Document:

Exhibit
4.1

 

DESCRIPTION
OF SECURITIES

 

General

 

The
following is a summary of the material terms of our shares as of December 31, 2020. The operating agreement provides for the issuance
of our shares, the terms relating to distributions with respect to our shares and the voting rights of holders of our shares.
In addition, the terms of the series A senior convertible preferred shares are governed by a certificate of designation, dated
September 30, 2020.

 

The
following description is subject to the provisions of the Delaware Limited Liability Company Act. Certain provisions of the operating
agreement are intended to be consistent with the General Corporation Law of the State of Delaware, and the powers of our company,
the governance processes and the rights of the holders of our shares are generally intended to be similar in many respects to
those that would exist if our company was a Delaware corporation under the General Corporation Law of the State of Delaware, with
certain exceptions.

 

The
statements that follow are subject to and are qualified in their entirety by reference to all of the provisions of the operating
agreement, a copy of which is included as an exhibit to this report.

 

We
are authorized to issue up to 500,000,000 common shares, 3,157,895 series A senior convertible preferred shares and 1,000 allocation
shares. As of December 31, 2020, we had 4,444,013 common shares and 2,632,278 series A senior convertible preferred shares issued
and outstanding. In connection with the formation of our company, our manager acquired 100% of the allocation shares for a capital
contribution of $1,000 by our manager. Other than the allocation shares held by our manager, our company will not be authorized
to issue any other allocation shares.

 

Common
Shares

 

Distribution
Rights. Holders of common shares are entitled to receive ratably those distributions, if any, as may be declared from time
to time by the board of directors out of legally available funds.

 

Liquidation
Rights. Upon our liquidation, dissolution or winding up in accordance with the terms of the operating agreement, the then
holders of common shares will be entitled to share in the assets of our company legally available for distribution, following
payment to creditors, in accordance with the positive balance in such holders’ tax-based capital accounts required by the
operating agreement, after giving effect to all contributions, distributions and allocations for all periods.

 

Voting
Rights. The holders of common shares are entitled to one vote for each share held of record on all matters submitted to a
vote of the shareholders. Under the operating agreement, any action to be taken by vote of shareholders other than for election
of directors shall be authorized by the affirmative vote of the majority of shares present or represented by proxy and entitled
to vote. Directors are elected by a plurality of votes cast.

 

Other
Rights. Holders of common shares have no preemptive, conversion or subscription rights and there are no redemption or sinking
fund provisions applicable to the common shares.

 

Series
A Senior Convertible Preferred Shares

 

Dividends.
Dividends at the rate per annum of 14.0% of the stated value ($2.00 per share, subject to adjustment) shall accrue on the
series A senior convertible preferred shares. Dividends shall accrue from day to day, whether or not declared, and shall be cumulative.
Dividends shall be payable quarterly in arrears on each dividend payment date in cash or common shares at our discretion. Dividends
payable in common shares shall be calculated based on a price equal to eighty percent (80%) of the volume weighted average price,
or VWAP, for the common shares on our principal trading market during the five (5) trading days immediately prior to the applicable
dividend payment date.

 

Liquidation.
Subject to the rights of our creditors and the holders of any senior securities or parity securities (in each case, as defined
in the certificate of designation), upon any liquidation of our company or its subsidiaries, before any payment or distribution
of the assets of our company (whether capital or surplus) shall be made to or set apart for the holders of securities that are
junior to the series A senior convertible preferred shares as to the distribution of assets on any liquidation of our company,
each holder of outstanding series A senior convertible preferred shares shall be entitled to receive an amount of cash equal to
115% of the stated value plus an amount of cash equal to all accumulated accrued and unpaid dividends thereon (whether or not
declared) to, but not including the date of final distribution to such holders. If, upon any liquidation of our company, the assets
of our company, or proceeds thereof, distributable among the holders of the series A senior convertible preferred shares shall
be insufficient to pay in full the preferential amount payable to the holders of the series A senior convertible preferred shares
and liquidating payments on any other shares of any class or series of parity securities as to the distribution of assets on any
liquidation of our company, then such assets, or the proceeds thereof, shall be distributed among the holders of series A senior
convertible preferred shares and any such other parity securities ratably in accordance with the respective amounts that would
be payable on such series A senior convertible preferred shares and any such other parity securities if all amounts payable thereon
were paid in full.

 

     

     

    

 

Voting
Rights. The series A senior convertible preferred shares do not have any voting rights; provided that, so long as any series
A senior convertible preferred shares are outstanding, the affirmative vote of holders of a majority of series A senior convertible
preferred shares, which majority must include Leonite Capital LLC so long as it holds any series A senior convertible preferred
shares (which we refer to as the requisite holders), voting as a separate class, shall be necessary for approving, effecting or
validating any amendment, alteration or repeal of any of the provisions of the certificate of designation. In addition, so long
as any series A senior convertible preferred shares are outstanding, the affirmative vote of requisite holders shall be required
prior to our company’s or Kyle’s creation or issuance of (i) any parity securities; (ii) any senior securities; and
(iii) any new indebtedness other than intercompany indebtedness by Kyle’s in favor of our company, except any financing
transaction the use of proceeds of which we will use to redeem the series A senior convertible preferred shares and the warrants.

 

Conversion
Rights. Each series A senior convertible preferred share, plus all accrued and unpaid dividends thereon, shall be convertible,
at the option of the holder thereof, at any time and from time to time into such number of fully paid and nonassessable common
shares determined by dividing the stated value, plus the value of the accrued, but unpaid, dividends thereon, by the conversion
price of $2.00 per share; provided that in no event shall the holder of any series A senior convertible preferred shares be entitled
to convert any number of series A senior convertible preferred shares that upon conversion the sum of (i) the number of common
shares beneficially owned by the holder and its affiliates and (ii) the number of common shares issuable upon the conversion of
the series A senior convertible preferred shares with respect to which the determination of this proviso is being made, would
result in beneficial ownership by the holder and its affiliates of more than 4.99% of the then outstanding common shares of our
company. This limitation may be waived (up to a maximum of 9.99%) by the holder and in its sole discretion, upon not less than
sixty-one (61) days’ prior notice to our company.

 

Redemption.
We may redeem in whole (but not in part) the series A senior convertible preferred shares by paying in cash therefore a sum equal
to 115% of the stated value plus the amount of accrued and unpaid plus any other amounts due pursuant to the terms of the series
A senior convertible preferred shares.

 

Adjustments.
In addition to standard adjustments to the conversion price in the event of any share splits, share combinations, share reclassifications,
dividends paid in common shares, sales of substantially all of our assets, mergers, consolidations or similar transactions, the
certificate of designation contains a provision regarding adjustments to the dividend rate, stated value and conversion price
as follows:

 

		●	On
                                         the first day of the 12th month following the issuance date of any series
                                         A senior convertible preferred shares, the stated dividend rate shall automatically increase
                                         by five percent (5.0%) per annum and the conversion price shall automatically adjust
                                         to the lower of the (i) initial conversion price and (ii) the price equal to the lowest
                                         VWAP of the ten (10) trading days immediately preceding such date.

 

		●	On
                                         the first day of the 24th month following the issuance date of any series
                                         A senior convertible preferred shares, the stated dividend rate shall automatically increase
                                         by an additional five percent (5.0%) per annum, the stated value shall automatically
                                         increase by ten percent (10%) and the conversion price shall automatically adjust to
                                         the lower of the (i) initial conversion price and (ii) the price equal to the lowest
                                         VWAP of the ten (10) trading days immediately preceding such date.

 

		●	On
                                         the first day of the 36th month following the issuance date of any series
                                         A senior convertible preferred shares, the stated dividend rate shall automatically increase
                                         by an additional five percent (5.0%) per annum, the stated value shall automatically
                                         increase by ten percent (10%) and the conversion price shall automatically adjust to
                                         the lower of the (i) initial conversion price and (ii) the price equal to the lowest
                                         VWAP of the ten (10) trading days immediately preceding the third adjustment date. 

 

Notwithstanding
the foregoing, the conversion price for purposes of the adjustments above shall not be adjusted to a number that is below $0.0075.

 

    2

     

    

 

Additional
Equity Interest. On the third adjustment date set forth above, we are required to cause Kyle’s to issue to the holders
of series A senior convertible preferred shares, on a pro rata basis, a ten percent (10%) equity stake Kyle’s. We are required
to cause Kyle’s to grant to the holders of the series A senior convertible preferred shares upon the issuance to them of
such equity interest a right to receive an additional number of shares of common stock of Kyle’s if Kyle’s issues
to any third party equity securities at a price below the acquisition price (as defined below). Such additional number of shares
of common stock of Kyle’s to be issued in such instance shall be equal to a number of shares of common stock of Kyle’s
which, when added to the number of shares of common stock of Kyle’s constituting such equity interest, would be equal to
the total number of shares of common stock which would have been issued to a holder of series A senior convertible preferred shares
if the price per share of common stock of Kyle’s was equivalent to the price per equity security paid by such third party
in Kyle’s. For purposes of this provision, “acquisition price” means the price per share of Kyle’s that
was paid by us upon the acquisition of Kyle’s.

 

Other
Rights. Holders of series A senior convertible preferred shares have no preemptive or subscription rights for additional securities
of our company.

 

Allocation
Shares

 

Distribution
Rights. Under the terms of the operating agreement, our company will pay a profit allocation to our manager, as holder of
the allocation shares. See Item 1 “Business—Our Manager—Our Manager as an Equity Holder—Manager’s
Profit Allocation” for a description of our manager’s profit allocation to be paid to our manager and an example
of the calculation of the profit allocation.

 

Liquidation
Rights. Upon a liquidation of our company, any accrued, but unpaid profit allocation due to our manager as a result of our
manager’s ownership of the allocation shares would be paid to our manager before any payment is made of any amounts due
upon a liquidation to the holders of our common shares.

 

Voting
Rights. The operating agreement provides that the holder of allocation shares will not be entitled to any voting rights, except
that the holder of the allocation shares will have:

 

		●	voting
rights in connection with the merger or consolidation of our company, the sale, lease or exchange of all or substantially all
of our company’s assets and certain other business combinations or transactions;

 

		●	a
                                         consent right with respect to the dissolution of our company in certain circumstances;

 

		●	a
                                         consent right with respect to the amendment of the provisions providing for distributions
                                         to the holders of allocation shares;

 

		●	a
                                         consent right to any amendment to the provisions entitling the holders of allocation
                                         shares to appoint and remove directors who will serve on our board of directors of our
                                         company;

 

		●	a
                                         consent right to any amendment to the provision regarding the quorum and voting requirements
                                         for board meetings;

 

		●	a
                                         consent right to any amendment to the provisions regarding the indemnification and liability
                                         of directors;

 

		●	a
                                         consent right with respect to any amendment of the provision of the operating agreement
                                         governing amendments thereof; and

 

		●	a
                                         consent right with respect to any amendment that would adversely affect the holder of
                                         allocation shares.

 

In
addition, the holder of the allocation shares has the right to appoint one (1) director to our board of directors for every four
(4) members constituting the entire board of directors. Any director appointed to our board of directors by the holder of the
allocation shares will not be required to stand for election by the holders of our common shares and will not have any special
voting rights.

 

Other
Rights. Holders of allocation shares have no preemptive, conversion or subscription rights and there are no redemption or
sinking fund provisions applicable to the allocation shares.

 

    3

     

    

 

Warrants

 

In
connection with the unit offering described elsewhere in this report, we issued warrants for the purchase of an aggregate of 2,632,278
common shares. Each warrant is exercisable within three years at an exercise price of $2.50 per common share (subject to adjustment,
including a full ratchet antidilution adjustment), which may be exercised on a cashless basis if the underlying warrant shares
are not then registered or otherwise freely tradeable. The warrants contains an ownership limitation, such that the we shall not
effect any exercise of any warrant, and the holder shall not have the right to exercise any portion of such warrant, to the extent
that after giving effect to issuance of common shares upon exercise such warrant, such holder, together with its affiliates, and
any other persons acting as a group together with such holder or any of its affiliates, would beneficially own in excess of 4.99%
of the number of common shares outstanding immediately after giving effect to the issuance of common shares issuable upon exercise
of such warrant. Upon no fewer than 61 days’ prior notice to us, a purchaser may increase or decrease such beneficial
ownership limitation provisions and any such increase or decrease will not be effective until the 61st day after such notice is
delivered to us.

