LANDLORD:

TENANT:

ARAME, LLC

CYGNUS TECHNOLOGIES, INC.

By: /s/ Robert Beckman                

By: /s/ Kenneth Hoffman        

Name: Robert Beckman

Name:

Its:      Member-Manager

Its:

Landlord and Tenant both acknowledge and agree that the Lease is currently in effect and that neither party is in breach or default of the Lease.

Landlord and Tenant hereby amend the Lease as follows:

Except as specifically amended hereinabove, the original terms and provisions of the Lease remain in full force and effect, and both Landlord and Tenant hereby affirm and consent to the Lease, as herein amended, and agree to be bound thereby.

This Lease Amendment can be recorded at the discretion of North Carolina and ARAME, LLC, or the parties can prepare a short form memorandum of this Lease Amendment which can be properly executed and recorded in the Register’s Office for Brunswick County, North Carolina.

All of the terms, covenants and conditions of the Lease as amended to date shall continue in full force and effect, and the same arc hereby reaffirmed, remade and rewritten, except to the extent that any such terms, covenants or conditions have been nullified hereby or

conflict or are inconsistent with the terms of this Amendment to Lease, in which event the terms of this Amendment to Lease shall, in all respects, govern and prevail.

/s/ Robert Beckman                

January 28, 2016

January 28, 2016

Date

TERM. The term of this Lease shall begin on the 1^st day of July, 2012, and shall end on the 31^st day of July, 2027, unless the beginning and ending dates of the Lease terms are advanced or delayed or unless the Lease term is further extended or earlier terminated under any applicable provisions of this Agreement. For purposes of this Agreement, the terms “commencement date” and “expiration date” shall be deemed respectively to be the dates specified herein above, as such dates may be so changed or modified.

PRORATIONS. All operating expenses for or pertaining to the Premises for utilities and assigned service contracts and agreements. If final readings are not possible, a final adjustment will be made within thirty (30) days after request thereof by Lessee or Lessor after receipt of the final bills. Lessee shall be responsible for making all arrangements for the continuation of utility service, including, but not limited to, changing the billing name for such service into the name of Lessee immediately upon commencement of the lease.

LEASE PAYMENT PROVISIONS and OPTION TO PURCHASE. The Lease payments shall be as follows:

LATE CHARGES. Lessee’s failure to pay Lease payments or any other amount payable hereunder promptly may cause Lessor to incur unanticipated costs, and the parties hereto agree that the exact amount

of such costs are impracticable or extremely difficult to ascertain. Such costs may include, but are not limited to, processing and accounting charges and late charges which may be imposed upon Lessor by any holder of a mortgage or security deed encumbering the Premises. Therefore, if Lessor does not receive payment of a Lease payment or any other amount payable hereunder with five (5) days of the due date, Lessee shall pay Lessor liquidated damages equal to five percent (5%) of such overdue amount. The parties agree that such late charge represents a reasonable good faith estimate of the costs and damages Lessor expects to incur by reason of any such late payment and shall in no event be construed to constitute a penalty.

INTEREST ON PAST DUE AMOUNTS. Any amount of Lease payments or any other amount owed by Lessee or Lessor hereunder which is not paid when due shall bear interest at the rate of six percent (6%) per month from the due date until such outstanding amount is paid. The payment of any such interest shall not, however, excuse or cure any default by Lessee under this Agreement. However, if the interest rate specified in this Agreement is at any time determined to be higher that the highest rate permitted by applicable law, the interest rate shall be reduced to the maximum interest rate permitted by law.

DEFAULT. The occurrence of one or more of the following events (herein called “Events of Default”) shall constitute a default by the Lessee:

Failure to pay lease payment when due;

Failure to perform any other provision of this Lease if the failure to perform is not cured within fifteen (15) days after notice thereof has been given to Lessee.

LESSOR’S REMEDIES UPON DEFAULT BY LESSEE. Lessor shall have the following remedies if Lessee commits a default. These remedies are not exclusive; they are cumulative in addition to any remedies now or later allowed by law.

Lessor shall have the right to continue this Lease in full force and effect, and the right to enter the Premises without notice to vacate (any right to which is hereby waived by Lessee) and relet them, changing any and all locks on the Premises all without being liable for forcible entry, trespass, or other tort. Lessee shall be liable immediately to Lessor for all costs Lessor shall incur in reletting the Premises and Lessee shall pay to Lessor the total Lease payments due under this Lease on the date that such payment is due, less the Lease payment Lessor receives from any reletting.

Lessor shall have the right to terminate this Lease without notice to vacate (any right to which is hereby waived by Lessee) and Lessee’s rights to possession of the Premises at any time, and re-enter the Premises and Lessor shall have the right to pursuer its remedies at law or in equity to recover of Lessee all amounts of Lease payments then due or thereafter accruing and such other damages as are caused by Lessee’s default.

