Document:

EX-10.52

 Exhibit 10.52 

Execution Copy 

COMMON STOCK PURCHASE AGREEMENT 

COMMON STOCK PURCHASE AGREEMENT (the “Agreement”), dated as of January 27, 2017, by and between CAPNIA, INC., a
Delaware corporation (the “Company”), and ASPIRE CAPITAL FUND, LLC, an Illinois limited liability company (the “Buyer”). Capitalized terms used herein and not otherwise defined herein are defined in
Section 10 hereof. 
 WHEREAS: 

Subject to the terms and conditions set forth in this Agreement, the Company wishes to sell to the Buyer, and the Buyer wishes to buy from the
Company, up to Seventeen Million Dollars ($17,000,000) of the Company’s common stock, par value $0.001 (the “Common Stock”). The shares of Common Stock to be purchased hereunder are referred to herein as the “Purchase
Shares.” 
 NOW THEREFORE, the Company and the Buyer hereby agree as follows: 

 

	 	1.	PURCHASE OF COMMON STOCK. 

 Subject to the terms and conditions set forth in this
Agreement, the Company has the right to sell to the Buyer, and the Buyer has the obligation to purchase from the Company, Purchase Shares as follows: 

(a) Commencement of Purchases of Common Stock. After the Commencement Date (as defined below), the purchase and sale of Purchase Shares
hereunder shall occur from time to time upon written notices by the Company to the Buyer on the terms and conditions as set forth herein following the satisfaction of the conditions (the “Commencement”) as set forth in
Sections 6 and 7 below (the date of satisfaction of such conditions, the “Commencement Date”). Subject to the terms and conditions of this Agreement, after the Commencement Date, the Company shall be obligated to sell and the Buyer
shall be obligated to purchase an aggregate of $2,000,000 of Common Stock (the “Merger Regular Purchase”) from the Company on the date of the closing of the Financing (as defined in that certain Agreement And Plan Of Merger dated as
of December 22, 2016 by and among the Company and the parties thereto (the “Merger Agreement”) filed as Exhibit 2.1 to the Current Report on Form 8-K filed by the Company on
December 27, 2016). The per share purchase price for the Merger Regular Purchase shall be equal to the per share price for Common Stock in the Financing paid to the Company by the Financing Investors (as defined in the Merger Agreement),
however, in no event shall the per share purchase price for the Merger Regular Purchase exceed $0.96, which price shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend,
stock split, reverse stock split or other similar transaction. 
 (b) The Company’s Right to Require Regular
Purchases. Subject to the terms and conditions of this Agreement, on any given Business Day after the Commencement Date, the Company shall have the right but not the obligation to direct the Buyer by its delivery to the Buyer of a Purchase
Notice from time to time, and the Buyer thereupon shall have the obligation, to buy the number of Purchase Shares specified in such notice, up to 100,000 Purchase Shares, on such Business Day (as long as such notice is delivered on or before 5:00
p.m. Eastern time on such Business Day) (each such purchase, together with the Merger Regular Purchase, a “Regular Purchase”) at the Purchase Price on the Purchase Date; however, in no event shall the Purchase Amount of a Regular
Purchase exceed Three Hundred Thousand Dollars ($300,000) per Business Day. The Company may deliver additional Purchase Notices to the Buyer from time to time so long as the most recent purchase has been completed. The share amounts in this Section
1(b) shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction. 

 (c) VWAP Purchases. Subject to the terms and conditions of this Agreement, in addition to
purchases of Purchase Shares as described in Section 1(b) above, with one Business Day’s prior written notice (as long as such notice is delivered on or before 5:00 p.m. Eastern time on the Business Day immediately preceding the VWAP Purchase
Date), the Company shall also have the right but not the obligation to direct the Buyer by the Company’s delivery to the Buyer of a VWAP Purchase Notice from time to time, and the Buyer thereupon shall have the obligation, to buy the VWAP
Purchase Share Percentage of the trading volume of the Common Stock on the VWAP Purchase Date up to the VWAP Purchase Share Volume Maximum on the VWAP Purchase Date (each such purchase, a “VWAP Purchase”) at the VWAP Purchase Price.
The Company may deliver a VWAP Purchase Notice to the Buyer on or before 5:00 p.m. Eastern time on a date on which the Company also submitted a Purchase Notice for a Regular Purchase of at least 100,000 Purchase Shares to the Buyer. The share amount
in the prior sentence shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split, or other similar transaction. A VWAP Purchase shall
automatically be deemed completed at such time on the VWAP Purchase Date that the Sale Price falls below the VWAP Minimum Price Threshold; in such circumstance, the VWAP Purchase Amount shall be calculated using (i) the VWAP Purchase Share
Percentage of the aggregate shares traded on the Principal Market for such portion of the VWAP Purchase Date prior to the time that the Sale Price fell below the VWAP Minimum Price Threshold and (ii) a VWAP Purchase Price calculated using the
volume weighted average price of Common Stock sold during such portion of the VWAP Purchase Date prior to the time that the Sale Price fell below the VWAP Minimum Price Threshold. Each VWAP Purchase Notice must be accompanied by instructions to the
Company’s Transfer Agent to immediately issue to the Buyer an amount of Common Stock equal to the VWAP Purchase Share Estimate, a good faith estimate by the Company of the number of Purchase Shares that the Buyer shall have the obligation to
buy pursuant to the VWAP Purchase Notice. In no event shall the Buyer, pursuant to any VWAP Purchase, purchase a number of Purchase Shares that exceeds the VWAP Purchase Share Estimate issued on the VWAP Purchase Date in connection with such VWAP
Purchase Notice; however, the Buyer will immediately return to the Company any amount of Common Stock issued pursuant to the VWAP Purchase Share Estimate that exceeds the number of Purchase Shares the Buyer actually purchases in connection with such
VWAP Purchase. Upon completion of each VWAP Purchase Date, the Buyer shall submit to the Company a confirmation of the VWAP Purchase in form and substance reasonably acceptable to the Company. The Company may deliver additional VWAP Purchase Notices
to the Buyer from time to time so long as the most recent purchase has been completed. 
 (d) Payment for Purchase Shares. For each
Regular Purchase, the Buyer shall pay to the Company an amount equal to the Purchase Amount as full payment for such Purchase Shares via wire transfer of immediately available funds on the same Business Day that the Buyer receives such Purchase
Shares. For each VWAP Purchase, the Buyer shall pay to the Company an amount equal to the VWAP Purchase Amount as full payment for such Purchase Shares via wire transfer of immediately available funds on the third Business Day following the VWAP
Purchase Date. All payments made under this Agreement shall be made in lawful money of the United States of America via wire transfer of immediately available funds to such account as the Company may from time to time designate by written notice in
accordance with the provisions of this Agreement. Whenever any amount expressed to be due by the terms of this Agreement is due on any day that is not a Business Day, the same shall instead be due on the next succeeding day that is a Business Day.

  
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 (e) Purchase Price Floor. The Company and the Buyer shall not effect any sales under this
Agreement on any Purchase Date where the Closing Sale Price is less than the Floor Price. “Floor Price” means $0.25 per share of Common Stock, which shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction. 
 (f) Records of
Purchases. The Buyer and the Company shall each maintain records showing the remaining Available Amount at any given time and the dates and Purchase Amounts for each purchase, or shall use such other method reasonably satisfactory to the Buyer
and the Company to reconcile the remaining Available Amount. 
 (g) Taxes. The Company shall pay any and all transfer, stamp or
similar taxes that may be payable with respect to the issuance and delivery of any shares of Common Stock to the Buyer made under this Agreement. 

(h) Compliance with Principal Market Rules. Notwithstanding anything in this Agreement to the contrary, and in addition to the
limitations set forth in Section 1(e), the total number of shares of Common Stock that may be issued under this Agreement, including the Commitment Shares (as defined in Section 4(e) hereof), shall be limited to 3,485,844 shares of Common Stock (the
“Exchange Cap”), which equals 19.99% of the Company’s outstanding shares of Common Stock as of the date hereof, unless stockholder approval is obtained to issue more than such 19.99%. The Exchange Cap shall be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction. The foregoing limitation shall not apply if stockholder approval has not
been obtained and at any time the Exchange Cap is reached and at all times thereafter the average price paid for all shares of Common Stock issued under this Agreement is equal to or greater than $0.85 (the “Minimum Price”), a price
equal to the Closing Sale Price on the date hereof (in such circumstance, for purposes of the Principal Market, the transaction contemplated hereby would not be “below market” and the Exchange Cap would not apply). The Minimum Price
shall be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction. Notwithstanding the foregoing, the Company shall not
be required or permitted to issue, and the Buyer shall not be required to purchase, any shares of Common Stock under this Agreement if such issuance would violate the rules or regulations of the Principal Market. The Company may, in its sole
discretion, determine whether to obtain stockholder approval to issue more than 19.99% of its outstanding shares of Common Stock hereunder if such issuance would require stockholder approval under the rules or regulations of the Principal Market.

 (i) Beneficial Ownership Limitation. The Company shall not issue and the Buyer shall not purchase any shares of Common Stock under
this Agreement if such shares proposed to be issued and sold, when aggregated with all other shares of Common Stock then owned beneficially (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the
“1934 Act”) and Rule 13d-3 promulgated thereunder) by the Buyer and its affiliates would result in the beneficial ownership by the Buyer and its affiliates of more than 19.99% of the then
issued and outstanding shares of Common Stock. 

  
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 2. BUYER’S REPRESENTATIONS AND WARRANTIES. 

The Buyer represents and warrants to the Company that as of the date hereof and as of the Commencement Date: 

(a) Investment Purpose. The Buyer is entering into this Agreement and acquiring the Commitment Shares (as defined in Section 4(e)
hereof) and the Purchase Shares (the Purchase Shares and the Commitment Shares are collectively referred to herein as the “Securities”), for its own account for investment only and not with a view towards, or for resale in
connection with, the public sale or distribution thereof; provided however, by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term. 

(b) Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a)(3) of Regulation
D of the 1933 Act. 
 (c) Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in
reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and the Buyer’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Securities. 

(d) Information. The Buyer has been furnished with all materials relating to the business, finances and operations of the Company and
materials relating to the offer and sale of the Securities that have been reasonably requested by the Buyer, including, without limitation, the SEC Documents (as defined in Section 3(f) hereof). The Buyer understands that its investment in the
Securities involves a high degree of risk. The Buyer (i) is able to bear the economic risk of an investment in the Securities including a total loss, (ii) has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of the proposed investment in the Securities and (iii) has had an opportunity to ask questions of and receive answers from the officers of the Company concerning the financial condition and business of
the Company and other matters related to an investment in the Securities. Neither such inquiries nor any other due diligence investigations conducted by the Buyer or its representatives shall modify, amend or affect the Buyer’s right to rely on
the Company’s representations and warranties contained in Section 3 below. The Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of
the Securities. 
 (e) No Governmental Review. The Buyer understands that no United States federal or state agency or any other
government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the
offering of the Securities. 
 (f) Transfer or Sale. The Buyer understands that except as provided in the Registration Rights
Agreement (as defined in Section 4(a) hereof): (i) the Securities have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently
registered thereunder or (B) an exemption exists permitting such Securities to be sold, assigned or transferred without such registration; (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the
terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933
Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register the Securities under the 1933
Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. 

  
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 (g) Organization. The Buyer is a limited liability company duly organized and validly
existing in good standing under the laws of the jurisdiction in which it is organized, and has the requisite organizational power and authority to own its properties and to carry on its business as now being conducted. 

(h) Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Buyer and is a
valid and binding agreement of the Buyer enforceable against the Buyer in accordance with its terms, subject as to enforceability to (i) general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and (ii) public policy underlying any law, rule or regulation (including any federal or state securities
law, rule or regulation) with regards to indemnification, contribution or exculpation. The execution and delivery of the Transaction Documents (as defined in Section 3(b) hereof) by the Buyer and the consummation by it of the transactions
contemplated hereby and thereby do not conflict with the Buyer’s certificate of organization or operating agreement or similar documents, and do not require further consent or authorization by the Buyer, its managers or its members. 

(i) Residency. The Buyer is a resident of the State of Illinois. 

(j) No Prior Short Selling. The Buyer represents and warrants to the Company that at no time prior to the date of this Agreement has any
of the Buyer, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any (i) “short sale” (as such term is defined in Section 242.200 of Regulation SHO of the 1934 Act) of
the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock. 
  

	 	3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

 The Company represents and warrants to
the Buyer that as of the date hereof and as of the Commencement Date: 
 (a) Organization and Qualification. The Company and its
“Subsidiaries” (which for purposes of this Agreement means any entity in which the Company, directly or indirectly, owns more than 50% of the voting stock or capital stock or other similar equity interests) are corporations or limited
liability companies duly organized and validly existing in good standing under the laws of the jurisdiction in which they are incorporated or organized, and have the requisite corporate or organizational power and authority to own their properties
and to carry on their business as now being conducted. Each of the Company and its Subsidiaries is duly qualified as a foreign corporation or limited liability company to do business and is in good standing in every jurisdiction in which its
ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing could not reasonably be expected to have a Material Adverse
Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse effect on any of: (i) the business, properties, assets, operations, results of operations or financial condition of the Company and its
Subsidiaries, if any, taken as a whole, or (ii) the authority or ability of the Company to perform its obligations under the Transaction Documents. The Company has no material Subsidiaries except as set forth on Schedule 3(a). 

  
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 (b) Authorization; Enforcement; Validity. (i) The Company has the requisite corporate
power and authority to enter into and perform its obligations under this Agreement, the Registration Rights Agreement and each of the other agreements entered into by the parties on the Commencement Date and attached hereto as exhibits to this
Agreement (collectively, the “Transaction Documents”), and to issue the Securities in accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents by the Company and the
consummation by it of the transactions contemplated hereby and thereby, including without limitation, the issuance of the Commitment Shares and the reservation for issuance and the issuance of the Purchase Shares issuable under this Agreement, have
been duly authorized by the Company’s Board of Directors or duly authorized committee thereof, do not conflict with the Company’s Certificate of Incorporation or Bylaws, and do not require further consent or authorization by the Company,
its Board of Directors or its stockholders (other than as contemplated by Section 1(h) hereof), (iii) this Agreement has been, and each other Transaction Document shall be on the Commencement Date, duly executed and delivered by the Company and
(iv) this Agreement constitutes, and each other Transaction Document upon its execution on behalf of the Company, shall constitute, the valid and binding obligations of the Company enforceable against the Company in accordance with their terms,
except as such enforceability may be limited by (y) general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of
creditors’ rights and remedies and (z) public policy underlying any law, rule or regulation (including any federal or states securities law, rule or regulation) with regards to indemnification, contribution or exculpation. The Board of
Directors of the Company or duly authorized committee thereof has approved the resolutions (the “Signing Resolutions”) substantially in the form as set forth as Exhibit B-1 attached
hereto to authorize this Agreement and the transactions contemplated hereby. The Signing Resolutions are valid, in full force and effect and have not been modified or supplemented in any material respect other than by the resolutions set forth in
Exhibit B-2 attached hereto regarding the registration statement referred to in Section 4 hereof. The Company has delivered to the Buyer a true and correct copy of the Signing Resolutions as
approved by the Board of Directors of the Company or an appropriate Board committee. 
 (c) Capitalization. As of the date hereof, the
authorized capital stock of the Company consists of (i) 100,000,000 shares of Common Stock, par value $0.001, of which as of the date hereof, 17,437,939 shares are issued and outstanding, zero shares are held as treasury shares, 3,867,285 shares are
reserved for future issuance pursuant to the Company’s equity incentive plans, of which approximately 960,346 shares remain available for future option grants or stock awards, and 6,518,737 shares are issuable and reserved for issuance pursuant
to securities (other than stock options or equity based awards issued pursuant to the Company’s stock incentive plans) exercisable or exchangeable for, or convertible into, shares of Common Stock, and (ii) 10,000,000 shares of preferred stock,
of which as of the date hereof 12,179 shares are issued and outstanding, convertible into 12,179,000 shares of common stock. All of such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and non-assessable. Except as disclosed in Schedule 3(c), (i) no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted
by the Company, (ii) there are no outstanding debt securities of the Company or any of its Subsidiaries, (iii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become
bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or

  
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securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, (iv) there are no material agreements or arrangements under which the Company or
any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except the Registration Rights Agreement), (v) there are no outstanding securities or instruments of the Company or any of its Subsidiaries
which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its
Subsidiaries, (vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement and (vii) the Company does not have any stock
appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. The Company has furnished or made available to the Buyer true and correct copies of the Company’s Certificate of Incorporation, as amended
and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s Bylaws, as amended and as in effect on the date hereof (the “Bylaws”). 

