EXHIBIT 10.8



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| |  | *** |  | CERTAIN CONFIDENTIAL             
| |  |     |  | INFORMATION CONTAINED IN THIS    
| |  |     |  | DOCUMENT (INDICATED BY           
| |  |     |  | ASTERISKS) HAS BEEN OMITTED      
| |  |     |  | AND FILED SEPARATELY WITH THE    
| |  |     |  | SECURITIES AND EXCHANGE          
| |  |     |  | COMMISSION PURSUANT TO A         
| |  |     |  | REQUEST FOR CONFIDENTIAL         
| |  |     |  | TREATMENT UNDER 17 C.F.R.        
| |  |     |  | SECTIONS 200.80(B)(4), 200.83 AND
| |  |     |  | 230.406.                         

LOGO AIR COMMERCIAL REAL ESTATE ASSOCIATION

STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE 
NET



(DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)



1.Basic Provisions (Basic Provisions).



1.1 Parties: This Lease
(Lease), dated for reference purposes only 12/29/2004, is made by and between DBI Retail Ventures, LLC, or its assigns (Lessor) and Barbeques Galore, Inc. a California corporation (Lessee),
(collectively the Parties, or individually a Party).



1.2 Premises: That certain real property, including all improvements therein or to be provided by Lessor under the terms of this Lease, and commonly known as 1401 Tar Heel Road, located in the County of
Mecklenburg, State of North Carolina, and generally described as (describe briefly the nature of the property and, if applicable, the Project, if the property is located within a Project) 80,000 s.f. Single Tenant Industrial
Building, located on approximately 5.476 acres. (Premises). (See also Paragraph 2)



1.3 Term: Ten (10) years and Two (2) months (Original Term) commencing 01/15/2005 (Commencement Date) and
ending 02/28/2015 (Expiration Date). (See also Paragraph 3)



1.4 Early Possession: See Below ** (Early Possession Date). (See also Paragraphs 3.2 and 3.3)



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|** | Provided that Lessor possesses Title to the Premises, Lessee shall take possession of the Premises (subject to this Lease) on the later of (A) January 15th, 2005, or 24-hours after
Lessor provides Lessee notice that the Premises is available.
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1.5 Base Rent: *** per month (Base Rent), payable on the 1st day of each month commencing 03/01/2005. (See also Paragraph 4)



x If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted.



1.6 Base Rent and Other Monies Paid Upon Execution:



(a) Base Rent: *** for the period
03/01/2005-02/28/2010.



(b) Security Deposit: ***
(Security Deposit). (See also Paragraph 5)



(c) Association Fees: *** for the period ***



(d) Other: ***



(e)
Total Due Upon Execution of this Lease: ***.



1.7
Agreed Use: Distribution Warehouse. (See also Paragraph 6)



1.8 Insuring Party: Lessor is the Insuring Party unless otherwise stated herein. (See also Paragraph 8)



1.9 Real Estate Brokers: (See also Paragraph 15)



(a) Representation: The following real estate brokers (the Brokers) and brokerage relationships exist in this transaction (check
applicable boxes):



 ̈represents Lessor exclusively (Lessors Broker);



 ̈represents Lessee exclusively (Lessees Broker);or



|*** | Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.
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 ̈represents, both Lessor and Lessee (Dual Agency).



(b) Payment to Brokers: Upon execution and delivery of this
Lease by both Parties, Lessor shall pay to the Broker the fee agreed to in their separate written agreement (or if there is no such agreement, the sum of N/A or N/A % of the total Base Rent) for the brokerage services rendered by the Brokers.



1.10 Guarantor. The obligations of the Lessee under
this Lease are to be guaranteed by Barbeques Galore, Ltd. (Guarantor). (See also Paragraph 37)



1.11 Attachments. Attached hereto are the following, all of which constitute a part of this Lease:



 ̈an Addendum consisting of Paragraphs  through  ;



 ̈a plot plan depicting the Premises;



 ̈a current set of the Rules and Regulations;



 ̈a Work Letter;



x other (specify): Addenda - Lessors Work and
Lessees Work; Arbitration Agreement; Rent Adjustment (s); Option to Extend; Lessors Liability; Guaranty of Lease; Site Plan; Office Plan.



2. Premises.



2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the
terms, covenants and conditions set forth in this Lease. Unless otherwise provided herein, any statement of size set forth in this Lease, or that may have been used in calculating Rent, is an approximation which the Parties agree is reasonable and
any payments based thereon are not subject to revision whether or not the actual size is more or less. Note: Lessee is advised to verify the actual size prior to executing this Lease.



2.2 Condition. Lessor shall deliver the Premises to Lessee broom clean
and free of debris on the Commencement Date or the Early Possession Date, whichever first occurs (Start Date),and, so long as the required service contracts described in Paragraph 7.1(b) below are obtained by Lessee and in
effect within thirty days following the Start Date, warrants that the existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems (HVAC), loading doors, sump pumps, if any, and all
other such elements in the Premises, other than those constructed by Lessee, shall be in good operating condition on said date and that the structural elements of the roof, bearing walls and foundation of any buildings on the Premises (the
Building) shall be free of material defects. If a non-compliance with said warranty exists as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period, Lessor
shall, as Lessors sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance,
malfunction or failure, rectify same at Lessors expense. The warranty periods shall be as follows: (i) (ii) 30 days from the date that Lessor delivers possession to Lessee. If Lessee does not give Lessor the required notice within the
appropriate warranty period, correction of any such non-compliance, malfunction or failure shall be the obligation of Lessee at Lessees sole cost and expense. Lessor shall deliver the building, mechanical equipment, roof, structure, plumbing
and electrical service in good working order. Lessee shall inspect the building upon turnover and sign-off on acceptability or provide the Lessor with a written list of items to be completed. At Lessees option, Lessor shall have any of the
reports, that Lessor obtains certified to Lessee. Lessor assign any and all existing warranties to Lessee. Lessee shall have the option of having any inspection report and all warrantees that Lessor acquires certified to Lessee. Lessor shall have
the repair/replacement obligations as set forth herein. Notwithstanding any obligation that Lessor may have to repair or replace, Lessor shall not have any obligation to perform any inspection of the premises for any reason whatsoever. Lessee shall
have the obligation to monitor the premises and advise Lessor of the need to make any repairs or replacements, provided that such repairs or replacements are Lessors responsibility under the lease. Lessor shall substantially complete Lessors
Work before February 15, 2005.



2.3 Compliance. Lessor
warrants that the improvements on the Premises comply with the building codes, applicable laws, covenants or restrictions of record, regulations, and ordinances (Applicable Requirements)that were in effect at the time that each
improvement, or portion thereof, was constructed. Said warranty does not apply to the use to which Lessee will put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of
Lessees use (see Paragraph 50), or to any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for determining whether or not the Applicable Requirements, and
especially the zoning, are appropriate for Lessees intended use, and acknowledges that past uses of the Premises may no longer be allowed.If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided,
promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify the same at Lessors expense. If Lessee does not



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give Lessor written notice of a non-compliance with this warranty within 6 months following the Start Date, correction of that non-compliance shall be the
obligation of Lessee at Lessees sole cost and expense. If the Applicable Requirements are hereafter changed so as to require during the term of his Lease the construction of an addition to or an alteration of the Premises and/or Building, the
remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Unit, Premises and/or Building (Capital Expenditure), Lessor and Lessee shall allocate the cost of such work as follows:



(a) Subject to Paragraph 2.3(c) below, if such Capital
Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however that if such Capital Expenditure is
required during the last 2 years of this Lease and the cost thereof exceeds 6 months Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within 10 days after receipt of Lessees termination notice
that Lessor has elected to pay the difference between the actual cost thereof and an amount equal to 6 months Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital
Expenditure and deliver to Lessor written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises without
commencing such Capital Expenditure.



(b) If such Capital
Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor shall be obligated to pay for such costs pursuant to the provisions of Paragraph 7.1(d);
provided, however, that if such Capital Expenditure is required during the last 2 years of this Lease or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have the option to terminate this
Lease upon 180 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 days after receipt of Lessors termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate,
and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with Interest, from Rent until Lessors share of such costs have been fully paid. If Lessee is unable to finance Lessors share,
or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the right to terminate this Lease upon 30 days written notice to Lessor.



(c) Notwithstanding the above, the provisions concerning Capital Expenditures
are intended to apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modification to
the Premises then, and in that event, Lessee shall either: (i) immediately cease such changed use or intensity of use and/or take such other steps as may be necessary to eliminate the requirement for such Capital Expenditure, or (ii) complete such
Capital Expenditure at its own expense. Lessee shall not, however, have any right to terminate this Lease.



2.4 Acknowledgements. Lessee acknowledges that: (a) it has been advised by Lessor and/or Brokers to satisfy itself with respect to the condition of
the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for
Lessees intended use, (b) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, and (c) neither Lessor,
Lessors agents, nor Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no representations,
promises or warranties concerning Lessees ability to honor the Lease or suitability to occupy the Premises, and (ii) it is Lessors sole responsibility to investigate the financial capability and/or suitability of all proposed tenants.



3.Term.



3.1 Term. The Commencement Date, Expiration Date and Original Term of
this Lease are as specified in Paragraph 1.3.



3.2 Early
Possession. If Lessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early possession. All other terms of this Lease (including but not limited to
the obligations to pay Real Property Taxes and insurance premiums and to maintain the Premises) shall, however, be in effect during such period. Any such early possession shall not affect the Expiration Date.



3.3 Delay In Possession. Lessor agrees to use its best commercially
reasonable efforts to deliver possession of the Premises to Lessee by the Early possession Date. If, despite said efforts, Lessor is unable to deliver possession by January 31, 2005. Lessee shall be entitled to terminate this lease upon 10-days
written notice to Lessor. Lessor shall not be required to complete the work described in this lease as a condition to delivering possession. However, Lessor shall complete the work as is required in the Lease.



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3.4 Lessee Compliance. Lessor shall not be required to deliver possession of the Premises to
Lessee and this Lease shall not be subject to the early termination provision in 3.3 above until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to
perform all of its obligations under this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessors election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required
to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold possession until such conditions are satisfied.



4.Rent.



4.1 Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be
rent (Rent).



4.2 Payment. Lessee
shall cause payment of Rent to be received by Lessor in lawful money of the United States on or before the day on which it is due, without offset or deduction (except as specifically permitted in this Lease). Rent for any period during the term
hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from
time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessors rights to the balance of such Rent, regardless of Lessors endorsement of any check so stating. In the
event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future
payments to be made by Lessee to be by cashiers check. Payments will be applied first to accrued late charges and attorneys fees, second to accrued interest, then to Base Rent and Operating Expense Increase, and any remaining amount to
any other outstanding charges or costs.



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6.Use.



