Document:

Exhibit
10.1

 

PROPHASE
LABS, INC.

 

COMMON
STOCK

 

SALES
AGREEMENT

 

September
23, 2020

 

A.G.P./Alliance
Global Partners

590
Madison Avenue

New
York, NY 10022

 

Ladies
and Gentlemen:

 

ProPhase
Labs, Inc., a Delaware corporation (the “Company”), confirms its agreement (this “Agreement”)
with A.G.P./Alliance Global Partners, as follows:

 

1.       Issuance
and Sale of Shares. The Company agrees that, from time to time during the term of this Agreement, on the terms and subject
to the conditions set forth herein, it may issue and sell to or through A.G.P./Alliance Global Partners, acting as agent and/or
principal (the “Sales Agent”), shares of the Company’s common stock, par value $0.0005 per share
(the “Common Stock”), subject to the limitations set forth in Section 3(b) hereof. The issuance
and sale of shares of Common Stock to or through the Sales Agent will be effected pursuant to the Registration Statement (as defined
below) filed by the Company and which was declared effective under the Securities Act (as defined below) by the U.S. Securities
and Exchange Commission (the “Commission”).

 

The
Company has filed, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations
thereunder (collectively, the “Securities Act”), with the Commission, not earlier than three years prior
to the date hereof, a shelf registration statement on Form S-3 (File No. 333-225875), including a base prospectus, relating to
certain securities, including the Common Stock, to be issued from time to time by the Company, and which incorporates by reference
documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder (collectively, the “Exchange Act”). The Company has
prepared a prospectus supplement to the base prospectus included as part of such registration statement specifically relating
to the offering of Common Stock pursuant to this Agreement (the “ATM Prospectus”). As soon as practicable
following the date of filing of the ATM Prospectus, the Company will furnish to the Sales Agent, for use by the Sales Agent, copies
of the ATM Prospectus. The Company may file one or more additional registration statements from time to time that will contain
a base prospectus and related prospectus or prospectus supplement (which shall be an ATM Prospectus) with respect to the Placement
Shares (as defined below). Except where the context otherwise requires, each such registration statement, as amended, when it
became effective, including all documents filed as part thereof or incorporated by reference therein, and including any information
contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities
Act or deemed to be a part of such registration statement pursuant to Rule 430B or 462(b) of the Securities Act, is herein called
the “Registration Statement.” The base prospectus, including all documents incorporated therein by reference
(to the extent such information has not been superseded or modified in accordance with Rule 412 under the Securities Act (as qualified
by Rule 430B(g) of the Securities Act)), and the ATM Prospectus, including all documents incorporated therein by reference (to
the extent such information has not been superseded or modified in accordance with Rule 412 under the Securities Act (as qualified
by Rule 430B(g) of the Securities Act)), each of which is included in the Registration Statement, as it or they may be supplemented
by any additional prospectus supplement, in the form in which such prospectus and/or ATM Prospectus have most recently been filed
by the Company with the Commission pursuant to Rule 424(b) under the Securities Act, together with any “issuer free writing
prospectus” (“Issuer Free Writing Prospectus”), as defined in Rule 433 of the Securities Act (“Rule
433”), relating to the Placement Shares that (i) is required to be filed with the Commission by the Company or (ii)
is exempt from filing pursuant to Rule 433(d)(5)(i), in each case in the form filed or required to be filed with the Commission
or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g), is herein called
the “Prospectus.” Any reference herein to the Registration Statement, the Prospectus or any amendment
or supplement thereto shall be deemed to refer to and include the documents incorporated by reference therein, and any reference
herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration
Statement or the Prospectus shall be deemed to refer to and include the filing after the execution hereof of any document with
the Commission deemed to be incorporated by reference therein. For purposes of this Agreement, all references to the Registration
Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include any copy filed with the Commission
pursuant to either the Electronic Data Gathering Analysis and Retrieval System, or if applicable, the Interactive Data Electronic
Applications (collectively “EDGAR”).

 

    	 

     

    

 

2.       Placements.
Each time that the Company wishes to issue and sell shares of Common Stock through the Sales Agent, as agent, hereunder (each,
a “Placement”), it will notify the Sales Agent by email notice (or other method mutually agreed to in
writing by the parties) (a “Placement Notice”) containing the parameters in accordance with which it
desires the Common Stock to be sold, which shall at a minimum include the number of shares of Common Stock to be issued (the “Placement
Shares”), the time period during which sales are requested to be made, any limitation on the number of shares of
Common Stock that may be sold in any one Trading Day (as defined in Section 3) and any minimum price below which sales
may not be made, a form of which containing such minimum sales parameters necessary is attached hereto as Schedule 1.
The Placement Notice shall originate from any of the individuals from the Company set forth on Schedule 2 (with
a copy to each of the other individuals from the Company listed on such schedule), and shall be addressed to each of the individuals
from the Sales Agent set forth on Schedule 2, as such Schedule 2 may be amended from time to time.
The Placement Notice shall be effective upon receipt by the Sales Agent unless and until (i) in accordance with the notice requirements
set forth in Section 4, the Sales Agent declines to accept the terms contained therein for any reason, in its sole discretion,
(ii) the entire amount of the Placement Shares have been sold, (iii) in accordance with the notice requirements set forth in Section
4, the Company suspends or terminates the Placement Notice, (iv) the Company issues a subsequent Placement Notice with parameters
superseding those on the earlier dated Placement Notice, or (v) the Agreement has been terminated under the provisions of Section
11. The amount of any discount, commission or other compensation to be paid by the Company to the Sales Agent in connection
with the sale of the Placement Shares through the Sales Agent, as agent, shall be as set forth in Schedule 3. It
is expressly acknowledged and agreed that neither the Company nor the Sales Agent will have any obligation whatsoever with respect
to a Placement or any Placement Shares unless and until the Company delivers a Placement Notice to the Sales Agent and the Sales
Agent does not decline such Placement Notice pursuant to the terms set forth above, and then only upon the terms specified therein
and herein. In the event of a conflict between the terms of this Agreement and the terms of a Placement Notice, the terms of the
Placement Notice will control.

 

3.       Sale
of Placement Shares by the Sales Agent.

 

(a)       Subject
to the terms and conditions herein set forth, upon the Company’s issuance of a Placement Notice, and unless the sale of
the Placement Shares described therein has been declined, suspended, or otherwise terminated in accordance with the terms of this
Agreement, the Sales Agent, as agent for the Company, will use its commercially reasonable efforts consistent with its normal
trading and sales practices and applicable state and federal laws, rules and regulations and the rules of The Nasdaq Capital Market
(the “Exchange”), for the period specified in the Placement Notice, to sell such Placement Shares up
to the amount specified by the Company in, and otherwise in accordance with the terms of such Placement Notice. If acting as agent
hereunder, the Sales Agent will provide written confirmation to the Company (including by email correspondence to each of the
individuals of the Company set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by
any of the individuals to whom the notice is sent, other than via auto-reply) no later than the opening of the Trading Day (as
defined below) immediately following the Trading Day on which it has made sales of Placement Shares hereunder setting forth the
number of Placement Shares sold on such day, the compensation payable by the Company to the Sales Agent pursuant to Section
2 with respect to such sales, and the Net Proceeds (as defined below) payable to the Company, with an itemization of the deductions
made by the Sales Agent (as set forth in Section 5(a)) from the gross proceeds that it receives from such sales. Subject
to the terms of the Placement Notice, the Sales Agent may sell Placement Shares by any method permitted by law deemed to be an
“at the market” offering as defined in Rule 415 under the Securities Act, including without limitation sales made
directly on the Exchange, on any other existing trading market for the Common Stock or to or through a market maker (other than
the Toronto Stock Exchange or any other exchange or trading market in Canada). Subject to the terms of a Placement Notice, the
Sales Agent may also sell Placement Shares by any other method permitted by law and as permitted by the Exchange, including, but
not limited to, in negotiated transactions with the Company’s prior written consent. The Company acknowledges and agrees
that (i) there can be no assurance that the Sales Agent will be successful in selling Placement Shares, (ii) the Sales Agent will
incur no liability or obligation to the Company or any other person or entity if it does not sell Placement Shares for any reason
other than a failure by the Sales Agent to use its commercially reasonable efforts consistent with its normal trading and sales
practices and applicable law and regulations to sell such Placement Shares as required under this Agreement and (iii) the Sales
Agent shall be under no obligation to purchase Placement Shares on a principal basis pursuant to this Agreement, except as otherwise
agreed by the Sales Agent and the Company in writing and expressly set forth in a Placement Notice. For the purposes hereof, “Trading
Day” means any day on which the Company’s Common Stock is purchased and sold on the principal market on which
the Common Stock is listed or quoted.

 

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(b)       Under
no circumstances shall the Company cause or request the offer or sale of any Placement Shares if, after giving effect to the sale
of such Placement Shares, the aggregate number or gross sales proceeds of Placement Shares sold pursuant to this Agreement would
exceed the lesser of: (i) the number or dollar amount of shares of Common Stock registered pursuant to the Registration Statement
pursuant to which the offering hereunder is being made, (ii) the number of authorized but unissued and unreserved shares of Common
Stock, (iii) the number or dollar amount of shares of Common Stock permitted to be offered and sold by the Company under Form
S-3 (including General Instruction I.B.6. of Form S-3, if and for so long as applicable), (iv) the number or dollar amount of
shares of Common Stock authorized from time to time to be issued and sold under this Agreement by the Company’s board of
directors, a duly authorized committee thereof or a duly authorized executive committee, and notified to the Sales Agent in writing,
or (v) the number or dollar amount of shares of Common Stock for which the Company has filed the ATM Prospectus or other prospectus
supplement specifically relating to the offering of the Placement Shares pursuant to this Agreement. Under no circumstances shall
the Company cause or request the offer or sale of any Placement Shares pursuant to this Agreement at a price lower than the minimum
price authorized from time to time by the Company’s board of directors, a duly authorized committee thereof or a duly authorized
executive committee, and notified to the Sales Agent in writing. Notwithstanding anything to the contrary contained herein, the
parties hereto acknowledge and agree that compliance with the limitations set forth in this Section 3(b) on the number
or dollar amount of Placement Shares that may be issued and sold under this Agreement from time to time shall be the sole responsibility
of the Company, and that the Sales Agent shall have no obligation in connection with such compliance.

 

(c)       During
the term of this Agreement, neither the Sales Agent nor any of its affiliates or subsidiaries shall engage in (i) any short sale
of any security of the Company or (ii) any sale of any security of the Company that the Sales Agent does not own or any sale that
is consummated by the delivery of a security of the Company borrowed by, or for the account of, the Sales Agent. During the term
of this Agreement and notwithstanding anything to the contrary herein, the Sales Agent agrees that in no event will the Sales
Agent or its affiliates engage in any market making, bidding, stabilization or other trading activity with regard to the Common
Stock or related derivative securities if such activity would be prohibited under Regulation M or other anti-manipulation rules
under the Exchange Act.

 

4.       Suspension
of Sales.

 

(a)       The
Company or the Sales Agent may, upon notice to the other party in writing (including by email correspondence to each of the individuals
of the other party set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by any of
the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile
transmission or email correspondence to each of the individuals of the other party set forth on Schedule 2), suspend
any sale of Placement Shares for a period of time (a “Suspension Period”); provided, however,
that such suspension shall not affect or impair either party’s obligations with respect to any Placement Shares sold hereunder
prior to the receipt of such notice. Each of the parties agrees that no such notice under this Section 4 shall be effective
against the other unless it is made to one of the individuals named on Schedule 2 hereto, as such schedule may be
amended from time to time. During a Suspension Period, the Company shall not issue any Placement Notices and the Sales Agent shall
not sell any Placement Shares hereunder. The party that issued a suspension notice shall notify the other party in writing of
the Trading Day on which the Suspension Period shall expire not later than twenty-four (24) hours prior to such Trading Day.

 

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(b)       Notwithstanding
any other provision of this Agreement, during any period in which the Company is in possession of material non-public information,
the Company and the Sales Agent agree that (i) no sale of Placement Shares will take place, (ii) the Company shall not request
the sale of any Placement Shares, and (iii) the Sales Agent shall not be obligated to sell or offer to sell any Placement Shares.

 

5.       Settlement.

 

(a)       Settlement
of Placement Shares. Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares
will occur on the second (2nd) Trading Day (or such earlier day as is industry practice for regular-way trading) following
the respective Point of Sale (as defined below) (each, a “Settlement Date”). The amount of proceeds
to be delivered to the Company on a Settlement Date against receipt of the Placement Shares sold (the “Net Proceeds”)
will be equal to the aggregate sales price received by the Sales Agent at which such Placement Shares were sold, after deduction
for (i) the Sales Agent’s discount, commission or other compensation for such sales payable by the Company pursuant to Section
2 hereof, and (ii) any transaction fees imposed by any clearing organization or any governmental or self-regulatory organization
in respect of such sales.

 

(b)       Delivery
of Placement Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically
transfer the Placement Shares being sold by crediting the Sales Agent’s or its designee’s account (provided the Sales
Agent shall have given the Company written notice of such designee prior to the Settlement Date) at The Depository Trust Company
through its Deposit and Withdrawal at Custodian System or by such other means of delivery as may be mutually agreed upon by the
parties hereto which in all cases shall result in the issuance of freely tradable, transferable, registered shares in good deliverable
form. On each Settlement Date, the Sales Agent will deliver the related Net Proceeds in same day funds to an account designated
by the Company on, or prior to, the Settlement Date. The Company agrees that if the Company, or its transfer agent (if applicable),
defaults in its obligation to deliver duly authorized Placement Shares on a Settlement Date, through no fault of the Sales Agent,
the Company agrees that in addition to and in no way limiting the rights and obligations set forth in Section 9(a) (Indemnification
and Contribution), the Company will (i) hold the Sales Agent, its directors, officers, members, partners, employees and agents
of the Sales Agent, each broker dealer affiliate of the Sales Agent, and each person, if any, who (A) controls the Sales Agent
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act or (B) is controlled by or is under common
control with the Sales Agent (each, a “Sales Agent Affiliate”), and the Sales Agent’s clearing
organization, harmless against any loss, claim, damage, or actual, reasonable and documented expense (including actual, reasonable
and documented legal fees and expenses), as incurred, arising out of or in connection with such default by the Company or its
transfer agent (if applicable) and (ii) pay to the Sales Agent any commission, discount, or other compensation to which it would
otherwise have been entitled absent such default.

 

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6.       Representations
and Warranties of the Company. The Company represents and warrants to, and agrees with, the Sales Agent that as of the date
hereof and each Applicable Time (as defined in Section 21(a)), unless such representation, warranty or agreement specifies
a different time or times:

 

(a)       Compliance
with Registration Requirements. The Registration Statement and any Rule 462(b) Registration Statement have been declared effective
by the Commission under the Securities Act. The Company has complied, to the Commission’s satisfaction, with all requests
of the Commission for additional or supplemental information related to the Registration Statement and the Prospectus. No stop
order suspending the effectiveness of the Registration Statement or any Rule 462(b) Registration Statement is in effect and no
proceedings for such purpose have been instituted or are pending or, to the knowledge of the Company, are contemplated or threatened
by the Commission. The Registration Statement and, assuming no act or omission on the part of the Sales Agent that would make
statements therein untrue, the offer and sale of the Placement Shares as contemplated hereby meet the requirements of Rule 415
under the Securities Act and comply in all material respects with said Rule. In the section entitled “Plan of Distribution”
in the ATM Prospectus, the Company has named A.G.P./Alliance Global Partners as an agent that the Company has engaged in connection
with the transactions contemplated by this Agreement. The Company was not and is not an “ineligible issuer” as defined
in Rule 405 under the Securities Act.

 

(b)       No
Misstatement or Omission. The Registration Statement and any post-effective amendment thereto, at the time it became or becomes
effective, complied or will comply in all material respects with the Securities Act. The Prospectus, and any amendment or supplement
thereto, on the date of such Prospectus or amendment or supplement, complied or will comply in all material respects with the
Securities Act. The Registration Statement and any post-effective amendment thereto, at the time it became or becomes effective,
did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading. The Prospectus, as amended or supplemented, as of its date, did not
and, as of each Point of Sale and each Settlement Date, will not contain any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading. The representations and warranties set forth in the two immediately preceding sentences do not apply to statements
in or omissions from the Registration Statement or any post-effective amendment thereto, or the Prospectus, or any amendments
or supplements thereto, made in reliance upon and in conformity with information relating to the Sales Agent furnished to the
Company in writing by the Sales Agent expressly for use therein. The parties acknowledge and agree that such information relating
to the Sales Agent furnished to the Company by or on behalf of the Sales Agent consists solely of the following disclosure contained
in the section of the ATM Prospectus titled “Plan of Distribution”: the contents of the ninth paragraph (collectively,
the “Sales Agent Information”). “Point of Sale” means, for a Placement, the
time at which an acquiror of Placement Shares entered into a contract, binding upon such acquiror, to acquire such Placement Shares.

 

(c)       Offering
Materials Furnished to the Sales Agent. Copies of the Registration Statement, the Prospectus, and all amendments or supplements
thereto and all documents incorporated by reference therein that were filed with the Commission on or prior to the date of this
Agreement, have been delivered, or are publicly available through EDGAR, to the Sales Agent. Each Prospectus delivered to the
Sales Agent for use in connection with the sale of the Placement Shares pursuant to this Agreement will be identical to the version
of such Prospectus filed with the Commission via EDGAR, except to the extent permitted by Regulation S-T.

 

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(d)       Distribution
of Offering Material By the Company. The Company has not distributed and will not distribute, prior to the completion of the
Sales Agent’s distribution of the Placement Shares, any offering material in connection with the offering and sale of the
Placement Shares other than the Prospectus or the Registration Statement.

 

(e)       The
Sales Agreement. This Agreement has been duly authorized, executed and delivered by the Company, and constitutes a valid,
legal, and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as rights to
indemnity hereunder may be limited by federal or state securities laws and except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally, and subject to general principles
of equity. The Company has full corporate power and authority to enter into this Agreement and to authorize, issue and sell the
Placement Shares as contemplated by this Agreement. This Agreement conforms in all material respects to the descriptions thereof
in the Registration Statement and the Prospectus.

 

(f)       Authorization
of the Placement Shares. The Placement Shares, when issued and paid for as contemplated herein, will be validly issued, fully
paid and nonassessable, will be issued in compliance with all applicable securities laws, and will be free of preemptive, registration
or similar rights, and will conform to the description of the Common Stock contained in the Registration Statement and the Prospectus.

 

(g)       No
Applicable Registration or Other Similar Rights. There are no persons with registration or other similar rights to have any
equity or debt securities registered for sale under the Registration Statement or included in the offering contemplated by this
Agreement, except for such rights as have been duly waived. No person has the right to act as an underwriter or as a financial
advisor to the Company in connection with the offer and sale of the Placement Shares hereunder, whether as a result of the filing
or effectiveness of the Registration Statement, the filing of the ATM Prospectus or the sale of the Placement Shares as contemplated
hereby or otherwise.

 

(h)       No
Material Adverse Change. Except as otherwise disclosed in the Prospectus, subsequent to the respective dates as of which information
is given in the Prospectus: (i) there has been no material adverse change in the business, properties, prospects, operations,
condition (financial or otherwise) or results of operations of the Company or any of the Subsidiaries (as defined below) (any
such change is called a “Material Adverse Change”), or any development involving a prospective material
adverse change, which, individually or in the aggregate, has had or would reasonably be expected to result in a Material Adverse
Change; (ii) neither the Company nor any of the Subsidiaries has incurred any material liability or obligation, indirect, direct
or contingent, not in the ordinary course of business nor entered into any material transaction or agreement not in the ordinary
course of business; (iii) there has been no dividend or distribution of any kind declared, paid or made by the Company; (iv) no
officer or director of the Company has resigned from any position with the Company; and (v) there has not been any Material Adverse
Change in the Company’s long-term or short-term debt.

 

(i)       Independent
Accountants. To the knowledge of the Company, Eisner Amper LLP, whose report is filed with the Commission and included or
incorporated by reference in the Registration Statement and the Prospectus, is an independent registered public accounting firm
as required by the Securities Act and the Public Company Accounting Oversight Board. Except as may otherwise be disclosed in the
Registration Statement and the Prospectus, Eisner Amper LLP has not, during the periods covered by the financial statements included
or incorporated by reference in the Registration Statement and the Prospectus, provided to the Company any non-audit services,
as such term is used in Section 10A(g) of the Exchange Act.

 

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(j)       Financial
Statements. The financial statements, including the notes thereto and supporting schedules included or incorporated by reference
in the Registration Statement and the Prospectus, fairly present in all material respects the financial position and the results
of operations of the Company at the dates and for the periods to which they apply; and such financial statements have been prepared
in conformity with U.S. generally accepted accounting principles (“GAAP”), consistently applied throughout
the periods involved (provided that unaudited interim financial statements are subject to year-end audit adjustments that are
not expected to be material in the aggregate and do not contain all footnotes required by GAAP); and the supporting schedules
included in the Registration Statement and the Prospectus present fairly the information required to be stated therein. Except
as included or incorporated by reference therein, no historical or pro forma financial statements are required to be included
or incorporated by reference in the Registration Statement or the Prospectus under the Securities Act. The pro forma and pro forma
as adjusted financial information and the related notes, if any, included or incorporated by reference in the Registration Statement
and the Prospectus have been properly compiled and prepared in accordance with the applicable requirements of the Securities Act
and present fairly the information shown therein, and the assumptions used in the preparation thereof are reasonable and the adjustments
used therein are appropriate to give effect to the transactions and circumstances referred to therein. All disclosures contained
in the Registration Statement or the Prospectus regarding “non-GAAP financial measures” (as such term is defined by
the rules and regulations of the Commission), if any, comply in all material respects with Regulation G of the Exchange Act and
Item 10 of Regulation S-K of the Securities Act, to the extent applicable. Each of the Registration Statement and the Prospectus
discloses all material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other
relationships of the Company with unconsolidated entities or other persons that may have a material current or future effect on
the Company’s financial condition, changes in financial condition, results of operations, liquidity, capital expenditures,
capital resources, or significant components of revenues or expenses.

 

(k)       Forward-Looking
Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act) contained in the Registration Statement or the Prospectus has been made or reaffirmed by the Company without a reasonable
basis or has been disclosed by the Company other than in good faith.

 

(l)       Statistical
and Marketing-Related Data. The statistical and market-related data included in each of the Registration Statement and the
Prospectus are based on or derived from sources that the Company reasonably and in good faith believes are reliable and accurate
or represent the Company’s good faith estimates that are made on the basis of data derived from such sources.

 

(m)       XBRL.
The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement
fairly presents the information called for in all material respects and has been prepared in accordance with the Commission’s
rules and guidelines applicable thereto.

 

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(n)       Incorporation
and Good Standing of the Company. The Company is a corporation duly incorporated and validly existing under the laws of the
State of Delaware. The Company has requisite corporate power to carry on its business as described in the Prospectus. The Company
is duly qualified to transact business and is in good standing in all jurisdictions in which the conduct of its business requires
such qualification; except where the failure to be so qualified or to be in good standing would not result in a Material Adverse
Change. The Company has no subsidiaries and does not own or control, directly or indirectly, any corporation, association or other
entity, in either case other than the subsidiaries listed in Schedule 4 (collectively, the “Subsidiaries,”
and each, a “Subsidiary”).

 

(o)       Capital
Stock Matters. All issued and outstanding securities of the Company issued prior to the transactions contemplated by this
Agreement have been duly authorized and validly issued and are fully paid and non-assessable; the holders thereof have no rights
of rescission with respect thereto, and are not subject to personal liability by reason of being such holders; and none of such
securities were issued in violation of the preemptive rights of any holders of any security of the Company or similar contractual
rights granted by the Company. The authorized shares of Common Stock conform in all material respects to all statements relating
thereto contained in the Registration Statement and the Prospectus. The offers and sales of the outstanding shares of Common Stock
were at all relevant times either registered under the Securities Act and the applicable state securities or “blue sky”
laws or, based in part on the representations and warranties of the purchasers of such shares, exempt from such registration requirements.
The description of the Company’s stock option, stock bonus and other stock plans or arrangements, and the options or other
rights granted thereunder, as described in the Registration Statement and the Prospectus, accurately and fairly present, in all
material respects, the information required to be shown with respect to such plans, arrangements, options and rights.

 

(p)       Non-Contravention
of Existing Instruments; No Further Authorizations or Approvals Required. The Company’s execution, delivery and performance
of this Agreement and consummation of the transactions contemplated hereby or by the Registration Statement and the Prospectus
(including the issuance and sale of the Placement Shares and the use of the proceeds from the sale of the Placement Shares as
described in the Prospectus under the caption “Use of Proceeds”) will not (A) result in a material violation of any
existing applicable law, rule, regulation, judgment, order or decree of any Governmental Entity as of the date hereof, (B) conflict
with, result in any violation or breach of, or constitute a default (or an event that with notice or lapse of time or both would
become a default) under, or give to others any right of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) (a “Default Acceleration Event”) of, any agreement, lease, credit facility,
debt, note, bond, mortgage, indenture or other instrument (“Contract”) or obligation or other understanding
to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound
or affected, except to the extent that such conflict, default, or Default Acceleration Event is not reasonably likely to result
in a Material Adverse Change, or (C) result in a breach or violation of any of the terms and provisions of, or constitute a default
under, the Company’s certificate of incorporation (as the same may be amended or restated from time to time) or bylaws (as
the same may be amended or restated from time to time). The Company is not in violation, breach or default under its certificate
of incorporation (as the same may be amended or restated from time to time) or bylaws (as the same may be amended or restated
from time to time). None of the Company, the Subsidiaries, nor, to the Company’s knowledge, any other party is in violation,
breach or default of any Contract that has resulted in or could reasonably be expected to result in a Material Adverse Change.
Each approval, consent, order, authorization, designation, declaration or filing by or with any regulatory, administrative or
other governmental body necessary in connection with the execution and delivery by the Company of this Agreement and the performance
of the Company of the transactions herein contemplated has been obtained or made and is in full force and effect, except filings
with the Commission required under the Securities Act or the Exchange Act, or filings with the Exchange pursuant to the rules
and regulations of the Exchange, in each case that are contemplated by this Agreement to be made after the date of this Agreement,
and such additional steps as may be necessary to qualify the Common Stock for sale by the Sales Agent under state securities or
Blue Sky laws.

 

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(q)       No
Material Actions or Proceedings. There is no material action, suit, proceeding, inquiry, arbitration, investigation, litigation
or governmental proceeding pending or, to the Company’s knowledge, threatened against, or involving the Company, any Subsidiary
or, to the Company’s knowledge, any executive officer or director, which has not been disclosed in the Registration Statement
and the Prospectus which is required to be disclosed.

 

(r)       Labor
Disputes. No labor dispute with the employees of the Company or any Subsidiary exists or, to the knowledge of the Company,
is imminent. The Company is not aware that any key employee or significant group of employees of the Company or any Subsidiary
plans to terminate employment with the Company.

 

(s)       Compliance
with Certain Applicable Laws. The Company and the Subsidiaries: (A) are and at all times have been in compliance with all
statutes, rules, or regulations applicable to the ownership, testing, development, manufacture, packaging, processing, use, distribution,
marketing, labeling, promotion, sale, offer for sale, storage, import, export or disposal of any product manufactured or distributed
by the Company (“Applicable Laws”), except as could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Change; (B) have not received any warning letter, untitled letter or other correspondence
or notice from any governmental authority alleging or asserting noncompliance with any Applicable Laws or any licenses, certificates,
approvals, clearances, authorizations, permits and supplements or amendments thereto required by any such Applicable Laws (“Authorizations”);
(C) possesses all material Authorizations and such Authorizations are valid and in full force and effect and are not in material
violation of any term of any such Authorizations; (D) have not received notice of any claim, action, suit, proceeding, hearing,
enforcement, investigation, arbitration or other action from any governmental authority or third party alleging that any product
operation or activity is in violation of any Applicable Laws or Authorizations and have no knowledge that any such governmental
authority or third party is considering any such claim, litigation, arbitration, action, suit, investigation or proceeding, except
as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Change; (E) have not received
notice that any governmental authority has taken, is taking or intends to take action to limit, suspend, modify or revoke any
Authorizations and have no knowledge that any such governmental authority is considering such action, except as could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Change; and (F) have filed, obtained, maintained or submitted
all material reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required
by any Applicable Laws or Authorizations and that all such reports, documents, forms, notices, applications, records, claims,
submissions and supplements or amendments were complete and correct on the date filed (or were corrected or supplemented by a
subsequent submission).

 

    	 	9	 

    	 	 	 

    

 

(t)       Tax
Law Compliance. The Company has filed all returns (as hereinafter defined) required to be filed with taxing authorities prior
to the date hereof and each Applicable Time or has duly obtained extensions of time for the filing thereof. The Company has paid
all taxes (as hereinafter defined) shown as due on such returns that were filed and has paid all taxes imposed on or assessed
against the Company. The provisions for taxes payable, if any, shown on the financial statements filed with or as part of or incorporated
by reference in the Registration Statement are sufficient for all accrued and unpaid taxes, whether or not disputed, and for all
periods to and including the dates of such consolidated financial statements. Other than as disclosed in the Registration Statement
and the Prospectus, (i) no material issues have been raised (and are currently pending) by any taxing authority in connection
with any of the returns or taxes asserted as due from the Company or any Subsidiary, and (ii) no waivers of statutes of limitation
with respect to the returns or collection of taxes have been given by or requested from the Company or any Subsidiary. There are
no tax liens against the assets, properties or business of the Company or any Subsidiary. The term “taxes”
means all federal, state, local, foreign and other net income, gross income, gross receipts, sales, use, ad valorem, transfer,
franchise, profits, license, lease, service, service use, withholding, payroll, employment, excise, severance, stamp, occupation,
premium, property, windfall profits, customs, duties or other taxes, fees, assessments or charges of any kind whatever, together
with any interest and any penalties, additions to tax or additional amounts with respect thereto. The term “returns”
means all returns, declarations, reports, statements and other documents required to be filed in respect to taxes.

 

(u)       Company
Not an “Investment Company”. The Company is not, and will not be, either after receipt of payment for the Placement
Shares or after the application of the proceeds therefrom as described under “Use of Proceeds” in the Registration
Statement or the Prospectus, required to register as an “investment company” under the Investment Company Act of 1940,
as amended (the “Investment Company Act”).

 

(v)       Insurance.
The Company carries or is entitled to the benefits of insurance with reputable insurers, in such amounts and covering such risks
which the Company believes are adequate, and all such insurance is in full force and effect. The Company has no reason to believe
that it will not be able (i) to renew its existing insurance coverage as and when such policies expire or (ii) to obtain comparable
coverage from similar institutions as may be necessary or appropriate to conduct its business as now conducted and at a cost that
would not result in a Material Adverse Change.

 

(w)       No
Price Stabilization or Manipulation. The Company has not taken, directly or indirectly (without giving any effect to the activities
of the Sales Agent), any action designed to or that might cause or result in stabilization or manipulation of the price of the
Common Stock or of any “reference security” (as defined in Rule 100 of Regulation M under the Exchange Act (“Regulation
M”)) with respect to the Common Stock, whether to facilitate the sale or resale of the Placement Shares or otherwise,
and has taken no action which would directly or indirectly violate Regulation M.

 

    	 	10	 

    	 	 	 

    

 

(x)       Related
Party Transactions. There are no business relationships or related party transactions involving the Company or any other person
required to be described in the Registration Statement and the Prospectus that have not been described as required pursuant to
the Securities Act or the Exchange Act.

 

(y)       Exchange
Act Compliance. The documents incorporated or deemed to be incorporated by reference in the Registration Statement, the Prospectus
or any amendment or supplement thereto, at the time they were or hereafter are filed with the Commission under the Exchange Act,
complied and will comply in all material respects with the requirements of the Exchange Act, and, when read together with the
other information in the Prospectus, at each Point of Sale and each Settlement Date, will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(z)       Conformity
of Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus conformed or will conform in all material respects
to the requirements of the Securities Act on the date of first use, and the Company has complied or will comply with any filing
requirements applicable to such Issuer Free Writing Prospectus pursuant to the Securities Act. Each Issuer Free Writing Prospectus,
as of its issue date and each Point of Sale and Settlement Date, did not, does not and will not include any information that conflicted,
conflicts or will conflict with the information contained in the Registration Statement or the Prospectus, including any document
incorporated by reference therein that has not been superseded or modified. The Company has not made any offer relating to the
Placement Shares that would constitute an Issuer Free Writing Prospectus without the prior written consent of the Sales Agent.
The Company has retained in accordance with the Securities Act all Issuer Free Writing Prospectuses that were not required to
be filed pursuant to the Securities Act.