 

We
may force the exercise of the warrants at any time after the one year anniversary of the date of the warrants, if (i) our company
is listed on a national securities exchange or the over-the-counter market, (ii) the underlying common shares are registered or
the holder of the warrant otherwise has the ability to trade the underlying common shares without restriction, (iii) the 30-day
volume-weighted daily average price of our common shares exceeds 200% of the exercise price, as adjusted and (iv) the average
daily trading volume is at least 100,000 common shares during such 30-day period.

 

We
may redeem the warrants held by any holder in whole (but not in part) by paying in cash to such holder as follows: (i) $0.50 per
share then underlying the warrant if within the first twelve (12) months of issuance; (ii) $1.00 per share then underlying the
warrant if after the first twelve (12) months, but before twenty-four (24) months of issuance; and (iii) $1.50 per share then
underlying the warrant if after twenty-four months, but before thirty-six (36) months.

 

Agreement
to be Bound by our Operating Agreement; Power of Attorney

 

By
purchasing our shares, you will be admitted as a member of our company and will be deemed to have agreed to be bound by the terms
of the operating agreement. Pursuant to the operating agreement, each shareholder and each person who acquires a share from a
shareholder grants to certain of our officers (and, if appointed, a liquidator) a power of attorney to, among other things, execute
and file documents required for our qualification, continuance or dissolution. The power of attorney also grants certain of our
officers the authority to make certain amendments to, and to make consents and waivers under and in accordance with, our operating
agreement.

 

Ratification
of Agreements

 

The
operating agreement provides that each holder, by acquiring shares, ratifies and confirms the various agreements entered into
by our company, including but not limited to, the management services agreement, the supplemental put provision of the operating
agreement, and that the execution of any of these agreements does not constitute a breach of any duty existing under the operating
agreement or otherwise existing at law, in equity or otherwise by any persons, including our manager, approving, negotiating or
executing such agreements on behalf our company.

 

Waiver
of Jury Trial

 

Our
operating agreement provides that, to the extent permitted by law, holders of common shares waive the right to a jury trial of
any claim they may have against us arising out of or relating to our operating agreement, including any claim under the U.S. federal
securities laws. If we opposed a jury trial demand based on the waiver, the court would determine whether the waiver was enforceable
under the facts and circumstances of that case in accordance with applicable case law. See Item 1A “Risk Factors—Risks
Related to Ownership of Our Common Shares—Holders of our common shares may not be entitled to a jury trial with respect
to claims arising under our operating agreement, which could result in less favorable outcomes to the plaintiffs in any such action.”

 

Election
by Our Company

 

The
operating agreement provides that our board of directors may, without the vote of holders of our shares, cause our company to
elect to be treated as a corporation for United States federal income tax purposes if the board receives an opinion from a nationally
recognized financial advisor to the effect that the market valuation of our company is expected to be significantly lower as a
result of our company continuing to be treated as a partnership for United States federal income tax purposes than if our company
instead elected to be treated as a corporation for United States federal income tax purposes.

 

    4

     

    

 

Amendment
of the Operating Agreement

 

The
operating agreement may be amended by a majority vote of our board of directors of our company, except that amending the following
provisions requires an affirmative vote of at least a majority of the then outstanding common shares:

 

		●	the
                                         purpose or powers of our company;

 

		●	an
                                         increase in the number of common shares authorized for issuance;

 

		●	the
                                         distribution rights of the common shares;

 

		●	the
                                         voting rights relating to the common shares;

 

		●	the
                                         hiring of a replacement manager following the termination of the management services
                                         agreement;

 

		●	the
                                         merger or consolidation of our company, the sale, lease or exchange of all or substantially
                                         all of our company’s assets and certain other business combinations or transactions;

 

		●	the
                                         right of our shareholders to vote on the dissolution, winding up and liquidation of our
                                         company; and

 

		●	the
                                         provision of the operating agreement governing amendments thereof.

 

Anti-Takeover
Provisions

 

Certain
provisions of the management services agreement and the operating agreement may make it more difficult for third parties to acquire
control of our company by various means. These provisions could deprive our shareholders of opportunities to realize a premium
on the shares owned by them. In addition, these provisions may adversely affect the prevailing market price of our shares. These
provisions are intended to:

 

		●	protect
                                         our manager and its economic interests in our company;

 

		●	protect
                                         the position of our manager and its rights to manage the business and affairs of our
                                         company under the management services agreement;

 

		●	enhance
                                         the likelihood of continuity and stability in the composition of our board of directors
                                         and in the policies formulated by our board of directors;

 

		●	discourage
                                         certain types of transactions which may involve an actual or threatened change in control
                                         of our company;

 

		●	discourage
                                         certain tactics that may be used in proxy fights;

 

		●	encourage
                                         persons seeking to acquire control of our company to consult first with our board of
                                         directors to negotiate the terms of any proposed business combination or offer; and

 

		●	reduce
                                         the vulnerability of our company to an unsolicited proposal for a takeover that does
                                         not contemplate the acquisition of all of the outstanding shares or that is otherwise
                                         unfair to our shareholders.

 

Anti-Takeover
Effects of the Management Services Agreement

 

The
limited circumstances in which our manager may be terminated means that it will be very difficult for a potential acquirer of
our company to take over the management and operation of our business. Under the terms of the management services agreement, our
manager may only be terminated by our company in certain limited circumstances. Furthermore, our manager has the right to resign
and terminate the management services agreement upon 120 days’ notice.

 

Upon
the termination of the management service agreement, seconded officers, employees, representatives and delegates of our manager
and its affiliates who are performing the services that are the subject of the management services agreement, will resign their
respective position with our company and cease to work at the date of our manager’s termination or at any other time as
determined by our manager. Any director on our board of directors appointed by the holder of the allocation shares may continue
serving on our board of directors subject to our manager’s continued ownership of the allocation shares and subject to such
director’s removal by the holder of the allocation shares.

 

    5

     

    

 

If
we terminate the management services agreement, our company and its businesses must cease using the term “1847,” including
any trademarks based on the name of our company that may be licensed to them by our manager under a license grant in the management
services agreement, entirely in their businesses and operations within 180 days of our termination of the management services
agreement. The license grant requires our company and its businesses to change their names to remove any reference to the term
“1847” or any reference to trademarks licensed to them by our manager upon termination of the license which would
occur upon termination of the management services agreement.

 

See
Item 1 “Business—Our Manager—Termination of Management Services Agreement” for more information
about the termination provisions set forth in the management services agreement.

 

Anti-Takeover
Provisions in the Operating Agreement

 

A
number of provisions of the operating agreement also could have the effect of making it more difficult for a third-party to acquire,
or of discouraging a third-party from acquiring, control of our company. The operating agreement prohibits the merger or consolidation
of our company with or into any limited liability company, corporation, statutory trust, business trust or association, real estate
investment trust, common-law trust or any other unincorporated business, including a partnership, or the sale, lease or exchange
of all or substantially all of our company’s property or assets unless, in each case, our board of directors adopts a resolution
by a majority vote approving such action and unless such action is approved by the affirmative vote of the holders of a majority
of each of the outstanding common shares and allocation shares entitled to vote thereon.

 

In
addition, the operating agreement contains provisions based generally on Section 203 of the General Corporation Law of the
State of Delaware which prohibits our company from engaging in a business combination with an interested holder of our common
shares unless such business combination is approved by the affirmative vote of the holders of 66 2/3% of each of the outstanding
common shares and allocation shares, excluding shares held by the interested holder or any affiliate or associate of the interested
holder of interests.

 

Subject
to the right of our manager to appoint directors and any successor in the event of a vacancy, the operating agreement authorizes
our board of directors to increase the size of the board of directors and to fill vacancies on our board of directors. This provision
could prevent a holder of common shares from effectively obtaining an indirect majority representation on our board of directors
by permitting the existing board of directors to increase the number of directors and to fill the vacancies with its own nominees.
The operating agreement also provides that directors may be removed, with or without cause, only by the affirmative vote of holders
of two-thirds of the then outstanding common shares. A director appointed by our manager may only be removed by our manager, as
holder of the allocation shares.

 

The
operating agreement provides that special meetings may only be called by the Chairman of our board of directors or by resolution
adopted by our board of directors.

 

The
operating agreement also provides that holders of common shares seeking to bring business before an annual meeting of members
or to nominate candidates for election as directors at an annual meeting of members must provide notice thereof in writing to
our company not less than 120 days and not more than 150 days prior to the anniversary date of the preceding year’s
annual meeting of members or as otherwise required by requirements of the Exchange Act. In addition, the holders of common shares
furnishing such notice must be a holder of record on both (i) the date of delivering such notice and (ii) the record
date for the determination of members entitled to vote at such meeting. The operating agreement specifies certain requirements
as to the form and content of a member’s notice. These provisions may preclude members from bringing matters before members
at an annual meeting or from making nominations for directors at an annual or special meeting.

 

Authorized
but unissued shares are available for future issuance, without further approval of our shareholders. These additional shares may
be utilized for a variety of purposes, including future public offerings to raise additional capital or to fund acquisitions,
as well as option plans for employees of our company or its businesses. The existence of authorized but unissued shares could
render more difficult or discourage an attempt to obtain control of our company by means of a proxy contest, tender offer, merger
or otherwise.

 

In
addition, our board of directors has broad authority to amend the operating agreement, as discussed above. Our board of directors
could, in the future, choose to amend the operating agreement to include other provisions which have the intention or effect of
discouraging takeover attempts.

 

Transfer
Agent and Registrar

 

The
transfer agent and registrar for our common shares is VStock Transfer, LLC. The address for VStock Transfer, LLC is 18 Lafayette
Pl, Woodmere, NY 11598, and the telephone number is (212) 828-8436.

 

    6Exhibit 10.47

 

 

 

 

 

 

 

INDUSTRIAL
LEASE

 

 

 

by
and between

 

 

 

STEPHEN
& RITA MALLATT

 

 

LANDLORD

 

 

 

and

 

 

 

KYLE’S
CUSTOM WOOD SHOP, INC.

 

 

TENANT

 

 

 

 

 

 

 

www.hawleytroxell.com

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	 	 	Page
	Article 1 LEASE OF PREMISES	 	3
	 	1.1 	Leased Premises	 	3
	 	1.2 	Acceptance of Premises	 	3
	 	 	 	 
	Article 2 TERM OF LEASE	 	3
	 	2.1 	Lease Term	 	3
	 	2.2 	Renewal Term	 	3
	 	 	 	 
	Article 3 RENTAL AND OTHER PAYMENTS	 	4
	 	3.1 	Base Rent	 	4
	 	3.2 	Time and Manner of Rent Payments	 	4
	 	3.3 	Additional Rent	 	4
	 	3.4 	Delinquent Rental Payments	 	4
	 	3.5 	Net Lease	 	4
	 	3.6 	Independent Obligation	 	4
	 	3.7 	Application of Rent Payments	 	4
	 	 	 	 
	Article 4 OPERATING COSTS	 	4
	 	4.1 	Operating Costs	 	4
	 	4.2 	Definitions	 	4
	 	 	 	 
	Article 5 USE OF PREMISES	 	5
	 	5.1 	Use of Premises	 	5
	 	5.2 	Operation by Tenant	 	5
	 	5.3 	Landlord’s Access	 	5
	 	5.4 	Signs	 	5
	 	 	 	 
	Article 6 HAZARDOUS MATERIALS	 	5
	 	6.1 	Compliance with Hazardous Materials Laws	 	5
	 	6.2 	Notice Actions	 	6
	 	6.3 	Disclosure and Warning Obligations	 	6
	 	6.4 	Indemnification	 	6
	 	 	 	 
	Article 7 MAINTENANCE AND REPAIR	 	6
	 	7.1 	Landlord’s Obligations	 	6
	 	7.2 	Tenant’s Obligations	 	7
	 	7.3 	Damage Caused by Tenant	 	7
	 	7.4 	Tenant to Keep Premises Clean	 	7
	 	7.5 	Tenant’s Negative Covenants	 	7
	 	7.6 	Maintenance/Service Contract	 	7
	 	 	 	 
	Article 8 ALTERATIONS	 	7
	 	 	 	 
	Article 9 UTILITIES	 	8
	 	 	 	 
	Article 10 INSURANCE	 	8
	 	10.1 	Tenant’s Insurance Obligations	 	8
	 	 	10.1.1 	Liability Insurance	 	8
	 	 	10.1.2 	Property Insurance	 	8
	 	 	10.1.3 	Worker’s Compensation	 	8
	 	 	10.1.4 	Intentionally Deleted	 	8
	 	 	10.1.5 	Additional Insurance	 	8

