INDUSTRIAL
REAL ESTATE LEASE


(MULTl-TENANT
FACILITY)


 


ARTICLE
ONE: BASIC TERMS


 


This
Article contains the
Basic Terms of
this Lease between
the Landlord and
Tenant named below.
Other Articles, Sections and Paragraphs
of the Leases
referred to in
this Article One explain and define
the Basic Terms and are to
be read in the
conjunction with the
Basic Terms.


 


	Section
    1.01.	Date
    of Lease: May
    15, 2014	 
	Section
    1.02.	Landlord
     (include legal
    entity):	York
    Nevada Management South, LLC dba Valley View Business Center
	Address
    of Landlord;	 	6280
                                         S. Valley View Blvd., Suite 106

        Las
        Vegas, NV 89118

	Section
    1.03.	Tenant
    (include legal entity):	Avalanche
                                         International, Corp.

        6625
        S. Valley View Blvd., Suite 208/210

        Las
        Vegas, NV 89118

	Section
    1.04.	Property:
                                         The property
                                         of the
                                         Landlord's multi-tenant real
                                         property development
                                         known as Valley
                                         View Business Center
                                         and described or depicted
                                         in Exhibit
                                         "A" (the "Project").
                                         The Project
                                         includes the land, the buildings,
                                         and all other
                                         improvements located on the land, and
                                         the common areas described
                                         in Paragraph 4.05. (a). The Property
                                         is (include street address,
                                         approximate square footage
                                         and description). Approximately
                                         4.560 square
                                         feet of office/warehouse space located at
                                         6625 S. Valley View Blvd., Suite 208/210,
                                         Las Vegas. NV  89118 in the County of Clark

         

	Section
    1.05	Lease
    Term:             Three (3) years Three (3) months
    beginning on June 1. 2014 or such other date as is specified in this Lease, and ending on August 31, 2017.
	Section
    1.06	Permitted
    Use:              (See Article Five)  General
    office/warehouse functions for a liquid smoke products company and other related lawful uses
	Section
    1.07.	Tenant’s
    Guarantor: (If none, so state) Todd Ault
	Section
    1.08.	Brokers:
                                         (See Articles Fourteen) (If none, so state)

        Landlords
        Broker: Heller Companies, LLC: Theresa Vinuya

        Tenant’s
        Broker: Independent Real Estate Professionals Las Vegas; Cody Starrett

	Section
    1.09	Commission
    Payable to Tenant’s Broker: (See Articles Fourteen) Under separate agreement
	Section
    1.10	Initial
    Security Deposit: (See Section 3.03) $24,806.40
	Section
    1.11 	Vehicle
    Parking Spaces Allocated to Tenant: (See Section 4.05) Fifteen (15)
	Section
    1.12	Rent
                                         and Other Charges Payable by Tenant:

        (a)    
        BASE RENT Five Thousand One Hundred Fifty-two dollars & 80/100 Dollars ($5,152.80) per month for the
        first Twelve months, as provided in Section 3.01, and shall be increased on the first day of the 13th,
        25th, 37th, 49th month(s) after the Commencement Date, either (i) as provided in Section
        3.02, or (ii) 4% fixed(If (ii) is completed, then (i) and Section 3.02 are inapplicable)

        (b)                  
        OTHER PERIODIC PAYMENTS:(i) Real Property Taxes (See Section 4.02); (ii) Utilities (See Section 4.03); (iii) Insurance
        Premiums (See Section 4.04); (iv) Tenant's Initial Pro Rata Share of common Area expense 3.78 % (See Section 4.05); (v)
        Impounds for Insurance Premiums and Property Taxes (See Section 4.08); (vi) Maintenance, Repairs and Alterations (See
        Article Six).

	Section
    1.13	Landlord's
    Share of Profit on Assignment or Sublease: (See Section 9.05) One Hundred Percent (100%) of the Profit (the Landlord's
    Share").
	Section
    1.14	Riders:
                                         The following Riders are attached to and made part of this Lease: (If none, so state)

        Exhibit
        A

        Exhibit
        B

        Option
        to Extend Lease Term

        Guaranty
        of Lease

        Duties
        Owed a Nevada Real Estate Licensee (2)

        Acknowledgement
        of NNN Charges

        Rules
        & Regulations



 




    	 



    	 



    

 


ARTICLE
TWO: LEASE TERM


 


Section
2:01 Lease, of Property For Lease Term. Landlord leases the Property to Tenant and Tenant leases the Property from Landlord
for the Lease Term. The Lease Term is for the period stated in section 1.05 above and shall begin and end on the date specified
in Section 1.05 above, unless the beginning or end of the Lease Term is changed under any provision of the Lease. The “Commencement
Date" shall be the date specified in Section 1.05 above for the beginning of the Lease Term, unless advanced or delayed under
any provision of this Lease.


 


Section
2:02. Delay in Commencement. Landlord shall not be liable to Tenant if Landlord does not deliver, possession of the Property
to Tenant on the Commencement Date. Landlord's non-delivery of the Property to Tenant on that date shall not affect this Lease
or the obligations of Tenant under this Lease except that the Commencement Date shall be delayed until Landlord delivers possession
of the Property to Tenant and the Lease Term shall be extended for a period of time equal to the delay in delivery of possession
of the Property to Tenant, plus the number of days1necessary to end the Lease Term on the last day of a month. If Landlord does
not deliver possession of the Property to Tenant within sixty (60) days after the Commencement Date, Tenant may elect to cancel
this Lease by giving written notice to Landlord Within ten (10) days after the sixty (60) day period ends. If Tenant gives such
notice, the Lease shall be canceled and neither Landlord nor Tenant shall have any further obligations to the other. If Tenant
does not give such notice, Tenant's rights to cancel the Lease shall expire and the Lease Term shall commence upon the delivery
of possession of the Property to Tenant. If delivery of possession of the Property to Tenant is delayed, Landlord and Tenant shall,
upon such delivery, execute an amendment to this Lease setting forth the actual Commencement Date and expiration date of the Lease.
Failure to execute such amendment shall not affect the actual Commencement date and expiration date of the Lease.


 


Section.2:03
Early Occupancy. If Tenant occupies the Property prior to the Commencement Date, Tenant's occupancy of the Property shall
be subject' to all of the provisions of this Lease. Early occupancy of the Property shall not advance the expiration date of this
Lease. Tenant shell pay Base Rent and all other charges specified in this Lease for the early occupancy period.


 


Section
2.04. Holding Over. Tenant shall vacate the Property upon the expiration or earlier termination of this Lease Tenant shill
reimburse Landlord for and indemnify Landlord against all damages that Landlord incurs from Tenant's delay in vacating the Property.
If Tenant does not vacate the Property upon the expiration or earlier termination of the Lease and Landlord thereafter accepts
rent from Tenant, Tenant's occupancy of the Property shall be a "month-to-month tenancy, subject to all of the terms of this
Lease applicable to a month-to-month tenancy, except that the Base Rent then in effect shall, be increased by Fifty percent (50%).


 


ARTICLE
THREE: BASE RENT


 


Section
3.01.Time and Manner of Payment. Upon execution of this Lease, Tenant shall pay Landlord the Base Rent in the amount stated
in Paragraph l.12(a) above for the first month of the Lease Term. On the first day of the second month of the Lease Term and each
month thereafter, Tenant shall pay Landlord the Base Rent, in advance, without offset, deduction or prior demand. The Base Rent
shall be payable at Landlord's address or at such other place as Landlord may designate in writing.


 


Section
3:02. Cost of Living Increases. The Base Rent shall be increased on each date (the “Rental Adjustment Date”)
stated in paragraph 1.12(a) above in accordance with the increase in the United States Department of Labor, Bureau of Labor Statics
and Consumer Price Index for All Urban Consumer (all items for the geographical Statistical Area in which the Property is located
on the basis of 1982-1984-100) (the “Index”) as follows:


 


(a)                
The Base Rent (the “Comparison Base Rent”) in effect immediately before each Rental Adjustment Date shall be increased
by the percentage that the Index has increased from the date (the “Comparison Date”) on which payment of the Comparison
Base Rent began through the month in which the applicable Rental Adjustment Date occurs. The Base Rent shall not be reduced by
reason of such computation. Landlord shall notify Tenant of each increase by written statement, which shall include the Index
for the applicable Comparison Date, the Index for the applicable Rental Adjustment Date, the percentage increase between those
Indices, and the new Base Rent. Any increase in the Base Rent provided for in this Section 3.02 shall be subject to any minimum
or maximum increase, if provided for in Paragraph 1.12(a).


 


(b)                
Tenant shall pay the new Base Rent from the applicable Rental Adjustment Date until the next Rental Adjustment Date. Landlord’s
notice may be given after the applicable Rental Adjustment Date of the increase, and Tenant shall pay Landlord the accrued rental
adjustment for the months elapsed between the effective date of the increase and Landlord’s notice of such increase within
ten (10) days after Landlord’s notice. If the format or components of the Index are materially changed after the Commencement
Date, Landlord shall substitute an index which is published by the Bureau of Labor Statistics or similar agency and which is most
nearly equivalent to the Index in effect on the Commencement Date. The substitute index shall be used to calculate the increase
in the Base Rent unless Tenant object to such index in writing within fifteen (15) days after receipt of Landlord’s notice.
If Tenant objects, Landlord and Tenant shall submit the selection of the substitute index for binding arbitration in accordance
with the rules and regulations of the American Arbitration Association at its office closest to the Property. The costs of the
arbitration shall borne equally by Landlord and Tenant. 


 


Section
3.03. Security Deposit; Increases.


(a)                
Upon the execution of this lease, Tenant shall deposit with Landlord a cash Security Deposit in the, amount set forth in Section
1:10 above. Landlord may apply all or part of the Security Deposit to any unpaid rent or other charges due from Tenant or to cure
other defaults of Tenant. If Landlord uses any part of the Security Deposit, Tenant shall restore the Security Deposit to its
full amount within ten (10) days after Landlord's written request. Tenants failure to do so shall be a material default under
this Lease. No interest shall be paid on the Security Deposit. Landlord shall not be required to keep the Security Deposit separate
from its other accounts and no trust relationship is created with respect to the Security Deposit.


(b)                
Each time the Base Rent is increased, Tenant shall deposit additional funds with Landlord sufficient to increase the Security
Deposit to au 'amount which bears the same relationship to the adjusted Base Rent as the initial Security Deposit bore to the
initial Base Rent.!


 


Section3:04.
Termination; Advance Payments. Upon termination of this Lease under Article Seven (Damage and Destruction); Article Eight
(Condemnation) or any other termination not resulting from Tenant's default, and after Tenant has vacated the Property in the
manner required by this Lease, Landlord shall refund or credit to Tenant (or Truant’s successor;) the unused·:portion
of the Security Deposit, any advance rent or other advance payments made by Tenant to Landlord, and any amounts paid for real
property taxes and other reserves which apply to any time periods after termination of the Lease.