 

(aa) Compliance
with Environmental Laws. To the knowledge of the Company, the Company and the Subsidiaries are in compliance with all foreign,
federal, state and local rules, laws and regulations relating to the use, treatment, storage and disposal of hazardous or toxic
substances or waste and protection of health and safety or the environment which are applicable to its business (“Environmental
Laws”), except where the failure to comply would not, singularly or in the aggregate, result in a Material Adverse
Change. There has been no storage, generation, transportation, handling, treatment, disposal, discharge, emission, or other release
of any kind of toxic or other wastes or other hazardous substances by, due to, or caused by the Company or any Subsidiary (or,
to the Company’s knowledge, any other entity for whose acts or omissions the Company is or may otherwise be liable) upon
any of the property now or previously owned or leased by the Company, or upon any other property, in violation of any law, statute,
ordinance, rule, regulation, order, judgment, decree or permit or which would, under any law, statute, ordinance, rule (including
rule of common law), regulation, order, judgment, decree or permit, give rise to any liability, except for any violation or liability
which would not have, singularly or in the aggregate with all such violations and liabilities, a Material Adverse Change; and
there has been no disposal, discharge, emission or other release of any kind onto such property or into the environment surrounding
such property of any toxic or other wastes or other hazardous substances with respect to which the Company has knowledge, except
for any such disposal, discharge, emission, or other release of any kind which would not have, singularly or in the aggregate
with all such discharges and other releases, a Material Adverse Change.

 

    	 	11	 

    	 	 	 

    

 

(bb) Intellectual
Property. The Company, together with the Subsidiaries, owns or possesses or has valid rights to use all patents, patent applications,
trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, inventions,
trade secrets and similar rights (“Intellectual Property Rights”) necessary for the conduct of the business
of the Company as currently carried on and as described in the Registration Statement and the Prospectus, except as would not
be reasonably likely to result in a Material Adverse Change. To the knowledge of the Company, no action or use by the Company
necessary for the conduct of its business as currently carried on and as described in the Registration Statement and the Prospectus
will involve or give rise to any infringement of, or license or similar fees for, any Intellectual Property Rights of others,
except where such action, use, license or fee is not reasonably likely to result in a Material Adverse Change. Neither the Company
nor any Subsidiary has received any notice alleging any such infringement, fee or conflict with asserted Intellectual Property
Rights of others. Except as would not reasonably be expected to result, individually or in the aggregate, in a Material Adverse
Change (A) to the knowledge of the Company, there is no infringement, misappropriation or violation by third parties of any of
the Intellectual Property Rights owned by the Company or any Subsidiary; (B) there is no pending or, to the knowledge of the Company,
threatened action, suit, proceeding or claim by others challenging the rights of the Company or any Subsidiary in or to any such
Intellectual Property Rights, and the Company is unaware of any facts which would form a reasonable basis for any such claim,
that would, individually or in the aggregate, together with any other claims in this Section 6(bb), reasonably be expected
to result in a Material Adverse Change; (C) the Intellectual Property Rights owned by the Company or any Subsidiary and, to the
knowledge of the Company, the Intellectual Property Rights licensed to the Company or any Subsidiary have not been adjudged by
a court of competent jurisdiction invalid or unenforceable, in whole or in part, and there is no pending or, to the Company’s
knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property
Rights, and the Company is unaware of any facts which would form a reasonable basis for any such claim that would, individually
or in the aggregate, together with any other claims in this Section 6(bb), reasonably be expected to result in a Material
Adverse Change; (D) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by
others that the Company or any Subsidiary infringes, misappropriates or otherwise violates any Intellectual Property Rights or
other proprietary rights of others, the Company has not received any written notice of such claim and the Company is unaware of
any other facts which would form a reasonable basis for any such claim that would, individually or in the aggregate, together
with any other claims in this Section 6(bb), reasonably be expected to result in a Material Adverse Change; and (E) to
the Company’s knowledge, no employee of the Company or any Subsidiary is in or has ever been in violation in any material
respect of any term of any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement,
non-solicitation agreement, nondisclosure agreement or any restrictive covenant to or with a former employer where the basis of
such violation relates to such employee’s employment with the Company or such Subsidiary, or actions undertaken by the employee
while employed with the Company and could reasonably be expected to result, individually or in the aggregate, in a Material Adverse
Change. To the Company’s knowledge, all material technical information developed by and belonging to the Company or any
Subsidiary which has not been patented has been kept confidential. Neither the Company nor any Subsidiary is a party to or bound
by any options, licenses or agreements with respect to the Intellectual Property Rights of any other person or entity that are
required to be set forth in the Registration Statement and the Prospectus and are not described therein. The Registration Statement
and the Prospectus contain in all material respects the same description of the matters set forth in the preceding sentence. None
of the technology employed by the Company or any Subsidiary has been obtained or is being used by the Company or any Subsidiary
in violation of any contractual obligation binding on the Company or any Subsidiary or, to the Company’s knowledge, any
of its officers, directors or employees, or otherwise in violation of the rights of any persons.

 

    	 	12	 

    	 	 	 

    

 

(cc) Brokers.
The Company is not a party to any contract, agreement or understanding with any person (other than as contemplated by this Agreement)
that would give rise to a valid claim against the Company or the Sales Agent for a brokerage commission, finder’s fee or
like payment in connection with the offering and sale of the Placement Shares by the Sales Agent under this Agreement.

 

(dd) No
Outstanding Loans or Other Indebtedness. There are no outstanding loans, advances (except normal advances for business expenses
in the ordinary course of business) or guarantees or indebtedness by the Company or any Subsidiary to or for the benefit of any
of the officers or directors of the Company, or any of their respective family members, except as disclosed in the Registration
Statement and the Prospectus.

 

(ee) No
Reliance. The Company has not relied upon the Sales Agent or legal counsel for the Sales Agent for any legal, tax or accounting
advice in connection with the offering and sale of the Placement Shares.

 

(ff) Broker-Dealer
Status. Neither the Company nor any of its related entities (i) is required to register as a “broker” or “dealer”
in accordance with the provisions of the Exchange Act or (ii) directly or indirectly through one or more intermediaries, controls
or is a “person associated with a member” or “associated person of a member” (within the meaning of Article
I of the NASD Manual administered by FINRA). To the Company’s knowledge, there are no affiliations or associations between
any member of FINRA and any of the Company’s officers, directors or 5% or greater security holders, except as set forth
in the Registration Statement.

 

(gg) Public
Float Calculation. At the time the Registration Statement and any Rule 462(b) Registration Statement was or will be filed
with the Commission, at the time the Registration Statement and any Rule 462(b) Registration Statement was or will be declared
effective by the Commission, and at the time the Company’s most recent Annual Report on Form 10-K was filed with the Commission,
the Company met or will meet the then applicable requirements for the use of Form S-3 under the Securities Act, including, but
not limited to, General Instruction I.B.6. of Form S-3, if and for so long as applicable.

 

    	 	13	 

    	 	 	 

    

 

(hh) FINRA
Matters. All of the information provided to the Sales Agent or to counsel for the Sales Agent by the Company, its counsel,
its officers and directors and, to the Company’s knowledge, the holders of any securities (debt or equity) or options to
acquire any securities of the Company in connection with the offering of the Placement Shares is true, complete, correct and compliant
with FINRA’s rules in all material respects and any letters, filings or other supplemental information provided to FINRA
pursuant to FINRA Rules or NASD Conduct Rules is true, complete and correct in all material respects. Except as disclosed in the
Registration Statement and the Prospectus, there is no (i) officer or director of the Company, (ii) beneficial owner of 5% or
more of any class of the Company’s securities or (iii) beneficial owner of the Company’s unregistered equity securities
that were acquired during the 180-day period immediately preceding the date of this Agreement that is an affiliate or associated
person of a FINRA member participating in the offer, issuance and sale of the Placement Shares as contemplated by this Agreement
and the Registration Statement and the Prospectus (as determined in accordance with the rules and regulations of FINRA).

 

(ii) Compliance
with Orders. None of the Company or any Subsidiary is in violation in any material respect of any judgment, decree, or order
of any court, arbitrator or other governmental authority.

 

(jj) Sarbanes-Oxley
Act. The Company is in material compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 and
the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”) that are effective
as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective
as of the date hereof and as of the date hereof.

 

(kk) Internal
Controls; Disclosure Controls And Procedures. Except as set forth in the Registration Statement and the Prospectus, the Company
maintains systems of “internal control over financial reporting” (as defined under Rules 13a-15 and 15d-15 under the
Exchange Act) that comply with the requirements of the Exchange Act and have been designed by, or under the supervision of, the
Company’s principal executive and principal financial officer, or persons performing similar functions, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with GAAP, including, but not limited to, internal accounting controls sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability;
(iii) access to assets is permitted only in accordance with management’s general or specific authorization; (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect
to any differences; and (v) the interactive data in eXtensible Business Reporting Language included or incorporated by reference
in the Registration Statement and the Prospectus fairly present the information called for in all material respects and are prepared
in accordance with the Commission’s rules and guidelines applicable thereto. Except
as described in the Registration Statement and the Prospectus, since the date of the latest audited financial statements
included in the Registration Statement and the Prospectus, there has been no change in the Company’s internal control over
financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control
over financial reporting. The Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-14
and 15d-14 under the Exchange Act) and such controls and procedures are effective in ensuring that material information relating
to the Company is made known to the principal executive officer and the principal financial officer and such controls and procedures
are effective to perform the functions for which they were established. The Company has utilized such controls and procedures
in preparing and evaluating the disclosures in the Registration Statement and the Prospectus.

 

    	 	14	 

    	 	 	 

    

 

(ll) ERISA.
The Company and any “employee benefit plan” (as defined under the Employee Retirement Income Security Act of 1974,
as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”)) established
or maintained by the Company or its “ERISA Affiliates” (as defined below) are in compliance in all material respects
with ERISA. “ERISA Affiliate” means, with respect to the Company, any member of any group of organizations
described in Sections 414(b),(c),(m) or (o) of the Internal Revenue Code of 1986, as amended, and the regulations and published
interpretations thereunder (the “Code”) of which the Company is a member. No “reportable event”
(as defined under ERISA) has occurred or is reasonably expected to occur with respect to any “employee benefit plan”
established or maintained by the Company or any of its ERISA Affiliates. No “employee benefit plan” established or
maintained by the Company or any of its ERISA Affiliates, if such “employee benefit plan” were terminated, would have
any “amount of unfunded benefit liabilities” (as defined under ERISA). Neither the Company nor any of its ERISA Affiliates
has incurred or reasonably expects to incur any material liability under (i) Title IV of ERISA with respect to termination of,
or withdrawal from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the Code. Each “employee
benefit plan” established or maintained by the Company or any of its ERISA Affiliates that is intended to be qualified under
Section 401(a) of the Code is so qualified and, to the knowledge of the Company, nothing has occurred, whether by action or failure
to act, which would cause the loss of such qualification.

 

(mm) Contracts
and Agreements. The agreements and documents described in the Registration Statement and the Prospectus conform in all material
respects to the descriptions thereof contained therein and there are no agreements or other documents required by the Securities
Act to be described in the Registration Statement and the Prospectus or to be filed with the Commission as exhibits to the Registration
Statement, that have not been so described or filed. Each agreement or other instrument (however characterized or described) to
which the Company or Subsidiary is a party or by which it is or may be bound or affected and that is referred to in the Registration
Statement and the Prospectus or is material to the Company’s business, has been duly authorized and validly executed by
the Company, is in full force and effect in all material respects and is enforceable against the Company and, to the Company’s
knowledge, the other parties thereto, in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights generally, (y) as enforceability of any indemnification
or contribution provision may be limited under the federal and state securities laws, and (z) that the remedy of specific performance
and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought. None of such agreements or instruments has been assigned by the Company,
and neither the Company nor, to the Company’s knowledge, any other party is in default thereunder and, to the Company’s
knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder.
To the best of the Company’s knowledge, the performance by the Company or Subsidiary of the material provisions of such
agreements or instruments will not result in a material violation of any existing applicable law, rule, regulation, judgment,
order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its assets
or businesses (each, a “Governmental Entity”), including, without limitation, those relating to environmental
laws and regulations.

 

    	 	15	 

    	 	 	 

    

 

(nn) Title
to Properties. Except as set forth in the Registration Statement and the Prospectus, the Company, together with the Subsidiaries,
has good and marketable title in fee simple to, or has valid rights to lease or otherwise use, all items of real or personal property
which are material to the business of the Company, in each case free and clear of all liens, encumbrances, security interests,
claims and defects that do not, singly or in the aggregate, 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 all of the leases and subleases material to the
business of the Company, and under which the Company or any Subsidiary holds properties described in the Registration Statement
and the Prospectus, are in full force and effect, and the Company has not received any notice of any claim of any sort that has
been asserted by anyone adverse to the rights of the Company or any Subsidiary under any of the leases or subleases mentioned
above, or affecting or questioning the rights of the Company to the continued possession of the leased or subleased premises under
any such lease or sublease, that would result in a Material Adverse Change.

 

(oo) No
Unlawful Contributions or Other Payments. No payments or inducements have been made or given, directly or indirectly, to any
federal or local official or candidate for, any federal or state office in the United States or foreign offices by the Company,
any Subsidiary or any of its officers or directors, or, to the knowledge of the Company, by any of its employees or agents or
any other person in connection with any opportunity, contract, permit, certificate, consent, order, approval, waiver or other
authorization relating to the business of the Company, except for such payments or inducements as were lawful under applicable
laws, rules and regulations. Neither the Company, any Subsidiary nor, to the knowledge of the Company, any director, officer,
agent, employee or other person associated with or acting on behalf of the Company, (i) has used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful
payment to any government official or employee from corporate funds; or (iii) made any bribe, unlawful rebate, payoff, influence
payment, kickback or other unlawful payment in connection with the business of the Company.

 

(pp) Foreign
Corrupt Practices Act. None of the Company or, to the knowledge of the Company, any director, officer, agent, employee, affiliate
or other person acting on behalf of the Company, is aware of or has taken any action, directly or indirectly, that would result
in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder
(collectively, the “FCPA”), including, without limitation, making use of the mails or any means or instrumentality
of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money,
or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official”
(as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political
office, in contravention of the FCPA. The Company has conducted its business in compliance with the FCPA and has instituted and
maintains policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance
therewith.

 

    	 	16	 

    	 	 	 

    

 

(qq) Money
Laundering Laws. The operations of the Company and the Subsidiaries are and have been conducted at all times in compliance
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or
body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the
knowledge of the Company, threatened.

 

(rr) OFAC.
None of the Company, any Subsidiary or, to the knowledge of the Company, any director, officer, agent, employee, affiliate or
person acting on behalf of the Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use
the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner
or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered
by OFAC.

 

(ss) Exchange
Listing. The Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is currently listed on the Exchange
under the trading symbol “PRPH”. Except as disclosed in the Registration Statement and the Prospectus, there is no
action pending by the Company or any Subsidiary or, to the Company’s knowledge, the Exchange to delist the Common Stock
from the Exchange, nor has the Company received any notification that the Exchange is contemplating terminating such listing.
The Company has no intention to delist the Common Stock from the Exchange or to deregister the Common Stock under the Exchange
Act, in either case, at any time during the period commencing on the date of this Agreement through and including the 90th calendar
day after the termination of this Agreement. The has submitted a Listing of Additional Shares Notification Form with the Exchange
for the Placement Shares. The issuance and sale of the Placement Shares under this Agreement does not contravene the rules and
regulations of the Exchange.

 

(tt) Margin
Rules. The Company owns no “margin securities” as that term is defined in Regulation U of the Board of Governors
of the Federal Reserve System (the “Federal Reserve Board”), and none of the proceeds from the issuance,
sale and delivery of the Placement Shares as contemplated by this Agreement and as described in the Registration Statement and
the Prospectus will be used, directly or indirectly, for the purpose of purchasing or carrying any margin security, for the purpose
of reducing or retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other
purpose which might cause any of the shares of Common Stock to be considered a “purpose credit” within the meanings
of Regulation T, U or X of the Federal Reserve Board.

 

(uu) Underwriter
Agreements. Other than this Agreement, the Company is not a party to any agreement with an agent or underwriter for any other
“at-the-market” or continuous equity transaction.

 

    	 	17	 

    	 	 	 

    

 

(vv) Board
of Directors. The qualifications of the persons serving as board members of the Company and the overall composition of the
Company’s Board of Directors comply with the applicable requirements of the Exchange Act and the Sarbanes-Oxley Act and
the listing rules of the Exchange applicable to the Company. At least one member of the Audit Committee of the Board of Directors
of the Company qualifies as an “audit committee financial expert,” as such term is defined under Regulation S-K and
the listing rules of the Exchange. In addition, at least a majority of the persons serving on the Board of Directors of the Company
qualify as “independent,” as defined under the listing rules of the Exchange.

 

(ww) No
Integration. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
cause the offer and sale of the Placement Shares hereunder to be integrated with prior offerings by the Company for purposes of
the Securities Act that would require the registration of any such securities under the Securities Act.

 

(xx) No
Material Defaults. The Company has not defaulted on any installment on indebtedness for borrowed money or on any rental
on one or more long-term leases, which defaults, individually or in the aggregate, could reasonably be expected to result in
a Material Adverse Change. The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since
the filing of its last Annual Report on Form 10-K, indicating that it (i) has failed to pay any dividend or sinking fund
installment on preferred stock or (ii) has defaulted on any installment on indebtedness for borrowed money or on any rental
on one or more long-term leases, which defaults, individually or in the aggregate, could reasonably be expected to result in
a Material Adverse Change.

 

(yy) Books
and Records. The minute books of the Company have been made available to the Sales Agent and counsel for the Sales Agent,
and such books (i) contain a substantially complete summary of all meetings and material actions of the board of directors (including
each board committee) and stockholders of the Company (or analogous governing bodies and interest holders, as applicable) since
the time of its respective incorporation or organization through the date of the latest meeting and action, and (ii) accurately
in all material respects reflect all transactions referred to in such minutes.

 

(zz) Continued
Business. No supplier, customer, distributor or sales agent of the Company has notified the Company that it intends to discontinue
or decrease the rate of business done with the Company, except where such discontinuation or decrease has not resulted in and
could not reasonably be expected to result in a Material Adverse Change.

 

(aaa) Contracts
Affecting Capital. There are no transactions, arrangements or other relationships between and/or among the Company, any of
its affiliates (as such term is defined in Rule 405 under the Securities Act) and any unconsolidated entity, including, but not
limited to, any structured finance, special purpose or limited purpose entity that could reasonably be expected to materially
affect the Company’s liquidity or the availability of or requirements for its capital resources required to be described
or incorporated by reference in the Registration Statement and the Prospectus which have not been described or incorporated by
reference as required.

 

    	 	18	 

    	 	 	 

    

 

(bbb) Regulations.
The disclosures in the Registration Statement and the Prospectus concerning the effects of federal, state, local and all foreign
regulation on the Company’s business in the past and as currently contemplated are correct in all material respects and
no other such regulations are required to be disclosed in the Registration Statement and the Prospectus which are not so disclosed.

 

(ccc) Information
Technology. The Company’s information technology assets and equipment, computers, systems, networks, hardware, software,
websites, applications, and databases (collectively, “IT Systems”) are adequate for, and operate and
perform in all material respects as required in connection with the operation of the business of the Company as currently conducted,
and to the knowledge of the Company are free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware
and other corruptants. The Company has implemented and maintains commercially reasonable controls, policies, procedures, and safeguards
to maintain and protect its material confidential information and the integrity, continuous operation, redundancy and security
of all IT Systems and data (including all personal, personally identifiable, sensitive, confidential or regulated data (“Personal
Data”)) used in connection with its business, and there have been no breaches, violations, outages or unauthorized
uses of or accesses to same, except for those that have been remedied without material cost or liability or the duty to notify
any other person, nor any incidents under internal review or investigations relating to the same. The Company is presently in
material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator
or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of
IT Systems and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation
or modification. The Company has taken all necessary actions to comply with the European Union General Data Protection Regulation
and all other applicable laws and regulations with respect to Personal Data that have been announced as of the date hereof as
becoming effective within 12 months after the date hereof, and for which any non-compliance with same would be reasonably likely
to create a material liability.

 

(ddd) Confidentiality
and Non-Competition. To the Company’s knowledge, no director, officer, key employee or consultant of the Company is
subject to any confidentiality, non-disclosure, non-competition agreement or non-solicitation agreement with any employer or prior
employer that could reasonably be expected to materially affect his or her ability to be and act in his or her respective capacity
of the Company or be expected to result in a Material Adverse Change.

 

Any
certificate signed by an officer of the Company and delivered to the Sales Agent or to counsel for the Sales Agent pursuant to
or in connection with this Agreement shall be deemed to be a representation and warranty by the Company to the Sales Agent as
to the matters set forth therein.

 

The
Company acknowledges that the Sales Agent and, for purposes of the opinions to be delivered pursuant to Section 7 hereof,
counsel to the Company and counsel to the Sales Agent, will rely upon the accuracy and truthfulness of the foregoing representations
and hereby consents to such reliance.

 

    	 	19	 

    	 	 	 

    

 

7.       Covenants
of the Company. The Company covenants and agrees with the Sales Agent that:

 

(a)       Registration
Statement Amendments. After the date of this Agreement and during any period in which a Prospectus relating to any Placement
Shares is required to be delivered by the Sales Agent under the Securities Act (including in circumstances where such requirement
may be satisfied pursuant to Rule 153 or Rule 172 under the Securities Act), (i) the Company will notify the Sales Agent promptly
of the time when any subsequent amendment to the Registration Statement, other than documents incorporated by reference, has been
filed with the Commission and/or has become effective or any subsequent supplement to the Prospectus has been filed and of any
request by the Commission for any amendment or supplement to the Registration Statement or Prospectus or for additional information;
(ii) the Company will prepare and file with the Commission, promptly upon the Sales Agent’s reasonable request, any amendments
or supplements to the Registration Statement or Prospectus that, in the Sales Agent’s reasonable opinion, may be necessary
or advisable in connection with the distribution of the Placement Shares by the Sales Agent (provided, however,
that the failure of the Sales Agent to make such request shall not relieve the Company of any obligation or liability hereunder,
or affect the Sales Agent’s right to rely on the representations and warranties made by the Company in this Agreement, and
provided, further, that the only remedy the Sales Agent shall have with respect to the failure to make such filing
shall be to cease making sales under this Agreement until such amendment or supplement is filed); (iii) the Company will not file
any amendment or supplement to the Registration Statement or Prospectus, other than documents incorporated by reference, relating
to the Placement Shares or a security convertible into the Placement Shares unless a copy thereof has been submitted to the Sales
Agent within a reasonable period of time before the filing and the Sales Agent has not reasonably objected thereto (provided,
however, that the failure of the Sales Agent to make such objection shall not relieve the Company of any obligation or
liability hereunder, or affect the Sales Agent’s right to rely on the representations and warranties made by the Company
in this Agreement, and provided, further, that the only remedy the Sales Agent shall have with respect to the failure
by the Company to obtain such consent shall be to cease making sales under this Agreement); (iv) the Company will furnish to the
Sales Agent at the time of filing thereof a copy of any document that upon filing is deemed to be incorporated by reference into
the Registration Statement or Prospectus, except for those documents available via EDGAR; and (v) the Company will cause each
amendment or supplement to the Prospectus, other than documents incorporated by reference, to be filed with the Commission as
required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act (without reliance on Rule 424(b)(8) of the
Securities Act) or, in the case of any documents incorporated by reference, to be filed with the Commission as required pursuant
to the Exchange Act, within the time period prescribed.

 

(b)       Notice
of Commission Stop Orders. The Company will advise the Sales Agent, promptly after it receives notice or obtains knowledge
thereof, of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any
notice objecting to, or other order preventing or suspending the use of, the Prospectus, of the suspension of the qualification
of the Placement Shares for offering or sale in any jurisdiction, or of the initiation of any proceeding for any such purpose
or any examination pursuant to Section 8(e) of the Securities Act, or if the Company becomes the subject of a proceeding under
Section 8A of the Securities Act in connection with the offering of the Placement Shares; and it will promptly use its commercially
reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal if such a stop order should be issued.
Until such time as any stop order is lifted, the Sales Agent shall cease making offers and sales under this Agreement.

 

    	 	20	 

    	 	 	 

    

 

(c)       Delivery
of Prospectus; Subsequent Changes. During any period in which a Prospectus relating to the Placement Shares is required to
be delivered by the Sales Agent under the Securities Act with respect to a pending sale of the Placement Shares (including in
circumstances where such requirement may be satisfied pursuant to Rule 153 or Rule 172 under the Securities Act), the Company
will comply with all requirements imposed upon it by the Securities Act, as from time to time in force, and to file on or before
their respective due dates all reports and any definitive proxy or information statements required to be filed by the Company
with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision of or under the Exchange Act. If during
such period any event occurs as a result of which the Prospectus as then amended or supplemented would include an untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances
then existing, not misleading, or if during such period it is necessary to amend or supplement the Registration Statement or Prospectus
to comply with the Securities Act, the Company will promptly notify the Sales Agent to suspend the offering of Placement Shares
during such period and the Company will promptly amend or supplement the Registration Statement or Prospectus (at the expense
of the Company) so as to correct such statement or omission or effect such compliance; provided, however, that the
Company may delay any such amendment or supplement if, in the reasonable judgment of the Company, it is in the best interests
of the Company to do so.

 

(d)       Listing
of Placement Shares. During any period in which the Prospectus relating to the Placement Shares is required to be delivered
by the Sales Agent under the Securities Act with respect to a pending sale of the Placement Shares (including in circumstances
where such requirement may be satisfied pursuant to Rule 153 or Rule 172 under the Securities Act), the Company will use its commercially
reasonable efforts to cause the Placement Shares to be listed on the Exchange and to qualify the Placement Shares for sale under
the securities laws of such jurisdictions as the Sales Agent reasonably designates and to continue such qualifications in effect
so long as required for the distribution of the Placement Shares; provided, however, that the Company shall not
be required in connection therewith to qualify as a foreign corporation or dealer in securities or file a general consent to service
of process in any jurisdiction.

 

(e)       Delivery
of Registration Statement and Prospectus. The Company will furnish to the Sales Agent and its counsel (at the expense of the
Company) copies of the Registration Statement, the Prospectus (including all documents incorporated by reference therein) and
all amendments and supplements to the Registration Statement or Prospectus that are filed with the Commission during any period
in which a Prospectus relating to the Placement Shares is required to be delivered under the Securities Act (including all documents
filed with the Commission during such period that are deemed to be incorporated by reference therein), in each case as soon as
reasonably practicable and in such quantities as the Sales Agent may from time to time reasonably request and, at the Sales Agent’s
request, will also furnish copies of the Prospectus to each exchange or market on which sales of the Placement Shares may be made;
provided, however, that the Company shall not be required to furnish any document (other than the Prospectus) to
the Sales Agent to the extent such document is available on EDGAR.

 

    	 	21	 

    	 	 	 

    

 

(f)       Earnings
Statement. The Company will make generally available to its security holders as soon as practicable, but in any event not
later than 15 months after the end of the Company’s current fiscal quarter, an earnings statement of the Company (which
need not be audited) covering a 12-month period that complies with Section 11(a) and Rule 158 of the Securities Act. The terms
“earnings statement” and “make generally available to its security holders” shall have the meanings set
forth in Rule 158 under the Securities Act.

 

(g)       Expenses.
The Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated in accordance
with the provisions of Section 11 hereunder, will pay the following expenses all incident to the performance of its obligations
hereunder, including, but not limited to, expenses relating to (i) the preparation, printing and filing of the Registration Statement
and each amendment and supplement thereto, of each Prospectus and of each amendment and supplement thereto, (ii) the preparation,
issuance and delivery of the Placement Shares, including any stock or other transfer taxes and any stamp or other duties payable
upon the sale, issuance or delivery of the Placement Shares to the Sales Agent, (iii) the fees and disbursements of the counsel,
accountants and other advisors to the Company in connection with the transactions contemplated by this Agreement; (iv) the qualification
of the Placement Shares under securities laws in accordance with the provisions of Section 7(d) of this Agreement, including
filing fees (provided, however, that any fees or disbursements of counsel for the Sales Agent in connection therewith
shall be paid by the Sales Agent except as set forth in (ix) below), (v) the printing and delivery to the Sales Agent of
copies of the Prospectus and any amendments or supplements thereto, and of this Agreement, (vi) the fees and expenses incurred
in connection with the listing or qualification of the Placement Shares for trading on the Exchange, (vii) the fees and expenses
of the transfer agent or registrar for the Common Stock; (viii) filing fees and expenses, if any, of the Commission and the FINRA
Corporate Financing Department (provided, however, that any fees or disbursements of counsel for the Sales Agent
in connection therewith shall be paid by the Sales Agent except as set forth in (ix) below) and (ix) the Company shall
reimburse the Sales Agent for its reasonable and documented out-of-pocket expenses (including but not limited to the reasonable
and documented fees and expenses of counsel to the Sales Agent) in an amount not to exceed $35,000, provided further that
the Company shall reimburse the Sales Agent for its reasonable and documented out-of-pocket expenses (including but not limited
to the reasonable and documented fees and expenses of counsel to the Sales Agent) on an annual basis in an amount not to exceed
$5,000.

 

(h)       Use
of Proceeds. The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use of Proceeds.”

 

(i)       Notice
of Other Sales. The Company (I) shall provide the Sales Agent notice as promptly as reasonably possible before it offers to
sell, contracts to sell, sells, grants any option to sell or otherwise disposes of any shares of Common Stock (other than Placement
Shares offered pursuant to the provisions of this Agreement) or securities convertible into or exchangeable for Common Stock,
or warrants or any rights to purchase or acquire Common Stock, during the period beginning on the fifth (5th) Trading
Day immediately prior to the date on which any Placement Notice is delivered to the Sales Agent hereunder and ending on the 2nd
Trading Day immediately following the final Settlement Date with respect to Placement Shares sold pursuant to such Placement
Notice (or, if the Placement Notice has been terminated or suspended prior to the sale of all Placement Shares covered by a Placement
Notice, the 2nd Trading Day immediately following the date of such suspension or termination), and (II) will not directly
or indirectly in any other “at-the-market” or continuous equity transaction offer to sell, sell, contract to sell,
grant any option to sell or otherwise dispose of any shares of Common Stock (other than the Placement Shares offered pursuant
to this Agreement) or securities convertible into or exchangeable for shares of Common Stock, warrants or any rights to purchase
or acquire, shares of Common Stock prior to the termination of this Agreement without the Sales Agent’s prior written consent;
provided, however, that such notice requirements or restrictions, as the case may be, will not be required in connection
with the Company’s issuance or sale of (i) shares of Common Stock, options to purchase shares of Common Stock, other equity
awards or shares of Common Stock issuable upon the exercise of options or other equity awards, pursuant to any employee or director
stock option or benefits plan, stock ownership plan or dividend reinvestment plan of the Company whether now in effect or hereafter
implemented, (ii) shares of Common Stock issuable upon exchange, conversion or redemption of securities or the exercise of warrants,
options or other rights in effect or outstanding and disclosed in filings by the Company available on EDGAR or otherwise in writing
(including by email correspondence) to the Sales Agent and (iii) shares of Common Stock or securities convertible into or exchangeable
for shares of Common Stock as consideration for mergers, acquisitions, sale or purchase of assets or other business combinations
or strategic alliances occurring after the date of this Agreement which are not issued for capital raising purposes. Notwithstanding
the foregoing, the Company shall provide the Sales Agent notice at least two (2) Trading Days prior to pursuing any private or
public offerings of equity and/or other securities (including debt securities) in one or more transactions.