6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably comparable thereto,
and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Lessor shall
not unreasonably withhold or delay its consent to any written request for a modification of the Agreed Use, so long as the same will not impair the structural integrity of the improvements on the Premises or the mechanical or electrical systems
therein, and/or is not significantly more burdensome to the Premises. If Lessor elects to withhold consent, Lessor shall within 7 days after such request give written notification of same, which notice shall include an explanation of Lessors
objections to the change in the Agreed Use.



Lessee shall be entitled to
conduct a warehouse sale directly outside the Premises no more than two times in any twelve month period. Such warehouse sales shall be conducted in accordance with all applicable laws. Lessee can use the vacant portion of the property and the
parking lot to park vehicles and trucks overnight; Lessee assumes 100% of any liability arising therefrom.



6.2 Hazardous Substances.



(a) Reportable Uses Require Consent. The term Hazardous Substance as used in this Lease shall mean any product, substance, or
waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the
environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous
Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use
of Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessees expense) with all Applicable Requirements. Reportable Use shall mean (i) the installation or use of any above or
below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be
filed with, any governmental authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring
properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, ordinary office supplies (copier toner, liquid paper, glue, etc.) and common
household cleaning materials, so long as such use is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor
to any liability therefor. In addition, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment against
damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security
Deposit.



(b) Duty to Inform Lessor. If Lessee knows, or
has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor, and provide
Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance.



(c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises
(including through the plumbing or sanitary sewer system) and shall promptly, at Lessees expense, comply with all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered
or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous
Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party.



(d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless from
and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys and consultants fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee,
or any third party (provided, however, that Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties not caused or contributed to by Lessee).
Lessees obligations shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or
abatement, and shall survive the expiration or termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous
Substances, unless specifically so agreed by Lessor in writing at the time of such agreement.



(e) Lessor Indemnification. Lessor and its successors and assigns shall indemnify, defend, reimburse and hold Lessee, its



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employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which result from Hazardous Substances
which existed on the Premises prior to Lessees occupancy or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessors obligations, as and when required by the Applicable Requirements,
shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. To Lessors; knowledge there are no hazardous materials,
PCBs, asbestos or adverse soils conditions affecting the Property in violation of applicable laws. Not withstanding anything to the contrary contained in this Lease, Lessors liability for any act, omission, or other obligation under the
lease shall not exceed the value of Lessors interest in the property.



(f) Investigations and Remediations. Lessor shall retain the responsibility and pay for any investigations or remediation measures required by governmental entities having jurisdiction with respect to the
existence of Hazardous Substances on the Premises prior to Lessees occupancy, unless such remediation measure is required as a result of Lessees use (including Alterations, as defined in paragraph 7.3(a) below) of the
Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessors agents to have reasonable access to the Premises at
reasonable times following, 24 hours notice, to carry out Lessors investigative and remedial responsibilities.



(g) Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is
legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessors rights under
Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessors option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessors expense, in which event this Lease shall
continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of
knowledge of the occurrence of such Hazardous Substance Condition, of Lessors desire to terminate this Lease as of the date 180 days following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within
10 days thereafter, give written notice to Lessor of Lessees commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or $100,000,
whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such
remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified
in Lessors notice of termination.



6.3 Lessees
Compliance with Applicable Requirements. Except as otherwise provided in this Lease, Lessee shall, at Lessees sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of
any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessors engineers and/or consultants which relate in any manner to the such Requirements, without regard to whether such Requirements are now in effect or
become effective after the Start Date. Lessee shall, within 10 days after receipt of Lessors written request, provide Lessor with copies of all permits. and other documents, and other information evidencing Lessees compliance with any
Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or
involving the failure of Lessee or the Premises to comply with any Applicable Requirements.



6.4 Inspection; Compliance. Lessor and Lessors Lender (as defined in Paragraph 30) and consultants shall have the right to enter into Premises at any time, in the case of an emergency,
and otherwise at reasonable times after 24-hours notice, for the purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation
of Applicable Requirements, or a Hazardous Substance Condition (see paragraph 9.1) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for
the cost of such inspection, so long as such inspection is reasonably related to the violation or contamination. In addition, Lessee shall provide copies of all relevant material safety data sheets (MSDS) to Lessor within 10 days of the receipt of a
written request therefor. Lessor, in performing any inspections, shall not unreasonably interfere with Lessees use of the Premises.



7.Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations.



7.1 Lessees Obligations.



(a) In General. Subject to the provisions of Paragraph 2.2 (Condition), 6.3 (Lessees Compliance with Applicable
Requirements), 7.2 (Lessors Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessees sole expense, keep the Premises, Utility Installations (intended for Lessees exclusive use, no matter where
located), and Alterations in good order, condition and repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and



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whether or not the need for such repairs occurs as a result of Lessees use, any prior use, the elements or the age of such portion of the Premises),
including, but not limited to, all equipment or facilities, such as plumbing, HVAC equipment, electrical, lighting facilities, boilers, pressure vessels, fire protection system, fixtures, non-structural walls (interior and exterior), ceilings, roof
drainage systems, floors, windows, doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks and parkways located in, on, or adjacent to the Premises Lessee, in keeping the Premises in good order,
condition and repair, shall exercise and perform good maintenance practices, specifically including the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessees obligations shall include restorations,
replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair. Lessee shall, during the term of this Lease, keep the exterior appearance of the Building in a
first-class condition (including, e.g. graffiti removal) consistent with the exterior appearance of other similar facilities of comparable age and size in the vicinity, including, when necessary, the exterior repainting of the Building.



(b) Service Contracts. Lessee shall, at Lessees sole expense,
procure and maintain contracts, with copies to Lessor, in customary form and substance for, and with contractors specializing and experienced in the maintenance of the following equipment and improvements, if any, if and when installed on the
Premises: (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire extinguishing systems, including fire alarm and/or smoke detection, (iv) landscaping and irrigation systems, (v) roof covering and drains, (vi) clarifiers (vii) basic
utility feed to the perimeter of the Building, and (viii) any other equipment, if reasonably required by Lessor. However, Lessor reserves the right, upon notice to Lessee, to procure and maintain any or all of such service contracts, and if Lessor
so elects, Lessee shall reimburse Lessor, upon demand, for the cost thereof.



(c) Failure to Perform. If Lessee fails to perform Lessees obligations under this Paragraph 7.1, Lessor may enter upon the Premises after 10 days prior written notice to Lessee (except in the case
of an emergency, in which case no notice shall be required), perform such obligations on Lessees behalf, and put the Premises in good order, condition and repair, and Lessee shall promptly pay to Lessor a sum equal to 115% of the cost
thereof.



(d) Replacement. Subject to
Lessees indemnification of Lessor as set forth in Paragraph 8.7 below, and without relieving Lessee of liability resulting from Lessees failure to exercise and perform good maintenance practices, if an item described in Paragraph 7.1(b)
cannot be repaired other than at a cost which is in excess of 50% of the cost of replacing such item, then such item shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay,
each month during the remainder of the term of this Lease, on the date on which Base Rent is due, an amount equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which
is 144 (ie. 1/144th of the cost per month). Lessee shall pay interest on the unamortized balance at a rate that is commercially reasonable in the judgment of Lessors accountants, which shall not exceed 10%. Lessee may, however, prepay its
obligation at any time.



7.2 Lessors Obligations.
Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14 (Condemnation), it is intended by the Parties hereto that Lessor shall be responsible for the roof, foundation and structural portions of the
building only and have no obligation, in any manner whatsoever, to repair and maintain the Premises, or the equipment therein, all of which obligations are intended to be that of the Lessee. It is the intention of the Parties that the terms of this
Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises, and they expressly waive the benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease.



Lessor shall provide for repairs or replacements to such extent such repairs
or replacements are Lessors responsibility under the Lease, within a reasonable period of time after Lessee provides Lessor with reasonable evidence that such repair or replacement is necessary.



7.3 Utility Installations; Trade Fixtures; Alterations.



(a) Definitions. The term Utility Installations
refers to all floor and window coverings, air and/or vacuum lines, power panels, electrical distribution, security and fire protection systems, communication cabling, lighting fixtures, HVAC equipment, plumbing, and fencing in or on the Premises.
The term Trade Fixtures shall mean Lessees machinery, fixtures, racking, and equipment that can be removed without doing material damage to the Premises. The term Alterations shall mean any modification of
the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. Lessee Owned Alterations and/or Utility Installations are defined as Alterations and/or Utility Installations made by Lessee
that are not yet owned by Lessor pursuant to Paragraph 7.4(a).



(b) Consent. Lessee shall not make any non-structural Alterations or Utility Installations to the Premises without Lessors prior written consent, which will not to be unreasonably withheld. Lessee may, however, make
non-structural Alterations and/or Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating or
removing the roof or any existing walls, will not affect the electrical, plumbing, HVAC, and/or life safety systems,



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and the cumulative cost thereof during any Lease year does not exceed $60,000. Notwithstanding the foregoing, Lessee shall not make or permit any roof
penetrations and/or install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or
Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessees: (i) acquiring all applicable
governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt
and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. Upon lease
termination, Lessor may require Lessee to return the premises to its original condition at the beginning of lease term, reasonable wear and tear excepted. Lessor has the right to disapprove any structural alterations at its sole and absolute
discretion, and Lessee shall pay Lessors commercially reasonable cost of obtaining any engineering reports that Lessor deems necessary in making an evaluation of any structural alteration that Lessee proposes.



(c) Liens; Bonds. Lessee shall pay, when due, all claims for labor or
materials furnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanics or materialmens lien against the Premises or any interest therein. Lessee shall
give Lessor not less than 10 days notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or
demand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor shall
require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount of such contested lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay
Lessors attorneys fees and costs.



7.4
Ownership; Removal; Surrender; and Restoration.



(a) Ownership. Subject to Lessors right to require removal or elect ownership as hereinafter provided, all Alterations and Utility installations made by Lessee shall be the property of Lessee, but considered a part of the
Premises. Lessor may, at any time, elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and
Utility Installations shall, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises.



(b) Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior to the end of the term of
this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease. Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations
or Utility Installations made without the required consent.



(c) Surrender; Restoration. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating
order, condition and state of repair, ordinary wear and tear excepted. Ordinary wear and tear shall not include any damage or deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing, if
this Lease is for 12 months or less, then Lessee shall surrender the Premises in the same condition as delivered to Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation,
maintenance or removal of Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee. Lessee shall completely remove from the Premises any
and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via underground migration from areas outside of the Premises, or if applicable, the Project) even if such
removal would require Lessee to perform or pay for work that exceeds statutory requirements. Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration
Date or any earlier termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without
the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below.



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8. Insurance; indemnity.



8.1 Payment For Insurance. Lessee shall pay for all insurance required under Paragraph 8 except to the extent of the
cost attributable to liability insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence and a $5,000,000 annual aggregate. Premiums for policy periods commencing prior to or extending beyond the Lease term shall be
prorated to correspond to the Lease term. Payment shall be made by Lessee to Lessor within 10 days following receipt of an invoice.



