICH EVENT ESCROW AGENT SHALL PAY THE DEPOSIT AND ALL ACCRUED INTEREST
THEREON TO SELLER. THE DEPOSIT SHALL CONSTITUTE LIQUIDATED DAMAGES. THE PARTIES ACKNOWLEDGE AND AGREE THAT IT WOULD BE IMPRACTICABLE
OR EXTREMELY DIFFICULT TO FIX THE ACTUAL DAMAGES THAT SELLER WOULD INCUR AS A RESULT OF THE BREACH BY PURCHASER OF ITS OBLIGATION
TO PURCHASE THE PROPERTY. THE PARTIES AGREE THAT THE DEPOSIT IS A REASONABLE ESTIMATE OF SELLER’S DAMAGES, AND SHALL CONSTITUTE
LIQUIDATED DAMAGES IN ACCORDANCE WITH ALL LAWS APPLICABLE TO THIS TRANSACTION INCLUDING WITHOUT LIMITATION ALL LAWS OF THE JURISDICTION
IN WHICH THE PROPERTY IS LOCATED. THE PARTIES ACKNOWLEDGE THAT THE PAYMENT OF SUCH LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE
OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES
TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. SELLER WAIVES ALL OTHER REMEDIES FOR PURCHASER’S
BREACH OF ITS OBLIGATION TO PURCHASE THE PROPERTY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT, PROVIDED HOWEVER NOTHING HEREIN
SHALL LIMIT SELLER’S RIGHT TO RECOVERY FOR (i) PURCHASER’S INDEMNITY OBLIGATIONS; (ii) ANY RIGHT TO ATTORNEY’S
FEES UNDER THIS AGREEMENT; (iii) DAMAGES RESULTING FROM PURCHASER MAKING A BAD FAITH FILING OF A LIS PENDENS AGAINST THE PROPERTY;
(iv) ANY BREACH OF THE CONFIDENTIALITY PROVISIONS; OR (v) PURCHASER’S OBLIGATION TO PROVIDE COPIES OF PURCHASER’S DUE
DILIGENCE DOCUMENTS TO SELLER.

 

	/s/ JMB	 	/s/ KE
	Purchaser’s Initials	 	Seller’s Initials

  

12.         Miscellaneous.

 

12.1         Brokers.
Each of the parties hereto represents to the other parties that it dealt with no broker, finder or like agent in connection with
this Agreement or the transactions contemplated hereby other than Darla Longo, CBRE, Orange, California, which Seller shall compensate
under a separate written agreement if and only if the Closing occurs. Each party shall indemnify and hold harmless the other party
and its respective legal representatives, heirs, successors and assigns from and against any loss, liability or expense, including
reasonable attorneys’ fees, charges and disbursements arising out of any claim or claims for commissions or other compensation
for bringing about this Agreement or the transactions contemplated hereby made by any other broker, finder or like agent, if such
claim or claims are based in whole or in part on dealings with the indemnifying party. The provisions of this Section 12.1
shall survive the Closing.

 

    	-20-

    	 

    

  

12.2        Publicity.
The parties agree that, during the period prior to Closing, and except as otherwise required by law and except for the exercise
of any remedy hereunder, no party shall, with respect to this Agreement and the transactions contemplated hereby, contact or conduct
negotiations with public officials, make any public pronouncements, issue press releases or otherwise furnish information regarding
this Agreement or the transactions contemplated to any third party (other than such party's consultants, attorneys, experts, and
prospective lenders and investors) without the consent of the other party, which consent shall not be unreasonably withheld or
delayed.

 

12.3        Notices.

 

(a)          Any
and all notices, demands, consents, approvals, offers, elections and other communications required or permitted under this Agreement
shall be deemed adequately given if in writing and the same shall be delivered either in hand, by telecopier with confirmed receipt,
or by mail or Federal Express or similar expedited commercial carrier, addressed to the recipient of the notice, postpaid and registered
or certified with return receipt requested (if by mail), or with all freight charges prepaid (if by Federal Express or similar
carrier).

 

(b)          All
notices required or permitted to be sent hereunder shall be deemed to have been given for all purposes of this Agreement upon the
date of acknowledged receipt, in the case of a notice by telecopier, and, in all other cases, upon the date of receipt or refusal,
except that whenever under this Agreement a notice is either received on a day which is not a Business Day or is required to be
delivered on or before a specific day which is not a Business Day, the day of receipt or required delivery shall automatically
be extended to the next Business Day.

 

(c)          All
such notices shall be addressed,

  

	If to the Seller, to:	COP-Western Avenue, LLC
	 	1920 Main St, Suite 400
	 	Irvine, CA  92614
	 	Attn:  Mr. Jon Carley
	 	Telecopier No:  (949) 852-2734
	 	 
	with a copy to:	Rutan and Tucker, LLP
	 	611 Anton Boulevard, Suite 1400
	 	Costa Mesa, CA 92626
	 	Attn:  Joe Maga, Esq.
	 	Telecopier No:  (714) 546-9035
	 	 
	If to Purchaser:	MMB Management, LLC
	 	17610 Pacheco Pass Highway
	 	Hollister, CA 95023
	 	Attn:  Mr. Todd W. Mathis
	 	Manager
	 	Telecopier No:  (408) 847-4509

 

    	-21-

    	 

    

  

	 	MMB Management, LLC
	 	21985 Elsberry Way
	 	Lake Forest, CA 92630
	 	Attn:  Mr. Scott T. Barnes
	 	Manager
	 	Telecopier No: (949) 305-1403
	 	 
	 	MMB Management, LLC
	 	c/o National Association of Home Builders
	 	1201 15th Street, NW
	 	Washington, D.C.  20005-2800
	 	Attn:  Mr. Jared K. Mathis
	 	Manager
	 	Telecopier No: (202) 266-8587
	 	 
	with a copy to:	William B. Brinckloe, Jr., Esq.
	 	9841 Irvine Center Drive, Suite 220
	 	Irvine, CA 92618-4316
	 	Telecopier No: (949) 475-6999
	 	 
	If to Escrow Agent, to:	First American Title Company
	 	National Commercial Services
	 	5 First American Way
	 	Santa Ana, CA 92707
	 	Attn:  Ms. Patty Beverly
	 	Telecopier No:  (714) 242-7479

  

(d)          By
notice given as herein provided, the parties hereto and their respective successors and assigns shall have the right from time
to time and at any time during the term of this Agreement to change their respective addresses effective upon receipt by the other
parties of such notice and each shall have the right to specify as its address any other address within the United States of America.

 

12.4         Waivers.
Subject to the terms of the last paragraph of Section 6, any waiver of any term or condition of this Agreement, or
of the breach of any covenant, representation or warranty contained herein, in any one instance, shall not operate as or be deemed
to be or construed as a further or continuing waiver of any other breach of such term, condition, covenant, representation or warranty
or any other term, condition, covenant, representation or warranty, nor shall any failure at any time or times to enforce or require
performance of any provision hereof operate as a waiver of or affect in any manner such party’s right to at a later time
enforce or require performance of such provision or any other provision hereof. This Agreement may not be amended, nor shall any
waiver, change, modification, consent or discharge be effected, except by an instrument in writing executed by or on behalf of
the party against whom enforcement of any amendment, waiver, change, modification, consent or discharge is sought.

 

    	-22-

    	 

    

 

 

12.5       Assignment;
Successors and Assigns. Subject to Section 12.14, this Agreement and all rights and obligations hereunder
shall not be assignable, directly or indirectly, by any party without the written consent of the other, except that the Purchaser
may assign this Agreement without Seller's consent to any entity or entities owned in part and controlled or managed by Purchaser,
provided that Purchaser shall give Seller written notice of such assignment at least ten (10) days before the Closing Date; provided,
however, that, in the event this Agreement shall be assigned by Purchaser to any one or more entities owned in part and controlled
or managed by the Purchaser, the Purchaser named herein shall remain liable for the obligations of the “Purchaser”
hereunder. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto
and their respective legal representatives, successors and permitted assigns. This Agreement is not intended and shall not be construed
to create any rights in or to be enforceable in any part by any other persons.

 

12.6       Severability.
If any provision of this Agreement shall be held or deemed to be, or shall in fact be, invalid, inoperative or unenforceable as
applied to any particular case in any jurisdiction or jurisdictions, or in all jurisdictions or in all cases, because of the conflict
of any provision with any constitution or statute or rule of public policy or for any other reason, such circumstance shall not
have the effect of rendering the provision or provisions in question invalid, inoperative or unenforceable in any other jurisdiction
or in any other case or circumstance or of rendering any other provision or provisions herein contained invalid, inoperative or
unenforceable to the extent that such other provisions are not themselves actually in conflict with such constitution, statute
or rule of public policy, but this Agreement shall be reformed and construed in any such jurisdiction or case as if such invalid,
inoperative or unenforceable provision had never been contained herein and such provision reformed so that it would be valid, operative
and enforceable to the maximum extent permitted in such jurisdiction or in such case.