 



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ARTICLE
FOUR: OTHER CHARGES PAYABLE BY TENANT


 


Section
4.01. Additional Rent. All charges payable by Tenant other than Base Rent are called "Additional Rent". Base
Rent. . The term 'rent" shall mean Base Rent and Additional Rent.


 


Section
4:02. Property Taxes.


(a)                
Real Property Taxes. Tenant shall pay all real property taxes on the Property (include: any fees, taxes or assessments
against, or as a result of, any tenant improvements installed on the Property by or for the benefit of Tenant) during the Lease
Term Subject to Paragraph 4.02(c) and Section 4.08 below, such payment shall be made at least ten (10) days prior to the delinquency
date of the taxes. Within such ten (10) day period, Tenant shall furnish Landlord::With, satisfactory evidence that the real property
taxes have been paid. Landlord shall reimburse Tenant for any real property taxes, paid by Tenant covering any period of time
prior to or after the Lease Term. If Tenant fails to pay the real property taxes when due, Landlord may pay the taxes and Tenant
shall reimburse Landlord for the amount of such tax payment as Additional Rent.


(b)                
(b) Definition of "Real Property Tax." "Real property tax" means: (i) any fee, license fee,
license tax, business license fee, commercial rental tax, levy, charge, assessment, penalty or tax imposed by any taxing authority
against the Property; (ii) any tax on the Landlord's right to receive, or the receipt of, rent or income from the Property or
against Landlord's business of leasing the Property; (iii) any tax or charge for fire protection, streets, sidewalks, road maintenance,
refuse or other services provided to the Property by any governmental agency; (iv) any tax imposed upon this transaction or, based1upon
a re-assessment of the Property due to change of ownership, as defined by applicable law, or other transfer of all o part1of Laudl01d's
interest in the Property; and (v) any charge or fee replacing any tax previously included within the definition of real property
tax. "Real Property Tax" does not, however, include Landlord’s· federal or state income, franchise, inheritance
or estate taxes. 


(c)                
Joint Assessment. If the Property is not separately assessed, Landlord shall reasonably: determine Tenant's share of the
real property tax payable by Tenant under Paragraph 4.02 (a) from the assessor's worksheets or other reasonably available information.
Tenant shall pay such share to Landlord within fifteen (15) days after receipt of Landlord’s written statement.


(d)                
Personal Property Taxes.


                                         (i)                       
Tenant shall pay all taxes charged against trade fixtures, furnishings, equipment or any other personal property belonging to
Tenant. Tenant shall try to have personal property taxed separately from the Property.


                                        
(ii)                       
If any of Tenant's personal property is taxed with the Property, Tenant shall pay Landlord the taxes for the personal property
within fifteen (15) days after Tenant receives a written statement from Landlord for such personal property taxes.


 


Section
4:03. Utilities. Tenant shall pay, directly to the appropriate supplier, the cost of all natural gas, heat light, power;
seer services telephone, water, refuse disposal and other utilities and services supplied to the Property. However; if any services
or utilities are jointly metered with other property, Landlord shall make a reasonable determination of Tenant's proportionate
share of the cost of such utilities and services and Tenant shall pay such share to Landlord within fifteen (15) days after receipt
of Landlord’s written statement.


 


Section
4.04. Insurance Policies.


(a)                
Liability Insurance. During the Lease Term, Tenant shall maintain policy of commercial general liability insurance (sometimes
known as broad form comprehensive general liability insurance) insuring Tenant against liability for bodily injury, property damage
(eluding loss of use of property) and personal injury arising out of the operation, use or occupancy of the Property. Tenant shall
name Landlord as additional insured under such policy. The initial amount of such policy shall be One Million Dollars ($1,000,000)
per occurrence and shall be subject to periodic increase based upon inflation, increased liability awards, recommendation of Landlord’s
professional insurance advisers and other relevant factors. The liability insurance obtained by Tenant under this Paragraph 4.04(a)
shall (i) be primary and non-contributing (ii) contain cross-liability endorsements; and (iii) insure Landlord against Tenant's
performance under Section 5.05, if the matters giving rise to the indemnity under section 5.05 result from the negligence of Tenant.
The amount and coverage of such insurance shall not limit Tenant's liability nor relieve Tenant of any other obligation under
this. Lease. Landlord may also obtain comprehensive public liability insurance in an amount and with coverage determined by Landlord
insuring Landlord against liability arising out of ownership, operation, use or occupancy of the Property. The policy obtained
by the ··Landlord, shall not be contributory and shall not provide primary insurance.


(b)                
Property and Rental Income Insurance. During the Lease Term, Landlord shall maintain policies of insurance covering loss
of or damage to the Property in the full amount of its replacement value. Such policies shall contain inflation Guard Endorsement
and shall provide protection against all 'perils included within the classification of fire, extended coverage; vandalism, malicious
mischief, special extended perils (all risk), sprinkler leakage and any other perils that Landlord deems reasonably necessary.
Landlord shall have the right to obtain flood and earthquake insurance if required by any lender holding• a security interest
in the Property. Landlord shall not obtain insurance for Tenant's fixtures or equipment or building improvements installed by
Tenant on the Property. During the Lease Term, Landlord shall also maintain a rental, income insurance, policy, with loss payable
to Landlord, in an amount equal to one year's Base Rent, plus estimated real property taxes and insurance premiums. Tenant shall
be liable for the payment of any deductible amount under Landlord or ' Tenant's insurance1 policies maintained pursuant to this
Section 4.04, in an amount not to exceed Ten Thousand Dollars ($'10,000) Tenant, shall not do or permit anything to be done which
invalidates any such insurance policies.


(c)                
Payment of Premiums. Subject to Section 4.08, Tenant shall pay all premiums for the insurance policies described in Paragraph
4:04(a) and (b) (whether obtained by Landlord or Tenant) within fifteen (15) days after Tenant's receipt of a copy of the .premium
statement or other evidence of the amount due, except Landlord shall pay all premiums for non-primary comprehensive public liability
insurance which Landlord elects to obtain as provided in Paragraph 4.04(a). For insurance policies maintained by Landlord, which
cover improvements on the entire Project, Tenant shall pay Tenant's prorated' share of the premiums, in accordance with the formula
in Paragraph 4.05(e) for determining Tenant's share of Common Area costs. If insurance policies maintained by Landlord cover improvements:
on real property other than the Project, Landlord shall deliver to Tenant a statement of the premium applicable to the Property
showing in reasonable detail how Tenant's share of the premium was computed. If the Lease Term expires before the expiration of
an insurance policy, maintained by Landlord, Tenant shall be liable for Tenant's prorated share of the insurance, premiums. Before
the Commencement Date, Tenant shall deliver to Landlord a copy of any policy of insurance; which Tenant is required to maintain
under this Section 4.04. At least thirty (30) days prior to the expiration of any such policy, Tenant shall deliver to Landlord
a renewal of such policy. As an alternative to providing a policy of insurance, Tenant shall have the right to provide Landlord
'a certificate of insurance, executed by an authorized officer of the insurance company, showing that the insurance which Tenant
is required to maintain under this Section 4.04 is in full force and effect and containing such other , information which Landlord
reasonably requires.



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(d)                
General Insurance Provisions


                                          
(i)                       
Any insurance that Tenant is required to maintain under this Lease shall include a provision which requires the insurance carrier
to give Landlord not less than thirty (30) days written notice prior to any cancellation or modification of such coverage.


                                        
(ii)                       
If Tenant fails to delivery policy, certificate or renewal to landlord required under this Leases within the prescribed time period
or if any such policy is cancelled or modified during the Lease Term without Landlord's consent, Landlord may obtain such insurance,
in which case Tenant shall reimburse Landlord for the cost of such insurance: within fifteen (15) days 'after receipt of a statement
that indicates the cost of such insurance.


                                       
(iii)                       
(iii) Tenant shall maintain all insurance required under this Lease with companies holding a "General Policy Rating"
of A-l2 or better, as set forth in the most current issue of "Best Key Rating Guide" Landlord and Tenant acknowledge
the insurance markets are rapidly changing and that insurance in the form of amounts described in this .Section 4:04 may not be
available in the future. Tenant acknowledges that the insurance described in this Section 4.04 is for the primary benefit of Landlord
at any time during the Lease Term, Tenant is unable to maintain the insurance required under the Lease, Tenant shall nevertheless
maintain insurance coverage which is customary and commercially reasonable in the insurance industry for Tenant's type of business,
as that coverage may change from time to time. Landlord makes no representation as to the adequacy of such insurance to protect
Landlord or Tenant's interests. : Therefore Tenant shall obtain any such additional property or liability insurance that Tenant
deems necessary to protect Landlord and Tenant.


                                      
(iv)                     (iv) Unless
prohibited under any applicable insurance policies maintained, Landlord and Tenant each hereby waive any all rights of recovery
against the other, or against the officers, employees, agents or representatives of the other, if or loss of or damage to its
property or the property of others under its control, if such loss or damage is covered by any insurance, policy in force (whether
or not described in this Lease) at the time of such loss or damage. Upon obtaining the required policies of insurance, Landlord
and Tenant shall give notice to the insurance carriers of this mutual waiver of subrogation 


 


Section
4:05. Common Areas; Use, Maintenance and Costs.


 


(a)
Common Areas. As used in this Lease, "Common Areas" shall mean all areas within Project, which are available
for the common use of tenants of the Project and which are not leased or held for the exclusive use of Tenant or other Tenants,
including, but not limited to, parking areas, driveways, sidewalks, loading areas access roads, corridors, landscaping and planted
areas. Landlord, from time to time, may change the size, location, nature and use of any of the Common Areas, convert Common Areas
into leasable areas, construct additional parking facilities (including- parking structures) in the Common Areas, an increase
or decrease Common Area land and/or facilities. Tenant acknowledges that such activities may result in inconvenience to Tenant.
Such activities and changes are permitted if they do not materially affect Tenant's use, of the Property,


(b)
Use of Common Areas. Tenant shall have the nonexclusive right (in common with other tenants and all others to. whom Landlord
has granted or may grant such nights) to use the Common Areas for the purposes intended, subject to such reasonable rules and
regulations as Landlord may establish from time to time. Tenant shall abide by such rules and regulations and hall use its best
effort to cause others who use the Common Areas with Tenant's express or implied permission to abide by Landlords rules and regulations.
At any time, Landlord may close any Common Areas.to perform any acts the Common Areas as, in Landlord's judgment, are desirable
to improve the Project Tenant shall not interfere with the rights of Landlord, other tenants or any other person entitled to use
the Common Areas.


