Exhibit 10.7

LEASE AGREEMENTentered into by and betweenPARQUE INDUSTRIAL MEXICALI, S.A. DE C.V.,(hereinafter
referred to asPIMSA), herein represented byMR. EDUARDO MANUEL MARTINEZ PALOMERA,Party of the First
Part, and byCOASTCAST CORPORATION, S.A., (hereinafter referred to asCOMPANY), herein represented by MR. FERNANDO DIAZ CASTILLO,Party of the Second Part, pursuant to the followingRECITALSand CLAUSES:

R E C I T A L S

I. PIMSAhereby declares that:

A.It is a company organized and existing under the Mexican General Corporation Law, as per Public Instrument Number 20,032,
executed before Attorney Fernando Diaz Ceballos, Notary Public Number Four of the City of Mexicali, Baja California, Mexico.

B.Mr. Eduardo Manuel Martinez Palomera is its Attorney-In-Fact, as it appears in Public Instrument Number 31,019, Volume
569, executed on November 26, 1997, before Attorney Fernando Diaz Ceballos, Notary Public Number Four of the City of Mexicali, Baja California, Mexico.

C.PIMSA's registration number at the Federal Registry of Taxpayers is:
PIM-790807-D96.

D.The address at which it has its principal place of business is Avenida Galaxia Number 18-B, Mexicali Industrial Park I,
Mexicali, Baja California, Mexico.

E.PIMSAhas developed the Mexicali Industrial Park I, Mexicali Industrial
Park II, Mexicali Industrial Park III and the Mexicali Industrial Park IV. The Mexicali Industrial Park I, hereinafter referred to as the Industrial Park, is more specifically shown and described on Exhibit "A",which is attached hereto and made a part hereof.

F.The parties desire to enter into a Lease of Lots 5, 6, 7, 8, and a portion of Lots 4 and 9 of Block 5, the size of which
is 65,220.58 Square Feet (6,059.14 Square Meters, approximately), located in the Mexicali Industrial Park I, at Avenida Galaxia Number 50, and of certain improvements constructed on the land. The land
andPIMSA's Improvements together shall hereinafter be referred to as the Leased Property.

G.That it has previously applied for and obtained financial loans through Mexican and Foreign Banking and Lending
Institutions, with which funds, buildings and improvements located in the Industrial Parks have been, are being and will be constructed.

II. COMPANYhereby declares that:

A.It is a company organized under the Mexican General Corporation Law as per Public Instrument Number 28,658, Volume 478,
executed on January 26, 1994, before Attorney Fernando Diaz Ceballos, Notary Public Number Four of the City of Mexicali, Baja California, Mexico.

B.Mr. Fernando Diaz Castillo verifies his capacity as General Director of Operations and General Manager of COMPANYas per Public Instrument
Number 32,873, Volume 623, executed on August 07, 2001, before Attorney Fernando Diaz Ceballos R., Notary Public Number
Four of the City of Mexicali, Baja California, Mexico.

C.COMPANY's registration number at the Federal Registry of Taxpayers is:
CCO-821123-QA1.

D.The address at which it has its principal place of business is Calle Mercurio Number 30, Mexicali Industrial Park I,
Mexicali, Baja California, Mexico.

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Pursuant
to the above, the parties agree as follows:

C L A U S E S

I. SCOPE OF LEASE AGREEMENT.

On the express terms and conditions set forth hereinafter, the scope of this Lease Agreement is as follows:PIMSAhereby leases toCOMPANYandCOMPANYhereby leases from PIMSAthe land located in the Industrial Park as
described onExhibit "B",which is attached hereto and
made a part hereof, andPIMSA's Improvements as more specifically described hereinafter in this Lease Agreement.

II. CONSTRUCTION BY PIMSA.

A.PIMSAhas, at its expense, constructed on the land a Shell Building the
size of which is 36,520.53 Square Feet (3,392.84 Square Meters, approximately) which shall hereinafter be referred to asPIMSA's Improvements. Said PIMSA's
Improvements have been constructed in accordance with plans and specifications which have been approved by PIMSAandCOMPANYand such approval is hereby
acknowledged by the parties.

B.PIMSAhas constructed all PIMSA's Improvements in accordance with all laws, ordinances,
regulations, and orders of governmental authorities, and Industrial Park Regulations which
are attached hereto asExhibit "C". The term "Improvements" shall, depending on the context, refer to either "PIMSA's Improvements","COMPANY's Improvements" or both. The term
"COMPANY's Improvements" shall refer to those improvements identified in Clause III.A. below.

C.The Leased Property is considered Ready for Occupancy.

