Document:

Document

Exhibit 10.19

LEAVE AND LICENSE AGREEMENT
THIS LEAVE AND LICENSE AGREEMENT IS MADE THIS 23rd DAY OF FEBRUARY 2018 AT PUNE,

BETWEEN
HIS HOLINESS DR. SYEDNA TAHER SAIFUDDlN MEMORIAL FOUNDATION, a Public Trust registered with the Charity Commissioner at Mumbai bearing No. E-15771 (Mum) having its registered office at Amatullah Manzil, 1st Floor, 65 Perin Nariman Street, Fort, Mumbai 400001 and hereinafter referred to as the “Licensor” (which expression shall unless repugnant to the context or meaning thereof be deemed to mean and include its trustees for the time being and the last surviving trustee and heirs, executors, administrators and assigns of such last trustee) and represented herein by its Trustee Dr. Shaikh Iqbal Bagasrawala of the One Part.
AND
PUBMATIC INDIA PRIVATE LIMITED, a company incorporated under the laws of India, having its registered office at 6th Floor, Amar Paradigm, Near D­mart, Baner Road, Pune, Maharashtra 411045, hereinafter referred to as “Licensee” (which expression shall, unless the context requires otherwise, mean and include its successors and permitted assigns), and represented herein by its Co-Founder & Sr. Vice President Mr. Mukul Kumar of the Other Part.
WHEREAS
A.The Licensor is the owner of and absolutely seized and possessed of Unit Nos. 601, 602, 603, 604, 605, 606, 607, 608, 609, 610, 611 and 612 in aggregate admeasuring 35.272 sq. ft. built up area on the 6th Floor of the building known as Amar Paradigm situated at amalgamated land from Hissa Nos. 11/3, 11. and 11/23 from Survey No. 110, Village Baner, Taluka Haveli, within the limits of Pune Municipal Corporation hereinafter referred to as the “Licensed Premises” and more particularly described in the Schedule hereunder written and delineated in the plan annexed hereto.
B.The License has approached the Licensor with a request to allow the License to occupy and use the Licensed Premises for carrying on their business, on leave and license basis for a term of 35 months on terms and conditions mutually agreed between the parties.
C.The Licensor has agreed to grant to Licensee, the license to occupy and use the Licensed Premises on the terms and conditions agreed herein.
D.The Licensed Premises are in fully fitted out (as is where is) form with I 00% power back-up through diesel power generator sets.
E.The parties are desirous of recording the terms and conditions of the leave and license in the manner hereinafter appearing;
2

THE PARTIES HEREBY AGREE AS FOLLOWS:
1.DEFINITIONS.
1.1In this Leave and License Agreement.  unless repugnant to the context thereof, wherever capitalized.  the following terms shall have the meanings ascribed to them below:
(a)“Agreement” means this Leave and License Agreement including all schedules and annexure hereto as may be modified from time to time in accordance with the provisions hereof.
(b)“Chargeable Area” shall mean the area of 35,270 sq. ft. built up with a floor efficiency of 75% carpet area.
(c)“Effective Date” means 3rd March, 2018.
(d)“Licensed Premises” means Unit os. 601, 602, 603, 604, 605, 606, 607, 608, 609, 610, 611 and 612 in aggregate admeasuring 35,270 sq. ft. built up area on the 6th Floor of the building known as Amar Paradigm situated at amalgamated land from Hissa Nos. 11/3, 11, and 11/23 from Survey No. 110, all together admeasuring 8467.18 sq. mtRs. at Village Baner, Taluka Haveli, within the limits of Pune Municipal Corporation and more particularly described in the Schedule hereunder written and delineated in the plan annexed hereto.
(e)“License Fee Commencement Date” means the date from which the Licensee shall become responsible for payment of License Fee for the Licensed Premises as provided in clause 5.1 hereof.
(f)“Parties” means the Licensor and Licensee, collectively, and “Party” means either the Licensor or Licensee, as the case may be.
(g)“Maintenance Charges” means the maintenance charges contemplated in clause 9.
(h)“Other Payments” means the amounts payable by the Licensee to the Licensor towards Goods and Service Tax (GST). cess/ levies on the amount of license fee and/or on the maintenance charges in respect of the Licensed Premises and charges for utilities consumed in the Licensed Premises as may be applicable during the tenure of the Agreement, damages, if any, caused to the Licensed Premises on account of use of the Licensed Premises by the Licensee (normal wear and tear excepted).
(i)“Term” means the term of the Agreement provided in clause 4.1.
(j)“Security Deposit” means the interest free refundable security deposit described in clause 6.
1.2All terms of the singular shall include the plural and all terms having the male gender shall include the female gender.
3

1.3All terms defined in the several clauses hereof, shall have the same meaning assigned to such terms in the clauses.
2.REPRESENTATIONS AND WARRANTIES.
2.1The Parties mutually warrant the correctness of the representations and warranties recorded herein.  The Parties recognize and understand that the leave and license agreement is executed between the Parties relying on the strength of the representations and warranties made by the Parties herein.
2.2The Licensor hereby represents and warrants to the Licensee as follows:
(a)The Licensor is the lawful owner of the Licensed Premises having purchased the same from Amar Builders, the Promoter Developer, with Vikram Developers and Others as Consenting Party vide Agreement to Sell dated 20/11/2009, registered in the Office of Sub Registrar Haveli No. 11, at Sr. No. 10209/09 dated 21/11/2009.
The entire consideration payable under the said agreement has been paid.
(b)The Licensor is a public trust duly registered with the Charity Commissioner at Mumbai.  It has all necessary permissions/ approvals to occupy the Licensed Premises (including the occupancy/completion certificates), and for the commercial use of the Licensed Premises and no statutory or other approval is required to give the Licensed Premises on leave and license to the Licensee and enter into this Agreement.
(c)The Licensed Premises are not subject to any encumbrance, charge, lien or negative rights of any nature whatsoever, nor are the Licensed Premises the subject matter of any agreement for sale, lease, mortgage or other transaction that may create any rights that could adversely affect the rights of the Licensee under this Agreement.
(d)The Licensed Premises are not subject of any existing, perceived or threatened or anticipated litigation or claims of any nature whatsoever.
(e)The Licensed Premises are meant for commercial purpose and are being assessed as such by the local municipal authorities.
(f)The Licensor has complied and shall comply with all laws, rules and regulations applicable to licensing the licensed premises.
2.3The Licensee hereby represents and warrants to the Licensor as follows:
(a)The Licensee is a validly constituted Company under the Companies Act, 1956 and as such authorized to take on leave and license basis the said Licensed Premises for use as its office.
(b)The Licensee is carrying on business of product development of online advertising and yield optimization.
4