(d) Issuance of Securities. The Commitment Shares have been duly authorized and, upon issuance in accordance with the terms hereof, the
Commitment Shares shall be (i) validly issued, fully paid and non-assessable and (ii) free from all taxes, liens and charges with respect to the issuance thereof. At least an additional 10,000,000
shares of Common Stock have been duly authorized and reserved for issuance upon future purchase as Purchase Shares under this Agreement. Upon issuance and payment therefore in accordance with the terms and conditions of this Agreement, such Purchase
Shares shall be validly issued, fully paid and non-assessable and free from all taxes, liens and charges with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of
Common Stock. 
 (e) No Conflicts. Except as disclosed in Schedule 3(e), the execution, delivery and performance of the Transaction
Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the reservation for issuance and issuance of the Purchase Shares) will not (i) result in a
violation of the Certificate of Incorporation, including any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company, or the Bylaws or (ii) constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a
party, or result, to the Company’s knowledge, in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and the rules and regulations of the Principal Market applicable
to the Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except in the case of defaults, terminations, amendments, accelerations, cancellations and violations under
clause (ii), which could not reasonably be expected to result in a Material Adverse Effect. Except as disclosed in Schedule 3(e), neither the Company nor its Subsidiaries is in violation of any term of or in default under its Certificate of
Incorporation, including any Certificate of Designation, Preferences and Rights of any outstanding series of preferred stock of the Company, or Bylaws or their organizational charter or bylaws, respectively. Except as disclosed in Schedule 3(e),
neither the Company nor any of its Subsidiaries is in violation of any term of or is in default under any material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation
applicable to the Company or its Subsidiaries, except for possible violations, defaults, terminations or amendments that could not reasonably be expected to have a Material Adverse Effect. The business of the Company and its Subsidiaries is not
being conducted, and 

  
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shall not be conducted, in violation of any law, ordinance, or regulation of any governmental entity, except for possible violations, the sanctions for which either individually or in the
aggregate could not reasonably be expected to have a Material Adverse Effect. Except as specifically contemplated by this Agreement, reporting obligations under the 1934 Act or as required under the 1933 Act or applicable state securities laws or
the filing of a Listing of Additional Shares Notification Form with the Principal Market, the Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency or any
regulatory or self-regulatory agency in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents in accordance with the terms hereof or thereof. Except for reporting obligations under the
1934 Act, all consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence shall be obtained or effected on or prior to the Commencement Date. The Company is not subject to
any notices or actions from or to the Principal Market, other than routine matters incident to listing on the Principal Market and not involving a violation of the rules of the Principal Market. To the Company’s knowledge, the Principal Market
has not commenced any delisting proceedings against the Company. 
 (f) SEC Documents; Financial Statements. Except as disclosed in
Schedule 3(f), since September 30, 2015, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing
filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”). As of their
respective dates (except as they have been correctly amended), the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC (except as they may have been properly amended), contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates (except as they have been properly amended), the financial statements of the Company included in the SEC
Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with generally
accepted accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the
extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except as disclosed in Schedule 3(f) or routine correspondence, such as comment letters and notices of
effectiveness in connection with previously filed registration statements or periodic reports publicly available on EDGAR, to the Company’s knowledge, the Company or any of its Subsidiaries are not presently the subject of any inquiry,
investigation or action by the SEC. 
 (g) Absence of Certain Changes. Except as disclosed in Schedule 3(g), since September 30,
2016, there has been no material adverse change in the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries taken as a whole. For purposes of this Agreement, neither a decrease in cash or
cash equivalents or in the market price of the Common Stock nor losses incurred in the ordinary course of the Company’s business shall be deemed or considered a material adverse change. The Company has not taken any steps, and does not
currently 

  
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expect to take any steps, to seek protection pursuant to any Bankruptcy Law nor does the Company or any of its Subsidiaries have any knowledge or reason to believe that its creditors intend to
initiate involuntary bankruptcy or insolvency proceedings. The Company is financially solvent and is generally able to pay its debts as they become due. 

(h) Absence of Litigation. Except as disclosed in Schedule 3(h), to the Company’s knowledge, there is no action, suit, proceeding,
inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened against the Company, the Common Stock or any of
the Company’s Subsidiaries or any of the Company’s or the Company’s Subsidiaries’ officers or directors in their capacities as such, which could reasonably be expected to have a Material Adverse Effect (each, an
“Action”). A description of each such Action, if any, is set forth in Schedule 3(h). 
 (i) Acknowledgment Regarding
Buyer’s Status. The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby.
The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby and any
advice given by the Buyer or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to the Buyer’s purchase of the Securities. The Company
further represents to the Buyer that the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation by the Company and its representatives and advisors. 

(j) Intellectual Property Rights. To the Company’s knowledge, the Company and its Subsidiaries own or possess adequate
rights or licenses to use all material trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and other
intellectual property rights (collectively, “Intellectual Property”) necessary to conduct their respective businesses as now conducted, except as set forth in Schedule 3(j) or to the extent that the failure to own, possess, license
or otherwise hold adequate rights to use Intellectual Property would not, individually or in the aggregate, have a Material Adverse Effect. Except as disclosed in Schedule 3(j), to the Company’s knowledge, none of the Company’s active and
registered Intellectual Property will expire or terminate by the terms and conditions thereof within two years from the date of this Agreement, except as would not reasonably be expected to have a Material Adverse Effect. The Company and its
Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of any Intellectual Property of others and, except as set forth on Schedule 3(j), there is no claim, action or proceeding being made or brought against, or
to the Company’s knowledge, being threatened against, the Company or its Subsidiaries regarding Intellectual Property, which could reasonably be expected to have a Material Adverse Effect. 

(k) Environmental Laws. To the Company’s knowledge, the Company and its Subsidiaries (i) are in material compliance with any
and all applicable foreign, federal, state and local laws and regulations relating to the protection of the environment or human health and safety and with respect to hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), (ii) have received all material permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in material compliance with
all terms and conditions of any such permit, license or approval, except where, in each of the three foregoing clauses, the failure to so comply or receive such approvals could not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect. 

  
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 (l) Title. The Company and its Subsidiaries have good and marketable title to all personal
property owned by them that is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(l) or such as do not materially affect the
value of such property and do not interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries or could not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect. Any real property and facilities held under lease by the Company and any of its Subsidiaries, to the Company’s knowledge, are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do
not interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries. 
 (m)
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be reasonable and customary in the
businesses in which the Company and its Subsidiaries are engaged. To the Company’s knowledge, since January 1, 2014 neither the Company nor any such Subsidiary has been refused any insurance coverage sought or applied for and neither the
Company nor any such Subsidiary, to the Company’s knowledge, will be unable to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its
business at a cost that would not reasonably be expected to have a Material Adverse Effect. 
 (n) Regulatory Permits. Except as set
forth on Schedule 3(n), the Company and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses as currently
conducted, except when the failure to so possess such certificates, authorizations or permits could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has
received any written notice of proceedings relating to the revocation or modification of any such material certificate, authorization or permit. 

(o) Tax Status. The Company and each of its Subsidiaries has made or filed all federal and state income and all other material tax
returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books reserves reasonably adequate for the payment of all unpaid
and unreported taxes or filed valid extensions) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested
in good faith. To the Company’s knowledge, there are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction. 

(p) Transactions With Affiliates. Except as set forth on Schedule 3(p), and other than the grant or exercise of stock
options or any other equity securities offered pursuant to duly adopted stock or incentive compensation plans as disclosed on Schedule 3(c), as of the date hereof, none of the officers, directors or employees of the Company is presently a party to
any transaction with the Company or any of its Subsidiaries (other than for services as employees, officers and directors and reimbursement for expenses incurred on behalf of the Company), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or 

  
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personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other
entity in which any officer, director, or any such employee has a material interest or is an officer, director, trustee or general partner. 

(q) Application of Takeover Protections. The Company and its board of directors have taken or will take prior to the Commencement Date
all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of
Incorporation or the laws of the state of its incorporation, other than Section 203 of the Delaware General Corporation Law, which is or could become applicable to the Buyer as a result of the transactions contemplated by this Agreement,
including, without limitation, the Company’s issuance of the Securities and the Buyer’s ownership of the Securities. 
  

	 	4.	COVENANTS. 

 (a) Filing of Form 8-K and
Registration Statement. The Company agrees that it shall, within the time required under the 1934 Act, file a Current Report on Form 8-K disclosing this Agreement and the transaction contemplated hereby.
The Company shall also file within ten (10) Business Days from the date hereof a new registration statement covering the sale of the Securities by the Buyer in accordance with the terms of the Registration Rights Agreement between the Company
and the Buyer, dated as of the date hereof (“Registration Rights Agreement”). 
 (b) Blue Sky. The Company shall take
such action, if any, as is reasonably necessary in order to obtain an exemption for or to qualify (i) the initial issuance of the Securities to the Buyer under this Agreement and (ii) any subsequent sale of the Securities by the Buyer, in
each case, under applicable securities or “Blue Sky” laws of the states of the United States in such states as is reasonably requested by the Buyer from time to time, and shall provide evidence of any such action so taken to the Buyer at
its written request. 
 (c) Listing. The Company shall promptly secure the listing of all of the Securities upon each national
securities exchange and automated quotation system that requires an application by the Company for listing, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and shall maintain such listing, so long
as any other shares of Common Stock shall be so listed. The Company shall use its reasonable best efforts to maintain the Common Stock’s listing on the Principal Market in accordance with the requirements of the Registration Rights Agreement.
Neither the Company nor any of its Subsidiaries shall take any action that would be reasonably expected to result in the delisting or suspension of the Common Stock on the Principal Market, unless the Common Stock is immediately thereafter traded on
the New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the OTC Bulletin Board, or the OTCQB or OTCQX market places of the OTC Markets. The Company shall pay all fees and
expenses in connection with satisfying its obligations under this Section. 
 (d) Limitation on Short Sales and Hedging Transactions.
The Buyer agrees that beginning on the date of this Agreement and ending on the date of termination of this Agreement as provided in Section 11(k), the Buyer and its agents, representatives and affiliates shall not in any manner whatsoever enter
into or effect, directly or indirectly, any (i) “short sale” (as such term is defined in Section 242.200 of Regulation SHO of the 1934 Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position
with respect to the Common Stock. 

  
 -11- 

 (e) Issuance of Commitment Shares. Immediately upon the execution of this Agreement, the
Company shall issue to the Buyer as consideration for the Buyer entering into this Agreement 708,333 shares of Common Stock (the “Commitment Shares”). The Commitment Shares shall be issued in certificated or restricted book-entry
form and (subject to Section 5 hereof) shall bear a restrictive legend substantially similar to the following: 
 THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS. 

(f) Due Diligence. The Buyer shall have the right, from time to time as the Buyer may reasonably deem appropriate, to perform reasonable
due diligence on the Company during normal business hours and subject to reasonable prior notice to the Company. The Company and its officers and employees shall provide information and reasonably cooperate with the Buyer in connection with any
reasonable request by the Buyer related to the Buyer’s due diligence of the Company, including, but not limited to, any such request made by the Buyer in connection with (i) the filing of the registration statement described in Section
4(a) hereof and (ii) the Commencement; provided, however, that at no time is the Company required or permitted to disclose material nonpublic information to the Buyer or breach any obligation of confidentiality or
non-disclosure to a third party or make any disclosure that could cause a waiver of attorney-client privilege. Except as may be required by law, court order or governmental authority, each party hereto agrees
not to disclose any Confidential Information of the other party to any third party and shall not use the Confidential Information of such other party for any purpose other than in connection with, or in furtherance of, the transactions contemplated
hereby. Each party hereto acknowledges that the Confidential Information shall remain the property of the disclosing party and agrees that it shall take all reasonable measures to protect the secrecy of any Confidential Information disclosed by the
other party. 
 (g) Disposition of Securities. The Buyer shall not sell any Securities except as provided in this Agreement, the
Registration Rights Agreement and the “Plan of Distribution” section of the prospectus included in the Registration Statement. The Buyer shall not transfer any Securities except pursuant to sales described in the “Plan of
Distribution” section of the prospectus included in the Registration Statement or pursuant to Rule 144 under the 1933 Act. In the event of any sales of Securities pursuant to the Registration Statement, the Buyer will (i) effect such sales
pursuant to the “Plan of Distribution” section of the prospectus included in the Registration Statement, and (ii) will comply with all applicable prospectus delivery requirements. 

  
 -12- 

	 	5.	TRANSFER AGENT INSTRUCTIONS. 

 Immediately upon the execution of this Agreement, the
Company shall deliver to the Transfer Agent a letter in the form as set forth as Exhibit D attached hereto with respect to the issuance of the Commitment Shares. On the Commencement Date, the Company shall cause any restrictive legend
on the Commitment Shares to be removed upon surrender of the originally issued certificate(s) for such shares. So long as the Buyer complies with its obligations in Section 4(g), all of the Purchase Shares to be issued under this Agreement shall be
issued without any restrictive legend unless the Buyer expressly consents otherwise. The Company shall issue irrevocable instructions to the Transfer Agent, and any subsequent transfer agent, to issue Common Stock in the name of the Buyer for the
Purchase Shares (the “Irrevocable Transfer Agent Instructions”). The Company warrants to the Buyer that, so long as the Buyer complies with its obligations in Section 4(g), no instruction other than the Irrevocable Transfer Agent
Instructions referred to in this Section 5, will be given by the Company to the Transfer Agent with respect to the Purchase Shares and that the Commitment Shares and the Purchase Shares shall otherwise be freely transferable on the books
and records of the Company as and to the extent provided in this Agreement and the Registration Rights Agreement, subject to the provisions of Section 4(e) in the case of the Commitment Shares. 

 

	 	6.	CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE SALES OF SHARES OF COMMON STOCK UNDER THIS AGREEMENT. 

The right of the Company hereunder to commence sales of the Purchase Shares is subject to the satisfaction of each of the following conditions
on or before the Commencement Date (the date that the Company may begin sales of Purchase Shares): 
 (a) The Buyer shall have executed each
of the Transaction Documents and delivered the same to the Company; 
 (b) The representations and warranties of the Buyer shall be true and
correct as of the Commencement Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct in all material respects as of such specific date) and the Buyer shall have
performed, satisfied and complied in all material respects with the covenants and agreements required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Commencement Date; and 

(c) A registration statement covering the sale of the Securities by the Buyer shall have been declared effective under the 1933 Act by the SEC
and no stop order with respect to the registration statement shall be pending or threatened by the SEC. 
  