 

    Table of Contents - i

     

    

 

	 	10.2	Landlord’s Insurance Obligations 	 	8
	 	 	10.2.1 	Property Insurance	 	8
	 	 	10.2.2 	Payment of Premiums	 	9
	 	10.3 	Tenant’s Failure to Insure	 	9
	 	10.4 	No Limitation	 	9
	 	10.5 	Waiver of Subrogation	 	9
	 	10.6 	Indemnity	 	9
	 	 	 	 
	Article 11 DEFAULT AND REMEDIES	 	9
	 	11.1 	Event of Default	 	9
	 		11.1.1	Failure to Pay Rent	 	9
	 		11.1.2	Failure to Pay Other Amounts	 	9
	 		11.1.3	Failure to Perform	 	9
	 		11.1.4	Guaranty Default	 	9
	 		11.1.5	Other Defaults	 	9
	 	11.2 	Remedies	 	10
	 	11.3 	No Waiver	 	11
	 	 	 	 
	Article 12 DAMAGE AND DESTRUCTION	 	11
	 	12.1 	Notice of Casualty	 	11
	 	12.2 	Tenantable Within 270 Days	 	11
	 	12.3 	Not Tenantable Within 270 Days	 	11
	 	12.4 	Termination	 	11
	 	12.5 	Insufficient Proceeds	 	11
	 	12.6 	Landlord’s Repair Obligations	 	11
	 	 	 	 
	Article 13 EMINENT DOMAIN 12	 	12
	 	13.1 	Termination of Lease	 	12
	 	13.2 	Landlord’s Repair Obligations	 	12
	 	13.3 	Tenant’s Participation	 	12
	 	 	 	 
	Article 14 CREDITORS; ESTOPPEL CERTIFICATES	 	12
	 	14.1 	Subordination	 	12
	 	14.2 	Nondisturbance	 	12
	 	14.3 	Attornment	 	12
	 	14.4 	Estoppel Certificate	 	12
	 	 	 	 
	Article 15 ASSIGNMENT AND SUBLEASING	 	13
	 	15.1 	Relationship of Parties	 	13
	 	15.2 	Successors and Assigns	 	13
	 	15.3 	Assignment and Subletting	 	13
	 	 	15.3.1 	Consent Required	 	13
	 	 	15.3.2 	Continuing Liability; Default; Waiver	 	13
	 	 	15.3.3 	Assumption by Transferee	 	13
	 	15.4 	Landlord’s Transfer	 	13
	 	 	 	 
	Article 16 QUIET ENJOYMENT	 	13
	 	 	 	 
	Article 17 TERMINATION OF LEASE	 	13
	 	17.1 	Condition	 	13
	 	17.2 	Holding Over	 	14
	 	17.3 	Indemnity	 	14
	 	17.4 	Abandoned Property	 	14
	 	 	 	 	 
	Article 18 DAMAGE TO TENANT’S PROPERTY	 	14

 

    Table of Contents - ii

     

    

 

	Article
    19 RULES AND REGULATIONS	 	14
	 	 	 	 
	Article
    20 MISCELLANEOUS	 	14
	 	20.1	Notices	 	 	14
	 	20.2	Successors	 	14
	 	20.3	Transfer
    of Landlord’s Interest	 	14
	 	20.4	Entire
    Agreement; Amendment	 	14
	 	20.5	Severability	 	15
	 	20.6	Attorneys’
    Fees	 	15
	 	20.7	Brokers	 	15
	 	20.8	Intentionally
    Omitted	 	15
	 	20.9	Governing
    Law	 	15
	 	20.10	Time
    is of the Essence	 	15
	 	20.11	Relationship
    of Parties	 	15
	 	20.12	Construction
    of Lease and Terms	 	15
	 	20.13	Counterparts	 	15

 

    Table of Contents - iii

     

    

 

INDUSTRIAL
LEASE

 

This
Industrial Lease (this “Lease”) is made and entered info effective the 1st day of September, 2020 (“Effective
Date”) by and between Stephen Mallatt, Jr. and Rita Mallatt, together as “Landlord”, and Kyle’s
Custom Wood Shop, Inc., an Idaho corporation, as “Tenant”.

 

BASIC
LEASE INFORMATION

 

The
following Basic Lease Information is applied under and governed by the particular section(s) in this Lease pertaining to the following
information:

 

		1.	Premises. 	 	That certain real property located at 10849 W. Emerald
St., Boise, ID 83713, which is more particularly described and approximately depicted on Exhibit A, attached hereto and
incorporated herein, and the Building and all other improvement located thereon.

 

		2.	Building. 	 	That certain Building, constituting a portion of the
Premises, consisting of approximately 6,601 square feet and depicted on Exhibit A.

 

		3.	Lease
                                         Term. 	 	Commencing on the Commencement Date and ending sixty
(60) months (5 years) following the first day of the calendar month immediately following the month containing the Commencement
Date (unless the Commencement Date is the first day of a calendar month, in which event the Lease Term shall end sixty (60) months
following the Commencement Date). (See Section 2.1)

 

		4.	Commencement
                                         Date. 	 	September 1, 2020

 

		5.	Renewal
                                         Option. 	 	(See Section 2.2)

 

		6.	Base Rent.	 	 

 

	Months	Annual Base Rent	Monthly Installment
	1-12	$84,000.00	$7,000.00
	13-36	$86,520.00	$7,210.00
	37-60	$89,115.60	$7,426.30

 

		7.	Additional
                                         Rent. 	 	Taxes, insurance, and all other monetary obligations,
other than Base Rent, of Tenant to Landlord under the terms of this Lease, whether or not specified as Additional Rent herein.

 

		8.	Permitted Use. 	 	Combined wood manufacturing and office space.

 

		9.	Rent
                                         Payment Address. 	 	Stephen Mallatt, Jr. 

2950 E. Lucca Dr. 

Meridian, ID
83642

 

		10.	Address
                                         for Landlord for Notices. 	 	Stephen Mallatt, Jr.
	 	 		 	2950
E. Lucca Dr.
	 	 		 	Meridian,
ID 83642

 

		11.	Address
                                         of Tenant for Notices.	 	Kyle’s
Custom Wood Shop, Inc.
	 	 	 	 	10849
W. Emerald St. 

Boise, ID 83713

 

		12.	Security Deposit. 	 	Landlord my require Tenant to pay a security deposit
in the amount of $8,000.00 at any time, upon written notice to Tenant. Tenant shall pay such deposit within seven (7) days of
demand.

 

    INDUSTRIAL LEASE - 1

     

    

 

		13.	Guarantor. 	 	N/A

 

		14.	Brokers.	 	N/A

 

 

The
foregoing basic lease information (the “Basic Lease Information”) is incorporated into and made a material
part of the Lease, dated as of the date written above, by and between Landlord and Tenant, to which this Basic Lease Information
is attached. If there is any conflict between the Basic Lease Information and the Lease, the Lease shall control.

 

 

[Continued]

 

    INDUSTRIAL LEASE - 2

     

    

 

Article
1 

LEASE OF PREMISES

 

1.1
Leased Premises. Subject to the terms and conditions of this Lease, Landlord hereby leases to Tenant, and Tenant hereby leases
from Landlord, the Premises for the Lease Term, subject to earlier termination pursuant to any of the terms, covenants or conditions
of this Lease or pursuant to law.

 

1.2
Acceptance of Premises. Tenant hereby acknowledges that except as expressly set forth in this Lease: (a) Tenant has had the
opportunity to inspect the Premises and accepts the Premises in its “AS IS, WHERE IS” condition; (b) the Premises
is acceptable for Tenant’s intended Permitted Use; (c) neither Landlord, Landlord’s Broker, nor any of Landlord’s
agents, has made any oral or written representations or warranties with respect to said matters other than as set forth in this
Lease; and (d) TENANT EXPRESSLY WAIVES ANY WARRANTY OF CONDITION OR OF HABITABILITY OR SUITABILITY FOR OCCUPANCY, USE, HABITATION,
FITNESS FOR A PARTICULAR PURPOSE, OR MERCHANTABILITY, EXPRESS OR IMPLIED, RELATING TO THE PREMISES. Landlord represents, warrants,
and covenants to Tenant that to Landlord’s knowledge as of the Commencement Date: (a) the roof and slab on the Building
are in good working order; (b) the electrical, lighting, heating, plumbing and plumbing fixtures, and any air conditioning systems
in the Building are in good working order and condition. Landlord warrants that, as of the Effective Date and to Landlord’s
knowledge, it has not received any notice of non-compliance with any governmental statutes, laws, ordinances, orders, decrees,
decisions, rules and regulations applicable to the purpose, use and occupancy of the Premises. Notwithstanding the forgoing warrant,
Landlord has received a building permit violation notice from the City of Boise, and a fire protection system testing past-due
notice from Boise Fire Department related to the two small “lean-to” sheds constructed and located on the Premises.
Both matters remain outstanding. The Landlord is presently working with the City of Boise and Boise Fire Department regarding
resolutions of the building permit and fire suppression matters related to the two small “lean-to” sheds constructed
and located on the Premises.

 

Article
2 

TERM OF LEASE

 

2.1
Lease Term. The Lease Term is the period stated in the Basic Lease Information. The Lease Term commences on the Commencement
Date and, unless earlier terminated in accordance with the terms and conditions of this Lease, expires on the last day of the
last calendar month of the Lease Term. Notwithstanding the foregoing, from and after the date of full execution and delivery of
this Lease, this Lease shall be in full force and effect, and Tenant shall keep, perform and observe all the terms, covenants,
conditions, agreements, indemnities and other promises to be kept, performed and observed by Tenant with respect to the Premises
(other than payment of Rent) prior to the Commencement Date.

 

2.2
Renewal Term. Tenant shall have the right, subject to the provisions hereinafter provided, to renew the Lease Term for one
(1) period of five (5) years (each such period is herein referred to as a “Renewal Term”) on the terms and
provisions of this Section provided:

 

2.2.1
This Lease is in full force and effect and Tenant is not in material default in the performance of any of the terms, covenants
and conditions herein contained, in respect to which notice of default has been given hereunder which has not been or is not being
remedied in the time limited in this Lease, at the time of exercise of the right of renewal and at the time set for commencement
of any Renewal Term and Rent and Additional Rent are paid in full, but Landlord shall have the right at its sole discretion to
waive this condition;

 

2.2.2
Each Renewal Term shall be upon the same terms, covenants and conditions as provided in this Lease; provided, however, the
annual Base Rent for the first year of each Renewal Term shall be increased by three (3%) percent, and shall be increased each
subsequent two (2) years during any applicable Renewal Term by three (3%) percent (i.e., escalating 3% for year 1, 3% for years
2-3, and 3% for years 4-5).

 

2.2.3
That Tenant shall exercise its right to each Renewal Term provided herein by notifying Landlord in writing of its election
to renew the Lease Term on or before the date that not more than twelve (12) months and not less than six (6) months prior to
the expiration of the initial Lease Term or the then-current Renewal Term, as applicable (each, an “Extension Notice”).
Within thirty (30) days after receipt of Tenant’s Extension Notice, Landlord shall advise Tenant of the adjusted Base Rent
for the first year of the applicable Renewal Term. Upon determination of the Prevailing Market Rental Rate for the applicable
Renewal Term, the parties will execute an amendment to this Lease to establish and evidence such rate as the Base Rent for the
Renewal Term.

 

 2.2.4 Time is of the essence with respect to the rights granted by this Section 2.2.

 

2.2.5
If Tenant does not exercise a Renewal Term, then all subsequent Renewal Terms shall automatically expire.

 

2.2.6
The right to renew the Lease Term granted in this Section 2.2 is personal to the original named
Tenant and may be exercised only by the originally named Tenant, unless otherwise greed in advance by Landlord in writing.

 

    INDUSTRIAL LEASE - 3

     

    

 

Article
3

RENTAL
AND OTHER PAYMENTS

 

3.1
Base Rent. Tenant covenants and agrees to pay Base Rent, as set forth in the Basic Lease Information, to Landlord throughout
the Lease Term.