 

12.7       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. This Agreement constitutes the entire agreement of the parties hereto with respect
to the subject matter hereof and shall supersede and take the place of any other instruments purporting to be an agreement of the
parties hereto relating to the subject matter hereof. The parties may also exchange signatures by facsimile or electronic mail.

 

12.8       Performance
on Business Days. In the event the date on which performance or payment of any obligation of a party required hereunder
is other than a Business Day, the time for payment or performance shall automatically be extended to the first Business Day following
such date.

 

12.9       Attorneys’
Fees. If any lawsuit or arbitration or other legal proceeding arises in connection with the interpretation or enforcement
of this Agreement, the prevailing party therein shall be entitled to receive from the other party the prevailing party’s
costs and expenses, including reasonable attorneys’ fees and expert witness fees incurred in connection therewith, in preparation
therefor and on appeal therefrom, which amounts shall be included in any judgment therein.

 

    	-23-

    	 

    

 

12.10       Section
and Other Headings. The headings contained in this Agreement are for reference purposes only and shall not in any way affect
the meaning or interpretation of this Agreement.

 

12.11       Time
of Essence. Time shall be of the essence with respect to the performance of each and every covenant and obligation, and
the giving of all notices, under this Agreement.

 

12.12       Governing
Law. This Agreement shall be interpreted, construed, applied and enforced in accordance with the laws of California.

 

12.13       Arbitration.
Any party hereto may elect to submit any dispute hereunder that has an amount in controversy in excess of $100,000 to arbitration
hereunder. Any such arbitration shall be conducted in Orange County, California in accordance with the Commercial Arbitration Rules
of the American Arbitration Association then pertaining and the decision of the arbitrators with respect to such dispute shall
be binding, final and conclusive on the parties. 

 

WHENEVER AN ARBITRATION
IS REQUIRED, THE ARBITRATOR OR REFEREE SHALL BE SELECTED IN ACCORDANCE WITH THIS SECTION. WITHIN FIVE (5) DAYS AFTER WRITTEN NOTICE
OF ANY DISPUTE IS GIVEN TO THE OTHER PARTY, THE PARTIES’ SHALL ATTEMPT TO AGREE ON A MUTUALLY ACCEPTABLE ARBITRATOR. IN THE
EVENT THE PARTIES ARE UNABLE TO SO AGREE WITHIN SUCH FIVE (5) DAY PERIOD, THE ARBITRATOR OR REFEREE SHALL BE SELECTED IN ACCORDANCE
WITH THE COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION. THE DISPUTED MATTER SHALL BE HEARD BY THE ARBITRATOR
OR REFEREE SO APPOINTED NO LATER THAN TWENTY (20) DAYS AFTER SUCH APPOINTMENT. ARBITRATORS SHALL APPLY CALIFORNIA LAW AND BE BOUND
BY PRECEDENT AND STATUTORY RULES AS THOUGH THEY WERE JUDGES SITTING IN A CALIFORNIA COURT. STATEMENTS OF ARBITRATION AWARDS SHALL
BE IN WRITING. THE PARTIES SHALL BE ENTITLED IN ANY ARBITRATION HEREUNDER, TO SUCH RIGHTS OF DISCOVERY AS DETERMINED BY THE ARBITRATOR.

 

The
fees of the arbitrator and the expenses incident to the proceedings shall be borne equally between the Seller and the Purchaser,
unless the arbitrators decide otherwise. The fees of respective counsel engaged by the parties, and the fees of expert witnesses
and other witnesses called for by the parties, shall be paid by the respective party engaging such counsel or calling or engaging
such witnesses.

 

    	-24-

    	 

    

 

The
decision of the arbitrators shall be rendered within thirty (30) days after appointment of the arbitrator. Such decision shall
be in writing and in duplicate, one counterpart thereof to be delivered to the Seller and one to the Purchaser. A judgment of a
court of competent jurisdiction may be entered upon the award of the arbitrators in accordance with the rules and statutes applicable
thereto then obtaining.

 

NOTICE:
BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION
OF DISPUTES” PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU
MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL
RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION.
IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY
OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARILY.

 

WE
HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION
OF DISPUTES” PROVISION TO NEUTRAL ARBITRATION, AND WAIVE ANY APPLICABLE LAW THAT WOULD INVALIDATE THIS SECTION.

 

	/s/ JMB	 	/s/ KE
	Purchaser’s Initials	 	Seller’s Initials

 

12.14       Like-Kind
Exchange. At either party’s request, the non-requesting party will take all actions reasonably requested by the requesting
party in order to effectuate all or any part of the transactions contemplated by this Agreement a like-kind exchange for the benefit
of the requesting party in accordance with Section 1031 of the Internal Revenue Code, including executing an instrument acknowledging
and consenting to any assignment by the requesting party of its rights hereunder to a qualified intermediary or an exchange accommodation
titleholder. In furtherance of the foregoing and notwithstanding anything contained in this Agreement to the contrary, the requesting
party may assign its rights under this Agreement to a “qualified intermediary” or an “exchange accommodation
titleholder” in order to facilitate, at no cost or expense to the other, a forward or reverse like-kind exchange under Section
1031 of the Internal Revenue Code; provided, however, that such assignment will not relieve the requesting party of any of its
obligations hereunder. The non-requesting party will also agree to issue all closing documents, including the deed, to the applicable
qualified intermediary or exchange accommodation titleholder if so directed by the requesting party prior to Closing. Notwithstanding
the foregoing, in no event shall the non-exchanging party incur or be subject to any liability that is not otherwise provided for
in this Agreement; the Closing Date shall not be delayed as the result of such exchange; all additional costs in connection with
such exchange shall be borne by the exchanging party; and the exchanging party shall indemnify the non-exchanging party and hold
the non-exchanging party harmless from and against any and all claims, demands, liabilities, costs, expenses, penalties, damages
and losses, including, without limitation, reasonable attorneys’ fees relating to the non-exchanging party’s participation
in such exchange. This Agreement is not subject to or conditioned upon the ability to consummate an exchange. The indemnification
provision set forth in this Section 12.14 shall survive the Closing.

 

    	-25-

    	 

    

 

12.15       Recording.
Neither this Agreement nor any memorandum thereof may be recorded without the prior written consent of both parties.

 

12.16       Non-liability
of Representatives of Seller. No trustee, officer, shareholder, employee or agent of the Seller shall be held to any personal
liability, jointly or severally, for any obligation of, or claim against, the Seller. Purchaser shall look only to the assets of
the Seller for the payment of any sum or the performance of any obligation hereunder.

 

12.17       Non-liability
of Representatives of Purchaser. No trustee, officer, shareholder, employee or agent of Purchaser shall be held to any
personal liability, jointly or severally, for any obligation of, or claim against, Purchaser. Seller shall look only to the assets
of Purchaser for the payment of any sum or the performance of any obligation hereunder.

 

12.18       Waiver.
The Purchaser hereby acknowledges that it is a sophisticated purchaser of real properties and that it is aware of all disclosures
the Seller is or may be required to provide to the Purchaser in connection with the transactions contemplated hereby pursuant to
any law, rule or regulation (including those of California and those of the states in which the Property is located).

 

12.19       Further
Assurances. In addition to the actions recited herein and contemplated to be performed, executed, and/or delivered by the
Seller and the Purchaser, the Seller and the Purchaser agree to perform, execute and/or deliver or cause to be performed, executed
and/or delivered at the Closing or after the Closing any and all such further acts, instruments, deeds and assurances as may be
reasonably required to establish, confirm or otherwise evidence the Seller’s satisfaction of any disclosure obligations or
to otherwise consummate the transactions contemplated hereby.

 

12.20       [Intentionally
omitted.]

 

12.21       IRS
Real Estate Sales Reporting. Purchaser and Seller hereby appoint Escrow Agent as, and Escrow Agent agrees to act as, “the
person responsible for closing” the transaction which is the subject of this Agreement pursuant to Internal Revenue Code
Section 6045(e). Escrow Agent shall prepare and file all informational returns, including, without limitation, IRS Form 1099-S
and shall otherwise comply with the provisions of Internal Revenue Code Section 6045(e). Escrow Agent agrees to comply with the
provisions of Executive Order 13224 regarding the Specially Designated Nationals Blocked Persons list.

 

12.22       Entire
Agreement. This Agreement and all Exhibits hereto and the instruments referred to herein contain the entire agreement and
understanding between the parties hereto relating to the subject matter hereof.