	 	7.	CONDITIONS TO THE BUYER’S OBLIGATION TO MAKE PURCHASES OF SHARES OF COMMON STOCK. 

The obligation of the Buyer to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following conditions on
or before the Commencement Date (the date that the Company may begin sales of Purchase Shares) and once such conditions have been initially satisfied, there shall not be any ongoing obligation to satisfy such conditions after the Commencement has
occurred: 
 (a) The Company shall have executed each of the Transaction Documents and delivered the same to the Buyer; 

  
 -13- 

 (b) The Company shall have issued to the Buyer the Commitment Shares and, in the event that the
Buyer shall have surrendered the originally issued certificate(s), shall have removed the restrictive transfer legend from the certificate representing the Commitment Shares; 

(c) The Common Stock shall be authorized for quotation on the Principal Market, trading in the Common Stock shall not have been within the last
365 days suspended by the SEC or the Principal Market, other than a general halt in trading in the Common Stock by the Principal Market under halt codes indicating pending or released material news, and the Securities shall be approved for listing
upon the Principal Market; 
 (d) The Buyer shall have received the opinion of the Company’s legal counsel dated as of the Commencement
Date in customary form and substance; 
 (e) The representations and warranties of the Company shall be true and correct in all material
respects (except to the extent that any of such representations and warranties is already qualified as to materiality in Section 3 above, in which case, such representations and warranties shall be true and correct without further
qualification) as of the date of this Agreement and as of the Commencement Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct in all material respects as of
such specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company
at or prior to the Commencement Date. The Buyer shall have received a certificate, executed by the CEO, President or CFO of the Company, dated as of the Commencement Date, to the foregoing effect in the form attached hereto as Exhibit A; 

(f) The Board of Directors of the Company or a duly authorized committee thereof shall have adopted resolutions substantially in the form
attached hereto as Exhibit B-1, which shall be in full force and effect without any amendment or supplement thereto as of the Commencement Date; 

(g) As of the Commencement Date, the Company shall have reserved out of its authorized and unissued Common Stock, solely for the purpose of
effecting future purchases of Purchase Shares hereunder, 10,000,000 shares of Common Stock; 
 (h) The Irrevocable Transfer Agent
Instructions, in form acceptable to the Buyer shall have been signed by the Company and the Buyer and have been delivered to the Transfer Agent; 

(i) The Company shall have delivered to the Buyer a certificate evidencing the incorporation and good standing of the Company in the State of
Delaware issued by the Secretary of State of the State of Delaware as of a date within ten (10) Business Days of the Commencement Date; 

(j) [Intentionally Omitted.] 
 (k)
The Company shall have delivered to the Buyer a secretary’s certificate executed by the Secretary of the Company, dated as of the Commencement Date, in the form attached hereto as Exhibit C; 

  
 -14- 

 (l) A registration statement covering the sale of (i) all of the Commitment Shares and
(ii) such number of additional Purchase Shares as reasonably determined by the Company shall have been declared effective under the 1933 Act by the SEC and no stop order with respect thereto shall be pending or threatened by the SEC. The
Company shall have prepared and delivered to the Buyer a final and complete form of prospectus, dated and current as of the Commencement Date, to be used by the Buyer in connection with any sales of any Securities, and to be filed by the Company one
(1) Business Day after the Commencement Date pursuant to Rule 424(b). The Company shall have made all filings under all applicable federal and state securities laws necessary to consummate the issuance of the Commitment Shares and the Purchase
Shares pursuant to this Agreement in compliance with such laws; 
 (m) No Event of Default has occurred and is continuing, or any event
which, after notice and/or lapse of time, would become an Event of Default has occurred; 
 (n) On or prior to the Commencement Date, the
Company shall take all necessary action, if any, and such actions as reasonably requested by the Buyer, in order to render inapplicable any control share acquisition, business combination, stockholder rights plan or poison pill (including any
distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation or the laws of the state of its incorporation, other than Section 203 of the Delaware General Corporation Law, that is or
could become applicable to the Buyer as a result of the transactions contemplated by this Agreement, including, without limitation, the Company’s issuance of the Securities and the Buyer’s ownership of the Securities; and 

(o) The Company shall have provided the Buyer with the information reasonably requested by the Buyer in connection with its due diligence
requests made prior to, or in connection with, the Commencement, in accordance with the terms of Section 4(f) hereof. 
  

	 	8.	INDEMNIFICATION. 

 In consideration of the Buyer’s execution and delivery of the
Transaction Documents and acquiring the Securities hereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless the Buyer and all of its
affiliates, members, officers, directors, and employees, and any of the foregoing person’s agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement)
(collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such
Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or
arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any
breach of any covenant, agreement or obligation of the Company contained in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or made
against such Indemnitee and arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, other than with respect to
Indemnified Liabilities which directly and primarily result from (A) a breach of any of the Buyer’s representations and warranties, covenants or agreements contained in this Agreement, or (B) the gross negligence, bad faith or willful
misconduct of the Buyer or any other Indemnitee. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the
Indemnified Liabilities which is permissible under applicable law. 

  
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	 	9.	EVENTS OF DEFAULT. 

 An “Event of Default” shall be deemed to have
occurred at any time as any of the following events occurs: 
 (a) while any registration statement is required to be maintained effective
pursuant to the terms of the Registration Rights Agreement, the effectiveness of such registration statement lapses for any reason (including, without limitation, the issuance of a stop order) or is unavailable to the Buyer for the sale of all of
the Registrable Securities (as defined in the Registration Rights Agreement), and such lapse or unavailability continues for a period of ten (10) consecutive Business Days or for more than an aggregate of thirty (30) Business Days in any 365-day period, which is not in connection with a Permitted Delay (as defined in the Registration Rights Agreement), post-effective amendment to any such registration statement or the filing of a new registration
statement; provided, however, that in connection with any post-effective amendment to such registration statement or filing of a new registration statement that is required to be declared effective by the SEC, such lapse or unavailability may
continue for a period of no more than thirty (30) consecutive Business Days, which such period shall be extended for up to an additional thirty (30) Business Days if the Company receives a comment letter from the SEC in connection
therewith; 
 (b) the suspension from trading or failure of the Common Stock to be listed on a Principal Market for a period of three
(3) consecutive Business Days; 
 (c) the delisting of the Common Stock from the Principal Market, and the Common Stock is not
immediately thereafter trading on the New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the OTC Bulletin Board or the OTCQB marketplace or OTCQX marketplace of the OTC
Markets Group; 
 (d) the failure for any reason by the Transfer Agent to issue Purchase Shares to the Buyer within five (5) Business
Days after the applicable Purchase Date that the Buyer is entitled to receive; 
 (e) the Company’s breach of any representation or
warranty (as of the dates made), covenant or other term or condition under any Transaction Document if such breach could reasonably be expected to have a Material Adverse Effect and except, in the case of a breach of a covenant which is reasonably
curable, only if such breach continues uncured for a period of at least five (5) Business Days; 
 (f) if any Person commences a
proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law; 
 (g) if the Company pursuant to or within the
meaning of any Bankruptcy Law; (A) commences a voluntary case, (B) consents to the entry of an order for relief against it in an involuntary case, (C) consents to the appointment of a Custodian of it or for all or substantially all of
its property, (D) makes a general assignment for the benefit of its creditors or (E) becomes insolvent; 

  
 -16- 

 (h) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that
(A) is for relief against the Company in an involuntary case, (B) appoints a Custodian of the Company or for all or substantially all of its property, or (C) orders the liquidation of the Company or any Subsidiary; or 

(i) if at any time after the Commencement Date, the Exchange Cap is reached unless and until stockholder approval is obtained pursuant to
Section 1(h) hereof. The Exchange Cap shall be deemed to be reached at such time if, upon submission of a Purchase Notice or VWAP Purchase Notice under this Agreement, the issuance of such shares of Common Stock would exceed that number of shares of
Common Stock which the Company may issue under this Agreement without breaching the Company’s obligations under the rules or regulations of the Principal Market. 

In addition to any other rights and remedies under applicable law and this Agreement, including the Buyer termination rights under Section 11(k) hereof, so
long as an Event of Default has occurred and is continuing, or if any event which, after notice and/or lapse of time, would become an Event of Default, has occurred and is continuing, or so long as the Closing Sale Price is below the Floor Price,
the Company may not require and the Buyer shall not be obligated or permitted to purchase any shares of Common Stock under this Agreement. If pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any
Person commences a proceeding against the Company, a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a general assignment for the benefit of its creditors, (any of which would be an Event
of Default as described in Sections 9(f), 9(g) and 9(h) hereof) this Agreement shall automatically terminate without any liability or payment to the Company without further action or notice by any Person. No such termination of this Agreement
under Section 11(k)(i) shall affect the Company’s or the Buyer’s obligations under this Agreement with respect to pending purchases and the Company and the Buyer shall complete their respective obligations with respect to any pending
purchases under this Agreement. 
  

	 	10.	CERTAIN DEFINED TERMS. 

 For purposes of this Agreement, the following terms shall have
the following meanings: 
 (a) “1933 Act” means the Securities Act of 1933, as amended. 

(b) “Available Amount” means initially Seventeen Million Dollars ($17,000,000) in the aggregate which amount shall be reduced
by the Purchase Amount each time the Buyer purchases shares of Common Stock pursuant to Section 1 hereof. 
 (c) “Bankruptcy
Law” means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors. 
 (d) “Business
Day” means any day on which the Principal Market is open for trading during normal trading hours (i.e., 9:30 a.m. to 4:00 p.m. Eastern Time), including any day on which the Principal Market is open for trading for a period of time less than
the customary time. 
 (e) “Closing Sale Price” means the last closing trade price for the Common Stock on the Principal
Market as reported by the Principal Market. 

  
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 (f) “Confidential Information” means any information disclosed by either party
to the other party, either directly or indirectly, in writing, orally or by inspection of tangible objects (including, without limitation, documents, prototypes, samples, plant and equipment), which is designated as “Confidential,”
“Proprietary” or some similar designation. Information communicated orally shall be considered Confidential Information if such information is expressly identified as Confidential Information at the time of such initial disclosure and
confirmed in writing as being Confidential Information within ten (10) Business Days after the initial disclosure. Confidential Information may also include information disclosed to a disclosing party by third parties. Confidential Information
shall not, however, include any information which (i) was publicly known and made generally available in the public domain prior to the time of disclosure by the disclosing party; (ii) becomes publicly known and made generally available
after disclosure by the disclosing party to the receiving party through no action or inaction of the receiving party; (iii) is already in the possession of the receiving party at the time of disclosure by the disclosing party as shown by the
receiving party’s files and records immediately prior to the time of disclosure; (iv) is obtained by the receiving party from a third party without a breach of such third party’s obligations of confidentiality; (v) is
independently developed by the receiving party without use of or reference to the disclosing party’s Confidential Information, as shown by documents and other competent evidence in the receiving party’s possession; or (vi) is required
by law to be disclosed by the receiving party, provided that the receiving party gives the disclosing party prompt written notice of such requirement prior to such disclosure and assistance in obtaining an order protecting the information from
public disclosure. 
 (g) “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law. 
 (h) “Maturity Date” means the date that is thirty (30) months from the Commencement Date. 

(i) “Person” means an individual or entity including any limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 
 (j) “Principal
Market” means the Nasdaq Capital Market; provided however, that in the event the Company’s Common Stock is ever listed or traded on the New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market,
Nasdaq Capital Market, the OTC Bulletin Board or either of the OTCQB marketplace or the OTCQX marketplace of the OTC Markets Group, then the “Principal Market” shall mean such other market or exchange on which the Company’s Common
Stock is then listed or traded. 
 (k) “Purchase Amount” means, with respect to any particular purchase made hereunder, the
portion of the Available Amount to be purchased by the Buyer pursuant to Section 1 hereof as set forth in a valid Purchase Notice or VWAP Purchase Notice which the Company delivers to the Buyer. 

(l) “Purchase Date” means with respect to any Regular Purchase made hereunder, the Business Day of receipt by the Buyer of a
valid Purchase Notice that the Buyer is to buy Purchase Shares pursuant to Section 1(b) hereof. 

  
 -18- 

 (m) “Purchase Notice” shall mean an irrevocable written notice from the Company
to the Buyer directing the Buyer to buy Purchase Shares pursuant to Section 1(b) hereof as specified by the Company therein at the applicable Purchase Price on the Purchase Date. 

(n) “Purchase Price” means the lesser of (i) the lowest Sale Price of the Common Stock on the Purchase Date or
(ii) the arithmetic average of the three (3) lowest Closing Sale Prices for the Common Stock during the ten (10) consecutive Business Days ending on the Business Day immediately preceding such Purchase Date (to be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction). 

(o) “Sale Price” means any trade price for the shares of Common Stock on the Principal Market during normal trading hours, as
reported by the Principal Market. 
 (p) “SEC” means the U.S. Securities and Exchange Commission. 

(q) “Transfer Agent” means the transfer agent of the Company as set forth in Section 11(f) hereof or such other person who is
then serving as the transfer agent for the Company in respect of the Common Stock. 
 (r) “VWAP Minimum Price Threshold”
means, with respect to any particular VWAP Purchase Notice, the Sale Price on the VWAP Purchase Date equal to the greater of (i) 80% of the Closing Sale Price on the Business Day immediately preceding the VWAP Purchase Date or (ii) such higher
price as set forth by the Company in the VWAP Purchase Notice. 
 (s) “VWAP Purchase Amount” means, with respect to any
particular VWAP Purchase Notice, the portion of the Available Amount to be purchased by the Buyer pursuant to Section 1(c) hereof pursuant to a valid VWAP Purchase Notice which requires the Buyer to buy the VWAP Purchase Share Percentage of the
aggregate shares traded on the Principal Market during normal trading hours on the VWAP Purchase Date up to the VWAP Purchase Share Volume Maximum, subject to the VWAP Minimum Price Threshold. 

(t) “VWAP Purchase Date” means, with respect to any VWAP Purchase made hereunder, the Business Day following the
receipt by the Buyer of a valid VWAP Purchase Notice that the Buyer is to buy Purchase Shares pursuant to Section 1(c) hereof. 
 (u)
“VWAP Purchase Notice” shall mean an irrevocable written notice from the Company to the Buyer directing the Buyer to buy Purchase Shares on the VWAP Purchase Date pursuant to Section 1(c) hereof as specified by the Company therein
at the applicable VWAP Purchase Price with the applicable VWAP Purchase Share Percentage specified therein. 
 (v) “VWAP Purchase
Share Percentage” means, with respect to any particular VWAP Purchase Notice pursuant to Section 1(c) hereof, the percentage set forth in the VWAP Purchase Notice which the Buyer will be required to buy as a specified percentage of the
aggregate shares traded on the Principal Market during normal trading hours up to the VWAP Purchase Share Volume Maximum on the VWAP Purchase Date subject to Section 1(c) hereof but in no event shall this percentage exceed thirty percent (30%) of
such VWAP Purchase Date’s share trading volume of the Common Stock on the Principal Market during normal trading hours. 

  
 -19- 

 (w) “VWAP Purchase Price” means the lesser of (i) the Closing Sale Price on
the VWAP Purchase Date; or (ii) ninety-seven percent (97%) of volume weighted average price for the Common Stock traded on the Principal Market during normal trading hours on (A) the VWAP Purchase Date if the aggregate shares traded on the
Principal Market on the VWAP Purchase Date have not exceeded the VWAP Purchase Share Volume Maximum and the Sale Price of Common Stock has not fallen below the VWAP Minimum Price Threshold (to be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction), or (B) the portion of the VWAP Purchase Date until such time as the sooner to occur of (1) the
time at which the aggregate shares traded on the Principal Market has exceeded the VWAP Purchase Share Volume Maximum, or (2) the time at which the Sale Price of Common Stock falls below the VWAP Minimum Price Threshold (to be appropriately
adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction). 

(x) “VWAP Purchase Share Estimate” means the number of shares of Common Stock that the Company has in its sole discretion
irrevocably instructed its Transfer Agent to issue to the Buyer via the Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program in connection with a VWAP Purchase Notice pursuant to Section 1(c) hereof and issued
to the Buyer’s or its designee’s balance account with DTC through its Deposit Withdrawal At Custodian (DWAC) system on the VWAP Purchase Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction). 
 (y) “VWAP
Purchase Share Volume Maximum” means a number of shares of Common Stock traded on the Principal Market during normal trading hours on the VWAP Purchase Date equal to: (i) the VWAP Purchase Share Estimate, divided by (ii) the VWAP
Purchase Share Percentage (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction). 