WARRANTIES OF LESSOR. Lessor warrants and represent to Lessee that:

Lessor has received no notice from any governmental authority of zoning, environment, building, or fire violations with respect to the Premises.

Lessor has received no notice from any public authority of any eminent domain or condemnation proceedings conceding the Premises or any part thereof. Lessor further warrants that in the event it receives any such notice prior to the closing date, it will notice Lessee in writing prior to the closing.

Lessor is a Limited Liability Company organized and created under the laws of the State of North Carolina, and is in good standing.

Except as noted herein, Lessor warrants that it has the full right, power, and authority to enter into this Agreement, to perform it

obligations hereunder, and to execute and deliver this Agreement and all other documents to be executed and delivered by Lessor at closing in connection with the transaction contemplated herein. The representations and warranties set forth in this subparagraph shall be deemed to be renewed and restated at and as of the closing date. At closing, Lessor shall deliver to Lessee documentation evidencing the representations set forth herein.

Lessor warrants that the Lessee shall have an uninterruptable use of the property and the right to have quiet possession of the property. No act of omission or commission of the Lessor shall affect such right of Lessee.

MAINTENANCE AND REPAIR OBLIGATIONS.

Lessor hereby agrees, at Lessor’s sole cost and expense, to maintain, repair, restore, and replace all portions of the Premises, as necessary to keep the same in reasonably good order, condition and repair, ordinary wear and tear excepted including, but not limited to the roof, exterior walls, foundations, and structural portions of the Premises, including specifically the heating, ventilation and air-conditioning systems, equipment, and facilities. Lessor shall also maintain and repair the driveways, parking lots, and landscaped areas located on and surrounding the Premises.

Lessee hereby agrees at Lessee’s cost, to be responsible for interior maintenance of the Premises, including painting, repainting and redecorating, cleaning and replacement of carpeting and other similar maintenance.

ALTERATIONS, ADDITIONS, and IMPROVEMENTS. Lessee shall be responsible for all costs of construction and remodeling of the interior of the Premises, which includes any architectural and engineering fees. Lessee shall have the right to have interior work bid and performed by contractors of Lessee’s choice, subject to Lessor’s reasonable approval. All personal property including fixtures, soft

surface wall covering, panels, partitions and equipment placed in the Premise by Lessee shall remain the property of Lessee, whether or not physically attached to the premises, and Lessee may remove such property at any time, but Lessee shall be responsible for repairing any damage done to the Premises by such removal.

INSURANCE.

LIABILITY INSURANCE. At all times during the Lease term, Lessee shall maintain a policy of commercial general liability and umbrella insurance from an insurance carrier approved by Lessor. Lessee shall name Lessor and any mortgage holder as additional insured and loss payees under such policy. The amount of such insurance shall not be less than                             Dollars ($        ) per occurrence. The liability insurance obtained by Lessee under this Section shall, in addition to all other coverage, insure Lessor against Lessee’s performance of all indemnifications of Lessor provided under this Agreement to the extent that the matters giving rise to such indemnity result from the negligence of Lessee. The amount and coverage of such insurance shall not, however, limit Lessee’s liability nor relieve Lessee of any other obligations under this Agreement.

PROPERTY AND CASUALTY INSURANCE. At all times during the Lease term, Lessee shall maintain insurance covering loss of or damage to the Personal Property in the amount not less than                     Dollars ($                 ) (hereinafter referred to as the “Property Insurance”). Such property insurance shall contain the inflation guard endorsement and shall provide protection against all perils including in the classification of fire, extended coverage, vandalism, malicious mischief, special extended perils (all risks), sprinkler leakage, and other perils which Lessor deems reasonably necessary.

DESTRUCTION OR DAMAGE OF PREMISES. If the Premises are totally destroyed by storm, fire, lightning, or other casualty, then at the option of the Lessee, this Agreement shall terminate as of the date of such destruction, and payment of Lease payments shall be accounted for as between Lessor and Lessee as of that date. Such option to terminate this Agreement shall be exercised by the delivery

of written notice by Lessee or Lessor within thirty (30) days of the date of such destruction.

CONDEMNATION. If the whole of the Premises or such portion thereof as will render the Premises totally unusable for the purpose for which leased, shall be taken by any legally constituted authority for any public use or purpose in any eminent domain proceeding or any conveyance made in lieu thereof, then in either of said events, the lease term shall terminate as of the date when possession thereof is so taken by said public authority.