8.2 Liability Insurance.



(a) Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting Lessee and Lessor as an
additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an
occurrence basis providing single limit coverage in an amount not less than $2,000,000 per occurrence with an annual aggregate of not less than $5,000,000, an Additional Insured-Managers or Lessors of Premises Endorsement and contain the
Amendment of the Pollution Exclusion Endorsement for damage caused by heat, smoke or fumes from a hostile fire and shall have a maximum $25,000 deductible. The policy shall not contain any intra-insured exclusions as between insured
persons or organizations, but shall include coverage for liability assumed under this Lease as an insured contract for the performance of Lessees indemnity obligations under this Lease. The limits of said insurance shall not,
however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. All insurance carried by Lessee shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess
insurance only.



(b) Carried by Lessor. Lessor shall
maintain liability insurance as described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein.



8.3 Property Insurance - Building, Improvements and Rental Value.



(a) Building and Improvements. The Insuring Party
shall obtain and keep in force a policy or policies in the name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full replacement
cost of the Premises, as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof. If Lessor is the Insuring Party, however, Lessee
Owned Alterations and Utility Installations, Trade Fixtures, and Lessees personal property shall be insured by Lessee under Paragraph 8.4 rather than by Lessor. If the coverage is available and commercially appropriate, such policy or policies
shall insure against all risks of direct physical loss or damage (except the perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the
upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation,
and inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the
Premises are located. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $25,000 per occurrence, and Lessee shall be liable for such deductible amount in the event of an Insured Loss.



(b) Rental Value. The Insuring Party shall obtain and keep in force a
policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an additional 180 days (Rental Value insurance). Said insurance
shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable by Lessee, for the next 12 month period. Lessee shall be liable for
any deductible amount in the event of such loss.



(c)
Adjacent Premises. If the Premises are part of a larger building, or of a group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building
or buildings if said increase is caused by Lessees acts, omissions, use or occupancy of the Premises.



8.4 Lessees Property; Business Interruption Insurance.



(a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessees personal property,
Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $25,000 per occurrence. The proceeds from any such insurance shall be used by Lessee
for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee shall provide Lessor with written evidence that such insurance is in force.



(b) Business Interruption. Lessee shall obtain and maintain loss of
income and extra expense insurance in amounts as will reimburse Lessee for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access
to the Premises as a result of such perils.



(c) No
Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance specified herein are adequate to cover Lessees property, business operations or obligations under this Lease.



8.5 Insurance Policies. Insurance required herein shall be by
companies duly licensed or admitted to transact business in the state



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where the Premises are located, and maintaining during the policy term a General Policyholders Rating of at least B+, V, as set forth in the most
current issue of Bests Insurance Guide, or such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance policies. Lessee shall, prior to the Start
Date, deliver to Lessor certified copies of policies of such insurance or certificates evidencing the existence and amounts of the required insurance. No such policy shall be cancelable or subject to modification except after 30 days prior written
notice to Lessor. Lessee shall, at least 30 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or insurance binders evidencing renewal thereof, or Lessor may order such insurance and charge the cost
thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and
maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure and maintain the same. Notwithstanding the preceding sentence, any umbrella policy is subject to the approval of Lessor lender, at such
lenders sole and absolute discretion and if Lessors Lender does not approve of Lessees Umbrella policy, the Lessee shall obtain other insurance policies in compliance with the Lease.



8.6 Waiver of Subrogation. Without affecting any other rights or
remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be insured against
herein. The effect of such releases and waivers is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to
subrogation that such companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not invalidated thereby.



8.7 Indemnity. Except for Lessors and its agents, employees and contractors gross negligence or willful misconduct, Lessee shall indemnify,
protect, defend and hold harmless the Premises, Lessor and its agents, Lessors master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys and
consultants fees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing
matters, Lessee shall upon notice defend the same at Lessees expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or
indemnified. Lessor shall indemnify, protect, defend and hold Lessee, its officers, directors, shareholders, agents, employees, representatives, successors and permitted assigns harmless from and against all claims, actions, damages, liabilities,
costs and expenses (including attorneys fees and costs) in connection with: (a) any loss of life, personal or bodily injury and/or damage to property arising from or out of any occurrence, in or upon the Premises, occasioned wholly or in part
by the gross negligence or willful misconduct of Lessor or its agents, employees and contractors; and (b) any breach or default by lessor under the Lease.



8.8 Exemption of Lessor from Liability. Lessor shall not be liable, unless Lessor is grossly negligent or performs willful misconduct, for injury
or damage to the person or goods, wares, merchandise or other property of Lessee, Lessees employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from
fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage
results from conditions arising upon the Premises or upon other portions of the building of which the Premises are a part, or from other sources or places. Lessor shall not be liable for any damages arising from any act or neglect of any other
tenant of Lessor.



8.9 Failure to Provide Insurance.
Lessee acknowledges that any failure on its part to obtain or maintain the insurance required herein will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely
difficult to ascertain. Accordingly, for any month or portion thereof that Lessee does not maintain the required insurance and/or does not provide Lessor with the required binders or certificates evidencing the existence of the required insurance,
the Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater. The parties agree that such increase in Base Rent represents fair
and reasonable compensation for the additional risk/ costs that Lessor will incur by reason of Lessees failure to maintain the required insurance. Such increase in Base Rent shall in no event constitute a waiver of Lessees Default or
Breach with respect to the failure to maintain such insurance, prevent the exercise of any of the other rights and remedies granted hereunder, nor relieve Lessee of its obligation to maintain the insurance specified in this Lease.



9.Damage or Destruction.



9.1 Definitions.



(a) Premises Partial Damage shall mean damage or
destruction to the improvements on the Premises, other than Lessee





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Owned Alterations and Utility Installations, which can reasonably be repaired in 4 months or less from the date of the damage or destruction. Lessor shall
notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total.



(b) Premises Total Destruction shall mean damage or destruction to the Premises, other than Lessee Owned Alterations and Utility
Installations and Trade Fixtures, which cannot reasonably be repaired in 4 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or
not the damage is Partial or Total.



(c) Insured
Loss shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in
Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved.



(d) Replacement Cost shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including
demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction for depreciation.



(e) Hazardous Substance Condition shall mean the occurrence or discovery of a condition involving the presence of, or a contamination
by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises which requires repair, remediation, or restoration.



9.2 Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessors expense, repair
such damage (but not Lessees Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in full force and effect; provided, however, that Lessee shall, at Lessors
election, make the repair of any damage or destruction the total cost to repair of which is $50,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose.
Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds (except as to the deductible which is
Lessees responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no
obligation to pay for the shortage in insurance proceeds or to fully restore the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within 10 days following receipt of written notice of such shortage
and request therefor. If Lessor receives said funds or adequate assurance thereof within said 10 day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force
and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in
proceeds, in which case this Lease shall remain in full force and effect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or
destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made
by either Party.



9.3 Partial Damage - Uninsured Loss.
If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessees expense), Lessor may either: (i) repair such damage as soon as
reasonably possible at Lessors expense, in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of
such damage. Such termination shall be effective 60 days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written notice
to Lessor of Lessees commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment. In such event
this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as
of the date specified in the termination notice.



9.4 Total
Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, and Lessee cannot reasonably operate its business during the period of repair, as set forth in paragraph 9.6(c); the lease shall terminate 60 days
following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessors damages from Lessee, except as provided in Paragraph 8.6.



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9.5 Damage Near End of Term. In the last year of the Lease, if there is damage to the building
that is not proximity caused by Lessee that cannot be repaired within a three month period, then Lessee shall have the right to terminate the Lease. However, this provision shall not apply if Lessee has exercised any extension option.



9.6 Abatement of Rent; Lessees Remedies.



(a) Abatement. In the event of Premises Partial Damage or Premises
Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to
the degree to which Lessees use of the Premises is impaired, but not to exceed the proceeds that Lessor receives from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no
liability for any such damage, destruction, remediation, repair or restoration except as provided herein.



(b) Remedies. If Lessor shall be obligated to repair or restore the Premises and does not commence, in a substantial and meaningful way, such
repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of
Lessees election to terminate this Lease on a date not less than 30 days following the giving of such notice. If Lessee gives such notice and such repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate as
of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect. Commence shall mean either the unconditional authorization of the preparation
of the required plans, or the beginning of the actual work on the Premises, whichever first occurs.



(c) Notwithstanding any provision of this Paragraph 9 to the contrary, in the event: (i) of any Premises Partial Damage where Lessees warehouse
business is still Operational, Lessor shall use commercially reasonable efforts to commence the repair and restoration as soon as possible and to diligently pursue such work to its completion; or (ii) of any Premises Partial Damage where
Lessees warehouse business in the Premises is not Operational, and Lessor does not complete its repair and restoration work within 6 months following the casualty event, Lessee shall have the right to terminate this Lease upon 30
days written notice to Lessor, provided that if Lessor completes its work within such 30 day period, the termination shall be deemed void.



For the purposes of this Paragraph 9.6(c), Operational shall mean that all of the following conditions exist at the Premises within 30 days following the
casualty event: (i) the portion of the Premises left for Lessees use is deemed to be safe for occupancy by the local governing authorities; (ii) utilities, telephone and computer access are still available in the Premises; (iii) Lessees
trucks and containers can access the loading areas of the Premises; (iv) at least 50% of the loading areas of the Premises, including all docks, ramps, lifts and doors, are undamaged; (v) Lessee can use at least 40,000 square feet of the Premises
for storage, shipping and receiving of merchandise; and (vi) the undamaged portions of the Premises can be secured from the outside and from all portions of the Premises where repair and reconstruction work is being done.



9.7 Termination; Advance Payments. Upon termination of this Lease
pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessees Security
Deposit as has not been, or is not then required to be, used by Lessor.



9.8 Waive Statutes. Lessor and Lessee agree that the terms of this Lease shall govern the effect of any damage to or destruction of the Premises with respect to the termination of this Lease and hereby waive the provisions of
any present or future statute to the extent inconsistent herewith.



10. Real
Property Taxes.



10.1 Definition. As used
herein, the term Real Property Taxes shall include any form of assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes); improvement
bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Premises or the Project, Lessors right to other income therefrom, and/or Lessors



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business of leasing, by any authority having the direct or indirect power to tax and where the funds are generated with reference to the Building address and
where the proceeds so generated are to be applied by the city, county or other local taxing authority of a jurisdiction within which the Premises are located. Real Property Taxes shall also include any tax, fee, levy, assessment or charge, or any
increase therein: (i) imposed by reason of events occurring during the term of this Lease, including but not limited to, a change in the ownership of the Premises, and (ii) levied or assessed on machinery or equipment provided by Lessor to Lessee
pursuant to this Lease.