D.Upon prior written consent ofPIMSA, COMPANYmay at any time prior to the
commencement of the term hereof, at its sole risk, enter upon and install such trade fixtures and equipment in the Leased Property as it may elect; provided, however that COMPANYshall provide evidence
of insurance satisfactory toPIMSA.

III. INSTALLATIONS BY COMPANY.

A.COMPANYmay, at its expense, install on the Leased Property, such trade
fixtures, equipment and furniture as it may deem necessary; provided that such items are installed and are removable without damage to the structural integrity ofPIMSA's Improvements. Said trade
fixtures, equipment and furniture shall remainCOMPANY's property and unless COMPANYis in default hereunder, shall be removed byCOMPANYon or before the expiration date of the
term hereof.COMPANYmay also install temporary improvements in the interior ofPIMSA's Improvements
upon the Leased Property provided that suchCOMPANY's Improvements are installed and are removable without damage to the structure of the PIMSA's
Improvements. SuchCOMPANY's Improvements shall remain property of COMPANYand, unlessCOMPANYis in default
hereunder, shall be removed by COMPANYupon expiration of the term hereof or earlier termination of this Lease.COMPANYshall repair,
at its sole expense, all damage caused by the installation or removal of trade fixtures, equipment, furniture or temporaryCOMPANY's Improvements,
reasonable wear and tear excepted.

B.COMPANYshall perform all installations in accordance with all laws,
ordinances, regulations, orders of governmental authorities, and the Industrial Park Regulations which are attached hereto asExhibit "C".

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IV. LEASE TERM AND COMMENCEMENT DATE.

A.Lease Agreement.This Lease Agreement shall be effective from the Commencement Date
until the same is terminated as provided hereinafter, the complete period of tenancy being referred to herein as the "Lease Term".

B.Initial Lease Term.The initial term of this Lease ("Initial Term") shall commence
on
January 01, 2003, ("Commencement Date") and shall end on the last day of the fifth (5th) consecutive full Lease Year, as said term is hereinafter defined.

C.Lease Year.The term "Lease Year" as used herein, shall mean a period of twelve
(12)
consecutive full calendar months. The First Lease Year shall begin on the Commencement Date of the term hereof, if the Commencement Date of the term hereof shall occur on the first (1st.) day of a
calendar month; if not then the First Lease Year shall commence upon the first (1st.) day of the next calendar month following the Commencement Date of the term hereof. Each succeeding Lease Year
shall commence upon the anniversary date of the First Lease Year.

D.Option to Renew.COMPANYshall have
the right to extend the term of this Lease Agreement upon the terms, conditions and rentals set forth herein, for one (1) additional period of five (5) years, ("Extended term"), by giving written
notice toPIMSAnot less than six (6) months prior to the expiration of the Initial Term of this Lease Agreement, so long as COMPANYis not then in default
in payment of any installment on "Rent for the Initial Term", or "Rent for the Extended Term", as applicable, hereunder
or of any other obligation hereunder.

V. RENT.

A.Initial Term.As minimum payment for the Lease of the Leased Property during the
Initial Term hereof,COMPANYshall pay toPIMSAat the address of PIMSAstated above, as minimum rent
("Payment for the Initial Term") the amount of US$613,560.00 Dollars (Six Hundred Thirteen Thousand Five Hundred
Sixty 00/100 Dollars, Currency of the United States of America), plus ten percent (10%) of Value Added Tax, to be paid in full at the execution of this Agreement. However, COMPANYmay, exclusively for
the purpose of facilitating such payment, pay the referred amount in sixty (60) consecutive and successive monthly
installments as follows:



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B.Additional Payment to the "Payment for the Initial Term" or the "Payment for the Extended Term" as this later term is
hereinafter defined.With the exception of the income tax imposed uponPIMSA, and any tax associated with the Sale
or Transfer of the Leased Property orPIMSA's Improvements, which shall be
borne byPIMSA,COMPANYwill pay toPIMSA, as additional
rent, an amount equal to the sum of all taxes and assessments of every kind which are or may be at any time during the Initial Term or Extended Term, levied against the Leased Property or the Lease
Agreement, including but not limited to value added tax, property tax and all such taxes and assessments levied by any federal, state or municipal government, or any government authority. All such
taxes and assessments shall be paid byPIMSAand reimbursed byCOMPANYwithin ten (10) calendar days
after the receipt showing the payment thereof is presented toCOMPANYbyPIMSA.

In
calculating the amount ofCOMPANY's reimbursement, all taxes which shall become due for the first and last years of the Lease Term
shall be apportioned prorata betweenPIMSAandCOMPANYin accordance with the respective number of
months during which each party shall be in possession of the Leased Property.