(c)The Licensed Premises shall be used exclusively by the Licensee for carrying on its business.
(d)The Licensee has the necessary authorizations, approvals and permits to carry on its business in Pune, India and if any specific approvals are necessary to be obtained to carry on business at the Licensed Premises the same shall be obtained and maintained by the Licensee at its costs.
(e)The paid up share capital of the Licensee is currently more than Rs. 1,00,00,000/- (Rupees One Crore only).  The Licensee shall at all times during the Term of this Agreement, maintain a minimum paid-up share capital of more than Rs. 1,00,00,000/- (Rupees One Crore only).
2.4The Parties recognize and accept that any inaccuracy, misrepresentation, deviation or failure to perform any of the representations and warranties herein shall constitute a material default under this Agreement.
3.LICENSE.
3.1Based on the aforesaid representation and warranties, the Licensor hereby grants leave and license to the Licensee to occupy and use the Licensed Premises in conside1:ation for the Licensee agreeing to pay the license fee, Maintenance Charges and Other Payments, payable by the Licensee to the Licensor and in accordance with the terms and conditions contained herein.
4.TERM OF LICENSE & LOCK IN PERIOD.
4.1The term of the License shall be for a period of 35 (thirtyfive) months from the Effective Date (“Term”).
4.2The lock-in period shall be 12 months from the Effective Date for the Licensee and 35 months from the Effective Date for the Licensor.  During the lock-in period applicable to the Licensee, the Licensee shall not be entitled to terminate this Agreement, except as provided in clauses 18.5 or 19, and during the lock-in period applicable to the Licensor, the Licensor shall not be entitled to terminate this Agreement except as provided in clauses 18.5 or 19.  After the lock-in period applicable to the Licensee has expired, the Licensee shall be entitled to terminate this Agreement with at least 60 days’ advance notice in writing to the Licensor.
4.3The Parties may agree for renewal of the License upon expiry of the period of 35 months on such terms and conditions mutually agreed between them.

5.LICENSE FEE.
5.1In consideration of the Licensor granting the license to the Licensee to occupy and use the Licensed Premises, the Licensee shall pay a monthly license fee to the Licensor commencing from the License Commencement Date which is 3rd March, 2018.
5

5.2During the Term of this Agreement, the Licensee shall pay to the Licensor a sum of Rs. 21,51,470/- (Rupees Twenty One Lakhs Fifty One Thousand Four Hundred and Seventy only) per month calculated·@ Rs. 61/- (Rupees sixty one) per square foot per month on Chargeable Area.
5.3The monthly license fee shall be paid on or before the 7th day of each month.
5.4Goods and Service Tax (GST) and other levies payable on the license fee shall be paid over and above the license fee by the Licensee at applicable rates.
5.5The Licensor shall furnish to the Licensee a certificate from the Income Tax Authorities for non-payment of Tax Deduction at Source (TDS) and hence the Licensee shall not be required to deduct any TDS on the license fee payable by the Licensee to the Licensor.  If the Licensor fails to provide the certificate within 3 months from the Effective Date, the Licensee shall be entitled to deduct TDS from the license fee payable to the Licensor.  The Licensee shall furnish the necessary TDS certificate as required by law.
6.SECURITY DEPOSIT.
6.1Simultaneously on execution of this Agreement, the Licensor confirms and acknowledges that the Licensee has paid to the Licensor a sum of Rs. 1,29,09,552 (Rupees One Crore Twenty Nine Lakhs Nine Thousand Five Hundred and Fifty Two Only) equivalent to 6 months’ license fee, as an interest free refundable security deposit.
6.2The amount of Security Deposit shall remain constant during the entire Term of this Agreement.
6.3The Licensor shall be entitled to retain the Security Deposit during the entire Term of the Agreement and the Licensor shall be refunded the Security Deposit without interest after deducting any arrears of license fee, Maintenance Charges and Other Payments as provided hereunder, simultaneously upon the Licensee vacating the Licensed Premises as provided herein.
7.FIT-OUTS.
7.1The Licensor has carried out fit-outs (furniture and fixtures) in the Licensed Premises as mutually agreed between the Parties.  The fit-outs included creation of separate toilets for males and females within the Licensed Premises.
7.2.The fit-outs (furniture and fixtures) shall at all times remain the property of the Licensor and the Licensee shall use the same in a prudent and reasonable manner, without causing any damage or alteration thereto, normal wear and tear is excepted.
7.3During the Term, the Licensee shall at its costs renew from time to time the annual maintenance contracts in respect of the equipments installed in the Licensed Premises by the Licensor.
6

8.ACCESS AND COMMON AREAS.
8.1The Licensee, including its officers, employees and visitors shall be entitled to access to the Licensed Premises and the other common areas of the building 24 hours a day, 7 days a week all year round, unless prevented in accordance with the local laws.
9.MAINTENANCE.
9.1The Licensee shall pay the outgoings towards maintenance charges for the Licensed Premises to the association/management company (as the case may be) looking after the day to day maintenance of the common area of the building in which the Licensed Premises are situated.
9.2As on date of this Agreement the sum of Rs. 5.25 per sq. ft. of chargeable area of the Licensed Premises is payable to the association/management company as Maintenance Charges.  If there is any increase in the Maintenance Charges the same shall be borne and paid by the Licensee alone.
9.3If any taxes or other levies are payable on the Maintenance Charges, the same shall be paid by the Licensee over and above the Maintenance Charges.
10.ELECTRICITY FOR THE PREMISES.
10.1The Licensee shall pay for electricity charges, as per· the readings of the separate electricity meter/s installed and provided by the Licensor in respect of the Licensed Premises, directly to the service provider or the Licensor as the case may be.  The Licensee shall furnish a copy of the payment receipt to the Licensor for its record.
10.2The Licensor has provided an electric load of 350 KVA in the Licensed Premises.  In case the Licensee’s business operations require additional power supply, the Licensor shall, upon receipt of Licensee’s written request, procure additional power from the service provider at the costs of the Licensee.
10.3The Licensor shall provide 100% power back up for the Licensed Premises with capacity of 350 KVA.  The costs of running the gen-set and maintenance of the gen-set shall be borne and paid by the Licensee.
11.OTHER FACILITIES.
11.1The Licensor shall provide 33 four wheeler car parking spaces along with the Licensed Premises.  Two wheelers will be accommodated in the four wheeler parking slots.  The Licensee shall not be required to pay any additional compensation for use of the car parking spaces.  If the Licensee requires any additional parking spaces, on receipt of written request and subject to availability, the Licensor may provide the same to the Licensee at extra costs mutually agreed between the Parties.
7