10.2 Payment of Taxes. In
addition to Base Rent, Lessee shall pay to Lessor an amount equal to the Real Property Tax installment due at least 20 days prior to the applicable delinquency date. If any such installment shall cover any period of time prior to or after the
expiration or termination of this Lease, Lessees share of such installment shall be prorated. In the event Lessee incurs a late charge on any Rent payment, Lessor may estimate the current Real Property Taxes, and require that such taxes be
paid in advance to Lessor by Lessee monthly in advance with the payment of the Base Rent. Such monthly payments shall be an amount equal to the amount of the estimated installment of taxes divided by the number of months remaining before the month
in which said installment becomes delinquent. When the actual amount of the applicable tax bill is known, the amount of such equal monthly advance payments shall be adjusted as required to provide the funds needed to pay the applicable taxes. If the
amount collected by Lessor is insufficient to pay such Real Property Taxes when due, Lessee shall pay Lessor, upon demand, such additional sum as is necessary. Advance payments may be intermingled with other moneys of Lessor and shall not bear
interest. In the event of a Breach by Lessee in the performance of its obligations under this Lease, then any such advance payments may be treated by Lessor as an additional Security Deposit. Lessor shall make a good faith contest of the current
real property taxes within 6 months of the Start Date and any savings shall be passed to lessee (after deducting Lessors out of pocket expenses related to the contest). Lessor shall not be, in any way liable, for the results of such a contest,
or for any delay or other alleged negligence in pursuing said contest. At Lessees option, Lessor shall authorize Lessee to contest applicable taxes, at Lessees sole cost and expense shall be passed on to Lessee Lessor shall have no
obligation to contest in the future.



10.4 Personal Property
Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee shall
cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. If any of Lessees said property shall
be assessed with Lessors real property, Lessee shall pay Lessor the taxes attributable to Lessees property within 10 days after receipt of a written statement setting forth the taxes applicable to Lessees property.



11. Utilities and Services. Lessee shall pay for all water, gas, heat, light, power,
telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered or billed to Lessee, Lessee shall pay a reasonable proportion, to be determined by
Lessor, of all charges jointly metered or billed. There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot,
strike, labor dispute, breakdown, accident repair or other cause beyond Lessors reasonable control or in cooperation with governmental request or directions.



12. Assignment and Subletting.



12.1 Lessors Consent Required.



(a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, assign or assignment) or
sublet all or any part of Lessees interest in this Lease or in the Premises without Lessors prior written consent. which shall not be unreasonably withheld.





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(d) An assignment or subletting without consent shall, at Lessors option, be a Default curable
after notice per Paragraph 13.1(c), or a noncurable Breach without the necessity of any notice and grace period. If Lessor elects to treat such unapproved assignment or subletting as a noncurable Breach, Lessor may either: (i) terminate this Lease,
or (ii) upon 30 days written notice, increase the monthly Base Rent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee
shall be subject to similar adjustment to 110% of the price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent.



Lessee may enter into any assignment or subletting transaction with an
Affiliated Entity without Lessors prior consent. An Affiliated Entity shall be considered to be: (a) a person or entity which controls, is controlled by, or is under common control with Lessee. Any successor must have a
$5.0 million net worth. No assignment shall relieve Lessee of its obligations under the lease. No sublessee or assignee shall have the right to change the use.



Notwithstanding:



(e) Lessees remedy for any breach of Paragraph 12.1 by Lessor shall be limited to compensatory damages and/or injunctive relief.



12.2 Terms and Conditions Applicable to Assignment and Subletting.



(a) Regardless of Lessors consent, no assignment or
subletting shall: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee
for the payment of Rent or for the performance of any other obligations to be performed by Lessee.



(b) Lessor may accept Rent or performance of Lessees obligations from any person other than Lessee pending approval or disapproval of an assignment.
Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessors right to exercise its remedies for Lessees Default or Breach.



(c) Lessors consent to any assignment or subletting shall not
constitute a consent to any subsequent assignment or subletting.



(d) In the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessees obligations under this Lease, including any assignee or
sublessee, without first exhausting Lessors remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor.



(e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessors determination as to
the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the Premises, if any, together with a fee of $500 as consideration
for Lessors considering and processing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested. (See also Paragraph 36)



(f) Any assignee of, or sublessee under, this Lease shall, by reason of
accepting such assignment or entering into such sublease, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said
assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing.



(g) Lessors consent to any assignment or subletting shall not transfer
to the assignee or sublessee any Option granted to the original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2)



12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any
subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein:



(a) Lessee hereby assigns and transfers to Lessor all of Lessees interest in all Rent payable on any sublease, and
Lessor may collect such Rent and apply same toward Lessees obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessees obligations, Lessee may collect said Rent. In the event that the
amount collected by Lessor exceeds Lessees obligations any such excess shall be refunded to Lessee. Lessor shall not, by reason of the foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to
the sublessee for any failure of Lessee to perform and comply with any of Lessees obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a
Breach exists in the performance of Lessees obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any
obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary.



(b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor shall



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undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided,
however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor.



(c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor.



(d) No sublessee shall further assign or sublet all or any part of the
Premises without Lessors prior written consent.



(e)
Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right of
reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee.



13. Default; Breach; Remedies.



13.1 Default; Breach. A Default is defined as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions or Rules and Regulations under this Lease. A Breach is
defined as the occurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace period:



(a) The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security, or where the coverage
of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances to minimize potential vandalism.



(b) The failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder,
whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of 3
business days following written notice to Lessee.



(c) The
failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate, (v) a requested
subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 42, (viii) material safety data sheets (MSDS), or (ix) any other documentation or information which Lessor may reasonably require of
Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following written notice to Lessee.



(d) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 40 hereof, other than
those described in subparagraphs 13.1(a), (b) or (c), above, where such Default continues for a period of 30 days after written notice; provided, however, that if the nature of Lessees Default is such that more than 30 days are reasonably
required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion.



(e) The occurrence of any of the following events: (i) the making of any general arrangement or assignment for the benefit
of creditors; (ii) becoming a debtor as defined in 11 U.S.C. §101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within 60 days); (iii) the appointment of a
trustee or receiver to take possession of substantially all of Lessees assets located at the Premises or of Lessees interest in this Lease, where possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or
other judicial seizure of substantially all of Lessees assets located at the Premises or of Lessees interest in this Lease, where such seizure is not discharged within 30 days; provided, however, in the event that any provision of this
subparagraph (e) is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions.



(f) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false.



(g) If the performance of Lessees obligations under this Lease is
guaranteed: (i) the death of a Guarantor, (ii) the termination of a Guarantors liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantors becoming insolvent or the subject of a
bankruptcy filing, (iv) a Guarantors refusal to honor the guaranty, or (v) a Guarantors breach of its guaranty obligation on an anticipatory basis, and Lessees failure, within 60 days following written notice of any such event, to
provide written alternative assurance or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of execution of this Lease.



13.2 Remedies. If Lessee fails to perform any of its
affirmative duties or obligations, within 10 days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessees behalf, including but not limited to the obtaining of
reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. Lessee shall pay to Lessor an amount equal to 115% of the costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor.
In the event of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach:



(a) Terminate Lessees right to possession of the Premises by any
lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had



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been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after
termination until the time of award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the
time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessees failure to perform its
obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and
alteration of the Premises, reasonable attorneys fees, and that portion of any leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount
referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one
percent. Efforts by Lessor to mitigate damages caused by Lessees Breach of this Lease shall not waive Lessors right to recover damages under Paragraph 12. If termination of this Lease is obtained through the provisional remedy of
unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period
required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable
grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach
of this Lease entitling Lessor to the remedies provided for in this Lease and/or by said statute.



(b) Continue the Lease and Lessees right to possession and recover the Rent as it becomes due, in which event Lessee may sublet or assign, subject
only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessors interests, shall not constitute a termination of the Lessees right to possession.



(c) Pursue any other remedy now or hereafter available under the laws or
judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/or the termination of Lessees right to possession shall not relieve Lessee from liability under any indemnity provisions of this
Lease as to matters occurring or accruing during the term hereof or by reason of Lessees occupancy of the Premises.



13.3 Inducement Recapture. Any agreement for free or abated rent or other charges, or for the giving or paying by Lessor to or for Lessee of any
cash or other bonus, inducement or consideration for Lessees entering into this Lease, all of which concessions are hereinafter referred to as Inducement Provisions, shall be deemed conditioned upon Lessees full and
faithful performance of all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deleted from this Lease and of no further force or effect, and any
rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent cure of said Breach by
Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in writing by Lessor at the
time of such acceptance.



13.4 Late Charges. Lessee
hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and
accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor within 5 days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee
shall immediately pay to Lessor a one-time late charge equal to 10% of each such overdue amount or $100, whichever is greater. The Parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by
reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessees Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies
granted hereunder. In the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessors
option, become due and payable quarterly in advance.



13.5
Interest. Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due as to scheduled payments (such as Base Rent) or within 30 days following the date on which it was due for non-scheduled payment,
shall bear interest from the date when due, as to scheduled payments, or the 31st day after it was due as to non-scheduled payments. The interest (Interest) charged shall be computed at the rate of 10% per annum but shall not
exceed the maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for in Paragraph 13.4.



13.6 Breach by Lessor.



(a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform an obligation
required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for such purpose,
of written notice specifying



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wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessors obligation is such that more than 30 days
are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion.



(b) Performance by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender cures said breach within
30 days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure said breach at Lessees expense and offset from Rent the actual and reasonable cost to perform
such cure, provided however, that such offset shall not exceed an amount equal to the greater of one months Base Rent or the Security Deposit, reserving Lessees right to seek reimbursement from Lessor. Lessee shall document the cost of
said cure and supply said documentation to Lessor.



(c)
Emergencies. Notwithstanding anything to the contrary contained in this Lease, Lessee shall have the right to make emergency repair (or reasonable temporary repair) of those items that are Lessors responsibility under this Lease.
Lessees performance of such emergency repair (or treasonable temporary repair) shall not constitute Lessors breach or default under this Lease. Lessee may offset from Rent the actual and reasonable cost to perform such emergency repair
(or reasonable temporary repair), provided however, that such offset shall not exceed an amount equal to the greater of one months Base rent or the Security Deposit, reserving Lessees right to seek reimbursement from Lessor. Lessee shall
document the cost of said cure and supply said documentation to Lessor.



14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively Condemnation), this Lease shall terminate as
to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than 10% of the Building, or more than 25% of that portion of the Premises not occupied by any building, is taken by Condemnation,
Lessee may, at Lessees option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within 10 days after the condemning authority shall have taken
possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the
Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award shall be
made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation for Lessees relocation expenses, loss of business
goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only,
shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the
Premises caused by such Condemnation.



15.3 Representations
and Indemnities of Broker Relationships. Lessee and Lessor each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder (other than the Brokers, if any) in connection with this Lease, and that no
one other than said named Brokers is entitled to any commission or finders fee in connection herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation
or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying Party, including any costs, expenses, attorneys fees reasonably incurred with respect thereto.