 

	 	11.	MISCELLANEOUS. 

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

  
 -20- 

 (b) Counterparts. This Agreement may be executed in two or more identical counterparts,
all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile or pdf (or other electronic reproduction) signature
shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile or PDF (or other electronic reproduction) signature. 

(c) Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. 
 (d) Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction,
such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. 

(e) Entire Agreement. This Agreement and the Registration Rights Agreement supersede all other prior oral or written agreements between
the Buyer, the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement, the other Transaction Documents and the instruments referenced herein contain the entire understanding of
the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.
The Company acknowledges and agrees that is has not relied on, in any manner whatsoever, any representations or statements, written or oral, other than as expressly set forth in this Agreement. The Buyer and the Company agree that that certain
Common Stock Purchase Agreement, dated as of July 24, 2015, as amended, by and between the Company and the Buyer is hereby terminated as of the date hereof. 

(f) Notices. Any notices, consents or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending party); (iii) upon receipt, when sent by electronic message (provided the recipient responds to the message and confirmation of both electronic messages are kept on file by the sending party); or (iv) one (1) Business Day
after timely deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be: 

If to the Company: 
  

			
	Capnia, Inc.	  	
	1235 Radio Road	  	
	Suite 110	  	
	Redwood City, CA 94065
	Telephone:	  	650-213-8444
	Facsimile:	  	650-213-8383
	Attention:	  	Anish Bhatnagar
	Email:	  	anish@capnia.com

  
 -21- 

 
			
	With a copy (which shall not constitute notice) to:
	
	 Wilson Sonsini Goodrich & Rosati Professional Corporation

	 650 Page Mill Road

	 Palo Alto, CA 94304

	 Telephone:
	  	650-565-3588
	 Facsimile:
	  	650-493-6811
	 Attention:
	  	Elton Satusky
	 Email:
	  	esatusky@wsgr.com
	
	If to the Buyer:
	
	 Aspire Capital Fund, LLC

	 155 North Wacker Drive, Suite 1600

	 Chicago, IL 60606

	 Telephone:
	  	312-658-0400
	 Facsimile:
	  	312-658-4005
	 Attention:
	  	Steven G. Martin
	 Email:
	  	smartin@aspirecapital.com
	
	With a copy to (which shall not constitute delivery to the Buyer):
	
	 Morrison & Foerster LLP

	 2000 Pennsylvania Avenue, NW, Suite 6000

	 Washington, DC 20006

	 Telephone:
	  	202-778-1611
	 Facsimile:
	  	202-887-0763
	 Attention:
	  	Martin P. Dunn, Esq.
	 Email:
	  	mdunn@mofo.com
	
	If to the Transfer Agent:
	
	 American Stock Transfer & Trust Company, LLC

	 6201 15th Avenue

	 Brooklyn, New York 11219

	 Telephone:
	  	415-835-1313
	 Facsimile:
	  	415-433-5994
	 Attention:
	  	Joshua P. McGinn
	 Email:
	  	jmcginn@amstock.com

 or at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has
specified by written notice given to each other party at least one (1) Business Day prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of 

  
 -22- 

 
such notice, consent or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, and recipient facsimile number,
(C) electronically generated by the sender’s electronic mail containing the time, date and recipient email address or (D) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of receipt in
accordance with clause (i), (ii), (iii) or (iv) above, respectively. 
 (g) Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties and their respective successors and assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Buyer, including by merger
or consolidation; provided, however, that any transaction, whether by merger, reorganization, restructuring, consolidation, financing or otherwise, whereby the Company remains the surviving entity immediately after such transaction shall not be
deemed a succession or assignment. The Buyer may not assign its rights or obligations under this Agreement. 
 (h) No Third Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person. 

(i) Publicity. The Buyer shall have the right to approve before issuance any press release, SEC filing or any other public disclosure
made by or on behalf of the Company whatsoever with respect to, in any manner, the Buyer, its purchases hereunder or any aspect of this Agreement or the transactions contemplated hereby; provided, however, that the Company shall be entitled, without
the prior approval of the Buyer, to make any press release or other public disclosure (including any filings with the SEC) with respect to such transactions as is required by applicable law and regulations so long as the Company and its counsel
consult with the Buyer in connection with any such press release or other public disclosure at least two (2) Business Days prior to its release; provided, however, that the Company’s obligations pursuant to this Section 11(i) shall not
apply if the material provisions of such press release, SEC filing, or other public disclosure previously has been publicly disclosed by the Company in accordance with this Section 11(i). The Buyer must be provided with a copy thereof at least one
(1) Business Day prior to any release or use by the Company thereof.  
 (j) Further Assurances. Each party shall do and
perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 
 (k) Termination.
This Agreement may be terminated only as follows: 
 (i) By the Buyer any time an Event of Default exists without any
liability or payment to the Company. However, if pursuant to or within the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against the Company, a Custodian is appointed for the Company or
for all or substantially all of its property, or the Company makes a general assignment for the benefit of its creditors, (any of which would be an Event of Default as described in Sections 9(f), 9(g) and 9(h) hereof) this Agreement shall
automatically terminate without any liability or payment to the Company without further action or notice by any Person. No such termination of this Agreement under this Section 11(k)(i) shall affect the Company’s or the Buyer’s obligations
under this Agreement with respect to pending purchases and the Company and the Buyer shall complete their respective obligations with respect to any pending purchases under this Agreement. 

  
 -23- 

 (ii) In the event that the Commencement shall not have occurred the Company shall
have the option to terminate this Agreement for any reason or for no reason without any liability whatsoever of either party to the other party under this Agreement except as set forth in Section 11(k)(viii) hereof. 

(iii) In the event that the Commencement shall not have occurred on or before June 30, 2017, due to the failure to satisfy
any of the conditions set forth in Sections 6 and 7 above with respect to the Commencement, either party shall have the option to terminate this Agreement at the close of business on such date or thereafter without liability of either party to any
other party; provided, however, that the right to terminate this Agreement under this Section 11(k)(iii) shall not be available to either party if such failure to satisfy any of the conditions set forth in Sections 6 and 7 is the result of a breach
of this Agreement by such party or the failure of any representation or warranty of such party included in this Agreement to be true and correct in all material respects. 

(iv) At any time after the Commencement Date, the Company shall have the option to terminate this Agreement for any reason or
for no reason by delivering notice (a “Company Termination Notice”) to the Buyer electing to terminate this Agreement without any liability whatsoever of either party to the other party under this Agreement except as set forth in
Section 11(k)(viii) hereof. The Company Termination Notice shall not be effective until one (1) Business Day after it has been received by the Buyer. 

(v) This Agreement shall automatically terminate on the date that the Company sells and the Buyer purchases the full Available
Amount as provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party to any other party under this Agreement except as set forth in Section 11(k)(viii) hereof. 

(vi) If by the Maturity Date for any reason or for no reason the full Available Amount under this Agreement has not been
purchased as provided for in Section 1 of this Agreement, this Agreement shall automatically terminate on the Maturity Date, without any action or notice on the part of any party and without any liability whatsoever of any party to any other
party under this Agreement except as set forth in Section 11(k)(viii) hereof. 
 (vii) Except as set forth in Sections
11(k)(i) (in respect of an Event of Default under Sections 9(f), 9(g) and 9(h)), 11(k)(v) and 11(k)(vi), any termination of this Agreement pursuant to this Section 11(k) shall be effected by written notice from the Company to the Buyer, or the Buyer
to the Company, as the case may be, setting forth the basis for the termination hereof. 
 (viii) The representations and
warranties of the Company and the Buyer contained in Sections 2, 3 and 5 hereof, the indemnification provisions set forth in Section 8 hereof and the agreements and covenants set forth in Sections 4(e), 4(g) and 11, shall survive the
Commencement and any termination of this Agreement. No termination of this Agreement shall affect the Company’s or the Buyer’s rights or obligations (A) under the Registration Rights Agreement, which shall survive any such termination
in accordance with its terms, or (B) under this Agreement with respect to pending purchases and the Company and the Buyer shall complete their respective obligations with respect to any pending purchases under this Agreement. 

  
 -24- 

 (l) No Financial Advisor, Placement Agent, Broker or Finder. The Company represents and
warrants to the Buyer that it has not engaged any financial advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. The Buyer represents and warrants to the Company that it has not engaged any financial
advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. Each party shall be responsible for the payment of any fees or commissions, if any, of any financial advisor, placement agent, broker or finder
engaged by such party relating to or arising out of the transactions contemplated hereby. Each party shall pay, and hold the other party harmless against, any liability, loss or expense (including, without limitation, attorneys’ fees and out of
pocket expenses) arising in connection with any such claim. 
 (m) No Strict Construction. The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 

(n) Failure or Indulgence Not Waiver. No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 

*     *     *     *     * 

  
 -25- 

 IN WITNESS WHEREOF, the Buyer and the Company have caused this Common Stock Purchase
Agreement to be duly executed as of the date first written above. 
  

			
	THE COMPANY:
	
	CAPNIA, INC.
		
	By:	 	 /s/ Anish Bhatnagar

	Name:	 	Anish Bhatnagar
	Title:	 	Chief Executive Officer
	
	BUYER:
	
	ASPIRE CAPITAL FUND, LLC
	BY: ASPIRE CAPITAL PARTNERS, LLC
	BY: SGM HOLDINGS CORP.
		
	By:	 	 /s/ Steven G. Martin

	Name:	 	Steven G. Martin
	Title:	 	President

  

  
 -26- 

 SCHEDULES 
  

			
	Schedule 3(a)	  	Subsidiaries
	Schedule 3(c)	  	Capitalization
	Schedule 3(e)	  	Conflicts
	Schedule 3(f)	  	1934 Act Filings
	Schedule 3(g)	  	Material Changes
	Schedule 3(h)	  	Litigation
	Schedule 3(j)	  	Intellectual Property
	Schedule 3(l)	  	Title
	Schedule 3(n)	  	Regulatory Permits
	Schedule 3(p)	  	Transactions with Affiliates

 EXHIBITS 
  

			
	Exhibit A	  	Form of Officer’s Certificate
	Exhibit B	  	Form of Resolutions of Board of Directors of the Company
	Exhibit C	  	Form of Secretary’s Certificate
	Exhibit D	  	Form of Letter to Transfer Agent

 DISCLOSURE SCHEDULES 

[Intentionally Omitted] 

 EXHIBIT A 

FORM OF OFFICER’S CERTIFICATE 

[Intentionally Omitted] 

 EXHIBIT B-1 

FORM OF COMPANY RESOLUTIONS 

FOR SIGNING PURCHASE AGREEMENT 

[Intentionally Omitted] 

 EXHIBIT B-2 

FORM OF COMPANY RESOLUTIONS APPROVING REGISTRATION STATEMENT 

[Intentionally Omitted] 

 EXHIBIT C 

FORM OF SECRETARY’S CERTIFICATE 

[Intentionally Omitted] 

 EXHIBIT D 

[Intentionally Omitted]MEMBERSHIP INTEREST PURCHASE AGREEMENT

This MEMBERSHIP INTEREST PURCHASE AGREEMENT ("Agreement") dated as of this ____ day of January, 2017 ("Effective Date"), is entered into by and among Corporate Center Sunset, LLC, a Delaware limited liability company (the "Buyer"), DT GRAT CS, LLC, a Nevada limited liability company ("Seller"), Stable Properties CC, LLC, a Nevada limited liability company (the "Company"), and  Par 3 Nevada, LLC a Nevada limited liability company ("Par 3") (collectively Seller, Buyer, Par 3, and the Company are the "Parties").

W I T N E S S E T H:

WHEREAS, Seller owns 87.5% of the membership interests of the Company (the "Seller Membership Interests"). Par 3 owns the remaining 12.5% of the membership interests of the Company and will remain a member of the Company.

WHEREAS, Company is the 100% owner of all membership interests in and to each Building Owner (defined below) (each being a "Building Owner Membership Interest", collectively the "Building Owner Membership Interests"):

i. CC Building I LLC, a Delaware limited liability company ("Building I"), which owns an undivided fee simple interest in approximately 3.18 acres of improved real property located at 8880 West Sunset Road, Las Vegas, Nevada, and bearing Assessor Parcel Number 163-32-810-002, as more particularly described on Exhibit "A-1".

ii. CC Building II LLC, a Delaware limited liability company ("Building II") which owns that certain real property located at 8860 W. Sunset Road, Las Vegas, Nevada 89148, bearing Assessor Parcel Number 163-32-810-003 as more particularly described on Exhibit "A-2".

iii. CC Building III LLC, a Delaware limited liability company ("Building III") which owns that certain real property located at 8930 W. Sunset Road, Las Vegas, Nevada 89148, bearing Assessor Parcel Number 163-32-810-004 as more particularly described on Exhibit "A-3".

iv. CC Building IV LLC, a Delaware limited liability company ("Building IV") which owns that certain real property located at 8945 W. Post Road, Las Vegas, Nevada 89148, bearing Assessor Parcel Number 163-32-810-005 as more particularly described on Exhibit "A-4".

v. CC Building V LLC, a Delaware limited liability company ("Building V") which owns that certain real property located at 8905 W. Post Road, Las Vegas, Nevada 89148, bearing Assessor Parcel Number 163-32-810-006 as more particularly described on Exhibit "A-5".

vi. CC Building VI LLC, a Delaware limited liability company ("Building VI") which owns that certain real property located at 8925 W. Post Road, Las Vegas, Nevada 89148, bearing Assessor Parcel Number 163-32-810-007 as more particularly described on Exhibit "A-6".

(Collectively Building I, Building II, Building III, Building IV, Building V, and Building VI is the "Building Owner" and the real property owned by each Building Owner is collectively the "Property")

WHEREAS, Buyer's related and affiliated entities ("Prior Owner") were the immediate prior owners of the Property currently held by the Building Owner, which prior purchase and sale agreements included a "Repurchase Option" whereby Prior Owner holds the right to repurchase the Property from Building Owner as provided therein.

 WHEREAS, by separate agreement among the parties attached hereto as Exhibit B, the Prior Owners waived and relinquished its Repurchase Option right subject to the execution of this Agreement between the Parties hereto.

WHEREAS, Seller desires to sell, transfer and convey the Seller Membership Interests and/or Building Owner Membership Interests, as applicable, to Buyer, and Buyer desires to accept such sale, transfer and conveyance, upon and subject to the terms and conditions set forth in this Agreement.

WHEREAS, this Agreement sets forth the terms and conditions to which the Parties have agreed.

NOW, THEREFORE, in consideration of the premises and the mutual covenants, agreements, representations and warranties herein contained, the Parties, intending to be legally bound hereby, agree as follows:

ARTICLE I

Purchase and Sale of the Seller Membership Interests

1.1 Purchase and Sale.  On and subject to the terms and conditions of this Agreement, at the Closing (as defined below), the Buyer shall purchase, as applicable, from: (i) the Seller and the Seller shall sell, transfer and assign, convey and deliver to the Buyer, the Seller Membership Interests and/or (ii) the Company and the Company shall sell, transfer and assign, convey and deliver to the Buyer, the Building Owner Membership Interests, free and clear of all liens, pledges, claims, security interests, encumbrances, or charges (collectively the "Interest Liens") excluding therefrom at all times the terms, conditions, restrictions and provisions of the operating agreement of the Company and Building Owner, as applicable, which Company operating agreement is attached hereto as Exhibit E. From and after the Company Closing Date and Building Closing Date, as applicable, Buyer shall assume and perform thereafter all the obligations with respect to the Seller Membership Interests and Building Owner Membership Interests, as applicable, being transferred at the Closing to Buyer; except for any federal and state tax obligations arising from and directly related to the ownership of the Seller Membership Interests prior to the Closing, which shall be the responsibility of Seller and, to the extent any Building Owner Membership Interest is purchased in accordance with this Agreement, any federal and state tax obligations arising from and directly related to the ownership of the Building Owner Membership Interests prior to the Closing, which shall be the responsibility of Company.