 

12.23       Interrelation.
This Agreement is in all respects intended by each party hereto to be deemed and construed to have been jointly prepared by the
parties. The parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against
either of them as a result of the actual identity of the draftsman.

 

[SIGNATURES ON FOLLOWING PAGE]

 

    	-26-

    	 

    

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed as a sealed instrument as of the date first above written.

 

	 	SELLER:
	 	 
	 	
        COP-WESTERN AVENUE, LLC,

a California
limited liability company

	 	 
	 	By:	/s/ Kent Eikanas
	 	Name:	 Kent Eikanas
	 	Its:	President

 

	 	PURCHASER:
	 	 
	 	MMB MANAGEMENT, LLC, a
 California limited liability company
	 	 
	 	By:	THE LEWIS FENNO MOULTON TRUST UDT, APRIL 17, 1925
	 	 	Manager

 

	 	 	By:	/s/ Lewis M. Mathis
	 	 	Lewis M. Mathis
	 	 	Trustee
	 	 
	 	 	By:	/s/ Jane M. Barnes
	 	 	Jane M. Barnes
	 	 	Trustee
	 	 
	 	 	By:	/s/ Glenn E. Mathis, Jr.
	 	 	Glenn E. Mathis, Jr.
	 	 	Trustee

 

	 	By:	/s/ Todd W. Mathis
	 	 	Todd W. Mathis
	 	 	Manager
	 	 
	 	By:	/s/ Scott T. Barnes
	 	 	Scott T. Barnes
	 	 	Manager
	 	 
	 	By:	/s/Jared K. Mathis
	 	 	Jared K. Mathis
	 	 	Manager

 

    	-27-

    	 

    

 

Acceptance
by Escrow AGENT

 

By signing below, Escrow Agent acknowledges
that Escrow Agent has received a fully executed counterpart of this Purchase and Sale Agreement and agrees to act as Escrow Agent
thereunder and to be bound by and perform the terms thereof as such terms apply to Escrow Agent.

 

	Dated: December 31, 2012	FIRST AMERICAN TITLE COMPANY, a
	 	California corporation
	 	 
	 	By:	/s/Patty Beverly
	 	 	Patty Beverly
	 	 	Senior Escrow Officer, CEO

 

    	-28-

    	 

    

 

EXHIBIT “A”

 

Land

 

The land is situated is in the City of
Los Angeles, County of Los Angeles, State of California, and is described as follows:

 

PARCEL A:

 

THOSE PORTIONS OF LOTS 18, 19 AND 20 OF
TRACT NO. 52172-02, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1238 PAGES
17 TO 22, INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AS DESCRIBED AS PARCEL 3 IN EXHIBIT "A"
OF THAT CERTAIN CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT 99-2594, RECORDED DECEMBER 8, 2000 AS INSTRUMENT NO. 00-1917705,
OFFICIAL RECORDS AND BEING MORE PARTICULARLY DESCRIBED AS A WHOLE AS FOLLOWS:

 

COMMENCING AT THE NORTHEAST CORNER OF SAID
LOT 18; THENCE ALONG THE NORTHERLY LINE OF SAID LOT 18, SOUTH 86° 30’ 05" WEST 0.67 FEET TO THE TRUE POINT OF BEGINNING;
THENCE LEAVING SAID NORTHERLY LINE OF LOT 18, "SOUTH" 798.54 FEET TO THE SOUTHERLY LINE OF SAID LOT 20; THENCE ALONG
THE SOUTHERLY LINE OF SAID LOT 20, SOUTH 89° 59’ 31" WEST 346.30 FEET TO THE SOUTHWEST CORNER OF SAID LOT 20; THENCE
ALONG THE WESTERLY LINE OF SAID LOTS 18, 19, AND 20, NORTH 00° 23’ 15" WEST 690.86 FEET; THENCE NORTH 89° 36’
45" EAST 1.89 FEET TO A POINT OF A NON TANGENT CURVE CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 90.00 FEET, A RADIAL LINE TO
SAID POINT BEARS SOUTH 88° 54’ 26" WEST; THENCE NORTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 87°
35’ 39", AN ARC LENGTH OF 137.59 FEET; THENCE ALONG THE NORTHERLY LINE OF SAID LOT 18, NORTH 86° 30’ 05"
EAST 265.09 FEET TO THE TRUE POINT OF BEGINNING.

 

PARCEL B:

 

EASEMENTS FOR VEHICULAR AND PEDESTRIAN
INGRESS AND EGRESS, DRAINAGE, FIRE HYDRANTS, UNDERGROUND UTILITIES, AND REFUSE ENCLOSURE AS CREATED BY THAT CERTAIN DECLARATION
AND GRANT OF EASEMENTS AND RECIPROCAL EASEMENT AGREEMENT, RECORDED SEPTEMBER 21, 2000 AS INSTRUMENT NO. 00-1482684, OVER PORTIONS
OF CERTAIN PARCELS OF LAND DESCRIBED AS PARCELS 1 AND 2 IN EXHIBIT "A" OF THAT CERTAIN CERTIFICATE OF COMPLIANCE FOR
LOT LINE ADJUSTMENT 99-2594, RECORDED DECEMBER 8, 2000 AS INSTRUMENT NO. 00-1917705, AS MORE PARTICULARLY DESCRIBED IN SAID DECLARATION,
UPON THE TERMS, COVENANTS AND PROVISIONS THEREIN CONTAINED, AS AMENDED BY A DOCUMENT ENTITLED "FIRST AMENDMENT TO DECLARATION
GRANT OF EASEMENTS AND RECIPROCAL EASEMENT AGREEMENT", RECORDED DECEMBER 19, 2000 AS INSTRUMENT NO. 00-1975273.

 

PARCEL C:

 

THOSE CERTAIN EASEMENT RIGHTS AS CREATED
BY THAT CERTAIN DOCUMENT ENTITLED "DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR HARBOR GATEWAY CENTER, INDUSTRIAL
TRACT PARCEL", RECORDED AUGUST 6, 1999 AS INSTRUMENT NO. 99- 1483487, AS AMENDED BY DOCUMENTS RECORDED DECEMBER 10, 1999 AS
INSTRUMENT NOS. 99-2285253, 99-2285254, AND 99-2285255, AFFECTING THE COMMON AREA, AS DEFINED THEREIN. SUBJECT TO THE TERMS, COVENANTS
AND PROVISIONS CONTAINED THEREIN.

 

APN: 7351-021-038

 

EXHIBIT “A”

    	 

    	 

    

 

EXHIBIT “B”

 

General Assignment and Assumption

 

(See attached copy)

 

EXHIBIT “B”

    	 

    	 

    

 

ASSIGNMENT AND ASSUMPTION OF CONTRACTS

 

This ASSIGNMENT AND
ASSUMPTION OF CONTRACTS (this “Assignment”) is made as of January 23, 2013 (“Effective Date”) by and between
COP-WESTERN AVENUE, LLC, a California limited liability company (“Assignor”), and MMB MANAGEMENT, LLC, a California
limited liability company (“Assignee”).

 

RECITALS

 

A.       Assignor and
Assignee are parties to that certain Purchase and Sale Agreement (the “Purchase Agreement”), dated as of December 28,
2012, with respect to that certain real property (the “Property”) more specifically described in “Exhibit
A” attached hereto and made a part hereof.

 

B.       Concurrently
with the execution and delivery of this Assignment, Assignor is conveying the Property to Assignee.

 

C.       Assignor desires
to assign, transfer and convey to Assignee to the extent assignable, and Assignee desires to obtain, all of Assignor’s right,
title, interest, liabilities and obligations in and to the Contracts (as hereinafter defined).

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

As of the Effective
Date Assignor does hereby sell, assign, convey and transfer unto Assignee, to the extent assignable, all of Assignor’s right,
title, interest, liabilities and obligations in and to the service contracts and assignable equipment leases (“Contracts”)
described on “Exhibit B” attached hereto and made a part hereof, provided, however, that Assignor makes no representation
or warranty with respect to the assignability of same, except as may be expressly provided in the Purchase Agreement.

 

By execution of this
Assignment, as of the Effective Date Assignee unconditionally assumes and agrees to perform all of the covenants, agreements, liabilities
and obligations under the Contracts binding on Assignor or the Property arising after the Effective Date. Assignor hereby agrees
to indemnify, hold harmless and defend Assignee from and against any and all third party obligations, liabilities, costs and claims
actions, expenses and fees (including reasonable attorney’s fees) arising as a result of or with respect to any of the Contracts
that are attributable to the period of time prior to the Effective Date. Assignee hereby agrees to indemnify, hold harmless and
defend Assignor from and against any and all third party obligations, liabilities, costs and claims actions, expenses and fees
(including reasonable attorney’s fees) arising as a result of or with respect to any of the Contracts that are attributable
to the period of time from and after the Effective Date.