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16. Estoppel Certificates.



(a) Each Party (as Responding Party) shall within 10 days after written notice from the other Party (the
Requesting Party) execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current Estoppel Certificate form published by the AIR Commercial Real Estate
Association, plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party.



(b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such 10 day period, the Requesting Party may execute an
Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the Requesting Party, (ii) there are no uncured defaults in the Requesting Partys performance, and (iii) if
Lessor is the Requesting Party, not more than one months rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Partys Estoppel Certificate, and the Responding Party shall be estopped from
denying the truth of the facts contained in said Certificate.



(c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall deliver to any potential lender or purchaser designated by Lessor such financial statements as may be reasonably
required by such lender or purchaser, including but not limited to Lessees financial statements for the past 2 years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence, subject to the
Lessees Standard Confidentiality Agreement and shall be used only for the purposes herein set forth.



17. Definition of Lessor. The term Lessor as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is a sublease, of the
Lessees interest in the prior lease. In the event of a transfer of Lessors title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by
Lessor. Except as provided in Paragraph 15, upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease
thereafter to be performed by the Lessor, provided the successor Lessor expressly assumes all of the Lessors covenants, obligations and liabilities under the Lease that arise after successor Lessor acquires fee title to the Premises.
Notwithstanding the preceding sentence, a successor Lessor shall be responsible for all uncured, continuing, Lessor defaults under the Lease if, and only if, the current Lessor (with respect to the sale of the Premises to the sucessor Lessor)
requested an estoppel certificate pursuant to Paragraph 16 above and Lessee provided notice of such default therein. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon
the Lessor as hereinabove defined.



18. Severability. The invalidity of
any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof.



19. Days. Unless otherwise specifically indicated to the contrary, the word days as used in this Lease shall mean and refer to calendar days.



20. Limitation on Liability. The obligations of Lessor under this Lease
shall not constitute personal obligations of Lessor or its partners, members, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect
to this Lease, and shall not seek recourse against Lessors partners, members, directors, officers or shareholders, or any of their personal assets for such satisfaction.



21. Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the
Parties under this Lease.



22. No Prior or Other Agreements; Broker
Disclaimer. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and warrants
to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to the use, nature, quality and character of the Premises.
Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. The liability (including court costs and attorneys fees), of any Broker with respect to negotiation, execution, delivery or
performance by either Lessor or Lessee under this Lease or any amendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each
Brokers liability shall not be applicable to any gross negligence or willful misconduct of such Broker.



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23. Notices.



23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may be delivered in person (by
hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, and shall be deemed sufficiently given if served in a manner specified in this
Paragraph 23. The addresses noted adjacent to a Partys signature on this Lease shall be that Partys address for delivery or mailing of notices. Either Party may by written notice to the other specify a different address for notice,
except that upon Lessees taking possession of the Premises, the Premises shall constitute Lessees address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor
may from time to time hereafter designate in writing.



23.2
Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail
the notice shall be deemed given 48 hours after the same is addressed as required herein and mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed given 24
hours after delivery of the same to the Postal Service or courier. Notices transmitted by facsimile transmission or similar means shall be deemed delivered upon telephone confirmation of receipt (confirmation report from fax machine is sufficient),
provided a copy is also delivered via delivery or mail. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day.



24. Waivers. No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a
waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessors consent to, or approval of, any act shall not be deemed to render
unnecessary the obtaining of Lessors consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. The acceptance
of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in
connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment.



25. Disclosures Regarding The Nature of a Real Estate Agency Relationship.



(a) When entering into a discussion with a real estate agent regarding a
real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Lessor and Lessee acknowledge being advised by the Brokers in this
transaction, as follows:



(i) Lessors Agent. A
Lessors agent under a listing agreement with the Lessor acts as the agent for the Lessor only. A Lessors agent or subagent has the following affirmative obligations: To the Lessor: A fiduciary duty of utmost care, integrity,
honesty, and loyalty in dealings with the Lessor. To the Lessee and the Lessor: a. Diligent exercise of reasonable skills and care in performance of the agents duties. b. A duty of honest and fair dealing and good faith. c. A duty to
disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any
confidential information obtained from the other Party which does not involve the affirmative duties set forth above.



(ii) Lessees Agent. An agent can agree to act as agent for the Lessee only. In these situations, the agent is not the Lessors agent,
even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Lessor. An agent acting only for a Lessee has the following affirmative obligations. To the Lessee: A fiduciary duty of utmost
care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the Lessor: a. Diligent exercise of reasonable skills and care in performance of the agents duties. b. A duty of honest and fair dealing and good
faith. c. A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to
either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above.



(iii) Agent Representing Both Lessor and Lessee. A real estate agent, either acting directly or through one or more associate licenses, can
legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee. In a dual agency situation, the agent has the following affirmative obligations to both the Lessor
and the Lessee: a. A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Lessor or the Lessee. b. Other duties to the Lessor and the Lessee as stated above in subparagraphs (i) or (ii). In representing both
Lessor and Lessee, the agent may not without the express permission of the respective Party, disclose to the other Party that the Lessor will accept rent in an amount less than that indicated in the listing or that the Lessee is willing to pay a



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higher rent than that offered. The above duties of the agent in a real estate transaction do not relieve a Lessor or Lessee from the responsibility to
protect their own interests. Lessor and Lessee should carefully read all agreements to assure that they adequately express their understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax
advice is desired, consult a competent professional.



(b)
Brokers have no responsibility with respect to any default or breach hereof by either Party. The liability (including court costs and attorneys fees), of any Broker with respect to any breach of duty, error or omission relating to this Lease
shall not exceed the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Brokers liability shall not be applicable to any gross negligence or willful misconduct of such Broker.



(c) Lessor and Lessee agree to identify to Brokers as
Confidential any communication or information given Brokers that is considered by such Party to be confidential.



26. No Right To Holdover. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. In the
event that Lessee holds over, then the Base Rent shall be increased to 150% of the Base Rent applicable immediately preceding the expiration or termination. Nothing contained herein shall be construed as consent by Lessor to any holding over by
Lessee.



27.Cumulative Remedies. No remedy or election hereunder
shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.



28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions. In
construing this Lease, all headings and titles are for the convenience of the Parties only and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not
be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it.



29. Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their personal representatives, successors and assigns and be governed by the laws
of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located.



30. Subordination; Attornment; Non-Disturbance.



30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease,
mortgage, deed of trust, or other hypothecation or security device (collectively, Security Device), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals,
modifications, and extensions thereof. Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as Lender) shall have no liability or obligation to perform any of the obligations of Lessor
under this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease and such Options shall be deemed prior to such
Security Device, notwithstanding the relative dates of the documentation or recordation thereof.



30.2 Attornment. In the event that Lessor transfers title to the Premises, or the Premises are acquired by another upon the foreclosure or
termination of a Security Device to which this Lease is subordinated (i) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn to such new owner, and upon request, enter into a new lease, containing all of the terms and
provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the election of such new owner, this Lease shall automatically become a new Lease between Lessee and such new owner, upon all of the terms and conditions
hereof, for the remainder of the term hereof, and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessors obligations hereunder, except that such new owner shall not: (a) be
liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership, provided that such new owner promptly cures any continuing uncured Lessor defaults; (b) be subject to any offsets or defenses
which Lessee might have against any prior lessor, (c) be bound by prepayment of more than one months rent, or (d) be liable for the return of any security deposit paid to any prior lessor.



30.3 Non-Disturbance. With respect to Security Devices entered into by
Lessor after the execution of this Lease, Lessees subordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a Non-Disturbance Agreement) from the Lender which
Non-Disturbance Agreement provides that Lessees possession of the Premises, and this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the
Premises. Further, within 60 days after the execution of this Lease, Lessor shall use its commercially reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing Security Device which is secured by the Premises. In
the event that Lessor is unable to provide the Non-Disturbance Agreement within said 60 days, then Lessee may, at Lessees option, directly contact Lender and attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement.



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30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective without the
execution of any further documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably
required to separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein.



31. Attorneys Fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or to declare
rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether
or not such action or proceeding is pursued to decision or judgment. The term, Prevailing Party shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be,
whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully
reimburse all attorneys fees reasonably incurred. In addition, Lessor shall be entitled to attorneys fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith,
whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation).



32. Lessors Access; Showing Premises; Repairs. Lessor and Lessors
agents shall have the right to enter the Premises at any time, in the Case of an emergency, and otherwise at times after 24 hours prior notice for the purpose of showing the same to prospective purchasers, lenders, or tenants, and making such
repairs, to the Premises as necessary and the erecting, using and maintaining of utilities, services, pipes and conduits through the Premises and/or other premises as long as there is no material adverse effect to Lessees use of the Premises.
All such activities shall be without abatement of rent or liability to Lessee.



33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessors prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in
determining whether to permit an auction.



34. Signs. Lessor may place
on the Premises ordinary For Sale signs at any time and ordinary For Lease signs during the last 6 months of the term hereof. Except for ordinary for sublease signs, Lessee shall not place any sign upon the
Premises without Lessors prior written consent. All signs must comply with all Applicable Requirements.



35. Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination
hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies. Lessors failure within 10 days
following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessors election to have such event constitute the termination of such interest.



36. Consents. Except as otherwise provided herein, wherever in this Lease the
consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessors commercially reasonable costs and expenses (including but not limited to architects, attorneys,
engineers and other consultants fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent, including but not limited to consents to an assignment, a subletting or the presence or use of a
Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessors consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of
this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein any particular
condition to Lessors consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event
that either Party disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within 10 business days
following such request.



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37. Guarantor.



37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently published by the AIR Commercial Real Estate
Association, and each such Guarantor shall have the same payment obligations only, as Lessee under this Lease.



37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution
of the guaranty, including the authority of the party signing on Guarantors behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such
guaranty, (b) current financial statements, (c) an Estoppel Certificate, or (d) written confirmation that the guaranty is still in effect. With respect to a Guarantors financial statements: If Guarantor makes its financial statements generally
available to the public, then Lessor shall have the right to obtain copies of Guarantors current publicly available financial statements. If Guarantor does not make its financial statements available to the public, then Lessor may require
Guarantor to provide copies of its financial statements provided that Lessor executes Guarantors standard confidentiality agreement. Guarantor shall not be required to provide financial statements more frequently than on a quarterly basis.



38. Quiet Possession. Subject to payment by Lessee of the Rent and
performance of all of the covenants, conditions and provisions on Lessees part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof.



39. Options. If Lessee is granted an Option, as defined below, then the following
provisions shall apply:



39.1 Definition.
Option shall mean: (a) the right to extend the term of or renew this Lease or to extend or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or
other property of Lessor; (c) the right to purchase or the right of first refusal to purchase the Premises or other property of Lessor.



39.2 Options Personal To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee, and cannot be assigned or
exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or subletting.