 

3.2
Time and Manner of Rent Payments. Tenant shall pay Base Rent to Landlord in equal monthly installments, in the amounts set
forth in the Basic Lease Information, in advance, commencing on the first (1st) day of each month during the Term,
without notice or demand. Tenant will make all Base Rent payments to Landlord at the address specified in the Basic Lease Information or at such other place or in such other manner as Landlord may from time to time designate in writing. Landlord and Tenant will
prorate, on a per diem basis, Base Rent for any partial month within the Lease Term. If Landlord shall at any time or times accept
Rent to which Landlord is entitled hereunder after the same shall become due and payable, such acceptance shall not excuse a delay
upon subsequent occasions, or constitute, or be construed as, a waiver of any or all of Landlord’s rights hereunder. Tenant’s
obligation for the payment of Rent shall survive the expiration or sooner termination of this Lease.

 

3.3
Additional Rent. Tenant shall pay to Landlord all Additional Rent payable to Landlord pursuant to the terms and conditions
of this Lease within thirty (30) days after written demand therefore from Landlord, unless a different time period is specified
in this Lease. “Additional Rent” shall mean all monetary obligations, other than Base Rent, of Tenant to Landlord
under the terms of this Lease, whether or not specified as Additional Rent herein. “Rent” shall mean Base Rent
and Additional Rent collectively.

 

3.4
Delinquent Rental Payments. If any payment of Rent or any other charge or expense payable under this Lease is not received
by Landlord within five (5) days of when due, Landlord my assess and Tenant shall pay to Landlord, as Additional Rent, interest
on the overdue amount to Landlord at twelve percent (12%) per annum. Such overdue payment shall bear interest from the applicable
due date, without regard to any grace period, until the date such payment is received by Landlord. Such payment shall be in addition
to, and not in lieu of, any other remedy Landlord may have.

 

3.5
Net Lease. It is the intention of the parties that this Lease is a “triple net lease” and Landlord shall receive
the Rent, undiminished from all operations, maintenance, and repairs relating to the Premises as set forth herein, which shall
arise or become due during the Lease Term, all of which shall be paid by Tenant.

 

3.6
Independent Obligation. Notwithstanding any contrary term or provision of this Lease, Tenant’s covenant and obligation
to pay Rent is independent from any of Landlord’s covenants, obligations, warranties or representations in this Lease. Tenant
will pay Rent without any right of offset or deduction.

 

3.7
Application of Rent Payments. All monies paid by Tenant to Landlord shall be applied in the following order to such amounts
then due and owing to Landlord pursuant to this Lease: (1) any unpaid Operating Costs, (2) to any utilities paid by Landlord on
Tenant’s behalf, (3) interest on any amounts due and owing to Landlord, (4) reasonable attorney fees and cost incurred by
Landlord, (5) late fees, (6) other amounts owed to or paid or incurred by Landlord on Tenant’s behalf (including but not
limited to repairs, maintenance, taxes or insurance), and (7) then to Base Rent.

 

Article
4 

OPERATING COSTS

 

4.1
Operating Costs. In addition to Base Rent, Tenant shall pay as Additional Rent, the Operating Costs (as defined below) for
the operation, maintenance, and repair of the Premises as required by this Lease. Tenant shall directly pay and be responsible
for all Operating Costs to the appropriate parties.

 

 4.2 Definitions. The following terms shall have the respective meanings hereinafter specified:

 

4.2.1 “Operating
Costs” shall mean all costs of operating, maintaining and repairing the Premises including, without limitation, the
following: Property Taxes (as hereinafter defined); utilities, including without limitation, electricity, power, gas, water,
sewer, lighting, heating, air conditioning and ventilating, which are not directly paid by Tenant; permits, licenses and
certificates necessary to operate, manage and lease the Premises; insurance for the Premises, and the Landlords or property
manager’s personal property used solely in the operation of the Premises; supplies, tools, equipment and materials used
in the operation, repair and maintenance of the Premises; accounting, legal, inspection, consulting, and other services;
equipment rental (or installment equipment purchase or equipment financing agreements); management agreements (including the
cost of any management fee actually paid thereunder, up to customary and reasonable amounts); wages, salaries and other
compensation and benefits for all persons engaged in the operation or maintenance of the Premises; payments under any
easement, operating agreement, declaration, restrictive covenant; window cleaning; trash and rubbish removal; seal coating,
slurry coating, patching, re paving, resurfacing, overlaying and re striping parking facilities; roof repairs; and
maintenance, repair of all electrical systems, lighting systems, lights, poles, bulbs and ballasts. Notwithstanding the
foregoing, Operating Costs shall not include depreciation, interest and amortization on mortgages or other debt costs or
ground lease payments, if any; real estate brokers’ leasing commissions; improvements or alterations to tenant spaces;
the cost of providing any service directly to and paid directly by Tenant; costs of any items to the extent Landlord receives
reimbursement from insurance proceeds or from a third party (such proceeds to be deducted from Operating Costs in the year in
which received); and any expense attributable to costs incurred by Landlord for any capital repairs, improvements or
replacement to the Building, including those required by any change in the laws, ordinances, rules, regulations, or otherwise
and that are required by any governmental or quasi-governmental authority having jurisdiction over the Property, provided
that the cost of each such capital improvement, together with any financing charges incurred in connection therewith, shall
be amortized over the useful life thereof, as determined by Landlord, and only that yearly portion shall be included in the
Operating Costs for any applicable Lease year.

 

    INDUSTRIAL LEASE - 4

     

    

 

4.2.2 “Property
Taxes” shall mean all real and personal property taxes and assessments imposed by any governmental authority or
agency on the Premises; any assessments levied in lieu of such taxes; any non-progressive tax on the rental of the Premises;
and any other costs levied or assessed by, or at the direction of, any federal, state, or local government authority in
connection with the use or occupancy of the Premises, less any tax refunds obtained as a result of an application for review
thereof; but shall not include any net income, franchise, estate or inheritance taxes.

 

Article
5

USE
OF PREMISES

 

5.1
Use of Premises. Tenant will use the Premises exclusively for the Permitted Use, consistent with current practices, and shall
not use the Premises for any other purposes. In the event required, Tenant shall, at Tenant’s expense, apply for and obtain
a Certificate of Occupancy with respect to the Premises, based upon the Permitted Use, from the appropriate authority prior to
the Commencement Date.

 

5.2
Operation by Tenant. From and after the Effective Date, Tenant covenants and agrees that it will comply with all laws, ordinances,
rules and regulations of governmental, public, private and other authorities and agencies, relating to Tenant’s use or occupancy
of the Premises. Tenant also covenants and agrees it will not use the Premises in a manner which constitutes a nuisance or waste.
Tenant shall promptly take and pay for all substantial and non-substantial actions necessary to comply with all laws regulating
the use by Tenant of the Premises, including, without limitation, the OSH Act and the Americans with Disabilities Act of 1990,
as amended. Tenant’s failure to comply with the requirements of this Section 5.2 shall be an
Event of Default (as defined below).

 

5.3
Landlord’s Access. Landlord or its agents may enter the Premises at all reasonable times to inspect the Premises or
to show the Premises to potential buyers, investors, tenants, or other parties, or for any other purpose Landlord deems necessary.
Landlord shall give Tenant twenty-four (24) hours prior written notice of such entry, except in the case of an emergency. Any
entry to the Premises obtained by Landlord by any of said means, or otherwise, shall not under any circumstances be construed
or deemed to be a forcible or unlawful entry into, or a detainer of the Premises, or an eviction of Tenant from the Premises or
any portion thereof. Landlord may place customary “For Sale” or “For Lease” signs on or about the Premises.

 

5.4
Signs. Tenant shall not install any sign, picture, advertisement, notice, lettering or decoration to be painted, affixed or
displayed on any part of the exterior of the building, or anywhere in the interior of the Premises where the item is prominently
visible from the exterior of the building, without, in each instance, first obtaining the prior written approval of Landlord not
to be unreasonably withheld, which approval will include, but is not limited to, the color, size, location and method of installation
of the requested signage. All Tenant signage and advertising must also comply with all rules and regulations of the City of Boise,
and/or any other legal authority with such signage jurisdiction. All such signs will remain the property of Tenant and will be
maintained in proper working order at all times by Tenant at Tenant’s sole cost and expense. At or before the expiration
or earlier termination of the Term, Tenant will remove its sign(s) from the Premises and will promptly repair all damage caused
by the removal.

 

Article
6 

HAZARDOUS MATERIALS.

 

6.1
Compliance with Hazardous Materials Laws. Tenant will not cause any Hazardous Material to be brought upon, kept or used on
the Premises in a manner or for a purpose prohibited by or that could result in liability under any Hazardous Materials Law. Tenant,
at its sole cost and expense, will comply with all Hazardous Materials Laws and prudent industry practice relating to the presence,
treatment, storage, transportation, disposal, release or management of Hazardous Materials in, on, under or about the Premises
that Tenant brings upon, keeps or uses on the Premises and will notify Landlord of any and all Hazardous Materials Tenant brings
upon, keeps or uses on the Premises (other than small quantities of office cleaning or other office supplies as are customarily
used by a tenant in the ordinary course in a general office facility). On or before the expiration or earlier termination of this
Lease, Tenant, at its sole cost and expense, will completely remove from the Premises (regardless whether any Hazardous Materials
Law requires removal), in compliance with all Hazardous Materials Laws, all Hazardous Materials Tenant causes to be present in,
on, under or about the Premises. Tenant will not take any remedial action in response to the presence of any Hazardous Materials
in on, under or about the Premises, nor enter into any settlement agreement, consent decree or other compromise with respect to
any claims, actions, demands, liabilities, damages, costs, penalties, forfeitures, losses or expenses (“Claims”)
relating to or in any way connected with Hazardous Materials in, on, under or about the Premises without first notifying Landlord
of Tenant’s intention to do so and affording Landlord reasonable opportunity to investigate, appear, intervene and otherwise
assert and protect Landlord’s interest in the Premises. Tenant shall cooperate with Landlord and permit Landlord and all
governmental authorities having jurisdiction reasonable access to the Premises for purposes of conducting any environmental monitoring
required by applicable Hazardous Materials Laws.

 

    INDUSTRIAL LEASE - 5

     

    

 

6.2
Notice Actions. Tenant will notify Landlord of any of the following actions affecting Landlord, Tenant or the Premises that
result from or in any way relate to Tenant’s use of the Premises immediately after receiving notice of the same: (a) any
enforcement, clean-up, removal or other governmental or regulatory action instituted, completed or threatened under any Hazardous
Materials Law; (b) any Claims made or threatened by any person relating to damage, contribution, liability, cost recovery, compensation,
loss or injury resulting from or claimed to result from any Hazardous Material; and (c) any reports made by any person, including
Tenant, to any environmental agency relating to any Hazardous Material, including any complaints, notices, warnings or asserted
violations. Tenant will also deliver to Landlord, as promptly as possible and in any event within five (5) business days after
Tenant first receives or sends the same, copies of all Claims, reports, complaints, notices, warnings or asserted violations relating
in any way to the Premises or Tenant’s use thereof. Upon Landlord’s written request, Tenant will promptly deliver
to Landlord documentation acceptable to Landlord reflecting the legal and proper disposal of all Hazardous Materials removed or
to be removed from the Premises. All such documentation will list Tenant or its agent as a responsible party and will not attribute
responsibility for any such Hazardous Materials to Landlord.

 

6.3
Disclosure and Warning Obligations. Tenant acknowledges and agrees that all reporting and warning obligations required under
Hazardous Materials Laws resulting from or in any way relating to Tenant’s use of the Premises are Tenant’s sole responsibility,
regardless whether the Hazardous Materials Laws permit or require Landlord to report or warn.

 

6.4
Indemnification. Tenant releases and will indemnify, defend (with counsel reasonably acceptable to Landlord), protect and
hold harmless Landlord and Landlord’s respective family members, officers, directors, partners, shareholders, members employees,
successors and assigns from and against any and all Claims whatsoever arising or resulting, in whole or in part, directly or indirectly,
from the presence, treatment, storage, transportation, disposal, release or management of Hazardous Materials in, on, under, upon
or from the Premises (including water tables and atmosphere) that Tenant brings upon, keeps or uses on the Premises. Tenant’s
obligations under this Section 6.4 include, without limitation and whether foreseeable or unforeseeable,
(a) the costs of any required or necessary repair, clean-up, detoxification or decontamination of the Premises; (b) the costs
of implementing any closure, remediation or other required action in connection therewith as stated above; (c) the value of any
loss of use and any diminution in value of the Premises; and (d) consultants’ fees, legal fees, fines, administrative costs
of a third party, experts’ fees and response costs. The foregoing indemnification shall survive any assignment or termination
of this Lease.