CONDITION UPON TERMINATION. Upon termination of this Agreement, Lessee shall surrender the Premises to Lessor broom clean and in the same condition as received. All alterations, additions and improvements to the Premises shall become Lessor’s property and shall be surrendered to Lessor upon the expiration or earlier termination of the Agreement, except as set forth in paragraph 10 above.

TERMINATION OF AGREEMENT. No termination of this Agreement prior to the scheduled expiration date hereof, by lapse of time or otherwise, shall affect Lessor’s right to collect the lease payments for the period prior to the termination thereof. Lessee covenants and agrees not to vacate the Premises or exercise any right of termination arising out of any breach by Lessor of any provision in this Agreement or relating to the condition or state of repair of the Premises. No surrender of the Premises or any part thereof by delivery of keys or otherwise shall operate to terminate this Agreement, unless and until such termination is expressly acknowledged in writing by the authorized officer of Lessor.

REAL-ESTATE AND PERSONAL PROPERTY TAXES. Lessor shall pay any and all ad valorem real property taxes with regard to the Premises for each calendar year during the Lease term (herein referred to as the “Real Estate Taxes”). Lessee shall pay any and all personal property taxes.

HAZARDOUS MATERIALS AND ENVIRONMENTAL LAWS. Lessee agrees that it will comply fully and promptly with any and all environmental laws, regulations, statutes, ordinances, policies, and orders issued by any Federal, state, county, or local governmental authority; that it will obtain, maintain in full force and effect, and strictly comply with any and all governmental permits, approvals and authorizations necessary for the conduct of its business operations; that it will supply Lessor with copies of any such permits, approvals and authorizations; and that it will promptly notify Lessor and supply Lessor with a copy of any notice of violations of any environmental law, regulation, statute, ordinance, policy, or order Lessor receives.

Lessee shall not place within the property any hazardous waste or materials as such materials are defined in RCRA, CERCLA (Super Fund), and North Carolina’s Oil Pollution and Hazardous Substances Control Act, or under any other statute, Federal regulation, state regulation or court interpretation of the same, except with the express consent of the Lessor. Lessor reserves the right to inspect the property for purposes of determining compliance with this paragraph. Should Lessee place hazardous materials or waste on property, he shall become solely responsible for the removal of same, and if Lessor incurs any liability either during the term of this lease and following the termination of same for the removal of hazardous waste or materials, or for damage caused by said hazardous waste or material placed on the premises by Lessee, the Lessee shall be solely responsible to Lessor for those damages, including, but not limited to, the cost of removing said materials and any penalties imposed for having materials on the site. Lessee agrees to indemnify and hold Lessor harmless in regard to any damages which may result from Lessee’s placing said materials on the Premises and for the acts referred to herein.

INDEMNITY. Lessee shall indemnify and save harmless Lessor from and against any and all claims, costs, expenses and/or liability for damages to persons, or property arising from or relating to the use or occupancy of the Premises by Lessee, the conduct of Lessee’s business or anything done or permitted to be done by Lessee in or about the Premises, or otherwise resulting from any breach or default

in the performance of Lessee’s obligations under this Agreement, including attorney’s fees and court costs. Lessor will similarly indemnify Lessee for any third-party liability claims for events occurring prior to the date of commencement.

UTILITIES. Lessee shall pay, directly to the appropriate utility supplier thereof, all utility bills relating to services rendered or supplied to the Premises or otherwise relating to Lessee’s use or occupancy thereof, including, but not limited to, bills of water, sewer, gas, electricity, fuel, garbage collection, and sanitary services.

ASSIGNMENT AND SUBLETTING. Lessee shall not assign this Agreement or any interest hereunder, or sublet the Premises or any part thereof, or permit the use of the Premises by any party other than Lessee, without first obtaining the prior written consent of Lessor, which consent shall not be unreasonably withheld.

SUBORDINATION. Lessee agrees that this Lease is and shall remain subject and subordinate to and may be assigned as security for any present and future mortgages or deeds or trusts which may now or hereafter affect such leases of the Premises and to and for all renewals, modifications, consolidations, replacements, and extensions thereof. This clause shall be self-operative and no further instrument shall be necessary by to effect such subordination; however, Lessee shall execute promptly and deliver to Lessor any such certificate or certificates in writing as Lessor may request evidencing the subordination of this Lease to or the assignment of this Lease as additional security for such mortgage or deed of trust.

USE OF PREMISES. The Premises shall not be used for any illegal purposes or in violation of any regulation of any governmental body, or in any manner so as to create any nuisance or trespass, or so as to vitiate any insurance or increase the rate of insurance on the Premises. Lessee shall not abandon or vacate the Premises during the lease term, and shall use the Premises for the purposes set forth herein above until the expiration date of earlier termination of this Agreement.