1.2 Purchase Price, Prorations and Adjustments and Deposit.

(a) Purchase Price.

(i) On the terms and subject to the conditions of this Agreement, the purchase price for the Seller Membership Interests which shall be paid by Buyer to Seller at Closing shall be $14,741,070.00 (the "Purchase Price") subject to the following adjustments as applicable: (i) Section 1.2(a)(ii), (ii) Section 1.2(b)(i), (iii) Section 1.2(c), (iv) Section 2.3, (v) Section 6.2(b) and (vi) as otherwise provided in this Agreement.

At Closing the Purchase Price shall be paid by Buyer to Seller and the Seller Membership Interests owned by Seller in Company shall be assigned and conveyed to Buyer.

(ii) If Buyer elects to purchase any Building Owner Membership Interest from Seller in accordance with this Agreement then Buyer shall pay to Company at the Closing of each Building Owner Membership Interest that portion of the Purchase Price, in accordance with Article XI, subject to (i) Section 1.2(b)(ii), (ii) Section 1.2(c), Section 2.3, (iii) Section 6.2(b) and (iv)(as otherwise provided in this Agreement.   Upon payment of the Purchase Price through any permitted combination of Building Owner membership Interest, Seller shall immediately transfer to Buyer the Seller Membership Interest.

At Closing, that portion of the Purchase Price, in accordance with Article XI, shall be paid by Buyer to Company and the particular Building Owner Membership Interest owned by Company shall be assigned and conveyed to Buyer.

(b) Prorations and Adjustments.

	
(i)

	
Prorations and Adjustments for Seller Membership Interests.  In the event Buyer purchases the Seller Membership Interests, then the Purchase Price shall be increased by (i) an amount equal to all capital contributions to the Company which have been paid or made (or deemed paid or made), at any time after the Effective Date, by Seller at or prior to the Company Closing Date, (ii) any tenant improvement costs or expenses or broker fees/commissions paid (including without limitation in accordance with Section 6.2(b)) and (iii) any accrued and unpaid preferred return which is the amount equal to 8% compounded monthly on any capital contributions to the Company.  As of December 31, 2016, Seller's accrued and unpaid preferred return to be paid at the Company Closing Date is $34,235.07 and the preferred return equal to 8% compounded monthly on any capital contributions to the Company shall accrue on the amount of $14,297,422.90 plus any additional capital contributions made to the Company in accordance with (i) above.    Buyer acknowledges that distributions of cash flow derived from the Property will be made during the pendency of this Agreement which shall not be credited or debited against the Purchase Price.

	
(ii)

	
Prorations and Adjustments for Building Owner Membership Interest(s).  In the event Buyer elects a Partial Sale of Building Owner Membership Interest(s), then the portion of the Purchase Price to be paid at Closing shall be increased (i) by an amount equal to all capital contributions to the Company which have been paid or made (or deemed paid or made), at any time after the Effective Date, by Seller at or prior to the Building Closing Date, (ii) any tenant improvement costs or expenses or broker fees/commissions paid (including without limitation in accordance with Section 6.2(b)) and (iii) any accrued and unpaid preferred return which is the amount equal to 8% compounded monthly on any capital contributions to the Company.  As of December 31, 2016, Seller's accrued and unpaid preferred return to be paid at the Company Closing Date is $34,235.07 and the preferred return equal to 8% compounded monthly on any capital contributions to the Company shall accrue on the amount of $14,297,422.90 plus any additional capital contributions made to the Company in accordance with (i) above.  Buyer acknowledges that distributions of cash flow derived from the Property will be made during the pendency of this Agreement which shall not be credited or debited against the Purchase Price.  Upon Closing the acquisition of any Building Owner, Buyer shall receive all distributions and cash flow derived from the acquired Building Owner's Property.

(c) Deposit.  Within 3-days of the execution of this Agreement, Buyer shall deposit with Escrow Agent cash in the amount of $50,000.00 (the "Deposit") and the Deposit shall be applied to the Purchase Price at Closing.  The Deposit shall be returned to Buyer, if Buyer terminates this Agreement in accordance with Section 8.4 hereof.

1.3 Non-Refundable Payment.  Provided this Agreement has not been previously cancelled by Buyer, no later than the earlier of (i) the purchase of any Building Owner Membership Interest or Seller Membership Interests in accordance with this Agreement or (ii) January 28, 2017, Buyer shall pay to Seller, through Escrow which shall be immediately disbursed to Seller, the sum of $2,000,000.00 (the "Non-Refundable Payment"). Upon Seller's receipt of the Non-Refundable Payment, the Purchase Price shall be reduced to $12,741,070.00.  The Non-Refundable Payment shall be non-refundable by Seller to Buyer for all purposes including without limitation Buyer's failure to close on any or all of the Seller Membership Interests and/or Building Owner Membership Interest(s), as applicable, for any reason whatsoever.

So long as such document and recording does not violate, in any manner, any existing loan agreement related to the Property, upon Buyer's payment of the Non-Refundable Payment, Buyer may record a memorandum of this Agreement or a notice of its right to acquire the Property.

ARTICLE II

Closing

2.1   Closing.  The closing of the transactions provided for in this Agreement (the "Closing") shall take place as set forth below:

(a) Seller Membership Interests.  The Closing for the Seller Membership Interests shall occur at noon Pacific Time on the Company Closing Date at the offices of Lawyer's Title, 1401 N. Green Valley Parkway, Suite 100, Henderson, NV 89074, Attention Debbie Novotny ("Escrow Agent") with all deliveries to be made in escrow to the Escrow Agent on or prior to the Company Closing Date without the requirement for personal appearance by any representative of Building Owner, Seller or Company.  Subject to the extension provided below and 2.1(b), the Closing of the Seller Membership Interests shall occur no later than January 28, 2018 (unless extended pursuant to Section 10.10), or such other date as the parties may mutually determine (the "Company Closing Date").  Should Buyer wish to close on the Seller's Membership Interests prior to the Company Closing Date, Buyer must provide a minimum of thirty (30) Business Day written notice to Seller of the earlier Company Closing Date.

Buyer shall have the one time unilateral option to extend the Closing Date by ten (10) Business Days upon giving Seller at least three (3) business day advance written notice.  If Buyer shall fail to close the transaction contemplated by this Agreement on or before the Company Closing Date then it shall have no further rights to purchase the Seller Membership Interest or Building Owner Membership Interest and Seller shall retain the Deposit and Non-Refundable Payment.

(b) Building Owner Membership Interest.  If Buyer desires to exercise its right to purchase any Building Owner Membership Interest then Buyer shall provide such notice as required by Article XI and the Closing for the Building Owner Membership Interest shall occur no later than noon Pacific Time on the Building Closing Date (as defined below) at the offices of Escrow Agent with all deliveries to be made in escrow to the Escrow Agent on or prior to the Building Closing Date without the requirement for a personal appearance by any representative of Building Owner, Seller or Company.

2.2   Termination of Property Manager. Seller shall cause the Company to cause Building Owner to terminate Sun Management, or the property manager then serving as the property manager of the Property as of the Company Closing Date for the Seller's Membership Interests.  In the event of an election to purchase any Building Owner Membership Interest from Company in accordance with this Agreement the Seller shall only be obligated to cause the Company to cause the Building Owner of that particular Property to terminate Sun Management, or the property manager then serving as the property manager of the Property owned by that particular Building Owner as of the Building Closing Date for the Building Owner Membership Interest. If the Buyer fails to provide a minimum of thirty (30) Business Days notice to Seller of the earlier Company Closing Date or Building Closing Date, then Buyer shall be liable to pay the prorated management fee (set at the then current rate) to Sun Management, or the property manager then serving as the property manager of the Property (set at the then current rate) as of the Company Closing Date and/or Building Closing Date.  At Closing, Buyer shall be provided with evidence that Sun Management or the current property manager of the Property was terminated in accordance with this Section 2.2.

2.3 Prorations.  In addition to the prorations and adjustments set forth on 1.2(b), Prorations and adjustments with respect to the Company, Building Owner and Property shall be made as of the Company Closing Date and Building Closing Date, as applicable, with all income and expenses being prorated according to period of ownership, Seller taking all income and expenses through the Company Closing Date and Building Closing Date, as applicable, and Buyer thereafter. Income and expenses related to the Property including state, county and municipal real estate taxes, and other assessments (if any) for the Property, utilities and insurance shall be adjusted in cash at Closing.  All tenant deposits and any escrow accounts shall remain an asset of the Company/Building Owner.

ARTICLE III 

Representations and Warranties of Seller

Except as expressly set forth herein, Seller hereby represents and warrants to the Buyer as of the date hereof and, subject to this Article III, on the Company Closing Date, and acknowledge and confirm that the Buyer is relying upon such representations and warranties in connection with the purchase of the Seller Membership Interests.

3.1   Organization.  Seller is a limited-liability company duly formed, validly existing and in good standing under the laws of the State of Nevada and authorized to conduct business in Nevada.  Seller has all requisite power, authority and capacity (corporate and otherwise) to carry on their businesses in the places and in the manner as it is now being conducted.

3.2   Absence of Violations or Conflicts.  To Seller's actual knowledge, the execution and delivery by Seller, of this Agreement and the other Seller Agreements (as defined below), the consummation by the Seller of the transactions contemplated herein and therein, and the performance by or compliance with the obligations hereunder or thereunder will not constitute a violation of, be in conflict with, constitute a default under, or result in the creation or imposition of any lien in, upon or with respect to the Seller Membership Interests under (a) any term or provision of the formation documents or organizational documents (including all amendments) of the Seller, (b) any judgment, decree or order of any court, administrative agency or commission or other governmental or quasi-governmental authority or instrumentality, domestic or foreign, international, provincial, federal, state, county or local ("Governmental Entity"), (c) any written agreement, commitment or understanding to which  Seller is a party or to which its respective assets or liabilities are subject or bound, or (d) any statutes, common laws, rules, ordinances, regulations, codes, orders, judgments, injunctions, writs, decrees, governmental guidelines or interpretations having the force of laws or bylaws, in each case, of a Governmental Entity ("Laws").

3.3    Authority and Status.  Seller, has the full power and authority to enter into, and perform its obligations under, this Agreement and the other agreements, documents and instruments entered into by such person in connection with this Agreement (this Agreement together with such other agreements, documents and instruments collectively, the "Seller Agreements") without the consent of any person, entity or court, agency or authority.  The Seller Agreements constitute, or will, when executed and delivered, constitute the valid and legally binding obligations of Seller, enforceable against it in accordance with their respective terms.

3.4 Title to Property.  Building Owner owns the Property as delineated in the Title Report.

3.5 Title to Membership Interests.  Seller holds all of the Seller Membership Interests free and clear of all Interest Liens excluding therefrom at all times the terms, conditions, restrictions and provisions of the operating agreement of the Company.

3.6 To the knowledge of Seller, and except as transfer(s) which may occur pursuant to this Agreement, since September 13, 2016 no act or inaction of Seller has caused the Building Owner Membership Interest to incur any Interest Liens other than, at all times, the terms, conditions, restrictions and provisions of the operating agreement of each Building Owner.

3.7 No Brokers.  Seller has not employed any broker or finder or incurred any liability for any broker's fees, commissions or finder's fees in connection with the transactions contemplated by this Agreement.

3.8 Management Contract. As of the Effective Date, the current property manager of the Property may be terminated at no cost to the Buyer upon thirty (30) day written notice.

3.9 Litigation.  As of the Effective Date, there is no action, suit, claim, proceeding, arbitration, governmental inquiry, or investigation pending against Seller, the Company or Building Owner, or, to Seller's knowledge, threatened against Seller, the Company, or Building Owner, at law or in equity, before or by any Governmental Entity, which, if adversely determined, would question the legality, validity, or enforceability of, or prevent the consummation of, the transactions contemplated by this Agreement, or materially and adversely affect Seller's ability to sell the Seller's Membership Interest or that otherwise relates to the Seller's Membership Interest or otherwise perform its obligations hereunder or in connection herewith.

3.10 Solvency.  Seller has not: (1) made a general assignment of a its assets for the benefit of creditors; (2) filed any voluntary petition in bankruptcy or, to Seller's Knowledge, suffered the filing of any involuntary petition in bankruptcy by its creditors; (3) suffered the appointment of a receiver to take possession of all, or substantially all, of its assets; (4) suffered the attachment or other judicial seizure of all, or substantially all, of its assets; (5) admitted in writing its inability to pay its debts as they come due; or (6) made an offer of settlement, extension or composition to its creditors generally. 

3.11 Anti-Money Laundering Laws and Regulations.  The sale by Seller of the Seller's Membership Interest pursuant to the terms hereof shall not, directly or indirectly, result in the contravention of any applicable anti-money laundering laws and regulations.

Except as set forth below, all representations and warranties made by Seller set forth in this Agreement and/or in any of the other transaction documents shall survive the Closing until the date that is six (6) months following the Company Closing Date for the purchase of the Seller Membership Interest and Building Closing Date for such Building Membership Interest ("Survival Expiration Date"), and any action on any such representation or warranty must be instituted on or before the Survival Expiration Date.  Notwithstanding the foregoing, the following representations and warranties set forth in Sections 3.1, 3.3, 3.5, 3.6, 3.7 and 3.10 shall survive indefinitely.

Seller shall immediately provide Buyer with written notice if Seller becomes aware of any event, action, fact or circumstance which would constitute a breach of any of Seller's representations and warranties under this Agreement (each a "Warranty Notice").  Provided the breach is not the result of Seller's own action or deliberate inaction (an intentional breach) as to Section 3.5,  if Seller provides Buyer with a Warranty Notice, Buyer shall have the right in its sole and absolute discretion, for a period of ten (10) days after Buyer's receipt of any applicable Warranty Notice,  to either (i) terminate this Agreement or (ii) accept the matter disclosed by the Warranty Notice and continue this Agreement in full force and effect.  Notwithstanding the foregoing, such representations and warranties shall automatically be deemed modified to reflect all information actually known to Buyer.    In no event shall any Seller be liable to Buyer for, or be deemed to be in default hereunder by reason of, any breach of representation or warranty which results from any change that (i) occurs between the Effective Date and Company Closing Date or Building Closing Date, and (ii) is expressly permitted under the terms of this Agreement or is beyond the reasonable control of Sellers to prevent. Additionally, notwithstanding any other

 provision of this Agreement, if at or prior to the Closing Buyer obtains knowledge that any representation or warranty of Seller under this Agreement (as the same may be updated pursuant hereto) is inaccurate in any respect, but nonetheless proceeds to the Closing, Buyer shall be deemed to have waived any right to make or assert any and all past, present and future claims, cross-claims, counterclaims, demands, liabilities, obligations, debts, liens, damages, losses, costs, expenses, controversies, actions, rights, suits, assessments, penalties, charges, indemnities, guaranties, promises, commitments, or causes of action of whatsoever nature, whether in law or equity and whether direct or indirect, known or unknown, asserted or unasserted, foreseen or unforeseen, fixed or contingent or otherwise bring any action, suit, arbitration, or other legal proceeding arising out of such inaccuracy.  The knowledge of Buyer shall be deemed to include the knowledge of Lance Bradford except as to Section 3.5.

Notwithstanding anything to the contrary in this Agreement, and with the exception of fraud, and excluding Sections 3.5, Seller's obligations for any claims under Article 3 and Article 7 shall not in the aggregate exceed an amount equal to $250,000.00 and except to the extent that the aggregate of all claims paid or incurred by Buyer exceeds an amount equal to $25,000.00; provided, however, Seller's obligations for any other claims or damages of any kind, type or nature (including without limitation Section 3.5 and fraud), related to, pursuant to or arising under this Agreement or by law in no event shall exceed in the aggregate $2,000,000.00.