 

 6.5 For purposes of this Article 6:

 

6.5.1
“Hazardous Materials” means any pollutant, contaminant, or hazardous, dangerous, or toxic chemicals, materials,
or substances within the meaning of any applicable Environmental Law relating to or imposing liability or standards of conduct
concerning any hazardous, toxic, or dangerous waste substance or material, all as amended or hereafter amended, including, without
limitation, any material or substance which is: (a) designated as a “hazardous substance” pursuant to Section 311
of the Federal Water Pollution Control Act (33 U.S.C. § 1317) or equivalent State Laws; (b) defined as a “hazardous
waste” pursuant to § 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. §
6903) or equivalent State Laws; (c) defined as a “hazardous substance” pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq. (42 U.S.C. § 9601) or equivalent State
Laws; (d) petroleum; (e) asbestos or asbestos- containing materials; (f) polychlorinated biphenyls (“PCBs”)
or substances or compounds containing PCBs; (g) radon; (h) medical waste; and (i) petroleum products.

 

6.5.2
“Environmental Law” mean all laws: (a) relating to the environment, human health, or natural resources;
(b) regulating, controlling, or imposing liability or standards of conduct concerning any Hazardous Materials; (c) relating to
the investigation, response, clean up, remediation, prevention, mitigation, or removal of any Hazardous Materials necessary to
comply with any Environmental Laws; and (d) requiring notification or disclosure of releases of Hazardous Materials or of the
existence of any environmental conditions on or at the Premises, as any of the foregoing may be amended, supplemented, or supplanted
from time to time.

 

Article
7 

MAINTENANCE AND REPAIR

 

7.1
Landlord’s Obligations. Landlord, at Landlord’s cost and expense, shall maintain and keep in good repair the foundations,
exterior walls, the roof and other structural portions of the Building. Notwithstanding the foregoing, any costs incurred by Landlord
in the maintenance or repair of above identified elements of the Building caused by normal wear and tear shall be an Operating
Cost.

 

Landlord
shall not be liable for any failure to make any such repairs or to perform any maintenance unless such failure shall persist for
an unreasonable time, not to exceed thirty (30) days (unless Landlord is not reasonably able to make such repairs within a 30-day
period, then in such event Landlord will have an additional reasonable period of time to perform the repairs as long as Landlord
commences the repairs within the 30-day period and thereafter diligently pursues the same to completion), after written notice
of the need of such repairs or maintenance is given by Tenant to Landlord.

 

    INDUSTRIAL LEASE - 6

     

    

 

7.2
Tenant’s Obligations. Tenant shall at its expense maintain and repair all portions of the Premises and the
equipment, systems or fixtures relating thereto, except to the extent specified in Section 7.1 above, at all times in good
condition and repair, all in accordance with the laws of the State of Idaho and all health, fire, police and other
ordinances, regulations and directives of governmental agencies having jurisdiction over such matters; provided, however,
that Tenant’s obligation for repairs and replacement of the HVAC system is capped at $3,500 per unit, per occurrence,
during the Lease Term. Tenant shall also, at its expense: a) provide all janitorial services required for the Premises; b)
separately contract for snow removal on the Premises; c) maintain and keep the landscaping on the Premises is a good and
attractive appearance; and d) pay for and maintain the security system on the Premise. Tenant shall replace at
Tenant’s sole expense any glass that may be broken in the Premises, and elsewhere in the Building if done through any
fault or negligence of Tenant or any Tenant Representative (except to the extent covered by insurance), with glass of the
same size, specifications and quality, with signs thereon, if required. Tenant is responsible for any specialty items in
place or installed in the Premises including, without limitation, lighting that is not Building-standard, or plumbing and
access system installed by Tenant.

 

7.3
Damage Caused by Tenant. Notwithstanding any contrary provisions set forth in this Lease, any damage to the Premises, including
but not limited to, exterior glass for the Building or its systems, or the improvements, caused by Tenant or a Tenant Representative
(as defined below), shall be promptly repaired or replaced to or better than its former condition in a good and workmanlike manner
by Tenant, as required and approved by Landlord, at Tenant’s expense. Tenant shall not be responsible for the cost of such
damage to the extent it is covered by insurance and any subrogation claims shall be waived to the extent such waiver does not
invalidate coverage. The term “Tenant Representative” shall mean any shareholder, officer, director, member,
partner, employee, agent, licensee, assignee, sublessee or invitee of Tenant, or any third party other than Landlord.

 

7.4
Tenant to Keep Premises Clean. In addition to the foregoing, and not in limitation of it, Tenant shall also, at Tenant’s
expense, undertake all replacement of all plate glass and light bulbs, florescent tubes and ballasts, and decorating, redecorating
and cleaning of the interior of the Building, and shall keep and maintain the Premises in a clean condition, free from debris,
trash, refuse, snow and ice.

 

7.5
Tenant’s Negative Covenants. Tenant shall not injure, deface, permit waste nor otherwise harm any part of the Premises,
permit any nuisance at the Premises, permit the emission of any objectionable noise or odor from the Premises, place a load on
the floor on the Premises exceeding the floor load per square foot the floor was designed to carry, or install, operate or maintain
any electrical equipment in the Premises that shall not bear an underwriters approval.

 

7.6
Maintenance/Service Contract. Tenant may (or upon written demand by Landlord), at Tenant’s expense, enter into a maintenance/service
contract with a maintenance contractor, which shall provide for regularly scheduled servicing of all hot water, heating, ventilation
and air conditioning systems and equipment in the Premises. The maintenance contractor and the maintenance/service contract shall
be subject to the approval of Landlord, which approval shall not be unreasonably withheld. The maintenance/service contract shall
include, without limitation, all servicing suggested by the manufacturer, within the operations/maintenance manual pertaining
to such system and/or equipment, and shall be effective (and a copy thereof delivered to Landlord) no later than thirty (30) days
after the Commencement Date. Scope of frequency for such maintenance/service shall be approved by Landlord, at Landlord’s
sole discretion. Landlord shall be allowed to contract directly for such maintenance/service contract and Tenant shall be responsible
for such costs as an Operating Expense.

 

Article
8

 ALTERATIONS

 

8.1
Tenant shall not make any alterations, additions or improvements (collectively, “Alterations”) in or to
the Premises, including, but not limited to the Building exterior or interior, HVAC, and interior build-out, or make changes to
locks on doors or add, disturb or in any way change any plumbing or wiring without obtaining the prior written consent of Landlord,
which may be withheld, conditioned, or delayed in Landlord’s sole and absolute discretion.

 

8.2
All Alterations shall be made at Tenant’s sole expense. All work with respect to any Alterations shall be performed
in a good and workmanlike manner, shall be of a quality equal to or exceeding the then-existing construction standards for the
Premises and must be of a type, materials and finish (including floor coverings and ceilings) customary for general warehousing
use and the Premises. Alterations shall be diligently prosecuted to completion to the end that the Premises shall be at all times
a complete unit except during the period necessarily required for such work. All Alterations shall be made strictly in accordance
with all laws, regulations and ordinances relating thereto. Tenant shall secure all licenses and permits necessary for any Alterations
prior to the commencement of such work and shall give Landlord reasonable written notice prior to the commencement of any Alterations
and shall allow Landlord to enter the Premises and post appropriate notices to avoid liability to contractors or material suppliers
for payment for any Alterations.

 

8.3
All Alterations installed in or attached to the Premises by Tenant (except trade fixtures) shall, at the option of Landlord,
upon the expiration or earlier termination of the Lease, belong to and become the property of Landlord without any payment from
Landlord and if such option is exercised, shall be surrendered by Tenant in good order and condition as part of the Premises upon
the expiration or sooner termination of the Lease Term. At Landlord’s request, Tenant shall restore the Premises to the
condition it was in prior to Tenant’s occupancy, such restoration to be completed on or before the expiration of the Lease
Term, at Tenant’s expense. Tenant shall not use or penetrate the roof of the building on the Premises for any purpose whatsoever
without the prior written consent of Landlord, which consent may be withheld, conditioned, or delayed by Landlord, in Landlord’s
sole and absolute discretion. Landlord reserves the right to require Tenant to remove any or all of its trade fixtures and restore
the Premises to its original condition.

 

 8.4 Landlord shall have no obligation to pay any expenses or administrative fees relating to any Alterations.

 

    INDUSTRIAL LEASE - 7

     

    

 

8.5
Tenant shall pay all costs for the work done by or for Tenant on the Premises, and Tenant shall keep the Premises free and
clear of all liens of whatever kind or nature. Tenant shall indemnify, defend, save and hold Landlord harmless from and against
any and all liability, loss, damage, cost, attorneys’ fees and all other expenses on account of any prohibited lien.

 

8.6
Any additional or other upgrades, replacements or alternations to the Premises required as part of the Alterations (“Other
Alterations”) shall be performed by Tenant, at Tenant’s sole cost and expense, and in accordance with the provisions
of this Article 8.

 

Article
9 

UTILITIES

 

9.1
Tenant shall, at Tenant’s own expense, obtain all utility services supplying the Premises, including but not limited
to electricity, water, sewer, standby water for sprinkler, gas, telephone and all other utilities and other communication services,
in its own name, effective as of the commencement of the Lease, and shall pay the cost directly to the applicable utility, including
any fine, penalty, interest or cost that may be added thereto for non-payment thereof.

 

9.2
Tenant shall not install any equipment that can exceed the capacity of any utility facilities and if any equipment installed
by Tenant requires additional utility facilities, the same shall be installed at Tenant’s expense in compliance with all
code requirements and plans and specifications and must be approved in writing by Landlord.

 

9.3
Landlord shall not be liable to Tenant for any loss or damage caused by or resulting from any variation, interruption or failure
of said services unless caused by the negligent or wrongful act or omission of Landlord; and no temporary interruption or failure
of such services for any reason shall be deemed a breach or default of this Lease, an eviction of Tenant, or relieve Tenant from
any of Tenant’s obligations hereunder including Tenant’s obligation to pay Rent.

 

Article
10 

INSURANCE

 

10.1
Tenant’s Insurance Obligations. Tenant, at all times during the Lease Term and during any early occupancy period,
at Tenant’s sole cost and expense, will maintain the following insurance:

 

10.1.1
Liability Insurance. Tenant shall, at Tenant’s sole cost and expense, obtain and keep in force during the Lease
Term a policy of commercial general liability insurance, including blanket contractual liability insurance, covering
Tenant’s use of the Premises, with such coverages and limits of liability as Landlord may reasonably require, but not
less than a $1,000,000 combined single limit with a $2,000,000 general aggregate limit (which general aggregate limit may be
satisfied by an umbrella liability policy) for bodily injury or property damage; however, such limits shall not limit
Tenant’s liability hereunder. The policy shall name Landlord and any other associated or affiliated entity as their
interests may appear and at Landlord’s request, any mortgagee(s), as additional insureds, shall be written on an
“occurrence” basis and not on a “claims made” basis and shall be endorsed to provide that it is
primary to and not contributory to any policies carried by Landlord, as required by written contract, and to provide that it
shall not be cancelable or reduced without at least thirty (30) days prior notice to Landlord with ten (10) days’
notice for non-payment of premium. The insurer shall be authorized to issue such insurance, licensed to do business and
admitted in the state in which the Premises is located and rated at least “A” in the most current edition of
Best’s Insurance Reports. Tenant shall deliver to Landlord on or before the Commencement Date or any earlier date on
which Tenant accesses the Premises, and at least ten (10) days prior to the date of each policy renewal, a certificate of
insurance evidencing such coverage.

 

10.1.2
Property Insurance. Tenant shall obtain and maintain insurance coverage for on all of Tenant’s personal property,
trade fixtures, , inventory, goods, personal property (including also property under the care, custody or control of Tenant)
and business interests which may be located in, upon or about the Premises, at Tenant’s sole cost and expense, for the
benefit of Tenant against loss or damage by fire and such other risk or risks of a similar or dissimilar nature as are now,
or may in the future be, customarily covered with respect to a tenant’s machinery, equipment, furniture, fixtures,
inventory, goods, personal property and business located in a building similar in construction, general location, use,
occupancy and design to the Premises, including, but without limiting the generality of the foregoing, windstorms, hail,
explosions, vandalism, , malicious mischief, civil commotion and such other coverage as Tenant may deem appropriate or
necessary.