C.Renewal Terms.



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D.Currency.COMPANYwill pay the rent
provided for in the above Paragraphs A and C in Dollars, Currency of the United States of America, or in Pesos, Mexican Currency, at the sale rate of

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exchange that Banco Nacional de Mexico, S. A. has in effect on the date such sums are paid, asPIMSAmay elect.

The
foregoing will not be considered to impede or hinderPIMSA's possibilities and rights under Clause XII to negotiate or assign this
Agreement to Mexican or Foreign Banking and Lending Institutions.

E.Proration.The installment for any partial month shall be prorated.

F.Damages.In the event this Lease Agreement is terminated by PIMSAdue to a default ofCOMPANY,PIMSAshall be
entitled to keep and retain as damages, all sums paid or deposited byCOMPANY, as "Payment for the Initial Term", or as the case may be, as "Payment for
the Extended Term" if such Payments were paid in full, and in the eventCOMPANYhas chosen to pay the "Payment for the Initial Term" or the "Payment for
the Extended Term" in monthly installments, to demand the payment in full of the main obligation consisting in the "Payment for the Initial Term", or, as the case may be, the "Payment for the Extended
Term", in addition to any other remedy available toPIMSAunder the terms of this Agreement.

G.Setoff.The payment of any "Payment for the Initial Term" or
"Payment for the Extended Term", or the payment of any monthly installment thereof under this Lease, shall not be withheld or reduced for any reason whatsoever, and COMPANYagrees to assert any claim,
demand, or other right againstPIMSAonly by an independent
proceeding.

VI. USE.

The Leased Property shall be used and occupied for any lawful industrial purpose not in violation of the Industrial Park Regulations attached hereto as Exhibit
"C".COMPANYshall promptly and adequately comply with all laws, ordinances and orders of all
governmental authorities affecting the Leased Property, and its cleanliness, safety and labor facilities applicable to theCOMPANY's use of the Leased
Property.COMPANYshall not perform or omit any acts that may damage the Leased Property, or be a nuisance, or menace to other occupants of the
Industrial Park.

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VII. INSURANCE.

A.Comprehensive Liability Insurance.During the Lease Term, COMPANYshall, at its own expense, obtain and maintain in full force a policy of comprehensive liability insurance including property damage, that
insuresCOMPANYandPIMSA(and such other agents or employees of PIMSA,PIMSA's subsidiaries or affiliates, orPIMSA's
assignees or any nominee ofPIMSAholding any interest in the Leased Property, including without limitation, the holder of any mortgage encumbering the
Leased Property) against liability for damage or injury to persons and property and for death of any persons occurring in or about the Leased Property. The liability to such insurance shall be in the
amount of US$100,000.00 Dollars (One Hundred Thousand Dollars 00/100, Currency of the United States of America).

B.Fire and Other Insurance.During the Lease Term, COMPANY at its sole expense, shall
obtain and maintain in full force, in the amount of US$1'045,000.00 Dollars (One Million Forty Five Thousand Dollars 00/100, Currency of the United States of America), or as modified herein , a policy
or policies of insurance, at replacement value, for fire, lightning, explosion, falling aircraft, smoke, windstorm, earthquake, hail, vehicle damage, volcanic eruption, strikes, civil commotion,
vandalism, riots, malicious mischief, debris removal, steam boiler or pressure object or machinery breakage if applicable, and flood insurance, on all the Leased Property, including but not limited to
the Shell Building,PIMSA's Improvements andCOMPANY's Improvements. COMPANYshall also obtain and maintain
annual rental insurance in the amount of the annual rent provided for herein in favor ofPIMSA.COMPANYshall be responsible for maintaining insurance on all of COMPANY's own property. Except for
insurance uponCOMPANY's property, PIMSAor its appointee shall be named theCOMPANY's beneficiary of any
and all proceeds from any such
policy or policies, as their interests may appear.

C.Form and Delivery of Policies.Each insurance policy referred to in the preceding
paragraph shall be in a form approved by the Department of Finance and Public Credit and written with one or more companies licensed to do insurance in Mexicali, Baja California, Mexico, and shall
provide that it shall not be subject to cancellation or change except after at least thirty (30) days prior written notice toPIMSAand prior written
approval fromPIMSA. The policies, or duly executed certificates for them, together with copies of receipts for payment of the premiums thereof, shall
be delivered toPIMSAprior to the Commencement Date of the Lease Term, as provided in Clause IV hereof; all documents verifying the renewal of such
policies shall be delivered toPIMSAat least thirty (30) days prior to the expiration of the term of such coverage. Prior to the Commencement Date of
the Lease Term, each
party shall procure and maintain such insurance covering its own liability and property as each deems appropriate.