 

    	 	22	 

    	 	 	 

    

 

(j)       Change
of Circumstances. The Company will, at any time during a fiscal quarter in which the Company intends to tender a Placement
Notice or sell Placement Shares, advise the Sales Agent promptly after it shall have received notice or obtained knowledge thereof,
of any information or fact that would alter or affect in any material respect any opinion, certificate, letter or other document
provided to the Sales Agent pursuant to this Agreement.

 

(k)       Due
Diligence Cooperation. The Company will cooperate with any reasonable due diligence review conducted by the Sales Agent or
its agents in connection with the transactions contemplated hereby, including, without limitation, providing information and making
available documents and senior corporate officers, during regular business hours and at the Company’s principal offices,
as the Sales Agent may reasonably request.

 

(l)       Required
Filings Relating to Placement of Placement Shares. The Company shall set forth in each Annual Report on Form 10-K and Quarterly
Report on Form 10-Q filed by the Company with the Commission in respect of any quarter in which sales of Placement Shares were
made by or through the Sales Agent under this Agreement, with regard to the relevant period, the amount of Placement Shares sold
to or through the Sales Agent, the Net Proceeds to the Company and the compensation payable by the Company to the Sales Agent
with respect to such sales of Placement Shares. To the extent that the filing of a prospectus supplement with the Commission with
respect to any sales of Placement Shares becomes required under Rule 424(b) under the Securities Act, the Company agrees that,
on or before such dates as the Securities Act shall require, the Company will (i) file a prospectus supplement with the Commission
under the applicable paragraph of Rule 424(b) under the Securities Act, which prospectus supplement will set forth, with regard
to the relevant period, the amount of Placement Shares sold to or through the Sales Agent, the Net Proceeds to the Company and
the compensation payable by the Company to the Sales Agent with respect to such Placement Shares, and (ii) deliver such number
of copies of each such prospectus supplement to each exchange or market on which such sales were effected as may be required by
the rules or regulations of such exchange or market. The Company shall afford the Sales Agent and its counsel with a reasonable
opportunity to review and comment upon, shall consult with the Sales Agent and its counsel on the form and substance of, any such
prospectus supplement, and shall give due consideration to all such comments from the Sales Agent or its counsel on, any such
filing prior to the issuance and filing thereof.

 

    	 	23	 

    	 	 	 

    

 

(m)       Representation
Dates; Certificate. On or prior to the date the first Placement Notice is given hereunder and each time the Company (i) files
the Prospectus relating to the Placement Shares or amends or supplements the Registration Statement or the Prospectus relating
to the Placement Shares (other than (A) a prospectus supplement filed in accordance with Section 7(l) of this Agreement
or (B) a supplement or amendment that relates to an offering of securities other than the Placement Shares) by means of a post-effective
amendment, sticker, or supplement but not by means of incorporation of document(s) by reference to the Registration Statement
or the Prospectus relating to the Placement Shares; (ii) files an annual report on Form 10-K under the Exchange Act (including
any Form 10-K/A containing amended financial information or a material amendment to the previously filed Form 10-K); (iii) files
a quarterly report on Form 10-Q under the Exchange Act; or (iv) files a current report on Form 8-K containing amended financial
information (other than an earnings release, to “furnish” information pursuant to Items 2.02 or 7.01 of Form 8-K)
under the Exchange Act (each date of filing of one or more of the documents referred to in clauses (i) through (iv)
shall be a “Representation Date”), the Company shall furnish the Sales Agent within three (3) Trading
Days after each Representation Date with a certificate, in the form attached hereto as Exhibit 7(m). The requirement to
provide a certificate under this Section 7(m) shall be waived for any Representation Date occurring at a time at which
no Placement Notice is pending, which waiver shall continue until the earlier to occur of the date the Company delivers a Placement
Notice hereunder (which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation
Date; provided, however, that such waiver shall not apply for any Representation Date on which the Company files
its annual report on Form 10-K. Notwithstanding the foregoing, if the Company subsequently decides to sell Placement Shares following
a Representation Date when the Company relied on such waiver and did not provide the Sales Agent with a certificate under this
Section 7(m), then before the Company delivers the Placement Notice or the Sales Agent sells any Placement Shares, the
Company shall provide the Sales Agent with a certificate, in the form attached hereto as Exhibit 7(m), dated the date of
the Placement Notice.

 

(n)       Legal
Opinion. On or prior to the date the first Placement Notice is given hereunder, the Company shall cause to be furnished to
the Sales Agent the written opinion and negative assurance of Reed Smith, LLP, as counsel to the Company, or other counsel reasonably
satisfactory to the Sales Agent (“Company Counsel”), in each case substantially in the forms previously
agreed between the Company and the Sales Agent. Thereafter, within three (3) Trading Days after each Representation Date with
respect to which the Company is obligated to deliver a certificate pursuant to Section 7(m) for which no waiver is applicable
pursuant to Section 7(m), and not more than once per calendar quarter, the Company shall cause to be furnished to the Sales
Agent the written opinion and negative assurance of the Company Counsel substantially in the form previously agreed between the
Company and the Sales Agent, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended
or supplemented; provided, however, that if the Company Counsel has previously furnished to the Sales Agent such
written opinion and negative assurance of such counsel substantially in the form previously agreed between the Company and the
Sales Agent, then the Company Counsel may, in respect of any future Representation Date, furnish the Sales Agent with a letter
signed by such counsel (each, a “Reliance Letter”) in lieu of such opinion and negative assurance of
such counsel to the effect that the Sales Agent may rely on the prior opinion and negative assurance of such counsel delivered
pursuant to this Section 7(n) to the same extent as if it were dated the date of such Reliance Letter (except that statements
in such prior opinion and negative assurance shall be deemed to relate to the Registration Statement and the Prospectus as amended
or supplemented to the date of such Reliance Letter).

 

    	 	24	 

    	 	 	 

    

 

(o)       Comfort
Letter. On or prior to the date the first Placement Notice is given hereunder and within three (3) Trading Days after each
subsequent Representation Date with respect to which the Company is obligated to deliver a certificate pursuant to Section
7(m) for which no waiver is applicable pursuant to Section 7(m), other than a Representation Date under Section
7(m)(iii) or Section 7(m)(iv), the Company shall cause its independent accountants to furnish the Sales Agent letters
(the “Comfort Letters”), dated the date that the Comfort Letter is delivered, in form and substance
satisfactory to the Sales Agent, (i) confirming that such accounting firm is an independent registered public accounting firm
within the meaning of the Securities Act, the Exchange Act and the rules and regulations of the PCAOB and is in compliance with
the applicable requirements relating to the qualification of accountants under Rule 2-01 of Regulation S-X of the Commission,
(ii) stating, as of such date, the conclusions and findings of such firm with respect to the financial information and other matters
ordinarily covered by accountants’ “comfort letters” to the Sales Agent in connection with registered public
offerings (the first such letter, the “Initial Comfort Letter”) and (iii) updating the Initial Comfort
Letter with any information that would have been included in the Initial Comfort Letter had it been given on such date and modified
as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letter.

 

(p)       Market
Activities. The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that constitutes
or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Common Stock or (ii) sell, bid for, or purchase shares of Common Stock in violation of Regulation
M, or pay anyone any compensation for soliciting purchases of the Placement Shares other than the Sales Agent.

 

(q)       Insurance.
The Company shall maintain insurance in such amounts and covering such risks as is reasonable and customary for the business in
which it is engaged.

 

(r)       Investment
Company Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that it is not and, after giving
effect to the offering and sale of the Placement Shares and the application of proceeds therefrom as described in the Prospectus,
will not be, an “investment company” within the meaning of such term under the Investment Company Act.

 

(s)       Securities
Act and Exchange Act. The Company will use its reasonable best efforts to comply with all requirements imposed upon it by
the Securities Act and the Exchange Act as from time to time in force, so far as necessary to permit the continuance of sales
of, or dealings in, the Placement Shares as contemplated by the provisions hereof and the Prospectus.

 

    	 	25	 

    	 	 	 

    

 

(t)       No
Offer to Sell. Other than the Prospectus and an Issuer Free Writing Prospectus approved in advance by the Company and the
Sales Agent in its capacity as principal or agent hereunder, neither the Sales Agent nor the Company (including its agents and
representatives, other than the Sales Agent in its capacity as such) will make, use, prepare, authorize, approve or refer to any
written communication (as defined in Rule 405 under the Securities Act), required to be filed with the Commission that constitutes
an offer to sell or solicitation of an offer to buy Placement Shares hereunder.

 

(u)       Sarbanes-Oxley
Act. The Company will use its reasonable best efforts to comply with all effective applicable provisions of the Sarbanes-Oxley
Act.

 

(v)       Transfer
Agent. The Company shall maintain, at its sole expense, a registrar and transfer agent for the Common Stock.

 

8.       Conditions
to the Sales Agent’s Obligations. The obligations of the Sales Agent hereunder with respect to a Placement will be subject
to the continuing accuracy and completeness of the representations and warranties made by the Company herein, to the due performance
by the Company of its obligations hereunder, to the completion by the Sales Agent of a due diligence review satisfactory to the
Sales Agent in its reasonable judgment, and to the continuing satisfaction (or waiver by the Sales Agent in its sole discretion)
of the following additional conditions:

 

(a)       Registration
Statement Effective. The Registration Statement shall be effective and shall be available for the sale of all Placement Shares
contemplated to be issued by any Placement Notice.

 

(b)       Securities
Act Filings Made. The Company shall have filed with the Commission the ATM Prospectus pursuant to Rule 424(b) under the Securities
Act not later than the Commission’s close of business on the second Business Day following the date of this Agreement. All
other filings with the Commission required by Rule 424(b) or Rule 433 under the Securities Act to have been filed prior to the
issuance of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such filing by
Rule 424(b) (without reliance on Rule 424(b)(8) of the Securities Act) or Rule 433, as applicable.

 

(c)       No
Material Notices. None of the following events shall have occurred and be continuing: (i) receipt by the Company of any request
for additional information from the Commission or any other federal or state governmental authority during the period of effectiveness
of the Registration Statement, the response to which would require any post-effective amendments or supplements to the Registration
Statement or the Prospectus; (ii) the issuance by the Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii)
receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification
of any of the Placement Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;
(iv) the occurrence of any event that makes any material statement made in the Registration Statement or the Prospectus or any
material document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires
the making of any changes in the Registration Statement, related Prospectus or such documents so that, in the case of the Registration
Statement, it will not contain any materially untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not misleading and, that in the case of the Prospectus, it will
not contain any materially untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

    	 	26	 

    	 	 	 

    

 

(d)       No
Misstatement or Material Omission. The Sales Agent shall not have advised the Company that the Registration Statement or Prospectus,
or any amendment or supplement thereto, contains an untrue statement of fact that in the Sales Agent’s reasonable opinion
is material, or omits to state a fact that in the Sales Agent’s reasonable opinion is material and is required to be stated
therein or is necessary to make the statements therein not misleading.

 

(e)       Material
Changes. Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed with the Commission,
there shall not have been any material adverse change in the authorized capital stock of the Company or any Material Adverse Change
or any development that could reasonably be expected to result in a Material Adverse Change, or any downgrading in or withdrawal
of the rating assigned to any of the Company’s securities (other than asset backed securities) by any rating organization
or a public announcement by any rating organization that it has under surveillance or review its rating of any of the Company’s
securities (other than asset backed securities), the effect of which, in the case of any such action by a rating organization
described above, in the reasonable judgment of the Sales Agent (without relieving the Company of any obligation or liability it
may otherwise have), is so material as to make it impracticable or inadvisable to proceed with the offering of the Placement Shares
on the terms and in the manner contemplated by this Agreement and the Prospectus.

 

(f)       Representation
Certificate. The Sales Agent shall have received the certificate required to be delivered pursuant to Section 7(m)
on or before the date on which delivery of such certificate is required pursuant to Section 7(m).

 

(g)       Legal
Opinions. The Sales Agent shall have received the opinion and negative assurance of the Company Counsel required to be delivered
pursuant Section 7(n) on or before the date on which such delivery of such opinion and negative assurance is required pursuant
to Section 7(n).

 

(h)       Comfort
Letter. The Sales Agent shall have received the Comfort Letter required to be delivered pursuant Section 7(o) on or
before the date on which such delivery of such Comfort Letter is required pursuant to Section 7(o).

 

(i)       Officer’s
Certificate. On or prior to the date the first Placement Notice is given hereunder, the Sales Agent shall have received a
certificate, signed on behalf of the Company by its President and Chief Executive Officer, certifying as to (i) the certificate
of incorporation of the Company (as the same may be amended or restated from time to time), (ii) the bylaws of the Company (as
the same may be amended or restated from time to time), (iii) the resolutions of the Board of Directors of the Company (or a committee
thereof) authorizing the execution, delivery and performance of this Agreement and the issuance of the Placement Shares and (iv)
the incumbency of the officers duly authorized to execute this Agreement and the other documents contemplated by this Agreement.

 

    	 	27	 

    	 	 	 

    

 

(j)       No
Suspension. Trading in the Common Stock shall not have been suspended on the Exchange and the Common Stock shall not have
been delisted from the Exchange nor shall any proceedings been instituted for such purpose.

 

(k)       Other
Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(m), the Company
shall have furnished to the Sales Agent such appropriate further opinions, certificates, letters and documents as the Sales Agent
may have reasonably requested. All such opinions, certificates, letters and other documents shall have been in compliance with
the provisions hereof. The Company will furnish the Sales Agent with such conformed copies of such opinions, certificates, letters
and other documents as the Sales Agent shall have reasonably requested.

 

(l)       Approval
for Listing. The Placement Shares shall have been approved for listing on the Exchange, subject only to notice of issuance.

 

(m)       No
Termination Event. There shall not have occurred any event that would permit the Sales Agent to terminate this Agreement pursuant
to Section 11(a).

 

(n)       FINRA.
The Sales Agent shall have received a letter from the Corporate Financing Department of FINRA confirming that such department
has determined to raise no objection with respect to the fairness or reasonableness of the terms and arrangements related to the
sale of the Placement Shares pursuant to this Agreement.

 

9.       Indemnification
and Contribution.

 

(a)       Company
Indemnification. The Company agrees to indemnify and hold harmless the Sales Agent, the directors, officers, members, partners,
employees and agents of the Sales Agent, each broker dealer affiliate of the Sales Agent, and each the Sales Agent Affiliate,
if any, from and against any and all losses, claims, liabilities, expenses and damages (including, but not limited to, any and
all actual, reasonable and documented investigative, legal and other expenses incurred in connection with, and any and all amounts
paid in settlement (in accordance with Section 9(c)) of, any action, suit or proceeding between any of the indemnified
parties and any indemnifying parties or between any indemnified party and any third party, or otherwise, or any claim asserted),
as and when incurred, to which the Sales Agent, or any such person, may become subject under the Securities Act, the Exchange
Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, liabilities,
expenses or damages arise out of or are based, directly or indirectly, on (x) any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement or the Prospectus or any amendment or supplement thereto or in any
Issuer Free Writing Prospectus or in any application or other document executed by or on behalf of the Company or based on written
information furnished by or on behalf of the Company filed in any jurisdiction in order to qualify the Common Stock under the
securities laws thereof or filed with the Commission, (y) the omission or alleged omission to state in any such document a material
fact required to be stated in it or necessary to make the statements in it not misleading or (z) any breach by any of the indemnifying
parties of any of their respective representations, warranties and agreements contained in this Agreement; provided, however,
that this indemnity agreement shall not apply to the extent that such loss, claim, liability, expense or damage arises from the
sale of the Placement Shares pursuant to this Agreement and is caused directly by an untrue statement or omission made in reliance
upon and in strict conformity with the Sales Agent’s Information. This indemnity agreement will be in addition to any liability
that the Company might otherwise have.

 

    	 	28	 

    	 	 	 

    

 

(b)       The
Sales Agent Indemnification. The Sales Agent agrees to indemnify and hold harmless the Company and its directors and each
officer of the Company that signed the Registration Statement, and each person, if any, who (i) controls the Company within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act or (ii) is controlled by or is under common control
with the Company (each, a “Company Affiliate”) from and against any and all losses, claims, liabilities,
expenses and damages (including, but not limited to, any and all actual, reasonable and documented investigative, legal and other
expenses incurred in connection with, and any and all amounts paid in settlement (in accordance with Section 9(c)) of,
any action, suit or proceeding between any of the indemnified parties and any indemnifying parties or between any indemnified
party and any third party, or otherwise, or any claim asserted), as and when incurred, to which any such Company Affiliate, may
become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law
or otherwise, insofar as such losses, claims, liabilities, expenses or damages arise out of or are based, directly or indirectly,
on (x) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or the Prospectus
or any amendment or supplement thereto, or (y) the omission or alleged omission to state in any such document a material fact
required to be stated in it or necessary to make the statements in it not misleading; provided, however, that this
indemnity agreement shall apply only to the extent that such loss, claim, liability, expense or damage is caused directly by an
untrue statement or omission made in reliance upon and in strict conformity with the Sales Agent’s Information.

 

(c)       Procedure.
Any party that proposes to assert the right to be indemnified under this Section 9 will, promptly after receipt of notice
of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties
under this Section 9, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers
served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that
it might have to any indemnified party otherwise than under this Section 9 and (ii) any liability that it may have to any
indemnified party under the foregoing provision of this Section 9 unless, and only to the extent that, such omission results
in the forfeiture of substantive rights or defenses by the indemnifying party. If any such action is brought against any indemnified
party and it notifies the indemnifying party of its commencement, the indemnifying party will be entitled to participate in and,
to the extent that it elects by delivering written notice to the indemnified party promptly after receiving notice of the commencement
of the action from the indemnified party, jointly with any other indemnifying party similarly notified, to assume the defense
of the action, with counsel reasonably satisfactory to the indemnified party, and after notice from the indemnifying party to
the indemnified party of its election to assume the defense, the indemnifying party will not be liable to the indemnified party
for any legal or other expenses except as provided below and except for the reasonable costs of investigation subsequently incurred
by the indemnified party in connection with the defense. The indemnified party will have the right to employ its own counsel in
any such action, but the fees, expenses and other charges of such counsel will be at the expense of such indemnified party unless
(1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying party, (2) the indemnified
party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other indemnified
parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential conflict
exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which
case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or
(4) the indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after
receiving notice of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges
of counsel will be at the expense of the indemnifying party or parties. It is understood that the indemnifying party or parties
shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees,
disbursements and other charges of more than one separate firm admitted to practice in such jurisdiction at any one time for all
such indemnified party or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying party
promptly as they are incurred. An indemnifying party will not, in any event, be liable for any settlement of any action or claim
effected without its written consent. No indemnifying party shall, without the prior written consent of each indemnified party,
settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating
to the matters contemplated by this Section 9 (whether or not any indemnified party is a party thereto), unless such settlement,
compromise or consent includes an unconditional release of each indemnified party from all liability arising or that may arise
out of such claim, action or proceeding.

 

    	 	29	 

    	 	 	 

    

 

(d)       Contribution.
In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing
paragraphs of this Section 9 is applicable in accordance with its terms but for any reason is held to be unavailable from
the Company or the Sales Agent, the Company and the Sales Agent will contribute to the total losses, claims, liabilities, expenses
and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid
in settlement of, any action, suit or proceeding or any claim asserted, but after deducting any contribution received by the Company
from persons other than the Sales Agent, such as persons who control the Company within the meaning of the Securities Act, officers
of the Company who signed the Registration Statement and directors of the Company, who also may be liable for contribution) to
which the Company and the Sales Agent may be subject in such proportion as shall be appropriate to reflect the relative benefits
received by the Company on the one hand and the Sales Agent on the other. The relative benefits received by the Company on the
one hand and the Sales Agent on the other hand shall be deemed to be in the same proportion as the total Net Proceeds from the
sale of the Placement Shares (before deducting expenses) received by the Company bear to the total compensation received by the
Sales Agent from the sale of Placement Shares on behalf of the Company. If, but only if, the allocation provided by the foregoing
sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate
to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on
the one hand, and the Sales Agent, on the other, with respect to the statements or omission that resulted in such loss, claim,
liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect
to such offering. Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company
or the Sales Agent, the intent of the parties and their relative knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Company and the Sales Agent agree that it would not be just and equitable if contributions
pursuant to this Section 9(d) were to be determined by pro rata allocation or by any other method of allocation that does
not take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a
result of the loss, claim, liability, expense, or damage, or action in respect thereof, referred to above in this Section 9(d)
shall be deemed to include, for the purpose of this Section 9(d), any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such action or claim to the extent consistent with Section
9(c) hereof. Notwithstanding the foregoing provisions of this Section 9(d), the Sales Agent shall not be required to
contribute any amount in excess of the commissions received by it under this Agreement and no person found guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. For purposes of this Section 9(d), any person who controls a party
to this Agreement within the meaning of the Securities Act will have the same rights to contribution as that party (and any officers,
directors, members, partners, employees or agents of the Sales Agent and each broker dealer affiliate of the Sales Agent will
have the same rights to contribution as the Sales Agent), and each officer of the Company who signed the Registration Statement
and each director of the Company will have the same rights to contribution as the Company, subject in each case to the provisions
hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party
in respect of which a claim for contribution may be made under this Section 9(d), will notify any such party or parties
from whom contribution may be sought, but the omission to so notify will not relieve that party or parties from whom contribution
may be sought from any other obligation it or they may have under this Section 9(d) except to the extent that the failure
to so notify such other party materially prejudiced the substantive rights or defenses of the party from whom contribution is
sought. Except for a settlement entered into pursuant to the last sentence of Section 9(c) hereof, no party will be liable
for contribution with respect to any action or claim settled without its written consent if such consent is required pursuant
to Section 9(c) hereof.

 

10.       Representations
and Agreements to Survive Delivery. The indemnity and contribution agreements contained in Section 9 of this Agreement
and all representations and warranties of the Company herein or in certificates delivered pursuant hereto shall survive, as of
their respective dates, regardless of (i) any investigation made by or on behalf of the Sales Agent, any controlling person of
the Sales Agent, or the Company (or any of their respective officers, directors, members or controlling persons), (ii) delivery
and acceptance of the Placement Shares and payment therefor or (iii) any termination of this Agreement.

 

    	 	30	 

    	 	 	 

    

 

11.       Termination.

 

(a)       The
Sales Agent shall have the right by giving notice as hereinafter specified at any time to terminate this Agreement if (i) any
Material Adverse Change, or any development that could reasonably be expected to result in a Material Adverse Change has occurred
that, in the reasonable judgment of the Sales Agent, may materially impair the ability of the Sales Agent to sell the Placement
Shares hereunder, provided, however, that for purposes of this subclause 11(a)(i), Material Adverse Change
shall not include any event, action, state or condition or financial occurrence related directly or indirectly to the COVID-19
pandemic (whether now known or unknown or whether foreseeable or unforeseeable in the future), (ii) the Company shall have failed,
refused or been unable to perform any agreement on its part to be performed hereunder; provided, however, in the
case of any failure of the Company to deliver (or cause another person to deliver) any certification, opinion, or letter required
under Sections 7(m), 7(n), 7(o) or 7(p), the Sales Agent’s right to terminate shall not arise
unless such failure to deliver (or cause to be delivered) continues for more than thirty (30) days from the date such delivery
was required, (iii) any other condition of the Sales Agent’s obligations hereunder is not fulfilled, or (iv) any suspension
or limitation of trading in the Placement Shares or in securities generally on the Exchange shall have occurred (including automatic
halt in trading pursuant to market-decline triggers, other than those in which solely program trading is temporarily halted),
or a major disruption of securities settlements or clearing services in the United States shall have occurred, or minimum prices
for trading have been fixed on the Exchange. Any such termination shall be without liability of any party to any other party except
that the provisions of Section 7(g) (Expenses), Section 9 (Indemnification and Contribution), Section 10
(Representations and Agreements to Survive Delivery), Section 11(f), Section 16 (Applicable Law; Consent to Jurisdiction)
and Section 17 (Waiver of Jury Trial) hereof shall remain in full force and effect notwithstanding such termination. If
the Sales Agent elects to terminate this Agreement as provided in this Section 11(a), the Sales Agent shall provide the
required notice as specified in Section 12 (Notices).

 

(b)       The
Company shall have the right, by giving three (3) Trading Days’ notice as hereinafter specified in Section 12, to
terminate this Agreement in its sole discretion at any time after the date of this Agreement. Any such termination shall be without
liability of any party to any other party except that the provisions of Section 7(g), Section 9, Section 10,
Section 11(f), Section 16 and Section 17 hereof shall remain in full force and effect notwithstanding such
termination.

 

(c)       The
Sales Agent shall have the right, by giving three (3) Trading Days’ notice as hereinafter specified in Section 12,
to terminate this Agreement in its sole discretion at any time after the date of this Agreement. Any such termination shall be
without liability of any party to any other party except that the provisions of Section 7(g), Section 9, Section
10, Section 11(f), Section 16 and Section 17 hereof shall remain in full force and effect notwithstanding
such termination.

 

(d)       Unless
earlier terminated pursuant to this Section 11, this Agreement shall automatically terminate upon the issuance and sale
of all of the Placement Shares to or through the Sales Agent on the terms and subject to the conditions set forth herein; provided
that the provisions of Section 7(g), Section 9, Section 10, Section 11(f), Section 16 and
Section 17 hereof shall remain in full force and effect notwithstanding such termination.

 

(e)       This
Agreement shall remain in full force and effect unless terminated pursuant to Sections 11(a), (b), (c) or
(d) above or otherwise by mutual agreement of the parties; provided, however, that any such termination by
mutual agreement shall in all cases be deemed to provide that Section 7(g), Section 9, Section 10, Section
11(f), Section 16 and Section 17 shall remain in full force and effect.

 

    	 	31	 

    	 	 	 

    

 

(f)       Any
termination of this Agreement shall be effective on the date specified in such notice of termination; provided, however,
that such termination shall not be effective until the close of business on the date of receipt of such notice by the Sales Agent
or the Company, as the case may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares,
such termination shall not become effective until the close of business on such Settlement Date and such Placement Shares shall
settle in accordance with the provisions of this Agreement.

 

12.       Notices.
All notices or other communications required or permitted to be given by any party to any other party pursuant to the terms of
this Agreement shall be in writing, unless otherwise specified, and if sent to the Sales Agent, shall be delivered to:

 

A.G.P./Alliance
Global Partners

590
Madison Avenue

New
York, NY 10022

Attention:
Tom Higgins

Email:
atm@allianceg.com

 

with
a copy (which shall not constitute notice) to:

 

McGuireWoods
LLP

1251
Avenue of the Americas, 20th Floor

New
York, New York 10020

Attention: Stephen E. Older, Esq. and David S. Wolpa, Esq.

Facsimile:
(212) 715-2307 and (704) 444-8720

Email:   solder@mcguirewoods.com
and dwolpa@mcguirewoods.com

 

and
if to the Company, shall be delivered to:

 

ProPhase
Labs, Inc.

621
N. Shady Retreat Road

Doylestown,
PA

Attention:
Ted Karkus, CEO

Facsimile:
(215) 345-5920

Email: 

 

with
a copy (which shall not constitute notice) to:

 

Reed
Smith, LLP

599
Lexington Avenue, 22nd Floor

New
York, New York 10022

Attention:
Herbert F. Kozlov, Esq. and Wendy Grasso, Esq.

Facsimile:
(212) 521-5450

Email:   hkozlov@reedsmith.com
and wgrasso@reedsmith.com

 

    	 	32	 

    	 	 	 

    

 

Each
party may change such address for notices by sending to the other party to this Agreement written notice of a new address for
such purpose. Each such notice or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile
transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not
a Business Day, on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized
overnight courier and (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail,
return receipt requested, postage prepaid). For purposes of this Agreement, “Business Day” shall mean
any day on which the Exchange and commercial banks in the City of New York are open for business.

 

An
electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this Section
12 if sent to the electronic mail address specified by the receiving party under separate cover. Electronic Notice shall be
deemed received at the time the party sending Electronic Notice receives confirmation of receipt by the receiving party (other
than pursuant to auto-reply). Any party receiving Electronic Notice may request and shall be entitled to receive the notice on
paper, in a nonelectronic form (“Nonelectronic Notice”) which shall be sent to the requesting party
within ten (10) days of receipt of the written request for Nonelectronic Notice.

 

13.       Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and the Sales Agent and their respective
successors and permitted assigns and, as to Sections 5(b) and 9, the other indemnified parties specified therein.
References to any of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of
such party. Nothing in this Agreement, express or implied, is intended to confer upon any other person any rights, remedies, obligations
or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. Neither party may assign
its rights or obligations under this Agreement without the prior written consent of the other party; provided, however,
that the Sales Agent may assign its rights and obligations hereunder to an affiliate of the Sales Agent without obtaining the
Company’s consent.

 

14.       Adjustments
for Share Splits. The parties acknowledge and agree that all share-related numbers contained in this Agreement shall be adjusted
to take into account any share split, reverse share split, share dividend or similar event effected with respect to the Common
Stock.

 

15.       Entire
Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and Placement Notices
issued pursuant hereto) and any other writing entered into by the parties relating to this Agreement constitutes the entire agreement
and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto
with regard to the subject matter hereof. Neither this Agreement nor any term hereof may be amended except pursuant to a written
instrument executed by the Company and the Sales Agent. In the event that any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction,
then such provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable,
and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision
was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions
hereof shall be in accordance with the intent of the parties as reflected in this Agreement.

 

    	 	33	 

    	 	 	 

    

 

16.       Applicable
Law; Consent to Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the internal laws of
the State of New York, without regard to the principles of conflicts of laws. Each party hereby irrevocably submits to the non-exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan, for the adjudication of any
dispute hereunder or in connection with any transaction contemplated hereby, 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 (certified or registered mail, return receipt requested) to such party at the address
in effect for 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.

 

17.       Waiver
of Jury Trial. The Company and the Sales Agent each hereby irrevocably waives any right it may have to a trial by jury in
respect of any claim based upon or arising out of this Agreement or any transaction contemplated hereby.

 

18.       Absence
of Fiduciary Relationship. The Company acknowledges and agrees that:

 

(a)       the
Sales Agent is acting solely as agent in connection with the sale of the Placement Shares contemplated by this Agreement and the
process leading to such transactions, and no fiduciary or advisory relationship between the Company or any of its respective affiliates,
stockholders (or other equity holders), creditors or employees or any other party, on the one hand, and the Sales Agent, on the
other hand, has been or will be created in respect of any of the transactions contemplated by this Agreement, irrespective of
whether the Sales Agent has advised or is advising the Company on other matters, and the Sales Agent has no obligation to the
Company with respect to the transactions contemplated by this Agreement, except the obligations expressly set forth in this Agreement;

 

(b)       the
Company is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions
contemplated by this Agreement;

 

(c)       the
Sales Agent has not provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by
this Agreement, and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed
appropriate;

 

(d)       the
Company has been advised and is aware that the Sales Agent and its affiliates are engaged in a broad range of transactions which
may involve interests that differ from those of the Company and that the Sales Agent has no obligation to disclose such interests
and transactions to the Company by virtue of any fiduciary, advisory or agency relationship; and

 

    	 	34	 

    	 	 	 

    

 

(e)       the
Company waives, to the fullest extent permitted by law, any claims it may have against the Sales Agent, for breach of fiduciary
duty or alleged breach of fiduciary duty and agrees that the Sales Agent shall have no liability (whether direct or indirect,
in contract, tort or otherwise) to the Company in respect of such a fiduciary claim or to any person asserting a fiduciary duty
claim on behalf of or in right of the Company, including stockholders, partners, employees or creditors of the Company.

 

19.       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile
transmission.

 

20.       Effect
of Headings; Knowledge of the Company. The section and Exhibit headings herein are for convenience only and shall not affect
the construction hereof. All references in this Agreement to the “knowledge of the Company” or the “Company’s
knowledge” or similar qualifiers shall mean the actual knowledge of the directors and officers of the Company, after due
inquiry.