 

10.1.3
Worker’s Compensation. Tenant shall obtain and maintain during the Lease Term workers’ compensation
insurance as is required by the laws of the state in which the Premises is located.

 

10.1.4
Intentionally Deleted.

 

10.1.5
Additional Insurance. Any other form or forms of insurance as Landlord or Landlord’s mortgagees may reasonably require
from time-to-time, in form and amounts, and for insurance risks against which a prudent tenant of a comparable size and in a comparable
business would protect itself.

 

10.2
Landlord’s Insurance Obligations. Landlord will at all times during the Lease Term maintain the following insurance:

 

10.2.1
Property Insurance. Property insurance on the Premises in an amount not less than the full insurable replacement cost of the
Premises insuring against loss or damage by fire and other casualty. Landlord may maintain such insurance in whole or in part
under blanket policies. Such insurance will not cover or be applicable to any personal property or trade fixtures of Tenant within
the Premises or otherwise located on the Premises.

 

    INDUSTRIAL LEASE - 8

     

    

 

10.2.2
Payment of Premiums. The cost of the premiums for the insurance policies maintained by Landlord shall be paid by Tenant
as equal monthly payments as part of the Operating Cost. Premiums for policy periods commencing before, and ending after, the
Lease Term shall be prorated.

 

10.3
Tenant’s Failure to Insure. Notwithstanding any contrary language in this Lease and any notice and cure rights this
Lease provides Tenant, if Tenant fails to obtain and maintain the insurance required under this Lease, Landlord may, but is
not obligated to, after giving Tenant a three (3) business day cure right to so obtain same, obtain such insurance for
Landlord’s benefit. In such event, Tenant will pay to Landlord, all costs and expenses Landlord incurs obtaining such
insurance. Landlord’s exercise of its rights under this Section 10.3 does not relieve Tenant from any default under
this Lease.

 

10.4
No Limitation. Landlord’s establishment of minimum insurance requirements is not a representation by Landlord that
such limits are sufficient and does not limit Tenant’s liability under this Lease in any manner.

 

10.5
Waiver of Subrogation. To the extent that the parties may legally so agree, neither Landlord nor Tenant shall be liable
by way of subrogation or otherwise to the other party, or to any insurance company insuring the other party for any loss or
damage to any of the property of Landlord or Tenant, as the case may be, which loss or damage is covered by any insurance
policies carried by the parties and in force at the time of any such damage, even though such loss or damage might have been
occasioned by the negligence of Landlord or Tenant, and the party hereto sustaining such loss or damage so protected by
insurance waives its rights, if any, of recovery against the other party hereto to the extent and amount that such loss is
covered by such insurance. This release shall be in effect only so long as the applicable insurance policies do not contain a
clause or endorsement that causes the aforementioned waiver to reduce the right of the insured to recover under such
policies.

 

10.6
Indemnity. Tenant shall indemnify, defend and hold Landlord harmless from all Claims arising from (a) Tenant’s use
of the Premises during the Lease Term or the conduct of its business or any activity, work, or thing done, permitted or
suffered by Tenant in or about the Premises during the Lease Term, except to the extent (if any) such claim arises from the
negligence or intentional misconduct of Landlord, its agents, employees, guests or invitees, (b) any breach or default in the
performance of any obligation to be performed by Tenant under the terms of this Lease, (c) any act, neglect, fault or
omission of Tenant or of its agents or employees, guests or invitees during the Lease Term, and (d) all reasonable costs,
attorneys’ fees, expenses and liabilities incurred by Landlord relating to or resulting from such Claims or any action
or proceeding brought thereon, except to the extent arising from the act, omission or negligence of Landlord, its agents,
employees, guests or invitees.

 

Article
11

DEFAULT
AND REMEDIES

 

11.1
Event of Default. The occurrence of any of the following constitutes an “Event of Default” by Tenant under
this Lease:

 

 11.1.1 Failure to Pay Rent. Tenant fails to pay Rent as and when due.

 

11.1.2
Failure to Pay Other Amounts. Tenant fails to make any payment of any other sum or charge payable under this Lease, other
than Rent, or any part thereof when and as the same shall become due and payable and such default continues for a period of
ten (10) days after receipt by Tenant of notice from Landlord specifying the default.

 

11.1.3
Failure to Perform. Tenant breaches or fails to perform any of Tenant’s nonmonetary obligations under this Lease
and the breach or failure continues for a period of thirty (30) days after Landlord notifies Tenant of Tenant’s breach
or failure; provided that if Tenant cannot reasonably cure its breach or failure within a 30-day period, Tenant’s
breach or failure is not an Event of Default if Tenant commences to cure its breach or failure within the 30 day period and
thereafter diligently pursues the cure and effects the cure within a period of time that does not exceed ninety (90) days
after the expiration of the 30-day period. If Tenant has been given notice of the same or a substantially similar violation
or failure on two (2) or more other occasions within the twelve (12) month period preceding the most recent violation or
failure, regardless whether such earlier violations or failures were cured within the allowed cure period, then the current
violation shall be an Event of Default without any further notice or cure period being afforded.

 

11.1.4
Guaranty Default. Guarantor’s default under any guaranty now or after the Effective Date securing all or any part
of Tenant’s obligations under this Lease.

 

11.1.5
Other Defaults. Tenant makes a general assignment or general arrangement for the benefit of creditors; (b) a petition for
adjudication of bankruptcy or for reorganization or rearrangement is filed by Tenant; (c) a petition for adjudication of
bankruptcy or for reorganization or rearrangement is filed against Tenant and is not dismissed within sixty (60) days; (d) a
trustee or receiver is appointed to take possession of substantially all of Tenant’s assets located at the Premises or
of Tenant’s interest in this Lease and possession is not restored to Tenant within thirty (30) days; or (e)
substantially all of Tenant’s assets, substantially all of Tenant’s assets located at the Premises or
Tenant’s interest in this Lease is subjected to attachment, execution or other judicial seizure not discharged within
thirty (30) days. If a court of competent jurisdiction determines that any act described in this Section 11.1.5 does
not constitute an Event of Default, and the court appoints a trustee to take possession of the Premises (or if Tenant remains
a debtor in possession of the Premises) and such trustee or Tenant Transfers Tenant’s interest hereunder, then Landlord
is entitled to receive, as Additional Rent, the amount by which the Rent (or any other consideration) paid in connection with
the Transfer exceeds the Rent otherwise payable by Tenant under this Lease.

 

    INDUSTRIAL LEASE - 9

     

    

 

11.2
Remedies. In the event of any Event of Default, Landlord may, at its option, exercise any and all of the remedies listed
below. No such remedy herein or otherwise conferred upon or reserved to Landlord shall be considered exclusive of any other
remedy (except where inconsistent), but the same shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity, and every power and remedy given by the Lease to Landlord may be
exercised from time to time and as often as the occasion may rise or may be deemed expedient

 

11.2.1 Landlord
may, without terminating this Lease, enter upon the Premises, without being liable for prosecution or any claim for damages
therefor, and do whatever Tenant is obligated to do under the terms of this Lease, in which event Tenant shall reimburse
Landlord on demand for any expenses which Landlord may incur in complying with Tenant’s obligation under this Lease and
Landlord shall not be liable for any damages resulting to Tenant from such action, unless caused by the negligence or
intentional misconduct of Landlord.

 

11.2.2 Landlord
may, if it elects to do so, bring suit for the collection of rents and/or any damages resulting from Tenant’s default
without entering into possession of the Premises or terminating this Lease.

 

11.2.3 Terminate
Tenant’s right to possess the Premises by any lawful means with or without terminating this Lease, in which event
Tenant will immediately surrender possession of the Premises to Landlord. Unless Landlord specifically states that it is
terminating this Lease, Landlord’s termination of Tenant’s right to possess the Premises is not to be construed
as an election by Landlord to terminate this Lease or Tenant’s obligations and liabilities under this Lease. In such
event, this Lease continues in full force and effect (except for Tenant’s right to possess the Premises) and Tenant
continues to be obligated for and must pay all Rent as and when due under this Lease. If Landlord terminates Tenant’s
right to possess the Premises, Landlord is not obligated to but may re- enter the Premises and remove all persons and
property from the Premises. Landlord may store any property Landlord removes from the Premises in a public warehouse or
elsewhere at the cost and for the account of Tenant. Upon such re-entry, Landlord is not obligated to but may relet all or
any part of the Premises to a third party or parties for Tenant’s account. Tenant is immediately liable to Landlord for
all Re-entry Costs and must pay Landlord the same within five (5) days after Landlord’s notice to Tenant. Landlord may
relet the Premises for a period shorter or longer than the remaining Term. If Landlord relets all or any part of the
Premises, Tenant will continue to pay Rent when due under this Lease and Landlord will refund to Tenant the Net Rent Landlord
actually receives from the reletting up to a maximum amount equal to the Rent Tenant paid that came due after
Landlord’s reletting. If the Net Rent Landlord actually receives from reletting exceeds such Rent, Landlord will apply
the excess sum to future Rent due under this Lease. Landlord may retain any surplus Net Rent remaining at the expiration of
the Term.

 

For
purposes of this Section 11.2:

 

		●	“Re-entry
                                         Costs” means all reasonable costs and expenses Landlord incurs re-entering
                                         or reletting all or any part of the Premises, including, without limitation, all costs
                                         and expenses Landlord incurs (a) maintaining or preserving the Premises after an Event
                                         of Default; (b) recovering possession of the Premises, removing persons and property
                                         from the Premises (including, without limitation, court costs and reasonable attorneys’
                                         fees) and storing such property; (c) reletting, renovating, restoring or altering the
                                         Premises; and (d) real estate commissions, advertising expenses, legal fees and similar
                                         expenses paid or payable in connection with reletting all or any part of the Premises.
                                         “Re-entry Costs” also includes the value of free rent and other concessions
                                         Landlord gives in connection with re-entering or reletting all or any part of the Premises.

 

		●	“Net
                                         Rent” means all rental Landlord actually receives from any reletting of all
                                         or any part of the Premises, less any indebtedness from Tenant to Landlord other than
                                         Rent (which indebtedness is paid first to Landlord) and less the Re- entry Costs (which
                                         costs are paid second to Landlord)

 

11.2.4 Landlord
may terminate this Lease after three (3) days’ written notice to Tenant and this Lease shall terminate on the date
specified in such notice. Tenant shall quit and surrender the Premises by said date, failing which, Landlord may enter upon
the Premises immediately or at any subsequent time without additional notice or demand (which additional notice or demand is
hereby expressly waived by Tenant) without being liable for prosecution of any claim for damages therefor, and expel Tenant
and those claiming under Tenant and remove their effects without being guilty of any manner of trespass. Tenant agrees that
if Landlord shall cause Tenant’s goods or effects to be removed from the Premises pursuant to the terms hereof or of
any court order, Landlord’s act of so removing such goods or effects shall be deemed to be the act of and for the
account of Tenant. If this Lease is so terminated, Tenant shall be liable for and shall pay to Landlord the sum of all rental
and other indebtedness accrued to date of such termination, plus, as damages, an amount equal to the present value of (1) the
Base Rent for the remaining portion of the Term (had the Term not been terminated prior to the date of expiration stated in
the Basic Lease Terms); plus (2) the unamortized balance of any reasonable rent abatements, brokers’ fees and
commissions, attorneys’ fees and costs, and reimbursements, construction allowances and other costs incurred by
Landlord to improve the Premises under this Lease, discounted at a per annum rate equal to the discounted rate of the Federal
Reserve Bank of San Francisco plus one percentage point; less (3) any rent actually received by Landlord in leasing the
Premises at reasonable market rates. It is agreed by the parties that the actual damages which might be sustained by Landlord
by reason of Tenant’s default hereunder are uncertain and difficult to ascertain, and that the foregoing measure of
damages is fair and reasonable.