 

EXHIBIT “B”

    	-1-

    	 

    

 

ASSIGNEE ACKNOWLEDGES
THAT IT HAS INSPECTED THE CONTRACTS AND THAT THIS ASSIGNMENT IS MADE BY ASSIGNOR AND ACCEPTED BY ASSIGNEE WITHOUT REPRESENTATION
OR WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, AND WITHOUT RECOURSE AGAINST ASSIGNOR, EXCEPT AS EXPRESSLY SET FORTH HEREIN
OR IN THE PURCHASE AGREEMENT.

 

EXECUTED to be effective January
23, 2013.

 

	 	ASSIGNOR:
	 	 
	 	COP-WESTERN AVENUE, LLC,
	 	a California limited liability company
	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

 

	 	ASSIGNEE:
	 	 
	 	MMB MANAGEMENT, LLC, a

 California limited liability company
	 	 
	 	By:	THE LEWIS FENNO MOULTON TRUST UDT, APRIL 17, 1925
	 	 	Manager

 

	 	 	By:	 
	 	 	Lewis M. Mathis
	 	 	Trustee
	 	 
	 	 	By:	 
	 	 	Jane M. Barnes
	 	 	Trustee
	 	 
	 	 	By:	 
	 	 	Glenn E. Mathis, Jr.
	 	 	Trustee

 

	 	By:	 
	 	 	Todd W. Mathis
	 	 	Manager
	 	 
	 	By:	 
	 	 	Scott T. Barnes
	 	 	Manager
	 	 
	 	By:	 
	 	 	Jared K. Mathis
	 	 	Manager

 

    	-2-

    	 

    

 

Exhibit A to Assignment and Assumption
of Contracts

 

LEGAL DESCRIPTION

 

The land is situated in the City of Los
Angeles, County of Los Angeles, State of California, and is described as follows:

 

PARCEL A:

 

THOSE PORTIONS OF LOTS 18, 19 AND 20 OF TRACT
NO. 52172-02, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1238 PAGES 17
TO 22, INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AS DESCRIBED AS PARCEL 3 IN EXHIBIT "A"
OF THAT CERTAIN CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT 99-2594, RECORDED DECEMBER 8, 2000 AS INSTRUMENT NO. 00-1917705,
OFFICIAL RECORDS AND BEING MORE PARTICULARLY DESCRIBED AS A WHOLE AS FOLLOWS:

 

COMMENCING AT THE NORTHEAST CORNER OF SAID
LOT 18; THENCE ALONG THE NORTHERLY LINE OF SAID LOT 18, SOUTH 86° 30’ 05" WEST 0.67 FEET TO THE TRUE POINT OF BEGINNING;
THENCE LEAVING SAID NORTHERLY LINE OF LOT 18, "SOUTH" 798.54 FEET TO THE SOUTHERLY LINE OF SAID LOT 20; THENCE ALONG
THE SOUTHERLY LINE OF SAID LOT 20, SOUTH 89° 59’ 31" WEST 346.30 FEET TO THE SOUTHWEST CORNER OF SAID LOT 20; THENCE
ALONG THE WESTERLY LINE OF SAID LOTS 18, 19, AND 20, NORTH 00° 23’ 15" WEST 690.86 FEET; THENCE NORTH 89° 36’
45" EAST 1.89 FEET TO A POINT OF A NON TANGENT CURVE CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 90.00 FEET, A RADIAL LINE TO
SAID POINT BEARS SOUTH 88° 54’ 26" WEST; THENCE NORTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 87°
35’ 39", AN ARC LENGTH OF 137.59 FEET; THENCE ALONG THE NORTHERLY LINE OF SAID LOT 18, NORTH 86° 30’ 05"
EAST 265.09 FEET TO THE TRUE POINT OF BEGINNING.

 

PARCEL B:

 

EASEMENTS FOR VEHICULAR AND PEDESTRIAN INGRESS
AND EGRESS, DRAINAGE, FIRE HYDRANTS, UNDERGROUND UTILITIES, AND REFUSE ENCLOSURE AS CREATED BY THAT CERTAIN DECLARATION AND GRANT
OF EASEMENTS AND RECIPROCAL EASEMENT AGREEMENT, RECORDED SEPTEMBER 21, 2000 AS INSTRUMENT NO. 00-1482684, OVER PORTIONS OF CERTAIN
PARCELS OF LAND DESCRIBED AS PARCELS 1 AND 2 IN EXHIBIT "A" OF THAT CERTAIN CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT
99-2594, RECORDED DECEMBER 8, 2000 AS INSTRUMENT NO. 00-1917705, AS MORE PARTICULARLY DESCRIBED IN SAID DECLARATION, UPON THE TERMS,
COVENANTS AND PROVISIONS THEREIN CONTAINED, AS AMENDED BY A DOCUMENT ENTITLED "FIRST AMENDMENT TO DECLARATION GRANT OF EASEMENTS
AND RECIPROCAL EASEMENT AGREEMENT", RECORDED DECEMBER 19, 2000 AS INSTRUMENT NO. 00-1975273.

 

PARCEL C:

 

THOSE CERTAIN EASEMENT RIGHTS AS CREATED BY
THAT CERTAIN DOCUMENT ENTITLED "DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR HARBOR GATEWAY CENTER, INDUSTRIAL
TRACT PARCEL", RECORDED AUGUST 6, 1999 AS INSTRUMENT NO. 99- 1483487, AS AMENDED BY DOCUMENTS RECORDED DECEMBER 10, 1999 AS
INSTRUMENT NOS. 99-2285253, 99-2285254, AND 99-2285255, AFFECTING THE COMMON AREA, AS DEFINED THEREIN. SUBJECT TO THE TERMS, COVENANTS
AND PROVISIONS CONTAINED THEREIN.

 

APN: 7351-021-038

 

    	-1-

    	 

    

 

Exhibit B to Assignment and Assumption
of Contracts

 

EQUIPMENT LEASES

 

    	 

    	 

    

 

EXHIBIT “C”

 

Assignment and Assumption of Leases

 

[See attached copy.]

 

EXHIBIT “C”

    	 

    	 

    

 

ASSIGNMENT AND ASSUMPTION OF LEASES

 

This ASSIGNMENT AND
ASSUMPTION OF LEASES is hereby entered into as of January 23, 2013 (“Effective Date”), by and between COP-WESTERN
AVENUE, LLC, a California limited liability company (“Assignor”), and MMB MANAGEMENT, LLC, a California limited
liability company (“Assignee”).

 

1.       Assignment.
As of the Effective Date Assignor does hereby sell, assign, transfer and set over unto Assignee, without representation or warranty
of any kind or nature whatsoever, express or implied, all of Assignor’s interest as landlord in and to (i) all leases
of all or any portion of the buildings or other improvements located on the land described on Exhibit “1”
attached hereto and made a part hereof (the “Property”), which leases are more particularly described in Exhibit “2”
attached hereto and made a part hereof, and all guaranties of, or relating to, those leases and/or any portion of any lease, if
any (collectively, the “Leases”), and (ii) all security deposits, advanced rentals and all letters of credit,
paid or deposited by tenants or occupants under the Leases (the “Security Deposits”).

 

2.       Assumption.
Assignee, for itself and its successors and assigns, (i) hereby accepts the foregoing assignment, and (ii) agrees to,
and hereby does, assume and agree to keep, pay, perform, observe and discharge all of the terms, covenants, conditions, agreements,
provisions and obligations contained in Leases to be kept, paid, performed, observed and discharged by the landlord thereunder
from and after the Effective Date, including without limitation, the payment of all broker’s commissions and tenant improvement
allowances, as and to the extent provided in the Purchase and Sale Agreement for the Property between Assignor and Assignee dated
December 28, 2012.

 

3.       Indemnities.
Assignee agrees to, and hereby does, indemnify, defend and hold harmless Assignor from and against all claims, liabilities, damages
and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) which may be asserted against
or imposed on or incurred by Assignor by reason of Assignee’s failure to perform any of its obligations under the Leases
after the Effective Date, and including, without limiting the generality of the foregoing, by reason of Assignee’s disposition
or alleged disposition of any of the Security Deposits. Assignor agrees to, and hereby does, indemnify, defend and hold harmless
Assignee from and against all claims, liabilities, damages and expenses (including, without limitation, reasonable attorneys’
fees and disbursements) which may be asserted against or imposed on or incurred by Assignee by reason of Assignor’s failure
to perform any of its obligations under the Leases prior to the Effective Date.