 

21.       Definitions.
As used in this Agreement, the following term has the meaning set forth below:

 

(a)       “Applicable
Time” means the date of this Agreement, each Representation Date, each date on which a Placement Notice is given, each
Point of Sale, and each Settlement Date.

 

[Remainder
of Page Intentionally Blank]

 

    	 	35	 

    	 	 	 

    

 

If
the foregoing correctly sets forth the understanding between the Company and the Sales Agent, please so indicate in the space
provided below for that purpose, whereupon this letter shall constitute a binding agreement between the Company and the Sales
Agent.

 

	 	Very
    truly yours,
	 	 
	 	PROPHASE
    LABS, INC.
	 	 
	 	By: 	/s/ Ted Karkus
	 	Name:	 Ted Karkus
	 	Title:	 President and Chief Executive Officer
	 	 
	 	ACCEPTED
    as of the date first-above written:
	 	 
	 	A.G.P./ALLIANCE
    GLOBAL PARTNERS
	 	 
	 	By: 	/s/ Tom Higgins
	 	Name:	 Tom Higgins
	 	Title:	 Managing Director

 

[Signature
Page to Sales Agreement]

 

    	 

     

    

 

SCHEDULE
1

 

 

 

Form
of Placement Notice

 

 

 

From:
ProPhase Labs, Inc.

 

To:
A.G.P./Alliance Global Partners

 

Attention:
[●]

 

Subject:
Placement Notice

 

Date:
[●], 202[●]

 

Ladies
and Gentlemen:

 

Pursuant
to the terms and subject to the conditions contained in the Sales Agreement (the “Sales Agreement”)
between ProPhase Labs, Inc., a Delaware corporation (the “Company”), and A.G.P./Alliance Global Partners
(the “Sales Agent”), dated [●], 2020, the Company hereby requests that the Sales Agent sell up
to [●] shares of the Company’s common stock, par value $0.0005 per share (the “Placement Shares”),
at a minimum market price of $[●] per share, during the time period beginning [month, day, time] and ending [month, day,
time] [and with no more than [●] Placement Shares sold in any one Trading Day].

 

[The
Company may include such other sale parameters as it deems appropriate.]

 

Capitalized
terms used and not defined herein shall have the respective meanings assigned to them in the Sales Agreement.

 

    	 

     

    

 

SCHEDULE
2

 

Notice
Parties

 

ProPhase
Labs, Inc. 

 

Ted
Karkus

 

Monica
Brady

 

The Sales Agent

 

Tom
Higgins

 

With
copies to:

 

atm@allianceg.com

 

    	 

     

    

 

SCHEDULE
3

 

Compensation

 

The
Company shall pay to the Sales Agent in cash, upon each sale of Placement Shares through the Sales Agent pursuant to this Agreement,
an amount equal to 3.00% of the aggregate gross proceeds from each sale of Placement Shares.*

 

 

 

*
The foregoing rate of compensation shall not apply when the Sales Agent purchases Placement Shares on a principal basis, in which
case the Company may sell the Placement Shares to the Sales Agent as principal at a price to be mutually agreed upon by the Company
and the Sales Agent at the relevant Point of Sale pursuant to the applicable Placement Notice (it being hereby acknowledged and
agreed that the Sales Agent shall be under no obligation to purchase Placement Shares on a principal basis pursuant to the Sales
Agreement, except as otherwise agreed by the Sales Agent and the Company in writing and expressly set forth in a Placement Notice).

 

    	 

     

    

 

SCHEDULE
4

 

Subsidiaries

 

 

Pharmaloz
Manufacturing Inc.

 

ProPhase
Digital Media, Inc.

 

Quigley
Pharma Inc.

 

TK
Supplements, Inc.

 

    	 

     

    

 

Exhibit
7(m)

 

OFFICER
CERTIFICATE

 

The
undersigned, the duly qualified and appointed _____________________ of ProPhase Labs, Inc. a Delaware corporation (the “Company”),
does hereby certify in such capacity and on behalf of the Company, pursuant to Section 7(m) of the Sales Agreement, dated
[●] (the “Sales Agreement”), between the Company and A.G.P./Alliance Global Partners,
that:

 

		(i)	the
                                         representations and warranties of the Company in Section 6 of the Sales Agreement
                                         (A) to the extent such representations and warranties are subject to qualifications and
                                         exceptions contained therein relating to materiality or Material Adverse Change, are
                                         true and correct on and as of the date hereof with the same force and effect as if expressly
                                         made on and as of the date hereof, except for those representations and warranties that
                                         speak solely as of a specific date and which were true and correct as of such date, and
                                         (B) to the extent such representations and warranties are not subject to any qualifications
                                         or exceptions, are true and correct in all material respects as of the date hereof as
                                         if made on and as of the date hereof with the same force and effect as if expressly made
                                         on and as of the date hereof except for those representations and warranties that speak
                                         solely as of a specific date and which were true and correct as of such date; and;
	 	 	 
		(ii)	the
                                         Company has complied with all agreements and satisfied all conditions on its part to
                                         be performed or satisfied pursuant to the Sales Agreement at or prior to the date hereof;
	 	 	 
		(iii)	as
                                         of the date hereof, (i) the Registration Statement does not contain any untrue statement
                                         of a material fact or omit to state a material fact required to be stated therein or
                                         necessary in order to make the statements therein not misleading, (ii) the Prospectus
                                         does not contain any untrue statement of a material fact or omit 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 and (iii) no
                                         event has occurred as a result of which it is necessary to amend or supplement the Registration
                                         Statement or the Prospectus in order to make the statements therein not untrue or misleading
                                         for clauses (i) and (ii) above, respectively, to be true and correct;
	 	 	 
		(iv)	there
                                         has been no Material Adverse Change since the date as of which information is given in
                                         the Prospectus, as amended or supplemented;
	 	 	 
		(v)	the
                                         Company does not possess any material non-public information; and
	 	 	 
		(vi)	the
                                         aggregate offering price of the Placement Shares that may be issued and sold pursuant
                                         to the Sales Agreement and the maximum number or amount of Placement Shares that may
                                         be sold pursuant to the Sales Agreement have been duly authorized by the Company’s
                                         board of directors or a duly authorized committee thereof.

 

    	 

     

    

 

Terms
used herein and not defined herein have the meanings ascribed to them in the Sales Agreement.

 

	Dated: 	 	 	By:	 
	 	 	 	 
	 	 	 	Name:
	 	 	 	 
	 	 	 	Title:EX-10.15

 Exhibit 10.15 

OFFICE LEASE 

HR MELROSE, LLC, 
 a
Delaware limited liability company 
 as Landlord, 

and 
 SPINAL ELEMENTS, INC.,

 a Delaware corporation, 

as Tenant. 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	PAGE	 
	 ARTICLE 1
	  	REAL PROPERTY, BUILDING, COMMON AREAS, PREMISES, FIRST REFUSAL SPACE AND TEMPORARY SPACE	  	 	1	 
			
	 ARTICLE 2
	  	LEASE TERM; OPTION TO EXTEND	  	 	4	 
			
	 ARTICLE 3
	  	BASE RENT; ABATEMENT OF MONTHLY BASE RENT	  	 	8	 
			
	 ARTICLE 4
	  	ADDITIONAL RENT	  	 	9	 
			
	 ARTICLE 5
	  	USE OF PREMISES	  	 	15	 
			
	 ARTICLE 6
	  	SERVICES AND UTILITIES	  	 	16	 
			
	 ARTICLE 7
	  	REPAIRS	  	 	19	 
			
	 ARTICLE 8
	  	ADDITIONS AND ALTERATIONS	  	 	20	 
			
	 ARTICLE 9
	  	COVENANT AGAINST LIENS	  	 	22	 
			
	 ARTICLE 10
	  	INSURANCE	  	 	22	 
			
	 ARTICLE 11
	  	DAMAGE AND DESTRUCTION	  	 	25	 
			
	 ARTICLE 12
	  	NON-WAIVER	  	 	27	 
			
	 ARTICLE 13
	  	CONDEMNATION	  	 	27	 
			
	 ARTICLE 14
	  	ASSIGNMENT AND SUBLETTING	  	 	28	 
			
	 ARTICLE 15
	  	SURRENDER OF PREMISES; REMOVAL OF TRADE FIXTURES	  	 	32	 
			
	 ARTICLE 16
	  	HOLDING OVER	  	 	32	 
			
	 ARTICLE 17
	  	ESTOPPEL CERTIFICATES	  	 	33	 
			
	 ARTICLE 18
	  	SUBORDINATION	  	 	33	 
			
	 ARTICLE 19
	  	DEFAULTS; REMEDIES	  	 	34	 
			
	 ARTICLE 20
	  	ATTORNEYS’ FEES	  	 	37	 
			
	 ARTICLE 21
	  	SECURITY DEPOSIT	  	 	37	 
			
	 ARTICLE 22
	  	INTENTIONALLY DELETED	  	 	38	 
			
	 ARTICLE 23
	  	SIGNS	  	 	38	 
			
	 ARTICLE 24
	  	COMPLIANCE WITH LAW	  	 	40	 
			
	 ARTICLE 25
	  	LATE CHARGES	  	 	41	 
			
	 ARTICLE 26
	  	LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT	  	 	41	 
			
	 ARTICLE 27
	  	ENTRY BY LANDLORD	  	 	42	 
			
	 ARTICLE 28
	  	TENANT PARKING	  	 	42	 
			
	 ARTICLE 29
	  	MISCELLANEOUS PROVISIONS	  	 	43	 
			
	 ARTICLE 30
	  	ADDITIONAL PROVISIONS	  	 	48	 

  
 i 

 TABLE OF CONTENTS 

 

					
	 	  	PAGE	 
	 EXHIBITS
	  			
		
	 EXHIBIT A – OUTLINE OF PREMISES
	  	 	A-1	 
	 EXHIBIT A-l – OUTLINE
 OF TEMPORARY SPACE
	  	 	A-3	 
	 EXHIBIT B – RULES AND REGULATIONS
	  	 	B-1	 
	 EXHIBIT C – NOTICE OF LEASE TERM DATES
	  	 	C-1	 
	 EXHIBIT D – TENANT WORK LETTER
	  	 	D-1	 
	 EXHIBIT E – TENANT FORM OF ESTOPPEL
CERTIFICATE
	  	 	E-1	 
	 EXHIBIT F – LIST OF MACHINE SHOP EQUIPMENT
	  	 	F-1	 
	 EXHIBIT G – LIST OF HAZARDOUS MATERIALS
	  	 	G-1	 

  
 ii 

 LEASE 

This Lease (the “Lease”), dated as of the date set forth in Section 1 of the Summary of Basic Lease
Information (the “Summary”), below, is made by and between “Landlord.” and “Tenant,” as those terms are defined in Sections 2 and 4 of the Summary, respectively. 

SUMMARY OF BASIC LEASE INFORMATION 
  

			
	TERMS OF LEASE	 	DESCRIPTION
		
	1.  Dated:	 	September 27, 2012
		
	2.  Landlord:	 	 HR Melrose, LLC,
 a Delaware limited liability
company

		
	3.  Address of Landlord (Section 29.14):	 	 11990 San Vicente Boulevard, Suite 200
 Los
Angeles, California 90049
 Attention: Matthew Benbassat
  

With a copy to:
  

Advisors LLP
 11911 San Vicente Boulevard, Suite 265

Los Angeles, California 90049
 Attention: Robert
Plotkowski

		
	4.  Tenant:	 	 SPINAL ELEMENTS, INC.,
 a Delaware
corporation

		
	5.  Address of Tenant (Section 29.14):	 	 2744 Loker Avenue, #100
 Carlsbad,
California
 Attention: Steve McGowan
 (Prior to Lease
Commencement Date)
  
 and

 
 3115 Melrose Drive, Suite 150

Carlsbad, California 92010
 Attention: Steve McGowan

(After Lease Commencement Date)

		
	6.  Premises (Article 1).	 	
		
	 6.1.  Building:
	 	 3115 Melrose Drive, Carlsbad, California which

consists of approximately 103,547 square feet.

  
 iii 

			
		
	 6.2.  Premises:
	 	Approximately 39,655 rentable (35,093 usable) square feet of space located on the first (1st) and second (2nd)
floors of the Building, as set forth in Exhibit A attached hereto, and identified as Suites 150, 170 and 200. The exact rentable square footage of the Premises shall be determined by Landlord within 60 days of Substantial Completion
(as defined below), subject to Tenant’s right to verify and approve, in accordance with ANSI/BOMA Z65.1-2010 (the “Exact Area”). All provisions of this Lease that refer to or are affected
by the rentable square feet of the Premises shall be deemed to refer to such Exact Area.
		
	7.  Term (Article 2).	 	
		
	 7.1.  Lease Term:
	 	Approximately, eighty-six (86) months.

  
 iv 

			
		
	 7.2.  Lease Commencement Date:
	 	The “Lease Commencement Date” shall be the date of Substantial Completion of the Premises in accordance with the Tenant Work Letter (as defined below), estimated to be March 1, 2013. “Substantial
Completion” means (i) a certificate of occupancy (permanent or temporary), or equivalent building inspection sign-off, from the City of Carlsbad has been issued with respect to the Tenant
Improvements (as defined below), (ii) all Building Systems (as defined below) are in good working order to support the operation of the Premises for the uses permitted under this Lease, and (iii) the office portion of the Tenant Improvements
(which shall not include any machine shop or the installation of the Machine Shop Equipment, as defined below) are complete in accordance with Exhibit D other than with respect to industry standard punchlist items, which Landlord shall
correct promptly thereafter. The Parties acknowledge that, if the Lease Commencement Date occurs (a) later than April 1, 2013 (which date is subject to extension due to Lease Commencement Date Delay, defined in Section 5.5 of
the Tenant Work Letter), then Tenant shall as its sole remedy for such late delivery be entitled to one and one-half days of free Base Rent for each day beyond April 1, 2013 (as extended, if applicable)
that the Lease Commencement Date occurs; and (b) later than May 1, 2013 (which date is subject to extension due to Lease Commencement Date Delay), then Tenant shall as its sole remedy for such late delivery be entitled to two days of free
Base Rent for each day beyond May 1, 2013 (as extended, if applicable) that the Lease Commencement Date occurs (in addition to the free Base Rent already accrued pursuant to subsection “a” above). If the Lease Commencement Date has
not occurred by July 1, 2013 (which date is subject to extension due to Lease Commencement Date Delay) then Tenant may at its election terminate this Lease by delivery of written notice to
Landlord.

  
 v 

			
		
	 7.3.  Lease Expiration Date:
	 	The date immediately preceding the day that is eighty-six (86) months after the Lease Commencement Date, provided that if the Lease Expiration Date is not the last day of the month, then
the Lease Expiration Date shall be extended to be the last day of the month that contains the Lease Expiration Date.
		
	 7.4  Option to Extend:
	 	Two (2) options to extend the Lease Term for a period of three (3) years, each.
		
	8.  Base Rent (Article 3):	 	

  

							
	 Months During
Lease Term
	 	 Annual

Base Rent
	 	 Monthly
Installment
of Base Rent
	 	 Monthly

Base Rent per
Rentable Square Foot
of the Premises

	*1-6	 	$412,800.00	 	$34,400.00	 	$1.72
	*7-12	 	$522.604.80	 	$43,550.40	 	$1.72
	13-24	 	$842,272.20	 	$70,189.35	 	$1.77
	25-36	 	$866,065.20	 	$72,172.10	 	$1.82
	37-48	 	$894,616.80	 	$74,551.40	 	$1.88
	49-60	 	$923,168.40	 	$76,930.70	 	$1.94
	61-72	 	$946,961.40	 	$78,913.45	 	$1.99
	73-84	 	$975,513.00	 	$81,292.75	 	$2.05
	85-86	 	$1,008,823.20	 	$84,068.86	 	$2.12

  

	*	 The Monthly Base Rent set forth above for the initial twelve (12) calendar month period of the Lease Term
(“Phase In Period”) has been calculated based upon on a reduced square footage (but Tenant will actually be occupying 39,655 rentable square feet as of the Lease Commencement as provided in Section 6.2 of
the Summary) as follows: (a) 20,000 rentable square feet for months 1 through 6 and (b) 25,320 rentable square feet for months 7 through 12. 

	*	 Subject to the abated base rent provision in Section 3.2 of the Lease.

  

			
	9.  Additional Rent (Article 4).	 	
		
	 9.1.  Base Year:
	 	The calendar year of 2013.
		
	 9.2.  Tenant’s Share of Direct Expenses:
	 	Approximately 38.30% (calculated on the basis of 39,655 rentable square feet of the Premises divided by 103,548 square feet of the Building).

  
 vi 

			
		
	10.  Security Deposit (Article 21):	 	$230,792, except that notwithstanding anything to the contrary in this Lease, (a) Tenant shall only be obligated to deposit with Landlord the sum of $146,723 as of the execution of this Lease, and the balance of the Security
Deposit, in the sum of $84,069, shall not be due from Tenant until 60 days after the execution of this Lease, (b) on the 25th month anniversary of the execution of this Lease, provided that
Tenant has not previously been in an uncured default (beyond the applicable notice and cure periods) under this Lease, then the amount of the Security Deposit shall be reduced by the sum of $72,172 to the amount of $158,620 and Landlord shall refund
to Tenant such sum of $72,172 on such 25th month anniversary, and (c) on the 42nd month anniversary of the execution of this Lease,
provided that Tenant has not previously been in an uncured default (beyond the applicable notice and cure periods) under this Lease, then the amount of the Security Deposit shall be reduced by the sum of $74,551 to the amount of $84,069 and Landlord
shall refund to Tenant such sum of $74,551 on such 42nd month anniversary.
		
	11.  Number of Parking Passes (Article 28):	 	4.0 unreserved parking passes per 1,000 rentable square foot of the Premises.
		
	12.  Brokers (Section 29.19):	 	 Landlord’s Broker: Cassidy Turley Commercial Real Estate Services

 
 Tenant’s Broker: Tenant Consulting Services. Inc.

		
	13.  Permitted Use (Section 5):	 	General office and administrative uses and for sales, training of staff, employees and outside vendors, engineering and related testing and prototype lab for Tenant’s spinal related products, a machine shop that includes the
equipment described on attached Exhibit F or reasonable replacements thereof (the “Machine Shop Equipment”) (subject to the terms of Section 6.5 below), warehouse and shipping/receiving of products from the
Premises and ancillary uses related to the foregoing consistent with the character of a first-class office building in the surrounding area and in compliance with all Applicable Laws and “CC&Rs” (as that term is defined in Article 5
of this Lease) governing the Real Property.

  
 vii 

 ARTICLE 1 

REAL PROPERTY, BUILDING, COMMON AREAS, PREMISES, FIRST REFUSAL 

SPACE AND TEMPORARY SPACE 

1.1    Real Property, Building, Common Areas and Premises. Upon and subject to the
terms set forth in this Lease, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the premises set forth in Section 6.2 of the Summary (the “Premises’’), which Premises are located
in the building (the “Building”) set forth in Section 6.1 of the Summary, reserving, however, to Landlord all of the Building, except for the space within the inside surfaces bounding the Premises, and
except as provided below in this Article 1. The outline of the Premises is set forth in Exhibit A attached hereto. The rentable square footages of the Premises and the Building are set forth in
Section 6 of the Summary. The Building, the parking structure servicing the Building, the land upon which the Building stands, and the land, improvements and other buildings surrounding the Building which are designated
from time to time by Landlord as appurtenant to or servicing the Building, are herein sometimes collectively referred to herein as the “Real Property.” Except as specifically set forth in this Lease and in the Tenant Work Letter
attached hereto as Exhibit D (“Tenant Work Letter”), Landlord shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Premises. Tenant also acknowledges that
neither Landlord nor any agent of Landlord has made any representation or warranty regarding the condition of the Premises, the Building or the Real Property or with respect to the suitability of any of the foregoing for the conduct of Tenant’s
business, except as specifically set forth in this Lease and the Tenant Work Letter. Provided that Tenant has a right to inspect and subject to any exceptions noted in writing by Tenant to Landlord promptly upon Tenant’s taking possession of
the Premises, the taking of possession of the Premises by Tenant shall conclusively establish that the Premises and the Building were at such time in good and sanitary order, condition and repair. Tenant is hereby granted the right to the
nonexclusive use of the common corridors and hallways, stairwells, elevators, restrooms and other public or common areas located on the Real Property (such areas, together with such other portions of the Real Property designated by Landlord, in its
reasonable discretion, are collectively referred to herein as the “common areas”) and the use thereof shall be subject to the rules, regulations and restrictions attached hereto as Exhibit B (the “Rules
and Regulations”). Subject to Section 9.6, Landlord reserves the right to make alterations or additions to or to change the location of elements of the Real Property and the common areas thereof, provided that such alterations,
additions or changes shall not unreasonably interfere with Tenant’s ability to access the Premises. Tenant’s use of the Premises. Tenant’s use of its parking spaces and/or Tenant’s use of essential portions of the common areas
(other than emergency situations). 
 1.2    Rentable Square Feet of Premises and Building.
For purposes of this Lease, all measurements shall be calculated pursuant to Standard Method for Measuring Floor Area in Office Buildings. ANSI Z65.I - 2010 (“BOMA”), provided that the square footage of the Building shall
include all of, and the square footage of the Premises therefore shall include a portion of, the square footage of the ground floor common areas located within the Building and the common area and occupied space of the portion of the Building or
Real Property, dedicated to the service of the Building. The rentable square feet of the Premises and the Building shall be as set forth in Sections 6.2 and 6.1 of the Summary, respectively and such square footages shall not be subject
to verification or modification during the Lease Term except as set forth in the Summary. 

  
 1 

 1.3    Right of First Refusal. During the
Lease Term, Tenant shall have an ongoing right of first refusal with respect to any space contiguous to the Premises (the “First Refusal Space”) upon and subject to the terms and conditions set forth in this
Section 1.3. 
 1.3.1    Method of Exercise. Landlord shall notify
Tenant in writing (the “First Refusal Notice”) in the event that Landlord makes a bona fide offer to a third party (or receives a bona fide offer from a third party that Landlord intends to accept) for the potential lease of all or
any portion of the First Refusal Space (the “Offered Space”). For a period of seven (7) days following Tenant’s receipt of the First Refusal Notice (the “Election Period”). Tenant shall have the right to
inform Landlord in writing (the “Acceptance Notice”) that Tenant desires to lease the Offered Space on the terms and conditions as set forth in the First Refusal Notice. Tenant’s lease of the Offered Space shall be on the terms
set forth in the First Refusal Notice (and to the extent not inconsistent with the First Refusal Notice the provisions of this Lease). If Tenant fails to deliver written notice to Landlord of Tenant’s election to lease the Offered Space within
such seven (7) day period, Landlord shall be entitled to enter into a lease with such potential third party tenant for the Offered Space, provided that prior to entering a lease with a third party tenant on terms which, on a net effective,
present value basis, are more than 5% more favorable to the tenant than the terms contained in the First Refusal Notice, Landlord shall first deliver a revised First Refusal Notice to Tenant on such more favorable terms in accordance with the
procedure set forth above. 
 1.3.2    Delivery of the Offered Space. Provided that Tenant
timely exercises its option to lease the Offered Space, Landlord shall deliver the Offered Space to Tenant on a date set forth in the First Refusal Notice (the “Delivery Date”). Notwithstanding the foregoing. Landlord shall have no
liability to Tenant for any damages resulting from any delay in delivering possession of the Offered Space to Tenant on any particular delivery date designated by Landlord or designated in this Lease, if such delay is caused by the holding over of a
previous tenant of the Offered Space. 
 1.3.3    Improvement of Offered Space. Tenant
agrees that Tenant shall accept the Offered Space in its then existing “as is” condition, subject to any improvement allowance specified in the First Refusal Notice. 

1.3.4    Amendment to Lease. If Tenant timely exercises Tenant’s right to lease the
Offered Space as set forth herein, Landlord and Tenant shall within fifteen (15) days thereafter execute an amendment adding such Offered Space to the Lease, as hereby amended, upon the same terms and conditions as the Premises, except as
otherwise set forth in this Section 1.3. Tenant shall commence payment of Rent for the Offered Space and the term of the Offered Space shall commence as set forth in the First Refusal Notice (the “First Refusal Space Commencement
Date”). 
 1.3.5    Superior Rights. If Tenant, following its receipt of a First
Refusal Notice, fails to exercise its right to lease all of the Offered Space set forth in a First Refusal Notice, then Landlord shall have the right to enter into an interim lease (an “Interim Lease”) with a third party with
respect to the Offered Space, and Tenant’s right of first refusal as set forth in this Section 1.3 shall be subordinate to all rights of the tenant under the Interim Lease. 

  
 2 

 1.3.6    Termination of Right of First Refusal.
The rights contained in this Section 1.3 shall be personal to the Tenant originally named in this Lease (“Original Tenant”) or a “Non-Transferee
Assignee.” as defined in Section 14.7 of this Lease, may only be exercised by the Original Tenant or a Non-Transferee Assignee (and not any other assignee, sublessee or other
transferee of Tenant’s interest in the Lease, as hereby amended) if the Tenant or an NonTransferee Assignee occupies the entire Premises. Tenant shall not have the right to lease the Offered Space as provided in this
Section 1.3 if, as of the date of the attempted exercise of the first refusal right by Tenant, or as of the scheduled date of delivery of the Offered Space to Tenant, Tenant is in default under this Lease beyond the
applicable notice and cure period, or has previously been in default under this Lease beyond the applicable notice and cure period more than once. In addition, Tenant’s right of refusal as set forth in this Section 1.3
shall terminate upon the expiration of the Lease Term. 
 1.4    Temporary Space. Commencing
on the date which is one (1) business day following the date (the “Temporary Space Commencement Date”) which is the later of (i) the date of mutual execution and delivery of this Lease and Landlord’s receipt of the
Security Deposit (“Effective Date”) and (ii) Landlord’s receipt of the certificates of insurance required pursuant to Article 10 of this Lease and continuing until the day immediately preceding the Lease Commencement Date
(the “Temporary Space Expiration Date”). Tenant shall be entitled to use that certain space commonly known as Suite 130, located on the first (1st) floor of the Building, as
depicted on Exhibit A-l attached hereto (the “Temporary Space”). The period from the Temporary Space Commencement Date through the Temporary Space Expiration Date shall be
referred to as the “Temporary Space Occupancy Period.” Landlord shall deliver the Temporary Space to Tenant on or before the Temporary Space Commencement Date in its then- existing
“as-is” condition. Upon delivery of the Temporary Space to Tenant by Landlord, Tenant shall have the right to occupy such Temporary Space provided that all of the terms and conditions of this Lease
shall apply (including, without limitation, Tenant’s indemnity and insurance obligations) with respect to the Temporary Space, as though the Temporary Space were a part of the Premises (even though the Temporary Space shall not be deemed to be
a part of the Premises) and, during the Temporary Occupancy Period, Tenant shall be responsible for paying for the cost of all utilities supplied to the Temporary Space except that Tenant shall not be obligated to pay monthly Base Rent and
Tenant’s Share of Direct Expenses for the Temporary Space during the Temporary Space Occupancy Period. Tenant hereby acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty regarding the condition of
the Temporary Space or with respect to the suitability of such space for Tenant’s use thereof or the conduct of Tenant’s business. Tenant shall vacate and surrender the Temporary Space to Landlord, in accordance with the terms of
Article 15 of this Lease, on or before the Temporary Space Expiration Date. If Tenant fails to timely and properly vacate and surrender the Temporary Space to Landlord pursuant to the immediately preceding sentence, Tenant shall be deemed to
be holding over in such Temporary Space and the terms of Article 16 of this Lease shall apply to such holdover, except that the monthly Base Rent payable during such holdover period with respect to the Temporary Space shall be $1.72 per
rentable square foot of the Temporary Space for the first three (3) months of such holdover and thereafter Tenant will be charged 125% of such monthly Base Rent amount. 

  
 3 

 ARTICLE 2 

LEASE TERM; OPTION TO EXTEND 

2.1    In General. The terms and provisions of this Lease shall be effective as of the date
(“Effective Date”) of the mutual execution and delivery of this Lease. The term of this Lease (the “Lease Term”) shall be as set forth in Section 7.1 of the Summary and shall commence on
the date (the “Lease Commencement Date”) set forth in Section 7.2 of the Summary, and shall terminate on the date (the “Lease Expiration Date”) set forth in
Section 7.3 of the Summary, unless this Lease is sooner terminated as hereinafter provided or unless this Lease is extended pursuant to Section 2.2 below. For purposes of this Lease, the term “Lease Year”
shall mean each consecutive twelve (12)-month period during the Lease Term. At any time during the Lease Term, Landlord may deliver to Tenant a notice in the form as set forth in Exhibit C. attached hereto, which Tenant shall execute and
return to Landlord within five (5) days of receipt thereof. 
 2.2    Option to Extend. 

2.2.1.    Option Right. Subject to the terms hereof, Landlord hereby grants to the Original
Tenant two (2) consecutive options (each an “Option”) to extend the Lease Term for a period of three (3) years each (each an “Option Term”), which option shall each be exercisable only by written notice
delivered by Tenant to Landlord as set forth below; provided that, as of the date of delivery of such notice, (i) Tenant is not then in default under this Lease (beyond the applicable notice and cure periods), (ii) Tenant has not been in
default under this Lease (beyond the applicable notice and cure periods) more than once during the prior twelve (12) month period and (iii) Tenant has not been in default under this Lease (beyond the applicable notice and cure periods)
more than three (3) times during the Lease Term or, if applicable, the first option term (“First Option Term”). Upon the proper exercise of such option to extend, and provided that, as of the end of the Lease Term, or if
applicable, the First Option Term, (A) Tenant is not in default under this Lease (beyond the applicable notice and cure periods), (B) Tenant has not been in default under this Lease (beyond the applicable notice and cure periods) more than once
during the prior twelve (12) month period and (C) Tenant has not been in default under this Lease (beyond the applicable notice and cure periods) more than three (3) times during the Lease Term or if applicable, the First Option Term,
then the Lease Term, or if applicable, the First Option Term, as it applies to the Premises, shall be extended for a period of three (3) years. The rights contained in this Section 2.2 shall be personal to the Original
Tenant and any “NonTransferee Assignee.” as defined in Section 14.7 of this Lease, and may only be exercised by the Original Tenant or a Non-Transferee Assignee (and not any
other assignee, sublessee or other transferee of the Original Tenant’s interest in this Lease) if the Original Tenant and/or a Non-Transferee Assignee is in occupancy of the entire Premises. 

  
 4 

 2.2.2    Option Rent. The rent payable by
Tenant during the Option Term (the “Option Rent”) shall be equal to the Fair Market Rent Rate. The “Fair Market Rent Rate” shall be equal to the rent (including additional rent and considering any “base
year” or “expense stop” applicable thereto, which base year shall be adjusted to the calendar year in which the First Option Term, or if applicable, the second Option Term commences), including all escalations, at which tenants, as of
the commencement of the First Option Term, or if applicable, the second Option Term, are, pursuant to transactions completed within the twelve (12) month period prior to the commencement date of the First Option Term, or if applicable, the
second Option Term, leasing non-sublease, non-encumbered, non-equity, renewal,
non-expansion space reasonably comparable in size, location and quality to the Premises, for a similar lease term, in an arms length transaction, which comparable space is located in the Real Property and if
there are no such transactions at the Real Property, then in the “Comparable Buildings,” as that term is defined in Section 4.2.5.1 of this Lease, (such transactions shall be collectively referred to as the “Comparable
Transactions”), in either case taking into consideration the following concessions: (a) rental abatement concessions, if any, being granted such tenants in connection with such comparable space, and (b) all other monetary and non-monetary concessions, if any, being granted such tenants in connection with such comparable space (the foregoing items (a)- (b) shall be referred to as the “Renewal Concessions”); provided,
however, that notwithstanding anything to the contrary herein, no consideration shall be given to (x) the fact that Landlord is or is not required to pay a real estate brokerage commission in connection with the First Option Term, or if
applicable, the second Option Term, or the fact that the Comparable Transactions do or do not involve the payment of real estate brokerage commissions, (y) any period of rental abatement, if any, granted to such tenants in Comparable
Transactions in connection with the design, permitting and construction of tenant improvements in such comparable spaces and (z) any improvement allowances, if any, granted to such tenants in Comparable Transactions (the foregoing items (x)-(z)
shall be referred to as the “Excluded Concessions”). In the determination of the Option Rent, if any Renewal Concessions are granted to Tenant, Landlord may, at Landlord’s sole option, elect any or a portion of the following:
(1) to grant to some or all of the concessions to Tenant in the form as described above (i.e., as free rent), or (2) to adjust the rental rate component of the Option Rent to be an effective rental rate which takes into consideration the
total dollar value of such concessions (in which case the Renewal Concessions evidenced in the effective rental rate shall not be granted to Tenant). The Fair Market Rent Rate shall additionally include a determination as to whether, and if so to
what extent, Tenant must provide Landlord with financial security, such as a letter of credit or guaranty, for Tenant’s Rent obligations during the First Option Term, and if applicable, the second Option Term. Such determination shall be made
by reviewing the extent of financial security then generally being imposed in Comparable Transactions from tenants of comparable financial condition and credit history to the then existing financial condition and credit history of Tenant (with
appropriate adjustments to account for differences in the then-existing financial condition of Tenant and such other tenants). 