ARTICLE IV

RESERVED

ARTICLE V

Representations and Warranties of the Buyer

The Buyer hereby represents and warrants to the Seller as of the date hereof and as of the Company Closing Date, and to Company as of the date hereof and as of the Building Closing Date, as follows:

5.1 Existence. The Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware.

5.2 Authority and Status.  The Buyer has the right, power, legal capacity, and authority to enter into, and perform the Buyer's obligations under this Agreement and the other agreements, documents and instruments entered into by the Buyer in connection with this Agreement (this Agreement together with such other agreements, documents and instruments (the "Buyer Agreements") without the consent of any Person.  Buyer has obtained all necessary board or other approvals to enter into and carryout the transaction contemplated by this Agreement.  The Buyer Agreements constitute, or will, when executed and delivered, constitute the valid and legally binding obligations of the Buyer, enforceable against the Buyer in accordance with their respective terms.

5.3 Absence of Violations or Conflicts.  The execution and delivery by the Buyer of this Agreement and the other Buyer Agreements, the consummation by the Buyer of the transactions contemplated herein and therein, and the performance by or compliance with its obligations hereunder or thereunder will not constitute a violation of, be in conflict with, constitute a default under or result in the creation or imposition of any lien in, upon or with respect to any of its assets under (a) any term or provision of the Buyer's formation certificate (and all amendments thereto) or operating agreement (and all amendments thereto) of the Buyer, (b) any judgment, decree or order of any court or governmental agency, (c) any agreement, commitment or understanding to which the Buyer is a party or to which the Buyer or its assets or liabilities are subject or bound, or (d) any statute, law, rule, regulation, release or other official pronouncement.

5.4 Litigation.  There is no action, suit, claim, proceeding, arbitration, governmental inquiry, or investigation pending or, to Buyer's knowledge, threatened against Buyer, at law or in equity, before or by any Governmental Entity, which, if adversely determined, would question the legality, validity, or enforceability of, or prevent the consummation of, the transactions contemplated by this Agreement, or materially and adversely affect Buyer's ability to purchase the Seller's Membership Interests or the Building Owner Membership Interests, as the case may be, or that otherwise relates to the Seller's Membership Interests or the Building Owner Membership Interests or otherwise perform its obligations hereunder or in connection herewith.

5.5 Solvency.  Buyer has not: (1) made a general assignment of a its assets for the benefit of creditors; (2) filed any voluntary petition in bankruptcy or, to Buyer's Knowledge, suffered the filing of any involuntary petition in bankruptcy by its creditors; (3) suffered the appointment of a receiver to take possession of all, or substantially all, of its assets; (4) suffered the attachment or other judicial seizure of all, or substantially all, of its assets; (5) admitted in writing its inability to pay its debts as they come due; or (6) made an offer of settlement, extension or composition to its creditors generally. 

5.6 Accredited Investor; Qualified Purchaser.  Buyer is (i) an "accredited investor" within the meaning of Rule 501 of Regulation D of the Securities Act of 1933, as amended and (ii) a "qualified purchaser" within the meaning of Section 2(a) (51) (A) of the Investment Company Act of 1940, as amended, and the rules promulgated thereunder.  Buyer has such knowledge and experience in financial and business matters and in making investments of this type that it is capable of evaluating the merits and risks of purchasing the Interest.

5.7 Information.  Buyer has had the opportunity to ask for all the information it considers necessary or appropriate for deciding whether to acquire the Seller Membership Interests and Building Owner Membership Interests.  Buyer has such knowledge and experience in financial, tax, and business matters and in making investments of this type that it is capable of evaluating the merits and risks of acquiring such Seller Membership Interests and Building Owner Membership Interests and, except as specifically provided herein, in connection with this acquisition has not been induced by, and has not relied upon, (i) any representation, warranty, statement, or agreement, whether express or implied, and whether made in writing or orally, of Seller or Company or any of its/their directors, members, managers, officers, employees, affiliates, stockholders, partners, agents, advisors, or representatives other than those expressly set forth in this Agreement or (ii) any other information (including, without limitation, projections, forecasts, budgets, and estimates) provided or made available by Seller  or Company or any of its/their

 directors, members, managers, officers, employees, affiliates, stockholders, partners, agents, advisors, or representatives to Buyer and its directors, officers, employees, affiliates, stockholders, partners, agents, advisors, financing sources, or representatives or any of their respective affiliates prior to or concurrently with the execution of this Agreement.  It is understood that any cost or financial estimates or projections contained or referred to in this Agreement or which otherwise have been provided to Buyer are not and shall not be deemed to be representations or warranties of Seller or the Company.  Buyer acknowledges that there are uncertainties inherent in attempting to make such estimates and projections regarding future performance, that it is familiar with such uncertainties, that it is taking full responsibility for making its own evaluation of the adequacy and accuracy of all estimates and projections so furnished to it, and that it shall have no claim against any person with respect thereto unless the costs, financial estimates or projections were the product of fraud or intentional misrepresentation.

5.8 Anti-Money Laundering Laws and Regulations.  The purchase by Buyer of the Seller's Membership Interests and the Building Owner Membership Interests, as applicable, pursuant to the terms hereof shall not, directly or indirectly, result in the contravention of any applicable anti-money laundering laws and regulations.

5.9 No Brokers.  Buyer has not employed any broker or finder or incurred any liability for any broker's fees, commissions or finder's fees in connection with the transactions contemplated by this Agreement.

 Except as set forth below, all representations and warranties made by Buyer set forth in this Agreement and/or in any of the other transaction documents shall survive the Closing until the Survival Expiration Date, and any action on any such representation or warranty must be instituted on or before the Survival Expiration Date.  Notwithstanding the foregoing, the following representations and warranties set forth in Section 5.1, Section 5.2, Section 5.4, Section 5.5, Section 5.6, Section 5.7, Section 5.8 and Section 5.9 shall survive indefinitely.

ARTICLE VI

Covenants

6.1   Property Title Report.  Attached hereto as Exhibit C is an updated title report ("Title Report") concerning the Property.  Between the date hereof and the Closing, the Company shall not permit any new liens or encumbrances, not otherwise identified on the Title Report or pursuant to that certain Declaration of Covenant, Condition and Restrictions and Reservation of Easements for Village Business Park (Book 20070730, Instrument No. 0004196, of Official Records), to be placed against the Property without the express written consent of Buyer which consent shall not be unreasonably withheld, conditioned or delayed.  If a new lien or encumbrance, not otherwise disclosed on the Title Report, is placed against the Property between the date hereof and the Closing, without the express written consent of Buyer and which is not caused by Buyer, then Company shall cure such matter on or before the Closing.

6.2   Conduct of Business Prior to the Closing Date.

(a) The Company and the Property shall be operated in the ordinary/customary course of business; provided, however, (1) the Company shall not and the Company shall not cause any Building Owner to enter into or amend, (i) any new contract or agreement that is not terminable with thirty (30) days prior written notice, without the express written consent of Buyer or (ii) from the Effective Date up to and including January 28, 2018, any lease for the Property without the express written consent of Buyer which shall not be unreasonably withheld, conditioned or delayed and (2) at Closing, subject to Section 2.3, the Building Owner shall distribute to the Company and the Company shall immediately distribute to Seller and Par 3 any cash then held by it, excluding the Purchase Price or any portion thereof which shall be paid directly to Seller in accordance with this Agreement, which distribution shall not be credited, debited or otherwise affect the Purchase Price or portion of the Purchase Price to be paid by Buyer at Closing.  To the extent necessary, the operating agreement of the Company is hereby amended to comport to the terms set forth in this Section 6.2.

(b) As of the Effective Date, Buyer shall be responsible to reimburse any and all tenant improvements and leasing commissions in leases involving the Property entered into in accordance with Section 6.2(a). If Buyer does not reimburse said tenant improvements or leasing commissions within thirty (30) days of Seller or Company's written request, Seller shall have the right, at its sole and absolute discretion, to declare this Agreement null and void and Purchaser shall have no rights of any kind, type or nature and Seller and Company shall have no obligations of any kind, type or nature pursuant to this this Agreement. For the avoidance of any doubt, in such circumstance the Non-Refundable Payment shall be retained by Seller.

(c) As of the Effective Date until Closing or earlier termination of this Agreement, Seller shall add or cause to be added Buyer to the disclosure list so that Buyer will be distributed the financial statements concerning the Property prepared by property manager when distributed by property manager; provided, however, neither Seller, Company nor Building Owner makes any representations or warranties as to the truthfulness or accuracy of such financial statements.

6.3   Insurance.  The Company shall cause, up to and including the Company Closing Date and Building Closing Date, as applicable, the existing policies of insurance with respect to the Property to be maintained in full force and effect by Building Owner, except as to the Property related to the Building Owner Membership Interest(s) that may be sold to Buyer under Article XI before Closing.

6.4   Confidentiality.  At all times from and after the Company Closing Date and Building Closing Date, each of the Parties shall keep secret and maintain in confidence, and shall not use for its benefit or for the benefit of others, any Confidential Information (and any information that would be deemed Confidential Information except that such information is in the public domain in whole or in part due to action of any Seller following the Closing or Company following a Partial Sale Closing Date).  The foregoing shall not prohibit disclosure of such information (i) as is required by Law, provided that (A) such Party informs the other Party in writing of such requirement or obligation prior to its disclosure so that a protective order or other appropriate remedy may be obtained by the non-disclosing Party, and (B) disclosure is thereafter made only

 to the extent to which the disclosing Party is obligated, but not further or otherwise, (ii) as is necessary to prepare Tax Returns (including Tax Returns of the Seller or of any of their Affiliates) or other filings with Governmental Entities or to defend or object to any reassessment of Taxes, (iii) as is necessary for the Parties (or its representatives) to prepare and disclose, as may be required, accounting statements or (iv) to assert or protect any rights of a Party hereunder or under any applicable Law.  For purposes hereof, "Confidential Information" means any information concerning the business and affairs of the Company that is known to such Party, prior to the Closing or becomes known to a Party following the Closing in connection with this Agreement except for any such information (i) that is already available to the public or (ii) becomes available to the public not in violation of this Section of this Agreement. This section shall not include any information Buyer or its parent companies are required to file with the Securities and Exchange Commission concerning its participation in this transaction.

6.5   Further Assurances.  After the Company Closing Date and Building Closing Date, each of the Parties will, at its non-material expense, execute and do all such further deeds, acts, things, and assurances that may be requisite in the opinion of counsel for the other Party for carrying out the intention of, or facilitating the performance of, the terms of this Agreement.

ARTICLE VII

 DISCLAIMER

7.1   "AS IS". Except as expressly provided in this Agreement, Seller, Company, its/their agents, contractors or representatives have not made any representations, warranties, promises, covenants, agreements or guarantees of any kind or character whatsoever, whether express or implied, oral or written, past, present or future, of, as to, concerning or with respect to (a) the Seller Membership Interests or the Building Owner Membership Interests (including without limitation the value of the Seller's Membership Interests and any Building Owner Membership Interests, the performance of the Company or Building Owner, the Company's or Building Owner's profitability, the Company's or Building Owner's assets) (b) the nature, quality or condition of the Property, including, without limitation, the water, soil and geology, (c) the income which may be derived from the Property, Company or Building Owner, (d) the compliance of or by the Company, Building Owner, the Property or its/their operation with any laws, rules, ordinances or regulations of any applicable governmental authority or body including, without limitation, those relating to health, safety, and the environment, (d) the habitability, merchantability or fitness for a particular purpose of the Property, or (e) any other matter with respect to the Property, Building Owner or the Company, and specifically disclaims any representations regarding hazardous waste or materials without limiting the generality of the foregoing. Buyer agrees to take Seller Membership Interests and any Building Owner Membership Interests on an "AS IS" with all faults basis.

7.2   Except as expressly provided in this Agreement, Buyer acknowledges that Buyer has entered into this Agreement with the intention of making and relying upon its own investigation of the  Seller Membership Interests and the Building Owner Membership Interests and the physical, environmental, economic use, compliance, and legal condition of the Property and that Buyer has not been induced by and has not relied upon any disclosures, representations or warranties (in each case whether express or implied or oral or written) made by Seller or the Company, Building Owner or any partner, member, manager or owner of Seller, Building Owner

 or the Company or any affiliate, agent, employee or other representative of any of the foregoing or any other matter affecting or relating to the transactions contemplated hereby.  In addition, except as expressly provided in this Agreement, Buyer expressly acknowledges that from and after the Effective Date of this Agreement, Buyer has not been and will not be induced by and has not relied and will not rely upon any disclosures, representations or warranties (in each case whether express or implied or oral or written) made by Seller, the Company, Building Owner, any partner or owner of Seller, Building Owner or the Company, or any affiliate, agent, employee or other representative of any of the foregoing, or any other matter affecting or relating to the transactions contemplated hereby.  Buyer further expressly acknowledges and agrees that no person or entity is entitled to make any disclosures, representations or warranties (in each case whether express or implied or oral or written) upon which Buyer shall be entitled to rely, and that, Seller, Building Owner and Company does not make any representations or warranties, whether express or implied or arising by operation of law, with respect to the Seller Membership Interests, Building Owner Membership Interest, Property or the transactions contemplated hereby.

CONSISTENT WITH THE FOREGOING, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, EFFECTIVE AS OF THE COMPANY CLOSING DATE AND BUILDING CLOSING DATE, AS APPLICABLE, BUYER, FOR ITSELF AND ITS AGENTS, AFFILIATES, SUCCESSORS AND ASSIGNS, HEREBY ACQUIRES ALL OF THE SELLER MEMBERSHIP INTERESTS AND/OR BUILDING OWNER MEMBERSHIP INTERESTS, AS APPLICABLE, (AND AGREES TO ASSUME THE RISK THEREOF, IN FULL RELIANCE UPON ITS OWN INVESTIGATIONS) AND RELEASES AND FOREVER DISCHARGES, WAIVES AND EXONERATES SELLER, COMPANY, BUILDING OWNER AND THEIR AGENTS, AFFILIATES, MEMBERS, PARTNERS, OFFICERS, DIRECTORS, MANAGERS, TRUSTEES, SUBSIDIARIES, PRINCIPALS, OWNERS, GENERAL PARTNERS, LIMITED PARTNERS, AS WELL AS THE SUCCESSORS AND ASSIGNS OF EACH OF ALL SUCH PERSONS OF EACH OF THEM (COLLECTIVELY THE "RELEASEES") FROM ANY AND ALL LIABILITIES, OBLIGATIONS, RIGHTS, CLAIMS, CAUSES OF ACTION AND DEMANDS AT LAW OR IN EQUITY, CONTROVERSIES, DAMAGE, COSTS, LOSSES AND EXPENSES WHETHER KNOWN OR UNKNOWN AT THE TIME OF THIS AGREEMENT, WHICH BUYER HAS OR MAY HAVE IN THE FUTURE, ARISING OUT OF THE PROPERTY, SELLER MEMBERSHIP INTERESTS, BUILDING OWNER MEMBERSHIP INTERESTS, BUILDING OWNER OR THE COMPANY RELATING TO THE PROPERTY, BUILDING OWNER MEMBERSHIP INTERESTS, SELLER MEMBERSHIP INTERESTS, BUILDING OWNER OR THE COMPANY, THE PHYSICAL, ENVIRONMENTAL, ECONOMIC OR LEGAL CONDITION OF THE PROPERTY, COMPANY AND BUILDING OWNER AND THE PROSPECTS, FINANCIAL CONDITION, OPERATION OR RESULTS OF OPERATIONS OF THE PROPERTY, BUILDING OWNER AND THE COMPANY, INCLUDING, WITHOUT LIMITATION, ALL CLAIMS IN TORT OR CONTRACT, ALL CLAIMS UNDER A WARRANTY OF ANY KIND (WHETHER EXPRESS, IMPLIED, OR, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, STATUTORY) AND INCLUDING ANY WARRANTY OF MERCHANTABILITY, HABITABILITY OR GOOD AND WORKMANLIKE CONSTRUCTION AND WARRANTIES OF FITNESS FOR USE OR ACCEPTABILITY FOR THE PURPOSE INTENDED, AND ALL CLAIMS FOR INDEMNIFICATION OR CONTRIBUTION ARISING UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT (42 U.S.C. SECTION 9601, ET SEQ.) OR ALL SIMILAR FEDERAL, STATE OR LOCAL STATUTE, RULE OR REGULATION, AND ANY OTHER BASIS FOR RECOVERY OR REIMBURSEMENT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) (COLLECTIVELY, THE "CLAIMS").  EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, BUYER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED,

 EXONERATED, RELINQUISHED AND RELEASED SELLER, COMPANY AND BUILDING OWNER AND OTHER RELEASEES FROM AND AGAINST ANY AND ALL MATTERS AFFECTING BUYER AND/OR THE PROPERTY AND/OR SELLER MEMBERSHIP INTERESTS AND/OR BUILDING OWNER MEMBERSHIP INTERESTS.  IN THIS CONNECTION AND TO THE GREATEST EXTENT PERMITTED BY LAW, EXCEPT FOR REPRESENTATIONS AND WARRANTIES EXPRESSLY PROVIDED IN THIS AGREEMENT, BUYER HEREBY AGREES, REPRESENTS AND WARRANTS THAT BUYER REALIZES AND ACKNOWLEDGES THAT FACTUAL MATTERS NOW KNOWN OR UNKNOWN TO IT MAY HAVE GIVEN OR MAY HEREAFTER GIVE RISE TO CLAIMS WHICH ARE PRESENTLY UNKNOWN, UNANTICIPATED AND UNSUSPECTED, AND BUYER FURTHER AGREES, REPRESENTS AND WARRANTS THAT THE WAIVERS AND RELEASES HEREIN AND THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN NEGOTIATED AND AGREED UPON IN LIGHT OF THAT REALIZATION AND THAT BUYER NEVERTHELESS HEREBY INTENDS TO RELEASE, DISCHARGE AND ACQUIT SELLER, COMPANY AND BUILDING OWNER FROM ANY SUCH UNKNOWN CLAIMS.  SELLER, BUILDING OWNER AND COMPANY HAVE GIVEN BUYER MATERIAL CONCESSIONS REGARDING THIS TRANSACTION IN EXCHANGE FOR BUYER AGREEING TO THE PROVISIONS OF THIS PARAGRAPH.