 

5.       Attorneys’
Fees. In the event of any action between Assignor and Assignee seeking enforcement or interpretation of any of the terms and
conditions to this Assignment, the prevailing party in such action, whether by fixed judgment or settlement, shall be entitled
to recover, in addition to damages, injunctive or other relief, its actual costs and expenses, including, but not limited to, actual
attorneys’ fees, court costs and expert witness fees. Such costs shall include attorneys’ fees, costs and expenses
incurred in (a) post-judgment motions, (b) contempt proceedings, (c) garnishment, levy and debtor and third-party
examination, (d) discovery, and (e) bankruptcy litigation.

 

EXHIBIT “C”

    	-1-

    	 

    

 

6.       Successors.
This Assignment shall inure to the benefit of Assignor and Assignee, and their respective heirs, assigns and successors in interest.

 

7.       Counterparts.
This Assignment may be signed by the parties in different counterparts and the signature pages combined to create a document binding
on all parties.

 

IN WITNESS WHEREOF,
this Assignment of Leases, has been executed by Assignor and Assignee as of the 23rd day of January, 2013.

 

 

	 	ASSIGNOR:
	 	 
	 	COP-WESTERN AVENUE, LLC,
	 	a California limited liability company
	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

 

	 	ASSIGNEE:
	 	 
	 	MMB MANAGEMENT, LLC, a 

California limited liability company
	 	 
	 	By:	THE LEWIS FENNO MOULTON TRUST UDT, APRIL 17, 1925
	 	 	Manager

 

	 	 	By:	 
	 	 	Lewis M. Mathis
	 	 	Trustee
	 	 
	 	 	By:	 
	 	 	Jane M. Barnes
	 	 	Trustee
	 	 
	 	 	By:	 
	 	 	Glenn E. Mathis, Jr.
	 	 	Trustee

 

	 	By:	 
	 	 	Todd W. Mathis
	 	 	Manager
	 	 
	 	By:	 
	 	 	Scott T. Barnes
	 	 	Manager
	 	 
	 	By:	 
	 	 	Jared K. Mathis
	 	 	Manager

 

    	-2-

    	 

    

 

EXHIBIT 1

 

    	 

    	 

    

 

EXHIBIT 2

 

    	 

    	 

    

 

EXHIBIT “D”

 

Bill of Sale

 

[See attached copy.]

 

EXHIBIT “D”

    	 

    	 

    

 

BILL OF SALE

 

This BILL OF SALE
(this “Bill of Sale”) is made as of the 23rd day of January, 2013 (“Effective
Date”), by and between COP-WESTERN AVENUE, LLC, a California limited liability company (“Assignor”),
and MMB MANAGEMENT, LLC, a California limited liability company (“Assignee”)..

 

For good and valuable
consideration, receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows:

 

1.       Assignor hereby
sells, transfers, assigns and conveys to Assignee the following as of the Effective Date. To the extent assignable, all right,
title and interest of Assignor in and to all tangible personal property (“Personalty”) located on, and
used in connection with the management, maintenance or operation of that certain land and improvements located on the real property,
as more particularly described in Exhibit “1” hereto and made a part hereof (“Real Property”),
but excluding tangible personal property owned or leased by Assignor’s property manager or the tenants of the Real Property.

 

2.       This Bill of
Sale is given pursuant to that certain Purchase and Sale Agreement (as amended, the “Purchase Agreement”)
dated as of December 28, 2012, between Assignor and Assignee. Except as set forth in the Purchase Agreement, the Personalty conveyed
hereunder is conveyed by Assignor and accepted by Assignee AS IS, WHERE IS, AND WITH ALL FAULTS AND EXCLUDES ALL WARRANTIES,
INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE, WARRANTIES CREATED
BY ANY AFFIRMATION OF FACT OR PROMISE OR BY ANY DESCRIPTION OF THE PROPERTY CONVEYED HEREUNDER, OR BY ANY SAMPLE OR MODEL THEREOF,
AND ALL OTHER WARRANTIES WHATSOEVER CONTAINED IN OR CREATED BY THE UNIFORM COMMERCIAL CODE.

 

3.       Assignee hereby accepts the assignment
of the Personalty and agrees to assume and discharge, in accordance with the terms thereof, all of the obligations thereunder from
and after the Effective Date hereof.

 

[Signatures set forth on following page.]

 

EXHIBIT “D”

    	-1-

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Bill of Sale as of the date first above written.

 

 

	 	ASSIGNOR:
	 	 
	 	COP-WESTERN AVENUE, LLC,
	 	a California limited liability company
	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

 

	 	ASSIGNEE:
	 	 
	 	MMB MANAGEMENT, LLC, a 

California limited liability company
	 	 
	 	By:	THE LEWIS FENNO MOULTON TRUST UDT, APRIL 17, 1925
	 	 	Manager

 

	 	 	By:	 
	 	 	Lewis M. Mathis
	 	 	Trustee
	 	 
	 	 	By:	 
	 	 	Jane M. Barnes
	 	 	Trustee
	 	 
	 	 	By:	 
	 	 	Glenn E. Mathis, Jr.
	 	 	Trustee

 

	 	By:	 
	 	 	Todd W. Mathis
	 	 	Manager
	 	 
	 	By:	 
	 	 	Scott T. Barnes
	 	 	Manager
	 	 
	 	By:	 
	 	 	Jared K. Mathis
	 	 	Manager

 

    	-2-

    	 

    

 

EXHIBIT “E”

 

Notices to Tenants

 

[See attached copy.]

 

EXHIBIT “E”

    	 

    	 

    

 

NOTICE TO TENANTS

 

_____________________, 2013

 

	 	 
	 	 
	 	 
	 	 

 

Dear __________:

 

You are hereby notified
that _______________________________ (“Seller”), the current owner of __________________ (the “Property”)
and the current owner of the landlord’s interest in your lease in the Property, has sold the Property to _______________________
(“New Owner”), as of the above date. In connection with such sale, Seller has assigned and transferred its interest
in your lease and your security deposit thereunder in the amount of $____________ (the “Security Deposit”) to
New Owner, and New Owner has assumed and agreed to perform all of the landlord’s obligations under your lease (including
any obligations set forth in your lease or under applicable law to repay or account for the Security Deposit) arising after the
above date. New Owner acknowledges that New Owner has received and is responsible for the Security Deposit.

 

Accordingly, (a) all
your obligations under the lease from and after the date hereof, including your obligation to pay rent, shall be performable to
and for the benefit of New Owner, its successors and assigns, and (b) all the obligations of the landlord under the lease
arising after the above date, including any obligations thereunder or under applicable law to repay or account for the Security
Deposit, shall be the binding obligation of New Owner and its successors and assigns.

 

Unless and until you
are otherwise notified in writing by New Owner, the address of New Owner for all purposes under your lease is:

 

	 	 
	 	 
	 	 
	 	 

 

EXHIBIT “E”

    	-1-

    	 

    

 

 

Please immediately forward a new certificate
of insurance naming New Owner as an additional insured under your liability policy as required by your lease.

 

	 	Very truly yours,
	 	 
	 	SELLER:
	 	 
	 	                                                                               ,
	 	a                                                                     
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	NEW OWNER:
	 	 
	 	                                                                               ,
	 	a                                                                     
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	-2-

    	 

    

  

EXHIBIT “F”

 

Form of Estoppel Certificate

 

[See attached copy.]

 

EXHIBIT “F”

  

    	-1-

    	 

    

 

TENANT ESTOPPEL CERTIFICATE

 

	To:	____________________
	 	 
	Re:	Lease Pertaining to                                                      (the
    “Project”)
	 	 

Ladies and Gentlemen:

 

The undersigned, as
tenant (“Tenant”), hereby states and declares as follows:

 

1.          Tenant
is the lessee under that certain lease (the “Lease”) pertaining to the Project which is dated _______.

 

2.          The
name of the current Landlord is: __________________________.

 

3.          The
Lease is for the following portion of the Project _______________________ (the “Demised Premises”).

 

4.          The
Lease has not been modified or amended except by the following documents (if none, so state): _________

 

5.          The
initial term of the Lease commenced on _________, [__________] and shall expire on ______________, [__________], unless sooner
terminated in accordance with the terms of the Lease. Tenant has no option to renew or extend the term of the Lease, except as
follows (if none, so state): ______________.

 

6.          The
Lease, as it may have been modified or amended, contains the entire agreement of Landlord and Tenant with respect to the Demised
Premises, and is in full force and effect.

 

7.          As
of the date hereof, Tenant is occupying the Demised Premises and is paying rent on a current basis under the Lease.

 

8.          The
minimum monthly or base rent currently being paid by Tenant for the Demised Premises pursuant to the terms of the Lease is $______
per month.

 

a.           Common
area maintenance, taxes, insurance and other charges (the “Reimbursables”), if any, due under the Lease have been paid
through ____________________.