39.3



39.4 Effect of Default on Options.



(a) Lessee shall have no right to exercise an Option: (i) during the period
commencing with the giving of any notice of monetary Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time Lessee is in
Breach of this Lease, or (iv) in the event that Lessee has been given 3 or more notices of separate monetary Default whether or not the Defaults are cured, during the 12 month period immediately preceding the exercise of the Option.



(b) The period of time within which an Option may be exercised shall not be
extended or enlarged by reason of Lessees inability to exercise an Option because of the provisions of Paragraph 39.4(a).



(c) An Option shall terminate and be of no further force or effect, notwithstanding Lessees due and timely exercise of the Option, if, after such
exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof), or (ii) if Lessee
commits a Breach of this Lease.



40. Multiple Buildings. If the Premises
are a part of a group of buildings controlled by Lessor, Lessee agrees that it will abide by and conform to all reasonable rules and regulations which Lessor may make from time to time for the management, safety, and care of said properties,
including the care and cleanliness of the grounds and including the parking, loading and unloading of vehicles, and to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessee also agrees to pay
its fair share of common expenses incurred in connection with such rules and regulations.



41. Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation
whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties.



42. Reservations. Lessor reserves to itself the right, from time to time, to grant, without the consent or joinder of Lessee, such
easements, rights and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the
Premises by Lessee. Lessee agrees to sign any documents



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reasonably requested by Lessor to effectuate any such easement rights, dedication, map or restrictions. At no time during the Term or any extension term
shall Lessor modify, interfere with or impair any of the following: (a) vehicular, truck and pedestrian access to and from the Premises and loading areas; (b) the location of the loading areas; or (c) the number of parking spaces available to Lessee
and its employees, licensees and invitees.



43. Performance Under
Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make
payment under protest and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal
obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay.



44. Authority; Multiple Parties; Execution.



(a) If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on
behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each party shall, within 30 days after request, deliver to the other party satisfactory evidence of such authority.



(b) if this Lease is executed by more than one person or
entity as Lessee, each such person or entity shall be jointly and severally liable hereunder. It is agreed that any one of the named Lessees shall be empowered to execute any amendment to this Lease, or other document ancillary thereto
and bind all of the named Lessees, and Lessor may rely on the same as if all of the named Lessees had executed such document.



(c) This Lease may be executed by the Parties in counterparts, each of which shall be deemed an original and all of which together shall constitute one
and the same instrument.



45. Conflict. Any conflict between the printed
provisions of this Lease and typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions.



46. Offer. Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other
Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto.



47. Amendments. This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. As long as they do not materially change Lessees obligations hereunder,
Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises.



48. Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL
BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT.



49. Mediation and Arbitration of Disputes. An Addendum requiring the Mediation and/or the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease is attached to this Lease.



50. Americans with Disabilities Act. Since compliance with the Americans with Disabilities
Act (ADA) is dependent upon Lessees specific use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation. In the event that Lessees use of the Premises
requires modifications or additions to the Premises in order to be in ADA compliance, Lessee agrees to make any such necessary modifications and/or additions at Lessees expense.



Additional Lease Provisions.



|1. | Vehicle Parking. - Lessee shall have the right to park vans and shipping trucks and containers in the common area parking spaces during business hours, overnight and on weekends;
however, such activities are at the Lessees sole risk and Lessee shall maintain such additional insurance as may be reasonable to maintain with respect to such activities.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2. | Lessors Lien. - Lessor hereby waives any and all lien rights, statutory or otherwise, upon all trade fixtures, inventory, stock in trade and personal property of Lessee
situated in or on the Premises or upon the proceeds from the sale of lease thereof.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|3. | Lessees Access - Subject to all applicable laws, Lessee shall be entitled to have access to the Premises and use of all parking areas and utility facilities seven days per
week, 24 hours per day; however, such activities shall be at Lessees sole risk and Lessee shall maintain such additional insurance or security services that are reasonable to maintain with respect to such activities.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|4. | Buy-ln Option - Lessee shall be allowed to acquire up to 25% of the interest in the property, subject to The Midtown Niki Groups standard management agreement, by notifying
the Lessor in writing of its intent to do so, no later than April, 15, 2005. The cost of the Buy-in shall be the same as the Lessors at the time of the Buy-in.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5. | Barbeques Galore Inc. (Sublessor) to execute a Sublease with Case Paper Company (Sublessee) under the following terms:
|-- | ----------------------------------------------------------------------------------------------------------------------



| |  | Term Commencement Date of acquisition by Lessor.
|- |  | ------------------------------------------------



| |  | Termination 6/30/2005.
|- |  | ----------------------



| |  | Rent: The lease rate shall be ***, plus one half of all utility charges (water, sewer, gas, electric) and one half of waste removal and janitorial services, ***.
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Size: Commencement - 1st 30-days 46,400 square feet; 31st day through June 30, 2005, 40,000 square feet.
|- |  | --------------------------------------------------------------------------------------------------------



| |  | Case and Lessee shall pay utilities on a 50/50 basis throughout the sublease term.
|- |  | ----------------------------------------------------------------------------------



| |  | Lessee to keep 100% of sublease rental payments.
|- |  | ------------------------------------------------



| |  | Sublease to be executed by all parties no later than December 29, 2004.
|- |  | -----------------------------------------------------------------------



| |  | Case may terminate its Sublease at any time upon giving 30 days written notice to Sublessor.
|- |  | --------------------------------------------------------------------------------------------



| |  | Sublessor may terminate the Sublease lease on 30 days written notice if Case makes a request that requires Sublessor to incur an expense that is commercially unreasonable in
relation to the short term nature of the Sublease.
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | At commencement, Case agrees to prepay two months rent ***.
|- |  | -----------------------------------------------------------



LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND
VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.



ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL
ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:



1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.



2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES.
SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR
LESSEES INTENDED USE.



WARNING: IF THE PREMISES IS LOCATED
IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES IS LOCATED.



The parties hereto have executed this Lease at the place and on the dates specified above their respective signatures.



|             |  |                   |  |              |  |                
|------------ |  | ----------------- |  | ------------ |  | ---------------
|Executed at: |  | Carlsbad CA 92008 |  | Executed at: |  | Lake Forest, CA
|             |  |                   | 
|On:          |  | 12/29/04          |  | On:          |  |                
|             |  |                   | 
|By LESSOR:   |  |                   |  | By LESSEE:   |  |                



|*** | Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.
|--- | ----------------------------------------------------------------------------------------------------------------------------------



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|         |  | PAGE 24 OF 25 |  | /s/ [ILLEGIBLE]
|         |  |               |  |                
|INITIALS |  |               |  | INITIALS       

|                                               |  |                 
|---------------------------------------------- |  | ----------------
|                                               | 
|©2001 - AIR COMMERCIAL REAL ESTATE ASSOCIATION |  | FORM STN-7-4/01E



---

|                        |  |                              |  |                |  |                           
|----------------------- |  | ---------------------------- |  | -------------- |  | --------------------------
|DBI Retail Ventures LLC |  | Barbeques Galore, Inc.      
|                        |  |                              | 
|By:                     |  | /s/ Dick Bridy               |  | By:            |  | /s/ Sydney Selati         
|Name Printed:           |  | Dick Bridy                   |  | Name Printed:  |  | Sydney Selati             
|Title:                  |  | Managing Member              |  | Title:         |  | President                 
|                        |  |                              | 
|By:                     |  |                              |  | By:            |  |                           
|Name Printed:           |  |                              |  | Name Printed:  |  |                           
|Title:                  |  |                              |  | Title:         |  |                           
|Address:                |  | 1902 Wright Place, 2nd Floor |  | Address:       |  | 10 Orchard Road, Suite 200
|                        |  | Carlsbad, CA 92008           |  |                |  | Lake Forest, CA 92630     
|Telephone:              |  | (760) 918  5554             |  | Telephone:     |  | (949) 597  2400          
|Facsimile:              |  | (760) 918  5553             |  | Facsimile:     |  | (949) 597  2434          
|                        |  |                              | 
|Federal ID No.          |  | 33  0480039                 |  | Federal ID No. |  |                           
|                        |  |                              | 
|BROKER:                 |  |                              |  | BROKER:        |  |                           
|                        | 
|                        |  |                             
|                        |  |                             
|Attn:                   |  |                              |  | Attn:          |  |                           
|Title:                  |  |                              |  | Title:         |  |                           
|Address:                |  |                              |  | Address:       |  |                           
|                        |  |                              |  |                |  |                           
|Telephone:              |  | (        )                   |  | Telephone:     |  | (        )                
|Facsimile:              |  | (        )                   |  | Facsimile:     |  | (        )                
|Federal ID No.          |  |                              |  | Federal ID No. |  |                           



NOTE: These forms are often
modified to meet the changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AIR COMMERCIAL REAL ESTATE ASSOCIATION, 700 So. Flower Street, Suite 600, Los Angeles, California 90017.
(213) 687-8777. Fax No. (213) 687-8616



© Copyright
2001 - By AIR Commercial Real Estate Association. All rights reserved.

No part of these works may be reproduced in any form without
permission in writing.



|         |  |               |  |                
|-------- |  | ------------- |  | ---------------
|         |  | PAGE 25 OF 25 |  | /s/ [ILLEGIBLE]
|         |  |               |  |                
|INITIALS |  |               |  | INITIALS       

|                                               |  |                 
|---------------------------------------------- |  | ----------------
|                                               | 
|©2001 - AIR COMMERCIAL REAL ESTATE ASSOCIATION |  | FORM STN-7-4/01E



---

LOGO



ADDENDUM



Date: 12/29/04



|                     |  |                    |  |                         
|-------------------- |  | ------------------ |  | ------------------------
|By and Between       |  | (Lessor)           |  | DBI Retail Ventures, LLC
|                     |  | (Lessee)           |  | Barbeques Galore, Inc.  
|                     | 
|Address of Premises: |  | 1401 Tar Heel Road
|                     |  |                    |  | Charlotte, NC           



Lessors Work



1. Clean carpet in office areas (see floor plan).



2. Paint all Interior walls in production offices restrooms and storage areas
(see floor plan).



3. Strip / clean tile floors in production
offices (see floor plan).



4. Clean, patch, and paint warehouse bathroom (see
floor plan).



5. Remove all equipment and repair floors throughout the
warehouse area.



6. Patch, and clean warehouse floors.*



7. Remove all unnecessary electrical, lights and duct work in the warehouse areas where
existing Case machinery is to be removed, in the work cage area, on the wall area where the shipping doors are to be installed and terminate electrical connections at the electrical panel.