D.Additional Insurance.COMPANYshall
obtain and maintain in full force and effect such additional amounts of insurance as may be required byPIMSA, from time to time, in accordance with the
provisions of this Clause VII, and in order to adequately and properly insurePIMSAof and for the then current replacement value of the Leased
Property.

E.Waiver of Subrogation.The parties release each other, and their respective
authorized representatives, from any claims for damage to any person or to the premises and to the fixtures, personal property, tenant's improvements, and alterations of either PIMSAorCOMPANYin or on the premises that are caused by or result from risks insured against under any
insurance policies carried by the parties and in force at the time of any such damage. If either party purchases insurance, the policy shall provide that the insurance company waives all right of
recovery by way of subrogation against either party in connection with any damage covered by any policy. If a party hereto cannot obtain such waiver of subrogation through reasonable efforts, it shall
obain insurance naming the other party as a coinsured under its policy in order to accomplish the intent of this provision.

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VIII. TAXES AND ASSESSMENTS.

COMPANYagrees to pay all taxes and assesments of every kind levied upon any and all personal property of COMPANY, its successors and assigns, whether same shall be or may become a lien upon the Leased Property. All such taxes and assessments shall be paid
byCOMPANYbefore the same become delinquent. In the event that this Contract is recorded at the Public Registry of Property, COMPANYshall pay all costs
of such recordation, including, but not limited to, notary fees, charges and taxes required in connection therewith.

IX. REPAIRS, ALTERATIONS AND IMPROVEMENTS.

A.PIMSA.



B.COMPANY.



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X. UTILITY SERVICES.

During the term of this Lease Agreement,COMPANYshall promptly pay for any and all public and other utilities and
related services furnished to the Leased Property, including but not limited to, water, gas, electricity and telephone charges.

In
order for theCOMPANYto be able to use the electrical capacity existing in the Leased Property as described in RIDER NUMBER I,COMPANYmust execute jointly withPIMSAand the Federal Electrical Commission (Comision Federal de Electricidad and/or CFE), an agreement by means of which all three (3) signature parties acknowledge that COMPANYwill be allowed to use the
KVA capacity available in the Leased Property, as mentioned inRIDER NUMBER
I, for its use whileCOMPANYpossesses the Leased Property as Lessee. This, as stated in this Clause, is not to be
misinterpreted as the possibility ofCOMPANYreceiving electricity up to the referred KVA free of charge from the CFE. COMPANYwill sign a similar
agreement at the end of the term of the Lease Agreement whereby the referred available capacity is returned to PIMSA, without any compensation due byPIMSA.

XI. RIGHT-OF-WAY.

PIMSAis hereby granted a right-of-way upon, across, over and under the Leased Property for ingress, egress,
installations, replacing, repairing and maintaining all utilities, including but not limited to water, gas, telephones and all electricity and any television or radio antenna system serving the Leased
Property. By virtue of this right-of-way it shall be expressly permissible for the providing electrical and/or telephone company to erect and maintain the necessary poles and other necessary equipment
on the Leased Property; provided that in exercising any rightPIMSAmay have under this Clause XI,PIMSAagrees to cause only a minimum interference withCOMPANY's use and possession of the Leased Property.

XII. ASSIGNMENT AND SUBLETTING.

A.COMPANYshall have the right, upon prior written notice to PIMSA, to assign or transfer this
Lease Agreement, or any interest therein, or permit the use of the Leased Property by any individual, corporation, or
entity, or sublease all or part of the Leased Property, provided, however, that in the event of any such assignment, transfer or sublease,COMPANYand
itsGUARANTORshall remain liable for all its obligations under this Lease Agreement.

B.PIMSAshall have the right to assign and reassign, from time to time, any
or all of the rights and obligations ofPIMSAin this Lease Agreement, or any interest therein, without COMPANY's consent, provided that no such assignment
or reassignment shall impair any of the rights of COMPANY

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herein, and provided further, thatPIMSAshall remain liable for all of its obligations under this Lease Agreement. In the event of an assignment or
reassignment,COMPANYshall not diminish or withhold any of the rents payable hereunder by asserting against such assignee any defense, setoff, or
counterclaims whichCOMPANYmay have againstPIMSAor any other person. COMPANYhereby specifically waives,
with respect to withholding of rent, any preventative measures to guarantee payment of a claim, as provided by the
Civil Code.