11.2The Licensee shall be permitted to install its signage in the following areas, without any extra cost:
(a)Pylon Directory near entrance of building;
(b)Near Basement Entrance;
(c)Near common IT lobby;
(d)On the floor level of the Licensed Premises; and
(e)On the external Alucobond facade.
The Licensee will not be liable to pay any additional charges/compensation in respect of signage to the Licensor.  If any licenses or approval are required or any taxes, cess or any other levy or license fees are payable to any authority.  the same be obtained and paid for by the Licensee.
12.PAYMENTS.
12.1The Licensee shall pay Maintenance Charges and Other· Payments along with the payment of license fee, and terms of clause 5 shall wherever the context requires, mutatis mutandis apply to payment for Maintenance Charges and Other Payments.
12.2All payments of the license fee, Maintenance Charges and Other Payments shall be made by demand draft or bank transfer, at the option of the Licensee after confirmation by Licensor.  The mode of monthly payment shall be constant unless modified by the Licensee by giving 3 months’ advance notice to the Licensor.
12.3All demand for payments (excluding deposits) by the Licensor from the Licensee under the terms of this Agreement shall be made by raising an invoice specifying the nature of payment and the period for which payment is required to be made.
12.4In case of any delay beyond 10 days from due date in payment of license fee or Maintenance Charges and Other Payments in any two consecutive months in a period of any one year, the Licensor shall have the option to terminate the Agreement.  The Licensee shall remain liable for its commitment to pay the license fee for the unexpired lock-in period on termination of the Agreement by Licensor on this ground.
13.REPAIRS AND ALTERATIONS.
13.1The License shall be responsible for the day to day maintenance and upkeep of the Licensed Premises.  The Licensee agrees to maintain the interior of the Licensed Premises in wind and water tight condition and take all reasonable preventive and curative steps to effect repairs thereto (except for major or structural repairs), including prevention of any leakage and also carry out general pest control and termite treatment to the Licensed Premises, and on expiry or earlier termination of the license, the Licensed Premises shall be returned in good order and 
8

condition, subject to normal wear and tear to the Licensed Premises that has occurred during the Term of the Agreement and other provisions contained herein.
13.2All minor repairs to the Licensed Premises including the fit-outs (maintenance of inside walls, roof and flooring and tenantable improvements) shall be carried out by the Licensee at its own cost and expenses.
13.3The Licensor at its cost shall be responsible for carrying out all external repairs and any internal structural repairs that may be required to be carried out to the Licensed Premises.  If the Licensor fails to carry out such major repairs, after 60 days’ notice being given by the Licensee to the Licensor of such repair, the Licensee shall (with prior approval of the Licensor) carry out such repairs and shall deduct the cost of such repairs from the license fee payable by the Licensee.
13.4The Licensor shall ensure that all repairs and maintenance of the Property and/or the Licensed Premises are carried out after prior written notice to the Licensee and in consultation with the Licensee to minimize the impact on its business.  The Licensee shall offer co-operation to the Licensor for the said purpose.
13.5In addition to the fit-outs carried out by the Licensor, the Licensee shall be entitled to install additional furniture, fittings, lighting, computers. EPBAX, communication devices or other equipments necessary for the purpose of its business.
13.6The Licensee shall not be entitled to make any structural changes or remove or replace any fit-outs carried by the Licensor to the Licensed Premises without the prior written approval of the Licensor.
14.USE OF THE PREMISES.
14.1During the term of this Agreement, the Licensee shall:
(a)Not store or allowed to be stored in the Licensed Premises, any combustible or hazardous material at any time;
(b)Other than normal wear and tear, not cause any damage to the Licensed Premises or the furniture and fixtures installed therein.
(c)Allow Licensor’s representatives to inspect the Licensed Premises during office hours provided one day’s advance written intimation for the same is given, provided however in case of emergency, the Licensor’s representatives shall be entitled to inspect the Licensed Premises with shorter notice or without notice.
(d)Not to do or permit to be done anything in the Licensed Premises which is likely to be a nuisance or annoyance to the other neighbors or which is likely to cause damage to the Licensed Premises or any part thereof.
9

(e)Restrict the use of the common area on the building only for accessing the Licensed Premises.  Not to install or encroach upon the common area of building wherein the Licensed Premises are situated.
(f)The Licensee shall observe all the rules and regulations governing the unit occupiers in the building known as Amar Paradigm.
14.2The Licensee shall obtain all statutory approvals and/or consents necessary for its business.  The Licensor permits the use of the address of the Licensed Premises as temporary address for the purpose of obtaining statutory approvals/consents.  The Licensor shall wherever reasonably necessary give its no-objection for obtaining such approvals.  The Licensee shall furnish to the Licensor a copy of all such approvals and consents obtained by it.  The Licensee alone shall be responsible to comply with the terms of.  the· approvals and local laws concerning its business.  On expiry of the license or sooner termination thereof, the Licensee shall surrender or transfer the approvals/consents to wherever it deems fit, at its costs.
14.3There would be no privity of contract between the employees of the Licensee and the Licensor and the Licensee alone shall be responsible for compliance with various lows applicable thereto and for payment of wages, salary and other benefits as required by law.
15.PROPERTY TAXES.
15.1The Licensor shall be responsible for the payment of municipal assessments and property taxes to the authorities in respect of the Licensed Premises.
15.2In the event of the Licensee receiving any notice from any authorities requiring payment of any taxes, the Licensee shall forward the same to the Licensor as soon as possible.  In the event of the Licensor not making any such required payment, the Licensee shall be entitled to make payment of the same (with prior approval of the Licensor) and shall thereupon be entitled to deduct the same from the license fee and other charges payable under the terms of this Agreement.
16.SPECIFIC COVENANTS.
16.1The Licensee acknowledges that the Licensor is the absolute owner of the Licensed Premises and the license for the use of the Licensed Premises hereby granted to the Licensee is personal and for the limited purpose of carrying on its business.
16.2During the Term, the Licensor shall always be in constructive and in juridical possession of the Licensed Premises and the Licensee will be in use of and occupation of the Licensed Premises as mere Licensee, it being the intention of both the parties that the exclusive possession of the Licensed Premises shall always vest in the Licensor alone.·
16.3Nothing herein contained shall be construed as creating any right interest, easement, tenancy or sub-tenancy or any other right or title of any kind whatsoever in favour of the Licensee in respect of the Licensed Premises or as creating any interest therein in favour of 
10

the Licensee other than the permissive use and occupation of the Licensed Premises hereby granted to the Licensee under the terms of this Agreement.
16.4The Licensee shall neither be entitled to let or sublet, assign or transfer any rights under this Agreement to any third party nor permit anyone other than its authorized officers, employees, staff and visitors to occupy or use the Licensed Premises or any part thereof without prior written consent of the Licensor.  The Licensee is permitted to allow its subsidiary or holding company, to use the Licensed Premises for the purpose of its business with prior intimation to the Licensor, but the Licensee shall remain liable for all the responsibilities under this Leave and License Agreement.
16.5The Licensor shall be permitted to assign its obligations under this Agreement to any other Party on the provision of 30 days’ written notice to the Licensee.  The Licensor shall not be entitled, without the provision of 30 days’ prior written notice to the Licensee, to sell/ convey the Licensed Premises.  Provided that in the event of such a sale of the Licensed Premises, the Licensee’s rights hereunder shall not be adversely prejudiced and that the intending Purchaser/s shall confirm this arrangement recorded herein and undertake to refund the Security Deposit to the Licensee as agreed hereunder.  Provided that the Licensor shall ensure that any third party obtaining any interest in the Licensed Premises shall, 30 days prior to obtaining the interest in the Licensed Premises, provide a written undertaking to the Licensee agreeing to abide by this Agreement.
17.INSURANCE.
17.1The Licensee shall at its discretion be entitled to keep the Licensed Premises and the fit-outs installed therein by the Licensor and belongings of the Licensee in the Licensed Premises insured in such manner as it may deem fit.
17.2The Licensee shall at its discretion be entitled to keep the Licensed Premises and belongings of the Licensee in the Licensed Premises insured in such manner as it may deem fit.
18.FORCE MAJEURE.
18.1Neither Party shall be liable for any Event of Force Majeure which (a) is beyond the reasonable control of such Party, (b) cannot by exercise of reasonable diligence be prevented or caused to be prevented, (c) cannot be prevented or overcome despite the adoption of reasonable precautions and alternative measures; and (d) which materially and adversely affects such Party’s performance of its obligations under this Agreement.
18.2An Even of Force Majeure means but not limited to (a) an Act of God, that is, any fire, flood, earthquake, storm or other natural disaster; (b) an act of war, invasion, armed conflict, hostile act of foreign enemy, revolution, riot, insurrection, civil commotion or act of terrorism; or (c) any explosion, fire, blockade, breakdown or other accident not caused due to negligence or failure to take due care or to comply with the terms of this Agreement.
11