7.3   Buyer hereby agrees to indemnify, protect, defend and hold Seller and Company harmless from and against any claim, demand, obligation, loss, cost, damage, liability, judgment or expense (including, without limitation, reasonable attorneys' fees, charges and disbursements, which shall be reimbursed and paid as and when incurred)(collectively, "Claims"), arising out of or in connection with (a) the breach of any of Buyer's representations or warranties set forth herein, (b) the breach of any of Buyer's covenants or agreements set forth herein, (c) the ownership, operation or maintenance of the Property after any Closing or (d) the operation of the Company, the Property and Building Owner after any Closing.

7.4  Subject to Article III, Seller hereby agrees to indemnify, protect, defend and hold Buyer harmless from and against any Claims arising out of or in connection with (a) the breach of any of Seller's representations or warranties set forth herein, (b) the breach of any of Seller's covenants or agreements set forth herein, unless Buyer has actual knowledge of any breach priorsubject to Closing, does not notify Seller of any such breach and demand Seller remedy it, and Buyer continues through Closing to complete the transactions contemplated in this Agreement, (c) the ownership, operation or maintenance of the Property at or prior to the Closing or (d) the operation of the Company or Building Owner on or prior to the Closing.

7.5   Subject to Article III, each of the parties agrees that if it is required to provide indemnification hereunder (the "indemnifying party"), it shall reimburse the indemnified party (the "indemnified party") promptly upon request, for all losses incurred by such indemnified party, as and when they are incurred, including, but not limited to, reasonable attorneys', accountants' and other professionals' fees and expenses and court costs; provided, the indemnifying party receives a written undertaking from such indemnified party, to reimburse the indemnifying party for any payments made by the indemnifying party to such indemnified party if it is finally determined in such action or proceeding that such indemnified party is not entitled to indemnification hereunder.

The provisions of this Article VII shall survive indefinitely any closing or termination of this Agreement and shall not be merged into the closing documents.

ARTICLE VIII

 Closing Conditions

8.1 Conditions to Obligations of the Buyer.  The obligation of the Buyer to effect the transactions contemplated hereby is also subject to the satisfaction or waiver by the Buyer, in writing, at or prior to the Company Closing Date or Building Closing Date of the following conditions:

(a) Representations and Warranties.  Subject to Article III, the representations and warranties of the Seller shall be true and correct in all material respects on and as of the Company Closing Date and Building Closing Date, as though made on and as of the Closing Date, or Building Closing Date, as applicable, (except that representations and warranties that by their terms speak specifically as of the date of this Agreement or another date shall be true and correct as of such date).

(b) Performance of Obligations of Seller.  Seller shall have complied in all material respects with the covenants and agreements to be performed by or complied with under this Agreement at or prior to the Company Closing Date and Building Closing Date, as applicable.

(c) Consents.  Any consents required for the Closing or Partial Sale, shall have been obtained and any required notices and filings shall have been made.

(d) Closing Deliveries.  Each of the items required to be executed and delivered to Escrow Agent pursuant to Sections 9.1 and 9.3, as applicable, shall have been so executed and delivered to Escrow Agent.

8.2   Conditions to Obligations of the Seller.  The obligation of the Seller to effect the transactions contemplated hereby is also subject to the satisfaction or waiver by the Seller, in writing, at or prior to the Closing Date, of the following conditions:

(a) Representations and Warranties.  The representations and warranties of Buyer set forth in this Agreement shall be true and correct in all material respects on and as of the Closing Date as though made on and as of the Closing Date.

(b) Performance of Obligations of Buyer.  Buyer shall have performed in all material respects the obligations required to be performed by it under this Agreement at or prior to the Closing Date.

(c) Closing Deliveries.  Each of the items required to be executed and delivered to the Escrow Agent pursuant to Section 9.2 shall have been so executed and delivered to Escrow Agent.

(d) Purchase Price.  Buyer shall have tendered via wire transfer the Purchase Price in accordance with Section 1.2 hereto.

8.3   Conditions to Obligations of the Company.  The obligation of the Company to effect the transactions contemplated hereby is also subject to the satisfaction or waiver by the Company, in writing, at or prior to the Partial Sale Closing Date for the Building Owner Membership Interest(s) subject to said Partial Sale Closing Date, of the following conditions:

(a) Representations and Warranties.  The representations and warranties of Buyer set forth in this Agreement shall be true and correct in all material respects on and as of the Partial Sale Closing Date as though made on and as of the Partial Sale Closing Date.

(b) Performance of Obligations of Buyer.  Buyer shall have performed in all material respects the obligations required to be performed by it under this Agreement at or prior to the Partial Sale Closing Date.

(c) Closing Deliveries.  Each of the items required to be executed and delivered to Escrow Agent pursuant to Section 9.3 shall have been so executed and delivered to Escrow Agent.

(d) Purchase Price.  Buyer shall have tendered via wire transfer that portion of the Purchase Price in accordance with Article XI hereto.

8.4   Termination.  This Agreement may be terminated as follows:

(a) This Agreement may be terminated and the transactions contemplated by it abandoned by written notice from Buyer to Seller, or from Seller to Buyer, in the event of a material breach by Seller, Company, or Buyer, as applicable, of any representation, warranty, covenant, or agreement contained in this Agreement which cannot be cured within thirty (30) days (a "Cure Period").

(b) by mutual written consent of the Buyer and Seller.

(c) in accordance with the terms and conditions of this Agreement.

8.5 Remedies.  In the event of Buyer has been unable to satisfy its conditions to Closing on or before the Closing Date, Seller may retain the Earnest Money Deposit, and the Nonrefundable Payment if then paid, as its sole damages. Buyer and Seller hereby acknowledge and agree that money damages would not be a sufficient remedy for any breach of any provision of this Agreement by the Seller.  In such event, Seller agrees that Buyer shall have the right, in addition to any other rights it may have (whether at law or in equity), to seek specific performance and injunctive relief as a remedy for any such breach of this Agreement.  No failure or delay by any party hereto in exercising any right, power or privilege hereunder will operate as a waiver thereof, nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

ARTICLE IX

Closing Documents

9.1   Delivery of Closing Documents by the Seller.  On or before the Company Closing Date, the Seller will deliver to Escrow Agent the Assignment and Assumption Agreement attached hereto as Exhibit D, a mutually approved joint closing statement and such other consents and documents as are necessary, and approved by the Parties, to consummate the transaction contemplated hereby.

9.2   Delivery of Closing Documents by the Buyer.  On or before the Company Closing Date and Building Closing Date, as applicable, the Buyer will deliver to Escrow Agent the Assignment and Assumption Agreement attached hereto as Exhibit D and a mutually approved joint closing statement and such other consents and documents as are necessary, and approved by the Parties, to consummate the transaction contemplated hereby.

9.3   Delivery of Closing Documents by the Company.  On or before the Building Closing Date, the Company will deliver to Escrow Agent the Assignment and Assumption Agreement similar in form to the one attached hereto as Exhibit D, a mutually approved joint closing statement and such other consents and documents as are necessary, and approved by the Parties, to consummate the Partial Sale contemplated hereby.

ARTICLE X

Miscellaneous

10.1   Notices.  All notices provided for hereunder shall be in writing and shall be deemed to be given:

(a) When delivered to the individual, or to an officer of the company, to which the notice is directed;

(b) Three (3) days after the same has been deposited in the United States mail, sent Certified or Registered mail with Return Receipt Requested, postage prepaid and addressed as provided in this Section; or

(c) When delivered by a generally recognized overnight delivery service (including United States Express Mail) and with all charges prepaid by the sender addressed as provided in this Section.

(d) When delivered by electronic mail if delivery is also accomplished within one (1) business day via a generally recognized overnight delivery service (including United States Express Mail) and with all charges prepaid by the sender addressed as provided in this Section.  Notices shall be directed as follows:

(1) if to Buyer:

CORPORATE CENTER SUNSET, LLC

8880 W. Sunset Road, Suite 200

Las Vegas, NV 89148

Attention: Michael Shustek

mike@mvpreits.com

with a copy to:

Brent Eckersley, Esq.

8880 W. Sunset Road, Suite 290

Las Vegas, NV 89148

BrentE@LGEALaw.com

Craig D. Burr, Esq.

8880 W. Sunset Road, Suite 210

Las Vegas, NV 89148

craig@craigburr.com

(2) if to Seller or Company

c/o Quarry Capital LLC

1370 Jet Stream Drive, Suite 100

Henderson, NV 89052

Attn:  Dennis Troesh

E-mail:dennis@quarrycapital.net

(3) if to Par 3

Par 3 Nevada LLC

8880 W. Sunset Road, Third Floor

Las Vegas, Nevada 89148

ATTN: Lance Bradford

		(4)	
if to Escrow Agent:

Lawyers Title

1401 N. Green Valley Parkway, Suite 100

Henderson, NV 89074

 Attention:  Debbie Novotny

debbie.novotny@ltic.com

Telephone: (702) 868-2324

 Facsimile: (702) 441-0695

or at such other place or places or to such other person or persons as shall be designated by like notice by any party hereto.

10.2   Expenses.  Each party hereto shall pay its own expenses, including without limitation, fees and expenses of its agents, representatives, counsel, auditors, and accountants, incidental to the preparation and carrying out of this Agreement.

10.3 Parties in Interest.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.  This Agreement shall not be assigned by any party hereto without the prior written consent of the other parties.  Nothing in this Agreement, expressed or implied, is intended to confer upon any third person any rights or remedies under or by reason of this Agreement.

10.4 Legal Fees and Costs.  In the event of any disputes or controversies arising from the Agreement or its interpretation, each party shall pay its own costs and expenses including without limitation legal fees and costs incurred in connection with same.

10.5   Entire Agreement; Amendment.

(a) This Agreement together with the other agreements provided for herein embody the whole agreement of the parties.  There are no promises, terms, conditions, or obligations other than those contained herein.  All previous negotiations between the parties, either verbal or written, not herein contained are hereby withdrawn and annulled.  This Agreement shall supersede all previous communications, representations, or agreements, either verbal or written, between the parties hereto.

(b) This Agreement may not be amended except by an instrument in writing signed on behalf of all the Parties hereto.

10.6   Captions; Counterparts.  The section and subsection headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  No provision of this Agreement will be interpreted in favor of, or against, either of the parties to this Agreement by reason of the extent to which any such party or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof.

10.7   Governing Law; Venue.  This Agreement shall be construed and enforced in accordance with the internal substantive laws of the State of Nevada, without regard to its principles of conflict of laws.  The courts of Clark County, Nevada, shall have sole and exclusive jurisdiction over any action or proceeding brought under or pursuant to this Agreement.

10.8   Severability.  If a court of competent jurisdiction or an arbitrator should find any term or provision of this Agreement to be unenforceable and invalid by reason of being overly broad, the parties agree that the court shall limit the scope or duration of such provision to the maximum enforceable scope or duration allowed by law.  Any term or provision deemed by a court of competent jurisdiction to be unenforceable and invalid for any other reason shall be severed from this Agreement, and the remainder of this Agreement shall continue in full force and effect.  Time is of the essence with regard to this Agreement.

10.9   Counterparts and Facsimile Signatures.  The parties may execute this Agreement in two or more counterparts, which shall, in the aggregate, be deemed signed by all of the parties.  Each counterpart shall be deemed an original instrument as against any party who signed it.  A facsimile signature by any party shall be acceptable and shall result in this Agreement being valid and enforceable against such party.

10.10 Notwithstanding anything to the contrary contained herein, if the transaction contemplated by this Agreement shall be delayed or otherwise cannot be carried out in accordance herewith as a direct result of Par 3 or its members, owners or managers or any matter involving the same, then Seller, Company and Building Owner shall not be held liable in any regard for any delay, claims, damages or losses as a result thereof; provided, however, Buyer and Seller shall use commercially reasonable efforts to bring this transaction to a close and, to the extent such delay prevents Seller, Company or Building Owner from carrying out the transaction in accordance herewith then, the Company Closing Date and Building Closing Date, as applicable, shall be extended until such impediment to the transaction is removed but in no event shall the Company Closing Date or Building Closing Date be extended beyond January 28, 2020.  For the avoidance of any doubt, the extension granted hereby shall only be applicable to Seller, Building Owner and Company's ability to carry out the transaction contemplated hereby and not Par 3 or its members, owners or managers.

10.11   Dispute Resolution. Any controversy, dispute, or claim of any nature arising out of, in connection with, or in relation to the interpretation, performance, enforcement or breach of this Agreement (and any closing document executed in connection herewith), including any claim based on contract, tort or statute, shall be resolved at the written request of any party to this Agreement by binding arbitration.  The arbitration shall be administered in accordance with the then current Commercial Arbitration Rules of the American Arbitration Association.  Any matter to be settled by arbitration shall be submitted to the American Arbitration Association in Clark County, Nevada.  The parties shall attempt to designate one arbitrator from the American Arbitration Association.  If they are unable to do so within thirty (30) days after written demand therefor, then the American Arbitration Association shall designate an arbitrator.  The arbitration shall be final and binding, and enforceable in any court of competent jurisdiction.  Notwithstanding anything to the contrary contained herein, this Section shall not prevent Buyer, Company or Seller from seeking and obtaining equitable relief on a temporary or permanent basis, including, without limitation, a temporary restraining order, a preliminary or permanent injunction, specific performance, or similar equitable relief, from a court of competent jurisdiction located in the state in which the Property is located (to which all parties hereto consent to venue and jurisdiction) by instituting a legal action or other court proceeding in order to protect or enforce the rights of such party under this Agreement or to prevent irreparable harm and injury.  The court's jurisdiction over any such equitable matter, however, shall be expressly limited only to the temporary, preliminary, or permanent equitable relief sought; all other claims initiated under this Agreement between the parties hereto shall be determined through final and binding arbitration in accordance with the terms of this Section.