2.2.3    Exercise of Option. Each Option contained in this
Section 2.2 shall be exercised by Tenant, if at all, only in the following manner: (i) Tenant shall deliver written notice (“Interest Notice”) to Landlord not more than nine (9) months nor less
than eight (8) months prior to the expiration of the initial Lease Term, or, if applicable, the First Option Term, stating that Tenant is interested in exercising its option to extend and stating that Tenant has

  
 5 

 
elected exercise its option to extend for all or only a portion of the Premises; (ii) Landlord, after receipt of Tenant’s Interest Notice, shall deliver notice (the “Option Rent
Notice”) to Tenant not less than seven (7) months prior to the expiration of the initial Lease Term or, if applicable, the First Option Term, setting forth the Option Rent and, if applicable, Landlord shall designate and identify which
portion of the Premises shall be retained by Tenant during the applicable Option Term; (iii) within thirty (30) days after Tenant’s receipt of the Option Rent Notice, Tenant shall, at its election, either (A) revoke Tenant’s
prior Interest Notice with respect to such Option Term, (B) accept the Option Rent specified by Landlord and irrevocably exercise the Option by delivering written notice (“Exercise Notice”) thereof to Landlord or
(C) irrevocably exercise the Option by delivering written notice (“Exercise Notice”) thereof to Landlord and concurrently therewith object to the Option Rent contained in the Option Rent Notice, in which case the parties shall
follow the procedure, and the Option Rent shall be determined, as set forth in Section 2.2.4 below. 

2.2.4    Determination of Option Rent. In the event Tenant timely and appropriately objects to the
Option Rent, Landlord and Tenant shall attempt to agree upon the Option Rent using their best good-faith efforts. If Landlord and Tenant fail to reach agreement within ten (10) days following Tenant’s objection to the Option Rent (the
“Outside Agreement Date”), then each party shall make a separate determination of the Option Rent within five (5) days, and such determinations shall be submitted to arbitration in accordance with Sections 2.2.4.1
through 2.2.4.7 below, provided that Landlord’s determination of Option Rent submitted to arbitration shall not be higher than the Option Rent contained in the Option Rent Notice (when calculated with any concessions to be given on a net
effective rental rate basis). 
 2.2.4.1 Landlord and Tenant shall each appoint one arbitrator who shall by profession be a real estate
broker or appraiser who shall have been active over the ten (10) year period ending on the date of such appointment in the leasing (or appraisal, as the case may be) of comparable commercial properties in the vicinity of the Real Property. Each
such arbitrator shall be appointed within ten (10) days after the applicable Outside Agreement Date. 
 2.2.4.2 The two arbitrators so
appointed shall within five (5) business days of the date of the appointment of the last appointed arbitrator agree upon and appoint a third arbitrator who shall be qualified under the same criteria set forth hereinabove for qualification of
the initial two arbitrators. 
 2.2.4.3 The three arbitrators shall within thirty (30) days of the appointment of the third arbitrator
reach a decision as to whether the parties shall use Landlord’s or Tenant’s submitted Option Rent and shall notify Landlord and Tenant thereof. The determination of the arbitrators shall be limited solely to the issue of whether
Landlord’s or Tenant’s submitted Option Rent is the closest to the actual Option Rent as determined by the arbitrators, taking into account the requirements of Section 2.2.2 of this Lease. 

2.2.4.4 The decision of the majority of the three (3) arbitrators shall be binding upon Landlord and Tenant. 

2.2.4.5 If either Landlord or Tenant fails to appoint an arbitrator within ten (10) days after the applicable Outside Agreement Date,
the arbitrator appointed by one of them shall reach a decision, notify Landlord and Tenant thereof, and such arbitrator’s decision shall be binding upon Landlord and Tenant. 

  
 6 

 2.2.4.6 If the two arbitrators fail to agree upon and appoint a third arbitrator, or both
parties fail to appoint an arbitrator, then the appointment of the third arbitrator or any arbitrator shall be dismissed and the matter to be decided shall be forthwith submitted to arbitration under the provisions of the American Arbitration
Association, but subject to the instruction set forth in this Section 2.2.4. 

2.2.4.7    The cost of arbitration shall be paid by Landlord and Tenant equally. 

2.2.5    Tenant’s Election to Exercise Option For Less Than All of the Premises. In
connection with Tenant’s exercise of an Option, Tenant shall have the right to elect, in its sole discretion, to extend the initial Term or the First Option Term, as the case may be, for all or a portion of the Premises then being leased by
Tenant, provided that if Tenant elects to exercise its option to extend with respect to less than the entire Premises then leased by Tenant, then (a) Tenant shall, concurrently with Tenant’s delivery of the Interest Notice to Landlord,
designate the approximate number of square footage and then Landlord shall designate, in its reasonable discretion, the portion of the Premises which Tenant shall continue lease during the First Option Term, and if applicable, the second Option
Term, (b) any portion of the Premises that Tenant will not continue to lease during the First Option Term or second Option Term, to the extent applicable, must be of a configuration acceptable to Landlord and that would not affect the
marketability of such space for lease, as determined by Landlord in its sole discretion and (c) one hundred percent (100%) of the “Demising Costs,” as defined below, shall be paid for by Tenant. For purposes hereof, “Demising
Costs” mean all costs of separating the portion of the Premises for which the applicable Option is exercised from the portion of the Premises for which the applicable Option is not exercised, including the cost of constructing the demising
walls, separating building systems and installing any new entrances and corridor extensions that are necessary to provide building code compliant ingress and egress to the portion of the Premises for which Tenant elected not to exercise its Option.

 2.3    Early Access. Landlord shall allow Tenant access to the Premises, at no charge to
Tenant, at least thirty (30) days prior to the Lease Commencement Date for the sole purpose of Tenant installing equipment, furniture and fixtures (including Tenant’s data and telephone equipment) in the Premises provided that
(x) Tenant and its agents do not interfere with the performance of or otherwise delay the completion of the “Tenant Improvements,” as defined in Section 1 of the Tenant Work Letter, (y) prior to
Tenant’s entry into the Premises as permitted by the terms of this Section 2.3, Tenant shall notify Landlord of such early entry and submit a schedule to Landlord, for its approval, which schedule shall detail the
timing and purpose of Tenant’s entry, and Tenant shall adhere to Landlord’s reasonable rules and regulations with respect to Tenant’s entry into the Premises and (z) Tenant delivers evidence of the insurance required under
Article 10 of this Lease. Tenant shall hold Landlord harmless from and indemnify, protect and defend Landlord against any loss or damage to the Building or Premises and against injury to any persons caused by Tenant’s actions pursuant to
this Section 2.3.  

  
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 ARTICLE 3 

BASE RENT; ABATEMENT OF MONTHLY BASE RENT 

3.1    Base Rent. Tenant shall pay, without notice or demand, to Landlord at the management
office of the Building, or at such other place as Landlord may from time to time designate in writing, in the form of a check (which is drawn upon a bank which is located in the State of California) or currency which, at the time of payment, is
legal tender for private or public debts in the United States of America, base rent (“Base Rent”), payable in monthly installments as set forth in Section 8 of the Summary and
Section 3.2.1 below in advance on or before the first day of each and every calendar month during the Lease Term, without any setoff or deduction whatsoever. The Base Rent for the first (1st) full calendar month of the
Lease Term shall be paid at the time of Tenant’s execution of this Lease. If any “Rent”, as that term is defined in Section 4.1, below, payment date (including the Lease Commencement Date) falls on a
day of a calendar month other than the first day of such calendar month or if any Rent payment is for a period which is shorter than one calendar month such as during the last month of the Lease Term, the Rent for any fractional calendar month shall
accrue on a daily basis for the period from the date such payment is due to the end of such calendar month at a rate per day which is equal to 1/30 of the Rent. All other payments or adjustments required to be made under the terms of this Lease that
require proration on a time basis shall be prorated on the same basis. 
 3.2    Abatement of Monthly Base Rent;
Landlord’s Right to Purchase Abatement Amount. 
 3.2.1    Abatement of Monthly Base Rent.
Notwithstanding anything in Section 3.1 above to the contrary and provided that Tenant is not then in default under this Lease (beyond any applicable notice and cure period), Tenant shall be entitled to an abatement of the Monthly Base
Rent due under this Lease for the Premises in an amount equal to $427,219.25, in the aggregate (“Monthly Base Rent Abatement Amount”), which Monthly Base Rent Abatement Amount shall be applied in equal monthly installments to fifty
percent (50%) of the Monthly Base Rent due under this Lease commencing as of the Commencement Date and ending when the Monthly Base Rent Abatement Amount has been exhausted (the “Base Rent Abatement Period”). Tenant acknowledges
that the Monthly Base Rent Abatement Amount has been granted to Tenant as additional consideration for entering into this Lease and for agreeing to pay the Rent and perform the other terms and conditions required under this Lease. Accordingly, if
this Lease terminates due to a Tenant default under this Lease, then Tenant shall be obligated to pay to Landlord (in addition to Landlord’s other remedies) the unamortized amount (amortized straight-line basis over the initial Lease Term) of
the Monthly Base Rent Abatement Amount that was abated through the date of termination. For purposes of example, if this Lease is terminated due to a Tenant default after the end of the fortieth
(40th) month of the Term, then Tenant would be obligated to repay (86-40)/86 of the entire Monthly Base Rent Abatement Amount. The rights contained in this
Section 3.2 shall be personal to the Original Tenant and may only be exercised by the Original Tenant (and not any assignee, sublessee or transferee of the Original Tenant’s interest in this Lease) if the Original
Tenant is in occupancy of the entire Premises. 

  
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 3.2.2    Landlord’s Right to Purchase the Abatement
Amount. At any time during the Lease Term, upon notice to Tenant, Landlord shall have the right to purchase the Monthly Base Rental Abatement Amount then remaining as of the “Payment Date,” as defined below, by paying to
Tenant an amount equal to the “Rent Abatement Payout Price,” as that term is defined below. As used herein, “Rent Abatement Payout Price” shall mean the present value of the Monthly Base Rental Abatement Amount then
remaining during the Lease Term, as of the date of payment (“Payment Date”) by Landlord to Tenant of the Rent Abatement Payout Price by Landlord. Such present value shall be calculated (i) by using the portion of the Monthly
Base Rental Abatement Amount then remaining as of the Payment Date (as though such remaining portion of the Monthly Base Rental Amount benefitted Tenant at the mid-way point between the Payment Date and the
last day of the abatement period) and (ii) 
by using a discount rate of five percent (5%) per annum. 
 ARTICLE 4 

ADDITIONAL RENT 

4.1    Additional Rent. In addition to paying the Base Rent specified in Article 3 of
this Lease, Tenant shall pay as additional rent “Tenant’s Share” of the annual “Direct Expenses.” as those terms are defined in Sections 4.2.6 and 4.2.2 of this Lease, respectively, which are in excess of the
amount of Direct Expenses applicable to the “Base Year.” as that term is defined in Section 4.2.1 of this Lease; provided however, Tenant shall not be obligated to pay any such excess during the first
twelve (12) months of the initial Lease Term. Such additional rent, together with any and all other amounts payable by Tenant to Landlord, as additional rent or otherwise, pursuant to the terms of this Lease, shall be hereinafter collectively
referred to as the “Additional Rent.” The Base Rent and Additional Rent are herein collectively referred to as the “Rent.” All amounts due under this Article 4 as Additional Rent shall be payable for the same
periods and in the same manner, time and place as the Base Rent. Without limitation on other obligations of Tenant which shall survive the expiration of the Lease Term, the obligations of Tenant to pay the Additional Rent provided for in this
Article 4 shall survive the expiration of the Lease Term. 
 4.2    Definitions. As
used in this Article 4, the following terms shall have the meanings hereinafter set forth: 

4.2.1    “Base Year” shall mean the period set forth in Section 9.1 of
the Summary. 
 4.2.2    “Direct Expenses” mean “Operating Expenses” and
“Tax Expenses,” as those terms are defined herein below. 
 4.2.3    “Expense Year”
shall mean each calendar year in which any portion of the Lease Term falls, through and including the calendar year in which the Lease Term expires. 

4.2.4    “Operating Expenses” shall mean all expenses, costs and amounts of every kind and nature
which Landlord shall pay or incur during the Base Year or any Expense Year in accordance with sound real estate management principles consistently applied because of 

  
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or in connection with the ownership, management, maintenance, repair, replacement, restoration or operation of the Real Property, including, without limitation, any amounts paid or incurred for
(i) the cost of supplying all utilities, the cost of operating, maintaining, repairing, replacing, renovating and managing the utility systems, mechanical systems, sanitary and storm drainage systems, and escalator and elevator systems, and the cost
of supplies, tools, and equipment and maintenance and service contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the cost of contesting the validity or applicability of any governmental
enactments which may affect Operating Expenses, and the costs incurred in connection with the implementation and operation of a transportation system management program or similar program; (iii) the cost of insurance carried by Landlord, in
such amounts as Landlord may reasonably determine; (iv) fees, charges and other costs, including management fees (or amounts in lieu thereof), consulting fees (including, but not limited to, any consulting fees incurred in connection with the
procurement of insurance), legal fees and accounting fees, of all persons engaged by Landlord or otherwise reasonably incurred by Landlord in connection with the management, operation, maintenance and repair of the Real Property; (v) the cost
of parking area repair, restoration, and maintenance, including, but not limited to, resurfacing, repainting, restriping, and cleaning; (vi) wages, salaries and other compensation and benefits of all persons engaged in the operation,
maintenance or security of the Real Property, and employer’s Social Security taxes, unemployment taxes or insurance, and any other taxes which may be levied on such wages, salaries, compensation and benefits; provided, that if any employees of
Landlord provide services for more than one building of Landlord, then a prorated portion of such employees’ wages, benefits and taxes shall be included in Operating Expenses based on the portion of their working time devoted to the Real
Property; (vii) payments under any easement, license, operating agreement, declaration, restrictive covenant, or instrument pertaining to the sharing of costs by the Building; (viii) amortization (including interest on the unamortized cost
at a rate equal to the floating commercial loan rate announced from time to time by Bank of America, a national banking association, or its successor, as its prime rate, plus 2% per annum (the “Interest Rate”) of the cost of
acquiring or the rental expense of personal property used in the maintenance, operation and repair of the Building and Real Property; and (ix) the cost of capital improvements or other costs incurred in connection with the Real Property
(A) which relate to the operation, repair, maintenance and replacement of all systems, equipment or facilities which serve the Real Property in the whole or in part, (B) which are intended as a labor-saving device or to effect other
economies in the operation or maintenance of the Real Property, or any portion thereof to the extent of cost savings reasonably anticipated by Landlord, or (C) that are required under any governmental law or regulation that is first being
enforced by a federal, state or local governmental agency after the Lease Commencement Date; provided, however, that each such permitted capital expenditure shall be amortized (including interest on the unamortized cost) over its useful life as
Landlord shall reasonably determine, and further provided that Operating Expenses shall in no event include (1) the costs of leasing space within the Real Property, (2) any costs or expenses that are solely for the benefit of particular
tenants of the Real Property not including Tenant, (3) management fees in excess of 3% of the gross revenues of the Real Property per year, or (4) expenses in connection with services or other benefits which are not offered to Tenant or
for which Tenant is charged for directly but which are provided to another tenant or occupant of the Real Property, without charge. If the Building is not ninety-five percent (95%) occupied during all or a portion of the Base Year or any Expense
Year, Landlord shall make an appropriate adjustment to the variable components of 

  
 10 

 
Operating Expenses for such year as reasonably determined by Landlord employing sound accounting and management principles, to determine the amount of Operating Expenses that would have been paid
had the Building been ninety-five percent (95%) occupied, and the amount so determined shall be deemed to have been the amount of Operating Expenses for such year. 

4.2.5    “Tax Expenses” shall mean all federal, state, county, or local governmental or municipal
taxes, fees, charges or other impositions of every kind and nature, whether general, special, ordinary or extraordinary (including, without limitation, real estate taxes, general and special assessments, transit taxes, leasehold taxes or taxes based
upon the receipt of rent, including gross receipts or sales taxes applicable to the receipt of rent, unless required to be paid by Tenant, personal property taxes imposed upon the fixtures, machinery, equipment, apparatus, systems and equipment,
appurtenances, furniture and other personal property used in connection with the Building), which Landlord shall pay or incur during the Base Year or any Expense Year (without regard to any different fiscal year used by such governmental or
municipal authority) because of or in connection with the ownership, leasing and operation of the Real Property. Tax Expenses for the Base Year and each Expense Year shall be calculated as if the Building were ninety-five percent (95%) occupied by
tenants in space that is built out, and the Building is fully assessed as a result of the foregoing. 

4.2.5.1    Tax Expenses shall include, without limitation: 

(i)    Any assessment, tax, fee, levy or charge in addition to, or in substitution, partially or totally, of any
assessment, tax, fee, levy or charge previously included within the definition of real property tax, it being acknowledged by Tenant and Landlord that Proposition 13 was adopted by the voters of the State of California in the June 1978 election
(“Proposition 13”) and that assessments, taxes, fees, levies and charges may be imposed by governmental agencies for such services as fire protection, street, sidewalk and road maintenance, conservation, refuse removal and for other
governmental services formerly provided without charge to property owners or occupants, and, in further recognition of the decrease in the level and quality of governmental services and amenities as a result of Proposition 13, Tax Expenses shall
also include any governmental or private assessments or the Building’s contribution towards a governmental or private cost-sharing agreement for the purpose of augmenting or improving the quality of services and amenities normally provided by
governmental agencies. It is the intention of Tenant and Landlord that all such new and increased assessments, taxes, fees, levies, and charges and all similar assessments, taxes, fees, levies and charges be included within the definition of Tax
Expenses for purposes of this Lease; 
 (ii)    Any assessment, tax, fee, levy, or charge allocable to or measured by
the area of the Premises or the rent payable hereunder, including, without limitation, any gross income tax with respect to the receipt of such rent, or upon or with respect to the possession, leasing, operating, management, maintenance, alteration,
repair, use or occupancy by Tenant of the Premises, or any portion thereof; 
 (iii)    Any assessment, tax, fee, levy
or charge, upon this transaction or any document to which Tenant is a party, creating or transferring an interest or an estate in the Premises; and 

  
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 (iv)    Any possessory taxes charged or levied in lieu of real estate
taxes. 
 4.2.5.2    Any expenses incurred by Landlord in attempting to protest, reduce or minimize Tax Expenses
shall be included in Tax Expenses in the Expense Year such expenses are paid to the extent that such expenses reduce Tax Expenses. Tax refunds shall be deducted from Tax Expenses in the Expense Year they are received by Landlord (except that any tax
refund received in the Base Year that is allocable to a prior year shall not be included in the calculation of Tax Expenses for such Base Year). All special assessments which may be paid in installments shall be paid by Landlord in the maximum
number of installments permitted by law and not included in Operating Expenses except in the year in which the assessment is actually paid; provided, however, that if the prevailing practice of comparable to buildings of a similar class located in
the vicinity of the Building (the “Comparable Buildings”) is to pay such assessments on a yearly basis, and Landlord pays the same on such basis, such assessments shall be included in Operating Expenses in the year paid by Landlord.
In the event Tax Expenses for the Base Year are retroactively reduced due to a reassessment occurring after the expiration of the Base Year, the Tax Expenses component of the Base Year shall be proportionately reduced commencing with the
then-current Expense Year. 
 4.2.5.3    Notwithstanding anything to the contrary contained in this
Section 4.2.5 (except as set forth in Section 4.2.5.1 or levied in whole or part in lieu of Tax Expenses), there shall be excluded from Tax Expenses (i) all excess profits taxes, franchise
taxes, gift taxes, capital stock taxes, inheritance and succession taxes, estate taxes, federal and state income taxes, and other taxes to the extent applicable to Landlord’s general or net income (as opposed to rents, receipts or income
attributable to operations at the Building), (ii) any items included as Operating Expenses and (iii) any items paid by Tenant under Section 4.5 of this Lease. 

4.2.6    “Tenant’s Share” shall mean the percentage set forth in
Section 9.2 of the Summary. Tenant’s Share was calculated by multiplying the number of rentable square feet of the Premises by 100 and dividing the product by the total rentable square feet in the Building. In the
event either the Premises and/or the Building is expanded or reduced. Tenant’s Share shall be appropriately adjusted, and, as to the Expense Year in which such change occurs. Tenant’s Share for such year shall be determined on the basis of
the number of days during such Expense Year that each such Tenant’s Share was in effect. 

4.3    Calculation and Payment of Additional Rent; Cap on Controllable Operating Expenses. 

4.3.1    Calculation of Excess. If for any Expense Year ending or commencing within the Lease Term.
Tenant’s Share of Direct Expenses for such Expense Year exceeds Tenant’s share of the amount of Direct Expenses applicable to the Base Year, then Tenant shall pay to Landlord, in the manner set forth in
Section 4.3.2, below, and as Additional Rent, an amount equal to the excess (the “Excess”). Notwithstanding anything to the contrary, Landlord agrees that in calculating the Excess pursuant to this
Section 4.3.1, all Operating Expenses which are controllable by Landlord (“Controllable Costs”) (specifically excluding insurance premiums, Tax Expenses, costs of utilities and costs imposed upon the Real
Property by any recorded CC&Rs and agreements recorded against the Real Property) will not increase by 

  
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more than five percent (5%) per year (on a non-cumulative, non-compounding basis) (the “Maximum Permitted
Increase”), on a collective and not a per-item basis, over the amount of such controllable Operating Expenses for the Base Year. The unused portion of an Expense Year’s Maximum Permitted Increase
may be carried forward to absorb any future Operating Expenses that would otherwise be in excess of the Maximum Permitted Increase for such future Expense Year. 

4.3.2    Statement of Actual Direct Expenses and Payment by Tenant. Landlord shall endeavor to give to
Tenant, on or before the last day of April following the end of each Expense Year, a statement (the “Statement”) which shall state the Direct Expenses incurred or accrued for such preceding Expense Year, and which shall indicate the
amount, if any, of any Excess. Upon receipt of the Statement for each Expense Year ending during the Lease Term, if an Excess is present, Tenant shall pay, with its next installment of Base Rent due, the full amount of the Excess for such Expense
Year, less the amounts, if any, paid during such Expense Year as “Estimated Excess.” as that term is defined in Section 4.3.3, below. The failure of Landlord to timely furnish the Statement for any Expense
Year shall not prejudice Landlord from enforcing its rights under this Article 4. Even though the Lease Term has expired and Tenant has vacated the Premises, when the final determination is made of Tenant’s Share of the Direct Expenses
for the Expense Year in which this Lease terminates, taking into consideration that the Lease Expiration Date may have occurred prior to the final day of the applicable Expense Year, if an Excess is present, Tenant shall immediately pay to Landlord
an amount as calculated pursuant to the provisions of Section 4.3.1 of this Lease. The provisions of this Section 4.3.2 shall survive the expiration or earlier termination of the Lease Term. 

4.3.3    Statement of Estimated Direct Expenses. In addition, Landlord shall give Tenant a yearly expense
estimate statement (the “Estimate Statement”) which shall set forth Landlord’s reasonable estimate (the “Estimate”) of what the total amount of Direct Expenses for the then-current Expense Year shall be and the
estimated excess (the “Estimated Excess”) as calculated by comparing Direct Expenses, which shall be based upon the Estimate, to the amount of Direct Expenses applicable to the Base Year, which Estimate Statement may be revised and
reissued by Landlord from time to time. The failure of Landlord to timely furnish the Estimate Statement for any Expense Year shall not preclude Landlord from enforcing its rights to collect any Estimated Excess under this Article 4. If
pursuant to the Estimate Statement (or a revision thereof) an Estimated Excess is calculated for the then-current Expense Year, Tenant shall pay, with its next installment of Base Rent due, a fraction of the Estimated Excess (or the increase in the
Estimated Excess if pursuant to a revised Estimated Statement) for the then-current Expense Year (reduced by any amounts paid pursuant to the last sentence of this Section 4.3.3). Such fraction shall have as its numerator
the number of months which have elapsed in such current Expense Year to the month of such payment, both months inclusive, and shall have twelve (12) as its denominator. Until a new Estimate Statement is furnished, Tenant shall pay monthly, with
the monthly Base Rent installments, an amount equal to one-twelfth (1/12) of the total Estimated Excess set forth in the previous Estimate Statement delivered by Landlord to Tenant. 

4.4    Allocation of Direct Expenses. When calculating the Direct Expenses for the Base Year,
such Direct Expenses shall not include any increase in Tax Expenses attributable to special assessments, charges, costs, or fees, or due to modifications or changes in governmental 

  
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laws or regulations, including, but not limited to, the institution of a split tax roll, and Operating Expenses shall exclude market-wide labor-rate increases due to extraordinary circumstances,
including, but not limited to, boycotts and strikes, and utility rate increases due to extraordinary circumstances including, but not limited to, conservation surcharges, boycotts, embargoes or other shortages and amortized costs relating to capital
improvements; provided, however, that to the extent such assessments, charges, costs and/or fees shall also be included in Direct Expenses for any Expense Year subsequent to the Base Year, then such assessments, charges, costs and/or fees shall also
be included in Direct Expenses for the Base Year. 
 4.5    Taxes and Other Charges For Which Tenant Is
Directly Responsible. Tenant shall reimburse Landlord, as Additional Rent, upon demand for any and all taxes required to be paid by Landlord (except to the extent included in Tax Expenses by Landlord), excluding state, local and
federal personal or corporate income taxes measured by the net income of Landlord from all sources and estate and inheritance taxes, whether or not now customary or within the contemplation of the parties hereto, when; 

4.5.1    Said taxes are measured by or reasonably attributable to the cost or value of Tenant’s equipment,
furniture, fixtures and other personal property located in the Premises, or by the cost or value of any leasehold improvements made in or to the Premises by or for Tenant, to the extent the cost or value of such leasehold improvements exceeds the
cost or value of a building standard build-out as determined by Landlord regardless of whether title to such improvements shall be vested in Tenant or Landlord; 

4.5.2    Said taxes are assessed upon or with respect to the possession, leasing, operation, management,
maintenance, alteration, repair, use or occupancy by Tenant of the Premises, any portion of the Real Property or the parking facility used by Tenant in connection with this Lease; or 

4.5.3    Said taxes are assessed upon this transaction or any document to which Tenant is a party creating or
transferring an interest or an estate in the Premises. 
 4.6    Landlord’s Books and
Records. Within one hundred eighty (180) days after receipt of a Statement by Tenant, if Tenant disputes the amount of Additional Rent set forth in the Statement, a reputable certified public accountant (which accountant is a
member of a reputable independent nationally or regionally recognized accounting firm and has had previous experience in reviewing financial operating records of landlords of office buildings; provided that such accountant is not retained by Tenant
on a contingency fee basis), designated and paid for by Tenant, may, after reasonable notice to Landlord and at reasonable times, inspect Landlord’s records at Landlord’s offices, provided that Tenant is not then in default under this
Lease beyond the applicable notice and cure period. In connection with such inspection, Tenant and Tenant’s agents must agree in advance to abide by Landlord’s reasonable rules and procedures regarding inspections of Landlord’s
records, and shall execute a commercially reasonable confidentiality agreement regarding such inspection. Tenant’s failure to dispute the amount of Additional Rent set forth in any Statement within one hundred eighty (180) days of
Tenant’s receipt of such Statement shall be deemed to be Tenant’s approval of such Statement and Tenant, thereafter, waives the right or ability to dispute the amounts set forth in such Statement. If after such inspection, Tenant still
disputes such Additional Rent, a certification as 

  
 14 

 
to the proper amount shall be made, at Tenant’s expense, by an independent certified public accountant (the “Accountant”) selected by Landlord and subject to Tenant’s
reasonable approval; provided that if such certification by the Accountant proves that Direct Expenses were overstated by more than four percent (4%), then the cost of the Accountant and the cost of such certification shall be paid for by Landlord.
In no event shall this Section 4.6 be deemed to allow any review of any Landlord’s records by any subtenant of Tenant. Tenant agrees that this Section 4.6 shall be the sole method to be used
by Tenant to dispute the amount of any Direct Expenses payable or not payable by Tenant pursuant to the terms of this Lease, and Tenant hereby waives any other rights at law or in equity relating thereto. 

ARTICLE 5 

USE OF PREMISES 
 Tenant shall use
the Premises solely for the “Permitted Use.” as that term is defined in Section 13 of the Summary, and Tenant shall not use or permit the Premises to be used for any other purpose or purposes whatsoever without
the prior written consent of Landlord, which may be withheld in Landlord’s sole discretion, and shall not allow occupancy density of use of the Premises which is greater than 5 people per 1,000 rentable square feet. Tenant further covenants and
agrees that it shall not use, or suffer or permit any person or persons to use, the Premises or any part thereof for any use or purpose contrary to the Rules and Regulations, or in violation of the laws of the United States of America, the State of
California, or the ordinances, regulations or requirements of the local municipal or county governing body or other lawful authorities having jurisdiction over the Building. Tenant shall faithfully observe and comply with the Rules and Regulations.
Landlord shall enforce such Rules and Regulations in a non-discriminatory manner with respect to all tenants of the Real Property. Provided that Landlord uses its reasonable efforts to so enforce the Rules and
Regulations, Landlord shall not be liable with respect to the acts or omissions of any other tenants or occupants of the Building with respect to such Rules and Regulations. Tenant shall comply with all recorded covenants, conditions and
restrictions (collectively. “CC&Rs”) now affecting the Real Property. Subject to the remaining provisions of this Article, Tenant shall not use or allow another person or entity to use any part of the Premises for the storage,
use, treatment, manufacture or sale of hazardous materials or substances as defined pursuant to any applicable federal, state or local governmental or quasi-governmental law, code, ordinance, rule, or regulation. Landlord acknowledges that Tenant
intends to maintain a machine shop within the Premises that may include any or all of the Machine Shop Equipment, as further set forth in Section 6.5 below. Landlord acknowledges that Tenant has the right to use in its
business the hazardous materials described on attached Exhibit G in the quantities described therein and in the manner described below, and Tenant shall not be in violation of this Lease because of the use or presence of such hazardous
materials that are described on attached Exhibit G in the quantities described therein and in the manner described below provided that Tenant uses such hazardous materials in compliance with all applicable laws and Tenant maintains a
commercially reasonable, written hazardous material management plan, which Tenant shall deliver to Landlord upon request by Landlord. Exhibit G includes the chemical name and volume stored on site. All chemicals shall be stored, transported
and handled by Tenant as per applicable California and Federal Occupational Safety and Health Administration (OSHA) regulations and the Material Safety Data Sheet (MSDS) for each 

  
 15 

 
chemical. Tenant shall maintain all required OSHA procedures in place, i.e. Injury and Illness Prevention Program, as part of the Spinal Elements OSHA Compliance and Training Program.
Tenant’s personnel who will come in contact with the chemicals listed on Exhibit G shall be trained in the following areas specific to said chemicals: 

1. Chemical Product and Company Identification 

2. Composition/Information on Ingredients 

3. Hazard Identification 
 4.
First Aid Measures 
 5. Fire Fighting Measures 

6. Accidental Release Measures 

7. Handling and Storage 
 8.
Exposure Control/Personal Protection 
 9. Physical and Chemical Properties 

10. Stability and Reactivity 
 11.
Toxicological Information 
 12. Ecological Information 

13. Disposal Considerations 
 14.
Transport Information 
 15. Regulatory Information (Not meant to be all inclusive - selected regulation represented) 

16. Other Information (as required) 

Landlord acknowledges, however, that Tenant will maintain products in the Premises which are incidental to the operation of its offices, such
as photocopy supplies, secretarial supplies and limited janitorial supplies, which contain chemicals which are categorized as hazardous materials. Landlord agrees that the use of such products in the Premises in compliance with all applicable laws
and in the manner in which such products are designed to be used shall not be a violation by Tenant of this Article 5. 
 