 

9.          Tenant
has accepted possession of the Demised Premises, and all items of an executory nature relating thereto to be performed by Landlord
have been completed, including, but not limited to, completion of construction thereof (and all other improvements required under
the Lease) in accordance with the terms of the Lease and within the time periods set forth in the Lease. Landlord has paid in full
any required contribution towards work to be performed by Tenant under the Lease, except as follows (if none, so state): ____________________.

 

EXHIBIT “F”

 

    	-1-

    	 

    

 

10.         No
default or event that with the passage of time or notice would constitute a default (hereinafter collectively a “Default”)
on the part of Tenant exists under the Lease in the performance of the terms, covenants and conditions of the Lease required to
be performed on the part of Tenant.

 

11.         To
the best of Tenant's knowledge, no Default on the part of Landlord exists under the Lease in the performance of the terms, covenants
and conditions of the Lease required to be performed on the part of Landlord.

 

12.         Tenant
has no option or right to purchase all or any part of the Project.

 

13.         Tenant
has not assigned, sublet, transferred or otherwise disposed of its interest in the Lease and/or the Premises, or any part thereof.

 

14.         Neither
the Lease nor any obligations of Tenant thereunder have been guaranteed by any person or entity, except as follows (if none, so
state): ______________________.

 

15.         No
prepayments of rentals due under the Lease have been made for more than one month in advance. No security or similar deposit has
been made under the Lease, except for the sum of $_____ which has been deposited by Tenant with Landlord pursuant to the terms
of the Lease.

 

16.         Tenant
has no defense as to its obligations under the Lease and asserts no setoff, claim or counterclaim against Landlord.

 

17.         The
undersigned is authorized to execute this Tenant Estoppel Certificate on behalf of Tenant.

 

    	-2-

    	 

    

 

18.         This
Tenant Estoppel Certificate may be executed in any number of separate counterparts, each of which shall be deemed an original,
but all of which, collectively and separately, shall constitute one and the same instrument.

 

	Very truly yours,	 
	 	 
	TENANT:	 
	                                                                               ,	 
	a                                                                              	 
	 	 
	By	 	 
	Name:	 	 
	Its:	 	 

 

 

    	-3-

    	 

    

 

Schedule 1

 

Rent Roll

 

[See attached copy.]

 

Schedule 1

 

    	 

    	 

    

 

Schedule 2

 

List of Property Documents

 

[See attached copy.]

 

Schedule 2

 

    	 

    	 

    

Harbor Gateway

20100 Western Avenue, Torrance

Due Diligence List

 

 

Property Information

		·	Western Ave Zoning Report via GE 

		·	Physical Report via GE

		·	Fujitsu Western Site Depiciton of Premises

		·	Floor Plans (13 documents)

 

Environmental

		·	20100 Western Ave_LGS REPORT

		·	CBRE DISCLOSURE FORM_No Flood_No Quake

		·	LGS Disclosure Letter No Flood No Quake

		·	Phase I ESA dated 8-23-12

 

Accounting

		·	Western - 2011 CAM Reconciliation

		·	Western – 2012 YTD Expense

		·	Aged Receivables Report- Age as of 11/30/2012

 

Title & Survey

		·	Preliminary Title Report- First American
Title Insurance Company

		·	Western Ave ALTA Survey 8-12

 

Roof Report

		·	Roof Report- date of 7/3/2012

		·	Preventative Maintenance Report 2012-2013

 

Service Contracts

		·	Landscaping Contract

		·	Lighting Contract

		·	Parking lot sweeping Contract

 

Leases and Tenant Info

		·	E&J

		o	E&J Acquisition Lease

		·	Fujitsu

		o	Fujitsu tenant allowance – Western Ave

		o	Fully executed Fujitsu Addendum to lease

		o	Fully executed Fujitsu lease

		·	Nextel

		o	Nextel Lease abstract

		o	Nextel Lease

 

    	-2-

    	 

    

 

Harbor Gateway

20100 Western Avenue, Torrance

Due Diligence List

 

		·	Patlite

		o	Fully executed Patlite First Amendment (11/15/2011)

		o	Patlite Lease

 

		·	Yonex

		o	Fully executed First Amendment - Yonex

		o	Fully executed Yonex Second Amendment 10-11-12

		o	Second Amendment to Lease (signed by Yonex) 10-2-12

		o	Yonex Lease

 

    	-3-

    	 

    

 

EXHIBIT “G”

 

Grant Deed

 

[See attached]

 

    	 

    	 

    

 

 

grant
deed

 

	RECORDING REQUESTED BY AND	 
	WHEN RECORDED MAIL TO:	 
	 	 
	MMB Management, LLC	 
	9841 Irvine Center Drive, Suite	 
	Irvine, California  92618-4316	 
	Attn:  William B. Brinckloe, Jr., Esq.	 
	 	 
	MAIL TAX STATEMENTS TO:	SPACE ABOVE THIS LINE FOR RECORDER'S USE
	 	 
	Mr. Scott T. Barnes	[Amount of Documentary Transfer Tax
	Manager	Shown on Attached Paper – Not For Public
	MMB Management, LLC	Record Pursuant to Sections 11932 and
	21985 Elsberry Way	11933 of the California Revenue and
	Lake Forest, California  92630	Taxation Code.]

 

grant
deed

 

THE UNDERSIGNED GRANTOR DECLARES:

 

FOR VALUABLE CONSIDERATION,
receipt of which is hereby acknowledged, COP-WESTERN AVENUE, LLC, a California limited liability company (“Grantor”),
hereby grants to MMB MANAGEMENT, LLC, a California limited liability company, the real property
located in the City of Los Angeles, County of Los Angeles, State of California, which is legally described in Exhibit A,
attached hereto and incorporated herein by this reference (the "Property").

 

IN WITNESS WHEREOF,
Grantor has caused this Grant Deed to be executed as of the date indicated.

 

	 	 	GRANTOR
	 	 	 
	Dated: January            , 2013	 	COP-WESTERN AVENUE, LLC,
	 	 	a California limited liability company
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Its:	 

 

    	 

    	 

    

 

EXHIBIT “G”

 

    	 

    	 

    

 

Exhibit A to Grant Deed

 

LEGAL DESCRIPTION OF THE PROPERTY

 

The land is situated in the City of Los
Angeles, County of Los Angeles, State of California, and is described as follows:

 

PARCEL A:

 

THOSE PORTIONS OF LOTS 18, 19 AND 20 OF
TRACT NO. 52172-02, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1238 PAGES
17 TO 22, INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AS DESCRIBED AS PARCEL 3 IN EXHIBIT "A"
OF THAT CERTAIN CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT 99-2594, RECORDED DECEMBER 8, 2000 AS INSTRUMENT NO. 00-1917705,
OFFICIAL RECORDS AND BEING MORE PARTICULARLY DESCRIBED AS A WHOLE AS FOLLOWS:

 

COMMENCING AT THE NORTHEAST CORNER OF SAID
LOT 18; THENCE ALONG THE NORTHERLY LINE OF SAID LOT 18, SOUTH 86° 30’ 05" WEST 0.67 FEET TO THE TRUE POINT OF BEGINNING;
THENCE LEAVING SAID NORTHERLY LINE OF LOT 18, "SOUTH" 798.54 FEET TO THE SOUTHERLY LINE OF SAID LOT 20; THENCE ALONG
THE SOUTHERLY LINE OF SAID LOT 20, SOUTH 89° 59’ 31" WEST 346.30 FEET TO THE SOUTHWEST CORNER OF SAID LOT 20; THENCE
ALONG THE WESTERLY LINE OF SAID LOTS 18, 19, AND 20, NORTH 00° 23’ 15" WEST 690.86 FEET; THENCE NORTH 89° 36’
45" EAST 1.89 FEET TO A POINT OF A NON TANGENT CURVE CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 90.00 FEET, A RADIAL LINE TO
SAID POINT BEARS SOUTH 88° 54’ 26" WEST; THENCE NORTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 87°
35’ 39", AN ARC LENGTH OF 137.59 FEET; THENCE ALONG THE NORTHERLY LINE OF SAID LOT 18, NORTH 86° 30’ 05"
EAST 265.09 FEET TO THE TRUE POINT OF BEGINNING.