SELLER, COMPANY AND BUYER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE PROVISIONS OF THIS SECTION 10.11, AND BY THEIR INITIALS IMMEDIATELY BELOW AGREE TO BE BOUND BY ITS TERMS.

_________________   _________________

Seller's Initials Company's Initials Buyer's Initials

ARTICLE XI

Partial Sale Rights

11.1   At any time prior to the Closing Date, Buyer may purchase any one or more Building Owner Membership Interest from Company (a "Partial Sale"), with any Partial Sale requiring the simultaneous purchase of any Building Owner which is jointly mortgaged under the same or a cross-collateralized loan (Buildings II and VI), as follows:

(a) At the Closing Seller to receive the greater of (i) all sale proceeds (Sale proceeds shall be the product of the sales price less any reasonable and typical costs of sale and repayment or assumption of the first mortgage) or the following:

	
BUILDING

	 	 	
SQUARE FEET

	 	 	
PORTION OF PURCHASE PRICE*, **

	 	 	
OPTION FEE

	 	 	
TOTAL DUE AT CLOSING***

	 
	 I 		 	 	
47,132

	 	 	
$

	
6,000,000

	 	 	
$

	
130,000

	 	 	
$

	
6,130,000

	 
	
II

	 	 	 	
22,000

	 	 	
$

	
2,500,000

	 	 	
$

	
60,000

	 	 	
$

	
2,560,000

	 
	
III

	 	 	 	
47,132

	 	 	
$

	
6,000,000

	 	 	
$

	
130,000

	 	 	
$

	
6,130,000

	 
	
IV

	 	 	 	
22,000

	 	 	
$

	
2,500,000

	 	 	
$

	
60,000

	 	 	
$

	
2,560,000

	 
	 V 		 	 	
22,000

	 	 	
$

	
2,500,000

	 	 	
$

	
60,000

	 	 	
$

	
2,560,000

	 
	
VI

	 	 	 	
22,000

	 	 	
$

	
2,500,000

	 	 	
$

	
60,000

	 	 	
$

	
2,560,000

	 

*The Portion of Purchase Price shall be subject to change and adjustment pursuant to Section 1.2(b)(ii) and such amount shall be used to reduce the Purchase Price of the Seller Membership Interests in accordance with Section 1.2(b)(ii).

** The Non-Refundable Payment shall not be applied against the Portion of the Purchase Price and shall only be applied to the final payment of the entire Purchase Price on the Company Closing Date.

***The Total Amount Due at Closing shall be subject to change and adjustment pursuant to Section 1.2(b)(ii) and shall not be used to reduce the Purchase Price until the final payment of the entire Purchase Price on the Company Closing Date.

(b) Par 3 consents, acknowledges and agrees that (i) Company may sell, pursuant to this Agreement, any Building Owner Membership Interest and the Seller Membership Interests, (ii) any proceeds received by the Company from the sale of the Building Owner Membership Interest shall be immediately distributed by Company directly to Seller with Par 3 having no right, title or interest in and to such funds and Par 3 hereby waiving and relinquishing the same and (iii) during the pendency of this Agreement any distributions by Company shall be continue to be made to the members of the Company in accordance with the operating agreement of the Company; provided, however, Par 3 as a member of the Company shall have no rights of any kind, type, or nature to any distributions of the Purchase Price, Non-Refundable Payment or any portion thereof which shall all be paid to Seller.  Par 3 acknowledges that it has executed a separate written agreement with Buyer to account for its waiver of the right to receive proceeds from the Company's sale of Building Owner Membership Interests. To the extent necessary, the operating agreement of the Company is hereby amended to comport to the terms set forth in this Section

11.2   If Buyer desires to exercise its right to a Partial Sale, it shall provide written notice to Seller, Par 3, and Company ("Buyer's Notice") specifying: (i) which Building Owner Membership Interest(s) Buyer desires to purchase from Company; (ii) the Portion of the Purchase Price, Option Fee and Total Due at Closing, subject in all events to adjustment pursuant to Section 1.2(b)(ii), and (iii) a proposed closing date for the purchase of said Building Owner Membership Interest(s) ("Building Closing Date"), said closing date to be at least thirty (30) days from the date of the Buyer's Notice, but prior to the Company Closing Date.

(a)  If Company or Seller disagree with any matter set forth in the Buyer's Notice, then within ten (10) Business Days of Company's receipt of Buyer's Notice, Company or Seller shall send written notice to Buyer (Company's Notice") specifying such objection.  In the event the Parties cannot resolve such conflict within ten (10) Business Days of Buyer's receipt of Company's Notice, then said objections shall be resolved in accordance with Section 10.10 of this Agreement.  In such event, the Building Closing Date shall be postponed until after resolution of such dispute but in no event later than the Company Closing Date.

(signature page to follow)

IN WITNESS WHEREOF, the undersigned parties hereto have duly executed this Agreement on the date first above written.

BUYER:

CORPORATE CENTER SUNSET, LLC, a Delaware limited liability company

By:___________________________________

        Print Name: ___________________________

        Print Title: ____________________________

COMPANY:

STABLE PROPERTIES CC, LLC,

a Nevada limited liability company

By: DT GRAT CS, LLC

Its: Manager

By: 

      Dennis Troesh, Manager

SELLER:

DT GRAT CS, LLC, a

A Nevada limited liability company

By: ______________________________________

       Dennis Troesh, Manager

Par 3 Nevada, LLC, a

Nevada limited liability company

Escrow Agent:  

___________________________ By: 

___________________________ Its: Manager

Schedule of Exhibits:

Exhibits A-1 – A-6 - Legal Descriptions

Exhibit B – Repurchase Option Waiver

Exhibit C- Title Report

Exhibit D- Assignment and Assumption Agreement

Exhibit E – Company Operating Agreement

Exhibit A-1

Legal Description

Exhibit A-2

Legal Description

Exhibit A-3

Legal Description

Exhibit A-4

Legal Description

Exhibit A-5

Legal Description

Exhibit A-6

Legal Description

Exhibit B

Repurchase Option Waiver

This Repurchase Option Waiver Agreement (this "Agreement") is entered into this ___ day of December 2016 by and between Building A, LLC, a Nevada limited liability company ("Building A"), Building C, LLC, a Nevada limited liability company ("Building C"), Devonshire, LLC, a Nevada limited liability company ("Devonshire"), Execusuite Properties, LLC, a Nevada limited liability company ("Execusuite"), SE Property Investments, LLC, a Nevada limited liability company ("SE Property"), Wolfpack Properties, LLC, a Nevada limited liability company ("Wolfpack" together with Building A, Building C, Devonshire, Execusuite and SE Property is the "Prior Owner"), CC Building I LLC, a Delaware limited liability company ("CC I"), CC Building II LLC, a Delaware limited liability company ("CC II"), CC Building III LLC, a Delaware limited liability company ("CC III"), CC Building IV LLC, a Delaware limited liability company ("CC IV"), CC Building V LLC, a Delaware limited liability company ("CC V"), CC Building VI LLC, a Delaware limited liability company ("CC VI" together with CC I, CC II, CC III, CC IV, and CC V are the "Buyers").

WHEREAS, on or about November 18, 2015, Building A and CC I entered into that certain Sale and Purchase Agreement and Joint Escrow Instructions, as amended ("PSA I").

WHEREAS, Section 16 of PSA I grants Building A the right to repurchase the property located at 8880 West Sunset Road, Las Vegas, Nevada, and bearing Assessor Parcel Number 163-32-810-002 ("CC I Property") from Seller.

WHEREAS, on or about November 18, 2015, Building C and CC III entered into that certain Sale and Purchase Agreement and Joint Escrow Instructions, as amended ("PSA II").

WHEREAS, Section 16 of PSA II grants Building C the right to repurchase the property located at 8930 W. Sunset Road, Las Vegas, Nevada 89148, bearing Assessor Parcel Number 163-32-810-004 ("CC III Property") from Seller.

WHEREAS, on or about November 18, 2015, Devonshire and CC VI entered into that certain Sale and Purchase Agreement and Joint Escrow Instructions, as amended ("PSA III").

WHEREAS, Section 16 of PSA III grants Devonshire the right to repurchase the property located at 8925 W. Post Road, Las Vegas, Nevada 89148, bearing Assessor Parcel Number 163-32-810-007 ("CC VI Property") from Seller.

WHEREAS, on or about November 18, 2015, Execusuite and CC IV entered into that certain Sale and Purchase Agreement and Joint Escrow Instructions, as amended ("PSA IV").

WHEREAS, Section 16 of PSA IV grants Execusuite the right to repurchase the property located at 8945 W. Post Road, Las Vegas, Nevada 89148, bearing Assessor Parcel Number 163-32-810-005 ("CC IV Property") from Seller.

WHEREAS, on or about November 18, 2015, SE Property and CC V entered into that certain Sale and Purchase Agreement and Joint Escrow Instructions, as amended ("PSA V").

WHEREAS, Section 16 of PSA V grants SE Property the right to repurchase the property located at 8905 W. Post Road, Las Vegas, Nevada 89148, bearing Assessor Parcel Number 163-32-810-006 ("CC V Property") from Seller.

WHEREAS, on or about November 18, 2015, Wolfpack and CC II entered into that certain Sale and Purchase Agreement and Joint Escrow Instructions, as amended ("PSA VI" collectively with PSA I, PSA II, PSA III, PSA IV and PSA V is the "PSA").

WHEREAS, Section 16 of PSA VI grants Wolfpack the right to repurchase the property located at 8860 W. Sunset Road, Las Vegas, Nevada 89148, bearing Assessor Parcel Number 163-32-810-003 ("CC II Property" collectively with CC I Property, CC III Property, CC IV Property, CC V Property and CC VI Property is the "Property") from Seller.

WHEREAS, Buyer hereby wishes to waive and relinquish its right to to repurchase the Property from Seller pursuant to the PSA.

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

1. Each Buyer hereby waives and relinquishes any and all rights to exercise the repurchase option for the Property set forth in the PSA.

2. The repurchase rights contained in the PSA are hereby null and void and of no further force or effect.  Seller shall have no obligation of any kind, type or nature to sell, transfer or otherwise convey the Property to any Buyer.

3. Buyer consents, agrees and acknowledges that Corporate Center Sunset, LLC, a Delaware limited liability company ("CCS") has contemporaneously with the execution of this Agreement entered into that certain Membership Purchase Agreement (the "Purchase Agreement") and pursuant to the Purchase Agreement CCS has the right to purchase membership interests in entities which ultimately own the Property.

4. Buyer has obtained all requisite consents and approvals, including without limitation board approval, to enter into this Agreement and waive and relinquish any and all rights to exercise the repurchase option for the Property set forth in the PSA.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first above written.

	
Building A, LLC,

a Nevada limited liability company

 

____________________________

By:

Its:

	
 

Building C, LLC,

a Nevada limited liability company

 

____________________________

By:

Its:

	
 

Devonshire, LLC,

a Nevada limited liability company

 

____________________________

By:

Its:

	
 

Execusuite Properties, LLC,

a Nevada limited liability

 

____________________________

By:

Its:

	
SE Property Investments, LLC,

a Nevada limited liability company

 

____________________________

By:

Its:

	
 

Wolfpack Properties, LLC,

a Nevada limited liability company

 

____________________________

By:

Its:

	
 

CC Building I LLC,

a Delaware limited liability company

 

By: DT GRAT CS, LLC

Its: Manager

 

____________________________

By: Dennis Troesh

Its: Manager

	
 

CC Building II LLC,

a Delaware limited liability company

 

By: DT GRAT CS, LLC

Its: Manager

 

____________________________

By: Dennis Troesh

Its: Manager

	
CC Building III LLC,

a Delaware limited liability company

 

By: DT GRAT CS, LLC

Its: Manager

 

____________________________

By: Dennis Troesh

Its: Manager

	
 

CC Building IV LLC,

a Delaware limited liability company

 

By: DT GRAT CS, LLC

Its: Manager

 

____________________________

By: Dennis Troesh

Its: Manager

	
 

 

CC Building V LLC,

a Delaware limited liability company

 

By: DT GRAT CS, LLC

Its: Manager

 

____________________________

By: Dennis Troesh

Its: Manager

	
 

CC Building VI LLC,

a Delaware limited liability company

 

By: DT GRAT CS, LLC

Its: Manager

 

____________________________

By: Dennis Troesh

Its: Manager

EXHIBIT C

Title Report

Exhibit D

ASSIGNMENT AND ASSUMPTION OF SELLER MEMBERSHIP INTEREST

THIS ASSIGNMENT AND ASSUMPTION OF SELLER MEMBERSHIP INTEREST (this "Agreement") is dated as of ____________________ ____, 201___ (the "Effective Date"), by and between _________________________, a  ("Seller"), and ________________________________, a ______________________ ("Purchaser").

RECITALS

A. Seller owns a eighty seven and 50/100 percent (87.50%) membership interest in Stable Properties CC, LLC, a Nevada limited liability company (the "Company").

B. The Company is a limited liability company formed under the laws of the State of Nevada pursuant to the terms of a Certificate of Formation and is governed by that certain Second Amended and Restated Operating Agreement of the Company, dated as of April 8, 2016 (as amended, the "Operating Agreement") attached hereto as Exhibit 1.

C. The Company is the fee owner of certain Property (as such term is defined in the Purchase Agreement).

D. This Agreement is executed pursuant to that certain MEMBERSHIP INTEREST PURCHASE AGREEMENT among Seller and Purchaser (the "Purchase Agreement").  This Agreement may use the capitalized terms used in the Purchase Agreement. Pursuant to the Purchase Agreement, Seller has agreed to sell to Purchaser and Purchaser has agreed to purchase from Seller, all of Seller's eighty seven and 50/100 percent (87.50%) membership interest (the "Membership Interest") in the Company.

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements herein set forth, and other valuable consideration, receipt of which is hereby acknowledged, Seller and Purchaser hereby agree as follows:

1. Assignment and Withdrawal from the Company.  Seller hereby conveys to Purchaser all of Seller's right, title and interest in and to the Membership Interest so that upon the Effective Date, Purchaser is admitted as a member of the Company, Seller withdraws as a member from the Company, and Purchaser shall own eighty seven and 50/100 percent (87.50%) of the membership interests in the Company.  Purchaser hereby accepts the Membership Interest subject at all times to the terms and conditions of the Operating Agreement and agrees to be bound by its terms.

2. Amendment to Operating Agreement.  As of the Effective Date, this Agreement shall amend the Operating Agreement to reflect that Seller has withdrawn from the Company as a member and that Purchaser owns the Membership Interest.

3. Assumption of Liability.  Purchaser agrees to be bound by the terms of the Operating Agreement and, except to the extent expressly set forth in the Purchase Agreement, assumes and agrees to pay and discharge when and as due all liabilities, obligations and responsibilities of Seller to the Company arising from and after the Effective Date.

4. Further Assurances.  The parties hereto and each of them agree at the time and from time to time to execute any and all documents reasonably requested by the other to carry out the intent of this Agreement.

5. Incorporation.  The terms, conditions and provisions of the Purchase Agreement, including without limitation the indemnity obligations, are hereby incorporated herein as if fully rewritten.

6. Governing Laws.  The validity, meaning and effect of this Agreement shall be determined in accordance with the laws of the State of Nevada applicable to contracts to be performed therein.

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 agreement.

8. Binding Effect.  This Agreement shall be binding on and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns.  The provisions of this Agreement are intended to survive the sale of the Membership Interest.  This Agreement may not be amended other than by a written agreement signed by all the parties hereto.  The terms of this Agreement shall survive the assignment of the Membership Interests herein.

[Signature page follows.]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first above written.

	
SELLER:

 

	
__________________,

a __________________

 

By:  

 Name:

Title:

 

	
PURCHASER:

	
_______________________________,

a ________________________________

 

By:  

 Name:  ______________________

Title:  ______________________

 

EXHIBIT 1

Operating Agreement

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