ARTICLE 6 
 SERVICES AND UTILITIES 

6.1    Standard Tenant Services. Landlord shall provide the following services on all days
during the Lease Term, unless otherwise stated below. 
 6.1.1    Subject to all governmental rules, regulations
and guidelines applicable thereto, Landlord shall provide heating and air conditioning when necessary for normal comfort for normal general office use in the Premises (subject to Tenant’s obligation to pay for all electrical charges a as
provided in Section 6.4, below), from Monday through Friday, during the period from 7:00 a.m. to 7:00 p.m., and on Saturdays during the period from 8:00 a.m. to 1:00 p.m. (collectively. “Building Hours”),
except for Sundays and New Year’s Day. President’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving Day, Christmas Day and any other nationally and locally recognized holidays (collectively,
the “Holidays”). After-hours rates, which are subject to reasonable increases to the extent of Landlord’s actual costs (but not to increase by more than 5% for any year), are currently $40.00 per hour for heating or air
conditioning for the Premises. 

  
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 6.1.2    Subject to the other terms of this Lease, Landlord shall
provide electrical wiring and facilities for connection to Tenant’s lighting fixtures and incidental use equipment. Tenant shall not exceed the capacity of such facilities and Tenant’s electrical usage shall otherwise be subject to
Applicable Laws and regulations, including Title 24. Tenant shall bear the cost of replacement of lamps, starters and ballasts for any lighting fixtures within the Premises. 

6.1.3    Landlord shall provide city water from the regular Building outlets for lavatory and toilet purposes. 

6.1.4    Landlord shall provide janitorial services for normal general office use Monday through Friday except the
date of observation of the Holidays, in and about the Premises. 
 6.1.5    Landlord shall provide nonexclusive
automatic elevator service at all times. 
 6.2    Overstandard Tenant Use. Other than the
Machine Shop Equipment (which Landlord shall be deemed to approve and consent to notwithstanding its noise, vibrations, and emissions, provided that the Machine Shop Equipment and Tenant’s use thereof complies with Applicable Laws and the
applicable manufacturers’ operational specifications/guidelines), Tenant shall not. without Landlord’s prior written consent, use heat-generating machines, machines other than normal fractional horsepower office machines, or equipment or
lighting other than building standard lights in the Premises, which may affect the temperature otherwise maintained by the air conditioning system or increase the water normally furnished for the Premises by Landlord pursuant to the terms of
Section 6.1 of this Lease. If such consent is given, Landlord shall have the right to install supplementary air conditioning units or other facilities in the Premises, including supplementary or additional metering devices,
and the cost thereof, including the cost of installation, operation and maintenance, increased wear and tear on existing equipment and other similar charges, shall be paid by Tenant to Landlord upon billing by Landlord. If Tenant uses water, heat or
air conditioning (or any other services) in excess of that supplied by Landlord pursuant to Section 6.1 of this Lease, Tenant shall pay to Landlord, upon billing, the cost of such excess consumption, the cost of the
installation, operation, and maintenance of equipment which is installed in order to supply such excess consumption, and the cost of the increased wear and tear on existing equipment caused by such excess consumption; and Landlord may install
devices to separately meter any increased use and in such event Tenant shall pay the increased cost directly to Landlord, on demand, including the cost of such additional metering devices. If Tenant desires to use heat, ventilation or air
conditioning during hours other than those for which Landlord is obligated to supply such utilities pursuant to the terms of Section 6.1 of this Lease, Tenant shall give Landlord (24) hours’ prior notice of
Tenant’s desired use and Landlord shall supply such utilities to Tenant at such hourly cost to Tenant per Section 6.1.1 and, if such service is not a continuation of that furnished during regular business hours, Tenant shall pay the same
hourly rate for a period of two (2) hours preceding the commencement of such service. Amounts payable by Tenant to Landlord for such use of additional utilities shall be deemed Additional Rent hereunder and shall be billed on a monthly basis.

  
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 6.3    Interruption of Use. Tenant agrees
that Landlord shall not be liable for damages, by abatement of Rent or otherwise (except as otherwise expressly provided in Section 19.6 of this Lease), for failure to furnish or delay in furnishing any service (including telephone and
telecommunication services), or for any diminution in the quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or in part, by repairs, replacements, or improvements, by any strike, lockout or other labor
trouble, by inability to secure electricity, gas, water, or other fuel at the Building after using its commercially reasonable efforts to do so, by any accident or casualty whatsoever, by act or default of Tenant or other parties, or by any other
cause beyond Landlord’s reasonable control: and such failures or delays or diminution shall never be deemed to constitute an eviction or disturbance of Tenant’s use and possession of the Premises or relieve Tenant from paying Rent or
performing any of its obligations under this Lease. Furthermore, Landlord shall not be liable under any circumstances for a loss of, or injury to, property or for injury to, or interference with. Tenant’s business, including, without
limitation, loss of profits, however occurring, through or in connection with or incidental to a failure to furnish any of the services or utilities as set forth in this Article 6, provided that Landlord has used its commercially reasonable
efforts to have such services or utilities furnished. Landlord may comply with voluntary controls or guidelines promulgated by any governmental entity relating to the use or conservation of energy, water, gas, light or electricity or the reduction
of automobile or other emissions without creating any liability of Landlord to Tenant under this Lease, provided that the Premises are not thereby rendered untenantable. 

6.4    Electrical Meters; Tenant’s Obligation to Pay for All Electricity. If the Premises
are not separately metered for electricity. Landlord shall, at Landlord’s cost, pursuant to the terms of the Tenant Work Letter, install separate meters or submeters to measure the consumption of electricity which may be furnished to or used
in. on or about the Premises. Tenant agrees to pay Landlord within ten (10) days of Landlord’s delivery of an invoice therefor (or the local public utility provider, as applicable, prior to delinquency) for all electricity which may be
furnished to or used in, on or about the Premises, as shown by said meters at the rates charged by the local public utility furnishing the same. Amounts payable by Tenant to Landlord for use of utilities shall be deemed Additional Rent hereunder.

 6.5    Installation and Use of Machine Shop Equipment. Subject to the terms of this
Lease, Landlord hereby acknowledges that Tenant will be installing in the Premises, at Tenant’s sole cost, the Machine Shop Equipment (as defined in Section 13 of the Summary), and Landlord hereby approves such
installation and the use of such items by Tenant, provided that Tenant shall install the Machine Shop Equipment in accordance with the terms of Article 8 below and subject to the terms and conditions set forth herein. Landlord does not
represent or warrant that the utilities in the Premises have a sufficient capacity for Tenant’s use of the Machine Shop Equipment, and if any additional utility facilities (such as additional or larger electrical power panels or circuits, or
gas lines, or utility meters or submeters) shall be required, as reasonably determined by Landlord in connection with Tenant’s installation or use of the foregoing equipment, the additional facilities shall be installed by Tenant at its sole
cost and expense in accordance with the terms of Article 8 below. Tenant shall not interfere with Landlord’s construction of the Tenant Improvements in connection with Tenant’s installation of the Machine

  
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Shop Equipment. Tenant shall be required to comply with all Applicable Laws and the applicable manufacturers’ operational specifications/guidelines in connection with Tenant’s
installation and use of the Machine Shop Equipment, including without limitation any requirements that Tenant install improvements in the Premises or Building in order to comply with such Applicable Laws. Upon the expiration or earlier termination
of this Lease, Tenant shall remove the Machine Shop Equipment in accordance with the terms of Section 15.2 below. Tenant acknowledges and agrees that the “Tenant Improvements” (as defined in Section 1 of the
Tenant Work Letter) shall include soundproofing materials and measures, which shall be specified in the construction plans to be prepared pursuant to the Tenant Work Letter. Tenant agrees that if Tenant’s use of the Machine Shop Equipment
interferes with other tenants in the Building, then Landlord shall have the right to install additional reasonable soundproofing materials in or adjacent to the Premises, and Tenant shall reasonably cooperate with Landlord regarding access to the
Premises and Landlord installation of such soundproofing materials. Landlord shall pay for the purchase and installation of such additional soundproofing materials, provided that if the interference to other tenants is being caused by Tenant’s
use of the Machine Shop Equipment in violation of Applicable Laws or applicable manufacturers” operational specifications/guidelines, then Tenant shall pay for the same. 

ARTICLE 7 

REPAIRS 
 Landlord
shall at Landlord’s cost (and not included in Operating Expenses) repair and maintain the structural portions of the Building (collectively, the “Building Structure”), basic plumbing, sewer, heating, ventilating, air-conditioning, fire suppression/ sprinkler, Building security and electrical systems installed or furnished by Landlord and not located within the Premises (collectively, the “Building Systems”),
unless such maintenance and repairs are caused in part or in whole by the act, neglect, fault or omission of any duty by Tenant or the “Tenant Parties.” as defined in Section 10.1, below, in which event Tenant
shall pay to Landlord, as Additional Rent, the reasonable cost of such maintenance and repairs. Except as set forth in the preceding sentence. Tenant shall, at Tenant’s own expense, pursuant to the terms of this Lease, including, without
limitation, Article 8 hereof, keep the Premises, including all improvements, fixtures and furnishings therein, in good order, repair and condition at all times during the Lease Term. In addition. Tenant shall, at Tenant’s own expense but
under the supervision and subject to the prior approval of Landlord, and within any reasonable period of time specified by Landlord, pursuant to the terms of this Lease, including, without limitation, Article 8 hereof, promptly and adequately
repair all damage to the Premises and replace or repair all damaged or broken fixtures and appurtenances; provided, however, that, at Landlord’s option, or if Tenant fails to make such repairs, Landlord may, but need not, make such repairs and
replacements, and Tenant shall pay Landlord the cost thereof, including a percentage of the cost thereof (to be uniformly established for the Building, not to exceed 10% of the cost of repair) sufficient to reimburse Landlord for all overhead,
general conditions, fees and other costs or expenses arising from Landlord’s involvement with such repairs and replacements forthwith upon being billed for same. Landlord may, but shall not be required to, enter the Premises at all reasonable
times (provided that Landlord acts in accordance with Article 27) to make such repairs, alterations, improvements and additions to the Premises or to the Building or to any equipment located in the 

  
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Building as Landlord shall desire or deem necessary or as Landlord may be required to do by governmental or quasi-governmental authority or court order or decree. Tenant hereby waives and
releases its right to make repairs at Landlord’s expense under Sections 1941 and 1942 of the California Civil Code or under any similar law, statute, or ordinance now or hereafter in effect. The Building Structure and Building Systems shall be
collectively referred to as the “Base Building.” 
 ARTICLE 8 

ADDITIONS AND ALTERATIONS 

8.1    Landlord’s Consent to Alterations. Tenant may not make any improvements,
alterations, additions or changes to the Premises (collectively, the “Alterations”) without first procuring the prior written consent of Landlord to such Alterations, which consent shall be requested by Tenant not less than ten
(10) business days prior to the commencement thereof, and which consent shall not be unreasonably withheld, delayed or conditioned by Landlord. Notwithstanding the foregoing, Tenant shall have the right, without Landlord’s consent but upon
ten (10) business days’ prior notice to Landlord, to make strictly cosmetic, non-structural additions and alterations (“Cosmetic Alterations’”) to the Premises provided such
Cosmetic Alterations (i) do not involve the expenditure of more than $50,000.00, in the aggregate; (ii) are not visible from the exterior of the Building or which do not otherwise affect the exterior appearance of the Premises or Building,
(iii) do not affect the Building Systems or the Building Structure, or (iv) do not unreasonably interfere with any other occupant’s normal and customary office operation; and (v) comply with Applicable Laws or the CC&Rs. 

8.2    Manner of Construction. Landlord may impose, as a condition of its consent to all
Alterations or repairs of the Premises or about the Premises, such requirements as Landlord in its reasonable discretion may deem desirable, including, but not limited to, the requirement that upon Landlord’s request. Tenant shall, at
Tenant’s expense, remove such Alterations upon the expiration or any early termination of the Lease Term, and/or the requirement that Tenant utilize for such purposes only contractors, materials, mechanics and materialmen selected by Landlord.
Landlord shall tell Tenant at the time of approval whether such improvements need to be removed at the end of the Lease Term. Tenant shall construct such Alterations and perform such repairs in conformance with any and all applicable rules and
regulations of any federal, state, county or municipal code or ordinance and pursuant to a valid building permit, issued by the City of Carlsbad, in conformance with Landlord’s construction rules and regulations. All work with respect to any
Alterations must be done in a good and workmanlike manner and diligently prosecuted to completion to the end that the Premises shall at all times be a complete unit except during the period of work. In performing the work of any such Alterations,
Tenant shall have the work performed in such manner as not to obstruct access to the Building or the common areas for any other tenant of the Building, and as not to obstruct the business of Landlord or other tenants in the Building, or interfere
with the labor force working in the Building. In the event Tenant performs any Alterations in the Premises which require or give rise to governmentally required changes to the Base Building, and provided that Landlord notified Tenant of such
requirement in Landlord’s consent to such Alterations, then Landlord shall, at Tenant’s expense, make such changes to the Base Building. Upon completion of any Alterations and to the extent applicable, Tenant agrees to cause a timely
Notice of Completion to be recorded in the office of 

  
 20 

 
the Recorder of the County of Carlsbad in accordance with the terms of Section 3093 of the Civil Code of the State of California or any successor statute, and Tenant shall deliver to the
Building management office a reproducible copy of any “as built” drawings of the Alterations. 

8.3    Payment for Improvements. In the event Tenant orders any Alterations or repair work
directly from Landlord or from a contractor selected by Landlord, the charges for such work shall be deemed Additional Rent under this Lease, payable upon billing therefor, either periodically during construction or upon the substantial completion
of such work, at Landlord’s option. Upon completion of any work not ordered directly from Landlord, Tenant shall deliver to Landlord evidence of payment, contractors’ affidavits and full and final waivers of all liens for labor, services
or materials. In addition, in the event Tenant orders any Alterations or repair work directly from Landlord or from a contractor selected by Landlord, Tenant shall pay to Landlord an amount equal to five percent (5%) of the cost of any such work to
compensate Landlord for all overhead, general conditions, fees and other costs and expenses arising from Landlord’s involvement with such work. 

8.4    Construction Insurance. In the event that Tenant makes any Alterations, Tenant agrees
to carry “Builder’s All Risk” insurance in a reasonable amount approved by Landlord covering the construction of such Alterations, and such other insurance as Landlord may reasonably require, it being understood and agreed that all of
such Alterations shall be insured by Tenant pursuant to Article 10 of this Lease immediately upon completion thereof. In addition, with respect to any Alterations that will cost in excess of $150,000, Landlord may, in its reasonable
discretion, require Tenant to obtain a lien and completion bond or some alternate form of security satisfactory to Landlord in an amount sufficient to ensure the lien-free completion of such Alterations and naming Landlord as a co-obligee. 
 8.5    Landlord’s Property. All
Alterations, improvements, fixtures and/or equipment which may be installed or placed in or about the Premises, and all signs installed in, on or about the Premises, from time to time, shall be at the sole cost of Tenant and shall be and become the
property of Landlord, except that Tenant may remove any Alterations, improvements, fixtures and/or equipment which Tenant can substantiate to Landlord have not been paid for with any tenant improvement allowance funds (but not Moving Allowance
funds) provided to Tenant by Landlord, provided Tenant repairs any damage to the Premises and Building caused by such removal. Furthermore, if Landlord, as a condition to Landlord’s consent to any Alteration, requires that Tenant remove any
Alteration upon the expiration or early termination of the Lease Term, Landlord may, by written notice to Tenant prior to the end of the Lease Term, or given upon any earlier termination of this Lease, require Tenant at Tenant’s expense to
remove such Alterations and to repair any damage to the Premises and Building caused by such removal. Tenant shall not be required to remove any of the initial Tenant Improvements constructed by Landlord pursuant to the Tenant Work Letter. If Tenant
fails to complete such removal and/or to repair any damage caused by the removal of any Alterations, Landlord may do so and may charge the cost thereof (plus Landlord’s fee) to Tenant. 

  
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 ARTICLE 9 

COVENANT AGAINST LIENS 

Tenant has no authority or power to cause or permit any lien or encumbrance of any kind whatsoever, whether created by act of Tenant,
operation of law or otherwise, to attach to or be placed upon the Real Property, Building, or Premises, and any and all liens and encumbrances created by Tenant shall attach to Tenant’s interest only. Landlord shall have the right at all times
to post and keep posted on the Premises any notice which it deems necessary for protection from such liens. Tenant covenants and agrees not to suffer or permit any lien of mechanics or materialmen or others to be placed against the Real Property,
the Building or the Premises with respect to work or services claimed to have been performed for or materials claimed to have been furnished to Tenant or the Premises, and, in case of any such lien attaching or notice of any lien, Tenant covenants
and agrees to cause it to be immediately released and removed of record. Notwithstanding anything to the contrary set forth in this Lease, in the event that such lien is not released and removed (or contested by posting an appropriate bond) on or
before the date occurring five (5) business days after notice of such lien is delivered by Landlord to Tenant, Landlord, at its sole option, may immediately take all action necessary to release and remove such lien, without any duty to
investigate the validity thereof, and all sums, costs and expenses, including reasonable attorneys’ fees and costs, incurred by Landlord in connection with such lien shall be deemed Additional Rent under this Lease and shall immediately be due
and payable by Tenant. 
 ARTICLE 10 

INSURANCE 

10.1    Indemnification and Waiver.    To the extent not prohibited by
law, Landlord, its partners, trustees, ancillary trustees and their respective officers, directors, shareholders, beneficiaries, agents, servants, employees, and independent contractors (collectively, the ‘‘Landlord Parties”)
shall not be liable for any damage either to person or property or resulting from the loss of use thereof, which damage is sustained by Tenant or by other persons claiming through Tenant. Tenant shall indemnify, defend, protect, and hold harmless
Landlord Parties from any and all loss, cost, damage, expense and liability (including, without limitation, court costs and reasonable attorneys’ fees) incurred in connection with or arising from any cause in, on or about the Premises or any
acts, omissions or negligence of Tenant or Tenant’s employees, agents, contractors, licensees, directors, officer, partners, trustees, visitors or invitees (collectively, “Tenant Parties”), in, on or about the Real Property,
either prior to, during, or after the expiration of the Lease Term, provided that the terms of the foregoing indemnity shall not apply to the negligence or willful misconduct of Landlord or the Landlord Parties. Should Landlord be named as a
defendant in any suit brought against Tenant in connection with or arising out of an event covered by the foregoing indemnity, Tenant shall pay to Landlord its costs and expenses incurred in such suit, including, without limitation, its actual
professional fees such as appraisers’, accountants’ and attorneys’ fees. Landlord shall indemnify, defend, protect, and hold harmless Tenant Parties from any and all loss, cost, damage, expense and liability (including, without
limitation, court costs and reasonable attorneys’ fees) incurred in connection with or arising from the negligence or willful misconduct of Landlord or the Landlord Parties, 

  
 22 

 either prior to, during, or after the expiration of the Lease Term, provided that the terms of the foregoing
indemnity shall not apply to the negligence or willful misconduct of Tenant or the Tenant Parties. Should a party be named as a defendant in any suit brought against the other party in connection with or arising out of an event covered by the
foregoing indemnity, the other party shall pay to the named party its costs and expenses incurred in such suit, including, without limitation, its actual professional fees such as appraisers’, accountants’ and attorneys’ fees. Each
party’s agreement to indemnify the other party pursuant to this Section 10.1 shall not relieve any insurance carrier of its obligations under policies required to be carried pursuant to the provision of this Lease, to
the extent such policies cover the matters subject to the indemnification obligations. The provisions of this Section 10.1 shall survive the expiration or sooner termination of this Lease with respect to any claims or
liability occurring prior to such expiration or termination. 
 10.2    Tenant’s Compliance with
Landlord’s Fire and Casualty Insurance.    The coverage and amounts of insurance carried by Landlord in connection with the Building shall at a minimum be comparable to the coverage and amounts of insurance which are
carried by reasonably prudent landlords of Comparable Buildings. Upon inquiry by Tenant, from time to time, Landlord shall inform Tenant of such coverage carried by Landlord. Tenant shall, at Tenant’s expense, comply with all insurance company
requirements pertaining to the use of the Premises. If Tenant’s conduct or use of the Premises causes any increase in the premium for any insurance policies carried by Landlord, then Tenant shall reimburse Landlord for any such increase.
Tenant, at Tenant’s expense, shall comply with all rules, orders, regulations or requirements of the American Insurance Association (formerly the National Board of Fire Underwriters) and with any similar body. 

10.3    Tenant’s Insurance.    Tenant shall maintain the
following coverages in the following amounts: 
 10.3.1    Commercial General Liability Insurance
covering the insured against claims of bodily injury, personal injury and property damage arising out of Tenant’s operations, assumed liabilities or use of the Premises, including a Commercial General Liability endorsement covering the insuring
provisions of this Lease and the performance by Tenant of the indemnity agreements set forth in Section 10.1 of this Lease, for limits of liability not less than: (i) Bodily Injury and Property Damage Liability - $5,000,000 each
occurrence and $5,000,000 annual aggregate, and (ii) Personal Injury Liability - $5,000,000 each occurrence and $5,000,000 annual aggregate. 

10.3.2    Physical Damage Insurance covering (i) all office furniture,
trade fixtures, office equipment, merchandise and all other items of Tenant’s property on the Premises installed by, for, or at the expense of Tenant, (ii) Tenant Improvements, and (iii) all other improvements, alterations and
additions to the Premises. Such insurance shall be written on an “all risks” of physical loss or damage basis, for the full replacement cost value new without deduction for depreciation of the covered items and in amounts that meet any co-insurance clauses of the policies of insurance and shall include a vandalism and malicious mischief endorsement, sprinkler leakage coverage and earthquake sprinkler leakage coverage. 

  
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 10.3.3    Loss-of-income and extra-expense insurance in such amounts as will reimburse Tenant for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent tenants or
attributable to prevention of access to the Premises or to the Building as a result of such perils. 

10.3.4    Worker’s Compensation and Employer’s Liability or other similar insurance, on an
“occurrence’’ basis with a limit of not less than $2,000,000 per occurrence, pursuant to all applicable state and local statutes and regulations. 

10.3.5    Commercial Automobile Liability Insurance on an “occurrence’’ basis, with a
combined single limit of not less than $2,000,000 per occurrence covering bodily injury and property damage liability arising out of the use by or on behalf of Tenant, its agents and employees of any Tenant owned,
non-owned (i.e., leased or rented) or hired motor vehicle or automotive equipment. 

10.4    Form of Policies.    The minimum limits of policies
of insurance required of Tenant under this Lease shall in no event limit the liability of Tenant under this Lease. Such insurance shall (i) name Landlord and any lender designated by Landlord in writing to Tenant as an additional insured;
(ii) specifically cover the liability assumed by Tenant under this Lease, including, but not limited to, Tenant’s obligations under Section 10.1 of this Lease; (iii) be issued by an insurance company having a rating of not less
than A-XII in Best’s Insurance Guide or which is otherwise acceptable to Landlord and licensed to do business in the State of California; (iv) be primary insurance as to all claims thereunder and
provide that any insurance carried by Landlord is excess and is non-contributing with any insurance requirement of Tenant; (v) to the extent commercially reasonably available, provide that said insurance
shall not be canceled or coverage changed unless thirty (30) days’ prior written notice (ten (10) days in the event of nonpayment of premiums) shall have been given to Landlord; (vi) contain a cross-liability endorsement or
severability of interest clause acceptable to Landlord; and (vii) with respect to the insurance required under Section 10.3.1, above, such insurance shall include contractual coverage. Tenant shall deliver certificates of said policy or
policies to Landlord on or before the Lease Commencement Date and at least ten (10) days before the respective expiration dates of such policies or certificates. 

10.5    Subrogation.    Landlord and Tenant agree to have their respective
insurance companies issuing property damage insurance waive any rights of subrogation that such companies may have against Landlord or Tenant, as the case may be, so long as the insurance carried by Landlord and Tenant, respectively, is not
invalidated thereby. As long as such waivers of subrogation are contained in their respective insurance policies, Landlord and Tenant hereby waive any right that either may have against the other on account of any loss or damage to their respective
property to the extent such loss or damage is insurable under policies of insurance for fire and all risk coverage, theft, or other similar insurance. 

10.6    Additional Insurance Obligations.    Tenant shall carry and
maintain during the entire Lease Term at Tenant’s sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 10, and such other reasonable types of insurance coverage and in such
reasonable amounts covering the Premises and Tenant’s operations therein, as may be reasonably requested by Landlord, but in no event shall such 

  
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increased amounts of insurance or such other reasonable types of insurance be in excess of that required by landlords of Comparable Buildings. Notwithstanding anything to the contrary contained
in this Lease, in the event of any termination of this Lease pursuant to Article 11 or Article 13 below, Tenant shall assign and deliver to Landlord (or to any party designated by Landlord) all insurance proceeds payable to Tenant
under Tenant’s insurance required under subsections (ii) and (iii) of Section 10.3.2 of this Lease. 

ARTICLE 11 

DAMAGE AND DESTRUCTION 

11.1    Repair of Damage to Premises by Landlord.    Tenant shall promptly notify
Landlord of any damage to the Premises resulting from fire or any other casualty. If the Premises or any common areas of the Building serving or providing access to the Premises shall be damaged by fire or other casualty, Landlord shall promptly and
diligently, subject to reasonable delays for insurance adjustment or other matters beyond Landlord’s reasonable control, and subject to all other terms of this Article 11, restore the base, shell, and core of the Premises and such common
areas. Such restoration shall be to substantially the same condition of the base, shell, and core of the Premises and common areas prior to the casualty, except for modifications required by zoning and building codes and other laws or by the holder
of a mortgage on the Building or any other modifications to the common areas deemed reasonably desirable by Landlord, provided access to the Premises and any common restrooms serving the Premises shall not be materially impaired. Notwithstanding any
other provision of this Lease, upon the occurrence of any damage to the Premises, Tenant shall assign to Landlord (or to any party designated by Landlord) all insurance proceeds payable to Tenant under Tenant’s insurance required under
Section 10.3.2 of this Lease, and Landlord shall repair any injury or damage to the Tenant Improvements installed in the Premises and shall return such Tenant Improvements to their condition prior to the casualty; provided that if the cost of
such repair by Landlord exceeds the amount of insurance proceeds received by Landlord from Tenant’s insurance carrier, as assigned by Tenant, the cost of such repairs shall be paid by Tenant to Landlord prior to Landlord’s repair of the
damage. In connection with such repairs and replacements, Tenant shall, prior to the commencement of construction, submit to Landlord, for Landlord’s review and approval, all plans, specifications and working drawings relating thereto, and
Landlord shall select the contractors to perform such improvement work. Such submittal of plans and construction of improvements shall be performed by Tenant in substantial compliance with the terms of Article 8 of this Lease. Landlord shall
not be liable for any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant’s business resulting in any way from such damage or the repair thereof; provided however, that if such fire or other casualty shall have damaged the
Premises or common areas necessary to Tenant’s occupancy, and if such damage is not the result of the negligence or willful misconduct of Tenant or Tenant’s employees, contractors, licensees, or invitees, Landlord shall allow Tenant a
proportionate abatement of Rent, during the time and to the extent the Premises are unfit for occupancy for the purposes permitted under this Lease, and not occupied by Tenant as a result thereof; provided, further, if the Premises are damaged such
that the remaining portion thereof is not sufficient to allow Tenant to conduct its business operations therefrom, and if such damage is not the result of the negligence or willful misconduct of Tenant or any of the Tenant Parties, Landlord shall
allow Tenant a total abatement of Rent during the time and to the extent the Premises are unfit for occupancy for the purposes permitted under this Lease, and are not occupied by Tenant as a result of the subject damage. 

  
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 11.2    Landlord’s Option to
Repair.    Notwithstanding the terms of Section 11.1 of this Lease, Landlord may elect not to rebuild and/or restore the Premises and/or Building and instead terminate this Lease by notifying Tenant in writing
of such termination within ninety (90) days after the date of damage, such notice to include a termination date giving Tenant ninety (90) days to vacate the Premises, but Landlord may so elect only if the Building shall be damaged by fire
or other casualty or cause, whether or not the Premises are affected, and one or more of the following conditions is present: (i) repairs cannot reasonably be completed within one hundred eighty (180) days of the date of damage (when such
repairs are made without the payment of overtime or other premiums); (ii) the holder of any mortgage on the Building or ground lessor with respect to the Real Property shall require that the insurance proceeds or any portion thereof be used to
retire the mortgage debt, or shall terminate the ground lease, as the case may be; or (iii) the damage is not fully covered, except for deductible amounts, by Landlord’s insurance policies; provided, however, that if Landlord does not
elect to terminate this Lease pursuant to Landlord’s termination right as provided above, and the repairs cannot, in the reasonable opinion of Landlord, be completed within one year after being commenced, Tenant may elect, no earlier than sixty
(60) days after the date of the damage and not later than ninety (90) days after the date of such damage, to terminate this Lease by written notice to Landlord effective as of the date specified in the notice, which date shall not be less
than thirty (30) days nor more than sixty (60) days after the date such notice is given by Tenant. At any time, from time to time, after the date occurring sixty (60) days after the date of the damage, Tenant may request that Landlord
inform Tenant of Landlord’s reasonable opinion of the date of completion of the repairs and Landlord shall respond to such request within five (5) business days. 

11.3    Waiver of Statutory Provisions.    The provisions of this Lease, including this
Article 11, constitute an express agreement between Landlord and Tenant with respect to any and all damage to, or destruction of, all or any part of the Premises, the Building or any other portion of the Real Property, and any statute or
regulation of the State of California, including, without limitation, Sections 1932(2) and 1933(4) of the California Civil Code, with respect to any rights or obligations concerning damage or destruction in the absence of an express agreement
between the parties, and any other statute or regulation, now or hereafter in effect, shall have no application to this Lease or any damage or destruction to all or any part of the Premises, the Building or any other portion of the Real Property.

 11.4    Damage, Near End of Term.    In the event that the Premises or the Building
is destroyed or damaged to any substantial extent during the last twelve (12) months of the Lease and, in the reasonable opinion of Landlord, the damage or destruction to the Premises or Building cannot be repaired by the date which is six
(6) months prior to the Lease Expiration Date, then notwithstanding anything contained in this Article 11, either Landlord or Tenant shall have the option to terminate this Lease by giving written notice to the other party of the
exercise of such option within thirty (30) days after such damage or destruction, in which event this Lease shall cease and terminate as of the date of such notice, Tenant shall pay the Base Rent and Additional Rent, properly apportioned up to
such date of damage, and both parties hereto shall thereafter be freed and discharged of all further obligations hereunder, except as for in provisions of this Lease which by their terms survive the expiration or earlier termination of the Lease
Term. 

  
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 ARTICLE 12 

NON-WAIVER 

No waiver of any provision of this Lease shall be implied by any failure of Landlord to enforce any remedy on account of the violation of such
provision, even if such violation shall continue or be repeated subsequently, any waiver by Landlord of any provision of this Lease may only be in writing, and no express waiver shall affect any provision other than the one specified in such waiver
and that one only for the time and in the manner specifically stated. No receipt of monies by Landlord from Tenant after the termination of this Lease shall in any way alter the length of the Lease Term or of Tenant’s right of possession
hereunder or after the giving of any notice shall reinstate, continue or extend the Lease Term or affect any notice given Tenant prior to the receipt of such monies, it being agreed that after the service of notice or the commencement of a suit or
after final judgment for possession of the Premises, Landlord may receive and collect any Rent due, and the payment of said Rent shall not waive or affect said notice, suit or judgment. No payment by Tenant or receipt or acceptance by Landlord of a
lesser amount than the correct Rent due shall be deemed to be other than a payment on account, nor shall any endorsement or statement on any check or any letter accompanying any check or payment be deemed an accord and satisfaction, and Landlord may
accept such check or payment without prejudice to Landlord’s right to recover the balance, treat such partial payment as a default or pursue any other remedy provided in this Lease or at law. 