18.3In the event of the occurrence of any Event of Force Majeure.  such of the obligations that cannot be performed shall be suspended during the period of the Event of Force Majeure.  The Party concerned shall immediately communicate to the other Party the existence of such Event of Force Majeure and use best efforts to alleviate the difficulty caused by such Event of Force Majeure.  It is clarified, however, that in any such event of Force Majeure, the Licensor shall not be entitled to take any unilateral action requiring the Licensee to vacate the Licensed Premises for any period of time unless there is a Government or Municipal order requiring the same and shall take necessary steps in consultation with the Licensee as far as possible.
18.4Reserved.
18.5If Licensee is unable to use the Licensed Premises for its business on account of any events of Force Majeure, the Licensee shall not be obligated to make payment of license fee, Maintenance Charges or Other Payments to the Licensor during such period.  If the events of Force Majeure continue for a period 60 days, either Party shall be entitled to terminate this Agreement by giving 30 day advance notice in writing to the other.  In the event, this Agreement is terminated during either the Licensor or the Licensee lock-in periods for reason of Force Majeure, the Licensee shall not be required to pay the license fee for the balance period of the lock-in.
19.TERMINATION.
19.1In case of breach of any of the terms of this Agreement by either Party (save and except the non-payment of Licensee Fee, Maintenance Charges and Other Payments), the other Party (i.e.  non-defaulting party) shall issue a written notice stating the breach and manner in which it is to be rectified.  Failure to cure the breach within 30 days of receipt of notice by the defaulting party, shall entitle the non-defaulting party t0 terminate this Agreement.
19.2In case of delay in payment exceeding 10 days from the due date of payment in any two consecutive months in any one year of the term of this Agreement or in case of non-payment of license fee, Maintenance Charges and Other Payments in any two months in any one year of the term of this Agreement, the Licensor shall be entitled to terminate this Agreement and call upon the Licensee to vacate the Licensed Premises.
19.3If the Agreement is terminated on account of breach by the Licensee, the Licensee shall be bound and liable to pay the license fee for the unexpired term of the lock-in period to the Licensor.
19.4On the happening of any of the following events.  the Agreement shall automatically terminate:
(a)The Licensee files a voluntary petition for winding up;
(b)The Licensee or the Licensor is adjudged insolvent;
12

(c)A trustee or receiver is appointed by a court for all or a substantial portion of the assets of the Licensee or the Licensor;
(d)The Licensee suspends its business;
(e)A court assumes jurisdiction of the assets of the Licensee or the Licensor;
(f)The Licensee or the Licensor makes an assignment of their assets for the benefit of its creditors except as required in the ordinary course of business.
19.5On expiry of the term of this Agreement or sooner termination as provided herein (including, without limitation, under clause 18.5), the following consequences shall follow:
(a)The Licensee shall vacate the Licensed Premises removing all the moveable furniture and equipments brought by the Licensee.  The moveable furniture and equipments brought by the Licensee shall be removed without damaging the Licensed Premises.  If in the opinion of the Licensee, any attempt to remove any moveable furniture and equipments brought by the Licensee shall damage the Licensed Premises, the Licensee shall either (i) leave the fixture in place or (ii) remove the fixture and restore the damaged portion of the Licensed Premises to its original form.  The Licensor shall not be liable to reimburse the costs of any fixtures left behind by the Licensee.  The Licensee shall not be entitled to remove or damage any part of the fixtures installed by the Licensor as part of fit-outs.  Prior to handing over the Licensed Premises, the Licensee and the Licensor shall carry out a joint inspection of the Licensed Premises one month prior to ascertain damage, if any, to the Licensed Premises and the fit-outs carried out by the Licensor.  If any damage is found, the Licensee shall be bound to restore the same at its costs prior to vacating the Licensed Premises.
(b)The Licensor shall refund the Security Deposit to the Licensee simultaneously on the Licensee complying with clause (a) above.  If there are any arrears of payment of license fees, Maintenance Charges or Other Payments or failure to handover TDS certificate by the Licensee, an amount equivalent of such arrears shall be deducted from the Security Deposit.
(c)If the Licensor does not return the Security Deposit to the Licensee as required herein, the Licensee shall be entitled to continue to occupy the Licensed Premises, without any obligation of payment of license fee until such time as the Security Deposit is refunded, provided however, the Licensee shall pay its share of maintenance charges and electricity charges and payment of utilities consumed in the Licensed Premises.
(d)Without prejudice to the other remedies available to the Licensor, if the Licensee does not vacate the Licensed Premises on expiry of the term of this Agreement or sooner termination despite the Licensor willing to refund the Security Deposit, the Licensee shall be liable to pay twice the amount of last paid license fee for such period that the Licensee remains in occupation of the Licensed Premises.  The Licensor shall be entitled adjust such amount from the Security Deposit.
13