 

    INDUSTRIAL LEASE - 10

     

    

 

11.2.5 Tenant
will reimburse and compensate Landlord on demand and as Additional Rent for any actual loss Landlord incurs in connection
with, resulting from or related to an Event of Default, regardless whether suit is commenced or judgment is entered. Such
loss includes all reasonable legal fees, costs and expenses (including paralegal fees and other professional fees and
expenses) Landlord incurs investigating, negotiating, restoring, settling or enforcing any of Landlord’s rights or
remedies or otherwise protecting Landlord’s interests under this Lease. In addition to the foregoing, Landlord is
entitled to reimbursement of all of Landlord’s reasonable fees, expenses and damages, including, but not limited to,
reasonable attorneys’ fees and paralegal and other professional fees and expenses, Landlord incurs in connection with
protecting its interests in any bankruptcy or insolvency proceeding involving Tenant, including, without limitation, any
proceeding under any chapter of the Bankruptcy Code; by exercising and advocating rights under Section 365 of the Bankruptcy
Code; by proposing a plan of reorganization and objecting to competing plans; and by filing motions for relief from stay.
Such fees and expenses are payable on demand, or, in any event, upon assumption or rejection of this Lease in
bankruptcy.

 

11.2.6 Tenant
waives and releases all Claims Tenant may have resulting from Landlord’s re-entry and taking possession of the Premises
by any lawful means and removing and storing Tenant’s property as permitted under this Lease, regardless whether this
Lease is terminated, and, to the fullest extent allowable under applicable laws, Tenant releases and will indemnify, defend
(with counsel reasonably acceptable to Landlord), protect and hold harmless the Landlord from and against any and all Claims
occasioned by Landlord’s lawful re-entry of the Premises and disposition of Tenant’s property. No such reentry is
to be considered or construed as a forcible entry by Landlord. Landlord will not be liable to hold or store Tenant’s
property for more than thirty (30) days.

 

11.3
No Waiver. Except as specifically set forth in this Lease, no failure by Landlord or Tenant to insist upon the other
party’s performance of any of the terms of this Lease or to exercise any right or remedy upon a breach thereof,
constitutes a waiver of any such breach or of any breach or default by the other party in its performance of its obligations
under this Lease. Except as specifically set forth in this Lease, none of the terms of this Lease to be kept, observed or
performed by a party to this Lease, and no breach thereof, are waived, altered or modified except by a written instrument
executed by the other party. One or more waivers by a party to this Lease is not to be construed as a waiver of a subsequent
breach of the same covenant, term or condition.

 

Article
12

DAMAGE
AND DESTRUCTION

 

12.1
Notice of Casualty. If the Building shall be damaged or destroyed by any peril, including but not limited to, fire, wind
storm or other casualty (each such occurrence, a “Casualty”), at any time, whether covered by insurance to
be provided under this Lease, or not, Tenant shall give prompt notice thereof to Landlord and this Lease shall continue in
full force and effect.

 

12.2
Tenantable Within 270 Days. Except as provided in Section 12.3, if fire or other casualty
renders the whole or any material part of the Building untenantable and Landlord determines (in Landlord’s reasonable
discretion) that it can make the Building tenantable within 270 days after the date of the casualty, then Landlord will
notify Tenant that Landlord will within the 270 day period to repair and restore the Building to as near their condition
prior to the casualty as is reasonably possible. Landlord will provide the notice within forty-five (45) days after the date
of the casualty. In such case, this Lease remains in full force and effect, Rent for the period during which the Building is
untenantable shall abate pro rata (based upon the untenantable portion of the Building as compared with the entirety of the
Building).

 

12.3
Not Tenantable Within 270 Days. If fire or other casualty renders the whole or any material part of the Building
untenantable and Landlord determines (in Landlord’s reasonable discretion) that it cannot make the improvements on the
Premises tenantable within 270 days after the date of the casualty, then Landlord will so notify Tenant within forty-five
(45) days after the date of the casualty and may, in such notice, terminate this Lease effective on the date of
Landlord’s notice. If Landlord does not terminate this Lease as provided in this section, Tenant may terminate this
Lease by notifying Landlord within thirty (30) days after the date of Landlord’s notice, which termination will be
effective thirty (30) days after the date of Tenant’s notice.

 

12.4
Termination. In the event that all or a substantial part of the Building is rendered unusable in the last one (1) year of
the Lease Term, or if the restoration of the Building to its prior use and character is reasonably estimated to take more
than 270 days, then Tenant may elect to terminate this Lease, by a notice to Landlord given not later than 30 (thirty) days
following such Casualty. If Tenant makes such election, the term shall expire on the sixtieth (60th) day after notice of such
election and Tenant shall vacate the Premises and surrender the same to Landlord.

 

12.5
Insufficient Proceeds. If this Article 12 obligates Landlord to repair damage to the
improvements on the Premises caused by fire or other casualty and Landlord does not receive sufficient insurance proceeds
(excluding any deficiency caused by the amount of any policy deductible) to repair all of the damage, or if Landlord’s
lender does not allow Landlord to use sufficient proceeds to repair all of the damage, then Landlord, at Landlord’s
option, by notifying Tenant within sixty (60) days after the casualty, may terminate this Lease effective on the date of
Landlord’s notice.

 

12.6
Landlord’s Repair Obligations. If this Lease is not terminated under Sections 12.2 through 12.4 following a fire or
other casualty, then Landlord will repair and restore the Building to as near their condition prior to the fire or other
casualty as is reasonably possible with all commercially reasonable diligence and speed and Rent for the period during which
the improvements on the Premises are untenantable will abate pro rata (based upon the untenantable portion of the
improvements on the Premises as compared with the entirety of the improvements on the Premises). In no event is Landlord
obligated to repair or restore any special equipment or improvements installed by Tenant, or any personal or other property
of Tenant.

 

    INDUSTRIAL LEASE - 11

     

    

 

Article
13

EMINENT
DOMAIN

 

13.1
Termination of Lease. Should title or possession of all of the Premises be taken in condemnation proceedings by a
government agency, governmental body or private party (“Condemning Authority”) under the exercise of the
right of eminent domain (“Taking”), Landlord will notify Tenant and Landlord and Tenant will reasonably
determine whether the Taking will render the Premises unsuitable for Tenant’s intended purposes. If Landlord and Tenant
conclude that the Taking will render the Premises unsuitable for Tenant’s intended purposes, Landlord and Tenant will
document such determination and this Lease will terminate upon such date Condemning Authority takes title or possession of
the Premises. Tenant will pay Rent to the date of termination.

 

13.2
Landlord’s Repair Obligations. If this Lease does not terminate with respect to the entire Premises under Section 13.1 and
the Taking includes a portion of the improvements on the Premises, this Lease automatically terminates as to the portion of
the Premises taken upon such vesting of title or taking of possession and Landlord will, at its sole cost and expense,
restore the remaining portion of the improvements, except any specialized improvements for fixtures installed for
Tenant’s use of the Premises, on the Premises to a complete architectural unit with all commercially reasonable
diligence and speed and will reduce the Base Rent for the period after the date the Condemning Authority takes possession of
the portion of the Premises taken to a sum equal to the product of the Base Rent provided for in this Lease multiplied by a
fraction, the numerator of which is the square footage of the Premises after the Taking and after Landlord restores the
Premises to a complete architectural unit, and the denominator of which is the square footage of the Premises prior to the
Taking. Tenant’s obligation to pay Rent will abate on a proportionate basis with respect to that portion of the
Premises remaining after the Taking that Tenant is unable to use during Landlord’s restoration for the period of time
that Tenant is unable to use such portion of the Premises.

 

13.3
Tenant’s Participation. Landlord is entitled to receive and keep all damages, awards or payments resulting from or paid
on account of a Taking. Accordingly, Tenant waives and assigns to Landlord any interest of Tenant in any such damages, awards
or payments. Tenant may prove in any condemnation proceedings and may receive any separate award for damages to or condemnation
of Tenant’s movable trade fixtures and equipment and for moving expenses; provided however, that Tenant has no right to
receive any award for its interest in this Lease or for loss of leasehold.

 

Article
14

CREDITORS;
ESTOPPEL CERTIFICATES

 

14.1
Subordination. This Lease, all rights of Tenant in this Lease, and all interest or estate of Tenant in the Premises, is
subject and subordinate to the lien of any to any deed of trust or mortgage encumbering all or any portion of the Premises,
any advances made on the security thereof and any renewals, modifications, consolidations, replacements or extensions
thereof, whenever made or recorded (each a “Mortgage”). Tenant, on Landlord’s demand, will execute
and deliver to Landlord or to any other person Landlord designates any commercially reasonable instruments, releases or other
documents reasonably required to confirm the self- effectuating subordination of this Lease as provided in this Section 14.1 to
the lien of any Mortgage. Tenant shall execute and deliver promptly any certificate or instrument, including, but not limited
to, a tenant estoppel and assignment of lease and rents, in recordable form, that Landlord may request in confirmation of
such subordination. The lien of any existing or future Mortgage will not cover Tenant’s moveable trade fixtures or
other personal property of Tenant located in or on the Premises.

 

14.2
Nondisturbance. So long as no default exists under this Lease which at such time would then permit Landlord to terminate
this Lease or to exercise any dispossess remedy provided for therein, (a) Tenant will not be made a party in any action or
proceeding to foreclose the Mortgage or to remove or evict Landlord from the Premises; (b) Tenant will not be evicted or
removed from the Premises nor will Tenant’s rights under the Lease be disturbed or Tenant’s possession or right
to possession of the Premises be terminated or disturbed; and (c) the Mortgagee, upon succeeding to Landlord’s interest
in the Premises, but limited to the time such Mortgagee holds Landlord’s interest in the Premises, will recognize this
Lease for the full term hereof (including any and all extensions or renewals).

 

14.3
Attornment. If any ground lessor, holder of any Mortgage at a foreclosure sale or any other transferee acquires
Landlord’s interest in this Lease or the Premises, Tenant will attorn to the transferee of or successor to
Landlord’s interest in this Lease or the Premises (as the case may be) and recognize such transferee or successor as
landlord under this Lease. In no event shall any such transferee of or successor to Landlord’s interest in this Lease
or the Premises be bound by (i) any payment of rent or additional rent for more than one (1) month in advance, or (ii) any
security deposit or the like not actually received by such successor, or (iii) any amendment or modification in this Lease
made without the consent of the applicable holder of any Mortgage, or (iv) any construction obligation, free rent, or other
concession or monetary allowance, or (v) any set-off, counterclaim, or the like otherwise available against any prior
landlord (including Landlord), or (vi) any act or omission of any prior landlord (including Landlord).

 

14.4
Estoppel Certificate. Upon Landlord’s written request, Tenant will execute, acknowledge and deliver to Landlord a
written statement in form satisfactory to Landlord certifying: (a) that this Lease is unmodified and in full force and effect
(or, if there have been any modifications, that the Lease is in full force and effect, as modified, and stating the
modifications); (b) that this Lease has not been canceled or terminated; (c) the last date of payment of Rent and the time
period covered by such payment; (d) whether there are then existing any breaches or defaults by Landlord under this Lease
known to Tenant, and, if so, specifying the same; (e) specifying any existing claims or defenses in favor of Tenant against
the enforcement of this Lease; and (f) such other factual statements as Landlord, any lender, prospective lender, investor or
purchaser may reasonably request. Tenant will deliver the statement to Landlord within ten (10) business days after
Landlord’s request. Landlord may give any such statement by Tenant to any lender, prospective lender, investor or
purchaser of all or any part of the Premises and any such party may conclusively rely upon such statement as true and
correct.

 

    INDUSTRIAL LEASE - 12

     

    

 

Article
15

ASSIGNMENT
AND SUBLEASING

 

15.1
Relationship of Parties. Nothing contained in this Lease may be construed as creating the relationship of principal and
agent, debtor and creditor, partnership, or joint venture. Neither the method of computation of Rent nor any other provision
of this Lease, nor any act of the parties, will create any relationship other than that of landlord and tenant.

 

 15.2 Successors and Assigns. This Lease shall benefit and bind the successors and assigns of Landlord and Tenant.

 

15.3
Assignment and Subletting.

 

15.3.1
Consent Required. Without Landlord’ express written consent, which consent shall not be unreasonably withheld or
delayed, Tenant shall not directly or indirectly, voluntarily or by operation of law, sell, assign, encumber, pledge, or
otherwise transfer or hypothecate any of its interest in or rights with respect to the Premises, including a transfer of a
controlling ownership interest in Tenant or of all or substantially all of Tenant’s assets (collectively,
“Assignment”), or permit any portion of the Premises to be occupied by anyone other than Tenant or sublet
all or any portion of the Premises or transfer a portion of its interest in or rights with respect to the Premises
(collectively, “Sublease”). Without limiting Landlord’s right to withhold consent for any other
reason deemed “reasonable”, Landlord will have reasonable basis to withhold its consent if Tenant tenders for
Landlord’s approval an Assignment or Sublease of the Premises or any part of the Premises to a proposed
assignee/subtenant who proposes to pay a base rent lower than the Base Rent payable under this Lease, who has been in
negotiations with Landlord for other space owned by Landlord, who has been in litigation with Landlord within the past five
years, whose use is unknown, whose financial condition indicates that it may not be able to perform its leasehold obligations
or who, in the context of an assignment, does not assume the obligations of Tenant, who is of poor reputation in the local
business community, who is a user of hazardous materials, or who has been convicted of any crime of moral turpitude or
involving securities or tax law violations. Tenant will pay to Landlord 100% of all profit (other than profit from the sale
of the business and other than as may be set forth below) derived by Tenant from such Assignment or Sublease.