XIII. SUBORDINATION.

During the term of this Lease Agreement,PIMSAshall have the right to encumber its interest in the Leased
Property or in this Lease Agreement for any purpose it deems convenient, andCOMPANYshall and hereby does subordinate its interest in this Lease
Agreement and in the Leased Property to such encumbrance. However, in the event such encumbrance is foreclosed or judicially enforced, the
one who holds the encumbrance shall agree to honor this Lease Agreement and accept the performance byCOMPANYof its obligations hereunder. COMPANYshall
execute any agreement which may be required byPIMSAin confirmation of such subordination
and submit whatever public financial data may normally be requested by any trust, insurance company, bank or other recognized lending institution.

OncePIMSAshall have notifiedCOMPANYin writing that it has assigned its interest in
this Lease Agreement to any lending institution as security for a debt or other obligation ofPIMSA, PIMSAshall not have the power to amend this Lease
Agreement so as to reduce the rent, decrease the term or modify or negate any substantial obligation
ofCOMPANYhereunder, or to accept a rescission of this Contract, without the written consent of such lending institution. Such obligation shall
continue until the lending institution shall have notifiedCOMPANYin writing that such assignment has been terminated, on the understanding that if PIMSAfails to obtain such lending institution's approval to carry out the foregoing, the amendment of the term above mentioned shall have no effect
whatsoever as against such lending institution.

In
addition, if the lending institution should notifyCOMPANYin writing requiring the payment of rents hereunder directly to such lending
institution or its representative, thenCOMPANYshall be obligated to pay to such lending institution or its representative in the event the "Rent for
the Initial Term", or "Rent for the Extended Term", as applicable, is being paid in installments, each subsequent installment on rent, coming due under this Lease Agreement (together with any unpaid
installment then past due), until the date on which such lending institution notifiesCOMPANYauthorizing payment of rent to PIMSAor other party entitled
thereto.COMPANYunderstands and agrees that PIMSAmay not collect any rent more than one (1) month in advance andCOMPANY, at the request of PIMSA, shall provide a statement that no such advanced payment has been made; such document shall be binding upon COMPANYas against the lending institution to which this Lease Agreement may be assigned. In addition, the lending instutution shall not be bound to
recognize those payments made toPIMSAafter theCOMPANYhas received notice requiring payments to be
made to such lending institution.

XIV. ACCESS TO LEASED PROPERTY.

Without undue interference toCOMPANY's operation,PIMSAor its
authorized representative shall have the right to enter the Leased Property during allCOMPANYbusiness hours, and in emergencies at all times, to
inspect the Leased Property and to make repairs, additions, or alterations to the Leased Property. For a period commencing ninety (90) days prior to the termination of this Lease Agreement, PIMSAshall
have access to the Leased Property for the purpose of exhibiting it to prospective clients and may post usual for sale or for lease signs
upon the Leased Property. Except in case of emergency,PIMSAshall give notice toCOMPANYbefore
entering the Leased Property, andCOMPANYshall have the right to accompany any representatives ofPIMSAand prospective clients.

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XV. DAMAGE OR DESTRUCTION.

A.Total.In the event that the whole or a substantial part of the Leased Property is
damaged or destroyed by fire, act of nature, or any other cause, so as to makeCOMPANYunable to continue the operation of its business, PIMSAshall,
within fifteen (15) days from the date of release of the Leased Property by the corresponding authorities, determine whether the Leased
Property can be restored within six (6) months from the date of termination of the debris removal, which shall not exceed forty five (45) days as of the referred date of release, and notify COMPANYof
said determination. IfPIMSAdetermines that the Leased Property cannot be restored within
six (6) months, eitherPIMSAorCOMPANYshall have the right and option to immediately terminate this
Lease Agreement, by advising the other thereof by written notice, in which eventPIMSAwill reimburse COMPANYthe amount of the "Rent for the Initial Term",
 or "Rent for the Extended Term", as applicable, in the event these concepts were paid in full and
are not being paid in installments. IfPIMSAdetermines that the Leased Property can be restored within said six (6) months, PIMSAshall, at its own
expense, to the extent of the funds awarded toPIMSAfrom the proceeds of the
insurance required under Clause VII hereinabove, proceed diligently to reconstructPIMSA's Improvements, and in such event, PIMSAshall accept in the event
the "Rent for the Initial Term", or "Rent for the Extended Term", as applicable, is being paid in installments, in lieu
of the installment on rent payable during the period whenCOMPANYis substantially deprived of the use of the Leased Property, any rental insurance
proceeds which may be payable pursuant to rental insurance provided for hereinabove.