20.GOVERNING LAW AND JURISDICTION.
20.1This Agreement shall be governed in all respects by laws of India and shall be subject to exclusive jurisdiction of Courts in Pune.
20.2In case of any difference and/or dispute between the Parties arising out of any provision of this Agreement including interpretation of any clause hereof, the Parties shall attempt to amicably resolve the same in consultation (by Senior Officers) with each other within a period of 30 days.  In case the issues cannot be resolved amicably Parties shall refer the matter to a sole arbitrator to be appointed by the Parties.  The arbitration shall be in English language in Mumbai and in accordance with the Arbitration and Conciliation Act, 1996 (as amended).
21.INDEMNITY.
21.1Either Party shall indemnify the other against any and all claims, losses, injuries, liabilities, costs, expenses, damages, actions or proceedings directly arising from breach of the provisions of this Agreement or violation of law or inaccuracy/misrepresentation of representations or warranties under this Agreement.  The indemnity shall include the costs of litigation incurred by the non-breaching party in defending its interest in case if any claims are made resulting in institution of legal proceedings.
22.MISCELLANEOUS.
22.1This Agreement together with the annexed Schedules executed by the parties hereto constitutes the entire agreement between the Parties with respect to the subject matter herein and supersedes and cancels all previous agreements and negotiations thereof.
22.2This Agreement may be amended by the Parties only in writing by mutual consent.
22.3No forbearance, relaxation or inaction by any Party at any time to require the performance of any provision of this Agreement shall in any way affect, diminish or prejudice the right of such Party to require the performance of that or any other provision of this Agreement or be considered to be a waiver of any right, unless specifically agreed in writing.
22.4In the event of any provision of this Agreement being held or becoming invalid, unenforceable or illegal for any reason, this Agreement shall remain otherwise in full force apart from the said provision, which will be replaced with a legally valid provision that most nearly reflects the same purpose as that of the deleted provision.
22.5Any notice to be served by either Party shall be sent by registered mail acknowledgement due or reputed courier with acknowledgement at the following address:
14

						
	Licensor:	His Holiness Dr. Syedna Taher Saifuddin
Memorial Foundation
		
	Address:	Amatullah Manzil, 1st Floor,
65 Perin Nariman Street, Fort.
Mumbai 400001

		
	Kind Attn:	Dr. Shaikh Iqbal Bagasrawala
Trustee

		
	Licensee:	PubMatic India Private Limited
		
	Address:	6th Floor, Amar Paradigm,
Near O-mart, Baner Road
Pune, Maharashtra 411045

		
	Kind Attn:	Mr. Mukul Kumar
Co-Founder & Sr. Vice President

22.6The Original Agreement shall be retained by the Licensor and a certified copy shall be retained by the Licensee, both will be deemed as original.
22.7It is mutually agreed by and between the parties that” in the event of any change in applicable law pertaining to or affecting the Licensed Premises or part of the Licensed Premises, and which adversely affects the rights of the Licensor or the Licensee herein, or results in the license granted herein as affecting or altering the present rights or remedies of either the Licensor or the Licensee in law and/or under this Agreement, the Licensor and the Licensee shall negotiate and enter into a fresh license agreement on such terms and conditions as may be mutually agreeable.  If agreed by the Licensor and the Licensee, such fresh license agreement shall take effect immediately upon the execution thereof so as not to affect the use of the Licensed Premises by the Licensee.
22.8The Licensor and Licensee shall be equally liable to pay the stamp duty, legal and registration charges with respect to this Agreement.
15

SCHEDULE
Description of the Licensed Premises
Unit Nos. 601, 602, 603, 604, 605, 606, 607, 608, 609, 610, 611 and 612 in aggregate admeasuring 35,270 sq. ft. built up area on the 6th Floor of the building known as Amar Paradigm situated at amalgamated land from Hissa Nos. 11/3, 11, and 11/23 from Survey No. 110, Village Baner, Taluka Haveli, within the limits of Pune Municipal Corporation and more particularly shown in plan annexed hereto.
IN WITNESS WHEREOF THE PARTIES HAVE EXECUTED THIS AGREEMENT AS UNDER:
												
	LICENSOR			LICENSEE
				
	For His Holiness Dr. Syedna Taher
Saifuddin Memorial Foundation			PubMatic India Private Limited
				
	/s/ Dr. Shaikh Iqbal Bagasrawala			/s/ Mr. Mukul Kumar
				
	Dr. Shaikh Iqbal Bagasrawala
Trustee
			Mr. Mukul Kumar
Co-Founder & Sr. President

				
	Witnesses			
				
	(1) Name:		Signature:	
				
	(2) Name: 		Signature:	

16

RECEIPT
Received a sum of Rs. 1,29,09,552 (Rupees One Crore Twenty Nine Lakhs Nine Thousand Five Hundred and Fifty Two Only) as refundable interest free security deposit paid vide cheque / Demand draft bearing no ____ Dated __________________ Drawn IDBI bank.
We say received
His Holiness Dr. Syedna Taher Saifuddin Memorial Foundation
Dr. Shaikh Iqbal Bagasrawala
Trustee
17

His Holiness Dr. Syedna Taher Saifuddin
Memorial Foundation
A TRUE COPY OF CIRCULAR RESOLUTION DATED 08-02-2018 PASSED BY THE BOARD OF TRUSTEES OF HIS HOLINESS DR.SYEDNA TAHER SAIFUDDIN MEMORIAL FOUNDATION. 
The Trust has decided to give on Leave and Licence basis property situated at Amar Paradigm 6th Floor, Baner Road, Pune-411 045, to Pubmatic India Pvt. Ltd having its registered office at 6' Floor, Ammar Apex, Baner Road, Pune, Limited for a period of 35 months starting 03-03-2018. The said Leave and Licence Agreement needs to be register with the Sub registrar of Pune.
The Trust hereby authorize Dr. Shaikh Iqbal Bagasrawala to do all necessary formalities and compliance in connection with the registration of Leave and Licence Agreement entered into with Pubmatic India Private Limited for a period of 35 months starting 03-03-2018 as per the terms and condition laid down in the said agreement.
In the circumstance stated above, it is hereby resolved as follows:-
“RESOLVED that the consent of the Board of Trustees be and hereby accorded to register the Leave and Licence Agreement”.
"RESOLVED that Dr. Shaikh Iqbal Bagasrawala is hereby authorized to lodge the Leave and Licence Agreement with the Sub-Registrar of Assurance at Pune and to sign other related documents and paper which are required as law”.
In the circumstances stated above, it hereby resolved as follows:
			
	Certified True Copy
	
	For his Holiness Dr. Syedna Taher 
Saifuddin Memorial Foundation.
	
	TRUSTEE

18

CERTIFIED TRUE COPY OF THE RESOLUTION PASSED IN THE MEETING OF THE BOARD OF DIRECTORS OF PUBMATIC INDIA PRIVATE LIMITED HELD ON 08TH MAY, 2014 
			
	

Signing Authority for Mr. Mukul Kumar: 
"RESOLVED that Mr. Mukul Kumar be and hereby is, authorized to negotiate, finalize, execute, deliver and cause the performance of, in the name and on behalf of the Company, and under its corporate seal or otherwise, all such agreements, instruments, certificates and documents, including any notices and other documents required thereby, and any changes, modifications, amendments or supplements thereto, as in his judgment shall be necessary, proper or advisable in connection with the general business purposes and operations of the Company and to take all such steps and do or cause to be done all such acts, deeds and things as may be necessary, incidental or proper to give effect to. the transactions contemplated therein." 
Certified True Copy 
FOR PUBMATIC INDIA PRIVATE LIMITED
DIRECTOR
DIN – 06872512
19