(c)
Specific Provision re: Vehicle Parking. Tenant shall be entitled to use the number of vehicle parking spaces in the Project
allocated to Section 1.11of the Lease without paying any additional rent. Tenant's parking shall not be reserved and shall be
limited to vehicles no larger than standard size automobiles or pickup utility vehicles. Tenant shall not cause large trucks or
other large vehicles to be parked within the Project or on the adjacent public streets. Temporary parking of large delivery vehicles
m the Project y be permitted by the rules and regulations established by Landlord. Vehicles shall be parked only in stripe parking
spaces and not in driveways, loading areas or other locations not specifically designated for parking. Handicapped spaces shall
only be used by those legally permitted to use them. If Tenant parks more vehicles '.11,the parking area than the number set forth
in Section 1.11 of this Lease, such conduct shall be a material breach of this Lease.: In addition to Landlord's other remedies
under the Lease, Tenant shall pay a daily charge determined by Landlord' for each such additional vehicle.


(d)
Maintenance in Common Areas. Landlord shall maintain the Common Areas in good order condition and repair and shall operate
the Project, in Landlord's sole discretion, as a first-class industrial/commercial real property development. Tenant shall pay
Tenant's pro rata share (as determined below) of all costs incurred by Landlord for the operation and maintenance of the Common
Areas. Common Areas costs include, but are not limited to costs and expenses for the following: gardening and landscaping; utilities,
water and sewage charges; maintenance of signs (other than tenants signs); premiums for liability; property damage, fire and other
types of casualty insurance on the Common Areas and workers compensation insurance; all property taxes and assessments levied
on or attributable to the Common Areas and all Common Area improvements; all personal property taxes levied on or attributable
to personal property used in connection with the Common Areas; straight-line depreciation on personal property owned by Landlord
which is consumed in the operation or maintenance of the Common Areas; rental or lease payments paid by Landlord for rented or
leased personal property used in the operation or maintenance cleaning, refuse removal, security and similar items; reserves for
roof replacement and exterior painting and other appropriate reserves;. and a reasonable allowance to Landlord for Landlord's
supervision of the Common Areas (not to exceed five percent (5%) of the gross rents of the Project for the calendar year). Landlord
may cause any or all of such services to be provided by third parties and the cost of such services shall be included in Common
Areas costs. Common Area costs shall not include depreciation of real property that forms part of the Common Areas.


(e)
Tenant's Share and Payments. Tenant shall pay Tenant's annual pro rata share of all Common Area Costs (prorated' for any
fractional month) upon written notice from Landlord that such costs are due and payable, and in any event prior, to delinquency.
Tenant's pro rata share shall be calculated by dividing the square foot area of the Property, as set forth in Section 1.04 of
the Lease by the aggregate square foot area of the Project which is leased or held for lease by tenants, as of the date on which
the computation is made. Tenant's initial pro rata share is set out in Paragraph l.12(b).·Any changes in the Common Area
costs and/or the aggregate area of the Project leased or held for lease during the Lease Term shall be effective on the first
day of the month after such change occurs. Landlord may, at Landlord's election, estimate in advance and charge to Tenant as Common
Area costs all real property taxes for which Tenant is liable under Section 4.02 of the Lease, all insurance premiums for which
Tenant is liable under Section 4.04 of the Lease, all maintenance and repair costs for, which Tenant is liable under Section 6.04
of the Lease, and all other Co=on Area costs payable by Tenant hereunder. At Landlords election, such Statements of estimated
Common Area costs shall be delivered monthly, quarterly or at any other periodic intervals to be designated by Landlord. Landlord
may adjust such estimates at any time based upon Landlord's experience and reasonable anticipation of costs. Such adjustments
shall be effective as of the next rent payment date after notice to Tenant. .Within sixty (60) days after the end of each calendar
year of the Leases Term, Landlord shall deliver to Tenant a statement prepared in accordance with generally accepted accounting
principles setting forth, in reasonable detail, the Common Area costs paid or incurred by Landlord during the preceding calendar
year and Tenant's pro rata share. Upon receipt of such statement, there shall be an adjustment between Landlord and Tenant, with
payment to or credit given by Landlord; (as the case may be) so that Landlord shall receive the entire amount of Tenant's share
of such costs and expenses for such period.


 



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Section
4.06. Late Charges. Tenant's failure to pay rent promptly may cause Landlord to incur unanticipated costs. The amounts
of such costs are impractical or extremely difficult to ascertain. Such costs may: include, but are not limited to, processing
and accounting charges and late charges that may be imposed on Landlord by any ground lease, mortgage or trust deed encumbering
the Property. Therefore, if Landlord does not receive any rent payment within ten (10) days after it becomes due, Tenant shall
pay Landlord a late charge equal to ten percent (10%) of the overdue amount. The parties agree that such late charge represents
a fair and reasonable estimate of cost Landlord will incur by reason of such late payment.


 


Section
4.07. Interest on Past Due Obligations. Any amount owed by Tenant to Landlord which is not paid when due shall bear interest
at the rate of fifteen percent (15%) per annum from the due date of such amount. However, interest shall not be payable on late
charges to be paid by Tenant under this Lease. The payment of interest on such amounts shall not excuse or cure any default by
Tenant under this Lease. If the interest rate specified in this Lease is higher than the rate permitted by law, the interest rate
is hereby decreased to the maximum legal interest rate permitted by law.


 


Section
4.08. Impounds for Insurance Premiums and Real Property Taxes. If requested by any ground lesser or lender to whom Landlord
has granted a security interest in the Property, or if Tenant is more than ten (10) days late in the payment of rent more than
once in any consecutive twelve (12) month period, Tenant shall pay Landlord a sum equal to one-twelfth (1/12) of the annual real
property taxes and insurance premiums payable by Tenant under this Lease, together with each payment of Base Rent. Landlord shall
hold such payments in a non-interest bearing impound account. If unknown, Landlord shall reasonably estimate the amount of real
property taxes and insurance premiums when due. Tenant shall pay any deficiency of funds in the impound account to Landlord upon
written request. If Tenant defaults under this Lease, Landlord may apply any funds in the impound account to any obligation then
due under this Lease.


 


ARTICLE
FIVE: USE OF PROPERTY


 


Section
5.01. Permitted Uses. Tenant may use the Property only for the Permitted Uses set forth in Section 1.06 above.


 


Section
5.02. Manner of Use. Tenant shall not cause or permit the Property to be used in any way that constitutes a violation of
any law, ordinance, or governmental regulation or order, which annoys or interferes with the rights of tenants of the Project,
or which constitutes a nuisance or waste. Tenant shall obtain and pay for the permits, including a Certificate of Occupancy, required
for Tenant’s occupancy of the Property and shall promptly take all actions necessary to comply with all applicable statutes,
ordinances, rules, regulations, orders and requirements regulating the use by Tenant of the Property, including the Occupational
Safety and Health Act.


Section
5.03. Hazardous Materials. As used in the Lease, the term “Hazardous Material” means any flammable items, explosives,
radioactive materials, hazardous or toxic substances, material or waste or related materials, including any substances defined
as or included in the definition of “hazardous substances”, “hazardous wastes”, “hazardous materials”,
or “toxic substances” now or subsequently regulated under any applicable federal, state, or local laws or regulations,
including without limitation petroleum-based products, paints, solvents, lead, cyanide, DDI, printing inks, acids, pesticides,
ammonia, compounds and other chemical products, asbestos, PCBs and similar compound and including any different products and materials
which are subsequently found to have adverse effects on the environment or the health and safety of person. Tenant shall not cause
or permit any Hazardous Material to be generated, produced, brought upon, used, stored, treated or disposed of in or about the
Property by Tenant, its agents, employees, contractors, sub lessees or invitees without the prior written consent of Landlord.
Landlord shall be entitled to take into account such other factors or facts as Landlord may reasonably determine to be relevant
in determining whether to grant or withhold consent to Tenants proposed activity with respect to Hazardous Material. In no event,
however, shall Landlord be required to consent to the installation or use of any storage tanks on the Property.


 


Section
5:04. Signs and Auctions. Tenant shall not place any signs on the Property without Landlord's prior written Consent. Tenant
shall not conduct or permit any auctions or sheriff s sales at the Property.


 


Section
5.05. Indemnity. Tenant shall indemnify Landlord against and hold Landlord harmless from any and all costs or liability
arising from: (a) Tenant’s use of the Property; (b) the conduct of Tenant’s business or anything else done or permitted
by Tenant to be done in or about the Property, including any contamination of the Property or any other property resulting from
the presence or use of Hazardous Material caused or permitted by Tenant; (c) any breach or default in the performance of Tenant’s
obligations under this Lease; (d) any misrepresentation or breach of warranty by Tenant under this Lease; or (e) other acts or
omissions of Tenant. Tenant shall defend Landlord against any such costs, claims or liability at Tenant’s expense with counsel
reasonably acceptable to Landlord or, at Landlord’s election, Tenant shall reimburse Landlord for any legal fees or costs
incurred by Landlord in connection with any such claim. As a material part of the consideration to Landlord, Tenant assumes all
risk of damage to property or injury to persons in or about the property arising from any cause, and Tenant hereby waives all
claims in respect thereof against Landlord, except for any claim arising out of Landlord’s gross negligence or willful misconduct.
As used in this Section, the term “Tenant” shall include Tenant’s employees, agents, contractors and invitees,
if applicable.


 


Section
5.06. Landlord's Access. Landlord or its agents may enter Property at all reasonable times to show the


Property
to potential buyers, 'investors or tenants or other parties; to do any other act or to inspect and conduct tests in order to''
monitor Tenant's compliance with all applicable environmental laws governing the presence and use of Hazardous Material; or for
any other purpose Landlord deems necessary. Landlord shall give Tenant prior notice of such entry, except in the, case of an emergency.
Landlord may place customary "For Sale" or "For Lease" signs on the Property.


 


Section
5.07. Quiet Possession. If Tenant pays the rent and complies with all other terms of this Lease, Tenant may occupy and
enjoy the Property for the full Lease Term, subject to the provisions of this Lease.


 


ARTICLE
SIX: CONDITION OF PROPERTY; MAINTENANCE, REPAIRS AND ALTERATIONS


 


Section
6.01. Existing Conditions. Tenant accepts the Property in its condition as of the execution of the Lease, subject to all
recorded matters, laws, ordinances, and governmental regulations and orders. Except as provided herein, Tenant acknowledges that
neither Landlord nor any agent of Landlord has made any representation as to the condition of the Property or the suitability
of the Property for Tenant’s intended use. Tenant represents and warrants that Tenant has made it own inspection of an inquiry
regarding the condition of the Property and its not relying on any representations of Landlord or any Broker with respect thereto.
If Landlord or Landlord’s Broker has provided a Property Information Sheet or other Disclosure Statement regarding the Property,
a copy is attached as an exhibit to the Lease.


 



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Section
6.02. Exemption of Landlord from Liability. Landlord shall not be liable for any damage or injury to the person, business
(or any loss of income there from), goods, wares, merchandise or other property of Tenant, Tenant’s employees, invitees,
customers or any other person in or about the Property, whether such damage or injury is caused by or results from; (a) fire,
steam, electricity, water, gas or rain; (b) the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances,
plumbing, air condition or lighting fixtures or any other cause; (c) conditions arising in or about the Property or upon other
portions of the Project, or from other sources or places; or (d) any act or omission of any other tenant of the Project. Landlord
shall not be liable for any such damage or injury even though the cause of or the means of repairing such damage or injury are
not accessible to Tenant. The provisions of this Section 6.02 shall not, however, exempt Landlord from liability for Landlord’s
gross negligence or willful misconduct.