B.Partial.In the event the said damage caused to the Leased Property does not
prevent COMPANYfrom continuing the normal operation of its business on the Leased Property,PIMSAand COMPANYshall repair said damage, each party reconstructing that portion of the building and interior installations for which it was responsible during
the original construction; provided that excluding damage or destruction to the parking lot during the period required for such repair work ofPIMSA's
Improvements or the tenant improvements, rental payable hereunder byCOMPANYshall be equitably prorated to the proportioned interference with COMPANY's
use and possession of the Leased Property occasioned by such damage and repair, and in such event, PIMSA, in the event the "Rent for the Initial Term", or "Rent for the Extended Term", as applicable, is
being paid in installments, shall accept in lieu
of the pertinent installments to the rent payable hereunder, during the period whenCOMPANYis partially deprived of the use and possession of the
Leased Property, any rental insurance proceeds attributable to rent which may be payable pursuant to said insurance provided for hereinabove.

XVI. LIMITATION OF LIABILITY.

Except for intentional or negligent acts or omissions ofPIMSA, its agents or employees, PIMSAshall not be liable toCOMPANYor to any other person whatsoever for any loss or damage of any
kind or nature caused by the intentional or negligent acts or omissions ofCOMPANYor other occupants of the Industrial Park or of adjacent property, or
the public, or other causes beyond the control ofPIMSA, including but not limited to, any failure to furnish, or any interruption of any utility or
other services in or about the Leased Property.COMPANYrecognizes that additions, replacements, and repairs to the Industrial Park will be made from
time to time, provided that the same shall not substantially interfere withCOMPANY's use and enjoyment of the Leased Property.

XVII. INDEMNIFICATION.

COMPANYagrees to indemnify and savePIMSAharmless from any and
all claims for damages or losses of any nature whatsoever, arising from negligent act or omission ofCOMPANYor its contractors, licensees, agents,
invitees, or employees, or arising from any accident, injury or damage whatsoever caused to any person or property occurring in or about the Leased Property, or the areas adjoining the Leased Property
and from and against all costs and expenses, including attorneys' fees, incurred thereby.

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PIMSAagrees to indemnify and saveCOMPANYharmless from any and all claims for damages or
losses of any nature whatsoever, arising from negligent act or omission ofPIMSAor its contractors, licensees, agents, invitees, or employees, or
arising from any accident, injury or damage whatsoever caused to any person or property occurring in or about the Leased Property, or the areas adjoining the Leased Property and from and against all
costs and expenses, including attorneys' fees, incurred thereby.

XXIII. NOTICES.

All notices under this Lease Agreement shall be forwarded to the addresses mentioned in theRECITALSabove, with a
copy to theGUARANTORof this Lease Agreement, or such other addresses as may from time to time be furnished by the parties hereto. Said notices shall
be in writing and if mailed, shall be deemed given ten (10) days after the date of mailing thereof. Duplicate notices shall be sent by certified airmail, postage prepaid, to such additional addresses
as may from time to time be requested in writing by the parties hereto.

XIX. COMPANY'S DEFAULT.

A.Each of the following shall be a default ofCOMPANY:



B.In addition to the above, each of the following shall be considered a default of the COMPANY, if there is in respect toGUARANTOR:



C.Upon occurrence of any one of the foregoing defaults,PIMSAshall have the
right, at its option, and in addition to other rights or remedies granted by law, including the right to claim damage, to do either of the following:



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XX. RIGHT TO CURE DEFAULTS.

In the event ofCOMPANY's breach or default of any term or provision herein, PIMSAmay,
without any obligation to do so, at any time after ten (10) days written notice, cure such breach or default, or make repairs to the Leased
Property, for the account and at the expense ofCOMPANY. IfPIMSA, by reason of such breach or default,
pays any money, or is compelled to incur any expense, including attorney's fees, the sums so paid or incurred byPIMSAwith all interest, costs, and
damages, shall be paid byCOMPANYtoPIMSAon the first (1st.) day of the month following the incurring
of such expenses. If any installment of rent or any other payment is not promptly paid when due, it shall bear interest of twenty percent (20%) per annum from the date on which it becomes due until
paid; but this provision is not intended to relieve theCOMPANYfrom fulfilling its obligations hereunder in the time and in the manner specified in
this Agreement. The foregoing interest, expenses and damages shall be recoverable fromCOMPANYby exercise of PIMSA's remedies hereinabove set forth.
Efforts byPIMSAto mitigate the damages caused byCOMPANY's breach of this Lease shall not be construed to be a waiver of PIMSA's right to recover damages under this
Clause XX. Nothing in this Clause XX affects the right of PIMSAto indemnification byCOMPANYin accordance with Clause XVII hereinabove for liability
arising
prior to the termination of this Lease for personal injuries or property damage.