SPECIAL POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS THAT WE.  His Holiness Dr. Syedna Taher Saifuddin Memorial Foundation.  Through their Trustee Dr. Shaikh Iqbal Bagasrawala Age about 65 years, Occupation: Doctor
Residing at - _________________
1.We are the Authorised Trustee of His Holiness Dr. Syedna Tahar Saifuddin Memorial Foundation under the Registered Charitable Trust No. ____________ having office at Amatullah Manzil, 35 Bazar Gate Street, Fort, Mumbai 400001.
2.That from time to time.  We cause to execute various agreement, deeds and documents in our personal capacity and also as an Authorised Trustee of His Holiness Dr. Syedna Tahar Saifuddin Memorial Foundation.
3.That cue to my Doctor occupation.  I am unable to personally remain present before the concerned Sub Registrar of Assurances and admit execution of the deeds and documents before the said office.
Now therefore I hereby appoint, nominate and contribute.
Mr. Conrad R. Francis, Age 43 years. Occu Service.  Having address at Robert ______ Chawl, Room No 11. Next to _______________________________________ Road __________ 400005.
20

PAN No. AAEPF 5005J
AS MY TRUE AND LAWFUL ATTORNEY, for us in our name and our Trust behalf to do execute and perform of cause to be done, executed and performed all of any of the following acts deeds and things.
1.To present and lodge in the office of the concerned Sub Regitrar and to appear before the concerned officers Sub Registrar and to admit in our Trust name and on our behalf execution of Agreements, Deeds and such other documents executed by us and to do all acts and things necessary for effectively registering the and Agreement.  Deeds Leave & License Agreement and Lease Deed etc.
2.To appear before the concerned revenue authorities and ____________ statements on oath or otherwise in respect of the execution of the said agreements, deeds and documents.
AND generally to do, execute and perform any other acts, deeds or things whatsoever as our attorneys may deem fit and proper as fully and effectually as we could have done ourselves if had we been present personally notwithstanding that no express powers or authority in that behalf is herein provided.
And we do hereby agree to ratify and o ratify and confirm all and whatsoever acts, deeds and things our attorney shall do, execute or perform or cause to be done, executed performed in exercise of the powers herein contained or otherwise ____________.
And the present power of attorney __________________ as such stamp duty of Pte. _______________________________.
21

IN WITNESS WHEREOF WE HAVE SIGNED THIS AT _________________________ 21st DAY OF NOVEMBER 2015.
						
		EXECUTANT

	Witness
	
		
		
	1.	
		
		
	2.	

22

PAN No. AAEPF5605J
AS MY TRUE AND LAWFUL ATTORNEY, for us in our name and our Trust behalf to do execute and perform or cause to be done, executed and performed all or any of the following acts, deeds and things.
1.To present and lodge in the office of the concerned Sub Registrar and to appear before the concerned officer/ Sub Registrar and to admit in our Trust name and on our behalf execution of Agreement, Deeds and such other documents executed by us and to do all acts and things necessary for effectively registering the said Agreements, Deeds Leave & License Agreement and Lease Deed etc.
2.To appear before the concerned revenue authorities and give statements on oath or otherwise in respect of the execution of the said agreements deeds and documents.
AND generally to do, execute and perform any other acts, deeds or things whatsoever as our attorneys may deem fit and proper as fully and effectually as we could have done ourselves if had we been present personally notwithstanding that no express powers or authority in that behalf is herein provided.
And we do hereby agree to ratify and do ratify and confirm all and whatsoever acts, deeds and things our attorney shall do, execute or perform or cause to be done performed in exercise of the in exercise of thing powers herein contained or otherwise done.
23

PAN No. AAEPF5605J
AS MY TRUE AND LAWFUL ATTORNEY, for us in our name and our Trust behalf to do execute and perform or cause to be done, executed and performed all or any of the following acts, deeds and things.
1.To present and lodge in the office of the concerned Sub Registrar and to appear before the concerned officer/ Sub Registrar and to admit in our Trust name and on our behalf execution of Agreement. Deeds and such other documents executed by us and to do all acts and things necessary for effectively registering the said Agreements, Deeds Leave & License Agreement and Lease Deed etc.
2.To appear before the concerned revenue authorities and give statements on oath or otherwise in respect of the execution of the said agreements deeds and documents.
AND generally to do, execute and perform any other acts, deeds or things whatsoever as our attorneys may deem fit and proper as fully and effectually as we could have done ourselves if had we been present personally notwithstanding that no express powers or authority in that behalf is herein provided.
And we do hereby agree to ratify and do ratify and confirm all and whatsoever acts, deeds and things our attorney shall do, execute or perform or cause to be done executed performed in exercise of the powers herein contained or otherwise done.
24Exhibit
4.1

 

THE
SECURITY REPRESENTED HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT AND SUCH STATE SECURITIES LAWS, OR AN EXEMPTION FROM REGISTRATION THEREUNDER.

 

PROMISSORY
NOTE

 

	$4,000,000.00	Scottsdale,
    Arizona
	 	November
    5, 2020

 

FOR
VALUE RECEIVED, the undersigned, ENLIGHT GROUP II, a Delaware limited liability company whose principal address is 7681 East Gray
Road, Scottsdale, Arizona (“EGII”), and AMMO, INC., a Delaware corporation whose principal address is 7681
East Gray Road, Scottsdale, Arizona 85260 (“AMMO”) (EGII and AMMO are individually and together referred to
herein as “Borrower”, as the context shall permit or allow), hereby promises to pay to the order of Lisa Kay,
an unmarried woman, whose principal address is 7430 E. Vista Dr., Scottsdale, Arizona 85250 (“Lender”), the
principal sum of Four Million & 00/100 Dollars ($4,000,000.00), plus interest thereon as set forth below, on or prior to the
Maturity Date (as defined in Section 1), in accordance with the terms and definitions set forth below.

 

1.
Definitions. As used in this Promissory Note (“Note”), the following terms shall have the following meanings:

 

“Bankruptcy
Default” means any Event of Default described in Sections 6.1(d), 6.1(e) or 6.1(f).

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which banks in Scottsdale, Arizona are required to
close.

 

“Closing
Date” shall mean November 5, 2020.

 

“Default”
means any act, event, condition or omission which, with the giving of notice or lapse of time, would constitute an Event of Default
if uncured or unremedied.

 

“Dollars”
means the lawful currency of the United States.

 

“Event
of Default” means the occurrence of any of the events described in Section 6.1 of this Note.

 

“Governmental
Authority” means any foreign, federal, state, municipal or other government, or any department, commission, board, bureau,
agency, public authority or instrumentality thereof or any court or arbitrator.

 

“Loan”
means the extension of credit made by Lender to Borrower evidenced by this Note.

 

    	 

     

    

 

“Maturity
Date” means November 5, 2023, or such earlier date on which the obligations under this Note become due and payable pursuant
to the terms hereof.

 

“Payment
Date” means the 10th day of each month of each fiscal year of Borrower; provided that if the 10th day of
a month is not a Business Day, the payment due on such date shall be due on the immediately preceding Business Day.

 

“Person”
means any natural person, corporation, limited liability company, joint venture, limited liability partnership, partnership, association,
trust or other entity or any Governmental Authority.