 

15.3.2
Continuing Liability; Default; Waiver. Tenant shall not be relieved of any obligation to be performed by the tenant under
this Lease, including the obligation to obtain Landlord’s consent to any other Assignment or Sublease, regardless of
whether Landlord consented to any Assignment or Sublease. Any Assignment or Sublease that fails to comply with this Section 15.3 is
void and of no force or effect and, at Landlord’s option, will constitute an Event of Default by Tenant under this
Lease.

 

15.3.3
Assumption by Transferee. Each transferee under an Assignment shall assume all obligations of Tenant under this Lease and
shall be and remain jointly and severally liable with Tenant for the payment of Rent and other charges, and for the
performance of all other provisions of this Lease. Each Transferee under a Sublease shall be subject to this
Lease.

 

15.4
Landlord’s Transfer. Landlord may sell, assign, or otherwise transfer all or any part of its interest in the
Premises without the consent of Tenant. If Landlord should sell or transfer Landlord’s interest in the Premises, other
than a transfer for security purposes only, then effective with the date of the sale or transfer, Landlord shall be
automatically released and discharged from any further obligations and responsibilities under this Lease (except those
already accrued).

 

Article
16

QUIET
ENJOYMENT

 

Landlord
covenants to control its activities and personnel such that if and so long as Tenant pays Rent as and when due and keeps, observes
and fully satisfies all other covenants, obligations and agreements of Tenant under this Lease, Tenant shall hold and enjoy the
Premises peaceably and quietly, subject to the provisions of this Lease.

 

Article
17

TERMINATION
OF LEASE

 

17.1
Condition. Upon the expiration or earlier termination of this Lease, Tenant shall quit and surrender possession of the
Premises to Landlord. Tenant shall leave the Premises in as good repair and condition including but not limited to damage to
walls repaired/patched, Premises cleaned, windows washed, debris removed from Premises, as the Premises are in on the
Commencement Date of this Lease, reasonable wear and tear, casualty and repairs that are Landlord’s obligation,
excepted. Tenant shall, without expense to Landlord, remove or cause to be removed from the Premises all furniture,
equipment, business and trade fixtures, free- standing cabinetwork, movable partitions and other articles of personal
property owned by Tenant and all similar items of any other persons claiming under Tenant. Tenant shall, before expiration of
termination, repair all damage to the Premises resulting from such removal and otherwise restore the Premises.
Notwithstanding the foregoing, Tenant shall be obligated to remove any buildings, sheds, barns, canopies or similar fixtures
owned by Tenant upon the Premises.

 

    INDUSTRIAL LEASE - 13

     

    

 

17.2
Holding Over. If Tenant possesses the Premises after the Lease Term expires or is otherwise terminated without executing
a new lease, Tenant is deemed to be occupying the Premises without claim of right (but subject to all terms and conditions of
this Lease) on a month to month basis and, in addition to Tenant’s liability for failing to surrender possession of the
Premises as provided in Section 17.1, Tenant will pay Landlord a charge for each day of occupancy
after expiration of the Term in an amount equal to one hundred fifty percent (150%) of Tenant’s then-existing Basic
Rent (on a daily basis) plus one hundred percent (100%) of all Additional Rent in effect during the last month of the Lease
Term (subject to increases thereafter as determined by Landlord in accordance with the provisions of this Lease).

 

17.3
Indemnity. If Tenant does not surrender the Premises upon the expiration or earlier termination of this Lease, or in the
condition required in this Lease, Tenant releases and will indemnify, defend (with counsel reasonably acceptable to Landlord)
protect and hold harmless Landlord from and against any Claim resulting from Tenant failure to comply with this Article,
including, without limitation, any Claim made by any succeeding occupant.

 

17.4
Abandoned Property. Any property of Tenant not removed or in the process of being removed by Tenant within seventy-two
(72) hours of vacating the Premises shall be considered abandoned and Landlord may without liability reuse or remove and
dispose of any or all of such items in any manner. Tenant appoints Landlord as Tenant’s agent to remove, at
Tenant’s sole cost and expense, all of Tenant’s property from the Premises upon termination of this Lease and to
cause its transportation and storage for Tenant’s benefit, all at the sole cost and risk of Tenant, and Landlord will
not be liable for damage, theft, misappropriation or loss thereof or in any manner in respect thereto.

 

Article
18

DAMAGE
TO TENANT’S PROPERTY

 

Except
in cases of Landlord’s gross negligence or willful act or violation of its obligations hereunder, notwithstanding anything
to the contrary in this Lease, neither Landlord nor its agents shall be liable for (a) any loss or damage to any property by theft
or otherwise, (b) any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity,
water or rain that may leak from any part of the Building or from the pipes, appliances or plumbing work therein or from the roof,
street or sub surface or from any other place or resulting from dampness or any other cause whatsoever, or (c) any damage or loss
to the business or occupation of Tenant. Tenant shall give prompt notice to Landlord in case of fire or accident in the Premises
or in the Building or of defects therein or in the fixtures or equipment.

 

Article
19

RULES
AND REGULATIONS

 

Tenant
agrees to observe and be bound by the rules and regulations applicable to the Premises which may be promulgated by Landlord. Landlord
reserves the right to amend said Rules and Regulations as Landlord, in its reasonable judgment, may from time to time deem to
be necessary or desirable for the safety, care and cleanliness of the Premises or the Building and the preservation of good order
therein, and Tenant agrees to comply therewith. In no event shall Landlord be liable to Tenant or any party acting by or through
Tenant for the failure of other tenants to comply with the rules and regulations. To the extent the rules and regulations conflict
with this Lease, this Lease shall control.

 

Article
20

MISCELLANEOUS

 

20.1
Notices. All notices and other communications must be in writing and may be delivered (a) in person, with the date of
notice being the date of personal delivery; (b) by United States Mail, postage prepaid for certified or registered mail,
return receipt requested, with the date of notice being the date of the postmark on the return receipt; (c) by e-mail, with
oral or written confirmation and the date of the notice being the date of the e-mail if sent during normal business hours of
the recipient, and on the next business day if sent after normal business hours of the recipient; or (d) by nationally
recognized delivery service such as Federal Express, with the date of notice being the date of delivery as shown on the
confirmation provided by the delivery service. Notices must be addressed to the parties at the addresses set forth in Basic
Lease Information or to the most recent address provided by each party to the other party in accordance with this Section 20.1. Payments
to be made under this Lease will be received only upon actual receipt by the payee.

 

20.2
Successors. The covenants and agreements contained in this Lease bind and inure to the benefit of Landlord, its
successors and assigns, bind Tenant and its successors and assigns and inure to the benefit of Tenant and its permitted
successors and assigns.

 

20.3
Transfer of Landlord’s Interest. In the event of any transfer or transfers of Landlord’s interest in the
Property or the Building, other than a transfer for security purposes only, Tenant agrees that Landlord shall be
automatically relieved of any and all obligations and liabilities on the part of Landlord accruing from and after the date of
such transfer, and Tenant agrees to attorn to the transferee.

 

20.4
Entire Agreement; Amendment. The Basic Lease Information and all exhibits, addenda and schedules attached to this Lease
are incorporated into this Lease as though fully set forth in this Lease and together with this Lease contain the entire
agreement between the parties with respect to the improvement and leasing of the Premises. All prior and contemporaneous
negotiations regarding the lease of the Premises, including, without limitation, any letters of intent or other proposals and
any drafts and related correspondence, are merged into and superseded by this Lease. No subsequent alteration, amendment,
change or addition to this Lease (other than to the building rules) is binding on Landlord or Tenant unless it is in writing
and signed by the party to be charged with performance.

 

    INDUSTRIAL LEASE - 14

     

    

 

20.5
Severability. If any covenant, condition, provision, term or agreement of this Lease is, to any extent, held invalid or
unenforceable, the remaining portion thereof and all other covenants, conditions, provisions, terms and agreements of this
Lease, will not be affected by such holding, and will remain valid and in force to the fullest extent permitted by
law.

 

20.6
Attorneys’ Fees. If either Landlord or Tenant commences any litigation or judicial action to determine or enforce
any of the provisions of this Lease, the prevailing party in any such litigation or judicial action is entitled to recover
all of its costs and expenses (including, but not limited to, reasonable attorneys’ fees, costs and expenditures) from
the nonprevailing party.

 

20.7
Brokers. Landlord and Tenant each represents and warrants to the other that it has not had any dealings with any
realtors, brokers, finders or agents in connection with this Lease, and release and will indemnify, defend and hold the other
harmless from and against any claim based on the failure or alleged failure to pay any realtors, brokers, finders or agents
from any cost, expense or liability for any compensation, commission or changes claimed by any realtors, brokers, finders or
agents claiming by, through or on behalf of it with respect to this Lease or the negotiation of this Lease.

 

20.8
Intentionally Omitted.

 

 20.9 Governing Law. This Lease is governed by, and must be interpreted under, the internal laws of the State of Idaho.

 

20.10
Time is of the Essence. Time is of the essence with respect to the performance of every provision of this Lease in which
time of performance is a factor.

 

20.11
Relationship of Parties. This Lease does not create the relationship of principal and agent, or of partnership, joint
venture, or of any association or relationship between Landlord and Tenant other than that of landlord and tenant.

 

20.12
Construction of Lease and Terms. The terms and provisions of this Lease represent the results of negotiations between
Landlord and Tenant, each of which are sophisticated parties and each of which has been represented or been given the
opportunity to be represented by counsel of its own choosing, and neither of which has acted under any duress or compulsion,
whether legal, economic or otherwise. Consequently, the terms and provisions of this Lease must be interpreted and construed
in accordance with their usual and customary meanings, and Landlord and Tenant each waive the application of any rule of law
that ambiguous or conflicting terms or provisions contained in this Lease are to be interpreted or construed against the
party who prepared the executed Lease or any earlier draft of the same. Landlord’s submission of this instrument to
Tenant for examination or signature by Tenant does not constitute a reservation of or an option to lease and is not effective
as a lease or otherwise until Landlord and Tenant both execute and deliver this Lease. The parties agree that, regardless of
which party provided the initial form of this Lease, drafted or modified one or more provisions of this Lease, or compiled,
printed or copied this Lease, this Lease is to be construed solely as an offer from Tenant to lease the Premises, executed by
Tenant and provided to Landlord for acceptance on the terms set forth in this Lease, which acceptance and the existence of a
binding agreement between Tenant and Landlord may then be evidenced only by Landlord’s execution of this
Lease.

 

20.13
Counterparts. This Lease may be executed in any number of counterparts, all such counterparts shall be deemed to
constitute one and the same instrument, and each of said counterparts shall be deemed an original hereof.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Lease to be duly executed as of the Effective Date.

 

    INDUSTRIAL LEASE - 15

     

    

 

	 	LANDLORD:
	 	 
	 	/s/ Stephen Mallatt, Jr.
	 	Stephen Mallatt, Jr.
	 	 
	 	/s/ Rita Mallatt
	 	Rita Mallatt
	 	 
	 	TENANT:
	 	 
	 	KYLE’S CUSTOM
WOOD SHOP, INC.
	 	 
	 	By:	/s/ Stephen Mallatt, Jr.
	 	Name:	Stephen Mallatt, Jr.
	 	Title:	President

 

    INDUSTRIAL LEASE - 16

     

    

 

EXHIBIT
A

 

LEGAL
DESCRIPTION AND DEPICTION OF PREMISES

 

Lot 6 in
Block 5 of West Boise Industrial Park No. 6, according to the official plat thereof, filed in Book 69 of Plats at Page(s) 7078
through 7080, official records of Ada County, Idaho.

 

 

    EXHIBIT A - INDUSTRIAL LEASE

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