XXI. WAIVER.

In the eventPIMSAorCOMPANYdoes not compel the other to comply
with any of the obligations hereunder, such action or omission shall not be construed as a waiver of a subsequent breach of the same or any other provision. Any consent or approval shall not be deemed
to waive or render unnecessary the consent or approval of any subsequent or similar act byCOMPANYor PIMSA.

XXII. CERTIFICATES.

COMPANYshall, within ten (10) days of receipt of a written request made by PIMSA, deliver
toPIMSAa statement in writing certifying that this Lease Agreement is unmodified and in
full force and effect (or if there have been modifications, that the same are in full force and effect as modified); the dates to which the rent and any other charges have been paid, and that PIMSA's
Improvements have

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been satisfactorily completed. It is intended that any such statement may be relied upon by any person, prospective purchaser, or lending institution interested in the Leased Property.

XXIII. HOLDING OVER.

IfCOMPANYshould remain in possession of the Leased Property after the expiration of this Lease, COMPANYshall pay a minimum monthly rent equal to twice the then installment on rent then paid, in the event the "Rent for the Initial Term", or "Rent
for the Extended Term", as applicable, was paid in installments, untilCOMPANYhas delivered toPIMSAthe Leased Property, or executed a new Lease Agreement. This provision shall not be construed as granting any right toCOMPANYto remain in possession
of the Leased Property after the expiration of the Lease Term.COMPANYshall indemnifyPIMSAagainst any
loss or liability resulting from delay byCOMPANYin surrendering the Leased Property, if such loss or liability is founded on said delay. The parties
agree thatCOMPANYshall quit and surrender the Leased Property at the expiration of this Lease Agreement, waiving the right provided by law.

XXIV. SURRENDER.

On the last day of the term of this Lease Agreement, or the sooner termination thereof pursuant to other provisions hereof, COMPANYshall
quit and surrender the Leased Property in the same conditions as received byCOMPANY, and
restore the premises to a clean and good condition (normal wear and tear excepted) together withPIMSA's Improvements that may have been made in the
same. Prior to termination of this Lease Agreement,COMPANYshall have removed all of its property in accordance with Clause III hereof and all property
not removed shall be deemed abandoned byCOMPANYand ifCOMPANYabandoned or is hereby deemed to have
abandoned its property,PIMSA, at its option, but atCOMPANY's expense, shall proceed to remove all of
theCOMPANY's property, and its case, warehouse, also atCOMPANY's expense, such removed property with a
third party supplier of such warehousing services.COMPANYshall repair and restore the Leased Property to a good and clean condition, normal wear and
tear excepted, while removing theCOMPANY's property.

XXV. QUIET ENJOYMENT.

PIMSAagrees thatCOMPANY, upon paying the "Rent for the Initial
Term", or "Rent for the Extended Term", as applicable, and all other charges provided for herein and upon complying with all of the terms and provisions of this Lease Agreement, shall lawfully and
quietly occupy and enjoy the Leased Property during the Lease Term.

XXVI. ATTORNMENT.

COMPANYshall, in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the
power of sale under, any mortgage or deed of trust made byPIMSA, its successors or assigns, encumbering the Leased Property, or any part thereof, if so
requested, attorn to the purchaser upon such foreclosure or sale and recognize such purchaser as the Lessor under this Lease.

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XXVII. ENVIRONMENTAL PROTECTION LAW.

PIMSAhereby states that the Leased Property, its soil and underground are free and clear of any hazardous
materials, wastes or contaminants. Nevertheless,PIMSAshall indemnify and save theCOMPANYharmless
from and against losses, demands, claims, payments, suits, actions and judgments of any nature and description brought against it by reason of the fact that contaminants existed on the Leased
Property, soil and/or underground, or were deposited there, prior to November 01, 1988. TheCOMPANYwill be responsible for any losses, damages or
injuries caused by the contaminants which were deposited by theCOMPANYon the Leased Property, soil or underground after November 01, 1988.

It
will be the sole responsibility of theCOMPANYto comply with all Federal, State or Municipal environmental laws, rules and
dispositions, which must be complied with by theCOMPANYpursuant with the industrial activities it will perform in the Leased Property and therefore,
must obtain the required licenses, authorizations, permits and any other document that it must possess pursuant with the aforestated environmental rules.

Furthermore,
theCOMPANYwill be solely and exclusively responsible for any demand, claim, or proceeding initiated against PIMSA, and which results from acts or
omissions by theCOMPANY, or its employees, agents, invitees, or
contractors, regarding the handling of hazardous or toxic materials or wastes located in or moved to, from or through the Leased Property. TheCOMPANYin these cases, shall indemnify and savePIMSAharmless from and against losses, demands, claims, payments, suits and actions, including judgments of
any competent environmental authority.