 


Section
6.03. Landlord’s Obligations.


(a)                
Except as provided in Article Seven (Damage or Destruction) and Article Eight (Condemnation), Landlord shall keep the following
in good order, condition and repair: the foundations, exterior walls and roof of the Property (including painting the exterior
surface of the exterior walls of the Property not more often than once every five (5) years, if necessary) and all components
of electrical, mechanical, plumbing, heating and air conditioning systems and facilities located in the Property which are concealed
or used in common by tenants of the Project. However, Landlord shall not be obligated to maintain or repair windows, doors, plate
glass or interior surfaces of exterior walls. Landlord shall make repairs under this Section 6.03 within a reasonable time after
receipt of written notice from Tenant of the need for such repairs.


(b)                
Tenant shall pay or reimburse Landlord for all costs Landlord incurs under Paragraph 6.03(a) above as Common Area costs as provided
for in Section 4.05 of the Lease. Tenant waives the benefit of any statute in effect now or in the future which might give Tenant
the right to make repairs at Landlord’s expense or to terminate this Lease due to Landlord’s failure to keep the Property
in good order, condition and repair.


 


Section
6.04. Tenant's Obligations.


(a)                
Except as provided in Section 6.03, Article Seven (Damage or Destruction) and Article Eight (Condemnation), Tenant shall keep
all portions of the Property (including structural, nonstructural, interior, systems and) in good order, condition repair (including
interior repainting and refinishing, as needed). If any portion of the Property or any system or equipment in the Property which
Tenant is obligated to repair cannot be fully repaired or restored, Tenant shall promptly replace such portion of the Property
or system or equipment in the Property, regardless of whether the benefit of such replacement extends beyond the Lease Term; but
if the benefit or useful life of such replacement extends beyond the Lease Term(as such term may be extended by exercise of any
options), the useful life of such replacement shall be prorated over the remaining portion of the Lease Term (as extended), and
Tenant shall be liable only for that portion of the cost which is applicable to the Lease Term (as extended). Tenant shall maintain
a preventive maintenance contract providing for the regular inspection and maintenance of heating and air conditioning system
by a licensed heating and air conditioning contractor, unless Landlord maintains such equipment under Section 6.03 above. If any
part of the Property or Project is damaged by any act or omission of Tenant, Tenant shall pay Landlord the costs of repairing
or replacing such damaged property, whether or not Landlord would otherwise be obligated to pay the cost maintaining or repairing
such property. It is the intention of Landlord and Tenant that at all times Tenant shall maintain the portions of the Property
which Tenant is obligated to maintain in an attractive, first-class and fully operative condition.


(b)                
Tenant 'shall fulfill all of Tenant's obligations under this Section 6.04 at Tenant's sole expense. If Tenant: fails to maintain,
repair or replace the Property as .required by this Section 6.04, Landlord may, upon ten (10) days’ prior notice to Tenant(except
that no notice shall be required in the case of an emergency), enter the Property and perform such maintenance or rei)air (including
replacement, as needed) on behalf of Tenant. In such case, Tenant shall reimburse Landlord for all costs incurred in performing
such maintenance or repair in immediately upon demand.


 


Section
6:05. Alterations, Additions, and Improvements.


(a)
Tenant shall not take any alterations, additions, or improvements to the Property without Landlord's prior written consent, except
for non-structural alterations, which do not exceed Ten Thousand Dollars ($10,000) in cost cumulatively over the Lease Teem and
which are not visible from the outside of any building of which the Property is part. Landlord may require Tenant to provide demolition
and/or lien and completion bond.in forms and amount satisfactory to Landlord Tenant hall promptly remove any alterations, additions,
or improvements constructed in violation of this Paragraph 6.05(a) upon Landlord's written request. All alterations, additions
and improvements shall be done in a good and workmanlike manner, in conformity with all applicable laws and regulations, and by
a contractor approved by Landlord.' Upon completion of any such work, Tenant shall provide Landlord with "as built"
plans, copies of all construction contracts, and 'proof of payment for all labor and materials.


(b)
Tenant shall pay hen due all claims for labor and material furnished to the Property. Tenant shall give Landlord at least twenty
(20) days' prior written notice of the commencement of any work on the Property regardless of whether Landlord's consent to such
work is required. Landlord may elect to record and post notices of no-re possibility on the Property.


 


Section
6.06. Condition upon Termination. Upon the termination of the Lease, Tenant shall surrender the Property to Landlord, broom
clean and in the same condition as received except for ordinary wear and tear which Tenant was not otherwise obligation to remedy
under any provision of this Lease. However, Tenant shall not be obligated to repair any damage that Landlord is required to repair
under Article Seven (Damage or Destruction). In addition, Landlord may require Tenant to remove any alterations; additions or
improvements (whether or not made with Landlord's consent) prior to the expiration of the Lease and to restore the Property to
its prior condition, all at Tenant's expense. All alterations, additions and improvements which Landlord has not required Tenant
to remove shall become Landlord's property and shall be surrendered to Landlord upon the expiration or earlier termination of
the Lease, except that Tenant may remove any of Tenant s machinery or equipment which can be removed without material damage to
the Property. Tenant shall repair, at Tenant’s expenses, any damage to the Property caused by the removal of any such machinery
or equipment. In no event, however, shall Tenant .remove any of the following materials or equipment (which shall be deemed Landlord's
prop) without Landlord’s prior written consent any power wiring or power panels; lighting or lighting fixtures; wall coverings;
drapes; blinds or other window coverings; carpets or other floor coverings; heaters, air conditioners or any other heating or
air conditioning equipment; fencing or security gates; or other similar building operating equipment and decorations.


 



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ARTICLE
SEVEN: DAMAGE OR DESTRUCTION


 


Section
7.01. Partial Damage to Property.


 


(a)
Tenant shall notify Landlord in writing immediately upon the occurrence of any damage to the Property If the Property is only
pally damaged (i.e., less than fifty percent (50%) of the Property is untenantable as a result of such damage or less than fifty
percent (50%) of Tenant's operations are materially impaired) and if the proceeds received by Landlord' from the insurance policies
described in Paragraph' 4.04(b) are sufficient to pay for the necessary repairs, this Lease shall remain in effect and Landlord
shall repair the damage as soon a reasonably possible Landlord may elect (but is not required) to repair any damage to Tenant's
fixtures, equipment, or improvements.


(b)
If the insurance proceeds received by Landlord are not sufficient to pay the entire cost of repair, or if the cause of the damage
is not covered by the insurance policies which Landlord maintains under Paragraph 4.04(b), Landlord may elect either to (i) repair
the damage as soon as possible, in which case this Lease shall remain in full force and effect, or (ii) terminate this Leases
as of the date of the damage occurred. Landlord shall notify Tenant within thirty (30) days after receipt of notice of the occurrence
of the damage whether Landlord elects to repair the damage or terminate the Lease. If Landlord elects to repair the damage, Tenant
shall pay the Landlord the "deductible amount" (if any) under Landlord's insurance policies and, if the damage was due
to an act or omission of Tenant, or Tenant's employees, agents, contractors or invitees, the difference between the actual cost
of repair and any insurance proceeds received by Landlord. If Landlord elects to terminate the Lease, Tenant may elect to continue
this Lease in full force and effect, in which case Tenant shall repair any damage to the Property and any building in which the
Property is located. Tenant shall pay the cost of repairs, except that upon satisfactory completion of such repairs, Landlord
shall deliver to Tenant any insurance proceeds received by Landlord for the damage repaired by Tenant. Tenant shall give Landlord
written notice of such election within ten (10) days after received Landlord’s termination notice


(c)
If the damage to the Property occurs during the last six (6) months of the Lease Term and such damage will require more than
thirty (30) days to repair, either Landlord or Tenant may elect to terminate this Lease as of the date the damage occurred,,
regardless of the sufficiency of any insurance proceeds. The party electing to terminate this Lease shall give written
notification to the other party of such election within thirty (30) days after Tenant's notice to Landlord of the occurrence
of the damage.


 


Section
7.02. Substantial or Total Destruction. If the Property is substantially or totally destroyed by any cause whatsoever (i.e.,
the damage to the Property is greater than partial damage as described in Section 7.01), and regardless of ·whether Landlord;
receives insurance proceeds, this Lease shall terminate as of the date the destruction occurred Notwithstanding the preceding
sentence, if the Property can be rebuilt within six (6) months after the date of destruction, Landlord may elect to rebuild the
Property at Landlord's own expense, in which case this Lease shall remain in full force and effect. Landlord shall notify. Tenant
of such election within thirty (30) days after Tenant's notice of the occurrence of total or substantial destruction. If Landlord
so elects, Landlord shall rebuild the Property at Landlord's sole expense, except that if the destruction was caused by an act
or omission of Tenant, Tenant shall pay Landlord the difference between the actual cost of rebuilding and any insurance proceeds
received by Landlord.


 


Section
7.03. Temporary Reduction of Rent. If the Property is destroyed or damaged and Landlord or Tenant repairs or restores the
Property pursuant to the provisions of this Article Seven, any rent payable during the period of such damage, repair and/or restoration
shall be reduced according to the degree, if any, to which Tenant's use of the Property is impaired! However, the reduction shall
not exceed the sum of one year's payment of Base Rent, insurance premiums and real ' property taxes. Except for such possible
reduction in Base Rent, insurance premiums and real property taxes, Tenant shall ' not be entitled to any compensation, reduction,
or reimbursement from Landlord as a result of any damage, destruction, repair, or restoration of or to the Property.


 


Section
7.04. Waiver. Tenant waives the protection of any statute, code or judicial decision, which grants a tenant the right to,
terminate a lease in the event of the substantial or total destruction of the Leased property. Tenant agrees that the provisions
of Section 7.02 above shall govern the rights and obligations of Landlord and Tenant in the event of any substantial or total
destruction to the Property.