QUIET ENJOYMENT AND TRANSFER OF TENANTS. Lessor agrees that Lessee on paying the rent and performing all of the terms and conditions of this Lease shall quietly have, hold and enjoy the Premises for the term aforesaid subject to the terms of this Agreement and any underlying mortgage or deed to secure debt encumbering the Premises.

NOTICES. Any notice or demand which by any provision of this Agreement is required or allowed to be given by either party to the other shall be deemed to have been sufficiently given for all purposes when made in writing and sent in the United States Mail as certified or registered mail. Return receipt requested, postage prepaid and addressed:

If to Lessee, to

     Cygnus Technologies, Inc.

     % Kenneth Hoffman

     Southport, NC 28461

If to Lessor, to

     ARAME, LLC

     % Robert Beckman

     1205 Vanderhorst Place

     Wilmington, NC 28405

HEIRS AND ASSIGNS. The provisions of this Lease shall bind and inure to the benefit of Lessor and Lessee, and their respective successors, heirs, legal representatives, and assigns. It is understood and agreed, however, that the term “Lessor” as used in this Lease, means only the owner or the Lessor for the time being of the property, so that in the event of any sale or sales (including, without limitation, any judicial sale, any sale in foreclosure and any sale pursuant to a power of sale contained in a mortgage or deed of trust affecting all or any part of the building or the land) of said property or of any lease thereof, the Lessor named herein shall be and hereby is entirely freed and relieved of all covenants, and obligations of Lessor hereunder

accruing thereafter, and it shall be deemed without further agreement that the purchaser of the Premises, as the case may be, has assumed and agreed to carry out any and all covenants and obligations of Lessor hereunder during the period such party has possession of the Premises. Lessee shall from time to time upon request of Lessor execute and deliver to Lessor a certificate or certificates stating that this Lease is unmodified and in full force and effect or in full force and effect as modified and stating the modifications. Such certificates shall also state the amount of rent then in effect, the dates to which rent has been paid in advance, the amount of any security deposit and specify any default in Lessor’s performance claimed by Lessee.

END OF TERM, HOLDING OVER, AND ATTORNEY’S FEES. Upon the expiration of the term or other termination of this Lease, Lessee shall quit and surrender to Lessor the Premises, in the Premises’ original condition. If Lessee shall hold over after the expiration of the term or other termination of this Lease, such holding over shall not be deemed to be a renewal of this Lease but shall be deemed to create a tenancy-at-will and by such holding over Lessee shall be deemed to have agreed to be bound by all of the terms and conditions of this Lease except those as to the term hereof. If any rent or other sum owing under this Lease is collected by or through an attorney-at-law, Lessee agrees to pay Lessor’s reasonable attorney’s fee not in excess of fifteen percent (15%) (or if the statutes or other laws of the State of North Carolina in effect at the time of such collection limit the amount so payable as attorney’s fees, then the maximum percentage allowed by such laws or statutes) of the amount so collected.

INSPECTION. Lessor shall have the right to enter upon the Premises at any reasonable hour to inspect for compliance with the terms of this Lease. Lessor shall provide Lessee with notice of the inspection at least twenty-four (24) hours prior to such inspection.

ARBITRATION. Any disagreement between the parties with respect to the interpretation or application of this Lease or the obligations of the parties hereunder shall be resolved by arbitration. Such arbitration shall be conducted, upon request of either Lessor or Lessee, before a

single arbitrator designated by the American Arbitration Association and in accordance with the rules of that Association. The arbitrator designated and acting under this Lease shall make the award in strict conformity with such rules and shall have no power to depart from or change any of the provisions thereof. The expense of arbitration proceedings conducted hereunder shall be born equally by the parties. All arbitration proceedings hereunder shall be conducted in the county in which the leased premises are located. During the period of any dispute, the Lessee will continue to make all lease payments as due under the Agreement.

SEVERABILlTY. If any part of this Lease is determined to be unenforceable, the remainder of the Lease shall be unaffected.

INTEGRATION AND BINDING EFFECT. The entire Agreement, intent and understanding between Lessor and Lessee is contained in the provision of this Commercial Lease Agreement and any stipulations, representations, promises or agreements, written or oral, made prior to or contemporaneous with this Lease shall have no legal or equitable effect or consequence unless reduced to writing herein. This Lease shall be governed by and construed pursuant to the laws of the State of North Carolina.

LESSOR: ARAME, LLC

By: /s/ Robert Beckman        

Date:     June 7, 2012

TITLE:    Member

LESSEE: CYGNUS TECHNOLOGIES, INC.

BY:     /s/ Kenneth Hoffman        

Date:     June 7, 2012

TITLE:        President