XXVIII. MISCELLANEOUS.

A.This document contains all of the agreements and conditions made between the parties, and may not be modified orally in
any manner other than by a written agreement signed by the authorized representative of the parties.

B.If any term, covenant, condition or provision of this Lease Agreement, or the application thereof to any person or
circumstance, shall to any extent be held by a court of competent jurisdiction, to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions or provisions of this Lease
Agreement, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

C.In the event that either party should bring an action against the other party for the possession of the Leased Property,
or for the recovery of any sum due hereunder, or because of the breach or default of any covenant in this Lease Agreement, the prevailing party shall have the right to collect from the other party its
costs and expenses, including attorneys' fees.

D.Every payment and performance required by this Lease Agreement, shall be paid and performed precisely on the date
specified for such payment or performance and no delay or extension thereof shall be permitted.

E.The titles and subtitles in these Clauses of this document shall have no effect on the interpretation of the terms and
provisions contained in this Lease Agreement.

F.The parties agree that this Lease Agreement will be governed by the Laws of the State of Baja California, Mexico. For
everything pertaining to the interpretation and compliance of this Lease Agreement the parties thereby expressly submit to the jurisdiction of the Civil Courts of the City of Mexicali, State of Baja
California, Mexico, waiving any other jurisdiction which might be applicable by reason of their present or future domiciles or otherwise.

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G.This Lease Agreement shall be executed in Spanish and English. However, in the event a dispute or other inconsistency
should arise regarding interpretation or meaning of this Lease Agreement, the English version shall control.

H.Whenever the prior consent of either party, written or otherwise, is required as a condition for any act by the other
party under this Lease Agreement, such party agrees not to arbitrarily or unreasonably withhold such consent.

I.Each party shall execute such further documents as shall be requested by the other party, but only to the extent that the
effect of said documents is to give legal effect to rights set forth in this Lease Agreement.

J.COMPANYhereby covenants to PIMSA, andPIMSArelies upon said covenant as a material inducement to enter into this Lease, that COMPANYwill deliver toPIMSA, concurrently with the execution and
delivery hereof a Guaranty of this
Lease in the form attached hereto asExhibit "D", executed byCOASTCAST CORPORATION, or by such other GUARANTORas may be acceptable toPIMSA.

K.Submission of this instrument for examination or signature byCOMPANYdoes
not constitute a reservation of or option to Lease, and it is not effective as a Lease or otherwise until execution and delivery by bothPIMSAand COMPANY.

L.This Lease and each of its covenants and conditions shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns, subject to the provisions hereof. Whenever in this Lease Agreement a reference is made toPIMSA,
such reference shall be deemed to refer to the person in whom the interest of the Lessor hereunder shall be vested. Any successor or assignee ofCOMPANYwho accepts an assignment or the benefit of this Lease Agreement and enters into possession or enjoyment hereunder shall thereby assume and agree to perform and be bound by the covenants and
conditions hereof.

M.In the event the Government of Mexico or any subdivision thereof appropriates, forcibly buys or in any other way takes
over the assets or business of the Lessee, and without due cause byCOMPANYpreventsCOMPANYfrom doing
business in Mexico, theCOMPANYmay upon written notice toPIMSAterminate this Lease Agreement without
liability or penalty for such termination and without further liability for rental payments due under this Lease Agreement by without prejudice to the rights of PIMSAandCOMPANYto claim from the corresponding authority the damages caused.

XXIX. RIDER NUMBER I, PIMSA'S IMPROVEMENTS.

Attached hereto asRIDER NUMBER I, is a description ofPIMSA's
Improvements and by this reference are made a part hereof.

XXX.The parties agree that the "Rent for the Initial Term", or "Rent for the Extended Term", as applicable, are the amounts so defined in
this Lease, regardless ifCOMPANYwas granted option to pay in installments.

XXXI.This Lease Agreement is in lieu of Lease Agreement dated December 16, 1998.

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IN WITNESS WHEREOF, the parties have executed this Lease Agreement as of the twentieth day of december of two thousand and two.

|PIMSA:                                         |  | COMPANY:                                                                       
|---------------------------------------------- |  | -------------------------------------------------------------------------------
|PARQUE INDUSTRIAL MEXICALI,S . A . D E C . V . |  | COASTCAST CORPORATION, S.A.                                                    
|By:                                            |  | /s/ Eduardo ManuelMr. Eduardo Manuel
Martinez Palomera
Executive Vice President
|W I T N E S S E S                             
|By:                                            |  | /s/ Francisco FiorentiniMr. Francisco Fiorentini
Manager                       

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