 


ARTICLE
EIGHT CONDEMNATION


 


If
all or any portion of the Property is taken under the power of eminent domain or sold under the threat of that power (all of which
are called "Condemnation"), this Lease shall terminate as to the part taken or sold on the date the condemning authority
takes title or possession, whichever occurs first. If more than twenty percent (20%) of the floor area of the building m which
the Property is located, which is located on the Property, is taken, either Landlord or Tenant may terminate this Lease as of
the date the condemning authority takes title or possession, by delivering written notice to the other within ten (10) days after
receipt of written notice of such taking.(or in the absence of such notice, within ten (10) days after the authority takes title
or, possession). If neither Landlord nor Tenant terminates this Lease, this Lease shall remain in effect as to the portion of
the Property not taken, except that the Base Rent and Additional Rent shall be reduced in proportion to the reduction in the floor
area of the Property. Any Condemnation award or payment shall be distributed in the following order: (a) t to any ground lessor,
motgagee or beneficiary under a deed of trust encumbering the Property, the amount of its interest m the Property; (b) second,
to Tenant, only the amount of any award specifically designated for loss of or damage to Tenant's trade fixtures or removable
personal .property; and (c) third, to Landlord, the remainder of such award, whether as compensation for reduction m the value
of the leasehold, the taking of the fee, or otherwise. If this Lease is not terminated, Landlord shall repair any damage to the
Property caused by the Condemnation, except that Landlord shall not be obligated to repair any damage for which Tenant has been
reimbursed by the condemning authority. If the severance damages received by Landlord are not sufficient to pay for such repair,
Landlord shall have the right to either terminate this Lease, or make such repair at Landlord's expense.


 


ARTICLE
NINE: ASSIGNMENT AND SUBLETTING


 


Section
9.01 Landlord’s Consent Required. No portion of the Property or of Tenant's interest in this Lease may be acquired
by any1 other person or entity, whether by sale, assignment, mortgage, sublease, transfer, operation of law, or act of Tenant,
without Landlords prior written consent, except as provided in Section 9.02 below. Landlord has the right to grant or withhold
its consent: as provided in Section 9.05 below. Any attempted transfer without consent shall be void and, shall constitute a non-curable
breach of this Lease. If Tenant is a partnership, any cumulative transfer of more than twenty percent (20%) of the partnership
interests shall require Landlord's consent. If Tenant is a corporation, any change in the ownership of a controlling interest
of the voting stock of the corporation shall require Landlord's consent.


 



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Section
9.02. Tenant Affiliate. Tenant may assign this Lease or sublease the Property, without Landlord’s consent to any
corporation which controls, is controlled by or is under common control with Tenant, or to any corporation resulting from the
merger of or consolidation with Tenant (“Tenant’s Affiliate”). In such case, any Tenant’s Affiliate shall
assume writing all of Tenant’s obligations under this Lease.


 


Section
9.03. No Release of Tenant. No transfer permitted by this Article Nine, whether with or without Landlord’s consent,
shall release Tenant or change Tenant’s primary liability to pay the rent and to perform all other obligations of Tenant
under this Lease. Landlord’s acceptance of rent from any other person is not a waiver of any provision of this Article Nine.
Consent to one transfer is not a consent to any subsequent transfer. If Tenant’s transferee defaults under this Lease, Landlord
may proceed directly against Tenant without pursuing remedies against the transferee. Landlord may consent to subsequent assignments
or modifications of this Lease by Tenant’s transferee, without notifying Tenant or obtaining its consent. Such action shall
not relieve Tenant’s liability under this Lease.


 


Section
9.04. Offer to Terminate. If Tenant desires to assign the Lease or sublease the Property, Tenant shall have the right to
offer, in writing, to terminate the Lease as a date specified in the offer. If Landlord elects in writing to accept the offer
to terminate within twenty (20) days after notice of the offer, the Lease shall terminate as of the date specified and all the
terms and provisions of the Lease governing termination shall apply. If Landlord does not so elect, the Lease shall continue in
effect until otherwise terminated and the provisions of Section 9.05 with respect to any proposed transfer shall continue to apply.


 


Section
9.05 Landlord’s Consent.


(a)                
Tenant’s request for consent to any transfer described in Section 9.01 shall set forth in writing the details of the proposed
transfer, including the name, business and financial condition of the prospective transferee, financial details of the proposed
transfer (e.g., the term of and the rent and security deposit payable under any assignment or sublease), and any other information
Landlord deems relevant. Landlord shall have the right to withhold consent, if reasonable, or to grant consent, based on the following
factors: (i) the business of the proposed assignee or subtenant and the proposed use of the Property; (ii) the net worth and financial
reputation of the proposed assignee or subtenant; (iii) Tenant’s compliance with all of its obligations under the Lease;
and (iv) such other factors as Landlords may reasonable deem relevant. If Landlord objects to a proposed assignment solely because
of the net worth and/or financial reputation of the proposed assignee, Tenant may nonetheless sublease (but not assign), all or
a portion of the Property to the proposed transferee, but only on the other terms of the proposed transfer.


(b)                
If Tenant assigns or sublease, the following shall apply:


                              
(i)            Tenant shall pay to Landlord as Additional Rent under the
Lease the Landlord’s Share (stated in Section 1.13) of the Profit (defined below) on such transaction as and when received
by Tenant, unless Landlord gives written notice to Tenant and the assignee or subtenant that Landlord’s Share shall be paid
by the assignee or subtenant to Landlords directly. The “Profit” means (A) all amounts paid to Tenant for such assignment
or sublease, including “key” money, monthly rent in excess of the monthly rent payable under the Lease, and all fees
and other consideration paid for the assignment or sublease, including fees under any collateral agreements, less (B) costs and
expenses directly incurred by Tenant in connection with the execution and performance of such assignment or sublease for real
estate broker’s commissions and costs of renovation or construction of tenant improvements required under sublease for real
estate broker’s commissions and costs of renovations or construction of tenant improvements required under such assignment
or sublease. Tenant is entitled to recover such costs and expenses before Tenant is obligated to pay the Landlord’s Share
to Landlord. The profit in the case of a sublease of less than all the Property is the rent allocable 


                            
(ii)            (ii) Tenant shall provide Landlord a written statement
certifying all amounts to be paid 'from any assignment or sublease of the Property within (30) days after the transaction documentation
is signed, and Landlord may inspect Landlord copies of all the transaction documentation, all of which shall be certified by Tenant
to be complete, true and correct Landlord s receipt of Landlord’s Share shall not be1a consent to any further, assignment
or subletting. The breach of Tt s obligation under this Paragraph 9.05(b) shall be a material default of the Lease.


 


Section
9.06. No Merger. No merger shall result from Tenant's sublease of the Property under this Article Nine, Tenant's, surrender
of this Lease· or the termination of this Lease in any other manner. In any such event, Landlord may terminate any or all
sub tenancies or succeed to the interest of Tenant as sub landlord under any or all sub tenancies.


 


ARTICLE
TEN: DEFAULTS; REMEDIES


 


Section
10.01 Covenants and Conditions. Tenant's performance of each of Tenant's obligations under Lease, is a condition as we
as a covenant. Tenant's right to continue in possession of the Property is conditioned upon such performance. Time is of the essence
in the performance of all covenants and conditions.


 


Section
10.02. Defaults. Tenant shall be in material default under this Lease:


(a)                
If Tenant abandons the Property or if Tenant's vacation of the Property results in the cancellation of any insurance described
in Section 4.04;


(b)                
If Tenant fails to pay rent or any other charge when due;


(c)                
(c) If Tenant fails to perform any of Tenant's non-monetary obligations under this Lease for a period of thirty (30) days after
written notice from Landlord; provided that if more than thirty (30) days are required to complete such performance, Tenant shall
not be in default if Tenant commences such performance within the thirty (30) day period and thereafter diligently pursues its
completion. However, Landlord shall not be required to give such notice if Tenant's failure to perform constitutes a non-curable
breach of this Lease. The notice required by this paragraph is intended to satisfy any and all notice requirements imposed by
law on Landlord and is not in addition to any such requirement.


(d)                
(i) If Tenant makes a general assignment or general arrangement for the benefit or creditors; (ii) if a petition for adjudication
of bankruptcy or for reorganization or rearrangement is filed by or against Tenant and is not dismissed within thirty (30) days;
(iii) if a trustee or receiver is appointed to take possession of substantially all of Tenant's assets located at the Property
or of Tenant's interest in this Lease and possession is not restored to Tenant within thirty (30) days; or (iv) if substantially
all of Tenant's assets located at the Property or of Tenant's interest in this Lease is subjected to attachment, execution or
other judicial seizer which is not discharged within thirty (30) days. If a court of competent jurisdiction determines that any
of the acts described in this subparagraph (d) is not a fault under this Lease,' and a trustee is appointed to take possession
(or if Tenant remains a debtor in possession) and such trustee or Tenant transfers Tenant's interest hereunder, then Landlord
shall receive, as Additional Rent, the excess, if any, of the rent (or any other consideration) paid in connection with such assignment
or sublease over the rent payable by Tenant under this Lease.


(e)                
If any guarantor of this Lease revokes or otherwise terminates, or purports to revoke or otherwise terminate, any guaranty of
all or any portion of Tenant's obligations under the Lease. Unless otherwise expressly provided, no guaranty of the Lease is revocable.


 



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Section
10.03. Remedies. On the occurrence of any material default by Tenant, Landlord may, at any time thereafter, with or without
notice or demand and without limiting Landlord in the exercise of any right or remedy that Landlord may have


(a)                
Terminate Tenant's right to possession of the Property by any lawful means, in which case this Lease shall terminate and Tenant
shall1 immediately surrender possession of the Property to Landlord. In such event, Landlord: shall be entitled to recover from
Tenant all damages incurred by Landlord by reason of Tenant's default, including (i) the worth at lie time of the award of the
unpaid Base Rent and other charges which Landlord had earned at the time of the termination (ii) the worth at the time of the
award of the amount by which the unpaid Base Rent, Additional Rent and other charges which Landlord would have earned after termination
until the time of the award exceeds the amount of such rental loss that Tenant proves Landlord could have reasonably avoided;
(iii) the worth at the time of the award of the amount of which the unpaid Base Rent, Additional Rent and other charges which
Tenant would have paid for the balance of the Lease T= after the time of award exceeds the amount of such rental Joss that Tenant
proves Landlord could have reasonably avoided; and{iv).any other amount necessary to compensate Landlord for all the detriment
proximately caused by Tenant's failure to perform its obligations under the Lease or which in the ordinary course of things would
be likely to result therefrom, including, but not limited to, any costs or expenses Landlord incurs in maintaining or preserving
the Property after such default; the cost of recovering possession of the Property, expenses of relating, including necessary
renovation or alteration of the Property; Landlord's reasonable attorneys' fees mc\med in connection therewith, and any real estate
commission paid or payable. As used in subparts (i) and (ii) above, the "worth at the time of the award" is computed
by allowing interest on unpaid amounts at the rate of fifteen percent (15%) per annum, or such lesser amount as may then be the
maximum lawful rate. As used in subpart (iii) above, the "worth at the time of the award" is computed by discounting
such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus one percent (1%).
If Tenant has abandoned the Property, Landlord shall have the option of (i) retaking possession of the Property and recovering
from Tenant the amount specified in this Paragraph 10.03(a), or (ii) proceeding under Paragraph 10:03(b);


(b)                
Maintain Tenant's right to possession, in which case this Lease shall continue in effect whether or not Tenant has abandoned the
Prope1'.J· In such event, Landlord shall be entitled to enforce all of Landlord’s rights and remedies under this
Lease, including the right to recover the rent as it becomes due·


(c)                
Pursue any other remedy now or hereafter available to Landlord under the laws or judicial decisions of the state in which the
Property is located.