ARTICLE 13 

CONDEMNATION 
 If
ten percent (10%) or more of the Premises or Building shall be taken by power of eminent domain or condemned by any competent authority for any public or quasi-public use or purpose, or if Landlord shall grant a deed or other instrument in lieu of
such taking by eminent domain or condemnation, Landlord shall have the option to terminate this Lease upon ninety (90) days’ notice, provided such notice is given no later than one hundred eighty (180) days after the date of such
taking, condemnation, reconfiguration, vacation, deed or other instrument. If more than twenty-five percent (25%) of the rentable square feet of the Premises is taken, or if access to the Premises is substantially impaired, Tenant shall have the
option to terminate this Lease upon ninety (90) days’ notice, provided such notice is given no later than one hundred eighty (180) days after the date of such taking. Landlord shall be entitled to receive the entire award or payment
in connection therewith, except that Tenant shall have the right to file any separate claim available to Tenant for any taking of Tenant’s personal property and fixtures belonging to Tenant and removable by Tenant upon expiration of the Lease
Term pursuant to the terms of this Lease, and for moving expenses, so long as such claim does not diminish the award available to Landlord, its ground lessor with respect to the Real Property or its mortgagee, and such claim is payable separately to
Tenant. All Rent shall be apportioned as of the date of such termination, or the date of such taking, whichever shall first occur. If any part of the Premises shall be taken, and this Lease shall not be so terminated, the Rent shall be
proportionately abated. Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of the California Code of Civil Procedure. 

  
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 ARTICLE 14 

ASSIGNMENT AND SUBLETTING 

14.1    Transfers.    Tenant shall not, without the
prior written consent of Landlord, assign, mortgage, pledge, hypothecate, encumber, or permit any lien to attach to, or otherwise transfer, this Lease or any interest hereunder, permit any assignment or other such foregoing transfer of this Lease or
any interest hereunder by operation of law, sublet the Premises or any part thereof, or permit the use of the Premises by any persons other than Tenant and its employees (all of the foregoing are hereinafter sometimes referred to collectively as
“Transfers” and any person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a “Transferee”). If Tenant shall desire Landlord’s consent to any
Transfer, Tenant shall notify Landlord in writing, which notice (the “Transfer Notice”) shall include (i) the proposed effective date of the Transfer, which shall not be less than thirty (30) days nor more
than one hundred eighty (180) days after the date of delivery of the Transfer Notice, (ii) a description of the portion of the Premises to be transferred (the “Subject Space”), (iii) all of the terms of the
proposed Transfer and the consideration therefor, including a calculation of the “Transfer Premium,” as that term is defined in Section 14.3, below, in connection with such Transfer, the name
and address of the proposed Transferee, and a copy of all existing and/or proposed documentation pertaining to the proposed Transfer, including all existing operative documents to be executed to evidence such Transfer or the agreements incidental or
related to such Transfer, (iv) current financial statements of the proposed Transferee certified by an officer, partner or owner thereof, and any other information reasonably required by Landlord, which will enable Landlord to determine the
financial responsibility, character, and reputation of the proposed Transferee, nature of such Transferee’s business and proposed use of the Subject Space, (v) an executed estoppel certificate from Tenant in the form attached hereto as
Exhibit E, and (vi) such other information as Landlord may reasonably require. Any Transfer made without Landlord’s prior written consent shall, at Landlord’s option, be null, void and of no effect, and shall, at
Landlord’s option, constitute a default by Tenant under Section 19.1.2 of this Lease. Whether or not Landlord shall grant consent, Tenant shall, concurrently with Tenant’s delivery of the Transfer Notice, pay to Landlord
$750.00 for Landlord’s review and processing fees. 
 14.2    Landlord’s
Consent.    Landlord shall not unreasonably withhold or delay its consent to any proposed Transfer of the Subject Space to the Transferee on the terms specified in the Transfer Notice. The parties hereby agree that
it shall be deemed to be reasonable under this Lease and under any applicable law for Landlord to withhold consent to any proposed Transfer where one or more of the following apply, without limitation as to other reasonable grounds for withholding
consent: 
 14.2.1    The Transferee is of a character or reputation or engaged in a business which is not
consistent with the quality of the Building; 
 14.2.2    The Transferee is either a governmental agency or
instrumentality thereof; 
  

  
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 14.2.3    The Transferee’s intended use of the Premises is
inconsistent with the Permitted Use; 
 14.2.4    The Transferee is not a party of reasonable
financial worth and/or financial stability in light of the responsibilities involved under the Lease on the date consent is requested; 

14.2.5    The terms of the proposed Transfer will allow the Transferee to exercise a right of
renewal, right of expansion, right of first offer, or other similar right held by Tenant (or will allow the Transferee to occupy space leased by Tenant pursuant to any such right); or 

14.2.6    Either the proposed Transferee, or any person or entity which directly or indirectly,
controls, is controlled by, or is under common control with, the proposed Transferee, (i) occupies space in the Building at the time of the request for consent and Landlord shall have space available in the Building to accommodate the need of
the proposed Transferee which is comparable to the Premises, or (ii) is negotiating with Landlord to lease space in the Building at such time, or (iii) has negotiated with Landlord during the three (3)-month period immediately preceding
the Transfer Notice. 
 If Landlord consents to any Transfer pursuant to the terms of this Section 14.2 (and does
not exercise any recapture rights Landlord may have under Section 14.4 of this Lease), Tenant may within six (6) months after Landlord’s consent, but not later than the expiration of said six-month period, enter
into such Transfer of the Premises or portion thereof, upon substantially the same terms and conditions as are set forth in the Transfer Notice furnished by Tenant to Landlord pursuant to Section 14.1 of this Lease,
provided that if there are any changes in the terms and conditions from those specified in the Transfer Notice (i) such that Landlord would initially have been entitled to refuse its consent to such Transfer under this
Section 14.2, or (ii) which would cause the proposed Transfer to be more favorable to the Transferee than the terms set forth in Tenant’s original Transfer Notice, Tenant shall again submit the Transfer to
Landlord for its approval and other action under this Article 14 (including Landlord’s right of recapture, if any, under Section 14.4 of this Lease). 

14.3    Transfer Premium.    If Landlord consents to a Transfer, as
a condition thereto which the parties hereby agree is reasonable, Tenant shall pay to Landlord (if and when actually received by Tenant) fifty percent (50%) of any ‘‘Transfer Premium,” as that term is defined in this
Section 14.3, received by Tenant from such Transferee. “Transfer Premium” shall mean all rent, additional rent or other consideration payable by such Transferee in excess of the Rent and
Additional Rent payable by Tenant under this Lease, on a per rentable square foot basis if less than all of the Premises is transferred, after deducting the reasonable expenses incurred by Tenant for (i) any changes, alterations and
improvements to the Premises in connection with the Transfer, (ii) any brokerage commissions or reasonable attorneys’ fees incurred in connection with the Transfer, or (iii) any free base rent reasonably provided to the Transferee in
connection with the Transfer (provided that such free rent shall be deducted only to the extent the same is included in the calculation of total consideration payable by such Transferee). ‘‘Transfer Premium” shall also include, but
not be limited to, key money and bonus money paid by Transferee to Tenant in connection with such Transfer, and any payment in excess of fair market 

  
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value for services rendered by Tenant to Transferee or for assets, fixtures, inventory, equipment, or furniture transferred by Tenant to Transferee in connection with such Transfer. In the
calculations of the Rent (as it relates to the Transfer Premium calculated under this Section 14.3), Tenant shall be entitled to fully recover all transfer costs actually incurred by Tenant prior to the payment of any
Transfer Premium to Landlord. 
 14.4    Landlord’s Option as to
Premises.    Notwithstanding anything to the contrary contained in this Article 14, in the event Tenant desires to assign this Lease or sublease all of the Premises for the remainder of the Lease Term (other
than a Permitted Transfer), Tenant shall give Landlord notice (the “Intention to Transfer Notice”) of such contemplated Transfer (whether or not the contemplated Transferee or the terms of such contemplated Transfer
have been determined). The Intention to Transfer Notice shall confirm the Transfer relates to the entire Premises, the contemplated date of commencement of the contemplated Transfer, any other pertinent details relating to the Transfer known to
Tenant, and shall specify that such Intention to Transfer Notice is delivered to Landlord pursuant to this Section 14.4 in order to allow Landlord to elect to recapture the Premises. Subject to Tenant’s right to
withdraw as set forth below, Landlord shall have the option, by giving written notice to Tenant within thirty (30) days after receipt of any Intention to Transfer Notice (the “Landlord Intent Notice”), to
(i) recapture the Premises, or (ii) take an assignment or sublease of the Premises from Tenant. Tenant may, at its election, withdraw its Intention to Transfer Notice by so notifying Landlord within ten (10) days after Tenant’s
receipt of the Landlord Intent Notice that Tenant elects to not proceed with the proposed assignment or sublease of the entire Premises for the remainder of the Lease Term. If Tenant does not so withdraw before the expiration of such 10-day period, then Landlord’s recapture, or sublease or assignment notice shall cancel and terminate this Lease, or create a sublease or assignment, as the case may be, with respect to the Premises as of the
date stated in the Intention to Transfer Notice as the effective date of the proposed Transfer until the last day of the term of the Transfer as set forth in the Intention to Transfer Notice. If Landlord declines, or fails to send a Landlord Intent
Notice within such 30-day period under this Section 14.4, then, subject to the other terms of this Article 14, for a period of nine (9) months (the “Nine Month
Period”), Landlord shall not have any right to recapture with respect to any Transfer made during the Nine Month Period, provided that any such Transfer is substantially on the terms set forth in the Intention to Transfer
Notice; provided however, that any such Transfer shall be subject to the remaining terms of this Article 14. If such a Transfer is not so consummated within the Nine Month Period, then Tenant shall again be required to submit to Landlord
a new Intention to Transfer Notice with respect to any contemplated Transfer, as provided in this Section 14.4. 

14.5    Effect of Transfer.    If Landlord consents
to a Transfer, (i) the terms and conditions of this Lease shall in no way be deemed to have been waived or modified (except as agreed upon by both Landlord and Tenant in writing), (ii) such consent shall not be deemed consent to any further
Transfer by either Tenant or Transferee, (iii) Tenant shall deliver to Landlord, promptly after execution, an original executed copy of all documentation pertaining to the Transfer in form reasonably acceptable to Landlord, (iv) Tenant
shall furnish, at Landlord’s request a complete statement, certified by an independent certified public accountant, or Tenant’s chief financial officer, setting forth in detail the computation of any Transfer Premium Tenant has received,
derived and shall derive from such Transfer, and (v) no Transfer relating to this 

  
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 Lease or agreement entered into with respect thereto, whether with or without Landlord’s consent, shall
relieve Tenant or any guarantor of the Lease from liability under this Lease. Landlord or its authorized representatives shall have the right at all reasonable times to audit the books, records and papers of Tenant relating to any Transfer, and
shall have the right to make copies thereof. If the Transfer Premium respecting any Transfer shall be found understated, Tenant shall, within thirty (30) days after demand, pay the deficiency and Landlord’s costs of such audit. 

14.6    Additional Transfers.    For purposes of this Lease, the term
“Transfer” shall also include (i) if Tenant is a partnership, the withdrawal or change, voluntary, involuntary or by operation of law, of fifty percent (50%) or more of the partners, or transfer of twenty-five percent or more
of partnership interests, within a twelve (12)-month period, or the dissolution of the partnership without immediate reconstitution thereof, and (ii) if Tenant is a closely held corporation (i.e., whose stock is not publicly held and not
traded through an exchange or over the counter), (A) the dissolution, merger, consolidation or other reorganization of Tenant, the sale or other transfer of more than an aggregate of fifty percent (50%) of the voting shares of Tenant (other than to
immediate family members by reason of gift or death), within a twelve (12)-month period, or (C) the sale, mortgage, hypothecation or pledge of more than an aggregate of fifty percent (50%) of the value of the total unencumbered assets of Tenant
within a twelve (12) month period. 

14.7    Non-Transfers.    Notwithstanding
anything to the contrary contained in this Lease, neither (i) an assignment to a transferee of all or substantially all of the assets of Tenant, (ii) an assignment of the Premises to a transferee which is the resulting entity of a merger
or consolidation of Tenant with another entity, (iii) a legal change in the name of Tenant, nor (iv) an assignment or subletting of all or a portion of the Premises to an entity which is controlled by, controls, or is under common control
with, Tenant) (an “Affiliate”), shall be deemed a Transfer under Article 14 of this Lease (an assignment or sublease pursuant to the foregoing in items (i) through (iv) above shall be referred to as a “Permitted
Transfer”), provided that: (a) Tenant notifies Landlord not later than five (5) business days after any such assignment or sublease and within five (5) business days of Landlord’s request therefor Tenant furnishes
Landlord with information reasonably requested by Landlord that does violate any confidentiality obligation to which Tenant is subject; (b) such assignment or sublease is a bona fide transaction and is not intended by Tenant to avoid its
obligations under this Lease; and (c) such transferee or Affiliate shall have a net worth (not including goodwill as an asset) computed in accordance with generally accepted accounting principles (the “Net Worth”) at least
equal to the Net Worth of Tenant immediately prior to such assignment or sublease. An assignee which is Permitted Transfer shall be referred to as a “Non-Transferee Assignee.”
“Control,” as used in this Section 14.7, shall mean the ownership, directly or indirectly, of at least fifty-one percent (51%) of the voting securities of, or
possession of the right to vote, in the ordinary direction of its affairs, of at least fifty-one percent (51%) of the voting interest in, any person or entity. In addition, the sale of stock in a public
offering shall not be deemed to be a Transfer hereunder. 

  
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 ARTICLE 15 

SURRENDER OF PREMISES; REMOVAL OF TRADE FIXTURES 

15.1    Surrender of Premises.    No act or thing done by Landlord or any
agent or employee of Landlord during the Lease Term shall be deemed to constitute an acceptance by Landlord of a surrender of the Premises unless such intent is specifically acknowledged in a writing signed by Landlord. The delivery of keys to the
Premises to Landlord or any agent or employee of Landlord shall not constitute a surrender of the Premises or effect a termination of this Lease, whether or not the keys are thereafter retained by Landlord, and notwithstanding such delivery Tenant
shall be entitled to the return of such keys at any reasonable time upon request until this Lease shall have been terminated. The voluntary or other surrender of this Lease by Tenant, whether accepted by Landlord or not, or a mutual termination
hereof, shall not work a merger, and at the option of Landlord shall operate as an assignment to Landlord of all subleases or subtenancies affecting the Premises. 

15.2    Removal of Tenant Property by Tenant.    All articles of
personal property and all business and trade fixtures, machinery and equipment (including the Machine Shop Equipment), furniture and movable partitions owned by Tenant or installed by Tenant at its expense in the Premises, which items are not a part
of the Tenant Improvements installed in the Premises by Landlord, shall remain the property of Tenant, and may be removed by Tenant at any time during the Lease Term as long as Tenant is not in default under this Lease with any applicable cure
period having expired. Upon the expiration of the Lease Term, or upon any earlier termination of this Lease, Tenant shall, subject to the provisions of this Article 15, quit and Surrender possession of the Premises to Landlord in as good
order and condition as when Tenant took possession and as thereafter improved by Landlord and/or Tenant, reasonable wear and tear, events of casualty and repairs which are specifically made the responsibility of Landlord hereunder excepted. Upon
such expiration or termination, Tenant shall, without expense to Landlord, remove or cause to be removed from the Premises all debris and rubbish, and such items of furniture, equipment, free-standing cabinet work, and other articles of personal
property but specifically excluding data cabling and wiring, which shall be at Tenant’s election whether or not to remove) owned by Tenant or installed or placed by Tenant at its expense in the Premises, and such similar articles of any other
persons claiming under Tenant, as Landlord in its sole discretion may require to be removed, and Tenant shall repair at its own expense all damage to the Premises and Building resulting from such removal. 

ARTICLE 16 

HOLDING OVER 
 If
Tenant holds over after the expiration of the Lease Term hereof, with or without the express or implied consent of Landlord, such tenancy shall be from month-to-month
only, and shall not constitute a renewal hereof or an extension for any further term, and in such case Rent shall be payable at a monthly rate equal to the Rent applicable during the last rental period of the Lease Term under this Lease for the
first three (3) months of such holdover and thereafter 125% of the Rent applicable during the last rental period of the Lease Term under this Lease. Such
month-to-month tenancy shall be subject to every other term, covenant and agreement contained 

  
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 herein. Nothing contained in this Article 16 shall be construed as consent by Landlord to any holding
over by Tenant, and Landlord expressly reserves the right to require Tenant to surrender possession of the Premises to Landlord as provided in this Lease upon the expiration or other termination of this Lease. The provisions of this Article
16 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. Tenant acknowledges that if Tenant holds over without Landlord’s consent, such holding over may compromise or
otherwise affect Landlord’s ability to enter into new leases with prospective tenants regarding the Premises. Therefore, if Tenant fails to surrender the Premises prior to one month after the termination or expiration of this Lease, in addition
to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from all loss, costs (including reasonable attorneys’ fees) and liability resulting from such failure, including,
without limiting the generality of the foregoing, any claims made by any succeeding tenant founded upon such failure to surrender, and any losses suffered by Landlord, including lost profits, resulting from such failure to surrender. 

ARTICLE 17 

ESTOPPEL CERTIFICATES 

Within ten (10) days following a request in writing by Landlord, Tenant shall execute and deliver to Landlord an estoppel certificate, which,
as submitted by Landlord, shall be substantially in the form of Exhibit E, attached hereto, (or such other form as may be required by any prospective mortgagee or purchaser of the Building, or any portion thereof),
indicating therein any exceptions thereto that may exist at that time, and shall also contain any other information reasonably requested by Landlord or Landlord’s mortgagee or prospective mortgagee or purchasers. Tenant shall execute and
deliver whatever other instruments may be reasonably required for such purposes. At any time during the Lease Term, but not more than once in each calendar year, Landlord may require Tenant to provide Landlord with a current financial statement and
financial statements of the two (2) years prior to the current financial statement year (provided that Landlord shall keep such financial information strictly confidential). Such statements shall be prepared in accordance with generally
accepted accounting principles and, if such is the normal practice of Tenant, shall be audited by an independent certified public accountant. Failure of Tenant to timely execute and deliver such estoppel certificate or other instruments shall
constitute an acceptance of the Premises and an acknowledgment by Tenant that statements included in the estoppel certificate are true and correct, without exception. Within ten (10) business days after Tenant’s request, Landlord shall
execute and deliver to Tenant a commercially reasonable estoppel certificate in favor of such parties as Tenant may reasonably designate, including current and prospective lenders and prospective purchasers. 

ARTICLE 18 

SUBORDINATION 

This Lease is subject and subordinate to all present and future ground or underlying leases of the Real Property and to the lien and terms of
any mortgages or trust deeds, now or hereafter in force against the Real Property and the Building, if any, and to all renewals, 

  
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 extensions, modifications, consolidations and replacements thereof, and to all advances made or hereafter to
be made upon the security of such mortgages or trust deeds, unless the holders of such mortgages or trust deeds, or the lessors under such ground lease or underlying leases, require in writing that this Lease be superior thereto. In consideration
of, and as a condition precedent to, Tenant’s agreement to permit its interest pursuant to this Lease to be subordinated to any particular future ground or underlying lease of the Building or the Real Property or to the lien of any first
mortgage or trust deed, hereafter enforced against the Building on the Real Property and to any renewals, extensions, modifications, consolidations and replacements thereof, Landlord shall deliver to Tenant a commercially reasonable non-disturbance and attornment agreement executed by the Landlord under such ground lease or underlying lease or the holder of such mortgage or trust deed. Tenant covenants and agrees in the event any proceedings
are brought for the foreclosure of any such mortgage, to attorn, without any deductions or set-offs whatsoever, to the purchaser upon any such foreclosure sale if so requested to do so by such purchaser, and
to recognize such purchaser as the lessor under this Lease. Tenant shall, within ten (10) days of request by Landlord, execute such further instruments or assurances as Landlord may reasonably deem necessary to evidence or confirm the
subordination or superiority of this Lease to any such mortgages, trust deeds, ground leases or underlying leases. Landlord represents and warrants to Tenant that as of the date of this Lease there are no mortgages, trust deeds or ground leases in
force against the Real Property or the Building. 
 ARTICLE 19 

DEFAULTS; REMEDIES 

19.1    Default.    The occurrence of any of the following shall constitute a default of
this Lease by Tenant: 
 19.1.1    Any failure by Tenant to pay any Rent or any other charge required to be paid
under this Lease, or any part thereof, within five (5) business days of notice that the same is due, which notice shall be in lieu of any notice required under California Code of Civil Procedure Section 1161 or any similar or successor
law; or 
 19.1.2    Any failure by Tenant to observe or perform any other provision, covenant or condition of
this Lease to be observed or performed by Tenant where such failure continues thirty (30) days after written notice thereof from Landlord to Tenant; provided however, that any such notice shall be in lieu of, and not in addition to, any notice
required under California Code of Civil Procedure Section 1161 or any similar or successor law; and provided further that if the nature of such default is such that the same cannot reasonably be cured within a thirty (30)-day period, Tenant shall
not be deemed to be in default if it diligently commences such cure within such period and thereafter diligently proceeds to rectify and cure said default, as soon as possible; or 

19.1.3    To the extent permitted by law, a general assignment by Tenant or any guarantor of this
Lease for the benefit of creditors, or the filing by or against Tenant or any guarantor of any proceeding under an insolvency or bankruptcy law, unless in the case of a proceeding filed against Tenant or any guarantor the same is dismissed within
sixty (60) days, or 

  
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 the appointment of a trustee or receiver to take possession of all or substantially all of the assets of
Tenant or any guarantor, unless possession is restored to Tenant or such guarantor within thirty (30) days, or any execution or other judicially authorized seizure of all or substantially all of Tenant’s assets located upon the Premises or
of Tenant’s interest in this Lease, unless such seizure is discharged within thirty (30) days. 

19.2    Remedies Upon Default.    Upon the occurrence of a default
by Tenant, Landlord shall have, in addition to any other remedies available to Landlord at law or in equity, the option to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive, without any
notice or demand whatsoever. 
 19.2.1    Terminate this Lease, in which event Tenant shall immediately surrender
the Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any
other person who may be occupying the Premises or any part thereof, without being liable for prosecution or any claim or damages therefor; and Landlord may recover from Tenant the following: 

(i)     The worth at the time of award of any unpaid rent which has been earned at the time of such termination; plus 

(ii)    The worth at the time of award of the amount by which the unpaid rent which would have been earned after
termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 

(iii)    The worth at the time of award of the amount by which the unpaid rent for the balance of the Lease Term after the
time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus 

(iv)    Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s
failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, specifically including, but not limited to, brokerage commissions and advertising expenses incurred, expenses of
remodeling the Premises or any portion thereof for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant; and 

(v)    At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from
time to time by applicable law. 
 The term “rent” as used in this Section 19.2 shall be deemed to be and
to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used in Sections 19.2.1(i) and (ii), above, the “worth at the time of award” shall be
computed by allowing interest at the rate set forth in Article 25 of this Lease, but in no case greater than the maximum amount of such interest permitted by law. As used in Section 19.2.1(iii) above, the “worth at the time of
award” shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (l%). 

  
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 19.2.2    Landlord shall have
the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in effect after lessee’s breach and abandonment and recover Rent as it becomes due, if lessee has the right to sublet or assign, subject only to
reasonable limitations). Accordingly, if Landlord does not elect to terminate this Lease on account of any default by Tenant, Landlord may, from time to time, without terminating this Lease, enforce all of its rights and remedies under this Lease,
including the right to recover all rent as it becomes due. 
 19.3    Subleases of
Tenant.    If Landlord elects to terminate this Lease on account of any Default by Tenant, as set forth in this Article 19, Landlord shall have the right to terminate any and all subleases,
licenses, concessions or other consensual arrangements for possession entered into by Tenant and affecting the Premises or may, in Landlord’s sole discretion, succeed to Tenant’s interest in such subleases, licenses, concessions or
arrangements. In the event of Landlord’s election to succeed to Tenant’s interest in any such subleases, licenses, concessions or arrangements, Tenant shall, as of the date of notice by Landlord of such election, have no further right to
or interest in the rent or other consideration receivable thereunder. 
 19.4    Form of Payment
After Default.    Following the occurrence of a default by Tenant, Landlord shall have the right to require that any or all subsequent amounts paid by Tenant to Landlord hereunder, whether in the cure of the
default in question or otherwise, be paid in the form of cash, money order, cashier’s or certified check drawn on an institution reasonably acceptable to Landlord, or by other means approved by Landlord, notwithstanding any prior practice of
accepting payments in any different form. 
 19.5    Efforts to
Relet.    For the purposes of this Article 19, Tenant’s right to possession shall not be deemed to have been terminated by efforts of Landlord to relet the Premises, by its acts of maintenance or
preservation with respect to the Premises, or by appointment of a receiver to protect Landlord’s interests hereunder. The foregoing enumeration is not exhaustive, but merely illustrative of acts which may be performed by Landlord without
terminating Tenant’s right to possession. 
 19.6    Abatement of
Rent.    In the event that Tenant is prevented from using, and does not use, the Premises or any portion thereof, as a result of: (i) any repair, maintenance or alteration performed by Landlord, or which Landlord
failed to perform after the Lease Commencement Date and was required by this Lease to perform (and for which is in the reasonable control of Landlord) and which substantially interferes with Tenant’s use of the Premises, or (ii) any
failure to provide services, utilities or access to the Premises as required to be provided by Landlord by this Lease and such failure is within the reasonable control of Landlord (either such set of circumstances as set forth in items (i) or
(ii), above, to be known as an ‘‘Abatement Event”), then Tenant shall give Landlord notice of such Abatement Event (“Abatement Event Notice”), and if such Abatement Event continues for five (5) consecutive
business days after Landlord’s receipt of any such Abatement Event Notice (the “Eligibility Period”) and Landlord does not diligently commence and pursue to completion the remedy of such Abatement Event, then the Base Rent,
Tenant’s Share of Direct Expenses, and Tenant’s obligation to pay for parking (to the extent not utilized by Tenant) shall be abated or reduced, as the case may be, after the expiration of the Eligibility Period for such time that Tenant
continues to be so prevented from using, and does not use for the normal conduct of Tenant’s business, the 

  
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 Premises or a portion thereof, in the proportion that the rentable area of the portion of the Premises that
Tenant is prevented from using, and does not use, bears to the total rentable area of the Premises; provided, however, in the event that Tenant is prevented from using, and does not use, a portion of the Premises for a period of time in excess of
the Eligibility Period and the remaining portion of the Premises is not sufficient to allow Tenant to effectively conduct its business therein, and if Tenant does not conduct its business from such remaining portion, then for such time after
expiration of the Eligibility Period during which Tenant is so prevented from effectively conducting its business therein, the Base Rent and Tenant’s Share of Direct Expenses for the entire Premises and Tenant’s obligation to pay for
parking shall be abated for such time as Tenant continues to be so prevented from using, and does not use, the Premises. If, however, Tenant reoccupies any portion of the Premises during such period, the Rent allocable to such reoccupied portion,
based on the proportion that the rentable area of such reoccupied portion of the Premises bears to the total rentable area of the Premises, shall be payable by Tenant from the date Tenant reoccupies such portion of the Premises. If Landlord has not
cured such Abatement Event within one hundred eighty (180) days after receipt of the Abatement Event Notice from Tenant, Tenant shall have the right to terminate this Lease by delivery of written notice to Landlord (the
“Abatement Event Termination Notice”) no later than ten (10) days following the end of such 180-day period. To the extent an Abatement Event is caused by an event covered by
Articles 11 or 13 of this Lease, then Tenant’s right to abate rent shall be governed by the terms of such Article 11 or 13, as applicable, and the Eligibility Period shall not be applicable thereto. Such right to
abate Base Rent and Tenant’s Share of Direct Expenses and to terminate this Lease as set forth above shall be Tenant’s sole and exclusive remedy for rent abatement or termination at law or in equity for an Abatement Event. Except as
provided in this Section 19.6, nothing contained herein shall be interpreted to mean that Tenant is excused from paying Rent due hereunder. 

ARTICLE 20 

ATTORNEYS’ FEES 

If either party commences litigation against the other for the specific performance of this Lease, for damages for the breach hereof or
otherwise for enforcement of any remedy hereunder, the parties hereto agree to and hereby do waive any right to a trial by jury and, in the event of any such commencement of litigation, the prevailing party shall be entitled to recover from the
other party such costs and reasonable attorneys’ fees as may have been incurred. 
 ARTICLE 21

 SECURITY DEPOSIT 

Concurrent with Tenant’s execution of this Lease, Tenant shall deposit with Landlord a portion of the security deposit in the amount set
forth in Section 10 of the Summary, with the remaining portion of the security deposit to be delivered by Tenant as set forth in Section 10 of the Summary (the total amount of security deposit is referred to as the
“Security Deposit”). The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during
the Lease Term. If Tenant defaults with respect to any provisions of this Lease, including, but 

  
 37 

 
not limited to, the provisions relating to the payment of Rent, Landlord may, but shall not be required to, use, apply or retain all or any part of the Security Deposit for the payment of any
Rent or any other sum in default, or for the payment of any amount that Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of
Tenant’s default. If any portion of the Security Deposit is so used or applied, Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its
original amount, and Tenant’s failure to do so shall be a default under this Lease. The Security Deposit shall be subject to reduction as set forth in Section 10 of the Summary. If Tenant shall fully and faithfully
perform every provision of this Lease to be performed by it, the Security Deposit, or any balance thereof, shall be returned to Tenant, or, at Landlord’s option, to the last assignee of Tenant’s interest thereunder, within thirty
(30) days following the expiration of the Lease Term. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, and all other provisions of
law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those amounts reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being
agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of
Tenant. 
 ARTICLE 22 

INTENTIONALLY DELETED 

ARTICLE 23 

SIGNS 

23.1    Major Tenants.    Subject to Landlord’s prior written approval, in
its reasonable discretion, and provided all signs are in keeping with the quality, design and style of the Building, Tenant, if the Premises comprise one of the two largest tenants of the Building, at Tenant’s sole cost and expense, may install
identification signage anywhere in the Premises including in the elevator lobby of the Premises, provided that such signs must not be visible from the exterior of the Building. 

23.2    Multi-Tenant Floor Tenants.    If other tenants occupy space on the floor on
which the Premises is located, Tenant’s identifying signage shall be provided by Landlord (at Landlord’s sole cost and expense) and such signage shall be comparable to that used by Landlord for other similar floors in the Building and
shall comply with Landlord’s Building standard signage program. The initial installation of such identifying signage shall be made by Landlord at Landlord’s sole cost and expense and any modification to such signage subsequent to the
initial installation of the same, shall be made by Landlord at Tenant’s sole cost and expense. 