 

“Prepayment
Penalty” means the fee paid by Borrower to Lender for the payment in full of this Note prior to the Maturity Date which
shall be equal to any documented fees, costs or expense incurred by Lender as a result of the satisfaction in full of the corresponding
UBS credit facility Lender has utilized to fund the transaction described herein.

 

“Related
Documents” means this Note, any General Business Security Agreement thereafter executed, all as amended, restated, replaced,
supplemented or otherwise modified from time to time.

 

2.
Interest Rate; Default Rate; Late Fee.

 

2.1
Interest Rate. The interest rate to be applied to the unpaid principal balance of the Loan will be a per annum rate equal
to 12.0 percent per annum. Interest on this Note is computed on an Actual 360 basis; that is, by applying the ratio of the interest
rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal
balance is outstanding. All interest payable under this Note is computed using this method.

 

2.2
Default Rate. Notwithstanding the foregoing, upon the occurrence and during the continuance of an Event of Default, the
unpaid principal balance of the Loan and any accrued and unpaid interest shall bear interest at an annual rate (the “Default
Rate”) equal to the rate otherwise in effect under Section 2.1 plus 2.0 percentage points, payable upon demand. On and after
the Maturity Date, the unpaid principal balance of the Loan and all accrued interest thereon shall bear interest at the Default
Rate, payable upon demand.

 

2.3
Late Fee. If a payment is not made on or before the 15th day after its due date, Borrower will be charged 5.00%
of the unpaid portion of the regularly scheduled payment.

 

2.4
Maximum Rate of Interest. Nothing herein contained shall be deemed to require Borrower to pay or be liable for the payment
of interest upon the Loan in excess of the maximum legal rate of interest (if there be any maximum) allowable under the laws of
the State of Arizona. If for any reason interest in excess of the amount as limited in the foregoing sentence shall have been
paid hereunder, whether by reason of acceleration of this Note, payment of any penalty or premium, or otherwise, then and in that
event, any such excess interest shall constitute and be treated as a payment of principal hereunder and shall operate to reduce
the principal balance of the Loan by the amount of such excess, or if in excess of the then outstanding principal balance of the
Loan, such excess shall be refunded.

 

    	Page 2 of 7 
AMMO et al.-Kay Promissory Note

     

    

 

3.
Payments.

 

3.1
Interest Only. Borrower shall pay Lender all accrued interest (only) on a monthly basis, commencing on December 10, 2020
and each thirty (30) days thereafter (“Payment Date”), provided, that any remaining outstanding principal balance
of the Loan, together with all unpaid accrued interest thereon, shall be repaid in full on the Maturity Date.

 

3.2
Application of Payments. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued
unpaid interest; then to principal then to any unpaid collection costs; and then to any late charges. Borrower will pay Lender
at Lender’s address shown above or at such other place as Lender may designate in writing.

 

3.3
Early Payment. Borrower may pay all or a portion of the amount owed earlier than it is due. Early payments will not, unless
agreed to by Lender in writing, relieve the Borrower of its obligation to continue to make payments on this Note. Rather, early
payments will reduce the principal balance due and may result in Borrower making fewer payments. Borrower agrees not to send Lender
payments marked “paid in full”, “without recourse”, or similar language. If Borrower sends such a payment,
Lender may accept it without communications concerning disputed amounts, including any check or other payment instrument that
indicates that the payment constitutes “payment in full” of the amount owed or that is tendered with other conditions
or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: 7430 E. Vista Dr., Scottsdale, Arizona
85250.

 

4.
Prepayment. Borrower may prepay the Loan together with any accrued and unpaid interest thereon at any time in whole or
in part, subject to payment of the Prepayment Penalty as defined above.

 

5.
Representations and Warranties. To induce Lender to make the Loan, Borrower represents and warrants to Lender that:

 

5.1
Organization; Subsidiaries; Corporate Power. Borrower is a corporation or limited liability company, as applicable, duly
organized and validly existing under the laws of the State of Delaware.

 

5.2
Authorization and Binding Effect. The execution and delivery by Borrower of the Related Documents, and the performance
by Borrower of its obligations thereunder: (a) are within its power as a limited liability company and/or corporation, as applicable,
(b) have been duly authorized by proper action on the part of the governing body of Borrower, (c) are not in violation of any
Requirement of Law, the organizational or charter documents of Borrower or the terms of any agreement, restriction or undertaking
to which Borrower is a party or by which Borrower is bound, and (d) do not require the approval or consent of the holders of the
equity interests of Borrower, any Governmental Authority or any other Person, other than those obtained and in full force and
effect. The Related Documents, when executed and delivered, will constitute the valid and binding obligations of Borrower enforceable
in accordance with their terms, except as limited by bankruptcy, insolvency or similar laws of general application affecting the
enforcement of creditors’ rights and except to the extent that general principles of equity might affect the specific enforcement
of such Related Documents.

 

5.3
Accuracy of Information. All information, certificates or statements given to Lender pursuant to this Note shall be true
and complete when given.

 

    	Page 3 of 7 
AMMO et al.-Kay Promissory Note

     

    

 

6.
Events of Default, Acceleration and Remedies.

 

6.1
Events of Default. The occurrence of any of the following shall constitute an Event of Default under this Note:

 

(a)
Borrower fails to pay all or any portion of any amount due hereunder when the same becomes due and payable, whether at a stated
payment date or by acceleration, and such failure continues for ten days following Borrower’s receipt of Lender’s
written notice of such failure; or

 

(b)
any representation or warranty made herein is false in any material respect on the date as of which it is made or as of which
the same is to be effective; or

 

(c)
Borrower fails to comply with any term, covenant or agreement contained herein subject to any applicable grace period or cure
period; or

 

(d)
Borrower becomes insolvent or fails generally to pay debts as they become due; or

 

(e)
the taking of action by Borrower to become the subject of proceedings under the United States Bankruptcy Code; or the execution
by Borrower of a petition to become a debtor under the United States Bankruptcy Code; or the entry of an order for relief under
the United States Bankruptcy Code against Borrower; or Borrower making an assignment for the benefit of creditors; or Borrower
consenting to the appointment of a custodian, receiver, trustee or other officer with similar powers for it, or for any substantial
part of its property; or adjudicating of Borrower as insolvent; or

 

(f)
if any Governmental Authority of competent jurisdiction shall enter an order appointing, without consent of Borrower, as applicable,
a custodian, receiver, trustee or other officer with similar powers with respect to Borrower, or with respect to any substantial
part of Borrower’s property, or if an order for relief relating to Borrower shall be entered in any case or proceeding for
liquidation or reorganization or otherwise to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering
the dissolution, winding-up or liquidation of Borrower, or if any petition for any such relief shall be filed against Borrower
and such petition shall not be dismissed or stayed within 60 days; or

 

(g)
Any breach, violation, or default shall occur under any of the other Related Documents and shall continue beyond any applicable
notice and cure period set forth therein.