 


Section
10:04. Repayment of "Free" Rent. If this Lease provides for a postponement of any monthly rental payments, a
period; of “free” rent or other rent concession, such postponed rent or "free" rent is called the "Abated
Rent". Tenant shall be credited with having paid all of the Abated Rent on the expiration of the Lease Term only if Tenant
has fully, faithfully,, and punctually performed all if Tenant s obligati9ns hereunder, including the payment of all rent (other
than the Abated Rent) and all other monetary obligations and the surrender of the Property in the physical condition required
by this Lase. Tenant acknowledge that it's right to receive credit for the Abated Rent is absolutely conditioned upon Tenant's
full, fat and punctual performance of its obligations under this Lease. If Tenant defaults and does not cure within any applicable
grace period, the Abated Rent shall immediately become due and payable in full and this Lease shall be enforced as if there were
no such rent abatement or other rent concession. In such case Abated Rent shall be calculated based on the full initial rent payable
under this Lease.


 


Section
10.05. Automatic Termination. Notwithstanding any other term or provision hereof to the contrary, the Lease shall terminate
on the 9ccurrence of any act which affirms the Landlord' s intention to terminate the Lease as provided in Section 10.03 hereof,
including the filing and unlawful detainer action against Tenant. On such termination, Landlord's damages for default shall include
all costs and fees, including reasonable attorneys' fees that landlords incurs in connection with the filing, commencement, pursuing
and/or defending of any action in any bankruptcy court or other court with respect to the Lease; the obtaining of relief from
any stay in bankruptcy restraining any action to evict Tenant; or the pursuing of any action with respect to landlord's .right
to possession of the Property. All such damages suffered (apart from Base Rent and, other rent payable hereunder) shall constitute
pecuniary damages, which must be reimbursed to Landlord prior to assumption of the Lease by Tenant or any successor to Tenant
in any bankruptcy or other proceeding.


 


Section
10:06. Cumulative Remedies. Landlord’s exercise of any right or remedy shall not prevent it from exercising any other
right or remedy.


 


ARTICLE
ELEVEN: PROTECTION OF LENDERS


 


Section.11.01
Subordination. Landlord shall have the right to subordinate this Lease to any ground lease, deed of trust 'or mortgage
encumbering the Property, any advances made on the security thereof and any renewals, modifications, consolidations, replacements
or extensions thereof, whenever made or recorded. Tenant shall cooperate with landlord and any lender, which: is acquiring a security
interest in the Property or the Lease. Tenant shall execute such further documents and assurances as such lender may require,
provided that Tenant's obligations under this Lease shall not be increased in any material way (the performance of ministerial
acts shall not be deemed material), and Tenant shall not be deprived of its rights under this Lease. Tenant's right to quiet possession
of the Property during the Lease Term shall not' be disturbed if Tenant pays for rent and performs all of Tenant's obligations
under this Lease and is not otherwise in default. If any ground lessor, beneficiary or mortgagee elects to have this Lease prior
to the lien of its ground lease, deed or trust or mortgage and gives written notice thereof to Tenant, this Lease shall be deemed
prior to such ground lease, deed of trust or mortgage whether this Lease is dated prior or subsequent to the date of said ground
lease, deed of trust or mortgage or the date of recording thereof.


 


Section
11.02. Attornment. If Landlord’s interest in the Property is acquired by any ground lessor, beneficiary under a deed
of trust, mortgagee, or purchaser at a foreclosure sale, Tenant shall attorn to the transferee of or successor to Landlord’s
interest' in the Property and recognizes such transferee or successor as Landlord under this Lease. Tenant waives the protection
of any statute or rule of law, which gives or purports to give Tenant any right to terminate this Lea5e or surrender possession
of the Property upon the transfer of Landlord's interest.


 


Section
11.03. Signing of Documents. Tenant shall sign and deliver any instrument or document necessary or appropriate to evidence
any such attornment or subordination or agreement to do so. If Tenant fails to do so within ten (10) days after written 'request,
Tenant hereby makes, constitutes and irrevocably appoints Landlords, or any transferee or successor of Landlord, the attorney-in-fact
of Tenant to execute and deliver any such instrument or document.


 



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Section
11:04. Estoppel Certificates.


(a)                
Upon Landlord’s written request, Tenant shall execute, acknowledge and deliver to Landlord a written statement certifying
(i) that none of the t=s or provisions of this Lease have been changed (or if they have been changed, stating how they have been
changed); (ii) that this Lease has not been cancelled or terminated; (iii) the last date of payment of the Base Rent and other
charges and the time period covered by such payment; (iv) that Landlord is not in default under this Lease (or, if Landlord is
claimed to be in default, stating why); and (v) such other representations or information with respect to Tenant or the Lease
as Landlord may reasonably request or which any prospective purchaser or encumbrance of the Property may require. Tenant shall
deliver such statement to Landlord within ten (10) days after Landlord's request. Landlord may give any such statement by Tenant
to any prospective purchaser or encumbrance of the Property. Such purchaser or encumbrance may, rely conclusively upon such statement
as true and correct.


(b)                
If Tenant does not deliver such statement to Landlord within such ten (10) day period, Landlord, and any prospective purchaser
or encumbrance, may conclusively presume and rely upon the following facts: (i) that the terms and provisions of this Lease have
not been changed except as otherwise represented by Landlord; (ii) that this Lease has not been cancelled or terminated except
as otherwise represented by Landlord; (iii) that not more than one month's Base Rent or other charges have been paid in advance;
and (iv) that Landlord is not in default under the Lease. In such event Tenant shall be stopped from denying the truth of such
facts.


 


Section
11.05. Tenant's Financial Condition. Within ten (10) days after written request from Landlord, Tenant shall deliver to
Landlord such financial statements as Landlord reasonably requires to verify the net worth of Tenant or any ass1gne, subtenant,
or guarantor of Tenant In addition, Tenant shall deliver to any lender designated by Landlord any financial statements required
by such lender to facilitate the financing or refinancing of the Property. Tenant represents and warrants to Landlord that each
such financial statements is a true and accurate statement as of the date of such statement. All financial statements shall be
confidential and shall be used only for the purposes set forth in this Lease


 


ARTICLE
TWELVE: LEGAL COSTS


 


Section
12:01. Legal Proceedings. If Tenant or Landlord shall be in breach or default under this Lease, such party (the ''Defaulting Party'')
shall reimburse the other party (the "Nondefaulting Party") upon demand for any costs or expenses that the Nondefaulting
Party incurs in connection with any breach or default of the Defaulting Party under this Lease, whether or not suit is commenced
or judgment entered. Such costs shall include legal fees and costs incurred for the negotiation of a settlement, enforcement of
rights or otherwise. Furthermore, if any action for breach of or to enforce the provisions of this Lease is commenced, the court
in such action shall award to the party in whose favor a judgment is entered, a reasonable sum as attorneys' fees and costs. The
losing party in such action shall pay such attorneys' fees and costs. Tenant shall also indemnify Landlord against and hold Landlord
harmless of all costs, expenses, demands and liability Landlord may incur if Landlord becomes or is made a party to any claim
or action (a) instituted by Tenant against any third party, or by any third party against Tenant, or by or against any person
holding any interest under or using the Property by license of or agreement with Tenant; (b) for foreclosure of any lien for labor
or material furnished to or for Tenant or such other person; (c) otherwise arising out of or resulting from any act or transaction
of Tenant or such other person; or (d) necessary to protect Landlord's interest under this Lease in a bankruptcy proceeding, or
other proceeding ,under Title 11 of the United States Code, as amended. Tenant shall defend Landlord against any such claim or
action at Tenant's expense with counsel reasonably acceptable to Landlord or, at Landlord's election, Tenant shall reimburse Landlord
for any legal fees or costs Landlord incurs in any such claim or action.


 


Section
12.02. Landlord's Consent. Tenant shall pay Landlord's reasonable attorneys' fees incurred in connection with Tenant's
request for Landlord's consent under Article Nine (Assignment and Subletting), or in connection with any other act which Tenant
proposes to do and which requires Landlord's consent.


 


ARTICLE
THIRTEEN: MISCELLANEOUS PROVISIONS


 


Section
13.01. Non-Discrimination. Tenant promises, and it is a condition to the continuance of this Lase, that there will be no
discrimination against, or segregation of, any person or group of persons on the basis of race, color, sex, creed, national origin
or ancestry in the leasing, subleasing, transferring, occupancy, tenure or use of the Property or any portion thereof.


 






Section 13:02. Landlord's Liability; Certain Duties.


(a)                
As used in this Lease, the term "Landlord" means only the current owner or owners of the fee title to the Property or
Project or the leasehold estate under a ground lease of the Property or Project at the time in question. Each Landlord is obligated
to perform the obligations of Landlord under this Lease only during the time such Landlord owns such interest or title. Any Landlord
who transfers its title or interest is relieved of all liability with respect to the obligations of Landlord under this Lease
to be performed on or after the date of transfer. However, each Landlord shall deliver to its transferee all funds, that Tenant'
previously paid if such funds have not yet been applied under the terms of this Lease.


(b)                
Tenant shall give written notice of any failure by Landlord to perform any of its obligations under this Lease to Landlord and
to any ground lessor, mortgagee or beneficiary under any deed or trust encumbering the Property whose name and address have been
furnished to Tenant in writing. Landlord shall not be in default under this Lease unless Landlord (or such ground lessor, mortgagee
or beneficiary) fails to cure such non-performance within thirty (30) days after receipt of Tenant's notice. However, if such
non-performance reasonably requires more than thirty (30) days to cure, Landlord shall not be in default if such cure is commenced
within such thirty (30) day period and thereafter diligently pursued to completion. Notwithstanding any term or provision herein
to the contrary, the liability of Landlord for the performance of its, duties and obligations under :this Lease is limited to
Landlord's interest in the Property and the Project, and neither the Landlord nor its partners, shareholders, officers or other
principals shall have any personal liability under this Lease.


 


Section
13.03. Severability. A determination by a court of competent jurisdiction that any provision of this Lease or any part
thereof is illegal or unenforceable shall not cancel or invalidate the remainder of such provision or this Lease, .which shall
remain full force and effect.


 



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Section
13.04. Interpretation. The captions of the Articles or Sections of this Lease are td assist the parties in reading this
Leas and are not a part of the terms or provisions of this Lease. Whenever required by the context of this Lease the singular
shall include the plural and the plural shall include the singular. The masculine, feminine and neuter gender shall each include
the other. 1n any provision relating to the conduct, acts or omissions of Tenant, the term “Tenant” shall include
Tenant’s agents, employees, contractors, invitees, successors or others using the Property with Tenant's expressed or implied
permission;


 


Section
13.05. Incorporation of Prior Agreements; Modifications. This Lease is the only agreement between the parties pertaining
..to the lease of the Property and no other agreements are effective. All amendments to this Lease shall be in writing and signed
by all parties. Any other attempted amendment shall be void.