8. Check and inspect smoke vents to ensure they are operational.



9. Remove parts cage.



10. Install fencing around shipping parking lot with razor wire (see site plan).



11. Knock out shipping doors and install pit levelers (5 total) (see floor plan).



12. Inspect and repair/replace all emergency lights, door closures, and door knobs
currently not working.



13. Warehouse heaters to be in good working order.



14. HVAC units, to be in good working order.



15. Replace all bulbs that are not working, replace/repair fixtures, if needed.



16. Replace damaged ceiling tiles in the office area (see floor plan).



17. Fire system inspected and / or inspection reports and certificates on file.



18. Install plates on open electrical boxes in warehouse.



---

|* | Floors in Lessees area by 1/30/2005 and in Case area within 30-days of Case vacation.
|- | -------------------------------------------------------------------------------------



Lessees Work



1. All fixtures and equipment.



2. Additional ventilation and air conditioning and ducting plus requirements necessary for the operation of special equipment or specialized use of Lessee.



3. Additional water, sewer, gas and utility services and connections necessary for the operation of special equipment of Lessee.



4. Additional electrical panel requirements, wall outlets, floor outlets, light fixtures
and lamping, special distribution requirements for tenants specialized use including conduit; wiring, and connections from light fixtures to J boxes other than those provided by Lessor.



5. All exterior signage.



6. All roof penetrations.



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|         |  | PAGE 1 OF 1 |  | /s/ [ILLEGIBLE]
|         |  |             |  |                
|INITIALS |  |             |  | INITIALS       



---

LOGO



ARBITRATION AGREEMENT

Standard Lease Addendum



Dated 12/29/04



|                     |  |                    |  |                         
|-------------------- |  | ------------------ |  | ------------------------
|By and Between       |  | (Lessor)           |  | DBI Retail Ventures, LLC
|                     |  | (Lessee)           |  | Barbeques Galore, Inc.  
|                     | 
|Address of Premises: |  | 1401 Tar Heel Road
|                     |  | Charlotte, NC     



Paragraph



A. ARBITRATION OF DISPUTES:



Except as provided in Paragraph B below, the Parties agree to resolve any and all claims, disputes or disagreements arising under this Lease, including, but not limited
to any matter relating to Lessors failure to approve an assignment, sublease or other transfer of Lessees interest in the Lease under Paragraph 12 of this Lease, any other defaults by Lessor, or any defaults by Lessee by and through
arbitration as provided below and irrevocably waive any and all rights to the contrary. The Parties agree to at all times conduct themselves in strict, full, complete and timely accordance with the terms hereof and that any attempt to circumvent the
terms of this Arbitration Agreement shall be absolutely null and void and of no force or effect whatsoever.



B. DISPUTES EXCLUDED FROM ARBITRATION:



The following claims, disputes or disagreements under this Lease are expressly excluded from the arbitration procedures set forth herein: 1. Disputes for which a
different resolution determination is specifically set forth in this Lease, 2. All claims by either party which (a) seek anything other than enforcement or determination of rights under this Lease, or (b) are primarily founded upon matters of fraud,
willful misconduct, bad faith or any other allegations of tortious action, and seek the award of punitive or exemplary damages, 3. Claims relating to (a) Lessors exercise of any unlawful detainer rights pursuant to applicable law or (b) rights
or remedies used by Lessor to gain possession of the Premises or terminate Lessees right of possession to the Premises, all of which disputes shall be resolved by suit filed in the applicable court of jurisdiction, the decision of which court
shall be subject to appeal pursuant to applicable law and 4. All claims arising under Paragraph 39 of this Lease, which disputes shall be resolved by the specific dispute resolution procedure provided in Paragraph 39 to the extent that such disputes
concern solely the determination of rent.



C.
APPOINTMENT OF AN ARBITRATOR:



All disputes subject to this Arbitration
Agreement, shall be determined by binding arbitration before: x a retired judge of the applicable court of jurisdiction (e.g., the Superior Court of the State of California) affiliated with Judicial Arbitration
& Mediation Services, Inc. (JAMS), ̈____________________________________________________________________________________,

or as may be otherwise mutually agreed by Lessor and Lessee
(the Arbitrator). Such arbitration shall be initiated by the Parties, or either of them, within ten (10) days after either party sends written notice (the Arbitration Notice) of a demand to arbitrate by registered or
certified mail to the other party and to the Arbitrator. The Arbitration Notice shall contain a description of the subject matter of the arbitration, the dispute with respect thereto, the amount involved, if any, and the remedy or determination
sought. If the Parties have agreed to use JAMS they may agree on a retired judge from the JAMS panel. If they are unable to agree within ten days, JAMS will provide a list of three available judges and each party may strike one. The remaining judge
(or if there are two, the one selected by JAMS) will serve as the Arbitrator. If the Parties have elected to utilize AAA or some other organization, the Arbitrator shall be selected in accordance with said organizations rules. In the event the
Arbitrator is not selected as provided for above for any reason, the party initiating arbitration shall apply to the appropriate Court for the appointment of a qualified retired judge to act as the Arbitrator.



|         |  |             |  |                
|-------- |  | ----------- |  | ---------------
|         |  | PAGE 1 OF 2 |  | /s/ [ILLEGIBLE]
|         |  |             |  |                
|INITIALS |  |             |  | INITIALS       

|                                               |  |                 
|---------------------------------------------- |  | ----------------
|                                               | 
|©1997 - AIR COMMERCIAL REAL ESTATE ASSOCIATION |  | FORM ARB-0-7/97E



---

D. ARBITRATION PROCEDURE:



1. PRE-HEARING ACTIONS. The Arbitrator shall schedule a pre-hearing
conference to resolve procedural matters, arrange for the exchange of information, obtain stipulations, and narrow the issues. The Parties will submit proposed discovery schedules to the Arbitrator at the pre-hearing conference. The scope and
duration of discovery will be within the sole discretion of the Arbitrator. The Arbitrator shall have the discretion to order a pre-hearing exchange of information by the Parties, including, without limitation, production of requested documents,
exchange of summaries of testimony of proposed witnesses, and examination by deposition of parties and third-party witnesses. This discretion shall be exercised in favor of discovery reasonable under the circumstances. The Arbitrator shall issue
subpoenas and subpoenas duces tecum as provided for in the applicable statutory or case law (e.g., in California Code of Civil Procedure Section 1282.6).



2. THE DECISION. The arbitration shall be conducted in the city or county within which the Premises are located at a reasonably convenient site.
Any Party may be represented by counsel or other authorized representative. In rendering a decision(s), the Arbitrator shall determine the rights and obligations of the Parties according to the substantive laws and the terms and provisions of this
Lease. The Arbitrators decision shall be based on the evidence introduced at the hearing, including all logical and reasonable inferences therefrom. The Arbitrator may make any determination and/or grant any remedy or relief that is just and
equitable. The decision must be based on, and accompanied by, a written statement of decision explaining the factual and legal basis for the decision as to each of the principal controverted issues. The decision shall be conclusive and binding, and
it may thereafter be confirmed as a judgment by the court of applicable jurisdiction, subject only to challenge on the grounds set forth in the applicable statutory or case law (e.g., in California Code of Civil Procedure Section 1286.2). The
validity and enforceability of the Arbitrators decision is to be determined exclusively by the court of appropriate jurisdiction pursuant to the provisions of this Lease. The Arbitrator may award costs, including without limitation,
Arbitrators fees and costs, attorneys fees, and expert and witness costs, to the prevailing party, if any, as determined by the Arbitrator in his discretion.



Whenever a matter which has been submitted to arbitration involves a dispute as to whether or not a particular act or
omission (other than a failure to pay money) constitutes a Default, the time to commence or cease such action shall be tolled from the date that the Notice of Arbitration is served through and until the date the Arbitrator renders his or her
decision. Provided, however, that this provision shall NOT apply in the event that the Arbitrator determines that the Arbitration Notice was prepared in bad faith.



Whenever a dispute arises between the Parties concerning whether or not the failure to make a payment of money constitutes a
default, the service of an Arbitration Notice shall NOT toll the time period in which to pay the money. The Party allegedly obligated to pay the money may, however, elect to pay the money under protest by accompanying said payment with a
written statement setting forth the reasons for such protest. If thereafter, the Arbitrator determines that the Party who received said money was not entitled to such payment, said money shall be promptly returned to the Party who paid such money
under protest together with Interest thereon as defined in Paragraph 13.5. If a Party makes a payment under protest but no Notice of Arbitration is filed within thirty days, then such protest shall be deemed waived. (See also Paragraph
43)



NOTICE: These forms are often modified to meet changing requirements of
law and industry needs. Always write or call us to make sure you are utilizing the most current form: AIR Commercial Real Estate Association, 700 South Flower Street, Suite 600, Los Angeles, CA 90017, Telephone No.: (213) 687-8777. Fax No.: (213)
687-8616.



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|-------- |  | ----------- |  | ---------------
|         |  | PAGE 2 OF 2 |  | /s/ [ILLEGIBLE]
|         |  |             |  |                
|INITIALS |  |             |  | INITIALS       

|                                               |  |                 
|---------------------------------------------- |  | ----------------
|                                               | 
|©1997 - AIR COMMERCIAL REAL ESTATE ASSOCIATION |  | FORM ARB-0-7/97E



---

LOGO



RENT ADJUSTMENT(S)

STANDARD LEASE ADDENDUM



Dated 12/29/04



|                     |  |                                   |  |                         
|-------------------- |  | --------------------------------- |  | ------------------------
|By and Between       |  | (Lessor)                          |  | DBI Retail Ventures, LLC
|                     |  | (Lessee)                          |  | Barbeques Galore, Inc.  
|                     | 
|Address of Premises: |  | 1401 Tar Heel Road, Charlotte, NC



Paragraph



|         |  |             |  |                
|-------- |  | ----------- |  | ---------------
|         |  | PAGE 1 OF 2 |  | /s/ [ILLEGIBLE]
|         |  |             |  |                
|INITIALS |  |             |  | INITIALS       

|                                               |  |                
|---------------------------------------------- |  | ---------------
|                                               | 
|©2000 - AIR COMMERCIAL REAL ESTATE ASSOCIATION |  | FORM RA-3-8/00E



---

|x | III. Fixed Rental Adjustment(s) (FRA)
|- | -------------------------------------



The Base Rent shall be increased to the following amounts on the dates set forth below:



|                                     |  |                            
|------------------------------------ |  | ---------------------------
|On (Fill in FRA Adjustment Date(s)): |  | The New Base Rent shall be:
|                                     | 
|3/1/2010                             |  | $***                       
|3/1/2015                             |  | $***                       
|3/1/2020                             |  | $***                       



B.
NOTICE



Unless specified otherwise herein, notice of
any such adjustments, other than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of the Lease.