 

6.2
Acceleration. Upon the occurrence of:

 

(a)
any Bankruptcy Default, the unpaid principal balance of the Loan and all accrued and unpaid interest thereon at that time outstanding
automatically shall mature and become due, and

 

(b)
any other Event of Default, Lender, at any time, at its option, and without notice or demand, may declare the outstanding principal
amount of the Loan and all accrued and unpaid interest thereon, due and payable, whereupon such amounts immediately shall mature
and become due and payable, all without presentment, protest or notice, all of which hereby are waived.

 

    	Page 4 of 7 
AMMO et al.-Kay Promissory Note

     

    

 

6.3
Remedies. Upon the occurrence of any Event of Default, Lender, at its option, may enforce or cause to be enforced any of
the rights or remedies accorded to Lender at equity or law, by virtue of this Note, the other Related Documents, by statute or
otherwise.

 

7.
Miscellaneous.

 

7.1
Waivers. Borrower expressly hereby waives presentment for payment, protest and demand and notice of protest, demand, dishonor,
nonpayment, intent to accelerate and acceleration of this Note, and expressly agrees that this Note, or any payment hereunder,
may be extended from time to time before, at or after maturity, without in any way affecting the liability of Borrower.

 

7.2
Modifications. This Note may only be amended by an instrument in writing signed by the party against whom enforcement of
the change or amendment is sought.

 

7.3
Successors and Assigns. This Note shall be binding upon Borrower and upon Borrower’s successors and assigns, and
shall inure to the benefit of Lender and its successors and assigns; provided that Borrower’s rights under this Note are
not assignable without the prior written consent of Lender.

 

7.4
Severability. In the event that any provision of this Note is deemed to be invalid by reason of the operation of any law
or by reason of the interpretation placed thereon by any Governmental Authority, the validity, legality and enforceability of
the remaining terms and provisions of this Note shall not in any way be affected or impaired thereby, all of which shall remain
in full force and effect, and the affected term or provision shall be modified to the minimum extent permitted by law so as to
achieve most fully the intention of this Note.

 

7.5
Time of the Essence. Time for the performance of the obligations under this Note is of the essence.

 

7.6
Expenses. Borrower agrees to pay on demand (i) all out-of-pocket expenses incurred by Lender in connection with the administration,
amendment or enforcement of this Note and the other Related Documents including the reasonable fees and expenses of Lender’s
counsel, (ii) any taxes (including any interest and penalties relating thereto) payable by Lender on or with respect to the transactions
contemplated by this Note (Borrower hereby agreeing to indemnify Lender with respect thereto) and (iii) all out-of-pocket expenses,
including the reasonable fees and expenses of Lender’s counsel, incurred by Lender in connection with any litigation, proceeding
or dispute in any way related to Lender’s relationship with Borrower, whether arising hereunder or otherwise. The obligations
of Borrower under this paragraph will survive payment of this Note.

 

7.7
Governing Law. This Note shall be construed in accordance with and governed by the laws and decisions of the State of Arizona.

 

7.8
Setoff. No security is provided for this Note upon execution. However, Borrower represents, warrants and agrees that it
shall provide commercially reasonable collateral promptly upon the payment of that certain JSC Promissory Note A and JSC’s
contemporaneous release of security supporting that financial accommodation. In addition, Borrower agrees that Lender may, at
any time after the occurrence of an Event of Default, without prior notice, set off against any such credit balance or other money
all or any part of this Note, irrespective of whether Lender shall have made demand under this Note and although such obligations
may be contingent or unmatured.

 

    	Page 5 of 7 
AMMO et al.-Kay Promissory Note

     

    

 

7.9
Notices. All notices provided for herein shall be in writing and shall be (a) personally delivered or (b) sent by express
or first class mail; and, if to Lender, addressed to it at 7681 E. Gray Road, Scottsdale, Arizona 85260, attention: Fred Wagenhals,
Manager and, if to Borrower, addressed to it at 7681 East Gray Road, Scottsdale, Arizona 85260, attention: Rob Wiley (CFO) and
John Flynn, or to such other address with respect to any party as such party shall notify the others in writing; such notices
shall be deemed given when delivered, mailed or so transmitted.

 

7.10
Joint and Several. If Borrower is comprised of more than one Person, the obligations of such Persons under this Note and
the other Related Documents shall be joint and several.

 

7.11
Jury Waiver. BORROWER AND LENDER (BY ITS ACCEPTANCE HEREOF) HEREBY VOLUNTARILY,
KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED
UPON CONTRACT, TORT OR OTHERWISE) BETWEEN BORROWER AND LENDER ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE, ANY OTHER RELATED
DOCUMENT OR ANY RELATIONSHIP BETWEEN LENDER AND BORROWER. THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER TO PROVIDE THE FINANCING
DESCRIBED HEREIN.

 

7.12
Submission to Jurisdiction; Service of Process. ALL JUDICIAL PROCEEDINGS IN ANY MANNER RELATING TO OR ARISING OUT OF THIS
NOTE OR ANY OBLIGATIONS HEREUNDER MAY BE BROUGHT ONLY IN COURTS OF THE STATE OF WISCONSIN LOCATED IN MARICOPA COUNTY OR THE FEDERAL
COURT FOR THE DISTRICT OF ARIZONA (PHOENIX). BY EXECUTING AND DELIVERING THIS NOTE, BORROWER IRREVOCABLY:

 

(a)
ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS;

 

(b)
WAIVES ANY DEFENSE OF FORUM NON CONVENIENS;

 

(c)
AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, TO BORROWER AT ITS ADDRESS SET FORTH IN THE INTRODUCTORY PARAGRAPH OF THIS NOTE;

 

(d)
AGREES THAT SERVICE AS PROVIDED IN CLAUSE (c) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER BORROWER IN ANY SUCH PROCEEDING
IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND

 

(e)
AGREES THAT LENDER RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST BORROWER
IN THE COURTS OF ANY OTHER JURISDICTION.

 

    	Page 6 of 7 
AMMO et al.-Kay Promissory Note

     

    

 

IN
WITNESS WHEREOF, this Note has been executed and delivered by Borrower as of the date first set forth above.

 

	 	BORROWER:
	 	 
	 	ENLIGHT
    GROUP II, LLC
	 	 
	 	BY	/s/
    Fred Wagenhals
	 	Name:	Fred
    Wagenhals
	 	Title:	CEO
    of AMMO, Inc., sole member/manager
	 	 	 
	 	BY	/s/
    Rob Wiley
	 	Name:	Rob
    Wiley
	 	Title:	AMMO,
    Inc. Chief Financial Officer
	 	 	 
	 	AMMO,
    INC.
	 	 	 
	 	BY	/s/
    Fred Wagenhals
	 	Name:	Fred
    Wagenhals
	 	Title:	CEO
	 	 	 
	 	BY	/s/
    Rob Wiley
	 	Name:	Rob
    Wiley
	 	Title:	Chief
    Financial Officer

 

    	Page 7 of 7 
AMMO et al.-Kay Promissory Note

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}]]