 


Section
13:06. Notices. All notices required or permitted under this Lease shall be in writing and shall be personally delivered
or sent by certified mail, return receipt requested, postage prepaid. Notices to Tenant shall be delivered to the address specified
in Section 1.03 above, except that upon Tenant's taking possession of the Property, the Property shall be m Tenant's address for
notice purposes. Notices to Landlord shall be delivered to the address specified in Section 1.02 above. All notices 1shall be
effective upon delivery. Either party may change its notice address upon written notice to the other party.


 


Section
13.07. Waivers. All waivers must be in writing and signed by the waiving party. Landlord's failure to enforce any provision
of this' Lease or its acceptance of rent shall not be a waiver and shall not prevent Landlord from, enforcing that provision or
any other provision of this Lease in the future. No statement on a payment check from Tenant or in a letter accompanying a payment
check shall be binding on Landlord. Landlord may, with or without notice to Tenant, negotiate such check without being bound to
the conditions of such statement.


 


Section
13.08. No Recordation. · Tenant shall not record this Lease without prior written consent from Landlord. However,
either Landlord or Tenant may require that a "Short Form" memorandum of this Lease executed by both parties be recorded.
The party requiring such recording shall pay all transfer taxes and recording fees.


 


Section
13.09. Binding Effect; Choice of Law. This Lease binds any party who legally acquires any rights or interest in this Lease
from Landlord or Tenant. However, Landlord shall have no obligations to Tenant's successor unless the rights or interests of Tenant's
successor are acquired in accordance with the terms of this Lease. The laws of the state in which the Property is located shall
govern this Lease.


 


Section
13.10. Corporate Authority; Partnership Authority. If Tenant is a corporation, each person signing this Lease on behalf
of Tenant represents and warrants that he has full authority to do so and that this Lease binds the corporation; (within thirty
(30) days after this Lease is signed, Tenant shall deliver to Landlord a certified copy of a resolution of Tenant's Board of Directors
authorizing the execution of this Lease or other evidence of such authority reasonably acceptable to Landlord. If Tenant is a
partnership, each person or entity signing this Lease for Tenant represents and warrants that he or it, is a 'general partner
of the partnership, that he or it has full authority to sign for the partnership and that this Lease binds the: partnership and
general partners of the partnership. Tenant shall give written notice to Landlord of any general partner's: withdrawal or addition.
Within thirty (30) days after this Lease is signed, Tenant shall deliver to Landlord a copy of Tenant's recorded statement of
partnership or certificate of limited partnership.


 


Section
13.11. Joint and Several Liability. All parties signing this Lease as Tenant shall be jointly and severally liable for
all obligations of Tenant.


 


Section
13:12. Force Majeure. .If Landlord cannot perform any of its obligations due to events beyond Landlord's control the time
provided for performing such obligations shall be extended by a period of time equal to the durat10n of such events. Events beyond
Landlord's control include, but are not limited to, acts of God, war, civil commotion, labor disputes, strikes, fire, flood or
other casualty, shortages of labor or material, government regulations or restriction and weather conditions.


 


Section
13:13. Execution, of Lease. This Lease may be executed in counterparts and, when all counterpart documents are executed,
the counterparts shall constitute a single binding instrument. Landlord's delivery of this Lease to Tenant shall not be deemed
to be .an offer to lease and shall not be binding upon either party until executed and delivered by both parties.


 


Section
13.14. Survival. All representations and warranties of Landlord and Tenant shall survive the termination of this Lease.


 


ARTICLE
FOURTEEN: BROKERS


 


Section
14.01. Broker's Fee. When this Lease is signed by and delivered to both Landlord and Tenant, Landlord shall pay a real
estate commission to Landlord's Broker named in Section 1.08 above, if any, as provided in the written agreement between Landlord
and Landlord's Broker, or the sum stated in Section 1.09 above for services rendered to Landlord by Landlord's Broker in this
transaction. Landlord shall pay Landlord's Broker a commission if Tenant exercises any option to extend the Lease Term or to buy
the Property, or any similar option or right which Landlord may grant to Tenant, or if Landlord's Broker is the procuring cause
of any other lease or sale entered into between Landlord and Tenant covering the Property. Such commission shall be the amount
set forth in Landlord's Broker's commission schedule in effect as of the execution of this Lease. If Tenant's Broker is named
in Section 1.08 above, Landlord's Broker shall pay an appropriate portion of its commission to Tenant's Broker if so provided
in any agreement between Landlord's Broker and Tenant's Broker. Nothing contained in this Lease shall impose any obligation on
Landlord to pay a commission or fee to any party other than Landlord's Broker.


 


Section
14.02. Protection of Brokers. If Landlord sells the Property, or assigns Landlord's interest in this Lease, the buyer or
assignee shall, by accepting such conveyance of the Property or assignment of the Lease, be conclusively deemed to have agreed
to make all payments to Landlord's Broker thereafter required of Landlord under this Article Fourteen. Landlord's Broker shall
have the right to bring a legal action to enforce or declare rights under this provision. The prevailing party in such action
shall be entitled to reasonable attorneys' fees to be paid by the losing party. Such attorneys' fees shall be fixed by the court
in such action. This paragraph is included in this Lease for the benefit of Landlord's Broker.


 


Section
14.03. Agency Disclosure; No Other Brokers. Landlord and Tenant each warrant that they have dealt with no other real estate
broker( s) in connection with this transaction except: Theresa Vinuya; Heller Companies, LLC Represents Landlord and Cody Starrett:
Independent Real Estate Professionals Las Vegas who represents Tenant.


 



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ARTICLE
FIFTEEN: COMPLIANCE


 


The
parties hereby agree to comply with all applicable federal, state and local laws, regulations, codes, ordinances and administrative
orders having jurisdiction over the parties, property or the subject matter of this Agreement. Including, but not limited to,
the 1964 Civil Rights Act and all amendments thereto, the Foreign Investment In Real Property Tax Act, the Comprehensive Environmental
Response Compensation and Liability Act, and The Americans With Disabilities Act.


 


ADDITIONAL
PROVISIONS MAY BE SET FORTH IN A RIDER OR RIDERS ATTACHED HERETO OR IN THE BLANK SPACE BELOW. IF NO ADDITIONAL PROVISIONS ARE
INSERTED, PLEASE DRAW A LINE THROUGH THE SPACE BELOW.


 


1.                  
Tenant accepts the Premises in its "As-is" condition.


 


2.                  
Tenant shall be allowed 24-hour access, seven days per week upon execution of the Lease.


 


3.                  
If the Tenant requires more space than the premises of this Lease, Landlord will allow Tenant to relocate to another suitable
space within Valley View Business Center, if available, at the then prevailing rate. If a Lease is executed with Valley View Business
Center for another space, replacing the space under this Lease, Tenant will be released form the obligations covered by this Lease.


 


4.                  
This lease agreement is subject to the review and approval of the Guarantor's financial statements in the Landlord's sole opinion.


 


5.                  
This lease will not be in full force and effect until all the monies required pursuant to the Lease Agreement are paid in full
and all documents are executed.


 


6.                  
Although it is not customary for Valley View Business Center to hold space for a· prospective tenant without a signed Lease
Agreement and receipt of payment of the Security Deposit and first month's Rent and CAM charges; Landlord hereby grants Avalanche
International, Corp. a one-time option as follows: Upon Avalanche International, Corp's payment to Landlord in the amount of Fifteen
Thousand Dollars ($15,000.00), Landlord will remove the space from its rental pool until June 3, 2014. If by 5:00 PM on June 3,
2014 Landlord has not received and approved the Guarantor's financial statement, in Landlord's sole opinion, as well as the remaining
monies due in the amount of Sixteen Thousand Eight and 00/100 Dollars ($16,008.00) for a total initial payment of Thirty One Thousand
Eight Dollars ($31,008.00); it is hereby acknowledged and agreed that the Fifteen Thousand Dollars which was previously paid shall
be nonrefundable.


 


7.                 
It is mutually understood and agreed that Tenant may not occupy the space until such time as this Lease is fully executed by both
parties; Guarantor has provided a financial statement and Landlord has approved said financial statement; and the amount of Thirty
One Thousand Eight Dollars and 00/100 ($31,008.00) is paid in full.


 


Landlord
and Tenant have signed this Lease at the place and on the dates specified adjacent to their signatures below and have initialed
all Riders which are attached to or incorporated by reference in this Lease.


 


	 	“LANDLORD”
	Signed
    on:      , 2014	York
    Nevada Management South, LLC dba
	at	Valley
    View Business Center
	 	 
	 	By:/s/
    Terry York
	 	Terry
    York
	 	 
	 	Its:
    Member
	 	 
	 	“TENANT”
	Signed
    on: May 21, 2014	Avalanche
    International, Corp.
	at
    LV	By:
    /s/ Philip E. Mansour
	 	Philip
    E. Mansour
	 	 
	 	Its:
    President


 


IN
ANY REAL ESTATE TRANSACTION, IT IS RECOMMENDED THAT YOU CONSULT WITH A PROFESSIONAL, SUCH AS A CIVIL ENGINEER, INDUSTRIAL HYGIENIST
OR OTHER PERSON WITH EXPERIENCE INEVALUATING THE CONDITION OF THE PROPERTY, INCLUDING THE POSSIBLE PRESENCE OF ASBESTOS, HAZARDOUS
MATERIALS AND UNDERGROUND STORAGE TANKS.


 




    	12



    	 



    

 


Exhibit A


 


 


 


 



    	13



    	 



    

 


Exhibit B


 


 


 


 






    	14



    	 



    




 


OPTION
TO EXTEND TERM LEASE RIDER


 


This
Rider is attached to and made part of that certain Lease (the "Lease") dated May 15, 2014 between York Nevada Management
South, LLC , as Landlord, and Avalanche International, Corp. , as Tenant, covering the Property commonly knows as Valley View
Business Center (the "Property"). The terms used herein shall have the same definitions as set forth in the Lease. The
provisions of this Rider shall supersede any inconsistent or conflicting provisions of the Lease.


 


A.                                 
Option(s) to Extend Term.


 


		1.	Grant
                                         of Option.



Landlord
hereby grants to Tenant One (I) option (the "Option") to extend the Lease Term for additional term of Three (3) years
(the "Extension"), on the same terms and conditions as set forth in the Lease, but at an increased rent as set forth
below. Each Option shall be exercised only by written notice delivered to Landlord at least one hundred twenty (120) days before
the expiration of the Lease Term or the preceding Extension of the Lease Term, respectively. If Tenant fails to deliver Landlord
written notice of exercise of an Option within the prescribed time period, such Option and any succeeding Options shall lapse,
and there shall be no further right to extend the Lease Term. Each Option shall be exercisable by Tenant on the express conditions
that (a) at the time of the exercise, and at all times prior to the commencement of such Extension, Tenant shall not be in default
under any of the provisions of the Lease and (b) Tenant has not been ten (10) or more days late in the payment of rent more than
a total of three (3) times during the Lease Term and all preceding Extensions.


