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obligation, to purchase the Equipment (including Year 2 Equipment and Year 3 Equipment to be added to this Lease as set forth herein)as follows: (a) Upon completion of seventy percent (70%) of the Phase I Building Improvements as certified by the Lessee's architect, the Lessee may exercise an option to purchase one-half of the Year 1 Equipment having a purchase price of$1,500,000 for One Dollar($1.00). (b) Upon the receipt by the Lessee of a certificate of occupancy for the Phase I Building Improvements and hiring of at least twenty (20) full-time employees, the Lessee may exercise an option to purchase the remainder of the Year 1 Equipment for One Dollar($1.00). (c) Upon receipt by the Lessee of a certificate of occupancy for the Phase II Building Improvements, the Lessee may exercise an option to purchase the Year 2 Equipment for One Dollar($1.00). (d) Upon the Lessee having created 524 jobs and sustained that level of employment for two (2) annual reporting dates, January 31st of each year, and retained 40 jobs (representing the current number of employees at its facilities located in the City) (collectively, the "Employment Obligation"), the Lessee may exercise an option to purchase the Year 3 Equipment for One Dollar($1.00). Upon Lessee's payment in full of the option purchase price for each option to Lessor, title to the Equipment being purchased pursuant to said option shall pass to Lessee, and Lessor shall execute such bills of sale, assignments and other instruments and documents necessary to transfer title to the Equipment to Lessee. Notwithstanding the foregoing, in the event the Lessee shall not have met the Employment Obligation prior to the close of business on December 31, 2025 (the "Project Completion Date"), the purchase price for the Year 3 Equipment shall be the Default Amount as defined in Section 10 below which shall be due and payable by Lessee on said Project Completion Date. 10. Employment Obligation Default. During the term of this Lease and following completion of the Project, failure of the Lessee to satisfy the Employment Obligation, shall be deemed a default under the MOU and this Lease. If the Lessee does not satisfy the Employment Obligation prior to the Project Completion Date, the purchase price for the Year 3 Equipment shall be the sum of(i) One Million Dollars ($1,000,000) and (ii) an amount of money determined as follows: Three Million Dollars ($3,000,000) divided by 524 and multiplied by a number which represents the difference in the number of jobs actually created by the Lessee prior to the Project Completion Date and the 524 jobs that the Lessee expects to create prior to the Project Completion Date (the"Default Amount"). 11. Phase II Building Improvements Default. If the Lessee does not complete Phase II Building Improvements prior to the Project Completion Date, the Lessee agrees that it will enter into a new Equipment Lease on the Project Completion Date for the Year 2 Equipment having terms and conditions similar hereto,provided that the term of such Equipment Lease shall be five (5) years and the Lessee shall pay an annual rental of Two Hundred Thousand Dollars - 5 -