  
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 23.3    Building Directory.    Tenant
shall, at Landlord’s cost, be entitled to one (1) line on the Building’s lobby directory to place its business name and suite number. The cost of any subsequent modification to Tenant’s building directory signage shall be made
upon the Building’s directory by Landlord, at Tenant’s sole cost expense. 
 23.4    Prohibited Signage
and Other Items.    Any signs, notices, logos, pictures, names or advertisements which are installed and that have not been individually approved by Landlord may be removed without notice by Landlord at the sole expense
of Tenant. Tenant may not install any signs on the exterior (except to the extent expressly permitted in Section 23.5 of this Lease) or roof of the Building or the common areas of the Building or the Real Property. Any signs, window
coverings, or blinds (even if the same are located behind the Landlord approved window coverings for the Building), or other items visible from the exterior of the Premises or Building are subject to the prior written approval of Landlord, in its
sole discretion. 
 23.5    Exterior Signage.    Subject to the terms of this
Article 23, the prior approval of the City of Carlsbad and Landlord (which shall not be unreasonably withheld, delayed or conditioned) and Tenant complying with all Applicable Laws, Landlord hereby grants to Tenant the right, at Tenant’s
sole cost and expense, provided that Tenant is at all times during the Lease Term leasing and occupying (i.e., conducting business in) at least 60% of the Premises and is not in default under this Lease (beyond applicable notice and cure periods),
to design, permit, install and maintain identifying signage on (i) the northeast corner of the Building (the “Building Exterior Sign”), located on the Northeast corner of the building (facing East),
which signage shall be the maximum amount and size of signage permitted by applicable law; and (ii) a strip containing Tenant’s name on the top position on a non-exclusive Building monument sign
(“Monument Sign”). The Building Exterior Sign and the Monument Sign are hereinafter collectively referred to as “Tenant’s Exterior Signage”. 

Tenant’s Exterior Signage shall be subject to Landlord’s approval and all Applicable Laws and any recorded CC&Rs. The content,
size, design, graphics, materials, colors and other specifications of Tenant’s Exterior Signage (including without limitation, the exact location of Tenant’s Exterior Signage, and all contractors or subcontractors utilized by Tenant in
connection therewith, shall be subject to the approval of Landlord (which shall not be unreasonably withheld) and shall be consistent with the exterior design, materials and appearance of the Building and the Real Property and Landlord’s
signage program and/or sign specifications for the Real Property, if any. Tenant shall be solely responsible for all costs and expenses incurred in connection with the design, construction, installation, repair, operation, maintenance, compliance
with Applicable Laws, utilities and removal of Tenant’s Exterior Signage. Tenant’s right to maintain Tenant’s Exterior Signage shall be personal to the Original Tenant or any Non-Transferee Assignee and may not be transferred,
assigned to any other assignee or any sublessee or any other person or entity, so long as such Non-Transferee Assignee does not have an Objectionable Name (defined below). The term
“Objectionable Name” shall mean any name which relates to an entity which is of a character or reputation, or is associated with a political orientation or faction, which is inconsistent with the quality of the
Building as a first-class office building, or which would otherwise reasonably offend a landlord of Comparable Buildings. Tenant shall be responsible for maintaining Tenant’s Exterior Signage in good condition and repair throughout the Lease
Term, at Tenant’s sole cost. Tenant shall insure Tenant’s Exterior Signage as provided in this Lease. Upon the expiration or earlier termination of the Lease Term 

  
 39 

 
or the earlier termination of Tenant’s Exterior Signage rights under this Section 23.5 in the event any of the conditions precedent to the grant of Tenant’s
right to maintain the Tenant’s Exterior Signage set forth above are no longer satisfied, Tenant shall, at Tenant’s sole cost and expense, remove Tenant’s Exterior Signage on or before the expiration or earlier termination of the Lease
Term (or within ten (10) business days of Tenant’s receipt of written notice from Landlord of an early termination of Tenant’s Exterior Signage rights, as applicable) and repair any and all damage to the Building caused by such removal. If
Tenant fails to timely remove Tenant’s Exterior Signage as required herein, Landlord shall have the right to remove the Tenant’s Exterior Signage and Tenant shall be responsible for any and all costs associated with such removal (plus
Landlord’s fee), including, but not limited to, the cost to repair and restore the Building to its original condition, normal wear and tear excepted. Notwithstanding anything in this Lease to the contrary, (i) Tenant shall be solely
responsible for obtaining all required governmental approvals with respect to Tenant’s Exterior Signage, provided that Landlord shall reasonably cooperate and otherwise use its commercially reasonable efforts to assist Tenant in connection with
Tenant’s efforts to obtain such approvals, (ii) Landlord shall have no liability to Tenant in the event Tenant fails to obtain such required approvals, and (iii) such required approvals shall in no event be considered a condition
precedent to Tenant’s obligations under this Lease. 
 ARTICLE 24 

COMPLIANCE WITH LAW 

Tenant shall not do anything or suffer anything to be done in or about the Premises which will in any way conflict with any law, statute,
ordinance or other governmental rule, regulation or requirement now in force or which may hereafter be enacted or promulgated (collectively, “Applicable Laws”) or any recorded CC&Rs affecting the Real Property. At
its sole cost and expense, Tenant shall promptly comply with all such Applicable Laws which relate to (i) Tenant’s conduct of business or use and occupancy of the Premises, (ii) the Alterations and/or any other improvements in the Premises made
by Tenant, or (iii) the Base Building, but, as to the Base Building, only to the extent such obligations are triggered by Tenant’s Alterations, the Tenant Improvements, or use of the Premises. Should any standard or regulation now or hereafter
be imposed on Landlord or Tenant by a state, federal or local governmental body charged with the establishment, regulation and enforcement of occupational, health or safety standards for employers, employees, landlords or tenants, then Tenant
agrees, at its sole cost and expense, to comply promptly with such standards or regulations as they apply to the Premises and/or Tenant. The judgment of any court of competent jurisdiction or the admission of Tenant in any judicial action,
regardless of whether Landlord is a party thereto, that Tenant has violated any of said governmental measures, shall be conclusive of that fact as between Landlord and Tenant. Landlord shall comply with all Applicable Laws relating to the Building
and common areas, provided that compliance with such Applicable Laws is not the responsibility of Tenant under this Lease, and provided further that Landlord’s failure to comply therewith would prohibit Tenant from obtaining or maintaining a
certificate of occupancy for the Premises, or would unreasonably and materially affect the safety of Tenant’s employees or create a significant health hazard for Tenant’s employees. To the extent that the Building or common areas are not
in compliance with Applicable Laws in effect as of the date of this Lease, Landlord shall, at 

  
 40 

 Landlord’s sole cost and expense, make the modifications necessary to cause the same to be in
compliance with Applicable Laws. Landlord shall be permitted to include in Operating Expenses any costs or expenses incurred by Landlord under this Article 24 to the extent consistent with the terms of Section 4.2.4,
above but solely with respect to changes in Applicable Laws after the date hereof. Should any standard or regulation now or hereafter be imposed on Tenant by a state, federal or local government body charged with the establishment, regulation and
enforcement of occupational, health or safety standards for employers, employees or tenants, then Tenant agrees, at its sole cost and expense, to comply promptly with such standards or regulations. 

ARTICLE 25 

LATE CHARGES 
 If
any installment of Rent or any other sum due from Tenant shall not be received by Landlord or Landlord’s designee when due, then Tenant shall pay to Landlord a late charge equal to five percent (5%) of the overdue amount, plus any reasonable
attorneys’ fees incurred by Landlord by reason of Tenant’s failure to pay Rent and/or other charges when due hereunder (provided that with respect to the first late payment in any twelve (12) calendar month, Landlord shall waive such
five percent (5%) late charge if Tenant pays any such overdue amount within five (5) days after Tenant’s receipt of written notice from Landlord that the such amount has not been paid when due). The late charge shall be deemed Additional
Rent and the right to require it shall be in addition to all of Landlord’s other rights and remedies hereunder or at law and shall not be construed as liquidated damages or as limiting Landlord’s remedies in any manner. In addition to the
late charge described above, any Rent or other amounts owing hereunder which are not paid on or before the date they are due shall thereafter bear interest until paid at a rate per annum equal to eighteen percent (18%) per annum, provided that in no
case shall such rate be higher than the highest rate permitted by applicable law. 
 ARTICLE 26

 LANDLORD’S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT 

26.1    Landlord’s Cure.    All covenants and
agreements to be kept or performed by Tenant under this Lease shall be performed by Tenant at Tenant’s sole cost and expense and without any reduction of Rent (except as otherwise expressly provided in Section 19.6 of
this Lease). If Tenant shall fail to perform any of its obligations under this Lease, within a reasonable time after such performance is required by the terms of this Lease, Landlord may, but shall not be obligated to, after reasonable prior notice
to Tenant, make any such payment or perform any such act on Tenant’s part without waiving its right based upon any default of Tenant and without releasing Tenant from any obligations hereunder. 

26.2    Intentionally deleted. 

  
 41 

 ARTICLE 27 

ENTRY BY LANDLORD 

Landlord reserves the right at all reasonable times and upon reasonable notice of at least 24 hours (which may be oral) (except no notice will
be required in the case of emergencies and for regularly scheduled maintenance or janitorial services) to the Tenant to enter the Premises to (i) inspect them; (ii) show the Premises to prospective purchasers, mortgagees or ground or
underlying lessors, or, during the last nine (9) months of the Lease Term, prospective tenants; (iii) post notices of non-responsibility; or (iv) alter, improve or repair the Premises or the Building
if necessary to comply with current building codes or other Applicable Laws, or for structural alterations, repairs or improvements to the Building. Notwithstanding anything to the contrary contained in this Article 27, Landlord may enter the
Premises at any time (without notice) to (A) perform janitorial services or other similar daily/weekly type services; (B) take possession due to any breach of this Lease in the manner provided herein and in accordance with Applicable Law;
and (C) perform any covenants of Tenant which Tenant fails to perform after the expiration of any applicable notice and cure period. Landlord may make any such entries without the abatement of Rent (except as otherwise expressly provided in
Section 19.6 of this Lease) and may take such steps as required to accomplish the stated purposes; provided, however, that any such entry shall be accomplished as expeditiously as reasonably possible and in a manner so as
to cause as little interference to Tenant as reasonably possible. Tenant hereby waives any claims for damages to (or interference with) Tenant’s business, lost profits, any loss of occupancy or quiet enjoyment of the Premises, occasioned
thereby. For each of the above purposes, Landlord shall at all times have a key with which to unlock all the doors in the Premises, excluding Tenant’s vaults, safes and special security areas designated in advance by Tenant. In an emergency,
Landlord shall have the right to use any means that Landlord may deem proper to open the doors in and to the Premises. Any entry into the Premises by Landlord in the manner hereinbefore described shall not be deemed to be a forcible or unlawful
entry into, or a detainer of, the Premises, or an actual or constructive eviction of Tenant from any portion of the Premises. 
 
ARTICLE 28 
 TENANT PARKING 

During the initial Lease Term, Tenant shall have the right, but not the obligation, at no additional charge to Tenant, to rent from Landlord
parking passes on a monthly basis throughout the Lease Term in the amount set forth in Section 11 of the Summary, of which, four (4) parking spaces designated for visitors shall be located in a prominent location at
the front of the Building to be mutually agreed upon by the parties. Tenant shall be responsible for any taxes imposed by any governmental authority in connection with the renting of such parking passes by Tenant or the use of the parking facility
by Tenant. In addition, Tenant may rent from Landlord, subject to availability, additional parking passes on a month-to-month basis at the prevailing rate charged for
parking passes at the location of such passes. Tenant’s continued right to use to parking passes is conditioned upon Tenant abiding by all rules and regulations which are prescribed from time to time for the orderly operation and use of the
parking facility where the passes are located and upon Tenant’s cooperation in seeing that Tenant’s employees and visitors also comply with 

  
 42 

 
such rules and regulations. Landlord specifically reserves the right to change the location, size, configuration, design, layout and all other aspects of the parking facility in question,
including the discontinuance of the valet parking system, at any time and Tenant acknowledges and agrees that Landlord may, without incurring any liability to Tenant and without any abatement of Rent under this Lease (except as otherwise expressly
provided in Section 19.6 of this Lease), from time to time, close-off or restrict access to the parking facility in question for purposes of permitting or facilitating any such construction,
alteration or improvements. In connection with the foregoing, Landlord shall (i) provide Tenant with other temporary substitute parking spaces during any period of closure of the parking facility by Landlord and (ii) use commercially
reasonable efforts to minimize any material interference with Tenant’s access to, and/or use of the Premises. Landlord may totally or partially delegate its responsibilities hereunder to a parking operator in which case such parking operator
shall have all the rights of control delegated by Landlord. The parking passes rented by Tenant pursuant to this Article 28 are provided to Tenant solely for use by Tenant’s own personnel (not including Tenant’s invitees and guests)
and such passes may not be transferred, assigned, subleased or otherwise alienated by Tenant without Landlord’s prior approval not to be unreasonably withheld. In addition to the four (4) parking spaces designated above in the front of the
Building, Tenant shall have the exclusive use on a reserved basis, and at no additional cost to Tenant, to the two (2) parking spaces that are outside of Tenant’s double doors (to be installed pursuant to the Final Working Drawings set
forth in attached Exhibit D) in the back of the Building, except that such two reserved spaces shall count toward Tenant’s overall parking allowance set forth in Section 11 of the Summary. 

ARTICLE 29 

MISCELLANEOUS PROVISIONS 

29.1    Binding Effect.    Each of the provisions of this Lease shall
extend to and shall, as the case may require, bind or inure to the benefit not only of Landlord and of Tenant, but also of their respective successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to the
provisions of Article 14 of this Lease. 
 29.2    No Air
Rights.    No rights to any view or to light or air over any property, whether belonging to Landlord or any other person, are granted to Tenant by this Lease. If at any time any windows of the Premises are
temporarily darkened or the light or view therefrom is obstructed by reason of any repairs, improvements, maintenance or cleaning in or about the Building, the same shall be without liability to Landlord and without any reduction or diminution of
Tenant’s obligations under this Lease. 
 29.3    Modification of
Lease.    Should any current or prospective mortgagee or ground lessor for the Building require a modification or modifications of this Lease, which modification or modifications will not cause an increased cost or
expense to Tenant or in any other way materially and adversely change the rights and obligations of Tenant hereunder, then and in such event, Tenant agrees that this Lease may be so modified and agrees to execute whatever documents are required
therefor and deliver the same to Landlord within thirty (30) days following the request therefor. Should Landlord or any such prospective mortgagee or ground lessor require execution of a short form of Lease for recording, containing, among
other 

  
 43 

 
customary provisions, the names of the parties, a description of the Premises and the Lease Term, Tenant agrees to execute such short form of Lease and to deliver the same to Landlord within
thirty (30) days following the request therefor. 
 29.4    Transfer of Landlord’s
Interest.    Tenant acknowledges that Landlord has the right to transfer all or any portion of its interest in the Real Property and Building and in this Lease, and Tenant agrees that in the event any such transfer and a
transfer of the Security Deposit, Landlord shall automatically be released from all liability under this Lease and Tenant agrees to look solely to such transferee for the performance of Landlord’s obligations hereunder after the date of
transfer. Tenant further acknowledges that, subject to Article 18 above, Landlord may assign its interest in this Lease to a mortgage lender as additional security and agrees that such an assignment shall not release Landlord from its
obligations hereunder and that Tenant shall continue to look to Landlord for the performance of its obligations hereunder. 

29.5    Prohibition Against Recording.    Neither this Lease, or any memorandum,
affidavit or other writing with respect thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of Tenant, and the recording thereof in violation of this provision shall make this Lease null and void at Landlord’s
election. 
 29.6    Captions.    The captions of Articles and Sections are for
convenience only and shall not be deemed to limit, construe, affect or alter the meaning of such Articles and Sections. 

29.7    Relationship of Parties.    Nothing contained in this Lease shall be deemed or
construed by the parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venturer or any association between Landlord and Tenant, it being expressly understood and agreed that neither the method of
computation of Rent nor any act of the parties hereto shall be deemed to create any relationship between Landlord and Tenant other than the relationship of landlord and tenant. 

29.8    Time of Essence.    Time is of the essence of this Lease and each of its
provisions. 
 29.9    Partial Invalidity.    If any term, provision or condition
contained in this Lease shall, to any extent be invalid or unenforceable, the remainder of this Lease, or the application of such term, provision or condition to persons or circumstances other than those with respect to which it is invalid or
unenforceable, shall not be affected thereby, and each and every other term, provision and condition of this Lease shall be valid and enforceable to the fullest extent possible permitted by law. 

29.10    Landlord Exculpation.    It is expressly understood and agreed that
notwithstanding anything in this Lease to the contrary, and notwithstanding any applicable law to the contrary, the liability of Landlord Parties hereunder (including any successor Landlord) and any recourse by Tenant against Landlord shall be
limited solely and exclusively to the interest of Landlord in and to the Real Property and Building, and neither Landlord, nor any of its constituent partners and/or members, shall have any personal liability therefor, and Tenant hereby expressly
waives and releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant. 

  
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 29.11    Entire
Agreement.    It is understood and acknowledged that there are no oral agreements between the parties hereto affecting this Lease and this Lease supersedes and cancels any and all previous negotiations, arrangements,
brochures, agreements and understandings, if any, between the parties hereto or displayed by Landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this Lease. This Lease, the exhibits
and schedules attached hereto, and any side letter or separate agreement executed by Landlord and Tenant in connection with this Lease and dated of even date herewith contain all of the terms, covenants, conditions, warranties and agreements of the
parties relating in any manner to the rental, use and occupancy of the Premises, shall be considered to be the only agreement between the parties hereto and their representatives and agents, and none of the terms, covenants, conditions or provisions
of this Lease can be modified, deleted or added to except in writing signed by the parties hereto. 

29.12    Right to Lease.    Landlord reserves the absolute
right to affect such other tenancies in the Building as Landlord in the exercise of its sole business judgment shall determine to best promote the interests of the Building. Tenant does not rely on the fact, nor does Landlord represent, that any
specific tenant or type or number of tenants shall, during the Lease Term, occupy any space in the Building. 

29.13    Force Majeure.    Any prevention, delay or stoppage due to
strikes, lockouts, labor disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, civil commotions, acts of war, fire or other casualty, and other causes beyond the reasonable
control of the party obligated to perform (collectively, the “Force Majeure”), except with respect to the obligations imposed with regard to Rent and other charges to be paid by Tenant pursuant to this Lease, shall excuse the
performance of such party for a period equal to any such prevention, delay or stoppage and, therefore, if this Lease specifies time period for performance of an obligation of either party, that time period shall be extended by the period of any
delay in such party’s performance caused by a Force Majeure. 

29.14    Notices.    All notices,
demands, statements, approvals or communications (collectively, “Notices’’) given or required to be given by either party to the other hereunder shall be in writing, shall be sent by United States certified or registered mail,
postage prepaid, return receipt requested, or by a reputable overnight courier service which provides evidence of delivery or delivered personally (i) to Tenant at the appropriate address set forth in Section 5 of the
Summary, to such other place as Tenant may from time to time designate in a Notice to Landlord; or (ii) to Landlord at the addresses set forth in Section 3 of the Summary, or to such other firm or to such other place
as Landlord may from time to time designate in a Notice to Tenant. Any Notice will be deemed given on the date of actual delivery or the date of attempted but refused delivery. If Tenant is notified of the identity and address of Landlord’s
mortgagee or ground or underlying lessor, Tenant shall give to such mortgagee or ground or underlying lessor written notice of any default by Landlord under the terms of this Lease by registered or certified mail or by a reputable overnight courier
service which provides evidence of delivery, and such mortgagee or ground or underlying lessor shall be given a reasonable, opportunity to cure such default prior to Tenant’s exercising any remedy available to Tenant. 

29.15    Joint and Several.    If there is more than one Tenant, the
obligations imposed upon Tenant under this Lease shall be joint and several. 

  
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29.16    Authority.    If Tenant is a corporation, limited liability
company or partnership, each individual executing this Lease on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in California and that Tenant has full right and authority to
execute and deliver this Lease and that each person signing on behalf of Tenant is authorized to do so. 

29.17    Governing Law.    This Lease shall be construed and enforced in
accordance with the laws of the State of California. 
 29.18    Submission of
Lease.    Submission of this instrument for examination or signature by Tenant does not constitute a reservation of or an option for lease, and it is not effective as a lease or otherwise until execution and delivery by
both Landlord and Tenant. 
 29.19    Brokers.    Landlord
and Tenant hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Lease, excepting only the real estate brokers or agents specified in
Section 12 of the Summary (the ‘‘Brokers”), and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Lease. Landlord shall pay the brokerage
commissions owing to the Brokers in connection with the transaction contemplated by this Lease pursuant to the terms of a separate written agreement between Landlord and the Brokers. Each party agrees to indemnify and defend the other party against
and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments, and costs and expenses (including, without limitation, reasonable attorneys’ fees) with respect to any leasing commission or
equivalent compensation alleged to be owing on account of the indemnifying party’s dealings with any real estate broker or agent other than the Brokers. The terms of this Section 29.19 shall survive the expiration or
earlier termination of the Lease Term. 
 29.20    Independent
Covenants.    This Lease shall be construed as though the covenants herein between Landlord and Tenant are independent and not dependent and Tenant hereby expressly waives the benefit of any statute to the contrary and
agrees that if Landlord fails to perform its obligations set forth herein, Tenant shall not be entitled to make any repairs or perform any acts hereunder at Landlord’s expense or to any setoff of the Rent or other amounts owing hereunder
against Landlord; provided, however, that the foregoing shall in no way impair the right of Tenant to commence a separate action against Landlord for any violation by Landlord of the provisions hereof so long as notice is first given to Landlord and
any holder of a mortgage or deed of trust covering the Building, Real Property or any portion thereof, of whose address Tenant has theretofore been notified, and an opportunity is granted to Landlord and such holder to correct such violations as
provided above. Except as otherwise provided in this Lease, Tenant, upon paying the rents reserved hereunder and observing and performing all of the covenants, conditions and provisions on Tenant’s part to be observed and performed hereunder
within all applicable notice and cure periods, shall have quiet possession of the Premises for the entire Lease Term. 

29.21    Building Name and Signage.    Landlord shall have the right at
any time to change the name of the Building and to install, affix and maintain any and all signs on the exterior and on the interior of the Building as Landlord may, in Landlord’s sole discretion, desire. Tenant shall not use the name of the
Building or use pictures or illustrations of the Building in advertising or other publicity, without the prior written consent of Landlord, which shall not be unreasonably withheld. 

  
 46 

 29.22    Transportation
Management.    Tenant shall fully comply with all present or future compulsory programs required by applicable governmental authorities intended to manage parking, transportation or traffic in and around the Building, and
in connection therewith, Tenant shall take responsible action for the transportation planning and management of all employees located at the Premises by working directly with Landlord, any governmental transportation management organization or any
other transportation-related committees or entities. 
 29.23    Successors.    Except
as otherwise expressly provided herein, the obligations of this Lease shall bind and benefit the successors and assigns of the parties hereto; provided, however, that no assignment, sublease or other transfer in violation of the provisions of
Article 14 shall operate to vest any rights in any putative assignee, subtenant or transferee of Tenant. 

29.24    Landlord Renovations.    It is specifically understood and agreed that Landlord
has no obligation and has made no promises to alter, remodel, improve, renovate, repair or decorate the Premises, Building, or any parties thereof and that no representations respecting the condition of the Premises or the Building have been made by
Landlord to Tenant except as specifically set forth herein or in the Tenant Work Letter. However, Tenant acknowledges that Landlord may during the Lease Term renovate, improve, alter, or modify (collectively, the “Renovations”) the
Building, Premises, and/or Real Property, including, without limitation, the parking structure, common areas, systems and equipment, roof, and structural portions of the same. In connection with the foregoing, Landlord shall use commercially
reasonable efforts to minimize any material interference with Tenant’s use of and access to the Premises and the parking areas. Tenant hereby agrees that such Renovations and Landlord’s actions in connection with such Renovations shall in
no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of Rent (except as otherwise expressly provided in Section 19.6 of this Lease). Landlord shall have no responsibility or for any reason
be liable to Tenant for any direct or indirect injury to or interference with Tenant’s business arising from the Renovations, nor shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part
of the Premises or of Tenant’s personal property or improvements resulting from the Renovations or Landlord’s actions in connection with such Renovations, or for any inconvenience or annoyance occasioned by such Renovations or
Landlord’s actions in connection with such Renovations. 
 29.25    Good
Faith.    Except (i) for matters for which there is a standard of consent or discretion specifically set forth in this Lease, (ii) matters which could have a material adverse effect on the Building’s
Structure, Building’s heating, ventilation and air-conditioning system, plumbing system, electrical system, or life safety systems, or which could affect the exterior appearance of the Building, or
(iii) matters covered by Article 3 or 19 of this Lease (collectively, the “Excepted Matters”), any time the consent of Landlord or Tenant is required under this Lease, such consent shall not be unreasonably withheld or
delayed, and, except with regard to the Excepted Matters, whenever this Lease grants Landlord or Tenant the right to take action, exercise discretion, establish rules and regulations or make an allocation or other determination, Landlord and Tenant
shall act reasonably and in good faith. 

  
 47 

 29.26    Hazardous
Materials.    Except as expressly provided in Article 5 above, Tenant shall not cause or permit any Hazardous Material (as defined below) to be brought, kept or used in or about the Real Property by Tenant, its
agents, employees, contractors, or invitees. Tenant indemnifies Landlord from and against any breach by Tenant of the obligations stated in the preceding sentence (including Tenant’s obligations under Article 5 above) or from any release
of Hazardous Materials by Tenant, and agrees to defend and hold Landlord harmless from and against any and all claims, judgments, damages, penalties, fines, costs, liabilities, or losses (including, without limitation, diminution in value of the
Real Property, damages for the loss or restriction or use of rentable or usable space or of any amenity of the Building, damages arising from any adverse impact or marketing of space in the Building, and sums paid in settlement of claims,
attorneys’ fees and costs, consultant fees, and expert fees) which arise during or after the Term of this Lease as a result of such breach or release of Hazardous Materials by Tenant. This indemnification of Landlord by Tenant includes, without
limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal, or restoration work required by any federal, state, or local governmental agency or political subdivision because of Hazardous
Material present in the soil or ground water on or under the Real Property if and to the extent caused by Tenant. Landlord shall protect, defend, indemnify and hold Tenant free and harmless from and against any liability relating to Hazardous
Materials present in or about the Real Property as of the Effective Date. As used herein, the term “Hazardous Material” means any hazardous or toxic substance, material, or waste which is or becomes regulated by any local
governmental authority, the State of California or the United States Government. 
 ARTICLE 30

 ADDITIONAL PROVISIONS 

30.1    Rooftop Rights. 

30.1.1    Right to Maintain Rooftop Equipment.    Subject to the terms of this
Section 30.1, any CC&Rs and any Applicable Laws, Tenant shall have the non-exclusive right to install, operate and maintain at Tenant’s sole cost (but at no additional rental
charge) one (l) satellite dish, antennae or other communication device on the roof of the Building (the ‘‘Rooftop Equipment”) for Tenant’s sole use at the Premises, subject to the terms hereof. Such
installation of the Rooftop Equipment shall be further subject to Landlord’s prior written approval (not to be unreasonably withheld, conditioned or delayed) of the Rooftop Equipment Tenant wishes to install, provided that in Landlord’s
determination that (a) the Building can structurally accommodate the Rooftop Equipment, (b) there is sufficient space on the roof for the Rooftop Equipment, and (c) the Rooftop Equipment does not violate any recorded CC&Rs and/or
any Applicable Laws. Any cabling and wiring through the Building interior risers, and pathways of the Building that currently connect facilities located on the roof with the Premises shall be included as part of the Rooftop Equipment. Tenant shall
notify Landlord in writing if Tenant wishes to install Rooftop Equipment, which notice shall specifically identify the size, specifications, and requirements of the Rooftop Equipment that Tenant wishes to install. Thereafter, Landlord shall notify
Tenant if Landlord approves of the installation of the identified Rooftop Equipment. The actual location of the Rooftop Equipment shall be referred to herein as the “Roof Area”. Tenant agrees that the Roof Area (including, without
limitation, any interior conduits, risers and pathways used to connect the Roof Area to the Premises) is not part of the 

  
 48 

 
Premises, but Tenant is hereby granted a right to use such Roof Area, subject to Tenant’s compliance with the terms of this Lease, including without limitation, Tenant’s insurance and
indemnification obligations. 
 30.1.2    Maintenance of Rooftop
Equipment.    Tenant will be responsible, at its sole cost and expense, for the installation, maintenance, repair and removal of the Rooftop Equipment, and Tenant shall at all times maintain the Rooftop Equipment in
compliance with Applicable Laws and in good condition and repair, ordinary wear and tear excepted. 

30.1.3    Conditions of Installation.    Tenant shall comply with all Applicable Laws
relating to the installation, maintenance and operation of Rooftop Equipment at the Building and will pay all costs and expenses relating to such Rooftop Equipment, including the cost of obtaining and maintaining any necessary governmental permits
for the installation, operation and maintenance thereof in compliance with Applicable Laws. If any testing, monitoring or reporting becomes necessary under Applicable Laws, such as testing under OSHA for electromagnetic or radio frequency
interference, Tenant shall perform such testing of its equipment at its sole cost. 

30.1.4    Interference.    In no event shall Landlord
have any liability or responsibility for any interference with Tenant’s operations, except to the extent resulting from the negligence or willful misconduct of Landlord, its agents, employees or contractors. If Landlord or any of
Landlord’s tenants or licensees or future tenants or licensees should cause material and irresolvable interference with Tenant’s equipment, then, in addition to any other rights and remedies of Tenant, Tenant may enjoin any such
interference without the involvement or participation of Landlord. 
 30.1.5    Relocation of the
Rooftop Equipment.    Subject to the terms set forth in this Section 30.1.5, Landlord at its election and its sole cost and expense may require the relocation of the Rooftop Equipment. In connection
with any relocation of Tenant’s Rooftop Equipment at the request of or required by Landlord, Landlord shall provide Tenant with at least thirty (30) days’ prior written notice of the required relocation and will conduct the relocation
in a commercially reasonable manner and in such a way that will, to the extent reasonably possible, prevent interference with the normal operation of Tenant’s Rooftop Equipment. In connection with any relocation, Landlord further agrees to work
with Tenant in good faith to relocate Tenant’s Rooftop Equipment to a location that will permit its normal operation for Tenant’s business operations. 

30.1.6    Removal of the Rooftop Equipment.    Tenant shall, at Tenant’s
sole cost, remove the Rooftop Equipment on or before the expiration of this Lease. In the event that Tenant shall fail to timely comply with the terms of this Section 30.1.6, Landlord shall have the right, but not the
obligation, to perform the obligations of Tenant hereunder, and Tenant shall pay to Landlord the cost thereof, including Landlord’s fee relating thereto, which amounts shall be payable by Tenant to Landlord within ten ( 10) days following
demand by Landlord. 
 30.1.7    Roof Access; Rules and Regulations.    Tenant
and its representatives shall have access to and the right to go upon the roof of the Building, upon prior notice to Landlord, on a seven (7) day per week, twenty-four (24) hour basis, to perform its obligations 

  
 49 

 
under this Section 30.1. Tenant may install Rooftop Equipment at the Building only in connection with its business operations at the Premises, and may not lease or license any rights
or equipment to third parties or allow the use of any rooftop equipment by any party other than Tenant. Tenant acknowledges that Landlord has made no representation or warranty as to Tenant’s ability to install any such Rooftop Equipment on the
roof of the Building or to operate such Rooftop Equipment at the Building and Tenant acknowledges that equipment installations and other structures and activities at or around the Building may result in interference with Tenant’s Rooftop
Equipment. 
 [signatures on next page] 

  
 50 

 IN WITNESS WHEREOF, Landlord and Tenant have caused their duly authorized
representatives to execute this Lease as of the day and date first above written. 
  

									
	LANDLORD:	 		 	TENANT:
			
	HR MELROSE LLC,
a Delaware limited Liability company	 		 	SPINAL ELEMENTS, INC.,
a Delaware corporation
					
	By:	 	 /s/ Douglas Brown
	 		 	By:	 	 /s/ Steve McGowan

	Its:	 	Managing Director	 		 	Its:	 	CFO
	Name:	 	Douglas Brown	 		 	Name:	 	Steve McGowan
					
		 		 		 	By:	 	 /s/ Jason Blain

		 		 		 	Its:	 	President
		 		 		 	Name:	 	Jason Blain

  
 S-1 

 EXHIBIT A 

OUTLINE OF PREMISES (1ST FLOOR SPACE) 

 
  
 

 
  

  
 A-1 

 OUTLINE OF PREMISES (2ND FLOOR
SPACE) 
  
  
 

 
  

  
 A-2 

 EXHIBIT A-1

 OUTLINE OF TEMPORARY SPACE 
  

 
 

 
  

  
 A-3

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