 


B.                                 
Calculation of Rent.


 


The
Base Rent during the Extension(s) shall be determined by one or a combination of the following methods (INDICATE METHOD UPON EXECUTION
OF THE LEASE):


 


[X]1.
Cost of Living Adjustment fixed at 4% Rental Adjustment Date(s): The first day of the 13 and 25 month(s) of the Three year Extension(s)
of the Lease Term.


 


[X]2.
Fair Market Rental Value Adjustment as determined by Landlord. Rental Adjustment Date(s): The first day of the First month of
the Three year Extension of the Lease Term.


 


[
]3. Fixed Adjustment


The
Base Rent shall be increased to the following amounts (the "Adjusted Base Rent(s)") on the dates (the "Rental Adjustment
Date(s)") set forth below:


 


 


	Rental
    Adjustment Date(s)	Adjusted
    Base Rent(s)


 




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VALLEY
VIEW BUSINESS CENTER


Guaranty
Of Lease


 


This
Guaranty of Lease (the "Guaranty") is attached to and made part of that certain real estate Lease (the "Lease")
dated May 15. 2014, between York Nevada Management South, LLC dba Valley View Business Center .as Landlord, and Avalanche International,
Com., as Tenant, covering the Property commonly known as Valley View Business Center. The terms used in this Guaranty shall have
the same definitions as set forth in the Lease. In order to induce Landlord to enter into the Lease with Tenant Todd Ault ("Guarantors"),
have agreed to execute and deliver this Guaranty to Landlord. Each Guarantor acknowledges that' Landlord would not enter into
the Lease if each Guarantor did not execute and deliver this Guaranty to Landlord.


 


1.          
Guaranty. In consideration of the execution of the Lease by Landlord and as a material inducement to Landlord to execute
the Lease, each Guarantor hereby irrevocably, unconditionally, jointly and severally guarantees the full, timely and complete
(a) payment of all rent and other sums payable by Tenant to Landlord under the Lease, and any amendments or modifications thereto
by agreement or course of conduct, and (b) performance of all covenants, representations and warranties made by Tenant and all
obligations to be performed by Tenant pursuant to the Lease, and any amendments or modifications thereto by agreement or course
of conduct. The payment of those amounts and performance of those obligations shall be conducted in accordance with all terms,
covenants, and conditions set forth in the Lease, without deduction, offset or excuse of any nature and without regard to the
enforceability or validity of the Lease, or any part thereof, or any disability of Tenant.


 


2.          
Landlord's Right. Landlord may perform any of the following acts at any time during the Lease Term, without notice to or
asset of any Guarantor and without in any way releasing, affecting or impairing any of Guarantor's obligations or liabilities
under this Guaranty: (a) alter, modify or amend the Lease by agreement or course of conduct, (b) grant extensions or renewals
of the Lease, (c) assign or otherwise transfer its interest in the Lease, the Property, or this Guaranty, (d) consent to any transfer
or assignment of Tenant's or any future tenant's interest under the Lease, (e) release one or more Guarantor, or amend or modify
this Guaranty with respect to any Guarantor, without releasing or discharging any other Guarantor from any of such Guarantor's
obligations or liabilities under this Guaranty, (f) take and hold security for the payment of this Guaranty and exchange, enforce,
waive and release any such security, (g) apply such security and direct the order or manner of sale thereof as Landlord, in its
sole discretion, deems appropriate, and (h) foreclose upon any such security by judicial or non-judicial sale, without affecting
or impairing in any way the liability of Guarantor under this Guaranty, except to the extent the indebtedness has been paid.


 


3.          
Tenant's Default. This Guaranty is a guaranty of payment and performance, and not of collection. Upon any breach or default
by Tenant under the Lease, Landlord may proceed immediately against Tenant and/or any Guarantor to enforce any of Landlord's rights
or remedies against Tenant or any Guarantor pursuant to this Guaranty, the Lease, or at Jaw or in equity without notice to or
demand upon either Tenant or any Guarantor. This Guaranty shall not be released, modified or affected by any failure or delay
by Landlord to enforce any of its rights or remedies under the Lease or this Guaranty, or at law or in equity.


 


4.Guarantor's
Waivers. Each Guarantor hereby waives (a) presentment, demand for payment and protest of non-performance under the Lease,
(b) notice of any kind including, without limitation, notice of acceptance of this Guaranty, protest, presentment, demand for
payment, default, nonpayment, or the creation or incurring of new or additional obligations of Tenant to Landlord, (c) any right
to require Landlord to enforce its rights or remedies against Tenant under the Lease, or otherwise, or against any other Guarantor,
(d) any right to require Landlord to proceed against any security held from Tenant or any other party, (e) any right of subrogation
and (f) any defense arising out of the absence, impairment or loss of any right of reimbursement or subrogation or other right
or remedy of Guarantors against Landlord or any such security, whether resulting from an election by Landlord, or otherwise. Any
part payment by Tenant or other circumstances which operates to toll any statute of limitations as to Tenant shall operate to
toll the statute of limitations as to Guarantor.


 


5.           
Separate and Distinct Obligations. Each Guarantor acknowledges and agrees that such Guarantor's obligations to Landlord
under this Guaranty are separate and distinct from Tenant's obligations to Landlord under the Lease. The occurrence of any of
the following events shall not have any effect whatsoever on any Guarantor's obligations to Landlord hereunder, each of which
obligations shall continue in full force or effect as though such event had not occurred: (a) the commencement by Tenant of a
voluntary case under the federal bankruptcy laws, as now constituted or hereafter amended or replaced, or any other applicable
federal or state bankruptcy, insolvency or other similar law (collectively, the "Bankruptcy Laws"), (b) the consent
by Tenant to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator or
similar official of Tenant or for any substantial part of its property, (c) any assignment by Tenant for the benefit of creditors,
(d) the failure of Tenant generally to pay its debts as such debts become due, (e) the taking of corporate action by Tenant in
the furtherance of any of the foregoing; or (f) the entry of a decree or order for relief by a court having jurisdiction in respect
of Tenant in any involuntary case under the Bankruptcy Laws, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of Tenant or for any substantial part of its property, or ordering the winding-up or liquidation
of any of its affairs and the continuance of any such decree or order unstayed an in effect for a period of sixty (60) consecutive
days. The liability of Guarantors under this Guaranty is not and shall not be affected or impaired by any payment made to Landlord
under or related to the Lease for which Landlord is required to reimburse Tenant pursuant to any court order or in settlement
of any dispute, controversy or litigation in any bankruptcy, reorganization, arrangement, moratorium or other federal or state
debtor relief proceeding. If, during any such proceeding, the Lease is assumed by Tenant or any trustee, or thereafter assigned
by Tenant or any trustee to a third party, this Guaranty shall remain in full force and effect with respect to the full performance
of Tenant, any such trustee or any such third party's obligations under the Lease. If the Lease is terminated or rejected during
any such proceeding, or if any of the events described in Subparagraphs (a) through (f) of this Paragraph 5 occur, as between
Landlord and each Guarantor, Landlord shall have the right to accelerate all of Tenant's obligations under the Lease and each
Guarantor's obligations under this Guaranty. In such event, all such obligations shall become immediately due and payable by Guarantors
to Landlord. Guarantors waive any defense arising by reason of any disability or other defense of Tenant or by reason of the cessation
from any cause whatsoever of the liability of Tenant.


 



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6.          
Subordination. All existing and future advances by Guarantor to Tenant, and all existing and future debts of Tenant to
any Guarantor, shall be subordinated to all obligations owed to Landlord under the Lease and this Guaranty.


 


7.Successors
and Assigns. This Guaranty binds each Guarantor's personal representatives, successors and assigns.


 


8.          
Encumbrances. If Landlord's interest in the Property of the Lease, or the rents, issues or profits therefrom, are subject
to any deed of trust, mortgage or assignment for security, any Guarantor's acquisition of Landlord's interest in the Property
or Lease shall not affect any of Guarantor's obligations under this Guaranty. In such event, this Guaranty shall nevertheless
continue in full force and effect for the benefit of any mortgagee, beneficiary, trustee or assignee or any purchaser at any sale
by judicial foreclosure or under any private power of sale, and their successors and assigns. Any married Guarantor expressly
agrees that Landlord has recourse against any Guarantor's separate property or all of such Guarantor's obligations hereunder.


 


9.          
Guarantor's Duty. Guarantors assume the responsibility to remain informed of the financial condition of Tenant and of all
other circumstances bearing upon the risk of Tenant's default, which reasonable inquiry would reveal, and agree that Landlord
shall have no duty to advise Guarantors of information known to it regarding such condition or any such circumstances.










 


10.       
Landlord's Reliance. Landlord shall not be required to inquire into the powers of Tenant of the officers, employees, partners
or agents acting or purporting to act on its behalf, any indebtedness made or created in reliance upon the professed exercise
of such powers shall be guaranteed under this Guaranty.


 


11.       
Incorporation of Certain Lease Provisions. Each Guarantor hereby represents and warrants to Landlord that such Guarantor
has received a copy of the Lease, has read or had the opportunity to read the Lease, and understands the terms of the Lease. The
provisions in the Lease relating to the execution of additional documents, legal proceedings by Landlord against Tenant, severability
of the provisions of the Lease, interpretation of the Lease, notices, waivers, the applicable laws which govern the interpretation
of the Lease and the authority of the Tenant to execute the Lease are incorporated herein in their entirety by this reference
and made a part hereof. Any reference in those provisions to "Tenant" shall mean each Guarantor and any reference in
those provisions to the "Lease" shall mean this Guaranty, except that (a) any notice which any Guarantor desires or
is required to provide to Landlord shall be effective only if signed by all Guarantors and (b) any notice which Landlord desires
or is required to provide to any Guarantor shall be sent to such Guarantor at such Guarantor's address indicated below, or if
no address is indicated below, at the address for notices to be sent to Tenant under the Lease.


 


	Signed
    on	 
	 	By:
	 	Todd
    Ault
	 	 
	Address	 


 


	CONSULT
                                         YOUR ATTORNEY -This document has been prepared for approval by your attorney. No representation
                                         or recommendation is made by or the Southern California Chapter of the Society of Industrial
                                         Realtors, Inc., or the agents or employees of either of them as to the legal sufficiency
                                         legal effect, or tax consequences of this document or the transaction to which it relates.
                                         These are questions for your attorney.

        



 


After
Tenant has paid Eighteen (18) full months Rent, including Common Area Maintenance Fees, and provided the Lease is then in full
force and effect, and Tenant is then in occupancy of the premises and has made all payments when due and 1s not then m default
thereof, Todd Ault will then be released from the obligations of this Lease Guaranty.


 








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