 

PARCEL B:

 

EASEMENTS FOR VEHICULAR AND PEDESTRIAN
INGRESS AND EGRESS, DRAINAGE, FIRE HYDRANTS, UNDERGROUND UTILITIES, AND REFUSE ENCLOSURE AS CREATED BY THAT CERTAIN DECLARATION
AND GRANT OF EASEMENTS AND RECIPROCAL EASEMENT AGREEMENT, RECORDED SEPTEMBER 21, 2000 AS INSTRUMENT NO. 00-1482684, OVER PORTIONS
OF CERTAIN PARCELS OF LAND DESCRIBED AS PARCELS 1 AND 2 IN EXHIBIT "A" OF THAT CERTAIN CERTIFICATE OF COMPLIANCE FOR
LOT LINE ADJUSTMENT 99-2594, RECORDED DECEMBER 8, 2000 AS INSTRUMENT NO. 00-1917705, AS MORE PARTICULARLY DESCRIBED IN SAID DECLARATION,
UPON THE TERMS, COVENANTS AND PROVISIONS THEREIN CONTAINED, AS AMENDED BY A DOCUMENT ENTITLED "FIRST AMENDMENT TO DECLARATION
GRANT OF EASEMENTS AND RECIPROCAL EASEMENT AGREEMENT", RECORDED DECEMBER 19, 2000 AS INSTRUMENT NO. 00-1975273.

 

PARCEL C:

 

THOSE CERTAIN EASEMENT RIGHTS AS CREATED
BY THAT CERTAIN DOCUMENT ENTITLED "DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR HARBOR GATEWAY CENTER, INDUSTRIAL
TRACT PARCEL", RECORDED AUGUST 6, 1999 AS INSTRUMENT NO. 99-1483487, AS AMENDED BY DOCUMENTS RECORDED DECEMBER 10, 1999 AS
INSTRUMENT NOS. 99-2285253, 99-2285254, AND 99-2285255, AFFECTING THE COMMON AREA, AS DEFINED THEREIN. SUBJECT TO THE TERMS, COVENANTS
AND PROVISIONS CONTAINED THEREIN.

 

APN:  7351-021-038

 

    	 

    	 

    

 

ACKNOWLEDGEMENT

 

	STATE OF CALIFORNIA	 	}
	COUNTY OF LOS ANGELES	 	} S.S.

 

On January           ,
2013, before me,                                              , a Notary Public, personally appeared,                                            ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY
OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal. 

Signature _____________________________                                                       (Seal)

 

    	 

    	 

    

 

Document No.

 

Date Recorded

 

STATEMENT OF TAX DUE AND REQUEST THAT TAX
DECLARATION

 

NOT BE MADE A PART OF THE PERMANENT RECORD

 

IN THE OFFICE OF THE COUNTY RECORDER

 

(Pursuant to Section 11932 R&T Code)

 

To: Registrar-Recorder County of Los Angeles

 

Request is hereby made in accordance with
the provisions of the Documentary Transfer Tax Act that the amount of tax due not be shown on the original document which names:
MMB MANAGEMENT, LLC, a California limited liability company (as Grantee).

 

Property described in the accompanying
document is located in the County of Los Angeles, State of California.

 

The amount of tax due on the accompanying
document is $            

 

x
Computed on full value of property conveyed, or

 

 ̈
Computed on full value less liens and encumbrances remaining at time of sale.

 

first
American title COMPANY, a

California corporation

 

	By:	 	 
	 	Patty Beverly	 
	 	Senior Escrow Officer, CEOTHE SECURITIES FOR WHICH THIS SECURITY
IS EXERCISABLE HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

SENESCo
TECHNOLOGIES, INC.

 

	Warrant Shares: [_______]	Initial Issuance Date: January __, 2014

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ or its
assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after January __, 2013 (the “Initial Exercise Date”)
and on or prior to the close of business on the five year anniversary of the Initial Issuance Date (the “Termination
Date”) but not thereafter, to subscribe for and purchase from Senesco Technologies, Inc., a Delaware corporation
(the “Company”), up to ______ shares (as subject to adjustment hereunder, the “Warrant
Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the
Exercise Price, as defined in Section 2(b). This Warrant is one of a series of warrants issued by the Company in connection
with a public offering of Common Stock and of like tenor, except as to the number of shares of Common Stock subject thereto
(collectively, the “Company Warrants”).

 

Section
1.          Definitions. Capitalized terms used and not
otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the
“Purchase Agreement”), dated January 4, 2013, among the Company and the purchasers
signatory thereto.

 

    	1

    	 

    

 

Section 2.          Exercise.

 

a)        Exercise
of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company
as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company)
of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto. Within three (3) Trading Days following the date
of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice
of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified
in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required.
Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant
to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised
in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days
of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases
of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number
of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and
the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company
shall deliver any objection to any Notice of Exercise Form within one (1) Business Day of receipt of such notice. The Holder
and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following
the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any
given time may be less than the amount stated on the face hereof.

 

b)         Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $0.12, subject to adjustment hereunder
(the “Exercise Price”).

 

c)         Cashless
Exercise. So long as permitted under applicable securities laws, this Warrant may be exercised, in whole or in part, at any
time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares
equal to the quotient obtained by dividing [(A-B) * (X)] by (A), where:

 

		(A) =	the VWAP on the Trading Day immediately preceding the
date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable
Notice of Exercise;

 

		(B) =	the Exercise Price of this Warrant, as adjusted hereunder;
and

 

		(X) =	the number of Warrant Shares that would be issuable upon
exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather
than a cashless exercise.

 

    	2

    	 

    

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
on a national securities exchange, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the Common Stock is then quoted on the OTC Bulletin
Board or an OTC Markets Group Inc. market, the volume weighted average price of the Common Stock for such date (or the nearest
preceding date), (c) if the Common Stock is not then listed or quoted for trading on any of the above and if prices for the Common
Stock are then reported in the “Pink Sheets” (or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value
of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest
of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the
Company.

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised pursuant to this Section
2.

 

d)      
    Mechanics of Exercise.

 

i.            Delivery
of Warrant Shares Upon Exercise. The Company shall use best efforts to cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company
through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such
system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of
the Warrant Shares by Holder, (B) this Warrant is being exercised via cashless exercise or (C) the shares are eligible for resale
by the Holder without volume or manner-of-sale limitations pursuant to Rule 144, and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the latest of (A) the delivery
to the Company of the Notice of Exercise, (B) surrender of this Warrant (if required) and (C) payment of the aggregate Exercise
Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery Date”).
The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall
be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with
payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder,
if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. If the Company fails for any reason
to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall
pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise
(based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20
per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant
Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.

 

    	3

    	 

    

 

ii.         Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant
evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant.

 

iii.         Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i)
by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.         Compensation
for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to an exercise on or before
the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction
or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the
number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times
(2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in
which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have
been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases
Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common
Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding
sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.
Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely
deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. Notwithstanding the foregoing,
if the Company is not permitted to issue unregistered shares to the Holder via cashless exercise because such issuance is prohibited
under applicable securities laws, the parties acknowledge that the Company shall not have any cash liability associated therewith.

 

    	4

    	 

    

 

v.           No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

vi.         Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the
Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder;
provided, however, that in the event Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder
and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental
thereto.

 

vii.         Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

e)           Holder’s
Exercise Limitations.

 

		i.	Notwithstanding anything to the contrary set forth in this Warrant, at no time may all or a portion
of the Warrant be exercised if the number of shares of Common Stock to be issued pursuant to such exercise would exceed,
when aggregated with all other shares of Common Stock owned by the Holder at such time, the number of shares of Common Stock which
would result in the Holder beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules
thereunder) more than 4.99% of all of the Common Stock outstanding at such time (the “4.99% Beneficial Ownership Limitation”);
provided, however, that upon the Holder providing the Company with sixty-one (61) days’ advance notice (the
“4.99% Waiver Notice”) that the Holder would like to waive this Section2(e)(i) with regard to any or all shares
of Common Stock issuable upon exercise of this Warrant, this Section 2(e)(i) will be of no force or effect with regard to all or
a portion of this Warrant referenced in the 4.99% Waiver Notice.

 

    	5

    	 

    

 

		ii.	Notwithstanding anything to the contrary set forth in this Warrant, at no time may all or a portion
of this Warrant be exercised if the number of shares of Common Stock to be issued pursuant to such exercise, when aggregated with
all other shares of Common Stock owned by the Holder at such time, would result in the Holder beneficially owning (as determined
in accordance with Section 13(d) of the Exchange Act and the rules thereunder) in excess of 9.99% of the then issued and outstanding
shares of Common Stock outstanding at such time (the “9.99% Beneficial Ownership Limitation” and the lower of
the 9.99% Beneficial Ownership Limitation and the 4.99% Beneficial Ownership Limitation then in effect, the “Maximum Percentage”).

 

		iii.	By written notice to the Company, the Holder may from time to time decrease the Maximum Percentage
to any other percentage specified in such notice.