NOTE: These forms are often modified to meet changing requirements of law and needs of the industry. Always write or call to make sure you are utilizing the most
current form: AIR COMMERCIAL REAL ESTATE ASSOCIATION, 700 S. Flower Street, Suite 600, Los Angeles, Calif. 90017



|*** | Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.
|--- | ----------------------------------------------------------------------------------------------------------------------------------



|         |  |             |  |                
|-------- |  | ----------- |  | ---------------
|         |  | PAGE 2 OF 2 |  | /s/ [ILLEGIBLE]
|         |  |             |  |                
|INITIALS |  |             |  | INITIALS       

|                                               |  |                
|---------------------------------------------- |  | ---------------
|                                               | 
|©2000 - AIR COMMERCIAL REAL ESTATE ASSOCIATION |  | FORM RA-3-8/00E



---

LOGO



OPTION(S) TO EXTEND

STANDARD LEASE ADDENDUM



Dated 12/29/04



|                        |  |                                  
|----------------------- |  | ---------------------------------
|By and Between (Lessor) |  | DBI Retail Ventures, LLC         
|By and Between (Lessee) |  | Barbeques Galore, Inc.           
|                        | 
|Address of Premises:    |  | 1401 Tar Heel Road, Charlotte, NC



Paragraph



A.OPTION(S) TO EXTEND:



Lessor hereby grants to Lessee
the option to extend the term of this Lease for One (1) additional 120 month period(s) commencing when the prior term expires upon each and all of the following terms and conditions:



(i) In order to exercise an option to extend, Lessee must give written notice of such election to Lessor and Lessor must
receive the same at least 24 but not more than 36 months prior to the date that the option period would commence, time being of the essence. If proper notification of the exercise of an option is not given and/or received, such option shall
automatically expire. Options (if there are more than one) may only be exercised consecutively.



(ii) The provisions of paragraph 39, including those relating to Lessees Default set forth in paragraph 39.4 of this Lease, are conditions of this
Option.



(iii) Except for the provisions of this Lease granting
an option or options to extend the term, all of the terms and conditions of this Lease except where specifically modified by this option shall apply.



(iv) This Option is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the
original Lessee is in full possession of the Premises and without the intention of thereafter assigning or subletting.



(v) The monthly rent for each month of the option period shall be calculated as follows, using the method(s) indicated below: (Check Method(s) to be Used
and Fill in Appropriately)



|         |  |             |  |                
|-------- |  | ----------- |  | ---------------
|         |  | PAGE 1 OF 2 |  | /s/ [ILLEGIBLE]
|         |  |             |  |                
|INITIALS |  |             |  | INITIALS       

|                                               |  |                
|---------------------------------------------- |  | ---------------
|                                               | 
|©2000 - AIR COMMERCIAL REAL ESTATE ASSOCIATION |  | FORM OE-3-8/00E



---

|x | III. Fixed Rental Adjustment(s) (FRA)
|- | -------------------------------------



The Base Rent shall be increased to the following amounts on the dates set forth below:



|                                     |  |                            
|------------------------------------ |  | ---------------------------
|On (Fill in FRA Adjustment Date(s)): |  | The New Base Rent shall be:
|                                     | 
|03/01/2015                           |  | $***                       
|03/01/2020                           |  | $***                       



B.
NOTICE:



Unless specified otherwise herein, notice of
any rental adjustments, other than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of the Lease.



NOTE: These forms are often modified to meet changing requirements of law and needs of the industry. Always write or call to make sure you are utilizing the most
current form: AIR COMMERCIAL REAL ESTATE ASSOCIATION, 700 S. Flower Street, Suite 600, Los Angeles, Calif. 90017



|*** | Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission.
|--- | ----------------------------------------------------------------------------------------------------------------------------------



|         |  |             |  |                
|-------- |  | ----------- |  | ---------------
|         |  | PAGE 2 OF 2 |  | /s/ [ILLEGIBLE]
|         |  |             |  |                
|INITIALS |  |             |  | INITIALS       

|                                               |  |                
|---------------------------------------------- |  | ---------------
|                                               | 
|©2000 - AIR COMMERCIAL REAL ESTATE ASSOCIATION |  | FORM OE-3-8/00E



---

LOGO



ADDENDUM



Date: 12/29/04



|                     |  |                    |  |                         
|-------------------- |  | ------------------ |  | ------------------------
|By and Between       |  | (Lessor)           |  | DBI Retail Ventures, LLC
|                     |  | (Lessee)           |  | Barbeques Galore, Inc.  
|                     | 
|Address of Premises: |  | 1401 Tar Heel Road
|                     |  |                    |  | Charlotte, NC           



LESSORS LIABILITY



NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE,
LESSORS LIABILITY FOR ANY ACT, OMMISSION OR OTHER OBLIGATION UNDER THIS LEASE SHALL NOT EXCEED THE VALUE OF LESSORS INTEREST IN THE PROPERTY.



|         |  |             |  |                
|-------- |  | ----------- |  | ---------------
|         |  | PAGE 1 OF 1 |  | /s/ [ILLEGIBLE]
|         |  |             |  |                
|INITIALS |  |             |  | INITIALS       



---

LOGO



AIR COMMERCIAL REAL ESTATE
ASSOCIATION

GUARANTY OF LEASE



WHEREAS, DBI Retail Ventures, LLC, hereinafter Lessor, and Barbeques Galore, Inc., hereinafter Lessee, are about to execute a
document entitled Lease dated 12/29/04 concerning the premises commonly known as 1401 Tar Heel Road, Charlotte, NC wherein Lessor will lease the premises to Lessee, and



WHEREAS, Barbeques Galore, Ltd. hereinafter Guarantors have a financial interest in Lessee, and



WHEREAS, Lessor would not execute the Lease if Guarantors did not execute and
deliver to Lessor this Guarantee of Lease.



NOW THEREFORE, in
consideration of the execution of the foregoing Lease by Lessor and as a material inducement to Lessor to execute said Lease, Guarantors hereby jointly, severally, unconditionally and irrevocably guarantee the prompt payment by Lessee of all rents
and all other sums payable by Lessee under said Lease.



It is
specifically agreed that the terms of the foregoing Lease may be modified by agreement between Lessor and Lessee, or by a course of conduct, and said Lease may be assigned by Lessor or any assignee of Lessor without consent or notice to Guarantors
and that this Guaranty shall guarantee the performance of said Lease as so modified.



This Guaranty shall not be released, modified or affected by the failure or delay on the part of Lessor to enforce any of the rights or remedies of the Lessor under said Lease, whether pursuant to the terms thereof or
at law or in equity.



No notice of default need be given to
Guarantors, it being specifically agreed that the guarantee of the undersigned is a continuing guarantee under which Lessor may proceed immediately against Lessee and/or against Guarantors following any breach or default by Lessee or for the
enforcement of any rights which Lessor may have as against Lessee under the terms of the Lease or at law or in equity.



Lessor shall have the right to proceed against Guarantors hereunder following any breach or default by Lessee without first proceeding against Lessee and
without previous notice to or demand upon either Lessee or Guarantors.



Guarantors hereby waive (a) notice of acceptance of this Guaranty, (b) demand of payment, presentation and protest, (c) all right to assert or plead any statute of limitations relating to this Guaranty or the Lease, (d) any right to require
the Lessor to proceed against the Lessee or any other Guarantor or any other person or entity liable to Lessor, (e) any right to require Lessor to apply to any default any security deposit or other security it may hold under the Lease, (f) any right
to require Lessor to proceed under any other remedy Lessor may have before proceeding against Guarantors, (g) any right of subrogation.



Guarantors do hereby subrogate all existing or future indebtedness of Lessee to Guarantors to the obligations owed to Lessor under the Lease and this
Guaranty.



If a Guarantor is married, such Guarantor expressly
agrees that recourse may be had against his or her separate property for all of the obligations hereunder.



The obligations of Lessee under the Lease to execute and deliver estoppel statements and financial statements, as therein provided, shall be deemed to
also require the Guarantors hereunder to do and provide the same.



The term Lessor refers to and means the Lessor named in the Lease and also Lessors successors and assigns. So long as Lessors interest in the Lease, the leased premises or the rents, issues and profits therefrom, are
subject to any mortgage or deed of trust or assignment for security, no acquisition by Guarantors of the Lessors interest shall affect the continuing obligation of Guarantors under this Guaranty which shall nevertheless continue in full force
and effect for the benefit of the mortgagee, beneficiary, trustee or assignee under such mortgage, deed of trust or assignment and their successors and assigns.



The term Lessee refers to and means the Lessee named in the Lease and also Lessees successors and assigns.



| |  |             |  | 
| |  | ----------- |  | 
| |  | PAGE 1 OF 2 |  | 

|                                               |  |                 
|---------------------------------------------- |  | ----------------
|                                               | 
|©1996 - AIR COMMERCIAL REAL ESTATE ASSOCIATION |  | FORM GR-1-12/96E
|                                               | 
|                                               |  | /s/ [ILLEGIBLE] 



---

In the event any action be brought by said Lessor against Guarantors hereunder to enforce the obligation
of Guarantors hereunder, the unsuccessful party in such action shall pay to the prevailing party therein a reasonable attorneys fee which shall be fixed by the court.



If this Form has been filled in, it has been prepared for submission to your attorney for his approval. No representation
or recommendation is made by the AIR Commercial Real Estate Association, the real estate broker or its agents or employees as to the legal sufficiency, legal effect, or tax consequences of this Form or the transaction relating thereto.



|             |  |                          |  |                      
|------------ |  | ------------------------ |  | ---------------------
|Executed at: |  |                          |  | Barbeques Galore Ltd.
|             |  |                         
|On:          |  |                          |  | /s/ Sydney Selati    
|Address:     |  | 27 Chisholm Road, Auburn |  | Director             
|             |  | Sydney NS 2144           |  | GUARANTORS         



| |  |             |  | 
| |  | ----------- |  | 
| |  | PAGE 2 OF 2 |  | 

|                                               |  |                 
|---------------------------------------------- |  | ----------------
|                                               | 
|©1996 - AIR COMMERCIAL REAL ESTATE ASSOCIATION |  | FORM GR-1-12/96E
|                                               | 
|                                               |  | /s/ [ILLEGIBLE] 



---

LOGO



ADDENDUM



Date: 12/29/04



|                     |  |                    |  |                         
|-------------------- |  | ------------------ |  | ------------------------
|By and Between       |  | (Lessor)           |  | DBI Retail Ventures, LLC
|                     |  | (Lessee)           |  | Barbeques Galore, Inc.  
|                     | 
|Address of Premises: |  | 1401 Tar Heel Road
|                     |  |                    |  | Charlotte, NC           



SITE PLAN



LOGO



| |  |  |  |                
| |  |  |  | ---------------
| |  |  |  | /s/ [ILLEGIBLE]



---

LOGO



ADDENDUM



Date: 12/29/04



|                     |  |                    |  |                         
|-------------------- |  | ------------------ |  | ------------------------
|By and Between       |  | (Lessor)           |  | DBI Retail Ventures, LLC
|                     |  | (Lessee)           |  | Barbeques Galore, Inc.  
|                     | 
|Address of Premises: |  | 1401 Tar Heel Road
|                     |  |                    |  | Charlotte, NC           



OFFICE PLAN



LOGO



| |  |  |  |                
| |  |  |  | ---------------
| |  |  |  | /s/ [ILLEGIBLE]