 

		iv.	For purposes of this Warrant, in determining the number of outstanding shares of Common Stock,
the Holder may rely on the number of outstanding shares of Common Stock as reflected in (1) the Company’s most recent Form
10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may
be, (2) a more recent public announcement by the Company or (3) any other notice by the Company setting forth the number of shares
of Common Stock outstanding. For any reason at any time, upon the written or oral request of the Holder, the Company shall within
one (1) business day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any
case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder and its affiliates since the date as of which such number of outstanding
shares of Common Stock was reported, which in any event are convertible or exercisable, as the case may be, into shares of the
Company’s Common Stock within 60 days’ of such calculation and which are not subject to a limitation on conversion
or exercise analogous to the limitation contained herein. The provisions of this paragraph shall be
construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph
(or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitation herein contained
or to make changes or supplements necessary or desirable to properly give effect to such limitation.

 

    	6

    	 

    

 

Section 3.          Certain
Adjustments.

 

a)         Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b)         Subsequent
Equity Sales. Until the eighteen month anniversary of the Initial Issuance Date, if the Company or any Subsidiary thereof,
as applicable, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue
(or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Common Stock Equivalents,
at an Offering Price (as defined below) per share less than the Exercise Price then in effect (such lower price, the “Base
Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood and agreed
that if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase
price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options
or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an Offering
Price per share that is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise
Price on such date of the Dilutive Issuance at such Offering Price), then simultaneously with the consummation of each Dilutive
Issuance, the Exercise Price shall be reduced and only reduced to equal the Base Share Price. For purposes of this section, “Offering
Price” shall mean: (i) for a Dilutive Issuance involving only Common Stock, the purchase price per share of such Common
Stock; (ii) for a Dilutive Issuance involving units comprised of Common Stock and warrants, the purchase price per unit; (iii)
for a Dilutive Issuance involving convertible preferred stock or convertible debt securities, the stated value of such convertible
preferred stock or convertible debt securities divided by the number of shares issuable upon conversion thereunder. Such adjustment
shall be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustments
shall be made, paid or issued under this Section 3(b) in respect of an Exempt Issuance. The Company shall notify the Holder, in
writing, no later than the Trading Day following the issuance or deemed issuance of any Common Stock or Common Stock Equivalents
subject to this Section 3(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion
price and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification,
whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the occurrence of any Dilutive
Issuance, the Holder is entitled to receive a number of Warrant Shares based upon the Base Share Price regardless of whether the
Holder accurately refers to the Base Share Price in the Notice of Exercise. If the Company enters into a Variable Rate Transaction,
despite the prohibition thereon in the Purchase Agreement, the Company shall be deemed to have issued Common Stock or Common Stock
Equivalents at the lowest possible conversion or exercise price at which such securities may be converted or exercised.

 

    	7

    	 

    

 

c)         Pro
Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common
Stock (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants
to subscribe for or purchase any security, then in each such case the Exercise Price shall be adjusted by multiplying the Exercise
Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution
by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned above, and of which the numerator
shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets
or evidence of indebtedness or rights or warrants so distributed applicable to one outstanding share of the Common Stock as determined
by the Board of Directors in good faith. In either case the adjustments shall be described in a statement provided to the Holder
of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common
Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record
date mentioned above.

 

    	8

    	 

    

 

d)         Fundamental
Transaction. If, at any time while this Warrant is outstanding, the Company completes a Fundamental Transaction then, upon
any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each share of Warrant Stock that would
have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the
Holder (without regard to any limitation in Section 2 on the exercise of this Warrant), the number of shares of Common Stock of
the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (subject to the
limitations on exercise set forth in Section 2(e) of this Warrant). For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of
a Fundamental Transaction that is (1) a transaction where more than 50% of the consideration is payable in cash, (2) a “Rule
13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a Fundamental Transaction involving a person or
entity not traded on a national securities exchange, the Company or any Successor Entity (as defined below) shall, at the Holder’s
option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, purchase
this Warrant from the Holder by paying to the Holder, within 5 business days, an amount of cash equal to the Black Scholes
Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction. “Black
Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the
“OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable
Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate
for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the date
of consummation of the Fundamental Transaction, (B) an expected volatility equal to the greater of 100% and the 100 day volatility
obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement of the applicable
Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the sum of the price per share being
offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and
(D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction
and the date of consummation of the Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction
in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations
of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(d) pursuant
to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Warrant, deliver to the Holder in exchange
for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the
exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock
and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein. For purposes hereof, (i) “Fundamental Transaction” means that (A) the
Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not
the Company is the surviving corporation) another Person or Persons, or (ii) sell, assign, transfer, convey or otherwise dispose
of all or substantially all of the properties or assets of the Company or any of its Subsidiaries to another Person, or (iii) allow
another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding
shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making
or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv)
consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares
of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person or other Persons
making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other
business combination, or any Person who is a holder of the Company’s securities on the date hereof or who is a Holder), or
(v) reorganize, recapitalize or reclassify its Common Stock or (B) any “person” or “group” (as these terms
are used for purposes of Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”))
is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of either (x) 50% of the aggregate ordinary voting power represented by issued and outstanding shares of Common Stock (other than
any Person who is a holder of the Company’s securities on the date hereof or who is a Holder) or (y) 50% or more of the shares
of Voting Stock of the Company not held by such Person or Persons as of the date hereof (other than any Person who is a holder
of the Company’s securities on the date hereof or who is a Holder), (ii) “Voting Stock” of a Person means
capital stock of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect,
or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person (irrespective
of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the
happening of any contingency), (iii) “Person” means an individual, a limited liability company, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or
agency thereof and (iv) “Subsidiary” means any entity in which the Company, directly or indirectly, owns any
of the capital stock or holds an equity or similar interest.

 

    	9

    	 

    

 

e)           Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

f)           Notice
to Holder.

 

i.            Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly
mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of
Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.         Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last
address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or
effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common
Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the
date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares
of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale,
transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall
not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided
hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company
shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled
to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering
such notice except as may otherwise be expressly set forth herein.

 

    	10

    	 

    

 

Section 4.          Transfer
of Warrant.

 

a)         Transferability.
Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof and to the provisions
of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration
rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated
agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder
or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue
to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without
having a new Warrant issued.

 

b)         New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial
issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

c)         Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and
for all other purposes, absent actual notice to the contrary.

 

    	11

    	 

    

 

d)         Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer
of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and
under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or
current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

e)         Representation
by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any
exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for
distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities
law, except pursuant to sales registered or exempted under the Securities Act.

 

Section 5.          Miscellaneous.

 

a)         No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i).

 

b)         Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of
the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c)         Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

    	12

    	 

    

 

d)         Authorized
Shares.

 

The Company covenants
that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.
The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged
with the duty of executing stock certificates to execute and issue the necessary Warrant Shares upon the exercise of the purchase
rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares
may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market
upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise
of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment
for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

 

Except and
to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions
as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting
the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking
any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

 

e)         Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

 

f)         Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does
not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

    	13

    	 

    

 

g)         Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision
of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

h)         Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Purchase Agreement.

 

i)         Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

 

j)         Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

k)         Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.

 

l)         Amendment.
Any term of this Warrant may be amended or waived (either generally or in a particular instance and either retroactively or prospectively)
with the written consent of the Company and the holders of Warrants issued pursuant to the Purchase Agreement representing at
least 67% of the number of shares of Common Stock then subject to such outstanding Warrants. Notwithstanding the foregoing, the
number of Warrant Shares subject to this Warrant and the Exercise Price of this Warrant may not be amended, and the right to exercise
this Warrant may not be waived, without the written consent of the Holder (it being agreed that an amendment to or waiver under
any of the provisions of Section 3 of this Warrant shall not be considered an amendment of the number of Warrant Shares or the
Exercise Price). The Company shall give prompt written notice to the Holder of any amendment hereof or waiver hereunder that was
effected without the Holder’s written consent. No waivers of any term, condition or provision of this Warrant, in any one
or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

    	14

    	 

    

 

m)         Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

n)         Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

********************

 

(Signature Page Follows)

 

    	15

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

  

	 	senesco technologies, inc.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	16

    	 

    

 

NOTICE OF EXERCISE

 

		To:	SENESCO TECHNOLOGIES,
INC.

 

(1)  The
undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only
if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.

 

(2)  Payment
shall take the form of (check applicable box):

 

 ̈
in lawful money of the United States; or

 

 ̈
[if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

 

(3)  Please
issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

 

  

The Warrant Shares shall be delivered to
the following DWAC Account Number:

 

 

 

 

 

 

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: _______________________________________________________________________________

Signature of Authorized Signatory of Investing
Entity: _________________________________________________________

Name of Authorized Signatory: ___________________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________________

Date: _______________________________________________________________________________________________

 

    	 

    	 

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED, [____]
all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

_______________________________________________________________

 

	 	Dated:  ______________, _______

 

	 	Holder’s Signature:	 	 
	 	 	 	 
	 	Holder’s Address:	 	 
	 	 	 	 
	 	 	 	 

 

	Signature Guaranteed:	 	 

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.

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